OCTOBER 31, 2000
ANNUAL REPORT
U.S. TREASURY
INCOME FUND
U.S. GOVERNMENT
SECURITIES FUND
BOND FUND
SHORT-TERM
BOND FUND
STRATEGIC
INCOME FUND
[Chase Logo]
THE RIGHT RELATIONSHIP IS EVERYTHING. [RegTM]
[End Chase Logo]
<PAGE>
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Contents
Chairman's Letter 1
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Chase Vista U.S. Treasury Income Fund 2
Fund Commentary
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Chase Vista U.S. Government Securities Fund 4
Fund Commentary
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Chase Vista Bond Fund 6
Fund Commentary
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Chase Vista Short-Term Bond Fund 8
Fund Commentary
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Chase Vista Strategic Income Fund 10
Fund Commentary
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Portfolios of Investments 13
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Financial Statements 31
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Notes to Financial Statements 37
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Financial Highlights 50
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Highlights
o After historically rapid growth in the first half of the reporting period,
the economy began to cool as the Fed's six interest rate increases since
June, 1999 began to take effect.
o The announcement and implementation of a Treasury buyback program led to an
inversion in the yield curve for a significant portion of the reporting
period.
o Technical factors led corporate securities to underperform in the first half
of the year and the sector was later hit by fundamental credit concerns as
the U.S. economy slowed.
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NOT FDIC INSURED | May lose value / No bank guarantee
Chase Vista Funds are distributed by Vista Fund Distributors, Inc.
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<PAGE>
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CHASE VISTA FIXED INCOME FUNDS
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Chairman's Letter
December 1, 2000
Dear Shareholder:
We are pleased to present this annual report for the Chase Vista Fixed Income
Funds for the year ended October 31, 2000. Inside, you will find information on
the performance of each Fund along with a report from the portfolio management
team.
After Extended Burst of Growth, U.S. Economy Appears to Slow
For the majority of the reporting year, the U.S. economy continued to expand at
a rapid pace, with GDP growth soaring well in excess of the 3.5% that many
analysts consider to be the Federal Reserve Board's non-inflationary trend rate.
In fact, the economy experienced annual GDP growth rates of 7.3%, 5.4% and 5.6%
in the fourth quarter of 1999 and the first two quarters of 2000, respectively.
In response to the inflationary pressures created by this impressive growth, the
Fed continued its policy of short-term interest rate increases, presenting a
challenging backdrop for the fixed income markets. The exception was the U.S.
Treasury market, which benefited from the February announcement and subsequent
implementation of a plan by the U.S. Treasury Department to use the Federal
budget surplus to reduce the supply of longer-dated Treasury bonds through a buy
back program.
In June 2000, shifting economic data began to show a slowing economy. As
evidence of a slowdown mounted, punctuated by a much-slower annual GDP growth
rate of 2.4% in the third quarter, investors decided that the six Fed rate
increases over the prior 12 months had begun to take effect.
Corporate Bonds Struggle in Shifting Environment
Historically during periods of rising short-term interest rates, non-Treasury
sectors tend to perform relatively better as their higher yields offset the
negative price effect of higher interest rates. This was not the case during the
reporting year as the Treasury's buy back program and the subsequent inversion
of the yield curve created technical challenges for corporates and, to a lesser
degree, mortgage-backed securities. Just as the market had adjusted somewhat to
the buy back program, corporate bonds in particular suffered from the tighter
overall credit environment that arrived as the Nasdaq began a sustained fall
from its March highs. A further challenge for corporate bonds came as investors
began to fear the slowing economy could lead to tighter credit markets and a
more difficult period for corporate performance.
In light of the difficult and changing market conditions, your portfolio
managers did an excellent job, maintaining good performance and competitive
current yields. The portfolio management team and all of us at Chase thank you
for your continued investment and look forward to serving your investment needs
for many years to come.
Sincerely yours,
/s/ Fergus Reid
Fergus Reid
Chairman
1
<PAGE>
--------------------------------------------------------------------------------
CHASE VISTA U.S. TREASURY INCOME FUND
As of October 31, 2000 (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 7.63%
(Class A shares, without sales charges) for the year ended October 31, 2000.
This compares to a same return of 7.63% for its Lehman U.S. Treasury Bond Index
benchmark.
How the Fund Was Managed
As the reporting period began, the Fund was well positioned for the rising-
interest rate environment as the management team allowed portfolio duration (and
hence, its sensitivity to changes in interest rates) to shorten to below that of
its peer group before making a strategic reduction in December. Additionally,
the Fund's exposure to 20-year Treasuries was positive as the fundamentals of a
strong economy favored these issues over longer-dated Treasuries and the yield
curve flattened slightly.
But technical factors overtook fundamentals in February 2000 with the U.S.
Treasury Department's announcement that it would begin a program to buy back
longer-dated Treasury bonds. This led to a tremendous increase in demand for
30-year Treasuries, which would typically underperform with an aggressively
tightening Federal Reserve Board, and an inversion in the yield curve. The Fund
was fairly well positioned for this situation with a longer-than benchmark
duration, and while the Fund did hold some mortgage-backed securities, this
exposure was exclusively in GNMAs, which outperformed conventional
mortgage-backed issues dramatically over concerns about the latter's government
guarantee.
Because of the historically high spreads between yields on mortgage-backed
securities and Treasuries, the management team maintained its exposure to
mortgages in the "spread sectors" into May and June, and this helped performance
as longer-dated GNMAs outperformed. The Fund's yield curve strategy was also a
contributor to good performance. The Fund had a barbell yield curve strategy,
which focused on the short and long ends of the yield curve and avoided the
middle, and this strategy was reversed in August to a more neutral stance when
the Fed did not raise rates.
Looking Ahead
In the management team's view, the Federal Reserve Board is likely to retain an
unchanged monetary policy for the remainder of 2000. However, the team expects a
change in the Fed's risk propensity, which has been weighted toward heightened
inflation pressures, in light of slackening economic growth, declining equity
values, developing weakness abroad, a strong dollar and still-subdued inflation
outside the energy sector. Indeed, should economic growth continue on its
currently more moderate non-inflationary path, labor markets would become less
taut and inflation pressures would soon subside, which would pave the way for a
Fed easing move as early as 2001.
2
<PAGE>
--------------------------------------------------------------------------------
CHASE VISTA U.S. TREASURY INCOME FUND
As of October 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
Average Annual Total Returns
<TABLE>
<CAPTION>
1 Year 5 Years 10 Years
<S> <C> <C> <C>
-----------------------------------------------------------
Class A Shares
Without Sales Charge 7.63% 5.25% 6.96%
With Sales Charge* 2.81% 4.28% 6.46%
-----------------------------------------------------------
Class B Shares
Without CDSC 6.49% 4.36% 6.37%
With CDSC** 1.49% 4.04% 6.37%
-----------------------------------------------------------
</TABLE>
10-Year Performance (10/31/90 to 10/31/00)
[START LINE CHART]
<TABLE>
<CAPTION>
Chase Vista U.S. Lehman U.S. Treasury Lipper General U.S.
Treasury Income Fund Bond Index Government Funds Index
<S> <C> <C> <C>
10/31/1990 9,550.00 10,000.00 10,000.00
10/31/1991 10,896.05 11,453.33 11,460.97
10/31/1992 11,919.65 12,643.26 12,457.69
10/31/1993 13,393.21 14,304.69 13,792.45
10/31/1994 12,645.17 13,667.75 13,004.84
10/31/1995 14,489.21 15,769.17 14,852.14
10/31/1996 15,004.98 16,568.25 15,490.30
10/31/1997 16,106.90 17,995.21 16,791.45
10/31/1998 17,812.68 20,078.15 18,268.38
10/31/1999 17,379.13 19,783.80 18,006.37
10/31/2000 18,700 21,410 19,235
</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.
* 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.
The mountain 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 Index and the Lehman U.S. Treasury Bond Index from October 31,
1990 to October 31, 2000. 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 indices 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 Index represents the performance of
the 30 largest funds that invest in U.S. Government Securities. Lipper is an
independent mutual fund performance monitor whose results are based on total
return and do not reflect a sales charge.
The Lehman U.S. 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.
3
<PAGE>
--------------------------------------------------------------------------------
CHASE VISTA U.S. GOVERNMENT SECURITIES FUND
As of October 31, 2000 (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 7.09% (Class A shares, without sales charges) for the year ended
October 31, 2000. This compares to a return of 8.04% for its industry
benchmark, the Lehman U.S. Government Bond Index.
