OCTOBER 31, 1999
Chase Vista Fixed
Income Funds
ANNUAL REPORT
U.S. TREASURY
INCOME FUND
U.S. GOVERNMENT
SECURITIES FUND
BOND FUND
SHORT-TERM
BOND FUND
STRATEGIC
INCOME FUND
[Logo]
CHASE VISTA FUNDS(SM)
ANFI-2-1299
<PAGE>
Contents
Chairman's Letter 1
Chase Vista U.S. Treasury Income Fund 2
Fund Commentary
Chase Vista U.S. Government Securities Fund 5
Fund Commentary
Chase Vista Bond Fund 8
Fund Commentary
Chase Vista Short-Term Bond Fund 11
Fund Commentary
Chase Vista Strategic Income Fund 14
Fund Commentary
Portfolios of Investments 16
Financial Statements 30
Notes to Financial Statements 40
Financial Highlights 48
Highlights
o Bond markets struggled as the United States economy continued to grow
sharply during the reporting year. The annual growth rate for the quarter
ended September 30, 1999 was 5.5%.
o Inflation, while still well under control, inched up during the reporting
year and the Federal Reserve began raising interest rates in June.
o The yield on the 30-year U.S. Treasury bond rose from 5.15% to 6.15% over
the course of the reporting year, with a low of 4.96% on December 10, 1998
and a high of 6.38% on October 26, 1999.
NOT FDIC INSURED May lose value / No bank guarantee
Chase Vista Funds are distributed by Vista Fund Distributors, Inc.
<PAGE>
- -----------------------------------------------------------------------------
CHASE VISTA FIXED INCOME FUNDS
Chairman's Letter
December 1, 1999
Dear Shareholder:
We are pleased to present this annual report for the Chase Vista fixed income
funds for the year ended October 31, 1999.
Continued Strong U.S. Economic Growth Tests "New Paradigm"
Throughout the 1990s, the wonderful combination of strong economic growth, low
unemployment and low inflation has led to a growing belief in a "new paradigm."
Under this theory, productivity and technological gains will allow the economy
to grow at faster levels without sparking an inflationary spiral that causes
the Federal Reserve to raise interest rates in an effort to cool the economy.
Prior to the arrival of the "new paradigm," it was thought that GDP growth much
above a 2.5% annual rate would inevitably become inflationary.
However, the sizzling U.S. economy began testing the upper limits of the "new
paradigm" equation during the reporting year, with the most recent GDP report
showing a 5.5% annualized growth rate in the third quarter of 1999. Although
inflation remained relatively subdued, it did move higher over the reporting
year, and this, when combined with the very high growth in the U.S. and the
resumption of growth overseas, led to rising interest rates and a generally
rough road to hoe for the bond market.
Fed About Face Reflects Fears of Inflation
The Fed began the period by making its last of a series of three interest rate
cuts on November 16, 1998. These cuts were made in an effort to shore up what
was perceived to be a fragile global economy. But by early 1999, early signs
that a global economic recovery was underway--combined with 6% annual growth in
the U.S. in the 4th quarter of 1998 and record-low unemployment--led to bond
market fears that the Fed would shift to a policy of raising short-term
interest rates. This generally negative sentiment continued for the rest of the
reporting year as the Fed did indeed begin tightening, first on June 30, 1999
and then again on August 24th. After the period ended, the Fed raised the
Federal Funds rate to 5.5% on November 16, 1999.
Your portfolio management team rose to the occasion of this challenging
environment, working to protect your investment and provide you with
competitive levels of current income. Fixed income investments have an
important role to play in any diversified investment portfolio, and they are
especially valuable in times of stock market volatility. All of us at Chase
Vista thank you for investing with us and encourage you to maintain your
long-term perspective on the value of a diversified portfolio.
Sincerely yours,
/s/ Fergus Reid
Fergus Reid
Chairman
1
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA U.S. TREASURY INCOME FUND
As of October 31, 1999 (Unaudited)
How the Fund Performed
Chase Vista U.S. Treasury Income Fund, which seeks to provide income through a
portfolio of high-quality U.S. Treasury bonds, had a total return of -2.41%
(Class A shares, without sales charge) for the year ended October 31, 1999,
compared to -1.55% for Lehman Treasury Bond Index and -1.75% for Lipper General
U.S. Government Funds Average.
How the Fund Was Managed
Since the prices of Treasury securities and interest rates move in opposite
directions, the rising interest rate environment that prevailed for the great
majority of the reporting year proved challenging for the Fund's management
team. However, by actively managing the Fund portfolio's yield structure and
duration, the management team effectively reduced much of the effect of the
lower Treasury prices.
After taking advantage of the early-period rally in Treasuries, the Fund's
slightly-long duration was detrimental to performance in early 1999 as rates
rose sharply in response to reports that global growth was on the upswing.
Adjusting to the rising-rate environment, the management team cut duration to
shorter-than-benchmark in March, which proved highly beneficial as rates
continued to rise.
As the Federal Reserve began raising short-term rates at the end of June, the
Fund maintained a neutral to short-short of benchmark stance and focused on
Treasury securities in the 20-year maturity range, taking advantage of the fact
that these had higher yields than those in the 30-year range. This conservative
and ultimately beneficial duration stance was maintained as the management team
correctly anticipated further Fed rate hikes.
Where the Fund May Be Headed
After the end of the reporting period, the Fed once again raised short-term
rates in the face of a strong U.S. economy, growth overseas and slightly higher
inflation expectations. In the management team's view, the Fed won't raise rates
again in 1999 due concerns about Y2K, but if growth continues at the current
pace the Fed will have to act fairly early next year. Therefore, unless growth
unexpectedly slows, the management team intends to maintain a conservative,
shorter-than-benchmark duration by the first of the year. Prior to then,
however, the management team looks to take advantage of the window of
opportunity created by Y2K and positive technical characteristics in the
Treasury market--specifically lower Treasury issuance due to the budget surplus
and demand from investors seeking a potential Y2K safe haven.
2
<PAGE>
CHASE VISTA U.S. TREASURY INCOME FUND
As of October 31, 1999 (Unaudited)
Percentage of Total Portfolio Investments
[Pie Chart]
Cash Equivalents & Short-Term Paper (0.6%)
U.S. Treasury Securities (87.6%)
Residential Mortgage Backed Securities (11.8%)
[End Pie Chart]
Average Annual Total Returns+
<TABLE>
<S> <C> <C> <C>
1 Year 5 Years 10 Years
Class A Shares
Without Sales Charge -2.41% 6.57% 6.76%
With Sales Charge* -6.80% 5.60% 6.27%
Class B Shares
Without CDSC -3.27% 5.75% 6.29%
With CDSC** -7.85% 5.43% 6.29%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less
than their original cost.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
* Sales charge for Class A Shares is 4.50%.
** Assumes 5% CDSC (contingent deferred sales charge) for the one year period,
a 2% CDSC for the five year period and 0% CDSC for the ten year period.
+ The Fund commenced operations on 9/8/87. Class B Shares were introduced on
11/4/93. Investors should note that the information presented for Class B
Shares prior to their introduction is based on historical expenses of the
predecessor Class A Shares, which are lower than the actual expenses of the
Class B Shares.
3
<PAGE>
CHASE VISTA U.S. TREASURY INCOME FUND
As of October 31, 1999 (Unaudited)
10-Year Performance (10/31/89 to 10/31/99)
[Line Chart]
Chase Vista U.S. Treasury Income Fund $18,362
Lehman Treasury Bond Index $20,922
Lipper General U.S. Government Funds Average $19,107
<TABLE>
<S> <C> <C> <C>
1989 9550 10000 10000
1990 10090 10575 10545
1991 11512 12112 12075
1992 12593 13370 13136
1993 14150 15127 14715
1994 13360 14454 13844
1995 15308 16676 15872
1996 15853 17521 16504
1997 17017 19030 17829
1998 18820 21233 19442
1999 18362 20922 19107
</TABLE>
[End Line Chart]
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 U.S. Treasury Income Fund, the Lipper General U.S.
Government Funds Average and the Lehman Treasury Bond Index from October 31,
1989 to October 31, 1999. The performance of the Fund assumes the reinvestment
of all dividends and capital gains and includes a 4.50% sales charge. The
performance of the average and the index do not include a sales charge and have
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 General U.S. Government Funds Average represents the average
performance of a universe of 187 actively managed U.S. government income funds.
Lipper is an independent mutual fund performance monitor whose results are
based on total return and do not reflect a sales charge.
The Lehman Treasury Bond Index is a replica (or model) of the U.S. government
treasury securities market. This index is unmanaged and reflects the
reinvestment of dividends. An individual cannot invest directly in the index.
4
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA U.S. GOVERNMENT SECURITIES FUND
As of October 31, 1999 (Unaudited)
How the Fund Performed
Chase Vista U.S. Government Securities Fund, which seeks income by investing in
securities backed by the U.S. government and respective agencies, had a total
return of -2.11% (Class A shares, without sales charges) for the year ended
October 31, 1999, compared to -1.21% for Lehman Government Bond Index and
- -1.75% for Lipper U.S. Government Funds Average.
How the Fund Was Managed
In the year's rising rate environment, your management team used a variety of
tools to protect the value of your investment.
One such tool was duration management, which involves selecting securities by
how far away or close their maturity is to today. Because interest rates and
bond prices move in opposite directions, it's generally better to have a
conservative, shorter duration in a rising rate environment. After taking
advantage of the rally in Treasuries (and falling rates) as the reporting year
opened by having a longer-than-benchmark duration, the management team
correctly anticipated the onset of the higher rate environment by reducing
duration to only slightly-long. This began a process of reduction in duration
that continued through the spring and summer and ultimately led to a
shorter-than-benchmark stance by the end of September.
Another tool was sector allocation, which in the case of this fund involves
U.S. Treasury securities and those issued by federal agencies, most commonly
mortgage-backed securities. Generally, it's better to be in Treasuries in a
falling-rate environment, and therefore the Fund benefited from its Treasury
overweight early in the reporting year. Subsequently, the management team moved
back into mortgage-backed securities, whose higher yields traditionally help
them to outperform Treasuries in a flat to rising interest rate environment.
However, the recovery in non-Treasury sectors from their October lows took
longer than anticipated, and in fact mortgages underperformed Treasuries in the
April to June period following the Federal Reserve's announcement of a bias
towards raising rates. As the reporting period wore on, mortgages did begin to
outperform Treasuries, and the Fund's strong move back into the sector helped
relative performance in August, September and October.
Where the Fund May Be Headed
After the end of the reporting period, the Fed once again raised short-term
rates in the face of a strong U.S. economy, growth overseas and slightly higher
inflation expectations. In the management team's view, the Fed won't raise
rates again in 1999 due to concerns about Y2K, but if growth continues at the
current pace the Fed will have to act fairly early next year. Therefore, unless
growth unexpectedly slows, the management team intends to reduce duration
further by the first of the year and intensify its mortgage-backed overweight.
5
<PAGE>
CHASE VISTA U.S. GOVERNMENT SECURITIES FUND
As of October 31, 1999 (Unaudited)
Percentage of Total Portfolio Investments
[Pie Chart]
Cash Equivalents & Short Term Paper (3.8%)
Residential Mortgage Backed Securities (56.5%)
U.S. Treasury Securities (29.7%)
U.S. Government Agency Obligations (10.0%)
[End Pie Chart]
Average Annual Total Returns+
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Years (2/19/93)
- ------------------------------------------------------------------
<S> <C> <C> <C>
Class A Shares
Without Sales Charge -2.11% 6.50% 5.10%
With Sales Charge* -6.51% 5.52% 4.38%
- -------------------------------------------------------------------
Class I Shares -1.93% 6.67% 5.22%
- -------------------------------------------------------------------
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less
than their original cost.
The Fund is currently waiving certain fees. The voluntary waiver may be
modified or terminated at any time, which would reduce performance.
* Sales charge on Class A Shares is 4.50%.
+ The Fund commenced operations on 2/19/93. Class A Shares were introduced on
5/6/96. Investors should note that the information presented for Class A Shares
prior to their introduction is based on historical expenses of the predecessor
Class I Shares, which are lower than the actual expenses of the Class A Shares.
6
<PAGE>
CHASE VISTA U.S. GOVERNMENT SECURITIES FUND
As of October 31, 1999 (Unaudited)
Life of Fund Performance (2/19/93 to 10/31/99)
[START LINE CHART]
Chase Vista U.S. Government Securities Fund $14,053
Lehman Government Bond Index $15,317
Lipper General U.S. Government Funds Average $14,086
<TABLE>
<S> <C> <C> <C>
2/93 10000 10000 10000
10/93 10714 10912 10848
1994 10185 10423 10206
1995 11638 12027 11701
1996 12098 12642 12167
1997 13038 13735 13143
1998 14334 15286 14333
1999 14053 15317 14086
</TABLE>
[END LINE CHART]
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 I
Shares of Chase Vista U.S. Government Securities Fund, the Lipper General U.S.
Government Funds Average, and the Lehman Government Bond Index from February
19, 1993 to October 31, 1999. The performance of the Fund assumes the
reinvestment of all dividends and capital gains and does not include a sales
charge. The performance of the average and the index do not include a sales
charge and have been adjusted to reflect reinvestment of all dividends and
capital gains on the securities included in the benchmark.
Class I shares have a $1,000,000 minimum initial deposit and carry no sales
charge.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
The Lipper General U.S. Government Funds Average represents the average
performance of a universe of 187 actively managed U.S. government income funds.
Lipper is an independent mutual fund performance monitor whose results are
based on total return and do not reflect a sales charge.
The Lehman Government Bond Index is composed of the Treasury Bond Index and the
Agency Bond Index and includes U.S. Treasury and agency bond issues. The index
is unmanaged and reflects the reinvestment of dividends. An individual cannot
invest directly in an index.
7
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA BOND FUND
As of October 31, 1999 (Unaudited)
How the Fund Performed
Chase Vista Bond Fund, which seeks to provide a high level of current income
through a portfolio of investment-grade Treasury, corporate, mortgage-backed
and asset-backed securities, had a total return of - 0.66% (Class A Shares,
without sales charge) for the year ended October 31, 1999, compared to 0.53%
for Lehman Aggregate Bond Index and - 0.92% for Lipper Corporate Debt A-Rated
Funds Average.
How the Fund Was Managed
In the year's rising rate environment, your management team used a variety of
tools to protect the value of your investment.
One such tool was duration management, which involves selecting securities by
how far away or close their maturity is to today. Because interest rates and
bond prices move in opposite directions, it's generally better to have a more
conservative, shorter duration in a rising rate environment. After taking
advantage of the rally in Treasuries (and falling rates) as the reporting year
opened by having a longer-than-benchmark duration, the management team
correctly anticipated the onset of the higher rate environment by reducing
duration to only slightly-long. This began a process of reduction in duration
that continued through the spring and summer and ultimately led to a
shorter-than-benchmark stance by the end of September.
Another tool was sector allocation, which involves determining which sectors
are likely to outperform given the market's characteristics. Generally, it's
better to be in Treasuries in a falling-rate environment, and therefore the
Fund benefited from its Treasury overweight early in the reporting year.
