[Front Cover]
OCTOBER 31, 1999
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Chase Vista
International
Equity Funds
EUROPEAN FUND ANNUAL REPORT
SOUTHEAST ASIAN FUND
JAPAN FUND
LATIN AMERICAN
EQUITY FUND
INTERNATIONAL
EQUITY FUND
[CHASE VISTA FUNDS Logo]
ANIE-2-1299
<PAGE>
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Contents
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Chairman's Letter 1
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Chase Vista European Fund 2
Fund Commentary
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Chase Vista Southeast Asian Fund 6
Fund Commentary
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Chase Vista Japan Fund 10
Fund Commentary
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Chase Vista Latin American Equity Fund 14
Fund Commentary
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Chase Vista International Equity Fund 18
Fund Commentary
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Portfolios of Investments 22
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Fund Financial Statements 33
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International Equity Portfolio 60
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Portfolio of Financial Statements 65
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Highlights
o Equity markets around the world provided double-digit returns for U.S.
investors during the reporting year.
o Japan returned to a growth track and, partially due to a strengthening yen,
provided the best dollar-based returns in the developed world.
o Europe saw significant restructuring activity within nations and, more
importantly, nascent signs of cross-border mergers and acquisitions. The
Euro was successfully introduced, although it fell in value versus the
dollar and the yen.
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NOT FDIC INSURED | May lose value / No bank guarantee
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Chase Vista Funds are distributed by Vista Fund Distributors, Inc.
<PAGE>
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CHASE VISTA INTERNATIONAL EQUITY FUNDS
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Chairman's Letter
December 1, 1999
Dear Shareholder:
We are pleased to present this annual report for the Chase Vista International
Equity Funds for the year ended October 31, 1999.
Global Recovery Evident in Stock Markets
While the domestic economy and markets continued to give American investors
strong performance, the difference in this reporting year as opposed to the
past few is the solid returns available in all major markets.
After years of underperformance, the Japanese equity market (as measured by the
MSCI Japan index) had a total return of 58.66% in dollar terms as signs of a
turnaround lured back foreign investors and gave the market a positive tone.
While Japanese returns in dollar terms were enhanced by the strong yen, the
opposite was true in Europe as the MSCI Europe index had a total return of
12.63%. Although the Euro fell from $1.18 from its introduction on January 1,
1999 to $1.05 at the end of the reporting period, the good news is that the
introduction was a technical success and that the European Central Bank gained
a great deal of respect for its independence and decisiveness.
Reflecting the continued recovery from the economic crisis, Southeast Asian
returns were also quite positive during the reporting year, with the MSCI Asia
(ex-Japan) index providing a total return of 39.83%. However, much of the
strong performance was achieved in the first half as markets got a bit ahead of
themselves. In Latin America, too, the 21.15% total return of the MSCI Latin
American index masked difficulties in the second half of the reporting year as
Brazil continued to struggle with fiscal issues and global and emerging market
investors tended to prefer other regions.
U.S. Economy and Markets Essential to Global Performance
While international investing continues to offer diversification as well as the
opportunity to take advantage of strong growth opportunities overseas, it must
be noted that foreign markets were sensitive during the reporting year to news
from the U.S., specifically on the inflation and interest rate front. By
providing a high growth, low inflation environment and a strong stock market,
the U.S. economy did its job well.
In this increasingly-interconnected world, we encourage you to continue to
prudently invest in overseas markets. As a global leader in financial services,
we at Chase are pleased to help you successfully do this in pursuit of your
long-term financial goals.
Sincerely yours,
/s/ Fergus Reid
- ---------------
Fergus Reid
Chairman
1
<PAGE>
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CHASE VISTA EUROPEAN FUND
As of October 31, 1999 (Unaudited)
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Fund Manager Q&A With Michael Browne
Michael, the Fund had a total return of 15.60% (Class A Shares, without sales
charge) for the year ended October 31, 1999 while the average European fund
tracked by Lipper, Lipper European Funds Average returned 10.72%. How do you
explain your strong relative performance?
We continue to believe that the best opportunities in Europe are available in
those companies which are restructuring their operations to efficiently compete
both within Europe and around the world. During the reporting year, we were
positioned to take advantage of this restructuring, and we benefited from the
high level of merger and acquisition activity. We also gained on a relative
basis from our holdings in sectors which provide a combination of growth and
restructuring, such as technology and mobile telephony. Finally, we did a good
job of recognizing shifts in market sentiment, benefiting from a move in
cyclicals in the second quarter of 1999 and then rightly taking more of a large
cap orientation in the last four months of the period.
The performance of the Euro proved detrimental to the Fund's absolute
performance. Were you disappointed with the new currency?
While I would have liked for the currency to have performed better relative to
the dollar (it fell from $1.18 on January 1, 1999 to $1.05 on October 31,
1999), I still believe the introduction was a success. On a technical basis, 11
countries in Europe converted to a single currency without any major hitches.
And most importantly, the new European Central Bank acted independently and
decisively on interest rates. It cut them by a higher-than-expected .50% early
in the reporting period to stimulate growth and raised them by a
higher-than-expected .50% shortly after the period ended as a preemptive strike
against inflation. When we look back in a couple of years, I am sure that the
credibility the ECB established will be much more important than a temporary
slide in the value of the euro.
You've been speaking about the benefits of restructuring for some time. How far
along is Europe in the process?
Early on, restructuring was simply about companies beginning to pay attention
to the interests of their shareholders, shedding unprofitable businesses,
gaining flexibility from workers and focusing on core businesses. While these
issues may seem like no big deal from the American perspective, accomplishing
them was difficult in countries where social cohesion is often seen as more
important than corporate profitability. Of course, as in the United States,
this "focus-oriented" restructuring is a never-ending process. The next and
most recent phase of restructuring has been the creation of national champions
which have the size and resources necessary to compete on a pan-European as
well as a global basis. This has generally happened in old-line industries such
as banking, insurance, chemicals and energy. What is finally starting to happen
now are cross-border mergers, and these are most evident in growth industries
such as mobile telephony, technology and pharmaceuticals. The potential
benefits of European restructuring to the Fund's shareholders go well into the
future and are perhaps limitless.
2
<PAGE>
CHASE VISTA EUROPEAN FUND
As of October 31, 1999 (Unaudited)
What about the United Kingdom? When, if ever, do you expect the country with
the largest stock market capitalization to adopt the euro?
The fact that the euro declined versus the British pound in its first ten
months, combined with the reality that growth in the UK has been relatively
stronger for the past few years, has supported those who would keep the status
quo. However, as we see improvements in continental European economic
performance, increasing economic integration and the arrival of cross-border
mergers involving UK companies, it will become more difficult to justify
staying out of Euroland. Because the issue is one of pride and politics as much
as economics, it's hard to predict a date, but we certainly expect the UK to
adopt the euro in the longer term.
What's your forecast for the next year?
Our view is that earnings will continue to be strong as a combination of solid
economic growth and restructuring boost earnings. Earnings are always an
important driver of stock market activity. Further, we think that the merger
and acquisition boom has a long way to go, and while we don't invest in a
company simply because it may be bought, we are focusing on restructuring
businesses and industries and these are more likely to see M&A activity. While
the short term is almost impossible to predict, we think that Europe is in the
midst of profound change, one that creates opportunity for us as investors, and
therefore we're quite bullish over the mid- to long-term.
Average Annual Total Returns+
<TABLE>
<CAPTION>
Since
Inception
1 Year 3 Years (11/2/95)
<S> <C> <C> <C>
- ------------------------------------------------------------------
Class A Shares
Without Sales Charge 15.60% 20.72% 20.73%
With Sales Charge* 8.95% 18.36% 18.96%
- ------------------------------------------------------------------
Class B Shares
Without CDSC 14.66% 19.82% 19.86%
With CDSC** 9.66% 19.11% 19.42%
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Class C Shares
Without CDSC 14.73% 19.84% 19.88%
With CDSC*** 13.73% 19.84% 19.88%
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</TABLE>
Source: Lipper Analytical Services. Past performance is not indicative of
future results. Investment return and principal value will fluctuate, so that
shares, when redeemed, may be worth more or less than their original cost.
The Fund is currently waiving certain fees. This waiver may be terminated,
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. The fund may be also subject to the additional risk of
non-diversified "regional" fund investing.
+ The Fund commenced operations on 11/2/95. Class B and C Shares were
introduced on 11/3/95 and 11/1/98 respectively. Performance prior to
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.
3
<PAGE>
CHASE VISTA EUROPEAN FUND
As of October 31, 1999 (Unaudited)
Percentage of Total Portfolio Investments
[PIE CHART PLOT POINTS]
Portugal (1.2%)
Ireland (3.4%)
Sweden (4.8%)
Switzerland (5.6%)
Spain (5.8%)
Italy (6.5%)
Netherlands (8.3%)
Finland (8.3%)
Germany (11.0%)
France (15.8%)
United Kingdom (28.8%)
[END PLOT POINTS]
Top Ten Equity Holdings of the Portfolio
1. Nokia OYJ (4.9%) An international telecommunications company. The Company
develops and manufactures mobile phones, networks and systems for cellular and
fixed networks.
2. Kamps AG (4.7%) 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. Total Fina SA, Class B (3.7%) Explores for, produces, refines, transports
and markets oil and natural gas. The Company also operates a chemical division
which produces rubber, paint, ink, adhesives and resins.
4. BP Amoco PLC (3.7%) 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.
5. Sonera OYJ (3.0%) Offers telecommunications services, including fixed line
and mobile telephone, data communications and networked multimedia services.
6. Glaxo Wellcome PLC (3.0%) Researches, develops, manufactures and markets
pharmaceuticals. The Company's main products include "Zantac," an anti-ulcer
drug, "Severent," a respiratory drug, "Imigran," a migraine drug, "Lamictal," a
treatment for epilepsy, and "Epivir," for HIV.
7. Fortis NV (2.9%) Offers banking and insurance services. Fortis Bank offers
retail and commercial banking services in Europe, the United Kingdom, Africa,
Asia and the United States. The Company offers life and property/casualty
insurance in Europe, the United States and Asia.
8. Credit Commercial de France (2.9%)
Provides retail banking, investment banking, fund management and private
banking through 195 branches in France, with regional banks operating another
450 branches.
9. Rhone-Poulenc SA (2.8%) Manufactures chemicals, polymers, fibers,
pharmaceuticals and agricultural chemicals. The Company has sales throughout
the world, with a concentration in France, the United States and Canada.
10. Shell Transport and Trading Co., PLC (2.5%) Owns 40% of the Royal Dutch/
Shell Group of companies, which are involved in all phases of the petroleum
industry from exploration to final processing and delivery. The Group has
locations in approximately 130 countries around the world.
Top 10 equity holdings comprised 34.1% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
4
<PAGE>
CHASE VISTA EUROPEAN FUND
As of October 31, 1999 (Unaudited)
Life of Fund Performance (11/2/95 to 10/31/99)
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Chase Vista MSCI Europe Lipper European
European Fund Index Funds Average
<S> <C> <C> <C>
1995 9425 10000 10000
1996 11395.9 11795.8 11778.6
1997 14606.2 14909.7 14383
1998 17340.4 17591 16846.9
1999 20025 19850 18898.3
</TABLE>
[END PLOT POINTS]
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
the future results. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less
than their original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
Shares of Chase Vista European Fund, the Lipper European Funds Average and the
MSCI Europe Index from November 2, 1995 to October 31, 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.
5
<PAGE>
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CHASE VISTA SOUTHEAST ASIAN FUND
As of October 31, 1999 (Unaudited)
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Fund Manager Q&A With David Webb
David, the Fund had a total return of 44.33% (Class A Shares, without sales
charge) for the reporting year compared to 39.83% for the MSCI Asia (ex-Japan)
index and 48.33% for the Lipper Pacific (ex-Japan) Funds Average tracked. What
keyed your performance?
In dealing with the reporting year, it's important to note that most of the
positive performance was achieved in the first half of the reporting year. The
divergence between the first and second halves was keyed by a number of
factors. First, the U.S. interest rate situation is always important in these
markets, and as the U.S. Federal Reserve Board switched from cutting short-term
rates to raising them, it put a big hurdle in front of these markets.
Additionally, many of the markets moved so far, so fast that a cooling off
period was to be expected.
Do you consider the Asian economic crisis to be over?
What we're seeing now is that those countries who responded to the crisis by
restructuring their economies, adding transparency to financial results and
reducing overcapacity have been favored by investors. Singapore, South Korea
and Taiwan are excellent examples of this progress. Countries which have made
fewer restructuring efforts tend to rise and fall less for fundamental reasons
and more due to the strength of the overall region or because of a single piece
of news. We favor the former countries because they would be less adversely
affected by a future crisis. While the effects of the Asian economic crisis
that began in 1997 will be with us for some time--physically, financially and
psychologically--we've moved beyond the crisis per se.
What about Hong Kong?
Hong Kong's economy is suffering from very real pressures for devaluation of
its currency and these continue to build as prices decline. Further, high real
interest rates cannot help but have a negative effect on property prices, long
one of the mainstays of the Hong Kong economy and market. Because the Hong Kong
dollar is pegged to the U.S. dollar, rising U.S. interest rates have only
aggravated the situation. Hong Kong is a service economy in which the costs of
doing business are too high, which must lead to either further drops in service
prices or a devaluation. But any such devaluation will be done in tandem with
the Chinese currency. Having expressed concerns about Hong Kong, I should note
that the market has done quite well in 1999.
Do you expect such a devaluation from the Chinese, and what impact would that
have on the region?
Pressures are building for a Chinese devaluation in light of chronic domestic
deflation brought on by job losses in state industries and the lack of foreign
direct investment. Further, the recent agreement with the U.S. that should pave
the way for China to enter the World Trade Organization (WTO) is another push
towards devaluation. While the Chinese currency devaluation could occur in
2000, it will possibly happen later given that WTO-mandated tariff reductions
would be phased in gradually. The possibility of a devaluation in
6
<PAGE>
CHASE VISTA SOUTHEAST ASIAN FUND
As of October 31, 1999 (Unaudited)
China makes us more bullish on the prospects for Hong Kong given the impact a
coordinated devaluation of the Hong Kong dollar would have on its currently
deflationary economy. While a RMB devaluation could cause a chain reaction in
the region, I believe that by the time it happens investors will be prepared.
The region and the world benefited tremendously when China made the correct
decision of not devaluing 18 months ago, when such a move would have severely
deepened the crisis.
Is Y2K having a big effect on the region?
On an investment level, we expected that a shift would occur into the core
markets, and it appears that much of it had happened by the end of October. In
our view, this shift should lead to a renewed focus on the intrinsic
fundamentals in the core markets, and given our concerns about Hong Kong, we
favor Singapore, Korea, Taiwan and Australia. As for real Y2K failures, there
is a possibility, especially in less developed markets such as the Philippines
and Thailand.
What's your forecast for the region?
Barring a shock from overseas, we expect the region to continue its economic
recovery. Our key concern in the core markets will be earnings growth. Earnings
are compared on a year-over-year basis, which means that this year's earnings
growth was artificially high because it was reflected off of last year's
crisis-level numbers. We won't have that advantage again, which will be a
challenge. However, there is tremendous opportunity in the region once we get
past Y2K and move into 2000.
Average Annual Total Returns+
<TABLE>
<CAPTION>
Since
Inception
1 Year 3 Years (11/2/95)
- ------------------------------------------------------------------
<S> <C> <C> <C>
Class A Shares
Without Sales Charge 44.33% -7.87% -1.64%
With Sales Charge* 36.04% -9.68% -3.09%
- ------------------------------------------------------------------
Class B Shares
Without CDSC 43.14% -8.64% -2.42%
With CDSC** 38.14% -9.51% -3.12%
- ------------------------------------------------------------------
</TABLE>
Source: Lipper Analytical Services. Past performance is not indicative of
future results. Investment return and principal value will fluctuate, so that
shares, when redeemed, may be worth more or less than their original cost.
The Fund is currently waiving certain fees. This waiver may be terminated,
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. The fund may be also subject to the additional risk of
non-diversified "regional" fund investing.
+ The Fund commenced operations on 11/2/95. Class B Shares were introduced on
11/3/95. Performance prior to introduction is based upon historical expenses of
the predecessor Class A Shares, which are lower than the actual expenses of the
B Shares.
7
<PAGE>
CHASE VISTA SOUTHEAST ASIAN FUND
As of October 31, 1999 (Unaudited)
Percentage of Total Portfolio Investments
[PIE CHART PLOT POINTS]
Indonesia (0.1%)
China (1.9%)
Philippines (2.6%)
Thailand (3.0%)
United Kingdom (3.8%)
India (6.3%)
Taiwan (9.3%)
Australia (10.8%)
Singapore (15.8%)
South Korea (21.8%)
Hong Kong (24.6%)
[END PLOT POINTS]
Top Ten Equity Holdings of the Portfolio
1. Swire Pacific LTD, Class A (4.7%) Has diversified operations under six
operating divisions: property, aviation, industries, trading, marine services
and insurance.