How the Fund Was Managed
As the reporting period began, the Fund was well positioned for the rising-
interest rate environment as the management team allowed portfolio duration (and
hence, its sensitivity to changes in interest rates) to shorten to below that of
its peer group before making a strategic reduction in December. Additionally,
the Fund's exposure to mortgage-backed securities was increased to 50%, and
these holdings outperformed significantly in late 1999 as new mortgage issuance
fell. Finally, the Fund's emphasis on 20-year Treasuries was positive as the
fundamentals of a strong economy favored these issues over longer-dated
Treasuries.
But technical factors overtook fundamentals in February 2000 with the U.S.
Treasury Department's announcement that it would begin a program to buy back
longer-dated Treasury bonds. This led to a tremendous increase in demand for
30-year Treasuries, which would typically underperform with an aggressively
tightening Federal Reserve Board, and an inversion in the yield curve. The Fund
was fairly well positioned for this situation with a longer-than-benchmark
duration, and while the Fund was subsequently underexposed to Treasuries, this
was offset by the fact that the Treasuries in the portfolio were primarily at
the long end of the yield curve.
Because of the historically high spreads between yields on mortgage-backed and
agency securities and Treasuries, the management team maintained its exposure to
mortgage-backed securities into the spring and early summer. The Fund's yield
curve strategy was a major contributor to good performance, as was the fact that
the management team hedged its exposure to the short end of the yield curve. In
effect, the Fund had a barbell yield curve strategy, which focused on the short
and long ends of the yield curve and avoided the middle. This strategy was
reversed in August to a more neutral stance when the Fed did not raise rates.
Also, the Fund was helped late in the reporting year by an overweight position
in government agency securities, which outperformed as previous concerns about
the status of the government guarantee on these securities diminished.
Looking Ahead
In the management team's view, the Federal Reserve Board is likely to retain an
unchanged monetary policy for the remainder of 2000. However, the team expects a
change in the Fed's risk propensity, which has been weighted toward heightened
inflation pressures, in light of slackening economic growth, declining equity
values, developing weakness abroad, a strong dollar and still-subdued inflation
outside the energy sector. Indeed, should economic growth continue on its
currently more moderate non-inflationary path, labor markets would become less
taut and inflation pressures would soon subside, which would pave the way for a
Fed easing move as early as 2001.
4
<PAGE>
--------------------------------------------------------------------------------
CHASE VISTA U.S. GOVERNMENT SECURITIES FUND
As of October 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
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 7.09% 5.14% 5.37%
With Sales Charge* 2.23% 4.18% 4.74%
---------------------------------------------------------------
Class I Shares 7.30% 5.33% 5.49%
---------------------------------------------------------------
</TABLE>
Life of Fund Performance (2/19/93 to 10/31/00)
[START LINE CHART]
<TABLE>
<CAPTION>
Chase Vista U.S. Lehman U.S. Government Lipper U.S. General
Government Securities Fund Bond Index Government Funds Index
<S> <C> <C> <C>
01/31/93 10,000.00 10,000.00 10,000.00
10/31/93 10,714.19 10,912.75 10,716.91
10/31/94 10,185.00 10,423.70 10,104.92
10/31/95 11,638.58 12,027.58 11,540.30
10/31/96 12,098.42 12,642.09 12,036.16
10/31/97 13,038.86 13,735.25 13,047.17
10/31/98 14,334.54 15,286.26 14,194.76
10/31/99 14,052.70 15,316.58 13,991.17
10/31/00 15,089 16,547 14,946
</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.
* 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.
The mountain 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 Index, and the Lehman U.S. Government Bond Index
from February 19, 1993 to October 31, 2000. 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 indices 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 performance of the benchmarks reflect
an initial investment at the end of the month preceding the Fund's commencement
of operations.
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 Index represents the performance of
the 30 largest funds that invest in U.S. Government Securities. Lipper is an
independent mutual fund performance monitor whose results are based on total
return and do not reflect a sales charge.
The Lehman U.S. Government Bond Index is composed of the U.S. 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.
5
<PAGE>
--------------------------------------------------------------------------------
CHASE VISTA BOND FUND
As of October 31, 2000 (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 and mortgage-backed
securities, had a total return of 5.73% (Class A shares, without sales charges)
for the year ended October 31, 2000. This compares to a total return of 7.30%
for the Lehman Aggregate Bond Index.
How the Fund Was Managed
As the reporting period began, the Fund was well positioned for the
rising-interest rate environment as the management team allowed portfolio
duration (and hence, its sensitivity to changes in interest rates) to shorten to
below that of its peer group before making a strategic reduction in December.
Additionally, the Fund's exposure to corporate bonds and 20-year Treasuries was
positive as the fundamentals of a strong economy favored these issues over
longer-dated Treasuries.
But technical factors overtook fundamentals in February 2000 with the U.S.
Treasury Department's announcement that it would begin a program to buy back
longer-dated Treasury bonds. This led to a tremendous increase in demand for
30-year Treasuries, which would typically underperform with an aggressively
tightening Federal Reserve Board, and an inversion in the yield curve. As this
occurred, the Fund's short-to-neutral duration and underweighting of Treasuries
led to a short period of underperformance. However, the negative effects were
mitigated by the Fund's yield curve strategy and hedged exposure to the short
end of the yield curve.
The Fund's barbell yield curve strategy, which focused on the short and long
ends of the yield curve and avoided the middle, was a strong positive
performance factor throughout much of the spring and summer months. The
management team reversed this strategy in August, taking a more neutral stance
by purchasing more securities in the belly of the curve. The resulting extension
of duration proved positive as interest rates declined over the remainder of the
reporting period, especially in the middle of the curve.
Looking Ahead
While valuations in the corporate bond sector were fairly attractive as the year
ended, the Fund was focused on higher-quality non-cyclical credits given the
tougher economic backdrop. In the management team's view, the Federal Reserve
Board is likely to retain an unchanged monetary policy for the remainder of
2000. However, the team expects a change in the Fed's risk propensity, which has
been weighted toward heightened inflation pressures, in light of slackening
economic growth, declining equity values, developing weakness abroad, a strong
dollar and still-subdued inflation outside the energy sector. Indeed, should
economic growth continue on its currently more moderate non-inflationary path,
labor markets would become less taut and inflation pressures would soon subside,
which would pave the way for a Fed easing move as early as 2001.
6
<PAGE>
--------------------------------------------------------------------------------
CHASE VISTA BOND FUND
As of October 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
Average Annual Total Returns
<TABLE>
Since
Inception
1 Year 5 Years (11/30/90)
<S> <C> <C> <C>
---------------------------------------------------------------
Class A Shares
Without Sales Charge 5.73% 5.39% 7.24%
With Sales Charge* 0.97% 4.44% 6.74%
---------------------------------------------------------------
Class B Shares
Without CDSC 5.04% 4.80% 6.93%
With CDSC** 0.07% 4.49% 6.93%
---------------------------------------------------------------
Class I Shares 6.07% 5.73% 7.41%
----------------------------------------------------------------
</TABLE>
Life of Fund Performance (11/30/90 to 10/31/00)
[START LINE CHART]
<TABLE>
<CAPTION>
Chase Vista Lehman Aggregate Lipper Corporate Debt
Bond Fund Bond Index A-Rated Funds Index
<S> <C> <C> <C>
11/30/90 10,000.00 10,000.00 10,000.00
10/31/91 11,160.74 11,336.90 11,402.49
10/31/92 12,315.14 12,452.81 12,611.24
10/31/93 13,870.87 13,977.53 14,477.19
10/31/94 13,273.76 13,463.82 13,559.95
10/31/95 15,374.65 15,571.31 15,833.66
10/31/96 16,139.30 16,479.51 16,657.89
10/31/97 17,742.36 17,947.09 18,140.80
10/31/98 19,235.81 19,620.36 19.488.92
10/31/99 19,155.64 19,721.71 19,436.09
10/31/00 20,319 21,161 20,624
</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.
* 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.
The mountain chart illustrates comparative performance for $10,000 invested in
Class I Shares of Chase Vista Bond Fund, the Lipper Corporate Debt A-Rated Funds
Index and the Lehman Aggregate Bond Index from November 30, 1990 to October 31,
2000. 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
indices 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 Corporate Debt A-Rated Funds Index represents the performance of the
30 largest 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/ Credit
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.
7
<PAGE>
--------------------------------------------------------------------------------
CHASE VISTA SHORT-TERM BOND FUND
As of October 31, 2000 (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 5.27% (Class A shares, without sales charges) for the year ended
October 31, 2000. This compares to a return of 6.13% for its industry benchmark,
the Lehman 1-3 Year Government Bond Index.