Subsequently, the management team moved back into the sectors which offer a
higher yield or "spread" relative to Treasuries, including corporates,
mortgage-backed and asset-backed securities. While their higher yields
traditionally help the spread sectors outperform in a flat to rising interest
rate environment, it took a while in late 1998 and the first quarter of 1999
for each spread sector to recover from its autumn low.
Although the Federal Reserve's announcement of a bias towards raising rates
caused spread sectors to underperform Treasuries during the April to June
period, the Fund's strong security selection within the corporate sector helped
relative performance, as did the gradual move back into mortgages and a
reduction of corporates given fears of large issuance in the sector.
Where the Fund May Be Headed
After the end of the reporting period, the Fed once again raised short-term
rates in the face of a strong U.S. economy, growth overseas and slightly higher
inflation expectations. In the management team's view, the Fed won't raise
rates again in 1999 due to concerns about Y2K, but if growth continues at the
current pace the Fed will have to act fairly early next year. Therefore, unless
growth unexpectedly slows, the management team intends to reduce duration
further by the first of the year and intensify its spread sector overweight.
8
<PAGE>
CHASE VISTA BOND FUND
As of October 31, 1999 (Unaudited)
Percentage of Total Portfolio Investments
[Pie Chart]
U.S. Government Agency Obligations (4.3%)
Residential Mortgage Backed Securities (33.4%)
Corporate Notes & Bonds (25.6%)
U.S. Treasury Securities (15.4%)
Cash Equivalents & Short-Term Paper (9.8%)
Asset Backed Securities (6.7%)
Commercial Mortgage Backed Securities (4.8%)
[End Pie Chart]
Average Annual Total Returns+
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Years (11/30/90)
- -------------------------------------------------------------------
<S> <C> <C> <C>
Class A Shares
Without Sales Charge -0.66% 7.34% 7.41%
With Sales Charge* -5.13% 6.35% 6.86%
- -------------------------------------------------------------------
Class B Shares
Without CDSC -1.46% 6.88% 7.15%
With CDSC** -6.10% 6.57% 7.15%
- -------------------------------------------------------------------
Class I Shares -0.42% 7.61% 7.56%
- -------------------------------------------------------------------
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less
than their original cost.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
* Sales charge on Class A Shares is 4.50%.
** Assumes 5% CDSC (contingent deferred sales charge) for the one year period,
a 2% CDSC for the five year period and 0% CDSC for the period since inception.
+ The Fund commenced operations on 11/30/90. Class A and B Shares were
introduced on 5/6/96. Investors should note that the information presented for
Class A and B Shares prior to their introduction is based on historical
expenses of the predecessor Class I Shares, which are lower than the actual
expenses of the Class A and B Shares.
9
<PAGE>
CHASE VISTA BOND FUND
As of October 31, 1999 (Unaudited)
Life of Fund Performance (11/30/90 to 10/31/99)
[START LINE CHART]
Chase Vista Bond Fund $19,156
Lehman Aggregate Bond Index $19,722
Lipper Corporate Debt A-Rated Funds Average $18,837
<TABLE>
<S> <C> <C> <C>
1990 10000 10000 10000
1991 11160 11336 11356
1992 12315 12452 12526
1993 13715 13858 14104
1994 13273 13463 13453
1995 15374 15571 15532
1996 16139 16479 16277
1997 17742 17947 17653
1998 19235 19620 19012
1999 19155 19721 18836
</TABLE>
[END LINE CHART]
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 I
Shares of Chase Vista Bond Fund, the Lipper Corporate Debt A-Rated Funds
Average and the Lehman Aggregate Bond Index from November 30, 1990 to October
31, 1999. The performance of the Fund assumes the reinvestment of all dividends
and capital gains and does not include a sales charge. The performance of the
averages and the index do not include a sales charge and have been adjusted to
reflect reinvestment of all dividends and capital gains on the securities
included in the benchmark.
Class I shares have a $1,000,000 minimum initial deposit and carry no sales
charge.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
The Lipper A-Rated Funds Average represents the average performance of a
universe of 149 actively managed corporate debt A-rated or better funds. Lipper
is an independent mutual fund performance monitor whose results are based on
total return and do not reflect a sales charge.
The Lehman Aggregate Bond Index is composed of the Lehman Government/
Corporate Index and the Mortgage-Backed Securities Index and includes U.S.
treasury issues, agency issues, corporate bond issues and mortgage-backed
securities. The index is unmanaged and reflects reinvestment of dividends. An
individual cannot invest in the index.
10
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA SHORT-TERM BOND FUND
As of October 31, 1999 (Unaudited)
How the Fund Performed
Chase Vista Short-Term Bond Fund, which seeks current income by investing in a
portfolio of short-term investment grade fixed income securities, had a total
return of 2.64% (Class A Shares, without sales charge) for the year ended
October 31, 1999, compared to 3.20% for Lehman 1-3 Year Government Bond Index
and 2.98% for Lipper Short-Term Investment Grade Debt Funds Average.
How the Fund Was Managed
In the year's rising rate environment, your management team used a variety of
tools to protect the value of your investment. One such tool was duration
management, which involves selecting securities by how far away or close their
maturity is to today. Because interest rates and bond prices move in opposite
directions, it's generally better to have a conservative, shorter duration in a
rising rate environment. After taking advantage of the rally in Treasuries (and
falling rates) as the reporting year opened by having a longer-than-benchmark
duration, the management team correctly anticipated the onset of the higher
rate environment by reducing duration to only slightly-long. This began a
process of reduction in duration that continued through the spring and summer
and ultimately led to a shorter-than-benchmark stance.
Another tool was sector allocation, which involves determining which sectors
are likely to outperform given the market's characteristics. Generally, it's
better to be in Treasuries in a falling-rate environment, and therefore the
Fund benefited from its Treasury overweight early in the reporting year.
Subsequently, the management team moved back into the sectors which offer a
higher yield or "spread" relative to Treasuries, including corporate,
mortgage-backed and asset-backed securities. While their higher yields
traditionally help the spread sectors outperform in a flat to rising interest
rate environment, it took a while in late 1998 and the first quarter of 1999
for each spread sector to recover from its autumn low.
Although the Federal Reserve's announcement of a bias towards raising rates
caused spread sectors to underperform Treasuries during the April to June
period, the Fund's strong security selection within the corporate sector helped
relative performance, as did the gradual move back into mortgages and reduction
of corporates given fears of large issuance in the sector. In the final few
months of the reporting period, the management team recognized the value in
BBB-rated corporate securities given wide quality spreads.
Where the Fund May Be Headed
After the end of the reporting period, the Fed once again raised short-term
rates in the face of a strong U.S. economy, growth overseas and slightly higher
inflation expectations. In the management team's view, the Fed won't raise
rates again in 1999 due to concerns about Y2K, but if growth continues at the
current pace the Fed will have to act fairly early next year.
11
<PAGE>
CHASE VISTA SHORT-TERM BOND FUND
As of October 31, 1999 (Unaudited)
Percentage of Total Portfolio Investments
[Pie Chart]
Cash Equivalents & Short-Term Paper (1.9%)
U.S. Treasury Securities (38.2%)
Asset Backed Securities (20.2%)
Corporate Notes & Bonds (17.8%)
U.S. Government Agency Obligations (17.4%)
Residential Mortgage Backed Securities (2.5%)
Commercial Mortgage Backed Securities (2.0%)
[End Pie Chart]
Average Annual Total Returns+
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Years (11/30/90)
- -------------------------------------------------------------------
<S> <C> <C> <C>
Class A Shares
Without Sales Charge 2.64% 5.44% 5.43%
With Sales Charge* 1.10% 5.12% 5.25%
- -------------------------------------------------------------------
Class I Shares 2.97% 5.73% 5.60%
- -------------------------------------------------------------------
Class M Shares
Without Sales Charge 2.64% 5.44% 5.33%
With Sales Charge** 1.10% 5.13% 5.26%
- -------------------------------------------------------------------
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less
than their original cost.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
* Sales charge on Class A shares is 1.50%.
** Sales charge on Class M shares is 1.50%.
+ The Fund commenced operations on 11/30/90. Class A Shares and Class M Shares
were introduced on 5/6/96 and 7/1/99, respectively. Investors should note that
the information presented for Class A Shares prior to their introduction is
based on historical expenses of the predecessor Class I Shares, which are lower
than the actual expenses of the A Shares. The information presented for Class M
Shares prior to their introduction is based on historical expenses of the
predecessor Class A Shares, which are lower than the actual expenses of the M
Shares.
12
<PAGE>
CHASE VISTA SHORT-TERM BOND FUND
As of October 31, 1999 (Unaudited)
Life of Fund Performance (11/30/90 to 10/31/99)
[BEGIN LINE CHART]
Chase Vista Short-Term Bond Fund $16,328
Lehman 1-3 Year Government Bond Index $17,458
Lipper Short-Term Investment Grade Debt Funds Average $16,627
<TABLE>
<S> <C> <C> <C>
1990 10000 10000 10000
1991 10783 11016 11019
1992 11468 11912 11804
1993 12012 12601 12545
1994 12297 12747 12636
1995 13205 13872 13637
1996 14010 14703 14379
1997 14882 15655 15250
1998 15781 16851 16154
1999 16328 17458 16627
</TABLE>
[END LINE CHART]
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 I
Shares of Chase Vista Short-Term Bond Fund, the Lipper Short Investment Grade
Debt Funds Average and the Lehman 1-3 year Government Bond Index from November
30, 1990 to October 31, 1999. The performance of the Fund assumes reinvestment
of all dividends and capital gains and does not include a sales charge. The
performance of the average and the index do not include a sales charge and have
been adjusted to reflect the reinvestment of all dividends and capital gains on
the securities included in the benchmark.
Class I Shares have a $1,000,000 minimum initial deposit and carry no sales
charge.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
The Lipper Short-Term Investment Grade Debt Funds Average represents the
average performance of a universe of 97 actively managed short-term investment
grade debt funds. Lipper is an independent mutual fund performance monitor
whose results are based on total return and do not reflect a sales charge.
The Lehman 1-3 Year Government Bond Index is composed of bonds covered by the
Government Bond Index with maturities of one to three years. The index is
unmanaged and reflects the reinvestment of dividends. An individual cannot
invest directly in the index.
13
<PAGE>
- -------------------------------------------------------------------------------
CHASE VISTA STRATEGIC INCOME FUND
As of October 31, 1999 (Unaudited)
How the Fund Performed
Chase Vista Strategic Income Fund commenced operations on November 30, 1998. For
the January, 1999 through October 1999 period, the Fund provided shareholders
with a total return of 4.09% (Class A shares, without sales charges). During the
same ten-month period, its Lipper Multi-Sector Income Funds peer group average
total return was 0.57% and -0.33% for Lehman Aggregate Bond Index.
How the Fund Was Managed
Typically, the Fund seeks a high level of current income through investment in
three major fixed income sectors: U.S. investment grade bonds, including U.S.
Treasury and agency, corporate, mortgage- and asset-backed securities; U.S.
high yield bonds, and; foreign investment grade and emerging market bonds.
The Fund began operations in an environment in which U.S. high yield bonds and
emerging market bonds were trading at historically-high yields relative to U.S.
Treasuries. In the management team's view, these wide spreads were in large
part due to the continuing effects of financial turmoil that began with the
Asian crisis in 1997 as well as general concern about the global economy.
Expecting that these spreads would narrow as the global economy recovered, the
management team decided to overweight these sectors. When global growth arrived
and spreads did indeed narrow, the Fund was able to achieve strong gains, and
by early May exposure to these sectors was reduced closer to neutral.
Subsequently, the Fund again increased its allocation to U.S. high yield
securities because they have traditionally performed relatively well in rising
rate environments. The Fund also focused its entire foreign allocation on
emerging market bonds. Both of these moves generated high levels of income for
the remainder of the reporting year, and this income offset the negative impact
of rising interest rates on the portfolio.
Where the Fund May Be Headed
With continued improvements in the global economy and the negative effects
strong growth could have on the bond market in the United States, the Fund
continues to focus on sectors such as emerging markets and U.S. high yield
which offer attractive coupon payments. Additionally, in the case of emerging
market and U.S. corporate bonds, the expectation that spreads relative to
Treasuries will continue to tighten means that the management team remains on
the lookout for the best opportunities in these sectors. The management team
remains cognizant that Y2K and events in major markets could have an impact on
emerging market issues, and therefore remains vigilant in which individual
securities the Fund holds as well as its overall risk profile.
14
<PAGE>
CHASE VISTA STRATEGIC INCOME FUND
As of October 31, 1999 (Unaudited)
Percentage of Total Portfolio Investments
[Pie Chart]
Commercial Mortgage Backed Securities (1.3%)
Asset Backed Securities (1.1%)
Convertible Corporate Notes & Bonds (0.4%)
Corporate Notes & Bonds (44.5%)
Foreign Government Securities (15.2%)
Residential Mortgage Backed Securities (12.6%)
Cash-Equivalent & Short-Term Paper (11.1%)
U.S. Treasury Securities (10.8%)
U.S. Government Agency Obligations (3.0%)
[End Pie Chart]
Average Annual Total Returns+
<TABLE>
<CAPTION>
Since
Inception
(11/30/98)
- ------------------------------------------
<S> <C>
Class A Shares
Without Sales Charge 3.23%
With Sales Charge* -1.42%
- ------------------------------------------
Class B Shares
Without CDSC 3.13%
With CDSC** -1.66%
- ------------------------------------------
Class C Shares
Without CDSC 3.12%
With CDSC*** 2.17%
- ------------------------------------------
Class I Shares 3.29%
- ------------------------------------------
Class M Shares
Without Sales Charge 3.14%
With Sales Charge**** 0.05%
- ------------------------------------------
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not indicative of
future results. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less
than their original cost.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
* Sales charge on Class A Shares is 4.50%.
** Assumes 5% CDSC (contingent deferred sales charge) for the one year period,
a 2% CDSC for the five year period and 0% CDSC for the ten year period.
*** Assumes 1% CDSC for the period since inception.
**** Sales charge on Class M is 3.0%.
+ The Fund commenced operations on 11/30/98. Class A, B, C and I Shares were
introduced on 11/30/98. Class M Shares were introduced on 10/28/99. The Fund is
currently waiving certain fees. This voluntary waiver may be modified or
terminated at any time, which would reduce performance. The information
presented for Class M Shares prior to their introduction is based on historical
expenses of the predecessor Class A Shares, which are lower than the actual
expenses of the M Shares.