2. DBS Land LTD (4.1%) With its subsidiaries, engaged in property investment
and development of properties for investment and sale.
3. HSBC Holdings PLC (3.8%) An international banking and financial services
organization. Services provided include retail and corporate banking, trade,
trustee, securities, custody and treasury services.
4. Cheung Kong (3.6%) Involved in property development and investment, real
estate agency and management, and investment in securities.
5. Hutchison Whampoa (3.5%) 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. DBS Group Holdings LTD (3.5%) Provide banking and development financing,
mortgage financing, lease and hire financing, nominee and trustee services,
funds management services, corporate advisory services, stockbroking, and act as
a primary dealer in Singapore government securities.
7. Lang Corp., LTD (3.3%) A holding company with investments in listed and
unlisted companies with operations in transport logistics with its primary
activity on seaborne trade movements.
8. Korea Electric Power Corp. (2.9%) Generates and distributes electricity to
Korea. The Company also is involved in the construction of nuclear power plants
in Korea.
9. China Resources Enterprises (2.7%) A property and investment holding company
whose subsidiaries develop and invest in real estate and infrastructural
projects, provide cold storage services, and manufacture beer, building
materials and chemical products.
10. Hyundai Industrial Development and Construction (2.5%) A construction
company that focuses on apartments and housing construction. The Company also
is involved in petrochemicals, department stores and leisure business.
Top 10 equity holdings comprised 34.6% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
8
<PAGE>
CHASE VISTA SOUTHEAST ASIAN FUND
As of October 31, 1999 (Unaudited)
Life of Fund Performance (11/2/95 to 10/31/99)
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Chase Vista Lipper Pacific MSCI Pacific
Southeast Ex-Japan Funds Ex-Japan
Asian Fund Average Funds Average
<S> <C> <C> <C>
1995 9425 10000 10000
1996 11280 10572.2 12013.1
1997 8024.22 7817.46 10482
1998 6110.89 5985.23 9887.24
1999 8820.82 8843.49 13247.5
</TABLE>
[END PLOT POINTS]
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
the future results. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less
than their original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
Shares of Chase Vista Southeast Asian Fund, the Lipper Pacific Ex-Japan Funds
Average and the MSCI Pacific Ex-Japan Index from November 2, 1995 to October
31, 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.
9
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA JAPAN FUND
As of October 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Fund Manager Q&A With Miyuki Kashima
Miyuki, the fund had a total return of 53.51% (Class A Shares, without sales
charge), while the MSCI Japan Index was up 58.66% and the Lipper Japan Equity
Funds Average was up 95.57%. Can you explain why the Fund lagged in such a bull
market?
While the Japanese stock market indexes performed well, the overall rally was
quite narrow, especially when you consider that a significant portion of the
year's gains for dollar-based investors came from the yen's appreciation. For
much of the reporting year, the market focused on either well-known exporters
or high tech "new Japan" companies. By the end of the reporting year, the
concentration of market performance was in only six or seven of 33 industry
sectors, this despite the fact that earnings at the favored companies were
suffering due to the strong yen. While maintaining broad industry
diversification, the Fund's value discipline led us to avoid the excessive
valuations in the high tech areas in favor of restructuring companies that were
meeting and exceeding earnings targets. Unfortunately, the market chose to
ignore these companies, creating a very large value gap in Japanese stocks and
causing us to underperform the index.
What was behind the tremendous rally in Japan?
After years of bad news, the market began to rally in early 1999 when a growth
report showed unexpected strength. Foreign investors, who had been sharply
underweight in Japan, began to move back into the market, and this liquidity
supported prices. As prices rose and growth continued to exceed expectations,
momentum kicked in and foreigners invested even more, as did Japanese
institutions. Of course, foreign investors in any markets tend to go with the
names they know, and this led to the sharp performance divergence in the
market. As the year wore on, much as you saw in the U.S., investors wanted high
tech and Internet stocks and were ready to pay up for them in terms of
traditional valuation methods. The bottom line is that we had a depressed
market that received good news and built on it throughout 1999.
Are you saying that Japanese stocks are overvalued?
Investors everywhere are having problems agreeing on how to value high tech and
Internet companies. I would say there are pockets of overvaluation simply due
to enthusiasm which has priced in all the potential good news of certain stocks
while ignoring the actual good news in terms of strong earnings of companies in
other sectors. There are plenty of undervalued sectors that are restructuring
and delivering on their earnings, and this is our focus within a diversified
overall portfolio. We think a bounce back in these areas is called for at this
point, and I should note that we began to see a lessening of concentration and
a strong move in the previously ignored sectors after the reporting period
ended.
Are you concerned about the strong yen?
The market has weathered the rise quite well, and the government is clearly
sensitive to what a strong yen could do to the economic recovery.
10
<PAGE>
CHASE VISTA JAPAN FUND
As of October 31, 1999 (Unaudited)
A year ago people were talking about the potential collapse of the world's
second largest economy. Do you believe Japan has turned the corner?
Yes, I do. There is still much restructuring to be done. We've seen the
beginnings of mergers among the big banks, but there will have to be more of
that and it will cost the government money to merge or shut down problem banks.
The government will have to spend money to support people as the economy's
over-capacity is reduced. The government is running a very high deficit even
before tackling these problems, so we can't say that there aren't big
challenges ahead. For instance, the government may choose to monetize its debt,
allowing the currency to weaken. The point is that there could be further
dislocation ahead, and we believe the best investments remain in those
companies which have prepared themselves to compete in any environment through
restructuring.
Do you see the Fund allocating a larger share of assets to the "new Japan" high
tech and Internet companies you mentioned in order to more fully participate in
any rally?
We continue to look for value in these areas, and we do like certain stocks.
It's really a question of identifying good news before the market prices it in
to these stocks, and that has been difficult. But yes, we believe there are
opportunities and we are currently invested in some "new Japan" names.
Average Annual Total Returns+
<TABLE>
<CAPTION>
Since
Inception
1 Year 3 Years (11/2/95)
- ------------------------------------------------------------------
<S> <C> <C> <C>
Class A Shares
Without Sales Charge 53.51% 4.11% 1.54%
With Sales Charge* 44.68% 2.07% 0.04%
- ------------------------------------------------------------------
Class B Shares
Without CDSC 52.69% 3.39% 0.82%
With CDSC** 47.69% 2.45% 0.11%
- ------------------------------------------------------------------
</TABLE>
Source: Lipper Analytical Services. Past performance is not indicative of
future results. Investment return and principal value will fluctuate, so that
shares, when redeemed, may be worth more or less than their original cost.
The Fund is currently waiving certain fees. This waiver may be terminated,
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. The fund may be also subject to the additional risk of
non-diversified "regional" fund investing.
+ The Fund commenced operations on 11/2/95. Class B Shares were introduced on
11/3/95. Performance prior to introduction is based upon historical expenses of
the predecessor Class A Shares, which are lower than the actual expenses of the
B Shares.
11
<PAGE>
CHASE VISTA JAPAN FUND
As of October 31, 1999 (Unaudited)
Percentage of Total Portfolio Investments
[PIE CHART PLOT POINTS]
Real Estate (1.0%)
Transportation (1.1%)
Consumer Staples (3.7%)
Capital Goods (6.0%)
Health Care (8.2%)
Basic Materials (10.0%)
Utilities (12.2%)
Consumer Cyclicals (18.5%)
Financial (18.8%)
Technology (20.5%)
[END PLOT POINTS]
Top Ten Equity Holdings of the Portfolio
1. NTT Mobile Communication Network, Inc. (6.3%) Provides various
telecommunications services including cellular phones, car phones, pagers and
packet communication services.
2. Nippon Telegraph & Telephone Corp. (3.6%) Provides a variety of
telecommunications services, including telephone, telegraph, leased circuits,
data communication, terminal equipment sales and other related services.
3. Hoya Corp. (2.8%) Manufactures electro-optics products such as photomasks
for semiconductors, eyeglasses, contact lenses, medical service products and
crystal products. The Company sells its products in Asia and overseas markets.
4. Sharp Corp. (2.8%) Manufactures consumer and industrial electronics. The
Company specializes in electronic equipment, audio and communication equipment,
information equipment, personal computers, word processors and electronic
parts.
5. Toyota Motor Corp. (2.7%) Produces, sells, leases and repairs passenger
cars, trucks, buses, boats and airplanes in Japan and overseas.
6. Bank of Tokyo-Mitsubishi, LTD (2.6%) Provides a broad range of financial
services to businesses, government and private individuals. The Bank, through
its commercial subsidiaries, offers commercial, investment and trust banking
products and services.
7. Murata Manufacturing Co., LTD (2.5%) Manufactures and sells ceramic applied
electronic components. The Company's products include capacitators, thermistors,
resisters, piezoelectronic sound components, noise suppression product
resonators, power suppliers, sensors, hybrid IC, microwave components for
communication equipment and filters for audio visual equipment.
8. Nintendo Co., LTD (2.5%) Manufactures and markets video games. The Nintendo
Entertainment System and the Super Nintendo Entertainment System are connected
to televisions for home video play.
9. Fujisawa Pharmaceutical Co. (2.5%) Makes and sells medicines for human and
veterinary use. It is also involved in the business of cosmetics, agricultural
chemicals and medical instruments.
10. NEC Corp. (2.4%) Manufactures and markets computers, telecommunications
devices, electronic appliances, circuit board, instruments for medical
equipment and aerocrafts.
Top 10 equity holdings comprised 30.7% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
12
<PAGE>
CHASE VISTA JAPAN FUND
As of October 31, 1999 (Unaudited)
Life of Fund Performance (11/2/95 to 10/31/99)
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Lipper Japan Tokyo SE (Topix)
Chase Vista Equity Funds 1st Section MSCI
Japan Fund Average Index Japan Index
<S> <C> <C> <C> <C>
1985 9425 10000 10000 10000
1996 8878.74 9933.2 9877.46 9930.6
1997 9187.15 8952.65 7911.81 8139.68
1998 6525.91 7837.09 6858.89 6980.05
1999 10017.4 15103.8 11678.2 11076
</TABLE>
[END PLOT POINTS]
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
the future results. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less
than their original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
Shares of Chase Vista Japan Fund, the Lipper Japan Equity Funds Average and the
Tokyo SE (Topix) 1st Section from November 2, 1995 to October 31, 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. MSCI Japan Index is a replica (or model) of the
performance of the Japan Equity Markets. This 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. The Fund may be also subject to the additional
risk of non-diversified "regional" fund investing.
13
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA LATIN AMERICAN EQUITY FUND
As of October 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Fund Manager Q&A With Wayne Perkins
Wayne, the Fund's results are really a "tale of two markets." After being up by
24.35% (Class A Shares, without sales charge) in the November, 1998 to April
30, 1999 period, the Fund ended the full reporting year with a gain of 6.58%
compared to its Lipper Latin American Average benchmark which had an annual
return of 16.19%. Can you explain what happened?
Early in the period, the Fund did well as Latin American markets responded
positively to waning concern over global economic conditions as well as to the
U.S. Federal Reserve Board's decision to cut short-term interest rates in
November, 1998. As the year wore on, our focus on valuation led us to
overweight Mexico and Brazil, but these markets suffered due to lack of
investment flows into the region and concerns about U.S. interest rates,
particularly in Brazil. The Fund was also hurt in the post-June period by a
lack of holdings in the highly-valued Argentine and Chilean markets. Liquidity
was the key issue, and the lack of it made stocks in Brazil and Mexico even
cheaper on a relative basis while those in Argentina and Chile became even more
dear.
Do you intend to maintain your focus on Mexico and Brazil?
Yes. Despite the short term underperformance, several factors support our view
that these markets should rally. First, we believe the Y2K issue will lead to
more interest in these highly-liquid markets as we approach year-end. Second,
interest rates in both countries should continue to decline. Third, both have
positive growth trends, with Brazil rebounding from recession and Mexico
accelerating. Finally, liquidity is all-important in Latin American markets,
and the management team is confident that as cash flows come in, they will be
directed to Brazil and Mexico.
Why did liquidity flows turn negative in 1999?
There are three ways that mutual fund money flows into Latin America--
through dedicated funds such as this Fund, through emerging market funds and
through international and global funds. With Japan and Southeast Asia
performing very well, there was a reallocation of assets from non-dedicated
funds to their markets. Other issues that caused problems were rising American
interest rates and concerns over Brazil's recovery.
Does the lack of inflows cause you to question the region's prospects in the
months and years ahead?
Not at all, because while flows of dedicated and emerging market funds into
Latin America have been profoundly negative, foreign direct investment into the
region is at or near record levels. Since mid-1997, assets of U.S.-based Latin
American funds have decreased from $5.5 billion to $1.5 billion while emerging
market and international funds have generally shifted assets to Europe and
Asia. However, foreign direct investment, which requires a long-term commitment
to the region and confidence in its future, is running near 1998's record pace
in Mexico and well ahead in Brazil despite the 40% devaluation of the real. In
our view, this is a bullish sign for the future and reveals that the region has
strengths that currently don't factor into market prices.
14
<PAGE>
CHASE VISTA LATIN AMERICAN EQUITY FUND
As of October 31, 1999 (Unaudited)
What's the key to more consistent performance ahead in Latin America?
Shortly after the reporting period ended, we saw a sharp rally in Brazil, and
as the region's largest market it is the linchpin. While the rally was largely
a result of good news coming out of the U.S., investors are clearly happy with
the country's improving fundamentals. Industrial production was up .3%
year-over-year in September and was also up compared to August, while at the
same time the currency is recovering and interest rates are expected to come
down. On a technical basis, the market should benefit from an agreement with
the IMF on lower reserve requirements that will allow the central bank more
room to intervene in currency markets. Taken together, these better
fundamentals create the backdrop for stronger relative performance as long as
the news from the U.S. remains benign.
So you remain a bull on Latin America?
The growth potential is enormous and while the markets remain sensitive to
political concerns, the fact of the matter is that the region has adopted
market-based democracy as the preferred political and economic framework. These
are emerging markets and they will remain volatile, and certainly they were
excessively affected by the Asian flu that blew in from the east. But we
continue to believe that long-term investors who ride through the volatility
will be rewarded.
Average Annual Total Returns+
<TABLE>
<CAPTION>
Since
Inception
1 Year (12/1/97)
- ----------------------------------------------------
<S> <C> <C>
Class A Shares
Without Sales Charge 6.58% -23.16%
With Sales Charge* 0.45% -25.50%
- ----------------------------------------------------
Class B Shares
Without CDSC 5.99% -23.59%
With CDSC** 0.99% -25.17%
- ----------------------------------------------------
</TABLE>
Source: Lipper Analytical Services. Past performance is not indicative of
future results. Investment return and principal value will fluctuate, so that
shares, when redeemed, may be worth more or less than their original cost.
The Fund is currently waiving certain fees. This waiver may be terminated,
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. The Fund may be also subject to the additional risk of
non-diversified "regional" fund investing.
+ The Fund commenced operations on 12/1/97. Class B Shares were introduced on
3/24/98. Performance prior to introduction is based upon historical expenses of
the predecessor Class A Shares, which are lower than the actual expenses of the
B Shares.
15
<PAGE>
CHASE VISTA LATIN AMERICAN EQUITY FUND
As of October 31, 1999 (Unaudited)
Percentage of Total Portfolio Investments
[PIE CHART PLOT POINTS]
Peru (4.9%)
Argentina (4.9%)
Chile (6.5%)
Mexico (41.4%)
Brazil (42.3%)
[END PLOT POINTS]
Top Ten Equity Holdings of the Portfolio
1. Telefonos de Mexico (6.1%) Provides national and international long-distance
and local telephone service throughout Mexico and participates in the United
States and Guatemalan markets.
2. Grupo Televisa SA (5.5%) 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.
3. Cemex SA (5.2%) Produces, distributes, markets and sells cement, ready-mix
concrete, aggregates and clinker. The Company has trade relations with over 60
countries.
4. Alfa SA (5.0%) Through subsidiaries, operates petrochemical, steel,
synthetic fiber, food, auto parts and telecommunications businesses.
5. Telefonica de Argentina SA (4.9%) Offers telephone and fixed-link public
telecommunications services. The Company provides local and long distance
telephone service to southern Argentina, including the Province of Buenos Aires
and more than half the City of Buenos Aires.
6. Grupo Financiero Banorte (4.7%) Operates as a holding company, offering
financial services to individuals and corporate clients.