How the Fund Was Managed
Early in the reporting year, the management team took several steps to improve
the Fund's yield and total return profile over a one-year interval. First, given
relative narrow quality spreads, the team sold of a portion of the portfolio's
lower-rated investment grade corporate securities and traded into higher-rated
investment grade corporates. Second, it sold off lower-yielding agency
securities and traded into higher-yielding, higher-quality corporates. Finally,
it sold off asset-backed securities and traded into corporate securities with
better total return potential.
In early 2000, the effects of the Treasury buy back program had a negative
impact on corporate and agency securities relative to Treasuries, and this
caused the Fund to underperform. However, maintaining its discipline, the Fund
took advantage of the subsequent rise in yield spreads between government agency
and Treasury securities (which were at several-year highs) to add to its agency
security positions. While the focus on non-Treasury securities was negative in
the late spring months, it helped subsequently, as did an adjustment to a more
neutral duration.
In the late summer, the management team shifted additional assets into the
asset-backed sector given the belief that historically high spreads offered the
opportunity to add value over the next year. After a rally in the 2-year portion
of the yield curve, the management team ended the reporting period neutral to
slightly long its benchmark and maintained an overweight position in
high-quality non-Treasury instruments.
Looking Ahead
In the management team's view, the Federal Reserve Board is likely to retain an
unchanged monetary policy for the remainder of 2000. However, the team expects a
change in the Fed's risk propensity, which has been weighted toward heightened
inflation pressures, in light of slackening economic growth, declining equity
values, developing weakness abroad, a strong dollar and still-subdued inflation
outside the energy sector. Indeed, should economic growth continue on its
currently more moderate non-inflationary path, labor markets would become less
taut and inflation pressures would soon subside, which would pave the way for a
Fed easing move as early as 2001.
8
<PAGE>
CHASE VISTA SHORT-TERM BOND FUND
As of October 31, 2000 (Unaudited)
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 5.27% 5.03% 5.41%
With Sales Charge* 3.70% 4.72% 5.25%
Class I Shares 5.56% 5.37% 5.59%
Class M Shares
Without Sales Charge 5.04% 4.98% 5.39%
With Sales Charge** 3.47% 4.67% 5.23%
</TABLE>
Life of Fund Performance (11/30/90 to 10/31/00)
[START LINE CHART]
<TABLE>
<CAPTION>
Chase Vista Short- Lehman 1-3 Year Lipper Short-Term Investment
Term Bond Fund Government Bond Index Grade Debt Funds Index
<S> <C> <C> <C>
11/30/90 10,000.00 10,000.00 10,000.00
10/31/91 10,783.45 11,016.74 11,131.49
10/31/92 11,468.95 11,912.09 12,206.69
10/31/93 12,012.17 12,599.91 13,144.07
10/31/94 12,297.10 12,745.62 13,048.05
10/31/95 13,205.12 13,871.57 14,437.33
10/31/96 14,010.48 14,700.69 15,249.46
10/31/97 14,882.18 15,652.71 16,286.45
10/31/98 15,781.25 16,850.35 17,488.64
10/31/99 16,328.08 17,350.94 17,780.13
10/31/00 17,143 18,415 18,736
</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.
* 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.
The mountain chart illustrates comparative performance for $10,000 invested in
Class I Shares of Chase Vista Short-Term Bond Fund, the Lipper Short-Term
Investment Grade Debt Funds Index and the Lehman 1-3 year U.S. Government Bond
Index from November 30, 1990 to October 31, 2000. The performance of the Fund
assumes reinvestment of all dividends and capital gains and does not include a
sales charge. The performance of the indices 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 Index represents the
performance of the 30 largest 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 U.S. Government Bond Index is composed of bonds covered by
the U.S. 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.
9
<PAGE>
-------------------------------------------------------------------------------
CHASE VISTA STRATEGIC INCOME FUND
As of October 31, 2000 (Unaudited)
-------------------------------------------------------------------------------
How the Fund Performed
Chase Vista Strategic Income Fund had a total return of 2.59% (Class A shares,
without sales charges) for the year ended October 31, 2000. This compares to a
return of 7.30% for the Lehman Aggregate Bond Index.
How the Fund Was Managed
The last two months of 1999 were dominated by several trends, including modestly
negative performance from U.S. investment grade bonds, recovery in U.S. high
yield bonds and blistering performance by emerging market bonds. As such, the
Fund's performance was held back by a modestly overweight position in U.S.
investment grade bonds, but this was more than counterbalanced by its position
in emerging market bonds.
Early in 2000, the Fund benefited from a substantial overweight position in
emerging market bonds as yield spreads tightened by 3% in the first calendar
quarter of the year. However, the Fund's slightly overweight position in U.S.
high yield bonds and preference for U.S. investment grade over foreign
investment grade bonds did not help performance as the U.S. Treasury's buyback
program caused distortions through U.S. fixed income markets.
Moving into the spring and summer months, the Fund was underweight in non-U.S.
investment grade bonds and overweight in emerging market issues, and the
Nasdaq-related rally in emerging markets helped performance substantially in
late June. A rally in the U.S. spread sectors was positive for performance in
the late summer as U.S. corporate bonds, which had underperformed Treasuries for
most of the year, began to outperform.
The major positive performance factor for the year was exposure to emerging
market bonds. However, as the reporting year ended, these issues were under
pressure given volatility in U.S. equity markets, higher oil prices and global
political volatility.
Looking Ahead
Emerging market issues remain sensitive to the U.S. equity markets, and the fall
difficulties in the Nasdaq has made for tough sledding in emerging markets.
However, given the strong yield advantage of these bonds, the management team is
maintaining its exposure and focusing on countries with improving credit
stories. In the U.S., the management team intends to continue holding more
conservative, higher-rated and more liquid credits.
10
<PAGE>
CHASE VISTA STRATEGIC INCOME FUND
As of October 31, 2000 (Unaudited)
Average Annual Total Returns
<TABLE>
<CAPTION>
Since
Inception
1 Year (11/30/98)
<S> <C> <C>
Class A Shares
Without Sales Charge 2.59% 3.03%
With Sales Charge* -2.01% 0.60%
Class B Shares
Without CDSC 2.17% 2.77%
With CDSC** -2.55% 0.91%
Class C Shares
Without CDSC 2.15% 2.75%
With CDSC*** 1.20% 2.75%
Class I Shares 2.59% 3.07%
Class M Shares
Without Sales Charge 2.10% 2.73%
With Sales Charge**** -1.00% 1.11%
</TABLE>
Life of Fund Performance (11/30/98 to 10/31/00)
[START LINE CHART]
<TABLE>
<CAPTION>
Chase Vista Lehman Aggregate Lipper Multi-Sector
Strategic Income Fund Bond Index Income Funds Average
<S> <C> <C> <C>
10/30/98 9,550.00 10,000.00 10,000.00
10/31/99 9,857.76 9,994.68 9,931.26
10/31/00 10,115 10,724 9,913
</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.
* Sales charge on Class A Shares is 4.50%.
** Assumes 5% CDSC (contingent deferred sales charge) for the one year period
and 4% CDSC for the period since inception.
*** Assumes 1% CDSC for the one-year period and 0% CDSC for the period since
inception.
**** Sales charge on Class M is 3.0%.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
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
information presented for Class M Shares prior to their introduction is based on
historical expenses of the predecessor Class B Shares, which are different from
the actual expenses of the M Shares. All outstanding Class I shares were
redeemed effective November 5, 1999. The Fund continues to offer Class I shares
for sale. The performance presented for Class I shares after November 5, 1999 is
based on historical expenses of Class A shares which are different from the
actual expenses of the I shares.
11
<PAGE>
CHASE VISTA STRATEGIC INCOME FUND
As of October 31, 2000 (Unaudited)
The mountain chart illustrates comparative performance for $10,000 invested in
Class A Shares of Chase Vista Strategic Income Fund, the Lipper Multi-Sector
Income Funds Index and the Lehman Aggregate Bond Index from November 30, 1998 to
October 31, 2000. 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 indices 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 Lipper Multi-Sector Income Funds Index represents the performance of the 30
largest multi-sector 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 Aggregate Bond Index is composed of the Lehman Government/ Credit
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.