15
<PAGE>
CHASE VISTA U.S. TREASURY INCOME FUND
Portfolio of Investments
October 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------------------------
Long-Term Investments -- 98.1%
- -------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Securities -- 86.5%
---------------------------------
U.S. Treasury Notes and Bonds,
$ 1,000 5.25%, 02/15/29 $ 864
5,000 5.63%, 05/15/08 4,824
3,000 6.25%, 02/28/02 3,026
6,500 6.38%, 08/15/27 6,478
3,000 6.50%, 05/31/02 3,044
10,000 7.50%, 02/15/05 10,627
5,000 7.75%, 01/31/00 @ 5,030
11,400 7.88%, 08/15/01 11,790
12,200 8.50%, 02/15/20 14,905
3,500 10.75%, 08/15/05 4,265
8,000 11.75%, 02/15/01 8,582
-------------------------------------------------------------------
Total U.S. Treasury Securities 73,435
(Cost $77,097)
-------------------------------------------------------------------
Residential Mortgage Backed Securities -- 11.6%
-----------------------------------------------
Government National Mortgage Association,
4,967 Pool 478716, 8.00%, 09/15/29 5,074
4,995 Pool 487526, 6.50%, 06/15/29 4,773
-------------------------------------------------------------------
Total Residential Mortgage Backed Securities 9,847
(Cost $9,853)
- -------------------------------------------------------------------------------
Total Long-Term Investments 83,282
(Cost $86,950)
- -------------------------------------------------------------------------------
Short-Term Investments -- 0.5%
- -------------------------------------------------------------------------------
U.S. Government Agency Obligations -- 0.4%
------------------------------------------
400 Student Loan Marketing Association, Discount Note,
5.16%, 11/01/99 400
(Cost $400)
U.S. Treasury Security -- 0.1%
------------------------------
100 U.S. Treasury Bill, @, 4.85%, 03/16/00 98
(Cost $98)
- -------------------------------------------------------------------------------
Total Short-Term Investments 498
(Cost $498)
- -------------------------------------------------------------------------------
Total Investments -- 98.6% $83,780
(Cost $87,448)
- -------------------------------------------------------------------------------
<CAPTION>
Long Futures Outstanding
- ------------------------
Number Original Notional
of Expiration Notional Value at Unrealized
Contracts Description Date Value 10/31/1999 Appreciation
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
20 5 Year U.S.
Treasury Notes December 1999 $2,158 $2,159 $1
</TABLE>
See notes to financial statements.
16
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA U.S. GOVERNMENT SECURITIES FUND
Portfolio of Investments
October 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------------------------
Long-Term Investments -- 95.8%
- -------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Securities -- 29.6%
---------------------------------
U.S. Treasury Notes and Bonds,
$4,500 6.25%, 08/15/23 $ 4,404
4,500 6.38%, 03/31/01 4,537
5,200 8.75%, 05/15/17 6,411
--------------------------------------------------------------------
Total U.S. Treasury Securities 15,352
(Cost $15,473)
--------------------------------------------------------------------
U.S. Government Agency Obligations -- 10.0%
-------------------------------------------
Federal National Mortgage Association,
2,000 5.75%, 04/15/03 1,964
3,200 6.50%, 08/15/04 3,205
--------------------------------------------------------------------
Total U.S. Government Agency Obligations 5,169
(Cost $5,210)
--------------------------------------------------------------------
Residential Mortgage Backed Securities -- 56.2%
-----------------------------------------------
Mortgage Backed Pass-Through Securities -- 47.7%
3,514 Federal Home Loan Mortgage Corp., Gold Pool G00738,
8.00%, 07/01/27 3,586
Federal National Mortgage Association,
1,900 Pool 313720, 7.50%, 09/01/12 1,925
4,006 Pool 323633, 7.00%, 03/01/29 3,934
2,581 Pool 323788, 6.50%, 06/01/14 2,531
3,996 Pool 506654, 6.50%, 09/01/29 3,828
2,600 Pool 513504, 8.00%, 09/01/29 2,649
Government National Mortgage Association,
4,399 Pool 493673, 6.50%, 12/15/28 4,204
2,097 Pool 512996, 7.50%, 07/15/29 2,102
---------
24,759
Collateralized Mortgage Obligations -- 8.5%
1,260 Federal National Mortgage Association, Ser. 1993-250,
Class A, 6.15%, 09/25/16 1,253
Federal Home Loan Mortgage Corp.,
1,300 Ser. 2035, Class PH, 6.15%, 08/15/18 1,289
2,000 Ser. 2124, Class GD, 5.50%, 05/15/11 1,880
---------
4,422
---------
Total Residential Mortgage Backed Securities 29,181
(Cost $29,412)
- -------------------------------------------------------------------------------
Total Long-Term Investments 49,702
(Cost $50,095)
- -------------------------------------------------------------------------------
Short-Term Investments -- 3.8%
- -------------------------------------------------------------------------------
Repurchase Agreements -- 3.8%
-----------------------------
1,975 Greenwich Capital Markets, Inc., 5.28%, due 11/01/99
(Dated 10/29/99, Proceeds $1,976, Secured by FNMA,
$1,962, 5.00%, due 07/18/27; Market Value $2,015) 1,975
(Cost $1,975)
- -------------------------------------------------------------------------------
Total Investments -- 99.6% $51,677
(Cost $52,070)
- -------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
17
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA BOND FUND
Portfolio of Investments
October 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- -------------------------------------------------------------------------------
<S> <C> <C>
Long-Term Investments -- 97.3%
- -------------------------------------------------------------------------------
U.S. Treasury Securities -- 16.6%
---------------------------------
U.S. Treasury Notes and Bonds,
$1,200 5.50%, 08/15/28 - $1,067
750 5.75%, 06/30/01 749
3,000 6.38%, 08/15/02 @ 3,037
750 6.88%, 05/15/06 778
4,000 8.13%, 08/15/19 - 4,711
-----------------------------------------------------------------
Total U.S. Treasury Securities 10,342
(Cost $10,453)
-----------------------------------------------------------------
U.S. Government Agency Obligations -- 4.7%
------------------------------------------
1,500 Federal Home Loan Bank, 5.13%, 02/26/02 - 1,465
1,500 Federal National Mortgage Association, 6.00%, 05/15/08 1,430
-----------------------------------------------------------------
Total U.S. Government Agency Obligations 2,895
(Cost $2,904)
-----------------------------------------------------------------
Corporate Notes & Bonds -- 27.6%
--------------------------------
Automotive -- 3.6%
1,500 Ford Motor Credit Co., 6.70%, 07/16/04 - 1,487
750 TRW Inc., #, 6.45%, 06/15/01 - 746
----------
2,233
Banking -- 3.5%
500 Hartford Financial Services Group, 6.38%, 11/01/08 - 468
Korea Development Bank (South Korea),
500 6.50%, 11/15/02 480
650 7.13%, 09/17/01 - 645
675 U.S. Bank NA, 5.70%, 12/15/08 - 607
----------
2,200
Business Services -- 1.2%
750 Comdisco Inc., 7.25%, 09/01/02 747
Diversified -- 3.8%
500 Tenneco Inc., 7.50%, 04/15/07 491
750 Textron Inc., 6.38%, 07/15/04 - 734
Tyco International Group SA (Luxemburg),
500 5.88%, 11/01/04 - 471
650 6.13%, 06/15/01 - 642
----------
2,338
Entertainment/Leisure -- 0.6%
425 USA Networks, Inc., 6.75%, 11/15/05 403
Financial Services -- 1.2%
750 Lehman Brothers Holdings Inc., MTN, 6.38%, 03/15/01 - 747
Food/Beverage Products -- 1.2%
750 Coca-Cola Enterprises, 7.13%, 09/30/09 - 748
Insurance -- 1.4%
900 Conseco Inc., 8.50%, 10/15/02 902
Oil & Gas -- 2.2%
1,350 Amerada Hess Corp., 7.88%, 10/01/29 1,343
</TABLE>
See notes to financial statements.
18
<PAGE>
CHASE VISTA BOND FUND
Portfolio of Investments (Continued)
October 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
<S> <C> <C>
Retailing -- 2.0%
$ 750 Federated Department Stores, 10.00%, 02/15/01 - $ 779
500 Kroger Co., 6.38%, 03/01/08 - 462
---------
1,241
Telecommunications -- 5.0%
1,200 AT&T Canada, Inc., #, 7.65%, 09/15/06 - 1,218
650 AT&T Capital Corp., MTN, 6.25%, 05/15/01 - 644
Sprint Capital Corp.,
800 6.13%, 11/15/08 - 742
500 6.38%, 05/01/09 - 470
---------
3,074
Utilities -- 1.9%
500 National Rural Utilities Cooperative Finance Corp.,
5.50%, 01/15/05 - 470
750 TXU Eastern Funding (United Kingdom), #, 6.15%,
05/15/02 739
---------
1,209
-------------------------------------------------------------------
Total Corporate Notes & Bonds 17,185
(Cost $17,407)
-------------------------------------------------------------------
Residential Mortgage Backed Securities -- 36.0%
-----------------------------------------------
Mortgage Backed Pass-Through Securities -- 34.5%
Federal Home Loan Mortgage Corp.,
399 Gold Pool N98213, 5.50%, 02/01/06 379
941 Gold Pool N98214, 5.50%, 02/01/06 895
Federal National Mortgage Association,
3,327 Pool 252093, 6.50%, 11/01/28 3,188
1,204 Pool 252339, 6.00%, 03/01/29 1,122
241 Pool 252435, 6.00%, 05/01/14 232
423 Pool 303784, 7.00%, 03/01/11 422
1,000 Pool 313419, 8.50%, 12/01/26 1,036
3,684 Pool 323633, 7.00%, 03/01/29 3,617
2,449 Pool 323645, 7.50%, 04/01/29 2,455
622 Pool 323688, 7.50%, 03/01/29 623
1,752 Pool 323714, 7.00%, 04/01/14 1,749
1,214 Pool 484753, 6.50%, 03/01/29 1,163
2,750 TBA, 6.00%, 10/01/14 2,645
2,000 Government National Mortgage Association, TBA,
7.00%, 12/01/29 1,962
---------
21,488
Collateralized Mortgage Obligation -- 1.5%
1,000 Federal National Mortgage Association, Ser. 1999-17,
Class PC, 6.00%, 12/25/22 - 963
-------------------------------------------------------------------
Total Residential Mortgage Backed Securities 22,451
(Cost $22,948)
-------------------------------------------------------------------
Commercial Mortgage Backed Securities -- 5.2%
---------------------------------------------
Bear Stearns Commercial Mortgage Securities,
1,200 Ser. 1999-C1, Class A2, 6.02%, 02/14/09 - 1,110
989 Ser. 1999-WF2, Class A1, 6.80%, 09/15/08 - 979
500 GS Mortgage Securities Corp., Ser. 1997-GL, Class A2D,
6.97%, 07/13/30 495
</TABLE>
See notes to financial statements.
19
<PAGE>
CHASE VISTA BOND FUND
Portfolio of Investments (Continued)
October 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- -----------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -----------------------------------------------------------------------------------
<S> <C> <C>
$ 650 Nationslink Funding Corp., Ser. 1999-SL, Class A2, 6.10%,
12/10/01 - $ 642
----------------------------------------------------------------------
Total Commercial Mortgage Backed Securities 3,226
(Cost $3,374)
----------------------------------------------------------------------
Asset Backed Securities -- 7.2%
-------------------------------
1,250 Carco Auto Loan Master Trust, Ser. 1991-1, Class A2,
5.78%, 03/15/04 - 1,236
1,000 Ford Credit Auto Loan Master Trust, Ser. 1996-1,
Class A, 5.50%, 02/15/03 - 991
1,000 GE Capital Mortgage Services, Inc., Ser. 1999-HE3,
Class A2, 7.00%, 08/25/13 - 1,000
500 Nomura CBO, LTD, Ser. 1997-1, Class A2, #, 6.67%,
05/15/09 504
750 Residential Asset Securities Corp., Ser. 1999-KS2,
Class AI4, 6.80%, 10/25/23 748
----------------------------------------------------------------------
Total Asset Backed Securities 4,479
(Cost $4,505)
- -----------------------------------------------------------------------------------
Total Long-Term Investments 60,578
(Cost $61,591)
- -----------------------------------------------------------------------------------
Short-Term Investments -- 10.5%
- -----------------------------------------------------------------------------------
U.S. Treasury Security -- 0.3%
------------------------------
200 U.S. Treasury Bill, @, 4.67%, 12/09/99 199
(Cost $199)
Repurchase Agreement -- 10.2%
-----------------------------
6,355 Greenwich Capital Markets, Inc., 5.28%, due 11/01/99
(Dated 10/29/99, Proceeds $6,358, Secured by FHLMC,
FNMA and GNMA, $6,842, 0.00% through 5.76%, due
12/15/20 through 05/16/29; Market Value $6,486) 6,355
(Cost $6,355)
- -----------------------------------------------------------------------------------
Total Short-Term Investments 6,554
(Cost $6,554)
- -----------------------------------------------------------------------------------
Total Investments -- 107.8% $67,132
(Cost $68,145)
- -----------------------------------------------------------------------------------
<CAPTION>
Long Futures Outstanding
- -----------------------------------------------------------------------------------
Number Original Notional
of Expiration Notional Value at Unrealized
Contracts Description Date Value 10/31/1999 Depreciation
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
25 U.S. Treasury Bonds December 99 $2,849 $2,840 $(9)
</TABLE>
See notes to financial statements.