7. Maderas y Sinteticos SA (4.6%) Manufactures raw, melamine laminated and wood
veneered particle board. The Company also makes wood doors, mouldings, wood
veneer, doorframes, lumber and related products.
8. Embotelladora Argos (4.6%) Bottles and markets soft drinks, including Coca
Cola, Fanta and Sprite, throughout northwestern Mexico.
9. Centrais Electricas Brasileiras SA (4.3%) The Company plans, finances,
coordinates and supervises expansion and construction projects for electric
companies.
10. Companhia Paranaense de Energia (4.3%) Generates, transmits, transforms
and distributes electric power to the entire Brazilian State of Parana. The
Company's major customers are industrial, residential and rural electricity
consumers.
Top 10 equity holdings comprised 49.2% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
16
<PAGE>
CHASE VISTA LATIN AMERICAN EQUITY FUND
As of October 31, 1999 (Unaudited)
Life of Fund Performance (12/1/97 to 10/31/99)
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Chase Vista Lipper Latin MSCI EMF
Latin American American Fund Latin American
Equity Fund Average Index
<S> <C> <C> <C>
1997 9425 10000 10000
1998 5339.79 6678.89 6961.98
1999 5691.36 7766.5 8018.66
</TABLE>
[END PLOT POINTS]
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
the 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 Latin American Equity Fund, the Lipper Latin American
Funds Average and the MSCI EMF Index from December 1, 1997 to October 31, 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
erminated 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 EMF Latin America Index is a replica (or model) of the performance of
the Latin American equity 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 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.
17
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA INTERNATIONAL EQUITY FUND
As of October 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Fund Manager Q&A With Michael Browne
Michael, the Fund had a total return of 19.09% (Class A Shares, without sales
charge) for the year ended October 31, 1999. This compares to 25.53% for the
Lipper International Equity Funds Average. What led to this divergence?
Most of the divergence can be explained by the Fund's allocation to and
holdings in Japan. We began the reporting year heavily underweight in Japan and
remained fairly skeptical of the economic growth report that kicked off the
rally in the first part of 1999. Although we picked up our allocation as the
year progressed, several issues led us to be more conservative than some other
funds. These include what we considered to be a very narrow market in Japan,
wherein a small percentage of sectors were doing very well and the great
majority of sectors lagged the index. Additionally, these leading sectors,
which included high tech and Internet companies, tended to have very high
valuations and were the companies most likely to be harmed by a stronger yen.
How did the stronger yen affect the Fund?
Fortunately, our currency decisions generally had a positive impact. During the
yen's big move, we were underweight Japan but were overweight the yen.
Where was the Fund's focus, if not in Japan?
Europe remained the region where we had our largest overweight. We continue to
believe that the best opportunities in Europe are available in those companies
which are restructuring their operations to efficiently compete both within
Europe and around the world. During the reporting year, we were positioned to
take advantage of this restructuring, and we benefited from the high level of
merger and acquisition activity. We also gained on a relative basis from our
holdings in sectors which provide a combination of growth and restructuring,
such as technology and mobile telephony.
Do you intend to remain overweight in Europe?
Our view is that European earnings will continue to be strong, and earnings are
always an important driver of stock market activity. Further, we think that the
merger and acquisition boom has a long way to go, and while we don't invest in
a company simply because it may be bought, we are focusing on restructuring
businesses and industries and these are more likely to see M&A activity. While
the short term is almost impossible to predict, we think that Europe is in the
midst of profound change, one that creates opportunity for us as investors, and
therefore we're quite bullish over the mid- to long-term.
What about the emerging markets?
Generally, our holdings in Southeast Asia were positive for performance on a
relative basis while those in Latin America were detrimental. We continue to
believe that there is significant opportunity in emerging markets, but we
intend to remain cautious and selective as we move into Y2K. After we overcome
that hurdle, we will look to invest in and continue to identify countries and
companies that we believe can outperform.
18
<PAGE>
CHASE VISTA INTERNATIONAL EQUITY FUND
As of October 31, 1999 (Unaudited)
What's your overall view of the global investing situation moving in the year
2000?
Almost anywhere you look, you see growth. That's been the story of 1999, and we
believe it will carry over into the year 2000. The major risk is that U.S.
growth accelerates instead of decelerating, causing interest rates to rise and
stocks to fall and putting downward pressure on world markets. But there are
always risks. Scanning the globe, one has to be rather satisfied with the
wealth of opportunities, especially when just a year ago the concern was global
deflation.
Average Annual Total Returns+
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Years (12/31/92)
- --------------------------------------------------------------------
<S> <C> <C> <C>
Class A Shares
Without Sales Charge 19.09% 5.11% 6.99%
With Sales Charge* 12.25% 3.87% 6.06%
- --------------------------------------------------------------------
Class B Shares
Without CDSC 18.49% 4.62% 6.52%
With CDSC** 13.49% 4.28% 6.52%
- --------------------------------------------------------------------
</TABLE>
Source: Lipper Analytical Services. Past performance is not indicative of
future results. Investment return and principal value will fluctuate, so that
shares, when redeemed, may be worth more or less than their original cost.
The Fund is currently waiving certain fees. This waiver may be terminated,
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. The fund may be also subject to the additional risk of
non-diversified "regional" fund investing.
+ The Fund commenced operations on 12/31/92. Class B shares were introduced on
11/4/93. Performance prior to introduction is based upon historical expenses of
the predecessor Class A Shares, which are lower than the actual expenses of the
Class B Shares.
19
<PAGE>
CHASE VISTA INTERNATIONAL EQUITY FUND
As of October 31, 1999 (Unaudited)
Percentage of Total Portfolio Investments
[PIE CHART PLOT POINTS]
Other (1.9%)
Brazil (2.2%)
Ireland (2.5%)
Switzerland (3.4%)
Sweden (3.5%)
Italy (4.0%)
Spain (4.0%)
Finland (5.8%)
Netherlands (6.8%)
Germany (8.1%)
France (10.5%)
United Kingdom (21.0%)
Japan (26.3%)
[END PLOT POINTS]
Top Ten Equity Holdings of the Portfolio
1. Kamps AG (3.5%) 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.
2. Nokia OYJ (3.4%) An international telecommunications company. The Company
develops and manufactures mobile phones, netowrks and systems for cellular and
fixed networks.
3. Viag AG (2.6%) Generates electrical power, produces aluminum sheeting, roll
goods, packaging and chemicals, distributes natural gas and offers logistics
services.
4. BP Amoco PLC (2.5%) 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.
5. Total Fina SA, Class B (2.4%) Explores for, produces, refines, transports
and markets oil and natural gas. The Company also operates a chemical division
which produces rubber, paint, ink, adhesives and resins.
6. Glaxo Wellcome PLC (2.1%) Researches, develops, manufactures and markets
pharmaceuticals. The Company's main products include "Zantac," an anti-ulcer
drug, "Severent," a respiratory drug, "Imigran," a migraine drug, "Lamictal," a
treatment for epilepsy, and "Epivir," for HIV.
7. British Telecommunications PLC (2.1%) Provides telecommuincations services.
The Company provides local and long- distance telephone call products and
services in the UK, telephone exchange lines to homes and businesses,
international telephone calls to and from the UK, telecommunications equipment
for customers' premises, and Internet and data services.
8. Sonera OYJ (2.1%) Offers telecommunications services, including fixed line
and mobile telephone, data communications and networked multimedia services.
9. Fortis NV (2.0%) Offers banking and insurance services. Fortis Bank offers
retail and commercial banking services in Europe, the United Kingdom, Africa,
Asia and the United States. The Company offers life and property/casualty
insurance in Europe, the United States and Asia.
10. Credit Commercial de France (1.9%) Provides retail banking, investment
banking, fund management and private banking through 195 branches in France,
with regional banks operating another 450 branches.
Top 10 equity holdings comprised 24.6% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
20
<PAGE>
CHASE VISTA INTERNATIONAL EQUITY FUND
As of October 31, 1999 (Unaudited)
Life of Fund Performance (12/31/92 to 10/31/99)
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Chase Vista Lipper
International International MSCI EAFE
Equity Fund Funds Average Index
<S> <C> <C> <C>
1992 9425 10000 10000
1993 11140.9 12911.4 13580.8
1994 11655.3 14302.2 14989.9
1995 11450 14214.4 14980.5
1996 11926.8 15855.6 16594.7
1997 12200.2 17529.2 17410.1
1998 12559.9 18247.3 19142.7
1999 14951.8 22880.7 23618.1
</TABLE>
[END PLOT POINTS]
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
the future results. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less
than their original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
Shares of Chase Vista International Equity Fund, the Lipper International Funds
Average and the MSCI EAFE Index from December 31, 1992 to October 31, 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
United States and other nations.
21
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA EUROPEAN FUND
Portfolio of Investments
- --------------------------------------------------------------------------------
As of October 31, 1999
<TABLE>
<S> <C> <C>
Shares Issuer Value (USD)
- --------------------------------------------------------------------------------
Long-Term Investments -- 96.9%
- --------------------------------------------------------------------------------
Common Stock -- 96.9%
---------------------
Finland -- 8.0%
24,484 Nokia OYJ $2,800,107
57,597 Sonera OYJ 1,728,341
7,700 Upm-Kymmene OYJ 242,793
----------
4,771,241
France -- 15.3%
4,450 Axa 627,209
1,210 Bouygues SA 420,956
29,981 CNP Assurances 882,323
3,674 Compagnie de Saint Gobain 637,157
14,267 Credit Commercial de France 1,641,990
13,600 Lagardere S.C.A. 550,330
2,700 Pinault-Printemps-Redoute 514,499
29,000 Rhone-Poulenc SA 1,621,560
15,940 Total Fina SA, Class B 2,152,855
----------
9,048,879
Germany -- 10.6%
4,750 CE Consumer Electronic AG 432,349
48,705 Kamps AG 2,723,382
6,300 Mannesmann AG 989,931
1,227 Marschollek Lautenschlaeger und Partner AG 244,386
2,273 Marschollek Lautenschlaeger und Partner AG,
Preferred Shares 479,002
77,000 Viag AG 1,427,621
----------
6,296,671
Ireland -- 3.3%
15,383 ESAT Telecom Group PLC, ADR * 688,389
73,443 Green Property PLC 421,794
198,300 Jefferson Smurfit Group 514,116
40,391 Ryanair Holdings PLC * 331,133
----------
1,955,432
Israel -- 0.7%
25,750 Partner Communications, ADR * 405,563
Italy -- 6.3%
49,600 Alleanza Assicurazioni SPA 505,160
60,000 Autogrill SPA 640,720
332,000 Banca Nazionale Del Lavoro SPA * 1,123,614
220,000 Cementir 307,537
140,000 Cremonini SPA * 305,330
135,000 Telecom Italia Mobile SPA 842,837
----------
3,725,198
Netherlands -- 7.8%
23,000 Athlon Groep 455,683
49,000 Fortis NV 1,685,642
67 Koninklijke Ahold NV 2,056
8,256 Koninklijke Philips Electronics NV 846,053
15,570 Laurus NV 346,119
9,000 United Pan-Europe Communications NV * 691,486
17,650 VNU NV 596,416
----------
4,623,455
</TABLE>
See notes to financial statements.
22
<PAGE>
CHASE VISTA EUROPEAN FUND
Portfolio of Investments (Continued)
As of October 31, 1999
<TABLE>
<S> <C> <C>
Shares Issuer Value (USD)
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Portugal -- 1.2%
15,000 Banco Espirito Santo SA $ 389,729
2,300 Telecel-Comunicacoes Pessoais SA 298,309
----------
688,038
Spain -- 5.6%
10,500 Acerinox SA 318,941
89,000 Amadeus Global Travel Distribution, Class A * 532,262
45,456 Continente SA 1,088,350
47,500 Prosegur Comp Securidad 389,414
20,500 Sogecable * 563,657
27,012 Telefonica SA * 444,042
----------
3,336,666
Sweden -- 4.7%
42,264 Assa Abloy AB, Class B 469,416
16,600 Hennes & Mauritz AB, Class B 440,277
7,127 Modern Times Group AB, Class B * 230,120
33,250 Svenska Handelsbanken, Class A 460,111
27,950 Telefonaktiebolaget LM Ericsson, Class B 1,160,311
----------
2,760,235
Switzerland -- 5.4%
14,000 ABB LTD * 1,410,348
370 Compagnie Financiere Richemont, Class A 707,104
270 PubliGroupe SA 198,105
3,000 Sia Abrasives Holding AG * 406,566
885 Zurich Allied AG 501,238
----------
3,223,361
United Kingdom -- 28.0%
42,408 Barclays PLC 1,296,412
219,480 BP Amoco PLC 2,129,787
76,700 British Telecom PLC 1,388,832
175,000 Corus Group PLC 333,103
103,231 Diageo PLC 1,041,759
48,733 Exchange Holdings PLC * 138,341
101,890 General Electric Co. PLC 1,105,970
58,568 Glaxo Wellcome PLC 1,726,032
41,000 Laporte PLC 336,385
369,000 Laporte PLC, Class B * 3,027
187,544 Legal & General Group PLC 520,082
54,000 National Westminster Bank PLC 1,217,482
50,000 NXT PLC * 352,794
28,968 Royal Bank of Scotland Group PLC 666,421
53,550 Sema Group PLC 698,568
188,000 Shell Transport & Trading Co., PLC 1,439,102
59,647 SmithKline Beecham PLC 767,338
305,230 Vodafone AirTouch PLC 1,417,411
----------
16,578,846
-----------------------------------------------------------------
Total Common Stock 57,413,585
(Cost $51,410,640)
-----------------------------------------------------------------
</TABLE>
See notes to financial statements.
23
<PAGE>
CHASE VISTA EUROPEAN FUND
Portfolio of Investments (Continued)
As of October 31, 1999
<TABLE>
<S> <C> <C>
Shares Issuer Value (USD)
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Warrants -- 0.0%
----------------
Germany -- 0.0%
71 Muenchener Rueckversicherungs-Gesellschaft AG,
Expires 06/03/02 * $ 3,022
(Cost $0)
Principal
Amount
(DEM)
Convertible Bond -- 0.0%
------------------------
Germany -- 0.0%
6,240 DaimlerChrysler AG, 5.75%, 06/14/02 3,582
(Cost $3,675)
- --------------------------------------------------------------------------------
Total Investments -- 96.9% $57,420,189
(Cost $51,414,315)
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
Summary of Investments by Industry, October 31, 1999
- ----------------------------------------------------
Industry % of Investment Securities
- --------------------------------------------------------------------------------
Telecommunications 20.0%
Banking 11.8%
Oil & Gas 10.0%
Insurance 8.2%
Food/Beverage Products 7.7%
Pharmaceuticals 7.2%
Manufacturing 5.1%
Retailing 3.6%
Construction 3.2%
Diversified 2.7%
Electronics/Electrical Equipment 2.1%
Metals/Mining 2.0%
Other 16.4%
- --------------------------------------------------------------------------------
Total 100.0%
</TABLE>
See notes to financial statements.
24
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA SOUTHEAST ASIAN FUND
Portfolio of Investments
- --------------------------------------------------------------------------------
As of October 31, 1999
<TABLE>
<S> <C> <C>
Shares Issuer Value (USD)
- --------------------------------------------------------------------------------
Long-Term Investments -- 81.9%
- --------------------------------------------------------------------------------
Common Stock -- 81.9%
---------------------
Australia -- 8.8%
93,000 David Jones LTD $ 78,228
33,000 Foster's Brewing Group LTD @ 87,649
53,400 Lang Corp., LTD *@ 222,072
86,000 M.I.M. Holdings LTD 70,696
18,800 News Corp., LTD @ 135,855
18,000 Protel International LTD *@ 47,029
119,000 Ticor LTD 90,240
---------
731,769
China -- 1.6%
634,000 Shanghai Petrochemical LTD @ 128,930
Hong Kong -- 20.1%
27,000 Cheung Kong@ 244,995
30,000 Cheung Kong Infrastructure @ 56,760
144,000 China Resources Enterprises @ 184,413
34,000 China Telecom (Hong Kong) LTD * 116,185
24,000 Citic Pacific LTD @ 62,089
224,000 Cosco Pacific LTD @ 158,568
84,000 First Pacific Co. @ 48,652
4,000 Guoco Group LTD 10,657
24,000 Hutchison Whampoa @ 240,941
56,000 New World Infrastructure LTD * 64,149
20,000 Sun Hung Kai Properties @ 161,529
65,000 Swire Pacific LTD, Class A @ 322,091
---------
1,671,029
India -- 5.1%
10,000 Bajaj Auto LTD, GDR 108,000
5,100 Gujarat Ambuja Cements GDR 62,577
1,800 ITC LTD, GDR @ 33,975
1,900 Larsen & Toubro GDR 41,135
14,300 Mahindra & Mahindra GDR 111,897
3,500 Ranbaxy Laboratories LTD, GDR 70,175
---------
427,759
Indonesia -- 0.1%
12,640 PT Telekomunikasi @ 6,019
Philippines -- 2.1%
19,000 Manila Electric Co., Class B 52,055
2,100,000 Megaworld Corp. * 73,225
2,500 Philippine Long Distance Telephone 51,992
---------
177,272
Singapore -- 13.0%
27,000 City Developments LTD 139,556
20,934 DBS Group Holdings LTD @ 236,535
152,000 DBS Land LTD @ 281,373
45,000 Keppel Land LTD 63,558
31,000 NatSteel Electronics LTD 121,105
19,025 Overseas Chinese Banking Corp. @ 142,930
1,420 Overseas Union Bank 6,145
5,000 Singapore Press Holdings 85,645
---------
1,076,847
</TABLE>
See notes to financial statements.