12
<PAGE>
--------------------------------------------------------------------------------
CHASE VISTA U.S. TREASURY INCOME FUND
Portfolio of Investments
--------------------------------------------------------------------------------
As of October 31, 2000
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
<S> <C> <C>
-------------------------------------------------------------------------------
Long-Term Investments -- 120.7%
-------------------------------------------------------------------------------
U.S. Treasury Securities -- 93.4%
---------------------------------------------------------------
U.S. Treasury Notes & Bonds,
$1,000 5.63%, 05/15/08 $ 986
2,550 6.00%, 08/15/09 2,576
1,900 6.25%, 02/28/02 1,901
7,600 6.25%, 02/15/03 7,648
6,500 6.38%, 08/15/27 6,850
1,700 6.88%, 05/15/06 1,781
8,000 7.50%, 02/15/05 8,489
9,300 7.88%, 08/15/01 @ 9,405
8,700 8.50%, 02/15/20 11,146
2,200 11.75%, 02/15/01 2,231
---------------------------------------------------------------
Total U.S. Treasury Securities 53,013
(Cost $54,413)
---------------------------------------------------------------
Residential Mortgage Backed Securities -- 27.3%
---------------------------------------------------------------
Mortgage Backed Pass-Through Securities -- 27.3%
Government National Mortgage Association,
4,310 Pool 478716, 8.00%, 09/15/29 4,382
4,938 Pool 487526, 6.50%, 06/15/29 4,766
6,315 Pool 500265, 7.50%, 11/15/29 6,337
---------------------------------------------------------------
Total Residential Mortgage Backed Securities 15,485
(Cost $15,468)
-------------------------------------------------------------------------------
Total Investments -- 120.7% $68,498
(Cost $69,881)
-------------------------------------------------------------------------------
<CAPTION>
Original Notional Unrealized
Notional Value at Appreciation/
Number of Expiration Value 10/31/00 (Depreciation)
Contracts Description Date (USD) (USD) (USD)
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Long Futures Outstanding
------------------------
25 2 Year Treasury Notes December, 2000 $ 4,998 $ 5,003 $ 5
50 5 Year Treasury Notes December, 2000 5,016 5,034 18
110 10 Year Treasury Notes December, 2000 10,960 11,077 117
Short Futures Outstanding
-------------------------
60 U.S. Treasury Bonds December, 2000 5,929 5,991 (62)
</TABLE>
See notes to financial statements.
13
<PAGE>
--------------------------------------------------------------------------------
CHASE VISTA U.S. GOVERNMENT SECURITIES FUND
Portfolio of Investments
--------------------------------------------------------------------------------
As of October 31, 2000
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
<S> <C> <C>
--------------------------------------------------------------------------------
Long-Term Investments -- 95.9%
--------------------------------------------------------------------------------
U.S. Treasury Securities -- 27.0%
---------------------------------
U.S. Treasury Notes & Bonds,
$1,800 6.13%, 08/15/29 $1,864
10 6.38%, 03/31/01 10
1,800 6.75%, 05/15/05 1,866
7,500 8.13%, 08/15/19 9,267
----------------------------------------------------------------
Total U.S. Treasury Securities 13,007
(Cost $12,223)
----------------------------------------------------------------
U.S. Government Agency Securities -- 7.9%
----------------------------------------------------------------
Federal National Mortgage Association,
800 6.38%, 06/15/09 782
2,000 6.50%, 08/15/04 1,999
1,000 6.63%, 04/15/02 1,002
----------------------------------------------------------------
Total U.S. Government Agency Securities 3,783
(Cost $3,751)
----------------------------------------------------------------
Residential Mortgage Backed Securities -- 61.0%
----------------------------------------------------------------
Collateralized Mortgage Obligations -- 6.7%
954 Federal Home Loan Mortgage Corp., Ser. 2035, Class PH,
6.15%, 08/15/18 942
749 Federal National Mortgage Association, Ser. 1993-250,
Class A, 6.15%, 09/25/16 740
Government National Mortgage Association
873 Ser. 1999-8, Class A, 6.25%, 06/16/25 846
700 Ser. 1999-10, Class PH, 5.75%, 06/20/20 691
------
3,219
Mortgage Backed Pass-Through Securities -- 54.3%
Federal Home Loan Mortgage Corp.,
3,889 Gold Pool C35369, 7.00%, 01/01/30 3,812
2,733 Gold Pool G00738, 8.00%, 07/01/27 2,771
Federal National Mortgage Association,
2,240 Pool 252875, 8.00%, 11/01/29 2,268
1,360 Pool 313720, 7.50%, 09/01/12 1,370
2,295 Pool 323788, 6.50%, 06/01/14 2,248
3,849 Pool 506654, 6.50%, 09/01/29 3,699
Government National Mortgage Association,
4,291 Pool 434628, 8.00%, 12/15/29 4,362
2,446 Pool 473829, 6.50%, 01/15/29 2,361
1,305 Pool 509443, 9.00%, 12/15/29 1,349
1,897 Pool 512996, 7.50%, 07/15/29 1,904
------
26,144
------
Total Residential Mortgage Backed Securities 29,363
(Cost $29,326)
-------------------------------------------------------------------------------
Total Long-Term Investments 46,153
(Cost $45,300)
-------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
14
<PAGE>
CHASE VISTA U.S. GOVERNMENT SECURITIES FUND
Portfolio of Investments (Continued)
As of October 31, 2000
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
<S> <C> <C>
--------------------------------------------------------------------------------
Short-Term Investment -- 0.9%
--------------------------------------------------------------------------------
Repurchase Agreement -- 0.9%
-------------------------------------------------------------------
$422 Greenwich Capital Markets, Inc., Tri Party, 6.55%,
due 11/01/00, Dated 10/31/00, Proceeds $422,
Secured by FHLMC, $445, 6.50%, due 09/15/23;
Market Value $432) $ 422
(Cost $422)
--------------------------------------------------------------------------------
Total Investments -- 96.8% $46,575
(Cost $45,722)
--------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
15
<PAGE>
--------------------------------------------------------------------------------
CHASE VISTA BOND FUND
Portfolio of Investments
--------------------------------------------------------------------------------
As of October 31, 2000
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
<S> <C> <C>
-------------------------------------------------------------------------------------
Long-Term Investments -- 101.9%
-------------------------------------------------------------------------------------
U.S. Treasury Security -- 10.0%
-------------------------------
$3,600 U.S. Treasury Notes, 8.13%, 08/15/19 $4,448
(Cost $4,170)
U.S. Government Agency Securities -- 7.0%
------------------------------------------------------------------
Federal Home Loan Bank,
1,200 7.25%, 05/13/05 1,232
1,300 7.63%, 05/15/07 1,370
500 Federal National Mortgage Association, 7.25%, 01/15/10 518
------------------------------------------------------------------
Total U.S. Government Agency Securities 3,120
(Cost $3,018)
------------------------------------------------------------------
Foreign Government Securities -- 4.0%
-------------------------------------
140 Bancomext Trust Division (Mexico), 11.25%, 05/30/06 152
650 Korea Development Bank (South Korea), 6.50%,
11/15/02 632
600 Quebec Province (Canada), 7.50%, 09/15/29 608
360 United Mexican States (Mexico), 9.88%, 02/01/10 374
------------------------------------------------------------------
Total Foreign Government Securities 1,766
(Cost $1,757)
------------------------------------------------------------------
Corporate Notes & Bonds -- 32.3%
--------------------------------
Aerospace -- 0.7%
300 Raytheon Co., #, 7.90%, 03/01/03 305
Automotive -- 1.1%
500 General Motors Acceptance Corp., 7.50%, 07/15/05 504
Banking -- 6.9%
600 Bank of America Corp., 7.80%, 02/15/10 608
400 Bank One Corp., 7.88%, 08/01/10 402
600 J.P. Morgan & Co., Inc., MTN, 6.00%, 01/15/09 549
420 Keystone Financial Mid-Atlantic Funding Corp., MTN,
7.30%, 05/15/04 420
500 Manufacturers & Traders Trust Co., 8.00%, 10/01/10 495
600 MBNA America Bank, N.A., 7.75%, 09/15/05 594
------
3,068
Financial Services -- 2.5%
500 CIT Group, Inc., 7.63%, 08/16/05 499
600 Heller Financial, Inc., 8.00%, 06/15/05 609
------
1,108
Insurance -- 2.7%
900 Conseco, Inc., 8.50%, 10/15/02 702
500 GE Global Insurance Holding Corp., 7.75%, 06/15/30 504
------
1,206
Manufacturing -- 1.5%
680 Louisiana-Pacific Corp., 8.88%, 08/15/10 674
Multi-Media -- 3.0%
500 Clear Channel Communications, Inc., 7.88%, 06/15/05 504
800 Time Warner Entertainment Co. LP, 8.38%, 03/15/23 839
------
1,343
</TABLE>
See notes to financial statements.