20
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA SHORT-TERM BOND FUND
Portfolio of Investments
October 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- ---------------------------------------------------------------------------------
Long-Term Investments -- 89.1%
- ---------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Securities -- 34.8%
---------------------------------
U.S. Treasury Notes and Bonds,
$2,500 4.63%, 12/31/00 $2,471
5,000 5.00%, 02/28/01 4,955
3,500 5.00%, 04/30/01 3,463
3,500 5.63%, 09/30/01 3,488
2,000 5.75%, 06/30/01 1,998
2,000 6.38%, 08/15/02 2,025
--------------------------------------------------------------------
Total U.S. Treasury Securities 18,400
(Cost $18,452)
--------------------------------------------------------------------
U.S. Government Agency Obligations -- 15.8%
-------------------------------------------
Federal Home Loan Bank,
2,000 5.13%, 02/26/02 1,953
3,500 5.50%, 08/13/01 3,457
3,000 Federal National Mortgage Association, 5.75%, 04/15/03 2,947
--------------------------------------------------------------------
Total U.S. Government Agency Obligations 8,357
(Cost $8,407)
--------------------------------------------------------------------
Corporate Notes & Bonds -- 16.1%
--------------------------------
Automotive -- 1.9%
1,000 TRW Inc., #, 6.45%, 06/15/01 995
Business Services -- 1.3%
750 Comdisco Inc., 5.95%, 04/30/02 726
Diversified -- 1.9%
1,000 Tyco International Group SA (Luxemburg), 6.13%,
06/15/01 987
Financial Services -- 1.9%
1,000 Lehman Brothers Holdings, Inc., MTN, 6.38%, 03/15/01 996
Insurance -- 1.4%
750 Conseco Inc., MTN, 7.60%, 06/21/01 743
Oil & Gas -- 1.9%
1,000 El Paso Energy Corp., #, 6.63%, 07/15/01 995
Retailing -- 3.8%
1,000 Federated Department Stores, 10.00%, 02/15/01 1,039
1,000 Kroger Co., #, 6.34%, 06/01/01 988
---------
2,027
Telecommunications -- 1.0%
550 AT&T Capital Corp., MTN, 6.25%, 05/15/01 545
Utilities -- 1.0%
550 TXU Eastern Funding (United Kingdom), #, 6.15%,
05/15/02 542
- ----------------------------------------------------------------------------------
Total Corporate Notes & Bonds 8,556
(Cost $8,616)
- ----------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
21
<PAGE>
CHASE VISTA SHORT-TERM BOND FUND
Portfolio of Investments (Continued)
October 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- ----------------------------------------------------------------------------------
Long-Term Investments -- Continued
- ----------------------------------------------------------------------------------
<S> <C> <C>
Residential Mortgage Backed Securities -- 2.3%
----------------------------------------------
Collateralized Mortgage Obligations -- 2.3%
$1,212 Federal National Mortgage Association, Ser. 1993-250,
Class A, 6.15%, 09/25/16 $ 1,205
(Cost $1,204)
Commercial Mortgage Backed Securities -- 1.8%
---------------------------------------------
362 Credit Suisse First Boston Mortgage Securities Corp.,
Ser. 1997-SPCE, Class A, 6.65%, 06/20/03 361
600 Nationslink Funding Corp., Ser. 1999-SL, Class A2, 6.10%,
12/10/01 593
---------------------------------------------------------------------
Total Commercial Mortgage Backed Securities 954
(Cost $962)
---------------------------------------------------------------------
Asset Backed Securities -- 18.3%
--------------------------------
1,500 Arcadia Automobile Receivables, Ser. 1997-B, Class A5,
6.70%, 02/15/05 1,504
1,500 Carco Auto Loan Master Trust, Ser. 1991-1, Class A2,
5.78%, 03/15/04 1,483
1,500 Citibank Credit Card Master Trust I, Ser. 1997-2, Class A,
6.55%, 02/15/04 1,499
1,000 EQCC Home Equity Loan Trust, Ser. 1999-3, Class A2F,
6.89%, 07/25/13 992
1,500 Ford Credit Auto Loan Masters Trust, Ser. 1996-1,
Class A, 5.50%, 02/15/03 1,486
1,000 GE Capital Mortgage Services, Inc., Ser. 1999-HE3,
Class A2, 7.00%, 09/25/13 1,000
1,000 Lehman Home Equity Loan Trust, Ser. 1998-2, Class M2,
FRN, 6.01%, 04/25/28 996
750 Residential Asset Securities Corp., Ser. 1999-KS2,
Class AI4, 6.80%, 10/25/23 748
---------------------------------------------------------------------
Total Asset Backed Securities 9,708
(Cost $9,776)
- ----------------------------------------------------------------------------------
Total Long-Term Investments 47,180
(Cost $47,417)
- ----------------------------------------------------------------------------------
Short-Term Investments -- 1.7%
- ----------------------------------------------------------------------------------
U.S. Treasury Security -- 0.4%
------------------------------
200 U.S. Treasury Bill, 4.67%, 12/09/99 199
(Cost $199)
Repurchase Agreement -- 1.3%
----------------------------------------------------------------------
710 Greenwich Capital Markets, Inc., 5.28%, due 11/01/99
(Dated 10/29/99, Proceeds $710, Secured by FHLMC,
$743, 5.76%, due 05/15/29; Market Value $727) 710
(Cost $710)
- ----------------------------------------------------------------------------------
Total Short-Term Investments 909
(Cost $909)
- ----------------------------------------------------------------------------------
Total Investments -- 90.8% $48,089
(Cost $48,326)
- ----------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
22
<PAGE>
- --------------------------------------------------------------------------------
CHASE VISTA STRATEGIC INCOME FUND
Portfolio of Investments
October 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- -------------------------------------------------------------------------------
Long-Term Investments -- 47.9%
- -------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Securities -- 5.8%
--------------------------------
U.S. Treasury Notes and Bonds,
$ 300 4.75%, 11/15/08 - $ 272
175 4.88%, 03/31/01 - 173
150 5.00%, 04/30/01 148
350 5.25%, 05/31/01 - 347
125 5.25%, 05/15/04 - 121
100 5.25%, 11/15/28 - 86
75 5.50%, 08/15/28 - 67
170 6.00%, 08/15/09 - 170
50 8.13%, 08/15/19 - 59
-------------------------------------------------------------------
Total U.S. Treasury Securities 1,443
(Cost $1,456)
-------------------------------------------------------------------
U.S. Government Agency Obligations -- 1.6%
------------------------------------------
400 Federal National Mortgage Association, 6.50%, 08/15/04 401
(Cost $401)
Foreign Government Securities -- 8.2%
-------------------------------------
125 Bulgaria Government (Interest Arrears Bond), (Bulgaria),
FRB, 6.50%, 07/28/11 95
Federal Republic of Brazil, (Brazil),
100 14.50%, 10/15/09 103
179 C Bonds, PIK, 8.00%, 04/15/14 120
114 Kingdom of Morocco Consolidated Loan, Tranche A,
(Morocco), FRB, 5.78%, 01/01/09 99
381EU Netherlands Government, (Netherlands), 5.75%,
09/15/02 435
Republic of Argentina, (Argentina),
114 FRB, PDI, 6.81%, 03/31/05 101
100 11.25%, 05/24/04 97
250 Republic of Colombia, (Colombia), FRB, 12.47%,
08/13/05 234
320 Republic of Panama, (Panama), IRB, SUB, 4.00%,
07/17/14 239
Republic of Peru, (Peru),
250 Discount Bond, FRB, 6.00%, 03/08/27 157
140 PDI, SUB, 4.50%, 03/07/17 88
300 United Mexican States, (Mexico), Discount Bond, FRB,
5.88%, 12/31/19 263
-------------------------------------------------------------------
Total Foreign Government Securities 2,031
(Cost $2,008)
-------------------------------------------------------------------
Corporate Notes & Bonds -- 24.0%
--------------------------------
Automotive -- 1.1%
100 Ford Motor Co., 7.45%, 07/16/31 - 98
50 Ford Motor Credit Co., 6.70%, 07/16/04 - 50
100 General Motors Acceptance Corp., 5.50%, 01/14/02 - 98
30 Lear Corp., #, 8.11%, 05/15/09 29
-------
275
Banking -- 0.5%
95 Banco Nacional Com Ext, (Mexico), 7.25%, 02/02/04 87
25 Sovereign Bancorp, 6.63%, 03/15/01 - 24
25 US Bank NA, 5.70%, 12/15/08 - 22
-------
133
</TABLE>
See notes to financial statements.
23
<PAGE>
CHASE VISTA STRATEGIC INCOME FUND
Portfolio of Investments (Continued)
October 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- -------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------
<S> <C> <C>
Business Services -- 0.1%
$ 25 Comdisco, Inc., 5.95%, 04/30/02 - $ 24
Chemicals -- 0.6%
Lyondell Chemical Co.,
25 Ser. A, #, 9.63%, 05/01/07 25
50 Ser. B, #, 9.88%, 05/01/07 49
100 Pioneer Americas Acquisition Corp., Ser. B, 9.25%,
06/15/07 78
-------
152
Computers/Computer Hardware -- 0.3%
75 Intersil Corp., #, 13.25%, 08/15/09 80
Consumer Products/Services -- 2.2%
200 Drypers Corp., Ser. B, 10.25%, 06/15/07 162
250 Sampoerna International Finance Co., #, (Indonesia),
8.38%, 06/15/06 183
125 Scotts Co., #, 8.63%, 01/15/09 118
100 WestPoint Stevens, Inc., 7.88%, 06/15/05 93
-------
556
Diversified -- 0.9%
80 Gentek, Inc., #, 11.00%, 08/01/09 80
25 SCG Holding & Semiconductor Co., #, 12.00%, 08/01/09 26
100 Textron, Inc., 6.38%, 07/15/04 - 98
25 Tyco International Group, SA (Luxemburg), 6.88%,
01/15/29 - 22
-------
226
Electronics/Electrical Equipment -- 0.2%
40 Fisher Scientific International, 9.00%, 02/01/08 38
Energy -- 0.1%
50 Empire Gas Corp., 12.88%, 07/15/04 32
Entertainment/Leisure -- 1.3%
10 Ameristar Casinos, Inc., Ser. B, 10.50%, 08/01/04 10
90 Harrahs Operating Co., Inc., 7.88%, 12/15/05 86
30 Hollywood Casino Shreveport, #, 13.00%, 08/01/06 31
30 International Game Technology, 8.38%, 05/15/09 29
100 Mohegan Tribal Gaming Authority, 8.13%, 01/01/06 96
40 Premier Parks, Inc., 9.75%, 06/15/07 39
25 SFX Entertainment, Inc., Ser. B, 9.13%, 02/01/08 23
-------
314
Environmental Services -- 0.5%
Allied Waste North America, Inc.,
25 7.63%, 01/01/06 22
15 7.88%, 01/01/09 13
25 Safety-Kleen Corp., 9.25%, 05/15/09 24
80 Waste Management, 7.00%, 10/01/04 68
-------
127
Financial Services -- 0.6%
120 Banco Nac De Desen Econo, (Brazil), FRN, 13.64%,
06/16/08 104
25 Goldman Sachs Group, 6.65%, 05/15/09 24
25 Lehman Brothers Holdings, Inc., 6.63%, 04/01/04 - 24
-------
152
</TABLE>
See notes to financial statements.
24
<PAGE>
CHASE VISTA STRATEGIC INCOME FUND
Portfolio of Investments (Continued)
October 31, 1999
(Amounts in Thousands)
<TABLE>
Principal
Amount
(USD) Issuer Value
- -------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------
<S> <C> <C>
Health Care/Health Care Services -- 1.3%
$ 80 Iasis Healthcare Corp., #, 13.00%, 10/15/09 $ 80
90 Triad Hospitals Holdings, Inc., #, 11.00%, 05/15/09 88
100 UNILAB Corp., #, 11.00%, 04/01/06 109
40 UNILAB Finance Corp., #, 12.75%, 10/01/09 40
-------
317
Hotels & Other Lodging -- 0.1%
15 Extended Stay America, Inc., 9.15%, 03/15/08 14
Industrial Components -- 0.1%
25 Conoco, Inc., 5.90%, 04/15/04 - 24
Insurance -- 0.4%
100 Conseco, Inc., 8.50%, 10/15/02 100
Machinery & Engineering Equipment -- 0.1%
20 International Knife & Saw, Inc., #, 11.38%, 11/15/06 15
Manufacturing -- 0.4%
65 J.B. Poindexter & Co., 12.50%, 05/15/04 61
50 Transdigm, Inc., 10.38%, 12/01/08 46
-------
107
Metals/Mining -- 0.4%
100 Kaiser Aluminum & Chemical Corp., 12.75%, 02/01/03 100
Multi-Media -- 0.8%
60 Charter Communications Holdings, LLC, 8.63%, 04/01/09 56
100 Jones Intercable, Inc., 7.63%, 04/15/08 - 100
15 Spanish Broadcasting System, 9.63%, 11/01/09 15
25 USA Networks, Inc., 6.75%, 11/15/05 24
--------
195
Oil & Gas -- 2.4%
200 Amoco Canada, (Canada), 7.25%, 12/01/02 203
100 Canadian Forest Oil LTD., (Canada), 8.75%, 09/15/07 95
40 Newpark Resources, Inc. Ser. B, 8.63%, 12/15/07 37
100 Occidental Petroleum Corp., 7.38%, 11/15/08 - 99
80 Ocean Energy, Inc., 10.38%, 10/15/05 84
65 Pool Energy Services, Co., Ser. B, 8.63%, 04/01/08 67
20 Vintage Petroleum, Inc., 9.75%, 06/30/09 20
--------
605
Packaging -- 0.6%
150 Ball Corp., 8.25%, 08/01/08 - 145
Paper/Forest Products -- 0.2%
50 Buckeye Technologies, Inc., 8.00%, 10/15/10 46
Restaurants/Food Services -- 0.9%
100 DGS International Finance Co., BV, (Netherlands),
10.00%, 06/01/07 69
50 NE Restaurant Co., Inc., 10.75%, 07/15/08 46
100 Sbarro, Inc., #, 11.00%, 09/15/09 98
--------
213
Retailing -- 0.7%
120 J. Crew Group, SUB, 0.00%, 10/15/08 56
100 JH Heafner Co., Ser. D, 10.00%, 05/15/08 92
35 Stater Brothers Holdings, Inc., 10.75%, 08/15/06 36
--------
184
</TABLE>
See notes to financial statements.
25
<PAGE>
CHASE VISTA STRATEGIC INCOME FUND
Portfolio of Investments (Continued)
October 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- -------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------
<S> <C> <C>
Steel -- 0.3%
$ 50 AK Steel Corp., 9.13%, 12/15/06 $ 50
20 Sheffield Steel Corp., Ser. B, 11.50%, 12/01/05 16
-------
66
Telecommunications -- 6.2%
70 Adelphia Business Solution, 12.00%, 11/01/07 72
35 Advanced Radio Telecom Corp., 14.00%, 02/15/07 29
120 Airgate PCS, Inc., SUB, 0.00%, 10/01/09 74
100 AT&T Canada, Inc., (Canada), #, 7.65%, 09/15/06 - 102
100 AT&T Corp., 5.63%, 03/15/04 - 96
75 BTI Telecom Corp., 10.50%, 09/15/07 64
30 Call-Net Enterprises, Inc., 9.38%, 05/15/09 28
100 Facilicom International, 10.50%, 01/15/08 86
10 Globenet Communications Group LTD, #, 13.00%,
07/15/07 10
15 Insight Midwest / Insight Cap, #, 9.75%, 10/01/09 15
75 Lucent Technologies, 6.45%, 03/15/29 - 67
75 Nextel Partners, Inc., SUB, 0.00%, 02/01/09 47
65 PageMart Nationwide, SUB, 0.00%, 02/01/05 56
155 PageMart Wireless, Inc., Class A, 0.00%, 02/01/08 46
100 Primus Telecommunications Group, #, 12.75%, 10/15/09 99
50 Sprint Capital Corp., 6.38%, 05/01/09 - 47
100 Startec Global Communications Corp., 12.00%, 05/15/08 81
10 Telecorp PCS, Inc., #, SUB, 0.00%, 04/15/09 6
275 TPSA Finance BV, (Netherlands), #, 7.75%, 12/10/08 261
20 Triton PCS, Inc., SUB, 0.00%, 05/01/08 14
115 US Unwired, Inc., SUB, #, 0.00%, 11/01/09 61
10 Williams Communications Group, Inc., 10.88%, 10/01/09 10
80 Winstar Communications, Inc., 14.50%, 10/15/05 106
50 Winstar Equipment Corp., 12.50%, 03/15/04 52
-------
1,529
Transportation -- 0.3%
75 International Shipholding Corp., 7.75%, 10/15/07 68
Utilities -- 0.4%
45 Calpine Corp., 7.75%, 04/15/09 42
25 National Rural Utilities Cooperative Finance Corp.,
5.50%, 01/15/05 - 23
25 TXU Eastern Funding, (United Kingdom), #, 6.45%,
05/15/05 - 25
-------
90
-------
Total Corporate Bonds and Notes 5,927
(Cost $6,047)
- --------------------------------------------------------------------------------
Convertible Corporate Notes & Bonds -- 0.2%
- --------------------------------------------------------------------------------
Computers/Computer Hardware --
150 Network Associates, Inc., 0.00%, 02/13/18 49
(Cost $50)
</TABLE>
See notes to financial statements.