25
<PAGE>
CHASE VISTA SOUTHEAST ASIAN FUND
Portfolio of Investments (Continued)
As of October 31, 1999
<TABLE>
<S> <C> <C>
Shares Issuer Value (USD)
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
South Korea -- 17.9%
2,000 Halla Climate Control @ $ 108,378
16,200 Hyundai Industrial Development & Construction 169,496
1,950 Hyundai Motor Co. LTD * 34,302
1,500 Korea Chemical Co. @ 100,041
12,700 Korea Electric Power Corp. ADR 196,850
2,400 Korea Telecom 161,467
4,050 Kumho Electric Co. LTD * 111,421
2,700 LG Chemical 81,709
6,300 Samsung Corp. 99,792
2,400 Samsung Electro-Mechanics 116,049
480 Samsung Electronics * @ 80,033
5,300 Shinhan Bank GDR * 113,553
5,400 SK Chemicals 61,676
1,300 Tae Young Corp. 50,179
----------
1,484,946
Taiwan -- 7.6%
7,500 Acer, Inc. GDR * 72,188
92,840 FAR Eastern International Bank * 25,594
53,750 Far Eastern Textile Co. LTD 73,495
48,520 Formosa Plastic Corp. 97,071
14,000 Hon Hai Precision Industry * 95,715
20,000 Taiwan Semiconductor * 88,847
4,500 Winbond Electronics Corp. * 82,575
168,000 Yang Ming Marine Transport * 93,686
----------
629,171
Thailand -- 2.5%
11,100 PTT Exploration & Production Public Co., LTD,
Foreign Shares *@ 81,093
52,000 Thai Farmers Bank Public Co., LTD, Foreign Shares @ 73,420
86,500 TISCO Finance Company LTD, Preferred Foreign Shares 49,861
----------
204,374
United Kingdom -- 3.1%
21,600 HSBC Holdings PLC @ 259,939
-------------------------------------------------------------------
Total Common Stock 6,798,055
(Cost $6,587,388)
-------------------------------------------------------------------
Warrants -- 0.0%
-------------------------------------------------------------------
Hong Kong -- 0.0%
1,800 Wharf Holdings, Expires 12/31/99 * 1,182
(Cost $0)
- --------------------------------------------------------------------------------
Total Investments -- 81.9% $6,799,237
(Cost $6,587,388)
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Long Futures Outstanding
- ------------------------
Notional
Number Original Value at Unrealized
of Expiration Notional 10/31/99 Appreciation
Contracts Description Date Value (USD) (USD) (USD)
<S> <C> <C> <C> <C> <C>
4 Hang Seng
Stock Index Nov., 1999 $328,206 $343,522 $15,316
</TABLE>
See notes to financial statements.
26
<PAGE>
CHASE VISTA SOUTHEAST ASIAN FUND
Portfolio of Investments (Continued)
As of October 31, 1999
<TABLE>
<CAPTION>
Summary of Investments by Industry, October 31, 1999
- ----------------------------------------------------
Industry % of Investment Securities
- --------------------------------------------------------------------------------
<S> <C>
Real Estate 16.9%
Diversified 13.9%
Banking 12.6%
Electronics/Electrical Equipment 9.2%
Chemicals 6.0%
Utilities 4.4%
Telecommunications 4.2%
Automotive 3.7%
Construction Materials 3.4%
Construction 2.5%
Semi-Conductors 2.5%
Metals/Mining 2.4%
Business Services 2.3%
Consumer Products 2.1%
Multi-Media 2.0%
Textiles 2.0%
Other 9.9%
- --------------------------------------------------------------------------------
Total 100.0%
</TABLE>
See notes to financial statements.
27
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA JAPAN FUND
Portfolio of Investments
- --------------------------------------------------------------------------------
As of October 31, 1999
<TABLE>
<S> <C> <C>
Shares Issuer Value (USD)
- --------------------------------------------------------------------------------
Long-Term Investments -- 94.6%
- --------------------------------------------------------------------------------
Common Stock -- 94.6%
---------------------
Automotive -- 4.8%
7,000 Fuji Heavy Industries LTD $59,429
4,000 Suzuki Motor Corp., LTD 60,713
4,000 Toyota Motor Corp. 138,367
-------
258,509
Banking -- 11.0%
8,000 Asahi Bank LTD 70,985
8,000 Bank of Tokyo-Mitsubishi LTD 132,464
4,000 Dai-Ichi Kangyo Bank LTD 54,810
8,000 Industrial Bank of Japan LTD 108,087
3,000 Mitsubishi Trust & Banking 40,332
4,000 Sanwa Bank LTD 59,448
4,000 Sumitomo Bank LTD 64,316
6,000 Sumitomo Trust & Banking 61,288
-------
591,730
Chemicals -- 7.1%
7,000 Kaneka Corp. 91,558
21,000 Nippon Sanso Corp. 65,801
2,000 Shin-Etsu Chemical Co. 82,407
14,000 Sumitomo Chemical Co., LTD 89,747
19,000 UBE Industries LTD 54,983
-------
384,496
Computer Networks -- 2.3%
4,000 Fujitsu LTD 120,353
Construction -- 1.5%
7,000 Raito Kogyo Co., LTD 41,050
12,000 Yokogawa Bridge Corp. 37,371
-------
78,421
Construction Materials -- 2.2%
7,000 Asahi Glass Co., LTD 55,606
28,000 Taiheiyo Cement Corp. 61,172
-------
116,778
Consumer Products -- 5.5%
2,000 Hitachi Maxell 47,911
7 Japan Tobacco, Inc. 77,137
2,000 KAO Corp. 60,943
1,000 Secom Co. LTD-New * 106,362
-------
292,353
Distribution -- 1.4%
10,000 Mitsui & Co., LTD 73,879
Electronics/Electrical Equipment -- 14.2%
11,000 Fujikura LTD 67,986
1,000 Futaba Corp. 48,773
600 Mabuchi Motor Co., LTD 88,540
1,000 Murata Manufacturing Co., LTD 128,402
6,000 NEC Corp. 121,311
2,000 Nitto Denko Corp. 78,957
9,000 Sharp Corp. 143,158
14,000 Toshiba Corp. 88,003
-------
765,130
</TABLE>
See notes to financial statements.
28
<PAGE>
CHASE VISTA JAPAN FUND
Portfolio of Investments (Continued)
As of October 31, 1999
<TABLE>
<S> <C> <C>
Shares Issuer Value (USD)
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Financial Services -- 5.8%
400 Acom Co., LTD $43,695
8,000 Daiwa Securities Group, Inc. 85,320
700 Orix Corp. 93,906
140 Shohkoh Fund & Co., LTD 85,588
-------
308,509
Food/Beverage Products -- 3.5%
5,000 Kikkoman Corp. 41,060
40,000 Nippon Suisan Kaisha LTD 86,623
2,000 Nissin Food Products Co., LTD 57,302
-------
184,985
Health Care/Health Care Services -- 4.4%
2,000 Hoya Corp. 143,733
3,000 Terumo Corp. 91,127
-------
234,860
Insurance -- 1.0%
4,000 Tokio Marine & Fire Insurance Co. 52,319
Manufacturing -- 0.9%
2,000 Glory LTD 49,061
Metals/Mining -- 2.3%
12,000 Mitsui Mining & Smelting 67,267
21,000 Nippon Steel Corp. 53,325
-------
120,592
Office/Business Equipment -- 1.1%
2,000 Canon, Inc. 56,535
Pharmaceuticals -- 3.4%
5,000 Fujisawa Pharmaceutical Co. 125,048
1,000 Takeda Chemical Industries 57,397
-------
182,445
Real Estate -- 0.9%
5,000 Mitsubishi Estate Co., LTD 50,067
Retailing -- 3.0%
2,500 Aoyama Trading Co., LTD 79,772
1,000 Ito-Yokado Co., LTD 79,916
-------
159,688
Semi-Conductors -- 1.6%
1,000 Tokyo Electron LTD 82,982
Shipping/Transportation -- 1.0%
9 East Japan Railway Co. 55,107
Telecommunications -- 9.3%
12 Nippon Telegraph & Telephone Corp. 183,978
12 NTT Mobile Communications Network, Inc. 318,513
-------
502,491
Textiles -- 1.8%
17,000 Toray Industries, Inc. 93,666
</TABLE>
See notes to financial statements.
29
<PAGE>
CHASE VISTA JAPAN FUND
Portfolio of Investments (Continued)
As of October 31, 1999
<TABLE>
<S> <C> <C>
Shares Issuer Value (USD)
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Toys & Games -- 2.4%
800 Nintendo Co., LTD $ 126,868
Utilities -- 2.2%
24,000 Osaka Gas Co., LTD 80,261
1,600 Tokyo Electric Power 35,722
----------
115,983
- --------------------------------------------------------------------------------
Total Investments -- 94.6% $5,057,807
(Cost $3,983,422)
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
30
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA LATIN AMERICAN EQUITY FUND
Portfolio of Investments
- --------------------------------------------------------------------------------
As of October 31, 1999
<TABLE>
<S> <C> <C>
Shares Issuer Value (USD)
Long-Term Investments -- 99.5%
Common Stock -- 99.5%
---------------------
Argentina -- 4.9%
8,800 Telefonica de Argentina SA, ADR $ 225,500
Brazil -- 42.1%
11,600,000 Centrais Eletricas Brasileiras SA 199,668
5,000 Companhia Brasileira de Distribuicao Grupo Pao de
Acucar ADR 109,375
2,520,000 Companhia de Saneamento Basico SAO PA 169,761
13,000,310 Companhia Energetica de Minas Gerais, Preference
Shares 185,144
30,000 Companhia Paranaense de Energia ADR 198,750
300,000 Confab Industrial SA, Preference Shares 169,054
2,300,000 Eletropaulo Metropolitana de Sao Paulo SA, Preference
Shares * 104,865
6,000 Embratel Participacoes SA, ADR 77,250
10,000,000 Petrobras Distribuidora, Preference Shares 90,572
150,000 Sadia SA, Preference Shares 98,359
2,000 Tele Centro Sul Participacoes SA, ADR 119,500
5,600 Tele Norte Leste Participacoes SA, ADR 94,500
1,000 Telecomunicacoes Brasileiras SA, Preferred Block, ADR 77,875
812 Telecomunicacoes de Sao Paulo SA, Preference Shares 76
3,500 Telemig Celular Participacoes SA, ADR 96,031
6,500 Telesp Celular Participacoes SA, ADR 160,064
----------
1,950,844
Chile -- 6.4%
5,100 Compania de Telecomunicaciones de Chile ADR 85,106
20,000 Maderas y Sinteticos SA, ADR 212,500
----------
297,606
Mexico -- 41.2%
60,000 Alfa SA, Class A 230,158
10,646 Cemex SA, ADR * 239,535
60,000 Corporacion GEO SA, Class B, ADR * 151,674
225,500 Embotelladora Argos 210,224
400,000 Grupo Elektra SA 190,604
175,000 Grupo Financiero Banorte * 217,285
12,000 Grupo Televisa SA * 253,516
75,000 Sanluis Corp. SA * 133,298
3,300 Telefonos de Mexico ADR 282,150
----------
1,908,444
Peru -- 4.9%
10,000 Credicorp LTD 106,250
10,500 Telefonica del Peru SA, ADR 121,406
----------
227,656
- --------------------------------------------------------------------------------------
Total Investments -- 99.5% $4,610,050
(Cost $4,614,996)
- --------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
31
<PAGE>
CHASE VISTA LATIN AMERICAN EQUITY FUND
Portfolio of Investments (Continued)
As of October 31, 1999
<TABLE>
<S> <C>
Summary of Investments by Industry, October 31, 1999
- ----------------------------------------------------
Industry % of Investment Securities
- --------------------------------------------------------------------------------
Telecommunications 26.9%
Utilities 18.6%
Construction Materials 9.8%
Financial Services 7.0%
Food/Beverage Products 6.7%
Retailing 6.5%
Broadcasting/Cable 5.5%
Diversified 5.0%
Metals/Mining 3.7%
Real Estate 3.3%
Automotive 2.9%
Telecommunications Equipment 2.1%
Other 2.0%
- --------------------------------------------------------------------------------
Total 100.0%
</TABLE>
Index:
* -- Non-income producing security.
@ -- All or a portion of this security is segregated for forward foreign
currency contracts.
ADR -- American Depositary Receipt.
GDR -- Global Depositary Receipt.
See notes to financial statements.
32
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
European Southeast
Fund Asian Fund Japan Fund
<S> <C> <C> <C>
ASSETS:
Investment securities, at value (Note 1) ..... $57,420,189 $6,799,237 $5,057,807
Cash (a) ..................................... 1,103,733 1,102,207 399,038
Foreign Currency (a) ......................... 1,389,279 528,569 25,316
Other assets ................................. 486 65 39
Receivables:
Variation margin on futures contracts ....... -- 15,316 --
Open forward currency contracts ............. -- 10,246 --
Investment securities sold .................. 2,352,736 -- 57,025
Interest and dividends ...................... 98,046 11,887 22,611
Fund shares sold ............................ 217,207 16,507 --
Expense reimbursement from Distributor ...... -- 9,987 13,656
- --------------------------------------------------------------------------------------------
Total Assets .............................. 62,581,676 8,494,021 5,575,492
- --------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased ............. 3,112,206 90,893 121,001
Fund shares redeemed ........................ 71,934 41,445 72,425
Open forward currency contracts ............. -- 3,368 --
Accrued liabilities: (Note 2)
Investment advisory fees .................... 32,003 -- --
Administration fees ......................... 7,385 -- --
Shareholder servicing fees .................. 2,402 -- --
Distribution fees ........................... 17,111 2,002 655
Custody fees ................................ 28,871 18,199 5,405
Other ....................................... 52,865 37,744 27,485
- --------------------------------------------------------------------------------------------
Total Liabilities ......................... 3,324,777 193,651 226,971
- --------------------------------------------------------------------------------------------
NET ASSETS:
Paid in capital .............................. 51,996,902 11,759,336 5,635,445
Accumulated undistributed net
investment income (loss) ..................... (1,871) 91,707 (14,082)
Accumulated undistributed net realized
gain (loss) on investments, futures and
foreign exchange transactions ................ 1,261,270 (3,784,523) (1,347,042)
Net unrealized appreciation of investments,
futures contracts and foreign exchange
transactions ................................. 6,000,598 233,850 1,074,200
- --------------------------------------------------------------------------------------------
Total Net Assets ........................... $59,256,899 $8,300,370 $5,348,521
- --------------------------------------------------------------------------------------------
Shares of beneficial interest outstanding
($.001 par value; unlimited number of shares
authorized):
Class A Shares ............................... 2,889,835 580,331 432,678
Class B Shares ............................... 620,088 372,278 112,832
Class C Shares ............................... 90,097 -- --
Net Asset Value:
Class A Shares (and redemption price) ........ $ 16.52 $ 8.79 $ 9.84
Class B Shares* .............................. $ 16.18 $ 8.56 $ 9.65
Class C Shares* .............................. $ 16.19 -- --
Class A Maximum Public Offering Price Per
Share (net asset value per share/94.25%) ....... $ 17.53 $ 9.33 $ 10.44
- --------------------------------------------------------------------------------------------
Cost of investments ............................ $51,414,315 $6,587,388 $3,983,422
- --------------------------------------------------------------------------------------------
Cost of foreign currency ....................... $ 1,397,871 $ 528,761 $ 25,211
- --------------------------------------------------------------------------------------------
</TABLE>
* Redemption price may be reduced by contingent deferred sales charge.
(a) Includes cash or foreign currency segregated for open futures contracts.
See notes to financial statements.