16
<PAGE>
CHASE VISTA BOND FUND
Portfolio of Investments (Continued)
As of October 31, 2000
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
<S> <C> <C>
------------------------------------------------------------------------------------------
Long-Term Investments -- Continued
------------------------------------------------------------------------------------------
Oil & Gas -- 6.6%
$ 600 PEMEX Finance Limited (Cayman Islands), 9.14%,
08/15/04 $ 614
600 Repsol International Finance BV (Netherlands),
7.45%, 07/15/05 603
Valero Energy Corp.,
500 8.38%, 06/15/05 518
500 8.75%, 06/15/30 526
700 YPF Sociedad Anonima (Argentina), 7.25%, 03/15/03 684
------
2,945
Packaging -- 0.7%
330 Tenneco Packaging, Inc., 8.00%, 04/15/07 316
Pipelines -- 2.2%
500 Duke Energy Field Services LLC, 7.88%, 08/16/10 510
500 El Paso Energy Corp., 6.75%, 05/15/09 475
------
985
Telecommunications -- 2.2%
500 U.S. West Capital Funding, Inc., 6.25%, 07/15/05 478
500 Vodafone AirTouch PLC (United Kingdom), #, 7.63%,
02/15/05 507
------
985
Utilities -- 2.2%
600 Cilcorp Inc., 8.70%, 10/15/09 618
450 Israel Electric Corp. (Israel), MTN, #, 7.75%, 12/15/27 383
------
1,001
------------------------------------------------------------------------
Total Corporate Notes & Bonds 14,440
(Cost $14,530)
------------------------------------------------------------------------
Residential Mortgage Backed Securities -- 39.4%
-----------------------------------------------
Mortgage Backed Pass-Through Securities -- 39.4%
Federal National Mortgage Association,
2,550 Pool 252093, 6.50%, 11/01/28 2,452
1,133 Pool 252339, 6.00%, 03/01/29 1,063
2,314 Pool 323633, 7.00%, 03/01/29 2,268
2,132 Pool 323645, 7.50%, 04/01/29 2,133
324 Pool 323688, 7.50%, 03/01/29 324
252 Pool 484753, 6.50%, 03/01/29 242
778 Pool 490445, 6.00%, 03/01/29 729
768 Pool 534064, 8.00%, 03/01/30 778
2,074 Pool 535052, 6.00%, 11/01/14 1,997
747 Pool 543456, 7.50%, 07/01/15 753
Government National Mortgage Association,
1,260 Pool 487224, 6.50%, 05/15/29 1,216
1,062 Pool 510285, 7.00%, 08/15/29 1,047
738 Pool 517850, 7.50%, 09/15/29 741
818 Pool 527141, 8.00%, 03/15/30 831
997 Pool 531112, 8.00%, 07/15/30 1,014
------------------------------------------------------------------------
Total Residential Mortgage Backed Securities 17,588
(Cost $17,767)
------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
17
<PAGE>
CHASE VISTA BOND FUND
Portfolio of Investments (Continued)
As of October 31, 2000
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
<S> <C> <C>
-----------------------------------------------------------------------------
Long-Term Investments -- Continued
-----------------------------------------------------------------------------
Commercial Mortgage Backed Securities -- 3.0%
---------------------------------------------
Bear Stearns Commercial Mortgage Securities
$ 600 Ser. 2000-WF2, Class A1, 7.11%, 09/15/09 $ 603
500 Ser. 2000-WF2, Class A2, 7.32%, 08/15/10 503
249 LB-UBS Commercial Mortgage Trust, Ser. 2000-C4,
Class A1, 7.18%, 09/15/09 250
----------------------------------------------------------------
Total Commercial Mortgage Backed Securities 1,356
(Cost $1,353)
----------------------------------------------------------------
Asset Backed Securities -- 6.2%
-------------------------------
MBNA Master Credit Card Trust,
750 Ser. 1999-J, Class A, 7.00%, 02/15/12 753
800 Ser. 1999-M, Class B, 6.80%, 04/16/07 798
500 Nomura CBO LTD, Ser. 1997-1, Class A2, FRN, #,
6.67%, 05/15/09 456
750 Residential Funding Mortgage Securities II, Ser.
2000-HI1, Class AI4, 7.79%, 01/25/14 760
----------------------------------------------------------------
Total Asset Backed Securities 2,767
(Cost $2,797)
-----------------------------------------------------------------------------
Total Long-Term Investments 45,485
(Cost $45,392)
-----------------------------------------------------------------------------
Short-Term Investments -- 2.0%
-----------------------------------------------------------------------------
U.S. Treasury Security -- 0.4%
----------------------------------------------------------------
200 U.S. Treasury Bill, 6.18%, 12/07/00 @ 199
(Cost $199)
U.S. Government Agency Security -- 1.6%
----------------------------------------------------------------
700 Student Loan Marketing Association, DN,
6.45%, 11/01/00 700
(Cost $700)
-----------------------------------------------------------------------------
Total Short-Term Investments 899
(Cost $899)
-----------------------------------------------------------------------------
Total Investments -- 103.9% $46,384
(Cost $46,291)
-----------------------------------------------------------------------------
<CAPTION>
Original Notional Unrealized
Notional Value at Appreciation/
Number of Expiration Value 10/31/00 (Depreciation)
Contracts Description Date (USD) (USD) (USD)
<S> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------
Long Futures Outstanding
------------------------
30 5 Year Treasury Notes December, 2000 $3,012 $3,020 $8
Short Futures Outstanding
-------------------------
30 10 Year Treasury Notes December, 2000 3,000 3,021 (21)
</TABLE>
See notes to financial statements.
18
<PAGE>
CHASE VISTA SHORT TERM BOND FUND
Portfolio of Investments
As of October 31, 2000
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
<S> <C> <C>
------------------------------------------------------------------------------------------
Long-Term Investments -- 94.9%
------------------------------------------------------------------------------------------
U.S. Treasury Securities -- 4.7%
--------------------------------
U.S. Treasury Notes & Bonds,
$ 1,500 4.63%, 12/31/00 $1,495
1,000 5.88%, 11/15/04 1,001
-------------------------------------------------------------------
Total U.S. Treasury Securities 2,496
(Cost $2,493)
------------------------------------------------------------------------
U.S. Government Agency Securities -- 18.4%
------------------------------------------------------------------------
4,900 Federal Home Loan Bank, 7.13%, 02/15/05 5,015
2,350 Federal Home Loan Mortgage Corp., 7.38%, 05/15/03 2,400
2,350 Federal National Mortgage Association, 5.75%, 04/15/03 2,313
-------------------------------------------------------------------
Total U.S. Government Agency Securities 9,728
(Cost $9,689)
------------------------------------------------------------------------
Corporate Notes & Bonds -- 49.3%
--------------------------------
Automotive -- 11.4%
1,500 DaimlerChrysler North America Holding Corp.
(Germany), MTN, 6.84%, 10/15/02 1,499
1,500 Ford Motor Credit Co., 7.25%, 01/15/03 1,504
1,500 General Motors Acceptance Corp., MTN, 8.25%,
02/28/02 1,525
1,500 Paccar Financial Corp., MTN, 6.79%, 08/15/02 1,503
------
6,031
Banking -- 8.5%
1,400 Bank of America Corp., 8.38%, 03/15/02 1,429
1,500 Bank of New York Co., Inc., 7.63%, 07/15/02 1,517
1,500 Bank One Corp., 8.10%, 03/01/02 1,522
------
4,468
Diversified -- 2.8%
1,500 General Electric Capital Corp., MTN, 6.75%, 09/11/03 1,501
Financial Services -- 13.6%
1,700 Associates Corp. of North America, 5.88%, 07/15/02 1,668
1,000 Citigroup, Inc., MTN, 6.50%, 06/14/02 984
1,500 Goldman Sachs Group LP, #, 6.60%, 07/15/02 1,479
1,500 Household Finance Corp., MTN, FRN, 6.13%, 07/15/12 1,478
1,500 International Lease Finance Corp., MTN, 8.16%, 02/14/02 1,524
------
7,133
Insurance -- 4.0%
1,500 American General Finance Corp., 5.90%, 01/15/03 1,467
750 Conseco, Inc., MTN, 7.60%, 06/21/01 649
------
2,116
Machinery & Engineering Equipment -- 2.3%
1,200 Caterpillar Financial Services Corp., MTN, 6.50%,
10/15/02 1,191
Pipelines -- 1.9%
1,000 EL Paso Energy Corp., Class B, 6.63%, 07/15/01 994
Retailing -- 1.9%
1,000 Dayton-Hudson Corp., 6.40%, 02/15/03 987
</TABLE>
See notes to financial statements.