26
<PAGE>
CHASE VISTA STRATEGIC INCOME FUND
Portfolio of Investments (Continued)
October 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
- -------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------
<S> <C> <C>
Residential Mortgage Backed Securities -- 6.8%
----------------------------------------------
Mortgage Backed Pass-Through Securities -- 6.8%
Federal National Mortgage Association,
$128 Pool 252254, 6.00%, 02/01/29 $ 120
49 Pool 252567, 6.50%, 07/01/14 48
51 Pool 252568, 7.50%, 06/01/29 50
24 Pool 313720, 7.50%, 09/01/12 - 24
41 Pool 323633, 7.00%, 03/01/29 41
36 Pool 323714, 7.00%, 04/01/14 36
11 Pool 413585, 8.00%, 02/01/28 11
73 Pool 484753, 6.50%, 03/01/29 70
73 Pool 487068, 7.50%, 03/01/29 73
72 Pool 488518, 6.50%, 05/01/14 70
34 Pool 493748, 6.00%, 05/01/14 33
50 Pool 503097, 6.50%, 06/01/29 48
99 Pool 503599, 6.50%, 06/01/29 95
100 TBA, 6.00%, 10/01/14 96
100 TBA, 6.00%, 11/15/29 93
150 TBA, 6.50%, 10/01/29 144
150 TBA, 7.00%, 11/15/29 147
150 TBA, 8.00%, 11/12/29 153
Government National Mortgage Association,
72 Pool 472800, 6.50%, 05/15/29 69
60 Pool 492730, 6.50%, 05/15/29 57
100 Pool 492738, 7.00%, 06/15/29 98
100 Pool 509941, 7.00%, 06/15/29 97
---------------------------------------------------------------------
Total Residential Mortgage Backed Securities 1,673
(Cost $1,685)
---------------------------------------------------------------------
Commercial Mortgage Backed Securities -- 0.7%
---------------------------------------------
49 Bear Stearns Commercial Mortgage Securities, Inc.,
Ser. 1999-WF2, Class A1, 6.80%, 09/15/08 - 49
25 GS Mortgage Securities Corp. II, Ser. 1997-GL, Class A2D,
6.97%, 07/13/30 - 25
100 Nationslink Funding Corp., Ser. 1999-SL, Class A3, 6.30%,
12/10/02 - 98
---------------------------------------------------------------------
Total Commercial Mortgage Backed Securities 172
(Cost $176)
---------------------------------------------------------------------
Asset Backed Securities -- 0.6%
-------------------------------
25 American Express Credit Account Master Trust,
Ser. 1997-1, Class A, 6.40%, 04/15/05 - 25
Citibank Credit Card Master Trust I
25 Ser. 1997-2, Class A, 6.55%, 02/15/04 - 25
50 Ser. 1998-3, Class A, 5.80%, 02/07/05 - 49
50 Discover Card Master Trust I, Ser. 1998-2, Class A, 5.80%,
09/16/03 - 49
---------------------------------------------------------------------
Total Asset Backed Backed Securities 148
(Cost $151)
---------------------------------------------------------------------
</TABLE>
See notes to financial statements.
27
<PAGE>
CHASE VISTA STRATEGIC INCOME FUND
Portfolio of Investments (Continued)
October 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
- -----------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -----------------------------------------------------------------------------------
<S> <C> <C>
Warrants -- 0.0%
----------------
1 Startec Global Communications Corp., expires 05/15/08, $ --
(Cost $0)
- -----------------------------------------------------------------------------------
Total Long-Term Investments 11,844
(Cost $11,974)
- -----------------------------------------------------------------------------------
Short-Term Investments -- 5.9%
- -----------------------------------------------------------------------------------
Principal
Amount
(USD)
Foreign Sovereign Obligation -- 0.5%
------------------------------------
64,418 Turkish Lira Structured Note, (principal in Turkish
Lira, in millions), 63.00%, 01/20/00 125
(USD) (Cost $134)
U.S. Government Agency Obligation -- 2.7%
-----------------------------------------
$ 684 Federal Farm Credit Bank, 5.16%, 11/01/99 - 684
(Cost $684)
Time Deposit -- 1.0%
--------------------
236 Westdeutsche Landesbank, 5.19%, 11/01/99 236
(Cost $236)
Commercial Paper -- 1.7%
------------------------
183 American Express Credit Corp., 5.22%, 11/01/99 183
150 Bell Atlantic Network Funding Corp., 5.30%, 11/08/99 150
100 Ford Motor Credit Co., 5.25%, 11/04/99 100
---------------------------------------------------------------------
Total Commercial Paper 433
(Cost $433)
- -----------------------------------------------------------------------------------
Total Short-Term Investments 1,478
(Cost $1,487)
- -----------------------------------------------------------------------------------
Total Investments -- 53.8% $13,322
(Cost $13,461)
- -----------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
28
<PAGE>
CHASE VISTA STRATEGIC INCOME FUND
Portfolio of Investments (Continued)
October 31, 1999
Summary of Investments by Country, October 31, 1999
<TABLE>
<CAPTION>
Country % of Investment Securities
- ---------------------------------------------
<S> <C>
United States 75.9%
Netherlands 5.7%
Canada 3.2%
Mexico 2.6%
Brazil 2.5%
Colombia 1.8%
Panama 1.8%
Peru 1.8%
Argentina 1.5%
Indonesia 1.4%
Bulgaria 0.7%
Morocco 0.7%
Luxemburg 0.2%
United Kingdom 0.2%
- ---------------------------------------------
Total 100.0%
- ---------------------------------------------
</TABLE>
INDEX:
# -- Security may only be sold to qualified institutional buyers.
- - -- All or a portion of this security is segregated for TBAs.
@ -- All or a portion of this security is segregated for futures.
CBO -- Collateralized Bond Obligation.
EU -- EURO denominated security.
FHLMC -- Federal Home Loan Mortgage Corporation.
FNMA -- Federal National Mortgage Association.
FRB -- Floating Rate Bond: The maturity shown is the final maturity date. The
rate shown is the rate in effect at October 31, 1999.
FRN -- Floating Rate Note: The maturity shown is the final maturity date. The
rate shown is the rate in effect at October 31, 1999.
GNMA -- Government National Mortgage Association.
IRB -- Interest Reduction Bond.
MTN -- Medium Term Note.
PDI -- Past Due Interest Bond.
PIK -- Payment-In-Kind Bond.
SUB -- Step-Up Bond.
TBA -- To be announced.
See notes to financial statements.
29
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES October 31, 1999
(Amounts in Thousands, Except Per Share Amounts)
<TABLE>
<CAPTION>
U.S. Treasury U.S. Government
Income Securities Bond
Fund Fund Fund
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value (Note 1) $ 83,780 $ 51,677 $67,132
Cash ...................................... 46 1 17
Other assets .............................. 1 -- 1
Receivables:
Investment securities sold ............... -- -- 730
Interest ................................. 1,349 521 724
Fund shares sold ......................... 33 70 23
Variation margin for futures ............. 10 -- 33
- ----------------------------------------------------------------------------------------------
Total Assets ............................ 85,219 52,269 68,660
- ----------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased .......... -- -- 6,103
Fund shares redeemed ..................... 88 100 72
Dividends ................................ 63 239 117
Accrued liabilities: (Note 2)
Investment advisory fees .................. 11 -- --
Administration fees ....................... 11 -- 3
Shareholder servicing fees ................ 10 10 5
Distribution fees ......................... 10 -- 7
Custody fees .............................. 19 11 22
Other ..................................... 79 47 80
- ----------------------------------------------------------------------------------------------
Total Liabilities ....................... 291 407 6,409
- ----------------------------------------------------------------------------------------------
NET ASSETS:
Paid in capital ........................... 94,984 54,266 65,211
Accumulated undistributed/
(overdistributed) net investment
income .................................... (64) (13) (18)
Accumulated net realized loss on
investment and futures transactions ....... (6,325) (1,998) (1,920)
Net unrealized depreciation of
investments and futures contracts ......... (3,667) (393) (1,022)
- ----------------------------------------------------------------------------------------------
Total Net Assets ........................ $84,928 $51,862 $62,251
- ----------------------------------------------------------------------------------------------
Shares of beneficial interest outstanding
($.001 par value; unlimited number of
shares authorized):
Class A Shares ............................ 6,447 262 3,454
Class B Shares ............................ 1,513 -- 424
Class I Shares ............................ -- 5,110 2,241
Net Asset Value:
Class A Shares (and redemption price) ..... $ 10.67 $ 9.67 $ 10.18
Class B Shares* ........................... $ 10.67 -- $ 10.21
Class I Shares (and redemption price) ..... -- $ 9.65 $ 10.16
Class A Maximum Public Offering Price
Per Share (net asset value per share/
95.5%) .................................... $ 11.17 $ 10.13 $ 10.66
- ----------------------------------------------------------------------------------------------
Cost of investments ........................ $87,448 $52,070 $68,145
- ----------------------------------------------------------------------------------------------
</TABLE>
*Redemption price may be reduced by contingent deferred sales charge.
See notes to financial statements.
30
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES October 31, 1999
(Continued)
(Amounts in Thousands, Except Per Share Amounts)
<TABLE>
<CAPTION>
Short-Term Strategic
Bond Income
Fund Fund
- -----------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Investment securities, at value (Note 1) ............. $ 48,089 $ 13,322
Cash ................................................. 1 30
Receivables:
Investment securities sold .......................... 4,535 --
Interest ............................................ 615 253
Fund shares sold .................................... 116 12,001
Open forward currency contracts ..................... -- 2
Expense reimbursement from Distributor .............. -- 47
- -----------------------------------------------------------------------------------
Total Assets ....................................... 53,356 25,655
- -----------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased ..................... -- 737
Fund shares redeemed ................................ 229 --
Dividends ........................................... 91 112
Accrued liabilities: (Note 2)
Shareholder servicing fees ........................... 3 --
Distribution fees .................................... 5 2
Custody fees ......................................... 12 20
Other ................................................ 70 34
- -----------------------------------------------------------------------------------
Total Liabilities .................................. 410 905
- -----------------------------------------------------------------------------------
NET ASSETS:
Paid in capital ...................................... 54,694 25,069
Accumulated undistributed/(overdistributed) net
investment income .................................... (10) (90)
Accumulated net realized loss on investment and
futures transactions ................................. (1,501) (92)
Net unrealized depreciation of investments,
futures contracts and foreign currency translations (237) (137)
- -----------------------------------------------------------------------------------
Total Net Assets ................................... $52,946 $24,750
- -----------------------------------------------------------------------------------
Shares of beneficial interest outstanding ($.001 par
value; unlimited number of shares authorized):
Class A Shares ....................................... 2,241 326
Class B Shares ....................................... -- 554
Class C Shares ....................................... -- 363
Class I Shares ....................................... 2,776 108
Class M Shares ....................................... 307 1,229
Net Asset Value:
Class A Shares (and redemption price) ................ $ 9.94 $ 9.59
Class B Shares* ...................................... -- $ 9.59
Class C Shares* ...................................... -- $ 9.59
Class I Shares (and redemption price) ................ $ 9.95 $ 9.59
Class M Shares (and redemption price) ................ $ 9.94 $ 9.59
Class A Maximum Public Offering Price Per Share
(net asset value per share/ 98.5% and 95.5%) ......... $ 10.09 $ 10.04
- -----------------------------------------------------------------------------------
Class M Maximum Public Offering Price Per Share
(net asset value per share/98.5% and 97.0%) .......... $ 10.09 $ 9.89
- -----------------------------------------------------------------------------------
Cost of investments ................................... $48,326 $13,461
- -----------------------------------------------------------------------------------
</TABLE>
* Redemption price may be reduced by contingent deferred sales charge.
See notes to financial statements.
31
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the year ended October 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
U.S. Treasury U.S. Government
Income Securities Bond
Fund Fund Fund
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INTEREST INCOME: $ 6,324 $ 3,187 $ 3,838
EXPENSES: (Note 2)
Investment advisory fees .............. 262 168 191
Administration fees ................... 132 84 95
Shareholder servicing fees ............ 221 140 159
Distribution fees ..................... 302 8 128
Custodian fees ........................ 56 57 83
Printing and postage .................. 27 18 23
Professional fees ..................... 36 32 36
Registration expenses ................. 30 35 51
Transfer agent fees ................... 178 37 91
Trustees' fees and expenses ........... 4 3 3
Other ................................. -- -- 12
- --------------------------------------------------------------------------------------------
Total expenses ...................... 1,248 582 872
- --------------------------------------------------------------------------------------------
Less amounts waived (Note 2E) ......... 438 268 412
- --------------------------------------------------------------------------------------------
Net expenses ......................... 810 314 460
- --------------------------------------------------------------------------------------------
Net investment income ............... 5,514 2,873 3,378
- --------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized loss on:
Investments .......................... (1,888) (1,819) (1,701)
Futures transactions ................. (864) (57) (112)
Change in net unrealized
appreciation/depreciation of:
Investments .......................... (4,765) (2,179) (1,902)
Futures contracts .................... (216) -- (118)
- --------------------------------------------------------------------------------------------
Net realized and unrealized loss on
investments and futures ............... (7,733) (4,055) (3,833)
- --------------------------------------------------------------------------------------------
Net decrease in net assets from
operations ............................ $(2,219) $ (1,182) $ (455)
- --------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
32
<PAGE>
STATEMENT OF OPERATIONS For the year ended October 31, 1999
(Continued)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Short-Term Strategic
Bond Income
Fund Fund*
- ---------------------------------------------------------------------------------------
<S> <C> <C>
INTEREST INCOME: $ 2,822 $ 522
- ---------------------------------------------------------------------------------------
EXPENSES: (Note 2)
Investment advisory fees .......................... 132 30
Administration fees ............................... 79 9
Shareholder servicing fees ........................ 132 15
Distribution fees ................................. 59 31
Custodian fees .................................... 68 44
Printing and postage .............................. 29 10
Professional fees ................................. 32 19
Registration expenses ............................. 30 17
Transfer agent fees ............................... 55 50
Trustees' fees and expenses ....................... 3 --
Other ............................................. 3 10
- --------------------------------------------------------------------------------------
Total expenses .................................. 622 235
- --------------------------------------------------------------------------------------
Less amounts waived (Note 2E) ..................... 321 82
Less expense reimbursements ....................... -- 143
- --------------------------------------------------------------------------------------
Net expenses ..................................... 301 10
- --------------------------------------------------------------------------------------
Net investment income ........................... 2,521 512
- --------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss) on:
Investments ...................................... (728) (93)
Futures transactions ............................. 44 --
Foreign currency transactions .................... -- (15)
Change in net unrealized appreciation/
depreciation of:
Investments ...................................... (345) (139)
Futures contracts and foreign currency
transactions ..................................... (7) 2
- --------------------------------------------------------------------------------------
Net realized and unrealized loss on investments,
futures and foreign currency transactions ......... (1,036) (245)
- --------------------------------------------------------------------------------------
Net increase in net assets from
operations ........................................ $ 1,485 $ 267
- --------------------------------------------------------------------------------------
</TABLE>
*Fund commenced operations 11/30/98.