33
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES October 31, 1999
<TABLE>
<CAPTION>
Latin American International
Equity Fund Equity Fund
<S> <C> <C>
ASSETS:
Investment securities, at value (Note 1) .................. $4,610,050 $32,567,796
Cash (a) .................................................. 20,402 --
Other assets .............................................. 42 112
Receivables:
Interest and dividends ................................... 23,557 --
Fund shares sold ......................................... -- 1,390,008
Expense reimbursement from Distributor ................... 9,850 --
- ---------------------------------------------------------------------------------------------
Total Assets ........................................... 4,663,901 33,957,916
- ---------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Fund shares redeemed ..................................... 1,159 21,026
Accrued liabilities: (Note 2)
Shareholder servicing fees ............................... -- 4,703
Distribution fees ........................................ 35 3,907
Custody fees ............................................. 3,044 --
Other .................................................... 25,695 96,927
- ---------------------------------------------------------------------------------------------
Total Liabilities ...................................... 29,933 126,563
- ---------------------------------------------------------------------------------------------
NET ASSETS:
Paid in capital ........................................... $7,592,371 $28,174,414
Accumulated undistributed net investment income (loss)..... (237) 40,617
Accumulated net realized gain (loss) on investments,
futures and foreign exchange transactions ................. (2,949,044) 1,762,457
Net unrealized appreciation (depreciation) of
investments, futures contracts and foreign exchange
transactions .............................................. (9,122) 3,853,865
- ---------------------------------------------------------------------------------------------
Total Net Assets ........................................ $4,633,968 $33,831,353
- ---------------------------------------------------------------------------------------------
Shares of beneficial interest outstanding ($.001 par value;
unlimited number of shares authorized):
Class A Shares ............................................ 779,180 1,958,172
Class B Shares ............................................ 9,405 507,674
Class C Shares ............................................ -- --
Net Asset Value:
Class A Shares (and redemption price) ..................... $ 5.88 $ 13.77
Class B Shares* ........................................... $ 5.84 $ 13.51
Class C Shares* ........................................... -- --
Class A Maximum Public Offering Price Per Share
(net asset value per share/94.25%) .......................... $ 6.24 $ 14.61
- ---------------------------------------------------------------------------------------------
Cost of investments ......................................... $4,614,996 $ --
- ---------------------------------------------------------------------------------------------
</TABLE>
*Redemption price may be reduced by contingent deferred sales charge.
(a) Includes cash or foreign currency segregated for open futures contracts.
See notes to financial statements.
34
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the year ended October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
European Southeast Japan
Fund Asian Fund Fund
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend ......................................... $ 780,593 $ 87,988 $ 25,814
Interest ......................................... 67,444 26,890 7,914
Foreign taxes withheld ........................... (93,022) (2,681) (3,872)
- ----------------------------------------------------------------------------------------------
Total investment income ........................ 755,015 112,197 29,856
- ----------------------------------------------------------------------------------------------
EXPENSES: (Note 2)
Investment advisory fees ......................... 555,370 60,365 35,137
Administration fees .............................. 83,305 9,055 5,270
Shareholder servicing fees ....................... 29,162 3,357 1,618
Distribution fees ................................ 197,167 21,805 11,965
Custodian fees ................................... 103,845 82,063 42,313
Printing and postage ............................. 43,146 5,068 --
Professional fees ................................ 35,381 15,081 20,405
Registration expenses ............................ 28,821 26,495 24,515
Transfer agent fees .............................. 158,627 70,482 47,993
Trustees' fees and expenses ...................... 2,777 302 175
Other ............................................ -- 11,452 6,661
- ----------------------------------------------------------------------------------------------
Total expenses ................................. 1,237,601 305,525 196,052
- ----------------------------------------------------------------------------------------------
Less amounts waived (Note 2E) .................... 178,633 84,510 49,443
Less expense reimbursements ...................... -- 105,313 80,655
- ----------------------------------------------------------------------------------------------
Net expenses .................................... 1,058,968 115,702 65,954
- ----------------------------------------------------------------------------------------------
Net investment loss ............................ (303,953) (3,505) (36,098)
- ----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on:
Investments ..................................... 1,939,685 1,532,418 610,276
Futures transactions ............................ 1,801 106,058 53,397
Foreign exchange transactions ................... (205,028) 123,006 (28,822)
Change in net unrealized appreciation/
depreciation of:
Investments ..................................... 5,738,176 72,398 993,118
Futures contracts ............................... -- (8,510) (4,763)
Foreign exchange transactions ................... 13,600 (5,742) (3,050)
- ----------------------------------------------------------------------------------------------
Net realized and unrealized gain ................... 7,488,234 1,819,628 1,620,156
- ----------------------------------------------------------------------------------------------
Net increase in net assets from operations ......... $7,184,281 $1,816,123 $1,584,058
</TABLE>
See notes to financial statements.
35
<PAGE>
STATEMENT OF OPERATIONS For the year ended October 31, 1999
<TABLE>
<CAPTION>
Latin American International
Equity Fund Equity Fund
<S> <C> <C>
INVESTMENT INCOME:
Dividend ............................................. $ 184,888 $ --
Interest ............................................. 11,617 --
Investment income from Portfolio ..................... -- 375,899
Foreign taxes withheld ............................... (12,993) (40,654)
Expenses from Portfolio after fee waivers ............ -- (192,017)
- ---------------------------------------------------------------------------------------
Total investment income ............................ 183,512 143,228
- ---------------------------------------------------------------------------------------
EXPENSES: (Note 2)
Investment advisory fees ............................. 54,445 --
Administration fees .................................. 8,167 26,352
Shareholder servicing fees ........................... 13,612 65,878
Distribution fees .................................... 13,924 101,735
Accounting fees ...................................... -- 59,834
Custodian fees ....................................... 62,218 --
Printing and postage ................................. 7,373 55,206
Professional fees .................................... 19,394 10,974
Registration expenses ................................ 25,042 27,369
Transfer agent fees .................................. 40,540 151,141
Trustees' fees and expenses .......................... 272 790
Other ................................................ 6,726 998
- ---------------------------------------------------------------------------------------
Total expenses ..................................... 251,713 500,277
- ---------------------------------------------------------------------------------------
Less amounts waived (Note 2E) ........................ 89,680 92,230
Less expense reimbursements .......................... 66,357 36,380
- ---------------------------------------------------------------------------------------
Net expenses ........................................ 95,676 371,667
- ---------------------------------------------------------------------------------------
Net investment income (loss) ....................... 87,836 (228,439)
- ---------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss) on:
Investments ......................................... (868,679) 2,153,146
Futures transactions ................................ -- 62,118
Foreign exchange transactions ....................... (100,000) (145,388)
Change in net unrealized appreciation/depreciation of:
Investments ......................................... 1,259,812 2,887,054
Foreign exchange transactions ....................... (3,760) --
- ---------------------------------------------------------------------------------------
Net realized and unrealized gain ....................... 287,373 4,956,930
- ---------------------------------------------------------------------------------------
Net increase in net assets from operations ............. $ 375,209 $4,728,491
- ---------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
36
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated
<TABLE>
<CAPTION>
European Fund
------------------------------
Year Ended
------------------------------
<S> <C> <C>
10/31/99 10/31/98
- ------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS:
Net investment income (loss) ......................... $ (303,953) $ (63,427)
Net realized gain (loss) on investments, futures
and foreign exchange transactions .................... 1,736,458 507,094
Change in unrealized appreciation/depreciation
of investments, futures contracts and foreign
exchange transactions ................................ 5,751,776 (512,211)
- ------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations ......................................... 7,184,281 (68,544)
- ------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
(Note 1)
Net investment income ................................ (251,426) (270,343)
Net realized gain on investment transactions ......... (363,917) (1,883,844)
Tax return of capital ................................ -- --
- ------------------------------------------------------------------------------------
Total distributions to shareholders ................ (615,343) (2,154,187)
- ------------------------------------------------------------------------------------
Increase (decrease) from capital share transactions#. 9,487,635 30,240,238
- ------------------------------------------------------------------------------------
Total increase (decrease) in net assets ............ 16,056,573 28,017,507
NET ASSETS:
Beginning of period .................................. 43,200,326 15,182,819
- ------------------------------------------------------------------------------------
End of period ........................................ $59,256,899 $43,200,326
- ------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Southeast Asian Fund Japan Fund
------------------------------ -----------------------------
Year Ended Year Ended
------------------------------ -----------------------------
<S> <C> <C> <C> <C>
10/31/99 10/31/98 10/31/99 10/31/98
- -----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS:
Net investment income (loss) ......................... $ (3,505) $ 34,147 $ (36,098) $ (26,325)
Net realized gain (loss) on investments, futures
and foreign exchange transactions .................... 1,761,482 (4,334,222) 634,851 (1,738,411)
Change in unrealized appreciation/depreciation
of investments, futures contracts and foreign
exchange transactions ................................ 58,146 2,604,641 985,305 476,872
- -----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations ......................................... 1,816,123 (1,695,434) 1,584,058 (1,287,864)
- -----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
(Note 1)
Net investment income ................................ -- -- -- (187,298)
Net realized gain on investment transactions ......... -- -- -- --
Tax return of capital ................................ -- (36,196) -- (98,133)
- -----------------------------------------------------------------------------------------------------------------
Total distributions to shareholders ................ -- (36,196) -- (285,431)
- -----------------------------------------------------------------------------------------------------------------
Increase (decrease) from capital share transactions#. 2,579,265 (1,981,050) 1,603,523 (3,166,483)
- -----------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ............ 4,395,388 (3,712,680) 3,187,581 (4,739,778)
NET ASSETS:
Beginning of period .................................. 3,904,982 7,617,662 2,160,940 6,900,718
- -----------------------------------------------------------------------------------------------------------------
End of period ........................................ $8,300,370 $3,904,982 $5,348,521 $2,160,940
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
*Commencement of operations.
#See detailed Capital Share Transactions.
See notes to financial statements.
37
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated
<TABLE>
<CAPTION>
Latin American Equity Fund International Equity Fund
------------------------------- -----------------------------
Year 12/01/97* Year Ended
Ended Through -----------------------------
10/31/99 10/31/98 10/31/99 10/31/98
--------------- --------------- -------------- --------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income (loss) ................................ $ 87,836 $ 166,000 $ (228,439) $ (166,656)
Net realized gain (loss) on investments, futures and foreign
exchange transactions ....................................... (968,679) (2,131,286) 2,069,876 1,109,481
Change in unrealized appreciation/depreciation of
investments, futures contracts and foreign exchange
transactions ................................................ 1,256,052 (1,265,174) 2,887,054 431,677
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations ......... 375,209 (3,230,460) 4,728,491 1,374,502
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1)
Net investment income ....................................... -- (115,165) -- (123,572)
Net realized gain on investment transactions ................ -- -- (1,077,930) (678,827)
Tax return of capital ....................................... (37,347) (27,259) -- --
- -----------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders ....................... (37,347) (142,424) (1,077,930) (802,399)
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from capital share transactions# ......... (2,048,127) 9,717,117 4,778,630 (6,425,985)
- -----------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ................... (1,710,265) 6,344,233 8,429,191 (5,853,882)
NET ASSETS:
Beginning of period ......................................... 6,344,233 -- 25,402,162 31,256,044
- -----------------------------------------------------------------------------------------------------------------------------
End of period ............................................... $4,633,968 $6,344,233 $33,831,353 $25,402,162
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Commencement of operations.
#See detailed Capital Share Transactions.
See notes to financial statements.
38
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA FUNDS EUROPEAN FUND
Capital Share Transactions
- --------------------------------------------------------------------------------
CHASE VISTA FUNDS EUROPEAN FUND
Capital Share Transactions
For the periods indicated
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999*
- ---------------------------------------------------------------------------------------------------------------------------------
Class A Class B Class C
Amount Shares Amount Shares Amount Shares
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold $ 35,569,006 2,251,966 $ 7,411,851 474,721 $1,725,302 111,256
- ---------------------------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions 218,038 13,910 81,769 5,314 428 28
- ---------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (27,100,315) (1,707,222) (8,088,735) (524,167) (329,709) (21,187)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in Trust shares outstanding $ 8,686,729 558,654 $ (595,115) (44,132) $1,396,021 90,097
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998
- ---------------------------------------------------------------------------------------------------------------------------------
Class A Class B
Amount Shares Amount Shares
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 24,838,015 1,566,625 $ 9,810,431 635,367
- ---------------------------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions 1,134,729 90,297 290,599 23,583
- ---------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (3,631,341) (245,168) (2,202,195) (153,965)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
Trust shares outstanding $ 22,341,403 1,411,754 $ 7,898,835 504,985
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*For Class C shares, from commencement of offering on November 1, 1998.
See notes to financial statements.
39
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA FUNDS SOUTHEAST ASIAN FUND
Capital Share Transactions
- --------------------------------------------------------------------------------
CHASE VISTA FUNDS SOUTHEAST ASIAN FUND
Capital Share Transactions
For the periods indicated
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999
- -----------------------------------------------------------------------------------------------------------------------------
Class A Class B
Amount Shares Amount Shares
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 2,520,666 326,295 $3,042,748 361,807
- -----------------------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment of distributions -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Shares redeemed (2,004,450) (253,510) (979,699) (126,074)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Trust shares outstanding $ 516,216 72,785 $2,063,049 235,733
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------
Class A Class B
Amount Shares Amount Shares
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 1,440,407 213,843 $ 972,858 138,436
- -----------------------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment of distributions 15,760 2,646 3,461 606
- -----------------------------------------------------------------------------------------------------------------------------
Shares redeemed (3,567,263) (522,912) (846,273) (134,677)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Trust shares outstanding $ (2,111,096) (306,423) $ 130,046 4,365
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
40
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA FUNDS JAPAN FUND
Capital Share Transactions
- --------------------------------------------------------------------------------
CHASE VISTA FUNDS JAPAN FUND
Capital Share Transactions
For the periods indicated
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999
- -----------------------------------------------------------------------------------------------------------------------------
Class A Class B
Amount Shares Amount Shares
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 3,535,327 428,187 $ 545,856 68,871
- -----------------------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment of distributions -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Shares redeemed (2,332,878) (271,810) (144,782) (17,872)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Trust shares outstanding $ 1,202,449 156,377 $ 401,074 50,999
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------
Class A Class B
Amount Shares Amount Shares
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 449,737 55,013 $ 245,921 30,693
- -----------------------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment of distributions 64,699 7,532 48,224 5,653
- -----------------------------------------------------------------------------------------------------------------------------
Shares redeemed (2,479,074) (312,499) (1,495,990) (175,456)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Trust shares outstanding $ (1,964,638) (249,954) $ (1,201,845) (139,110)
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
41
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA FUNDS LATIN AMERICAN EQUITY FUND
Capital Share Transactions
- --------------------------------------------------------------------------------
CHASE VISTA FUNDS LATIN AMERICAN EQUITY FUND
Capital Share Transactions
For the periods indicated
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999
- -----------------------------------------------------------------------------------------------------------------------------
Class A Class B
Amount Shares Amount Shares
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 612,114 103,276 $ 28,229 5,094
- -----------------------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment of distributions 990 180 171 31
- -----------------------------------------------------------------------------------------------------------------------------
Shares redeemed (2,670,916) (460,632) (18,715) (3,302)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Trust shares outstanding $ (2,057,812) (357,176) $ 9,685 1,823
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 1998*
- -----------------------------------------------------------------------------------------------------------------------------
Class A Class B
Amount Shares Amount Shares
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 10,976,012 1,333,183 $46,011 7,581
- -----------------------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment of distributions 21,263 2,684 61 8
- -----------------------------------------------------------------------------------------------------------------------------
Shares redeemed (1,326,180) (199,511) (50) (7)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Trust shares outstanding $ 9,671,095 1,136,356 $46,022 7,582
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
*For Class A shares, from commencement of operations on December 1,
1997. For Class B shares, from commencement of offering
on March 24, 1998.
See notes to financial statements.
42
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA FUNDS INTERNATIONAL EQUITY FUND
Capital Share Transactions
- --------------------------------------------------------------------------------
CHASE VISTA FUNDS INTERNATIONAL EQUITY FUND
Capital Share Transactions
For the periods indicated
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999
- -----------------------------------------------------------------------------------------------------------------------------
Class A Class B
Amount Shares Amount Shares
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 41,065,896 3,215,748 $ 6,951,949 561,207
- -----------------------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment of distributions 646,590 52,060 292,986 23,956
- -----------------------------------------------------------------------------------------------------------------------------
Shares redeemed (35,456,364) (2,796,866) (8,722,427) (701,350)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Trust shares outstanding $ 6,256,122 470,942 $ (1,477,492) (116,187)
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------
Class A Class B
Amount Shares Amount Shares
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 22,214,113 1,760,489 $ 7,895,936 635,787
- -----------------------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment of distributions 477,098 41,144 181,139 15,881
- -----------------------------------------------------------------------------------------------------------------------------
Shares redeemed (28,433,278) (2,235,592) (8,760,993) (696,779)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Trust shares outstanding $ (5,742,067) (433,959) $ (683,918) (45,111)
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
43
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Mutual Fund Group (the "Trust") was organized on May 11, 1987 as a
Massachusetts Business Trust, and is registered under the Investment Company
Act of 1940, as amended, (the "1940 Act") as an open-end management investment
company. European Fund ("EF"), Southeast Asian Fund ("SEAF"), Japan Fund
("JF"), Latin American Equity Fund ("LAEF") and International Equity Fund
("IEF"), collectively, the "Funds", are five separate series of the Trust. The
Funds (except for EF) each offer two classes of shares. EF 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. IEF
Since inception, IEF has utilized the Master Feeder Fund Structure. IEF
seeks to achieve its investment objective by investing all of its
investable assets in the International Equity Portfolio (the "Portfolio").