19
<PAGE>
CHASE VISTA SHORT TERM BOND FUND
Portfolio of Investments (Continued)
As of October 31, 2000
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
<S> <C> <C>
-----------------------------------------------------------------------------------------
Long-Term Investments -- Continued
-----------------------------------------------------------------------------------------
Telecommunications -- 1.9%
$1,000 GTE South, Inc., Class B, 7.25%, 08/01/02 $1,006
Utilities -- 1.0%
550 TXU Eastern Funding (United Kingdom), 6.15%,
05/15/02 538
-----------------------------------------------------------------------
Total Corporate Notes & Bonds 25,965
(Cost $26,005)
-----------------------------------------------------------------------
Residential Mortgage Backed Securities -- 1.3%
----------------------------------------------
Collateralized Mortgage Obligations -- 1.3%
720 Federal National Mortgage Association, Ser. 1993-250,
Class A, 6.15%, 09/25/16 711
(Cost $716)
-----------------------------------------------------------------------
Commercial Mortgage Backed Securities -- 0.2%
---------------------------------------------
110 Credit Suisse First Boston Mortgage Securities Corp.,
Ser. 1997-SPCE, Class A, #, 6.65%, 06/20/03 109
(Cost $110)
-----------------------------------------------------------------------
Asset Backed Securities -- 21.0%
--------------------------------
1,400 American Express Master Trust, Ser. 1998-1 , Class A,
5.90%, 04/15/04 1,375
1,500 Carco Auto Loan Master Trust, Ser. 1999-4, Class A,
6.43%, 11/15/04 1,492
1,500 Dayton Hudson Credit Card Master Trust, Ser. 1997-1,
Class A, 6.25%, 08/25/05 1,488
1,000 Ford Credit Auto Owner Trust, Ser. 2000-B, Class A5,
7.07%, 04/15/04 1,008
1,000 GE Capital Mortgage Services, Inc., Ser. 1999-HE3,
Class A2, 7.00%, 09/25/13 994
1,500 MBNA Master Credit Card Trust, Ser. 1999-I, Class A,
6.40%, 01/18/05 1,495
750 Residential Asset Securities Corp., Ser. 1999-KS2,
Class A14, 6.80%, 10/25/23 743
1,000 Standard Credit Card Trust, Ser. 93, 5.95%, 10/07/04 980
1,500 Travelers Bank Credit Card Master Trust, Ser. 1998-1,
Class A, 6.00%, 01/18/05 1,481
---------------------------------------------------------------------
Total Asset Backed Securities 11,056
(Cost $10,992)
---------------------------------------------------------------------
Long-Term Investments 50,065
(Cost $50,005)
---------------------------------------------------------------------
Short-Term Investments -- 7.6%
---------------------------------------------------------------------------------------
Shares
Money Market Fund -- 0.4%
-------------------------
225 Goldman Sachs ILA Government Portfolio 225
(Cost $225)
</TABLE>
See notes to financial statements.
20
<PAGE>
CHASE VISTA SHORT TERM BOND FUND
Portfolio of Investments (Continued)
As of October 31, 2000
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
<S> <C> <C>
-----------------------------------------------------------------------------------------
Short-Term Investments -- Continued
-----------------------------------------------------------------------------------------
Repurchase Agreement -- 7.2%
----------------------------
$3,806 Greenwich Capital Markets, Inc., Tri Party, 6.55%,
due 11/01/00, (Dated 10/31/00, Proceeds $3,807,
Secured by U.S. Government Agency Obligations,
$3,839, 6.80% through 8.50%, due 08/25/18
through 09/20/30; Market Value $3,883) $ 3,806
(Cost $3,806)
----------------------------------------------------------------------------------------
Total Short-Term Investments 4,031
(Cost $4,031)
----------------------------------------------------------------------------------------
Total Investments -- 102.5% $54,096
(Cost $54,036)
----------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
21
<PAGE>
--------------------------------------------------------------------------------
CHASE VISTA STRATEGIC INCOME FUND
Portfolio of Investments
--------------------------------------------------------------------------------
As of October 31, 2000
(Amounts in Thousands)
<TABLE>
Shares Issuer Value
<S> <C> <C>
--------------------------------------------------------------------------------
Long-Term Investments -- 88.5%
--------------------------------------------------------------------------------
Common Stock -- 0.1%
--------------------
Telecommunications -- 0.1%
1 Airgate PCS, Inc. * $ 18
1 World Access, Inc. * 2
------------------------------------------------------------------
Total Common Stock 20
(Cost $9)
------------------------------------------------------------------
<CAPTION>
Principal
Amount
(USD)
---------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Securities -- 6.7%
--------------------------------
U.S. Treasury Notes & Bonds,
$ 300 5.88%, 10/31/01, + 299
200 6.13%, 08/15/29 207
200 6.38%, 04/30/02, + 201
395 6.50%, 08/15/05 406
600 8.13%, 08/15/19, + 741
--------------------------------------------------------------
Total U.S. Treasury Securities 1,854
(Cost $1,835)
-------------------------------------------------------------------
U.S. Government Agency Securities -- 5.9%
-----------------------------------------
Federal National Mortgage Association,
500 6.50%, 08/15/04, + 499
500 6.63%, 09/15/09, + 497
300 Inter-American Development Bank, 7.38%, 01/15/10 313
300 International Bank for Reconstruction & Development,
7.00%, 01/27/05 305
--------------------------------------------------------------
Total U.S. Government Agency Securities 1,614
(Cost $1,600)
-------------------------------------------------------------------
Foreign Government Securities -- 22.8%
--------------------------------------
1,514 Brazil Indexed Currency Linked Note (principal in
Brazilian real) (Brazil), 18.08%, 06/24/03 419
Federal Republic of Brazil (Brazil),
185 C Bonds, 8.00%, 04/15/14 138
250 11.00%, 08/17/40 191
250 12.75%, 01/15/20 230
250 14.50%, 10/15/09 264
300 Government of Canada (Canada), 6.38%, 11/30/04 298
326 Kingdom of Morocco Consolidated Loan (Morocco),
Tranche A, FRN, 7.75%, 01/01/09 284
National Republic of Bulgaria (Bulgaria),
200 FRN, PDI, 7.75%, 07/28/11 149
200 Ser. A, FRN, 7.75%, 07/28/24 150
300 Province of Ontario (Canada), +, 7.00%, 08/04/05 304
300 Province of Quebec (Canada), 5.75%, 02/15/09 275
Republic of Argentina (Argentina),
300 Ser. L, SUB, 6.00%, 11/30/00 196
86 FRB, 7.63%, 03/31/05 76
94 Ser. L, FRN, 7.63%, 03/31/05 82
100 Ser. XW, 11.00%, 12/04/05 89
Republic of Colombia (Colombia),
250 8.63%, 04/01/08 191
250 FRN, 12.83%, 08/13/05 242
</TABLE>
See notes to financial statements.
22
<PAGE>
CHASE VISTA STRATEGIC INCOME FUND
Portfolio of Investments (Continued)
As of October 31, 2000
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
<S> <C> <C>
-----------------------------------------------------------------------------------------
Long-Term Investments -- Continued
-----------------------------------------------------------------------------------------
Foreign Government Securities -- Continued
-----------------------------------------------------------------------
$ 14 Republic of Ecuador (Ecuador), 12.00%, 11/15/12 $ 9
300 Republic of Panama (Panama), 10.75%, 05/15/20 292
250 Republic of Peru (Peru), PDI, FRN, 4.50%, 03/07/17 151
Republic of Philippines (Philippines),
250 9.88%, 01/15/19 186
250 10.63%, 03/16/25 189
200 Republic of South Africa (South Africa), 9.13%, 05/19/09 195
125 Republic of Venezuela (Venezuela), 13.63%, 08/15/18 114
Russian Federation (Russia),
503 2.25%, 03/31/30 190
59 8.25%, 03/31/10 38
140 8.75%, 07/24/05 108
250 10.00%, 06/26/07 182
322,135 Turkey Treasury Bill Credit Linked Note (principal in
Turkish Lira, in millions), 85.48%, 02/21/01 403
United Mexican States (Mexico),
350 8.50%, 02/01/06 343
250 11.38%, 09/15/16 282
------------------------------------------------------------------
Total Foreign Government Securities 6,260
(Cost $6,681)
------------------------------------------------------------------
Corporate Notes & Bonds -- 39.0%
--------------------------------
Apparel -- 0.5%
240 J. Crew Group, Ser. B, SUB, 0.00%, 10/15/02 139
Automotive -- 1.4%
200 Daimler Chrysler North America Holding Corp., 8.00%,
06/15/10 204
100 General Motors Acceptance Corp., +, 5.50%, 01/14/02 98
40 Heafner Tire Group Inc., Ser. D, 10.00%, 05/15/08 6
75 Lear Corp., 7.96%, 05/15/05 70
-----
378
Banking -- 2.3%
270 Banco Nacional De Desenvolvimiento Economico
(Brazil), FRN, 12.55%, 06/16/08 249
200 Bank One Corp., +, 7.88%, 08/01/10 201
25 Sovereign Bancorp Inc., +, 6.63%, 03/15/01 25
195 U.S. Bank, NA, +, 5.70%, 12/15/08 171
-----
646
Biotechnology -- 0.5%
125 Bio-Rad Laboratories, 11.63%, 02/15/07 130
Broadcasting/Cable -- 0.1%
10 Lin Television Corp., 8.38%, 03/01/08 9
25 USA Networks, Inc., +, 6.75%, 11/15/05 25
-----
34
Chemicals -- 0.5%
10 Agricultural Minerals and Chemicals, Inc., 10.75%,
09/30/03 7
10 Lyondell Chemical Co., 9.63%, 05/01/07 10
200 Pioneer Americas, Inc., Ser. B, 9.25%, 06/15/07 90
30 Scotts Co., #, 8.63%, 01/15/09 29
20 Terra Industries, Inc., Ser. B, 10.50%, 06/15/05 12
-----
148
</TABLE>
23
See notes to financial statements.