See notes to financial statements.
33
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated
(Amounts in Thousands)
<TABLE>
<CAPTION>
U.S. Treasury U.S. Government
Income Fund Securities Fund
Year Ended Year Ended
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 ................. $ 5,514 $ 4,751 $ 2,873 $ 2,900
Net realized gain (loss) on
investments, futures and foreign
currency transactions ................. (2,752) 2,301 (1,876) 1,183
Change in net unrealized
appreciation/depreciation of
investments, futures contracts and
foreign currency translations ......... (4,981) 584 (2,179) 1,216
- ---------------------------------------------------------------------------------------------
Increase (decrease) in net
assets from operations .............. (2,219) 7,636 (1,182) 5,299
- ---------------------------------------------------------------------------------------------
Net equalization credits ............... -- -- -- --
- ---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM: (Note 1)
Net investment income ................. (5,515) (4,780) (2,874) (2,876)
Net realized gain on investment
transactions .......................... -- -- (714) --
- ---------------------------------------------------------------------------------------------
Total distributions to
shareholders ........................ (5,515) (4,780) (3,588) (2,876)
- ---------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
capital share transactions# ............ 14,904 (20,834) (570) (346)
- ---------------------------------------------------------------------------------------------
Total increase (decrease) in net
assets .............................. 7,170 (17,978) (5,340) 2,077
- ---------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period ................... 77,758 95,736 57,202 55,125
- ---------------------------------------------------------------------------------------------
End of period ......................... $ 84,928 $ 77,758 $ 51,862 $ 57,202
- ---------------------------------------------------------------------------------------------
<CAPTION>
Strategic
Short-Term Income
Bond Fund Bond Fund Fund
11/30/98*
Year Ended Year Ended Through
10/31/99 10/31/98 10/31/99 10/31/98 10/31/99
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income ................. $ 3,378 $ 2,931 $ 2,521 $ 2,873 $ 512
Net realized gain (loss) on
investments, futures and foreign
currency transactions ................. (1,813) 883 (684) 134 (108)
Change in net unrealized
appreciation/depreciation of
investments, futures contracts and
foreign currency translations ......... (2,020) 484 (352) (71) (137)
- -----------------------------------------------------------------------------------------------------------
Increase (decrease) in net
assets from operations .............. (455) 4,298 1,485 2,936 267
- -----------------------------------------------------------------------------------------------------------
Net equalization credits ............... -- -- 8 -- 77
- -----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM: (Note 1)
Net investment income ................. (3,383) (2,886) (2,538) (2,766) (587)
Net realized gain on investment
transactions .......................... (933) (652) -- -- --
- -----------------------------------------------------------------------------------------------------------
Total distributions to
shareholders ........................ (4,316) (3,538) (2,538) (2,766) (587)
- -----------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
capital share transactions# ............ 6,743 13,574 3,012 3,174 24,993
- -----------------------------------------------------------------------------------------------------------
Total increase (decrease) in net
assets .............................. 1,972 14,334 1,967 3,344 24,750
- -----------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period ................... 60,279 45,945 50,979 47,635 --
- -----------------------------------------------------------------------------------------------------------
End of period ......................... $ 62,251 $ 60,279 $ 52,946 $ 50,979 $ 24,750
- -----------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of operations.
# See detailed Capital Share Transactions.
See notes to financial statements.
34
<PAGE>
CHASE VISTA FUNDS U.S. TREASURY INCOME FUND
Capital Share Transactions
U.S. TREASURY INCOME FUND
Capital Share Transactions
For the periods indicated
(Amounts in Thousands)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Year Ended October 31, 1999
- -----------------------------------------------------------------------------------------------------
Class A Class B
Amount Shares Amount Shares
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 57,807 5,213 $ 9,821 879
- -----------------------------------------------------------------------------------------------------
Shares issued in reinvestment of distributions 3,974 361 710 64
- -----------------------------------------------------------------------------------------------------
Shares redeemed (49,804) (4,533) (7,604) (691)
- -----------------------------------------------------------------------------------------------------
Net increase in Trust shares outstanding $ 11,977 1,041 $ 2,927 252
- -----------------------------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Year Ended October 31, 1998
- -----------------------------------------------------------------------------------------------------
Class A Class B
Amount Shares Amount Shares
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 28,639 2,512 $ 7,535 657
- -----------------------------------------------------------------------------------------------------
Shares issued in reinvestment of distributions 3,181 279 481 42
- -----------------------------------------------------------------------------------------------------
Shares redeemed (56,341) (4,944) (4,329) (380)
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) in Trust shares outstanding $(24,521) (2,153) $ 3,687 319
- -----------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
35
<PAGE>
CHASE VISTA FUNDS U.S. GOVERNMENT SECURITIES FUND
Capital Share Transactions
U.S. GOVERNMENT SECURITIES FUND
Capital Share Transactions
For the periods indicated
(Amounts in Thousands)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Year Ended October 31, 1999
- -----------------------------------------------------------------------------------------------------
Class A Class I
Amount Shares Amount Shares
- -----------------------------------------------------------------------------------------------------
Shares sold $ 2,243 217 $ 7,776 770
- -----------------------------------------------------------------------------------------------------
Shares issued in reinvestment of distributions 207 20 59 6
- -----------------------------------------------------------------------------------------------------
Shares redeemed (2,940) (290) (7,915) (801)
- -----------------------------------------------------------------------------------------------------
Net decrease in Trust shares outstanding $ (490) (53) $ (80) (25)
- -----------------------------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Year Ended October 31, 1998
- -----------------------------------------------------------------------------------------------------
Class A Class I
Amount Shares Amount Shares
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 2,028 197 $ 8,629 851
- -----------------------------------------------------------------------------------------------------
Shares issued in reinvestment of distributions 114 11 75 7
- -----------------------------------------------------------------------------------------------------
Shares redeemed (1,214) (119) (9,978) (984)
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) in Trust shares outstanding $ 928 89 $(1,274) (126)
- -----------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
36
<PAGE>
CHASE VISTA FUNDS BOND FUND
Capital Share Transactions
BOND FUND
Capital Share Transactions
For the periods indicated
(Amounts in Thousands)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999
- --------------------------------------------------------------------------------------------------------
Class A Class B Class I
Amount Shares Amount Shares Amount Shares
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold $ 12,962 1,220 $ 2,853 270 $ 9,383 900
- --------------------------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions 1,147 109 248 23 1,341 128
- --------------------------------------------------------------------------------------------------------
Shares redeemed (9,843) (946) (3,258) (310) (8,090) (778)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease)
in Trust shares outstanding $ 4,266 383 $ (157) (17) $ 2,634 250
- --------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998
- --------------------------------------------------------------------------------------------------------
Class A Class B Class I
Amount Shares Amount Shares Amount Shares
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold $ 23,551 2,184 $ 4,647 427 $ 7,731 712
- --------------------------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions 736 68 127 11 1,109 103
- --------------------------------------------------------------------------------------------------------
Shares redeemed (17,554) (1,621) (1,418) (130) (5,355) (497)
- --------------------------------------------------------------------------------------------------------
Net increase in Trust
shares outstanding $ 6,733 631 $ 3,356 308 $ 3,485 318
- --------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
37
<PAGE>
CHASE VISTA FUNDS SHORT-TERM BOND FUND
Capital Share Transactions
SHORT TERM BOND FUND
Capital Share Transactions
For the periods indicated
(Amounts in Thousands)
<TABLE>
- ------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999*
- ------------------------------------------------------------------------------------------------------------
Class A Class M Class I
Amount Shares Amount Shares Amount Shares
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold $ 40,270 4,014 $3,171 319 $ 9,765 971
- ------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions 620 62 3 -- 1,033 103
- ------------------------------------------------------------------------------------------------------------
Shares redeemed (37,881) (3,779) (122) (12) (13,847) (1,379)
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in Trust shares outstanding $ 3,009 297 $3,052 (307) $(3,049) 305
- ------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998
- ------------------------------------------------------------------------------------------------------------
Class A Class I
Amount Shares Amount Shares
- ------------------------------------------------------------------------------------------------------------
Shares sold $ 49,539 4,906 $ 12,483 1,234
- ------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions 574 57 1,230 121
- ------------------------------------------------------------------------------------------------------------
Shares redeemed (40,342) (3,994) (20,310) (2,010)
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
Trust shares outstanding $ 9,771 969 $ (6,597) (655)
- ------------------------------------------------------------------------------------------------------------
</TABLE>
*For Class M shares, from commencement of offering on July 1, 1999.
See notes to financial statements.
38
<PAGE>
CHASE VISTA FUNDS STRATEGIC INCOME FUND
Capital Share Transactions
STRATEGIC INCOME FUND
Capital Share Transactions
For the periods indicated
(Amounts in Thousands)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 1999*
- -------------------------------------------------------------------------------------------------------------------------------
Class A Class B Class C Class I Class M
Amount Shares Amount Shares Amount Shares Amount Shares Amount Shares
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold $3,198 327 $5,484 563 $3,569 364 $1,000 100 $11,772 1,229
- -------------------------------------------------------------------------------------------------------------------------------
Shares issued in
reinvestment
of distributions 103 11 104 10 78 8 75 8 -- --
- -------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (112) (12) (188) (19) (90) (9) -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in
Trust shares
outstanding $3,189 326 $5,400 554 $3,557 363 $1,075 108 $11,772 1,229
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*For Class A, B, C and I shares, from commencement of operations on November
30, 1998. For Class M shares, from commencement of offering on October 28,
1999.
See notes to financial statements.
39
<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. U.S. Treasury Income Fund ("USTI") (formerly the U.S. Government
Income Fund), U.S. Government Securities Fund ("USGS"), Bond Fund ("BF"),
Short-Term Bond Fund ("STBF"), and Strategic Income Fund ("SIF"), collectively,
the "Funds", are separate portfolios of the Trust.
The Funds offer various classes of shares as follows:
<TABLE>
<CAPTION>
Fund Classes Offered
- ------------------------------------------------------------
<S> <C>
USTI Class A, Class B
USGS Class A, Institutional
BF Class A, Class B, Institutional
STBF Class A, Class M, Institutional
SIF Class A, Class B, Class C, Class M, Institutional
</TABLE>
Class A and Class M shares generally provide for a front-end sales charge while
Class B and C shares provide for a contingent deferred sales charge. No sales
charges are assessed with respect to the Institutional Class ("Class I"). All
classes of shares have equal rights as to earnings, assets and voting
privileges except that each class may bear different distribution fees and each
class has exclusive voting rights with respect to its distribution plan.
The following is a summary of significant accounting policies followed by the
Funds:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts and disclosures in the financial statements.
Actual results could differ from those estimates.
A. Valuation of investments -- 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 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
40
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS
Continued
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.
C. Futures contracts -- When a Fund enters into a futures contract, it makes an
initial margin deposit in a segregated account, either in cash or liquid
securities. Thereafter, the futures contract is marked to market and the Fund
makes (or receives) additional cash payments daily to the broker. Changes in
the value of the contract are recorded as unrealized appreciation/
depreciation until the contract is closed or settled.
The Funds invest in exchange-traded interest rate futures and options for
hedging purposes, to either modify the duration of the portfolio, modify the
yield curve exposure of the portfolio, or in anticipation of buying or selling
a specific security.
Use of long futures contracts subjects the Fund to risk of loss in excess of
the amounts shown on the Statement of Assets and Liabilities, up to the nominal
value of the futures contracts.
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.
As of October 31, 1999, the Funds had outstanding futures contracts as listed
on the Fund's Portfolio of Investments.
D. Forward foreign currency exchange contracts -- SIF 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, SIF 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. SIF 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, 1999, SIF had outstanding forward foreign
currency contracts as detailed in Note 5.
E. 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 determined on the basis of coupon interest accrued
adjusted for amortization of premiums, except USTI, and accretion of discounts.
Purchases of To Be Announced (TBA) securities may be settled a month or more
after the trade date; interest income is not accrued until settlement date.
Each Fund segregates assets with a current value at least equal to the amount
of its TBA purchase commitments.
41
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS
Continued
F. 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 official 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 closing 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 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 during the year. Similarly,
the Funds do not isolate the effect of changes in foreign exchange rates
from the fluctuations arising from changes in the market prices of
long-term debt securities sold during the year. Accordingly, such realized
foreign currency gains (losses) are included in the reported net realized
gains (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 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 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.
G. Expenses -- Expenses directly attributable to a Fund are charged to that
Fund; other expenses of the Trust are allocated proportionately among each
of the Funds within the Trust in relation to the net assets of each Fund or
on another reasonable basis. Expenses directly attributable to a particular
class are charged directly to such class. In calculating net asset value
per share of each class, investment income, realized and unrealized gains
and losses and expenses other than class specific expenses are allocated
daily to each class of shares based upon the proportion of net assets of
each class at the beginning of each day.
H. 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 Funds intend to make distributions as required to avoid
excise taxes. Accordingly, no provision for Federal income or excise tax is
necessary.
42
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS
Continued
I. Equalization -- In 1999, BF, STBF and SIF adopted the accounting
practice known as equalization by which a portion of the proceeds from
sales and costs of redemptions of Trust shares of beneficial interest
equivalent, on a per-share basis, to the amount of undistributed net
investment income on the date of the transaction, is credited or charged to
undistributed net investment income. As a result, undistributed net
investment income per share is unaffected by sales or redemptions of Trust
shares.
J. Distributions to shareholders -- Dividends and distributions paid to
shareholders are recorded on the ex-dividend date. The amount of dividends
and distributions from net investment income and net realized capital gains
is determined in accordance with Federal income tax regulations, which may
differ from generally accepted accounting principles. To the extent these
"book/tax" differences are permanent in nature, (i.e., that they result
from other than timing of recognition --"temporary differences") such
amounts are reclassified within the capital accounts based on their Federal
tax-basis treatment. SIF paid in capital increased by $76,626, accumulated
undistributed net investment income decreased by $92,072 and accumulated
undistributed net realized gains increased by $15,446. The
reclassifications primarily relate to the character for tax purposes of
equalization and foreign currency transactions. 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.
K. Dollar rolls -- The Funds (with the exception of USTI) may enter into
dollar rolls in which the Funds sell mortgage-backed securities for
delivery in the current month and simultaneously contract to repurchase
substantially similar (same type, coupon and maturity) securities on a
specified future date. During the roll period, the Funds forgo principal
and interest paid on the securities. The Funds are compensated by the
interest earned on the cash proceeds of the initial sale and a fee earned
for entering into the roll transaction. The fee is amortized into income
over the duration of the roll transaction.