The Portfolio, like the Fund, is an open-end management investment company
having the same investment objectives as the Fund. As of October 31, 1999,
IEF 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 -- IEF records its investment 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 -- IEF 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.
44
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
B. EF, SEAF, JF and LAEF
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 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 each 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.
45
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
Index futures contracts are used to control the asset mix of the portfolios
in the most efficient manner, allowing the Funds to adjust country
exposures while incurring minimal transaction costs. Short index futures
contracts are used for hedging purposes, i.e. to reduce the exposure to
equities. Long index futures contracts are used to gain exposure to
equities, when it is anticipated that this will be more efficient than
buying stocks directly. Use of long futures contracts subjects the Fund to
risk of loss up to the amount of the nominal value of the futures contracts
as shown in the Portfolio of Investments. Use of short futures contracts
subject the Fund to unlimited risk.
The Funds held open futures contracts as of October 31, 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.
As of October 31, 1999, there were no outstanding written options.
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.
46
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
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.
At October 31, 1999, the Funds had outstanding forward foreign currency
contracts as detailed in Note 5.
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 commitment fee is included in Other expenses on
the Statement of Operations. Borrowings are payable on demand.
The Funds had no borrowings outstanding at October 31, 1999 nor at any
time during the year.
47
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
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.
The following amounts were reclassified within the capital accounts:
<TABLE>
<CAPTION>
Accumulated
undistributed/ Accumulated
(overdistributed) net realized
Paid-in net investment gain (loss)
capital income on investments
<S> <C> <C> <C>
- -------------------------------------------------------------------------
EF .............. $ 486 $ 346,648 $(347,134)
SEAF ............ 140 134,168 (134,308)
JF .............. (23,845) 6,581 17,264
LAEF ............ (49,360) (50,640) 100,000
IEF ............. 532 224,059 (224,591)
- -------------------------------------------------------------------------
</TABLE>
The reclassifications for EF, JF and IEF primarily relate to the
character for tax purposes of current year net operating losses and
foreign currency losses. The reclassifications for SEAF primarily relate
to the character for tax purposes of foreign currency gains. The
reclassifications for LEAF primarily relate to the character for tax
purposes of current year distributions and foreign currency losses.
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. Expenses directly attributable to a
particular share class are charged directly to that class. 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
48
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
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 EF, SEAF, JF, and LAEF. 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 IEF
and LAEF, and Class C of EF, 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 LAEF and IEF. No
Shareholder Servicing Fees have been charged to Class A Shares of EF, SEAF
and JF. 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.
("BISYS"), is 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, B and C 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 Distribu-
49
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
tion Plans provides that each Fund shall pay distribution fees, including
payments to the Distributor, at an annual rate not to exceed 0.75% of the
average annual net assets of the Class B and Class C Shares for
distribution services.
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 a fee
from EF, SEAF, JF, and LAEF computed at the annual rate equal to 0.10% of
the respective Fund's average daily net assets, and a fee from IEF at the
annual rate equal to 0.05% of the Fund's average daily net assets. The
Administrator voluntarily waived all or a portion of the administration
fees as outlined in Note 2.E. below.
E. Waivers of fees -- For the year ended October 31, 1999, the Investment
Adviser, Administrator, Shareholder Servicing Agents and Distributor
voluntarily waived fees for each of the Funds as follows:
<TABLE>
<CAPTION>
Fee Waivers EF SEAF JF LAEF IEF
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------
Investment Advisory ............ $178,633 $60,365 $35,137 $54,445 $ --
Administration ................. -- 9,055 5,270 8,167 26,352
Shareholder Servicing .......... -- 3,357 1,618 13,612 17,928
Distribution ................... -- 11,733 7,418 13,456 47,950
-------- ------- ------- ------- -------
Total ........................ $178,633 $84,510 $49,443 $89,680 $92,230
======== ======= ======= ======= =======
</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 EF, SEAF, JF,
and LAEF. Compensation for such services is presented in the Statement of
Operations as custodian fees.
The Distributor voluntarily reimbursed certain expenses of the Funds in the
amounts as shown on the Statement of Operations.
EF, SEAF and JF earned approximately $38,346, $25,169 and $7,914,
respectively, in interest income on deposits placed with an affiliate of
Chase. At October 31, 1999, receivables related to these deposits were
$5,181, $1,490 and $12,050 for EF, SEAF and JF, respectively. These amounts
have been included in the receivable for interest and dividends on the
Statement of Assets and Liabilities.
3. Investment Transactions
For the year ended October 31, 1999, purchases and sales of investments
(excluding short-term investments) were as follows:
<TABLE>
<CAPTION>
EF SEAF JF LAEF
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
Purchases (excluding U.S. Government)...... $90,508,043 $16,157,577 $5,699,049 $4,121,118
Sales (excluding U.S. Government) ......... 79,035,338 11,871,469 4,090,189 5,188,743
</TABLE>
50
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
4. Federal Income Tax Matters
For Federal income tax purposes, the cost and unrealized appreciation
(depreciation) in value of the investment securities at October 31, 1999, are
as follows:
<TABLE>
<CAPTION>
EF SEAF JF LAEF
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aggregate cost ......................... $51,537,069 $6,783,575 $3,997,120 $4,692,933
----------- ---------- ---------- ----------
Gross unrealized appreciation.......... $7,933,905 $ 493,383 $1,150,148 $ 459,425
Gross unrealized depreciation.......... (2,050,785) (477,721) (89,461) (542,308)
----------- ---------- ---------- ----------
Net unrealized appreciation/
(depreciation) ........................ $5,883,120 $ 15,662 $1,060,687 $ (82,883)
=========== ========== ========== ==========
</TABLE>
At October 31, 1999, SEAF had a net capital loss carryover of approximately
$3,686,441, which will be available to offset capital gains arising through
October 31, 2005 and 2006. JF had a net capital loss carryover of approximately
$1,347,042, which will be available to offset capital gains arising through
October 31, 2006. LAEF had a net capital loss carryover of approximately
$2,871,107, which will be available to offset capital gains arising through
October 31, 2006 and 2007. To the extent that any net capital loss carryovers
are used to offset future capital gains, it is probable that the gains so
offset will not be distributed to shareholders.
5. Open Forward Foreign Currency Contracts
The following forward foreign currency contracts were open at October 31, 1999:
<TABLE>
<CAPTION>
SEAF
- ----------------------------------------------------------------------
Contract Unrealized
Amount Contract Amount Settlement Gain/(Loss)
Purchased Sold Date (USD)
- ----------------------------------------------------------------------
<S> <C> <C> <C>
Unrealized Gain
---------------
600,000 USD 925,455 AUD 11/30/99 $ 10,246
========
Unrealized Loss
---------------
2,500,000 USD 19,454,500 HKD 11/19/99 $ (2,938)
55,705 USD 93,000 SGD 11/01/99 (189)
30,044 USD 1,169,000 THB 11/01/99 (241)
--------
$ (3,368)
========
</TABLE>
- ------------
AUD--Australian Dollar
HKD--Hong Kong Dollar
SGD--Singapore Dollar
THB--Thailand Bhat
USD--U.S. Dollar
51
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
6. Foreign Cash Positions
<TABLE>
<CAPTION>
EF
- ----------------------------------------------------------------------------------
Market Net Unrealized
Local Cost Value (Loss)
Currency Currency (USD) (USD) (USD)
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
British Pound Sterling 797,959 $1,317,727 $1,309,474 $(8,253)
EURO 74,994 79,157 78,822 (335)
German Deutsche Mark 101 -- -- --
Swedish Krona 49 6 6 --
Swiss Franc 1,489 981 977 (4)
---------- ---------- ----------
$1,397,871 $1,389,279 $(8,592)
========== ========== =========
</TABLE>
<TABLE>
<CAPTION>
SEAF
- --------------------------------------------------------------------------------
Market Net Unrealized
Local Cost Value Gain (Loss)
Currency Currency (USD) (USD) (USD)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Australian Dollar 188,096 $121,581 $119,862 $ (1,719)
Hong Kong Dollar 1,240,466 159,776 159,658 (118)
Indonesian Rupiah 579,146 71 85 14
New Zealand Dollar 812 438 411 (27)
Philippine Peso 2,548,310 63,595 63,469 (126)
Singapore Dollar 93,300 56,415 56,075 (340)
Taiwan Dollars 3,132,947 97,716 98,706 990
Thai Baht 1,169,732 29,169 30,303 1,134
-------- -------- --------
$528,761 $528,569 $ (192)
======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
JF
- --------------------------------------------------------------------------------
Net
Market Unrealized
Local Cost Value Gain
Currency Currency (USD) (USD) (USD)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Japanese Yen 2,641,935 $25,211 $25,316 $ 105
========= ========= ===========
</TABLE>
7. Options
The following is a summary of written option activity for the year ended
October 31, 1999 by SEAF:
<TABLE>
<CAPTION>
Shares
Subject to
Covered Call Options Contract Premiums
- --------------------------------------------------------------------------------
<S> <C> <C>
Balance at beginning of period ............... -- $ --
Options written .............................. 4 5,258
Options closed ............................... -- --
Options expired .............................. (4) (5,258)
Options excercised ........................... -- --
---- --------
Options outstanding at end of period ......... -- $ --
</TABLE>
52
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
8. Concentrations
At October 31, 1999, substantially all of the Funds' net assets consist of
securities of issuers which are denominated in foreign currencies. Changes in
currency exchange rates will affect the value of and investment income from
such securities.
As of October 31, 1999 EF invested approximately 28.6% of its net assets in
issuers in the United Kingdom; SEAF invested approximately 20.1% of its net
assets in issuers in Hong Kong; LAEF invested approximately 42.1% and 41.2%,
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 SEAF, JF and LAEF net assets consist of securities which are
subject to greater price volatility, limited capitalization and liquidity, and
higher rates of inflation than securities of companies based in the United
States. In addition, certain securities may be subject to substantial
governmental involvement in the economy and social, economic and political
uncertainty.
9. Retirement Plans
The Funds have adopted an unfunded noncontributory defined benefit pension plan
covering all independent trustees of the Funds who will have served as
independent trustees for at least five years at the time of retirement.
Benefits under this plan are based on compensation and years of service.
Pension expenses for the year ended October 31, 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
Fund: Expenses Liability
- --------------------------------------------------------------
<S> <C> <C>
EF ........... $ 878 $1,871
SEAF.......... 77 669
JF ........... 43 384
LAEF ......... 108 237
IEF .......... 238 1,228
</TABLE>
53
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Vista European Fund
-----------------------------------------------------
Class A
----------------------------------------------------
Year Ended 11/02/95*
------------------------------------ Through
10/31/99 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 .......................... (0.06)@ 0.15 0.05 0.15
Net gains or losses in securities
(both realized and unrealized) ................. 2.31 2.16 3.01 1.93
---------- --------- --------- ----------
Total from investment operations .............. 2.25 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 .................. $ 16.52 $ 14.47 $ 14.10 $ 11.99
========== ========= ========= ==========
Total return (1) ................................ 15.60% 18.71% 28.19% 20.78%
Ratios/supplemental data:
Net assets, end of period (000 omitted) ........ $ 47,759 $ 33,743 $ 12,965 $ 6,358
Ratios to average net assets #:
Expenses ....................................... 1.74% 1.74% 1.75% 1.75%
Net investment income .......................... (0.40%) (0.07%) 0.32% 1.44%
Expenses without waivers and reimbursements .... 2.06% 2.38% 2.84% 3.49%
Net investment income without waivers and
reimbursements ................................. (0.72%) (0.71%) (0.77%) (0.30%)
Portfolio turnover rate ......................... 149% 183% 170% 186%
- -----------------------------------------------------------------------------------------------------
<CAPTION>
Class B Class C
---------------------------------------------------- -----------
Year Ended 11/03/95** 11/01/98**
-------------------------------------- Through Through
10/31/99 10/31/98 10/31/97 10/31/96 10/31/99
---------- -------- -------- --------- --------
<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 .......................... (0.18)@ 0.08 0.04 0.07 (0.08)@
Net gains or losses in securities
(both realized and unrealized) ................. 2.26 2.10 2.89 1.96 2.17
---------- --------- --------- ----------- --------
Total from investment operations .............. 2.08 2.18 2.93 2.03 2.09
---------- --------- --------- ----------- --------
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 .................. $ 16.18 $ 14.24 $ 13.93 $ 11.93 $ 16.19
========== ========= ========= =========== ========
Total return (1) ................................ 14.66% 17.89% 27.25% 20.35% 14.73%
Ratios/supplemental data:
Net assets, end of period (000 omitted) ........ $ 10,038 $ 9,457 $ 2,218 $ 190 $1,460
Ratios to average net assets #:
Expenses ....................................... 2.51% 2.50% 2.51% 2.47% 2.51%
Net investment income .......................... (1.12%) (0.75%) (0.30%) 0.80% (0.61%)
Expenses without waivers and reimbursements .... 2.83% 2.91% 3.58% 3.83% 2.83%
Net investment income without waivers and
reimbursements ................................. (1.44%) (1.16%) (1.37%) (0.56%) (0.93%)
Portfolio turnover rate ......................... 149% 183% 170% 186% 149%
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of operations.
** Commencement of offering of class of shares.
@ Calculated based on average shares outstanding.
(1) Total return figures do not include the effect of any sales load.
# Short periods have been annualized.
See notes to financial statements.
54
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Southeast Asian Fund
-------------------------------------
Class A
-------------------------------------
Year Ended
-------------------------------------
10/31/99 10/31/98 10/31/97
---------- -------- --------
<S> <C> <C> <C>
Net asset value, beginning of period ................. $ 6.09 $ 8.07 $ 11.97
---------- --------- ---------
Income from investment operations:
Net investment income ............................... 0.01 0.06 0.07
Net gains or losses in securities
(both realized and unrealized) ...................... 2.69 (1.99) (3.31)
---------- --------- ---------
Total from investment operations ................... 2.70 (1.93) (3.24)
---------- --------- ---------
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 ....................... $ 8.79 $ 6.09 $ 8.07
========== ========= =========
Total return (1) ..................................... 44.33% (23.85%) (28.86%)
Ratios/supplemental data:
Net assets, end of period (000 omitted) ............. $ 5,108 $ 3,089 $ 6,566
Ratios to average net assets #:
Expenses ............................................ 1.74% 1.76% 1.75%
Net investment income ............................... 0.17% 0.82% 0.42%
Expenses without waivers and reimbursements ......... 4.87% 4.01% 2.84%
Net investment income without waivers and
reimbursements ...................................... (2.96%) (1.43%) (0.67%)
Portfolio turnover rate .............................. 248% 316% 234%
<CAPTION>
Class B
--------------------------------------------------------------------
11/02/95* Year Ended 11/03/95**
Through -------------------------------------- Through
10/31/96 10/31/99 10/31/98 10/31/97 10/31/96
--------- ---------- -------- -------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................. $ 10.00 $ 5.98 $ 7.95 $ 11.89 $ 10.01
---------- ---------- --------- --------- -----------
Income from investment operations:
Net investment income ............................... (0.01) (0.01) (0.01) 0.03 (0.06)
Net gains or losses in securities
(both realized and unrealized) ...................... 1.98 2.59 (1.93) (3.32) 1.94
---------- ---------- --------- --------- -----------
Total from investment operations ................... 1.97 2.58 (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 ....................... $ 11.97 $ 8.56 $ 5.98 $ 7.95 $ 11.89
========== ========== ========= ========= ===========
Total return (1) ..................................... 19.70% 43.14% (24.45%) (29.48%) 18.78%
Ratios/supplemental data:
Net assets, end of period (000 omitted) ............. $ 8,451 $ 3,192 $ 816 $ 1,051 $ 1,222
Ratios to average net assets #:
Expenses ............................................ 1.74% 2.48% 2.51% 2.50% 2.52%
Net investment income ............................... (0.12%) (0.87%) (0.16%) (0.23%) (0.90%)
Expenses without waivers and reimbursements ......... 3.26% 5.60% 4.77% 3.60% 3.70%
Net investment income without waivers and
reimbursements ...................................... (1.64%) (3.99%) (2.42%) (1.33%) (2.08%)
Portfolio turnover rate .............................. 149% 248% 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.