<PAGE>
CHASE VISTA STRATEGIC INCOME FUND
Portfolio of Investments (Continued)
As of October 31, 2000
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
<S> <C> <C>
-----------------------------------------------------------------------------------------
Long-Term Investments -- Continued
-----------------------------------------------------------------------------------------
Computer Networks -- 0.2%
$ 49 Intersil Corp., 13.25%, 08/15/09 $ 55
Computers/Computer Hardware -- 0.7%
200 Hewlett-Packard Co., 7.15%, 06/15/05 202
Construction Materials -- 0.2%
100 Henry Co., Ser. B, 10.00%, 04/15/08 50
Consumer Products -- 0.9%
315 Drypers Corp., Ser. B, -, 10.25%, 06/15/07 48
200 Procter & Gamble Co., +, 6.60%, 12/15/04 199
----
247
Diversified -- 0.7%
200 Textron, Inc., +, 6.38%, 07/15/04 194
Electronics/Electrical Equipment -- 0.3%
90 Fisher Scientific International, 9.00%, 02/01/08 82
Entertainment/Leisure -- 2.4%
25 Anchor Gaming, #, 9.88%, 10/15/08 25
15 Harrah's Operating Co., Inc., 7.88%, 12/15/05 15
30 Hollywood Casino Shreveport/Shreveport Capital Corp.,
13.00%, 08/01/06 32
100 International Game Technology, 8.38%, 05/15/09 97
50 Mandalay Resort Group, Ser. B, 10.25%, 08/01/07 51
MGM Mirage,
30 8.50%, 09/15/10 30
90 9.75%, 06/01/07 93
200 Mohegan Tribal Gaming Authority, 8.13%, 01/01/06 193
125 Park Place Entertainment Corp., 9.38%, 02/15/07 126
----
662
Environmental Services -- 0.7%
110 Safety-Kleen Services, Inc., -, 9.25%, 06/01/08 2
50 Stericycle, Inc., Ser. B, 12.38%, 11/15/09 53
155 Waste Management, Inc., 7.00%, 10/01/04 146
----
201
Financial Services -- 1.5%
155 FleetBoston Financial Corp., +, 7.25%, 09/15/05 156
200 Lehman Brothers Holdings, Inc., 8.25%, 06/15/07 204
55 RBF Finance Co., 11.38%, 03/15/09 63
----
423
Food/Beverage Products -- 2.0%
125 Archibald Candy Corp., 10.25%, 07/01/04 70
180 Conagra Foods, Inc., +, 7.88%, 09/15/10 183
300 Gruma SA de CV (Mexico), 7.63%, 10/15/07 227
105 Luigino, Inc., 10.00%, 02/01/06 83
----
563
Health Care/Health Care Services -- 1.5%
50 Abbey Healthcare Group, Inc., 9.50%, 11/01/02 50
25 Beckman Coulter, Inc., 7.10%, 03/04/03 24
95 Fresenius Medical Care Capital Trust I, 9.00%, 12/01/06 93
</TABLE>
See notes to financial statements.
24
<PAGE>
CHASE VISTA STRATEGIC INCOME FUND
Portfolio of Investments (Continued)
As of October 31, 2000
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
<S> <C> <C>
-----------------------------------------------------------------------------------------
Long-Term Investments -- Continued
-----------------------------------------------------------------------------------------
Health Care/Health Care Services -- Continued
Healthsouth Corp.,
$ 40 6.88%, 06/15/05 $ 34
85 7.00%, 06/15/08 72
110 IASIS Healthcare Corp., 13.00%, 10/15/09 102
20 Magellan Health Services, 9.00%, 02/15/08 13
15 Triad Hospitals Holdings, Inc., Ser. B, 11.00%, 05/15/09 16
----
404
Hotels/Other Lodging -- 0.2%
50 Extended Stay America, Inc., 9.15%, 03/15/08 47
Insurance -- 0.3%
100 Conseco, Inc., +, 8.50%, 10/15/02 78
Internet Services/Software -- 0.5%
PSInet, Inc.,
30 10.50%, 12/01/06 14
115 11.00%, 08/01/09 55
135 Rhythms NetConnections, Inc., 12.75%, 04/15/09 63
----
132
Manufacturing -- 1.0%
40 GenTek, Inc., 11.00%, 08/01/09 40
145 J.B. Poindexter & Co., Inc., 12.50%, 05/15/04 135
100 Tekni-Plex, Inc., #, 12.75%, 06/15/10 91
20 Transdigm, Inc., 10.38%, 12/01/08 19
----
285
Metals/Mining -- 0.8%
40 AK Steel Corp., 9.13%, 12/15/06 39
200 Kaiser Aluminum & Chemical, 12.75%, 02/01/03 151
65 Sheffield Steel Corp., Ser. B, 11.50%, 12/01/05 38
----
228
Multi-Media -- 1.6%
120 British SKY Broadcasting PLC (United Kingdom),
6.88%, 02/23/09 102
85 Charter Communications Holdings LLC/ Charter
Communications Holdings Capital Corp., 8.63%,
04/01/09 76
50 K-III Communications Corp., 8.50%, 02/01/06 48
200 Time Warner Entertainment Co. LP, 8.38%, 03/15/23 210
----
436
Oil & Gas -- 3.4%
200 Amerada Hess Corp., 7.88%, 10/01/29 201
70 Chesapeake Energy Corp., Ser. B, 9.63%, 05/01/05 70
20 Empire Gas Corp., -, SUB, 12.88%, 07/15/04 6
100 Frontier Oil Corp., Ser. A, 9.13%, 02/15/06 89
135 Newpark Resources, Inc., Ser. B, 8.63%, 12/15/07 125
75 Ocean Energy, Inc., 8.63%, 08/01/05 75
20 Plains Resources, Inc., #, 10.25%, 03/15/06 20
100 Pogo Producing Co., Ser. B, 8.75%, 05/15/07 97
50 Pool Energy Services Co., Ser. B, 8.63%, 04/01/08 51
200 Repsol International Finance BV (Netherlands),
7.45%, 07/15/05 201
----
935
</TABLE>
See notes to financial statements.
25
<PAGE>
CHASE VISTA STRATEGIC INCOME FUND
Portfolio of Investments (Continued)
As of October 31, 2000
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
<S> <C> <C>
-----------------------------------------------------------------------------------------
Long-Term Investments -- Continued
-----------------------------------------------------------------------------------------
Packaging -- 0.9%
$120 Ball Corp., +, 8.25%, 08/01/08 $113
70 Four M Corp., Ser. B, 12.00%, 06/01/06 66
100 Owens-Illinois, Inc., 7.85%, 05/15/04 75
----
254
Paper/Forest Products -- 0.6%
Buckeye Technologies, Inc.,
75 8.00%, 10/15/10 70
25 9.25%, 09/15/08 25
75 Tembec Industries, Inc. (Canada), 8.63%, 06/30/09 74
----
169
Pipelines -- 0.6%
150 Enron Corp., 7.88%, 06/15/03 153
Printing & Publishing -- 0.5%
Hollinger International Publishing,
90 9.25%, 02/01/06 88
40 9.25%, 03/15/07 40
----
128
Restaurants/Food Services -- 0.2%
60 NE Restaurant Co., Inc., 10.75%, 07/15/08 44
Retailing -- 3.1%
30 Apple South, Inc., 9.75%, 06/01/06 23
Grupo Elektra SA de CV (Mexico),
300 #, 12.00%, 04/01/08 274
500 12.75%, 05/15/01 508
60 Stater Brothers Holdings, 10.75%, 08/15/06 48
----
853
Shipping/Transportation -- 0.4%
45 Gulfmark Offshore, Inc., 8.75%, 06/01/08 42
75 International Shipping Corp., Ser. B, 7.75%, 10/15/07 67
----
109
Telecommunications -- 6.9%
60 Adelphia Business Solutions, Inc., 12.00%, 11/01/07 27
70 Advanced Radio Telecom Corp., 14.00%, 02/15/07 42
60 Airgate PCS, Inc., SUB, 0.00%, 10/01/04 34
60 BTI Telecom Corp., -, 10.50%, 09/15/07 24
Call-Net Enterprises, Inc. (Canada),
25 8.00%, 08/15/08 10
130 9.38%, 05/15/09 46
75 Crown Castle International Corp., 10.75%, 08/01/11 77
175 EchoStar Broadband Corp., #, 10.38%, 10/01/07 174
75 Horizon PCS, Inc., SUB, #, 0.00%, 10/01/05 36
40 Insight Midwest LP/Insight Capital, Inc., 9.75%, 10/01/09 39
25 Ipcs, Inc., SUB, #, 0.00%, 07/15/05 12
200 MCI Worldcom, Inc., +, 7.55%, 04/01/04 201
100 Metronet Communications Corp. (Canada), SUB, +,
0.00%, 06/15/03 80
65 Nextel Partners, Inc., #, 11.00%, 03/15/10 65
160 NorthPoint Communications Group, Inc., 12.88%,
02/15/10 148
</TABLE>
See notes to financial statements.