L. Organization costs -- Organization expenses incurred in connection with
the commencement of SIF have been paid in full by Vista Fund Distributors,
Inc. (VFD). The Fund will not reimburse VFD for such expenses.
2. Fees and Other Transactions with Affiliates
A. Investment advisory fee -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank ("Chase" or the "Adviser") acts as the
Investment Adviser to the Funds. Chase is a direct wholly-owned subsidiary
of The Chase Manhattan Corporation. As Investment Adviser, Chase supervises
the investments of the Funds and for such services is paid a fee. The fee
is computed daily and paid monthly at an annual rate equal to 0.30%, 0.30%,
0.30%, 0.25% and 0.50% of the average daily net assets for USTI, USGS, BF,
STBF and SIF, respectively. The
43
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS
Continued
Adviser, voluntarily waived all or a portion of its fees as outlined in
Note 2.E. below.
Chase Asset Management, Inc. ("CAM"), a registered investment adviser, is
the sole sub-investment adviser to each Fund, except SIF, 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 0.15% for USTI,
USGS and BF, and 0.10% for STBF of average daily net assets.
CAM and State Street Research & Management Company (SSR) are the two
sub-advisers to the Strategic Income Fund. SSR is a wholly-owned subsidiary
of the Metropolitan Life Insurance Company. CAM makes the day-to-day
investment decisions for the Strategic Income Fund except that SSR makes
the day-to-day investment decisions for the portion of the Strategic Income
Fund that is allocated to lower-rated high yield securities of U.S.
issuers. For their services, CAM and SSR are entitled to receive fees,
payable by Chase from its advisory fee at an annual rate equal to 0.35% of
the average daily net assets managed by each respective sub-adviser. For
the year ended October 31, 1999, CAM and SSR waived all of their
sub-advisory fees.
B. Shareholder servicing fees -- The Trust has adopted an Administrative
Services Plan which, among other things, provides that the Trust on behalf
of the Funds may obtain the services of one or more Shareholder Servicing
Agents. For its services, the Shareholder Servicing Agent will receive a
fee. The fee is computed daily and paid monthly at an annual rate equal to
0.25% of the average daily net assets of the Funds.
Since inception of the Funds, Chase, and certain affiliates have been the
only Shareholder Servicing Agents of the Funds. The Shareholder Servicing
Agents have voluntarily waived all or a portion of their fees as outlined
in Note 2.E. below.
C. Distribution and sub-administration fees -- Pursuant to a Distribution
and Sub-Administration Agreement, Vista Fund Distributors, Inc. (the
"Distributor"), a wholly owned subsidiary of The BISYS Group, Inc.
("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, C and M of the Funds in accordance with Rule 12b-1 under the
1940 Act. The Class A Distribution Plans provide that each Fund shall pay
distributions fees, including payments to the Distributor, at annual rates
not to exceed 0.25% of the average daily net assets of the Class A Shares
of each Fund for distribution services. The Class B and Class C
Distribution Plans provide 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 Class M Distribution Plans pro-
44
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS
Continued
vide that each Fund shall pay distribution fees, including payments to the
Distributor, at an annual rate not to exceed 0.35% of the average annual
net assets of the Class M shares for distribution services.
The Distributor voluntarily waived all or a portion of distribution fees as
outlined in Note 2.E below.
D. Administration fee -- Pursuant to an Administration Agreement, Chase
(the "Administrator") provides certain administration services to the
Trust. For these services and facilities, the Administrator receives from
each Fund a fee computed at the annual rate equal to 0.10% of the
respective 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 Agent, and Distributor
voluntarily waived fees for each of the Funds as follows (in thousands):
<TABLE>
<CAPTION>
Fee USTI USGS BF STBF SIF
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Advisory ............ $ 158 $ 168 $191 $ 132 $ 30
Administration ................. -- 84 64 79 9
Shareholder Servicing.......... 101 8 120 105 15
Distribution ................... 179 8 37 5 28
----- ----- ---- ----- ----
Total .......................... $ 438 $ 268 $412 $ 321 $ 82
===== ===== ==== ===== ====
</TABLE>
F. Other -- Certain officers of the Trust are officers of Vista Fund
Distributors, Inc. or of its parent corporation, BISYS.
Chase provides portfolio accounting and custody services for the Funds.
Compensation for such services is presented in the Statement of Operations
as custodian fees.
The Distributor voluntarily reimbursed expenses of SIF in the amount shown
on the Statement of Operations.
The Adviser reimbursed SIF in the amount of $47,438 for losses incurred in
connection with erroneous executions of certain foreign currency
transactions.
3. Investment Transactions
For the year ended October 31, 1999, purchases and sales of investments
(excluding short-term investments) were as follows (in thousands):
<TABLE>
<CAPTION>
USTI USGS BF STBF SIF
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Purchases (excluding
U.S. Government) ......... $ -- $ -- $46,551 $35,539 $13,880
Sales (excluding
U.S. Government) ......... -- -- 42,174 25,570 5,474
Purchases of
U.S. Government .......... 69,301 128,347 97,862 106,204 6,625
Sales of
U.S. Government .......... 48,750 132,350 93,731 111,370 2,272
</TABLE>
45
<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 (in thousands):
<TABLE>
<CAPTION>
USTI USGS BF STBF SIF
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Aggregate cost .......... $ 87,558 $52,077 $ 68,548 $48,364 $13,474
-------- ------- -------- ------- -------
Gross unrealized
appreciation ............ $ 146 $ 28 $ 111 $ 29 $ 98
Gross unrealized
depreciation ............ (3,924) (428) (1,527) (304) (250)
-------- ------- -------- ------- -------
Net unrealized
depreciation ............ $ (3,778) $ (400) $ (1,416) $ (275) $ (152)
======== ======= ======== ======= =======
</TABLE>
At October 31, 1999, USTI had a net capital loss carryover of approximately
$6,215,000, which will be available to offset capital gains arising through
October 31, 2003 and 2007. USGS had a net capital loss carryover of
approximately $1,991,000, which will be available to offset capital gains
arising through October 31, 2007. BF had a net capital loss carryover of
approximately $1,525,000, which will be available to offset capital gains
arising through October 31, 2007. STBF had a net capital loss carryover of
approximately $1,463,000, which will be available to offset capital gains
arising through October 31, 2001, 2002, 2003 and 2007. SIF had a net capital
loss carryover of approximately $79,000, which will be available to offset
capital gains arising through October 31, 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 contract was held by SIF at October 31,
1999 (in thousands):
<TABLE>
<CAPTION>
Contract Contract Unrealized
Amount Amount Settlement Gain
Purchased Sold Date (USD)
- ---------------------------------------------------------
<S> <C> <C> <C>
$449 (USD) 425 (EUR) 11/12/99 $ 2
====
</TABLE>
46
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS
Continued
6. Retirement Plan
The Funds have adopted an unfunded noncontributory defined benefit pension plan
covering all independent trustees of the Funds who will have served as an
independent trustee for at least five years at the time of retirement. Benefits
under this plan are based on compensation and years of service. Pension
expenses for the year ended October 31, 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 as follows
(in thousands):
<TABLE>
<CAPTION>
Accrued
Pension Pension
Expenses Liability
- ---------------------------------------------
<S> <C> <C>
USTI.......... $1 $8
USGS.......... 1 5
BF ........... 1 3
STBF.......... 1 4
SIF .......... -- --
</TABLE>
7. Bank Borrowings
The Funds may borrow money for temporary or emergency purposes. Any borrowings
representing more than 5% of a Fund's total assets must be repaid before the
Fund may make additional investments. The Funds have entered into an agreement,
enabling them to participate with other Chase Vista Funds in an unsecured line
of credit with a syndicate of banks, which permits borrowings up to $350
million, collectively. Interest is charged to each Fund based on its borrowings
at an annual rate equal to the sum of the Federal Funds Rate plus 0.35%. The
Funds also pay a commitment fee of 0.075% 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 anytime
during the year.
47
<PAGE>
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
<TABLE>
U.S. Treasury Income Fund (2)
--------------------------------------------------------------
Class A
--------------------------------------------------------------
Year Ended
--------------------------------------------------------------
10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
---------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period ......... $ 11.66 $ 11.26 $ 11.13 $ 11.40 $ 10.60
------- ------- ------- ------- -------
Income from investment operations:
Net investment income ....................... 0.71 0.75 0.66 0.66 0.70
Net gain or (losses) in securities
(both realized and unrealized) .............. (0.99) 0.40 0.13 (0.27) 0.80
------- ------- ------- ------- -------
Total from investment operations ........... (0.28) 1.15 0.79 0.39 1.50
------- ------- ------- ------- -------
Distributions to shareholders from:
Dividends from net investment income ........ 0.71 0.75 0.66 0.66 0.70
Distributions from capital gains ............ -- -- -- -- --
------- ------- ------- ------- -------
Total dividends and distributions .......... 0.71 0.75 0.66 0.66 0.70
------- ------- ------- ------- -------
Net asset value, end of period ............... $ 10.67 $ 11.66 $ 11.26 $ 11.13 $ 11.40
======= ======= ======= ======= =======
Total return (1) (2.41%) 10.59% 7.35% 3.56% 14.59%
Ratios/supplemental data:
Net assets, end of period (in millions) ..... $69 $63 $85 $111 $99
Ratios to average net assets:
Expenses .................................... 0.75% 0.79% 0.90% 0.90% 0.87%
Net investment income ....................... 6.40% 6.53% 5.97% 5.89% 6.37%
Expenses without waivers and
reimbursements .............................. 1.32% 1.30% 1.21% 1.29% 1.40%
Net investment income without
waivers and reimbursements .................. 5.83% 6.02% 5.66% 5.50% 5.84%
Portfolio turnover rate ...................... 59% 75% 179% 103% 164%
- -------------------------------------------------------------------------------------------------------------
<CAPTION>
U.S. Treasury Income Fund (2)
--------------------------------------------------------------------
Class B
--------------------------------------------------------------------
Year Ended
--------------------------------------------------------------------
10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
---------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period ......... $ 11.66 $ 11.25 $ 11.11 $ 11.37 $ 10.59
------- ------- ------- ------- -------
Income from investment operations:
Net investment income ....................... 0.61 0.65 0.58 0.57 0.62
Net gain or (losses) in securities
(both realized and unrealized) .............. (0.99) 0.41 0.13 (0.26) 0.80
------- ------- ------- ------- -------
Total from investment operations ........... (0.38) 1.06 0.71 0.31 1.42
------- ------- ------- ------- -------
Distributions to shareholders from:
Dividends from net investment income ........ 0.61 0.65 0.57 0.57 0.64
Distributions from capital gains ............ -- -- -- -- --
------- ------- ------- ------- -------
Total dividends and distributions .......... 0.61 0.65 0.57 0.57 0.64
------- ------- ------- ------- -------
Net asset value, end of period ............... $ 10.67 $ 11.66 $ 11.25 $ 11.11 $ 11.37
======= ======= ======= ======= =======
Total return (1) (3.27%) 9.68% 6.56% 2.82% 13.80%
Ratios/supplemental data:
Net assets, end of period (in millions) ..... $16 $ 14 $ 11 $ 11 $ 11
Ratios to average net assets:
Expenses .................................... 1.64% 1.64% 1.64% 1.64% 1.62%
Net investment income ....................... 5.51% 5.69% 5.24% 5.12% 5.53%
Expenses without waivers and
reimbursements .............................. 1.82% 1.79% 1.71% 1.79% 1.89%
Net investment income without
waivers and reimbursements .................. 5.33% 5.54% 5.17% 4.97% 5.26%
Portfolio turnover rate ...................... 59% 75% 179% 103% 164%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return figures do not include the effect of any front-end load.
(2) Formerly known as the Vista U.S. Government Income Fund.
See notes to financial statements.
48
<PAGE>
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. Government Securities Fund
-------------------------------------------------------------------
Class A Class I
----------------------------------------------------- -------------
Year Ended 05/06/96** Year Ended
-------------------------------------- Through ----------
10/31/99 10/31/98 10/31/97 10/31/96 10/31/99
---------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period ......... $ 10.51 $ 10.06 $ 9.90 $ 9.62 $ 10.49
------- ------- ------- -------- -------
Income from investment operations:
Net investment income ....................... 0.50 0.50 0.58 0.26 0.52
Net gains or losses in securities
(both realized and unrealized) .............. (0.71) 0.45 0.15 0.25 (0.71)
------- ------- ------- -------- -------
Total from investment operations ........... (0.21) 0.95 0.73 0.51 (0.19)
------- ------- ------- -------- -------
Distributions to shareholders from:
Dividends from net investment income ........ 0.50 0.50 0.57 0.23 0.52
Distributions from capital gains ............ 0.13 -- -- -- 0.13
------- ------- ------- -------- -------
Total dividends and distributions .......... 0.63 0.50 0.57 0.23 0.65
------- ------- ------- -------- -------
Net asset value, end of period ............... $ 9.67 $ 10.51 $ 10.06 $ 9.90 $ 9.65
======= ======= ======= ======== =======
Total return (1) ............................. (2.11%) 9.75% 7.61% 5.41% (1.93%)
Ratios/supplemental data:
Net Assets, end of period (in millions) ..... $3 $3 $2 $3 $49
Ratios to average net assets#:
Expenses .................................... 0.75% 0.80% 1.05% 1.05% 0.55%
Net investment income ....................... 4.91% 4.95% 5.61% 5.30% 5.15%
Expenses without waivers and
reimbursements .............................. 1.70% 1.70% 1.57% 1.55% 1.00%
Net investment income without waivers
and reimbursements .......................... 3.96% 4.05% 5.09% 5.00% 4.70%
Portfolio turnover rate ...................... 258% 590% 569% 101% 258%
- ----------------------------------------------------------------------------------------------------------------
U.S. Government Securities Fund
-------------------------------------------------------------------
Class I
-------------------------------------------------------------------
Year Ended 12/01/95(2) Year Ended
------------------------- Through ----------------------
10/31/99 10/31/98 10/31/96 10/30/95 10/30/94
---------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period ......... $ 10.04 $ 9.89 $10.18 $ 9.23 $ 10.27
------- ------- ------ ------- -------
Income from investment operations:
Net investment income ....................... 0.53 0.59 0.50 0.56 0.50
Net gains or losses in securities
(both realized and unrealized) .............. 0.44 0.15 (0.30) 0.95 (0.94)
------- ------- ------ ------- -------
Total from investment operations ........... 0.97 0.74 0.20 1.51 (0.44)
------- ------- ------ ------- -------
Distributions to shareholders from:
Dividends from net investment income ........ 0.52 0.59 0.49 0.56 0.50
Distributions from capital gains ............ -- -- -- -- 0.10
------- ------- ------ ------- -------
Total dividends and distributions .......... 0.52 0.59 0.49 0.56 0.60
------- ------- ------ ------- -------
Net asset value, end of period ............... $ 10.49 $ 10.04 $ 9.89 $ 10.18 $ 9.23
======= ======= ====== ======= =======
Total return (1) ............................. 9.94% 7.78% 2.09% 16.82% (4.41%)
Ratios/supplemental data:
Net Assets, end of period (in millions) ..... $53 $53 $68 $83 $83
Ratios to average net assets#:
Expenses .................................... 0.60% 0.85% 0.85% 0.85% 0.85%
Net investment income ....................... 5.17% 5.78% 5.55% 5.78% 5.15%
Expenses without waivers and
reimbursements .............................. 0.85% 0.91% 1.04% 1.11% 1.04%
Net investment income without waivers
and reimbursements .......................... 4.92% 5.72% 5.36% 5.52% 4.96%
Portfolio turnover rate ...................... 590% 569% 101% 220% 134%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
** Commencement of offering class of shares.
# Short periods have been annualized.
(1) Total return figures do not include the effect of any front-end sales load.