55
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Japan Fund
-----------------------------------------------------
Class A
----------------------------------------------------
Year Ended 11/02/95*
-------------------------------------- Through
10/31/99 10/31/98 10/31/97 10/31/96
---------- -------- -------- ---------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ................. $ 6.41 $ 9.52 $ 9.42 $ 10.00
---------- --------- --------- ----------
Income from investment operations:
Net investment income ............................... (0.07)@ 0.27 0.08 (0.08)
Net gains or losses in securities
(both realized and unrealized) ...................... 3.50 (2.91) 0.24 (0.50)
---------- --------- --------- ----------
Total from investment operations ................... 3.43 (2.64) 0.32 (0.58)
---------- --------- --------- ----------
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 ....................... $ 9.84 $ 6.41 $ 9.52 $ 9.42
========== ========= ========= ==========
Total return (1) ..................................... 53.51% (28.98%) 3.49% ( 5.80%)
Ratios/supplemental data:
Net assets, end of period (000 omitted) ............. $ 4,260 $ 1,770 $ 5,008 $ 4,781
Ratios to average net assets #:
Expenses ............................................ 1.74% 1.76% 1.75% 1.75%
Net investment income ............................... (0.88%) (0.56%) (0.30%) (0.91%)
Expenses without waivers and reimbursements ......... 5.44% 3.79% 2.89% 3.60%
Net investment income without waivers and
reimbursements ...................................... (4.58%) (2.59%) (1.44%) (2.76%)
Portfolio turnover rate .............................. 133% 212% 217% 121%
- ----------------------------------------------------------------------------------------------------------
<CAPTION>
Class B
------------------------------------------------------
Year Ended 11/03/95**
-------------------------------------- Through
10/31/99 10/31/98 10/31/97 10/31/96
---------- -------- -------- ---------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ................. $ 6.32 $ 9.42 $ 9.35 $ 10.00
---------- --------- --------- -----------
Income from investment operations:
Net investment income ............................... (0.13)@ 0.23 (0.05) (0.02)
Net gains or losses in securities
(both realized and unrealized) ...................... 3.46 (2.90) 0.30 (0.63)
---------- --------- --------- -----------
Total from investment operations ................... 3.33 (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 ....................... $ 9.65 $ 6.32 $ 9.42 $ 9.35
========== ========= ========= ===========
Total return (1) ..................................... 52.69% (29.53%) 2.72% ( 6.50%)
Ratios/supplemental data:
Net assets, end of period (000 omitted) ............. $ 1,089 $ 391 $ 1,893 $ 162
Ratios to average net assets #:
Expenses ............................................ 2.49% 2.51% 2.51% 2.52%
Net investment income ............................... (1.67%) (0.97%) (5.73%) (0.40%)
Expenses without waivers and reimbursements ......... 6.19% 4.52% 3.66% 4.00%
Net investment income without waivers and
reimbursements ...................................... (5.37%) (2.98%) (6.88%) (1.88%)
Portfolio turnover rate .............................. 133% 212% 217% 121%
- -----------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of operations.
** Commencement of offering of class of shares.
@ Calculated based on average shares outstanding.
(1) Total return figures do not include the effect of any sales load.
# Short periods have been annualized.
See notes to financial statements.
56
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Latin American Equity Fund
-------------------------------------------------------
Class A Class B
-------------------------- ----------------------------
Year 12/01/97* Year 03/24/98**
Ended Through Ended Through
10/31/99 10/31/98 10/31/99 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 ................................................. 0.10 0.18 0.04 0.14
Net gains or losses in securities (both realized and unrealized) ...... 0.26 (4.47) 0.29 (4.63)
-------- -------- -------- --------
Total from investment operations ..................................... 0.36 (4.29) 0.33 (4.49)
-------- -------- -------- --------
Distributions to shareholders from:
Dividends from net investment income .................................. -- 0.14 -- 0.13
Distributions from capital gains ...................................... -- -- -- --
Tax return of capital ................................................. 0.03 0.02 0.02 0.02
-------- -------- -------- --------
Total dividends and distributions .................................... 0.03 0.16 0.02 0.15
-------- -------- -------- --------
Net asset value, end of period ......................................... $ 5.88 $ 5.55 $ 5.84 $ 5.53
======== ======== ======== ========
Total return (1) ....................................................... 6.58% (43.34%) 5.99% (44.59%)
Ratios/supplemental data:
Net assets, end of period (000 omitted) ............................... $4,579 $ 6,302 $ 55 $ 42
Ratios to average net assets #:
Expenses .............................................................. 1.74% 1.75% 2.50% 2.53%
Net investment income ................................................. 1.62% 2.78% 0.54% (0.21%)
Expenses without waivers and reimbursements ........................... 4.60% 3.80% 5.36% 4.35%
Net investment income without waivers and reimbursements .............. (1.24%) 0.73% (2.32%) (2.03%)
Portfolio turnover rate ................................................ 80% 90% 80% 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.
57
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
International Equity Fund
----------------------------------------------------
Class A
---------------------------------------------------
Year Ended
---------------------------------------------------
10/31/99 10/31/98 10/31/97 10/31/96
---------- -------- -------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 12.08 $ 12.11 $ 12.38 $ 12.02
---------- --------- --------- ---------
Income from investment operations:
Net investment income ....................... (0.09) (0.09) (0.05)@ 0.05
Net gains or losses in securities
(both realized and unrealized) ............. 2.34 0.43 0.33 0.37
---------- --------- --------- ---------
Total from investment operations ........... 2.25 0.34 0.28 0.42
---------- --------- --------- ---------
Distributions to shareholders from:
Dividends from net Investment income ........ -- 0.07 0.03 0.06
Distributions from capital gains ............ 0.56 0.30 0.52 --
---------- --------- --------- ---------
Total dividends and distributions .......... 0.56 0.37 0.55 0.06
---------- --------- --------- ---------
Net asset value, end of period ............... $ 13.77 $ 12.08 $ 12.11 $ 12.38
========== ========= ========= =========
Total return (1) 19.09% 2.96% 2.27% 3.53%
Ratios/supplemental data:
Net assets, end of period (000 omitted) ..... $ 26,973 $ 17,969 $ 23,267 $ 24,904
Ratios to average net assets:
Expenses .................................... 1.99% 2.00% 2.01% 2.00%
Net investment income ....................... (0.73%) (0.47%) (0.36%) (0.03%)
Expenses without waivers and
reimbursements .............................. 2.48% 3.39% 2.08% 2.86%
Net investment income without waivers
and reimbursements .......................... (1.22%) (1.86%) (0.43%) (0.89%)
<CAPTION>
Class B
---------------------------------------------------------------------------
Year Ended
---------------------------------------------------------------------------
10/31/95 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
-------- ---------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 12.31 $ 11.92 $ 11.94 $ 12.24 $ 11.89 $ 12.23
--------- ---------- --------- --------- --------- ---------
Income from investment operations:
Net investment income ....................... 0.04 (0.18) (0.13) (0.11)@ 0.01 (0.02)
Net gains or losses in securities
(both realized and unrealized) ............. (0.19) 2.33 0.42 0.33 0.35 (0.18)
--------- ---------- --------- --------- --------- ---------
Total from investment operations ........... (0.15) 2.15 0.29 0.22 0.36 (0.20)
--------- ---------- --------- --------- --------- ---------
Distributions to shareholders from:
Dividends from net Investment income ........ -- -- 0.01 -- -- --
Distributions from capital gains ............ 0.14 0.56 0.30 0.52 0.01 0.14
--------- ---------- --------- --------- --------- ---------
Total dividends and distributions .......... 0.14 0.56 0.31 0.52 0.01 0.14
--------- ---------- --------- --------- --------- ---------
Net asset value, end of period ............... $ 12.02 $ 13.51 $ 11.92 $ 11.94 $ 12.24 $ 11.89
========= ========== ========= ========= ========= =========
Total return (1) (1.19%) 18.49% 2.56% 1.74% 3.03% (1.61%)
Ratios/supplemental data:
Net assets, end of period (000 omitted) ..... $ 26,287 $ 6,858 $ 7,433 $ 7,989 $ 7,819 $ 6,759
Ratios to average net assets:
Expenses .................................... 2.01% 2.49% 2.50% 2.51% 2.50% 2.50%
Net investment income ....................... (0.10%) (1.21%) (0.94%) (0.88%) (0.43%) (0.53%)
Expenses without waivers and
reimbursements .............................. 2.86% 2.98% 3.90% 2.61% 3.36% 3.36%
Net investment income without waivers
and reimbursements .......................... (0.95%) (1.70%) (2.34%) (0.98%) (1.29%) (1.39%)
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return figures do not include the effect of any sales load.
@ Calculated using average shares outstanding.
See notes to financial statements.
58
<PAGE>
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Trustees and Shareholders of
Mutual Fund Group
In our opinion the accompanying statements of assets and liabilities, including
the portfolios of investments as presented, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Chase Vista
European Fund, Chase Vista Southeast Asian Fund, Chase Vista Japan Fund, Chase
Vista Latin American Equity Fund and Chase Vista International Equity Fund
(separate portfolios of Mutual Fund Group, hereafter referred to as the
"Trust") at October 31, 1999, the results of their operations for the year then
ended, the changes in their net assets for the two years then ended (for the
year then ended and for the period December 1, 1997 (commencement of
operations) through October 31, 1998 for the Chase Vista Latin American Equity
Fund), and the financial highlights for the periods presented, in conformity
with generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Trust's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at October 31, 1999 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
December 13, 1999
59
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments
- --------------------------------------------------------------------------------
As of October 31, 1999
<TABLE>
<S> <C> <C>
Shares Issuer Value (USD)
- ------------------------------------------------------------------------------------
Long-Term Investments -- 91.1%
- ------------------------------------------------------------------------------------
Common Stock -- 91.0%
---------------------
Australia -- 0.4%
12,000 Foster's Brewing Group LTD $ 31,905
13,100 Lang Corp., LTD * 54,534
8,000 News Corp., LTD 57,870
---------
144,309
Brazil -- 2.0%
28,300 Centrais Eletricas Brasileiras SA, ADR 242,113
20,000 Centrais Eletricas Brasileiras SA, Preference B Shares,
ADR 178,788
500 Centrais Geradoras do Sul do Brasil SA, ADR 1,844
3,400 Telecomunicacoes Brasileiras SA, ADR * 159
3,000 Telecomunicacoes Brasileiras SA, Preferred Block, ADR 233,625
---------
656,529
Finland -- 5.2%
8,750 Nokia OYJ 1,001,692
20,473 Sonera OYJ 614,957
2,600 Upm-Kymmene OYJ 82,064
---------
1,698,713
France -- 9.6%
1,650 Axa 232,793
428 Bouygues SA 149,049
8,524 CNP Assurances 251,107
1,206 Compagnie de Saint Gobain 209,357
4,960 Credit Commercial de France @ 571,417
12 Elf Aquitaine SA 1,767
4,700 Lagardere S.C.A. 190,378
1,287 Pinault-Printemps-Redoute 245,490
9,500 Rhone-Poulenc SA 531,731
5,324 Total Fina SA, Class B 719,778
---------
3,102,867
Germany -- 7.3%
1,300 CE Consumer Electronic AG 118,445
18,369 Kamps AG 1,028,144
2,200 Mannesmann AG 346,962
600 Marschollek Lautenschlaeger und Partner AG 126,568
41,900 Viag AG 769,248
---------
2,389,367
Ireland -- 2.3%
6,224 ESAT Telecom Group PLC, ADR * 278,524
31,033 Green Property PLC 182,357
63,044 Jefferson Smurfit Group 164,382
13,832 Ryanair Holdings PLC * 113,511
---------
738,774
Italy -- 3.6%
17,900 Alleanza Assicurazioni SPA 182,337
20,000 Autogrill SPA 220,562
125,000 Banca Nazionale Del Lavoro SPA * 424,128
36,972 Cremonini SPA * 80,442
41,900 Telecom Italia Mobile SPA 262,514
---------
1,169,983
</TABLE>
60
See notes to financial statements.
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (Continued)
As of October 31, 1999
<TABLE>
<S> <C> <C>
Shares Issuer Value (USD)
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Japan -- 23.9%
3,100 Aoyama Trading Co., LTD $ 94,818
15,000 Asahi Bank LTD 133,180
11,000 Bank of Tokyo-Mitsubishi LTD 182,251
10,000 Dai-Ichi Kangyo Bank LTD 137,111
10,000 Daiwa Securities Group, Inc. 106,717
19 East Japan Railway Co. 116,410
29,000 Fujikura LTD 179,347
6,000 Fujitsu LTD 180,641
4,000 Hitachi Maxell 95,882
3,000 Honda Motor Co. LTD 126,564
3,000 Hoya Corp. 215,734
8,000 Industrial Bank of Japan LTD 108,155
2,000 Ito-Yokado Co., LTD 159,931
14 Japan Tobacco, Inc. 154,369
11,000 Kaneka Corp. @ 143,966
4,000 KAO Corp. @ 121,962
9,000 Kikkoman Corp. 73,954
1,400 Mabuchi Motor Co., LTD 206,721
8,000 Mitsubishi Estate Co., LTD 80,157
15,000 Mitsui & Co., LTD 110,887
28,000 Mitsui Mining & Smelting 157,055
2,000 Murata Manufacturing Co., LTD @ 256,005
11,000 NEC Corp. 222,542
1,400 Nintendo Co., LTD @ 222,293
26,000 Nippon Sanso Corp. 81,519
52,000 Nippon Steel Corp. 132,125
89,000 Nippon Suisan Kaisha LTD 192,856
14 Nippon Telegraph & Telephone Corp. 214,775
4,000 Nissin Food Products Co., LTD 114,675
17 NTT Mobile Communications Network, Inc. @ 451,508
1,400 Orix Corp. 187,928
44,000 Osaka Gas Co., LTD 147,236
15,000 Raito Kogyo Co., LTD 88,020
1,000 Secom Co. LTD-New *@ 106,429
1,000 Secom Co., LTD @ 107,196
14,000 Sharp Corp. 222,829
3,000 Shin-Etsu Chemical Co. 123,688
200 Shohkoh Fund & Co., LTD 122,345
11,000 Sumitomo Bank LTD 176,979
30,000 Sumitomo Chemical Co., LTD 192,434
15,000 Sumitomo Trust & Banking 153,315
63,000 Taiheiyo Cement Corp. 137,725
3,000 Takeda Chemical Industries @ 172,300
7,000 Terumo Corp. 212,762
10,000 Tokio Marine & Fire Insurance Co. 130,879
1,000 Tokyo Electron LTD 83,034
35,000 Toray Industries, Inc. 192,962
23,000 Toshiba Corp. @ 144,667
6,000 Toyota Motor Corp. 207,681
23,000 UBE Industries LTD 66,600
---------
7,751,119
Mexico -- 0.6%
40,000 Alfa SA, Class A 153,478
95,000 Grupo Elektra SA 45,440
---------
198,918
</TABLE>
See notes to financial statements.
61
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (Continued)
As of October 31, 1999
<TABLE>
<S> <C> <C>
Shares Issuer Value (USD)
- -------------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------------
Netherlands -- 6.2%
8,300 Athlon Groep $ 164,606
17,400 Fortis NV 599,172
29 Koninklijke Ahold NV 891
5,106 Koninklijke Philips Electronics NV 523,772
7,283 Laurus NV 162,072
4,000 United Pan-Europe Communications NV * 307,634
7,700 VNU NV 260,453
---------
2,018,600
Portugal -- 0.8%
6,900 Banco Espirito Santo SA 179,455
720 Telecel-Comunicacoes Pessoasis SA 93,477
---------
272,932
Singapore -- 0.1%
15,000 DBS Land LTD 27,781
Spain -- 3.6%
3,100 Acerinox SA 94,258
31,600 Amadeus Global Travel Distribution, Class A * 189,172
16,128 Continente Contros Commerciales SA 386,537
16,000 Prosegur Comp Securidad 131,302
8,670 Sogecable * 238,624
8,832 Telefonica SA * 145,329
---------
1,185,222
Sweden -- 3.2%
18,419 Assa Abloy AB, Class B 204,954
5,450 Hennes & Mauritz AB, Class B 144,816
2,169 Modern Times Group AB, Class B * 70,163
10,900 Svenska Handelsbanken, Class A 151,113
11,340 Telefonaktiebolaget LM Ericsson, Class B 471,638
---------
1,042,684
Switzerland -- 3.1%
145 Compagnie Financiere Richemont, Class A 276,933
4,680 New ABB LTD * 471,161
125 PubliGroupe SA 91,657
400 Sia Abrasives Holding AG * 54,175
205 Zurich Allied AG 116,033
---------
1,009,959
Thailand -- 0.1%
10,700 Electricity Generating Public Co. LTD, Foreign Shares 14,135
2,100 PTT Exploration & Production Public Co., LTD, Foreign
Shares * 15,340
---------
29,475
</TABLE>
See notes to financial statements.
62
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (Continued)
As of October 31, 1999
<TABLE>
<S> <C> <C>
Shares Issuer Value (USD)
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
United Kingdom -- 19.1%
16,570 Barclays PLC @ $ 499,658
77,546 BP Amoco PLC @ 745,336
34,350 British Telecom PLC 622,828
61,000 Corus Group PLC 115,939
36,815 Diageo PLC @ 369,077
16,244 Exchange Holdings PLC * 46,725
38,800 General Electric Co. PLC @ 418,166
21,109 Glaxo Wellcome PLC 623,538
19,700 Laporte PLC 162,504
126,000 Laporte PLC, Class B * 2,071
76,000 Legal & General Group PLC 209,889
18,350 National Westminster Bank PLC @ 417,783
14,303 Royal Bank of Scotland Group PLC @ 326,343
22,150 Sema Group PLC 290,084
69,000 Shell Transport & Trading Co., PLC @ 530,922
24,065 SmithKline Beecham PLC 314,863
108,995 Vodafone AirTouch PLC @ 499,280
-----------
6,195,006
-------------------------------------------------------------------
Total Common Stock 29,632,238
(Cost $25,621,771)
-------------------------------------------------------------------
Warrants -- 0.0%
----------------
Germany -- 0.0%
56 Muenchener Rueckversicherungs-Gesellschaft AG, 2,386
Expires 06/03/02 *
Hong Kong -- 0.0%
100 Wharf Holdings, Expires 12/31/99 * 66
-------------------------------------------------------------------
Total Warrants 2,452
(Cost $0)
-------------------------------------------------------------------
Redeemable Unsecured Loan Stock -- 0.1%
---------------------------------------
Malaysia -- 0.1%
60,000 Sunway Building Technology, BHD, 3.0%, 7/30/01,* 13,895
(Cost $24,077)
Principal
Amount
(DEM)
Convertible Bond -- 0.0%
------------------------
Germany -- 0.0%
11,440 DaimlerChysler AG, 5.75%, 6/14/02 6,574
(Cost $5,998)
- ----------------------------------------------------------------------------------
Total Investments -- 91.1% $29,655,159
(Cost $25,651,846)
- ----------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Long Futures Outstanding
- ------------------------
Original Notional
Number Notional Value at Unrealized
of Expiration Value 10/31/99 Depreciation
Contracts Description Date (USD) (USD) (USD)
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
11 All Ordinaries
Stock Price Index Dec., 1999 $528,543 $505,218 $(23,325)
</TABLE>
See notes to financial statements.
63
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (Continued)
As of October 31, 1999
Index:
* -- Non-income producing security.
@ -- All or a portion of this security is segregated for forward foreign
currency contracts.
ADR -- American Depositary Receipt.
Summary of Investments by Industry, October 31, 1999
- ----------------------------------------------------
<TABLE>
<CAPTION>
Industry % of Investment Securities
- --------------------------------------------------------------------------------
<S> <C>
Telecommunications 17.6%
Banking 10.1%
Food/Beverage Products 6.9%
Oil & Gas 6.8%
Electronic/Electrical Equipment 6.3%
Insurance 5.8%
Pharmaceuticals 5.5%
Manufacturing 4.2%
Retailing 3.6%
Financial Services 3.5%
Chemicals 2.6%
Consumer Products 2.5%
Diversified 2.5%
Construction 2.4%
Metals/Mining 2.4%
Utilities 2.0%
Other (below 2%) 15.3%
- --------------------------------------------------------------------------------
Total 100.0%
</TABLE>
See notes to financial statements.
64
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
Statement of Assets and Liabilities October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
- ---------------------------------------------------------------------------------
Investment securities, at value (Note 1) ........................ $29,655,159
Cash ............................................................ 2,059,564
Foreign cash (Cost $1,193,903) .................................. 1,181,785
Segregated cash for futures contracts ........................... 68,619
Other assets .................................................... 113
Receivables:
Open forward currency contracts ................................ 4,816
Investment securities sold ..................................... 545,271
Interest and dividends ......................................... 40,792
Other .......................................................... 472
- ---------------------------------------------------------------------------------
Total Assets .................................................. 33,556,591
- ---------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased ................................ 731,026
Variation margin on futures contracts .......................... 23,325
Open forward currency contracts ................................ 99,649
Other .......................................................... 141
Accrued liabilities: (Note 2)
Custody fees ................................................... 16,237
Other .......................................................... 118,417
- ---------------------------------------------------------------------------------
Total Liabilities ............................................. 988,795
- ---------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS ......... $32,567,796
- ---------------------------------------------------------------------------------
Cost of investments .............................................. $25,651,846
- ---------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
65
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
Statement of Operations For the year ended October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
- --------------------------------------------------------------------------------
Dividend ............................................... $ 304,990
Interest ............................................... 70,909
Foreign taxes withheld ................................. (40,654)
- --------------------------------------------------------------------------------
Total investment income ............................... 335,245
- --------------------------------------------------------------------------------
EXPENSES: (Note 2)
Investment advisory fees ............................... 264,592
Administration fees .................................... 13,230
Accounting fees ........................................ 59,834
Custodian fees ......................................... 39,689
Professional fees ...................................... 69,863
Trustees' fees and expenses ............................ 529
Other .................................................. 22,102
- --------------------------------------------------------------------------------
Total expenses ........................................ 469,839
- --------------------------------------------------------------------------------
Less amounts waived (Note 2E) ........................... 277,822
- --------------------------------------------------------------------------------
Net expenses ........................................... 192,017
- --------------------------------------------------------------------------------
Net investment income ................................. 143,228
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments ........................................... 2,153,146
Futures transactions .................................. 62,118
Foreign exchange transactions ......................... (145,312)
Change in net unrealized appreciation / depreciation of:
Investments ........................................... 3,216,575
Futures contracts ..................................... 28,552
Foreign exchange transactions ......................... (358,546)
- --------------------------------------------------------------------------------
Net realized and unrealized gain ....................... 4,956,533
- --------------------------------------------------------------------------------
Net increase in net assets from operations ............. $5,099,761
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
66
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
Statement of Changes in Net Assets For the periods indicated
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
October 31,
- -----------------------------------------------------------------------------------------
1999 1998
- -----------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ............................... $ 143,228 $ 204,024
Net realized gain on investments, futures contracts
and foreign exchange transactions ................... 2,069,952 1,109,481
Change in net unrealized gain on investments, futures
contracts and foreign exchange transactions ......... 2,886,581 434,541
- -----------------------------------------------------------------------------------------
Increase in net assets from operations ............. 5,099,761 1,748,046
- -----------------------------------------------------------------------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS:
Contributions ....................................... 46,633,194 30,176,381
Withdrawals ......................................... (44,717,716) (37,783,446)
- -----------------------------------------------------------------------------------------
Net increase (decrease) from transactions in
investors' beneficial interests .................... 1,915,478 (7,607,065)
- -----------------------------------------------------------------------------------------
Net increase (decrease) in net assets ............... 7,015,239 (5,859,019)
NET ASSETS:
Beginning of period ................................. 25,552,557 31,411,576
- -----------------------------------------------------------------------------------------
End of period ....................................... $32,567,796 $25,552,557
- -----------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
67
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
International Equity Portfolio (the "Portfolio") ("IEP") is separately
registered under the Investment Company Act of 1940, as amended, as a non-
diversified, open end management investment company organized as a trust under
the Laws of the State of New York. The declaration of trust permits the
Trustees to issue beneficial interests in the Portfolio.
The 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
68
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
Notes to Financial Statements (Continued)
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.
At October 31, the Portfolio had outstanding forward foreign currency contracts
as detailed in Note 4.
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:
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 held or 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.
69
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
Notes to Financial Statements (Continued)
Index futures contracts are used to control the asset mix of the Portfolio
in the most efficient manner, allowing the Portfolio to adjust country
exposures while incurring minimal transaction costs. Short index futures
contracts are used for hedging purposes, i.e. to reduce the exposure to
equities. Long index futures contracts are used to gain exposure to
equities, when it is anticipated that this will be more efficient than
buying stocks directly.
Use of long futures contracts subjects the Portfolio to risk of loss up to
the nominal value of the contract, use of short futures contracts subjects
the Portfolio to unlimited losses.
The Portfolio may enter into futures contracts only on exchanges or boards
of trade. The exchange or board of trade acts as the counterparty to each
futures transaction, therefore, the Fund's credit risk is limited to
failure of the exchange or board of trade.
As of October 31, 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 income tax liability, without
regard to whether they have received any cash distributions from the
Portfolio. The Portfolio does not intend to distribute to investors its net
investment income or its net realized gains, if any. It is intended that
the Portfolio will be managed in such a way that investors in the Portfolio
will be able to satisfy the requirements of subchapter M of the Internal
Revenue Code to be taxed as regulated investment companies.
2. Fees and Other Transactions with Affiliates
A. Investment Advisory Fee -- Pursuant to an Investment Advisory Agreement,
The Chase Manhattan Bank ("Chase" or the "Advisor") acts as the Investment
Advisor to the Portfolio. Chase is a direct wholly-owned subsidiary of The
Chase Manhattan Corporation. As Investment Advisor, Chase supervises the
investments of the Portfolio and for such services is paid a fee. The fee
is computed daily and paid monthly at an annual rate equal to 1.00% of the
Portfolio's average daily net assets. For the year ended October 31, 1999,
the Advisor voluntarily waived all of its fees for the Portfolio.
70
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
Notes to Financial Statements (Continued)
Chase Asset Management, Inc. ("CAM"), a registered investment advisor, is
the sub-investment advisor to the Portfolio pursuant to a Sub-Investment
Advisory Agreement between CAM and Chase. CAM is a wholly owned subsidiary
of Chase and is entitled to receive a fee, payable by Chase from its
advisory fee, at an annual rate equal to 0.50% of the Portfolio's average
daily net assets.
B. Custodial Fees -- Chase, as Custodian, provides safekeeping services for
the Portfolio's securities. Compensation for such services are presented in
the Statement of Operations as custodian fees.
C. Administration Fee -- Pursuant to an Administration Agreement, Chase
(the "Administrator") provides certain administration services to the
Portfolio. For these services and facilities, the Administrator receives
from the Portfolio a fee computed at the annual rate equal to 0.05% of the
Portfolio's average daily net assets. For the year ended October 31, 1999,
the Administrator voluntarily waived all of its fees for the Portfolio.
3. Investment Transactions
For the year ended October 31, 1999, purchases and sales of investments
(excluding short-term investments) were as follows:
Purchases (excluding U.S. Government)............................ $41,692,497
Sales (excluding U.S. Government)................................ $37,009,617
The portfolio turnover rate of IEP for the year ended October 31, 1999, was
153%.
4. Open Forward Foreign Currency Contracts
The following forward foreign currency contracts were open at October 31, 1999.
<TABLE>
<CAPTION>
Contract Contract Unrealized
Amount Amount Settlement Gain (Loss)
Purchased/(Sold) Sold/(Purchased) Date (USD)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Unrealized Gain
- ------------------
710,000 GBP 1,101,083 EUR 12/15/99 $ 4,816
========
Unrealized Loss
- ------------------
1,071,439 EUR 710,000 GBP 12/15/99 $(36,117)
735,045 GBP 130,000,000 JPY 12/15/99 (47,670)
130,000,000 JPY 773,683 GBP 12/15/99 (15,862)
--------
(99,649)
========
</TABLE>
GBP--Great British Pound
EUR--European Currency Unit
JPY--Japanese Yen
71
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
Notes to Financial Statements (Continued)
5. 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.............. 1,106 $ 718 $ 706 $ (12)
British Pound Sterling......... 172,212 282,387 283,066 679
EURO ........................... 788,469 840,577 829,548 (11,029)
Hong Kong Dollar ............... 590 76 76 --
Indonesian Rupiah .............. 961,005 283 140 (143)
Japanese Yen ................... 382,979 3,672 3,672 --
Philippine Peso ................ 154,056 3,566 3,842 276
Singapore Dollar ............... 566 334 341 7
Swedish Krona .................. 332 40 40 --
Swiss Franc .................... 91,848 62,137 60,240 (1,897)
Thai Baht ...................... 4,382 113 114 1
---------- ---------- --------
$1,193,903 $1,181,785 $(12,118)
========== ========== ========
</TABLE>
6. Retirement Plan
The Portfolio has adopted an unfunded noncontributory defined benefit pension
plan covering all independent trustees of the Portfolio who will have served as
independent trustees for at least five years at the time of retirement.
Benefits under this plan are based on compensation and years of service.
Pension expenses for the year ended October 31, 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
$1,232, respectively.
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 October 31, 1999, nor at any
time during the year.
72
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
Notes to Financial Statements (Continued)
8. Concentrations -- At October 31, 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 October 31, 1999, the Portfolio invested approximately 23.9% and 19.1% of
its net assets in issuers in Japan and the United Kingdom, respectively. The
issuers' abilities to meet their obligations may be affected by economic or
political developments in the specific region.
73
<PAGE>
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Trustees and Beneficial Unit Holders of
International Equity Portfolio
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets present fairly, in all material respects, the financial
position of International Equity Portfolio (the "Portfolio") at October 31,
1999, the results of its operations for the year then ended and the changes in
its net assets for the two years then ended, in conformity with generally
accepted accounting principles. These financial statements are the
responsibility of the Portfolio's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at October 31, 1999 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
December 13, 1999
74
<PAGE>
- --------------------------------------------------------------------------------
TAX LETTER UNAUDITED
- --------------------------------------------------------------------------------
TAX LETTER (Unaudited)
Chase Vista European Fund (EF)
Chase Vista Southeast Asian Fund (SEAF)
Chase Vista Japan Fund (JF)
Chase Vista Latin American Equity Fund (LAEF)
Chase Vista International Equity Fund (IEF)
- --------------------------------------------------------------------------------
Certain tax information for the Chase Vista Mutual Funds is required to be
provided to shareholders based upon the Funds' income and distributions for the
taxable year ended October 31, 1999. The information and distributions reported
in this letter may differ from the information and distributions taxable
reported to the shareholders for the calendar year ending December 31, 1999.
The information necessary to complete your income tax returns for the calendar
year ending December 31, 1999 will be received under separate cover.
FOR THE FISCAL YEAR ENDED OCTOBER 31, 1999:
The following represents the source and percentage of income earned from
government obligations and the per share long-term capital gains distributed by
the Funds:
<TABLE>
<CAPTION>
Long-Term
Federal Home Capital Gains
Loan Bank Distribution Per
Chase Vista Fund Obligations Share
- ------------------------------------------------------------------------
<S> <C> <C>
European ...................... -- $ 0.11
Southeast Asian ............... -- --
Japan ......................... -- --
Latin American Equity ......... 13.23% --
International Equity .......... -- 0.10
</TABLE>
For the year ended October 31, 1999, EF, LAEF and IEF elect, pursuant to
Section 853 of the Internal Revenue Code, to pass through foreign taxes to
their shareholders. The amount of gross foreign source income and foreign taxes
with respect to this election for EF are $848,037 ($.2356 per share) and
$93,022 ($0.0258 per share), respectively. The amount of gross foreign source
income and foreign taxes with respect to this election for LAEF are $196,505
($.2492 per share) and $12,993 ($0.0165 per share), respectively. The amount of
gross foreign source income and foreign taxes with respect to this election for
IEF are $375,899 ($.1524 per share) and $40,654 ($0.0165 per share),
respectively.
75
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<PAGE>
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<PAGE>
CHASE VISTA INTERNATIONAL EQUITY FUNDS 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
PricewwaterhouseCoopers LLP
Chase Vista Funds are distributed by
Vista Fund Distributors, Inc., which is
unaffiliated with The Chase Manhattan
Bank. chase and its respective affiliates
receive compensation from Chase Vista
Funds for providing investment advisory
and other services.
This report is submitted for the general
information of the shareholders of the
funds. It is not authorized for distribution
to prospective investors in the funds
unless preceded or accompanied by a
prospectus.
To obtain 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.
December 1999
[CHASE VISTA LOGO]
Chase Vista Funds Fulfillment Center
393 Manley Street
West Bridgewater, MA 02379-1039