(2) In 1996, the Fund changed its fiscal year end from November 30, to October
31.
See notes to financial statements.
49
<PAGE>
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Bond Fund
---------------------------------------
Class A
---------------------------------------
Year Ended
---------------------------------------
10/31/99 10/31/98 10/31/97
---------- -------- --------
<S> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period ......... $ 10.96 $ 10.82 $ 10.71
------- ------- -------
Income from investment operations:
Net investment income ....................... 0.55 0.59 0.63
Net gains or losses in securities
(both realized and unrealized) .............. (0.62) 0.27 0.33
------- ------- -------
Total from investment operations ........... (0.07) 0.86 0.96
------- ------- -------
Distributions to shareholders from:
Dividends from net investment income ........ 0.55 0.58 0.64
Distributions from capital gains ............ 0.16 0.14 0.21
------- ------- -------
Total dividends and distributions .......... 0.71 0.72 0.85
------- ------- -------
Net asset value, end of period ............... $ 10.18 $ 10.96 $ 10.82
======= ======= =======
Total return (1) ............................. (0.66%) 8.22% 9.45%
Ratios/supplemental data:
Net assets, end of period (in millions) ..... $35 $33 $26
Ratios to average net assets#:
Expenses .................................... 0.75% 0.77% 0.92%
Net investment income ....................... 5.25% 5.44% 6.11%
Expenses without waivers and
reimbursements .............................. 1.42% 1.52% 1.61%
Net investment income without waivers
and reimbursements .......................... 4.58% 4.69% 5.42%
Portfolio turnover rate ...................... 283% 329% 823%
- ------------------------------------------------------------------------------------
<CAPTION>
Bond Fund
---------------------------------------------------------------
Class B
---------------------------------------------------------------
05/06/96** Year Ended 05/06/96**
Through ---------------------------------- Through
10/31/96 10/31/99 10/31/98 10/31/97 10/31/96
---------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period ......... $10.39 $ 11.00 $ 10.87 $ 10.76 $10.39
------ ------- ------- ------- ------
Income from investment operations:
Net investment income ....................... 0.29 0.48 0.50 0.58 0.23
Net gains or losses in securities
(both realized and unrealized) .............. 0.31 (0.63) 0.27 0.32 0.37
------ ------- ------- ------- ------
Total from investment operations ........... 0.60 (0.15) 0.77 0.90 0.60
------ ------- ------- ------- ------
Distributions to shareholders from:
Dividends from net investment income ........ 0.28 0.48 0.50 0.58 0.23
Distributions from capital gains ............ -- 0.16 0.14 0.21 --
------ ------- ------- ------- ------
Total dividends and distributions .......... 0.28 0.64 0.64 0.79 0.23
------ ------- ------- ------- ------
Net asset value, end of period ............... $10.71 $ 10.21 $ 11.00 $ 10.87 $10.76
====== ======= ======= ======= ======
Total return (1) ............................. 5.95% (1.46%) 7.33% 8.32% 6.12%
Ratios/supplemental data:
Net assets, end of period (in millions) ..... $1 $4 $4 $1 $1
Ratios to average net assets#:
Expenses .................................... 0.90% 1.50% 1.55% 1.64% 1.65%
Net investment income ....................... 5.75% 4.50% 4.63% 5.26% 4.97%
Expenses without waivers and
reimbursements .............................. 2.39% 1.92% 2.00% 2.07% 2.93%
Net investment income without waivers
and reimbursements .......................... 4.26% 4.08% 4.18% 4.83% 3.69%
Portfolio turnover rate ...................... 122% 283% 329% 823% 122%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
** Commencement of offering class of shares.
# Short periods have been annualized.
(1) Total return figures do not include the effect of any front-end sales load.
See notes to financial statements.
50
<PAGE>
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Bond Fund
---------------------------------------------------------------
Class I
---------------------------------------------------------------
Year Ended
---------------------------------------------------------------
10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
---------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period ...................... $10.94 $10.82 $10.71 $10.91 $10.08
------ ------ ------ ------ ------
Income from investment operations:
Net investment income .................................... 0.58 0.62 0.68 0.67 0.69
Net gains or losses in securities
(both realized and unrealized) ........................... (0.62) 0.26 0.32 (0.15) 0.85
------ ------ ------ ------ ------
Total from investment operations ....................... (0.04) 0.88 1.00 0.52 1.54
------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income ..................... 0.58 0.62 0.68 0.66 0.69
Distributions from capital gains ......................... 0.16 0.14 0.21 0.06 0.02
------ ------ ------ ------ ------
Total dividends and distributions ...................... 0.74 0.76 0.89 0.72 0.71
------ ------ ------ ------ ------
Net asset value, end of period ............................ $10.16 $10.94 $10.82 $10.71 $10.91
====== ====== ====== ====== ======
Total return (1) .......................................... (0.42%) 8.42% 9.93% 4.90% 15.83%
Ratios/supplemental data:
Net assets, end of period (in millions) .................. $23 $21 $18 $18 $57
Ratios to average net assets:
Expenses ................................................. 0.50% 0.50% 0.50% 0.36% 0.31%
Net investment income .................................... 5.50% 5.72% 6.42% 6.23% 6.56%
Expenses without waivers and reimbursements .............. 1.14% 1.20% 1.17% 0.87% 0.87%
Net investment income without waivers and reimbursements . 4.86% 5.02% 5.75% 5.72% 6.00%
Portfolio turnover rate ................................... 283% 329% 823% 122% 30%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return figures do not include the effect of any front-end sales load.
See notes to financial statements.
51
<PAGE>
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Short-Term Bond Fund
---------------------------------------------------
Class A
---------------------------------------------------
Year Ended 05/06/96**
----------------------------------- Through
10/31/99 10/31/98 10/31/97 10/31/96
-------- -------- -------- ----------
<S> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period ......... $ 10.14 $ 10.10 $ 10.10 $ 10.03
------- ------- ------- --------
Income from investment operations:
Net investment income ....................... 0.46 0.53 0.58 0.26
Net gains or losses in securities
(both realized and unrealized) .............. (0.20) 0.02 -- 0.07
------- ------- ------- --------
Total from investment operations ........... 0.26 0.55 0.58 0.33
------- ------- ------- --------
Less distributions:
Dividends from net investment income 0.46 0.51 0.58 0.26
Distributions from capital gains ............ -- -- -- --
------- ------- ------- --------
Total dividends and distributions .......... 0.46 0.51 0.58 0.26
------- ------- ------- --------
Net asset value, end of period ............... $ 9.94 $ 10.14 $ 10.10 $ 10.10
======= ======= ======= ========
Total return (1) ............................. 2.64% 5.58% 5.91% 3.41%
Ratios/supplemental data:
Net assets, end of period (in millions) ..... $22 $19 $10 $10
Ratios to average net assets#:
Expenses .................................... 0.75% 0.76% 0.75% 0.75%
Net investment income ....................... 4.58% 5.28% 5.76% 5.28%
Expenses without waivers and
reimbursements .............................. 1.37% 1.44% 1.31% 1.45%
Net investment income without
waivers and reimbursements .................. 3.96% 4.60% 5.20% 4.58%
Portfolio turnover rate ...................... 302% 439% 471% 158%
- ---------------------------------------------------------------------------------------------------
<CAPTION>
Short-Term Bond Fund
---------------------------------------------------------------------------
Class M Class I
---------- -------------------------------------------------------------
07/01/99** Year Ended
Through -------------------------------------------------------------
10/31/99 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period ......... $ 9.98 $ 10.15 $ 10.11 $ 10.12 $ 10.08 $ 9.91
------ ------- ------- ------- ------- -------
Income from investment operations:
Net investment income ....................... 0.16 0.49 0.57 0.62 0.56 0.54
Net gains or losses in securities
(both realized and unrealized) .............. (0.04) (0.20) 0.02 (0.01) 0.04 0.17
------ ------- ------- ------- ------- -------
Total from investment operations ........... 0.12 0.29 0.59 0.61 0.60 0.71
------ ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income 0.16 0.49 0.55 0.62 0.56 0.54
Distributions from capital gains ............ -- -- -- -- -- --
------ ------- ------- ------- ------- -------
Total dividends and distributions .......... 0.16 0.49 0.55 0.62 0.56 0.54
------ ------- ------- ------- ------- -------
Net asset value, end of period ............... $ 9.94 $ 9.95 $ 10.15 $ 10.11 $ 10.12 $ 10.08
====== ====== ======= ======= ======= =======
Total return (1) ............................. 1.26% 2.97% 6.03% 6.23% 6.10% 7.37%
Ratios/supplemental data:
Net assets, end of period (in millions) ..... $3 $28 $31 $38 $43 $36
Ratios to average net assets#:
Expenses .................................... 0.97% 0.42% 0.42% 0.42% 0.35% 0.32%
Net investment income ....................... 4.72% 4.89% 5.68% 6.08% 5.59% 5.41%
Expenses without waivers and
reimbursements .............................. 1.41% 1.02% 1.04% 0.93% 0.89% 0.90%
Net investment income without
waivers and reimbursements .................. 4.28% 4.29% 5.06% 5.57% 5.05% 4.83%
Portfolio turnover rate ...................... 302% 302% 439% 471% 158% 62%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
** Commencement of offering class of shares.
# Short periods have been annualized.
(1) Total return figures do not include the effect of any front-end sales load.
See notes to financial statements.
52
<PAGE>
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Strategic Income Fund
-------------------------------------------------------------------
Class A Class B Class C Class M Class I
-------- -------- -------- -------- --------
11/30/98* 11/30/98* 11/30/98* 10/28/99** 11/30/98*
Through Through Through Through Through
10/31/99 10/31/99 10/31/99 10/31/99 10/31/99
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period ............... $ 10.00 $ 10.00 $ 10.00 $ 9.64 $ 10.00
------- ------- ------- ------- -------
Income from investment operations:
Net investment income ............................. 0.72 0.71 0.71 0.07 0.72
Net gains or losses in securities
(both realized and unrealized) ................... (0.41) (0.41) (0.41) (0.05) (0.41)
------- ------- ------- ------- -------
Total from investment operations ................. 0.31 0.30 0.30 0.02 0.31
------- ------- ------- ------- -------
Distributions to shareholders from:
Dividends from net investment income .............. 0.72 0.71 0.71 0.07 0.72
Distributions from capital gains .................. -- -- -- -- --
------- ------- ------- ------- -------
Total dividends and distributions ................ 0.72 0.71 0.71 0.07 0.72
------- ------- ------- ------- -------
Net asset value, end of period ..................... $9.59 $9.59 $9.59 $ 9.59 $9.59
======= ======== ======== ======== ========
Total return (1) ................................... 3.23% 3.13% 3.12% 0.16% 3.29%
Net assets, end of period (in millions) ........... $3 $5 $4 $12 $1
Ratios to average net assets#:
Expenses .......................................... 0.15% 0.17% 0.17% 0.17% 0.24%
Net investment income ............................. 8.38% 8.40% 8.40% 4.56% 8.07%
Expenses without waivers and reimbursements ....... 3.59% 3.98% 3.98% 3.73% 3.87%
Net investment income without waivers
and reimbursements .............................. 4.94% 4.59% 4.59% 1.00% 4.44%
Portfolio turnover rate ............................ 136% 136% 136% 136% 136%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of operations.
** Commencement of offering of class of shares.
# Short periods have been annualized.
(1) Total return figures do not include the effect of any front-end sales load.
See notes to financial statements.
53
<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, 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 U.S.
Treasury Income Fund, Chase Vista U.S. Government Securities Fund, Chase Vista
Bond Fund, Chase Vista Short-Term Bond Fund and Chase Vista Strategic Income
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 (for the period November 30, 1998 (commencement of operations) through
October 31, 1999 for Chase Vista Strategic Income Fund), the changes in their
net assets for the two years then ended (for the period November 30, 1998
(commencement of operations) through October 31, 1999 for Chase Vista Strategic
Income 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. The
financial highlights of Chase Vista U.S. Government Securities Fund for the two
years ended November 30, 1995 were audited by other independent accountants
whose report dated January 19, 1996 expressed an unqualified opinion on those
financial statements.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
December 13, 1999
54
<PAGE>
TAX LETTER (UNAUDITED)
TAX LETTER (UNAUDITED)
Chase Vista U.S. Treasury Income Fund (USTI)
Chase Vista U.S. Government Securities Fund (USGS)
Chase Vista Bond Fund (BF)
Chase Vista Short-Term Bond Fund (STBF)
Chase Vista Strategic Income Fund (SIF)
- --------------------------------------------------------------------------------
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 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>
Federal Federal
Federal Federal Home Loan National Long-Term
Farm Home Loan Mortgage Mortgage Capital Gains
U.S. Treasury Credit Bank Bank Corporation Association Distribution
Chase Vista Fund Obligations Obligations Obligations Obligations Obligations Per Share
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
USTI 97.00% -- 2.00% 1.00% -- $ --
USGS 46.25% -- 0.24% 6.32% 27.12% 0.02
BF 17.77% -- 2.79% 1.80% 9.00% 0.03
STBF 33.97% -- 5.57% 1.23% 6.24% --
SIF 7.20% 0.24% 2.37% 0.26% 0.69% --
</TABLE>
55
<PAGE>
[This page intentionally left blank]
<PAGE>
[This page intentionally left blank]
<PAGE>
CHASE VISTA FIXED INCOME 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
PricewaterhouseCoopers LLP
Chase Vista Funds are distributed by
Vista Fund Distributors, Inc., which is
unaffiliated with The Chase Manhattan
Bank. Chase and its respective
affiliates receive compensation from
Chase Vista Funds for providing
investment advisory and other services.
This report is submitted for the general
information of the shareholders of the
funds. It is not authorized for
distribution to prospective investors in
the funds unless preceded or accompanied
by a prospectus.
To obtain a prospectus for any of the
Chase Vista Funds, call 1-800-34-VISTA.
The prospectus contains more complete
information, including charges and
expenses. Please read it carefully
before you invest or send money.
(c) The Chase Manhattan Corporation, 1999, 2000. All Rights Reserved.
December 1999
[CHASE VISTA FUNDS LOGO]
Chase Vista Funds Fulfillment Center
393 Manley Street
West Bridgewater, MA 02379-1039