26
<PAGE>
CHASE VISTA STRATEGIC INCOME FUND
Portfolio of Investments (Continued)
As of October 31, 2000
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
<S> <C> <C>
-----------------------------------------------------------------------------------------
Long-Term Investments -- Continued
-----------------------------------------------------------------------------------------
Telecommunications -- Continued
$100 PageMart Nationwide, SUB, 15.00%, 02/01/05 $ 92
180 Primus Telecommunications Group, 11.75%, 08/01/04 88
90 RSL Communications LTD (Bermuda), 12.25%, 11/15/06 16
120 Startec Global Communications Corp., 12.00%, 05/15/08 78
200 Telefonica Europe BV (Netherlands), 7.75%, 09/15/10 200
230 US Unwired, Inc., SUB, 0.00%, 11/01/04 113
250 Viatel, Inc., SUB, 0.00%, 04/15/03 74
Winstar Communications, Inc.,
125 #, 12.50%, 04/15/08 91
25 #, 12.75%, 04/15/10 18
100 World Access, Inc., Ser. B, 13.25%, 01/15/08 73
------
1,858
Telecommunications Equipment -- 1.0%
200 Lucent Technologies, Inc., +, 6.45%, 03/15/29 156
150 Williams Communications Group, Inc., 10.88%, 10/01/09 126
------
282
Tools/Equipment -- 0.2%
115 International Knife & Saw, Inc., 11.38%, 11/15/06 57
Utilities -- 0.4%
35 AES Corp., 9.38%, 09/15/10 34
75 AES Drax Energy LTD (United Kingdom), #, 11.50%,
08/30/10 79
------
113
----------------------------------------------------------------------
Total Corporate Notes & Bonds 10,719
(Cost $11,966)
----------------------------------------------------------------------
Residential Mortgage Backed Securities -- 12.2%
----------------------------------------------------------------------
Mortgage Backed Pass-Through Securities -- 12.2%
Federal National Mortgage Association,
120 Pool 252254, +, 6.00%, 02/01/29 113
144 Pool 252496, +, 6.00%, 06/01/29 135
44 Pool 252567, +, 6.50%, 07/01/14 43
40 Pool 252568, +, 7.50%, 06/01/29 40
142 Pool 252872, 6.50%, 11/01/29 137
46 Pool 252977, +, 7.00%, 01/01/15 46
20 Pool 313720, +, 7.50%, 09/01/12 20
37 Pool 323633, +, 7.00%, 03/01/29 37
30 Pool 323714, +, 7.00%, 04/01/14 30
71 Pool 445047, +, 6.50%, 09/01/13 70
47 Pool 481582, +, 6.50%, 02/01/29 45
68 Pool 484753, +, 6.50%, 03/01/29 65
119 Pool 486622, 6.00%, 02/01/29 112
66 Pool 487068, +, 7.50%, 03/01/29 66
106 Pool 488485, +, 6.00%, 03/01/14 102
66 Pool 488518, +, 6.50%, 05/01/14 65
322 Pool 489198, +, 6.50%, 08/01/29 309
144 Pool 489248, +, 7.00%, 08/01/29 142
90 Pool 493310, +, 6.00%, 06/01/14 86
99 Pool 493629, +, 6.00%, 04/01/29 93
31 Pool 493748, +, 6.00%, 05/01/14 30
</TABLE>
See notes to financial statements.
27
<PAGE>
CHASE VISTA STRATEGIC INCOME FUND
Portfolio of Investments (Continued)
As of October 31, 2000
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
<S> <C> <C>
---------------------------------------------------------------------------------------------
Long-Term Investments -- Continued
---------------------------------------------------------------------------------------------
Mortgage Backed Pass-Through Securities -- Continued
Federal National Mortgage Association -- Continued
$ 133 Pool 499314, +, 7.50%, 08/01/29 $ 133
45 Pool 503097, +, 6.50%, 06/01/29 43
95 Pool 503599, +, 6.50%, 06/01/29 91
88 Pool 511599, +, 8.00%, 12/01/29 89
36 Pool 512061, +, 7.00%, 11/01/14 36
149 Pool 513452, +, 8.00%, 09/01/29 151
222 Pool 522461, +, 7.00%, 11/01/29 217
125 Pool 523930, +, 8.00%, 11/01/29 127
79 Pool 526735, +, 7.50%, 12/01/29 79
94 Pool 527266, 6.50%, 11/01/14 92
Government National Mortgage Association,
66 Pool 472800, +, 6.50%, 05/15/29 63
57 Pool 492730, +, 6.50%, 05/15/29 55
88 Pool 492738, +, 7.00%, 06/15/29 87
95 Pool 509941, +, 7.00%, 06/15/29 93
196 Pool 508316, 8.00%, 02/15/30 200
--------------------------------------------------------------------------
Total Residential Mortgage Backed Securities 3,342
(Cost $3,338)
--------------------------------------------------------------------------
Commercial Mortgage Backed Securities -- 0.9%
---------------------------------------------
200 Bear Stearns Commercial Mortgage Securities, Ser.
2000-WF2, Class A1, +, 7.11%, 09/15/09 201
50 LB-UBS Commercial Mortgage Trust, Ser. 2000-C4,
Class A1, +, 7.18%, 09/15/09 50
--------------------------------------------------------------------------
Total Commercial Mortgage Backed Securities 251
(Cost $250)
--------------------------------------------------------------------------
Asset Backed Securities -- 0.9%
-------------------------------
25 American Express Credit Account Master Trust, Ser.
1997-1, Class A, +, 6.40%, 04/15/05 25
25 Citibank Credit Card Master Trust I, Ser. 1997-2, Class A,
+, 6.55%, 02/15/04 25
200 MBNA Master Credit Card Trust, Ser. 1999-J, Class A,
7.00%, 02/15/12 201
--------------------------------------------------------------------------
Total Asset Backed Securities 251
(Cost $251)
--------------------------------------------------------------------------
Shares
Warrant -- 0.0%
---------------
Telecommunications -- 0.0%
1 Startec Global Communications Corp., expires 05/15/08 1
(Cost $0)
---------------------------------------------------------------------------------------------
Total Long-Term Investments 24,312
(Cost $25,930)
---------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
28
<PAGE>
CHASE VISTA STRATEGIC INCOME FUND
Portfolio of Investments (Continued)
As of October 31, 2000
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
Amount
(USD) Issuer Value
<S> <C> <C>
-----------------------------------------------------------------------------------------
Short-Term Investments -- 10.4%
-----------------------------------------------------------------------------------------
Commercial Paper -- 5.4%
------------------------
$ 270 American Express Credit Corp., 6.47%, 11/09/00 $ 270
203 Exxon Mobile Corp., 6.50%, 11/02/00 203
Ford Motor Credit Co.,
110 6.48%, 11/09/00 110
224 6.50%, 11/02/00 224
300 General Electric Capital Corp., 6.48%, 11/06/00 300
388 Household Finance Corp., 6.49%, 11/17/00 388
--------------------------------------------------------------------
Total Commercial Paper 1,495
(Cost $1,495)
-----------------------------------------------------------------------
Repurchase Agreement -- 5.0%
-----------------------------------------------------------------------
1,382 Greenwich Capital Markets, Inc., Tri Party, 6.55%, due
11/01/00, (Dated 10/31/00, Proceeds $1,382, Secured
by GNMA, $1,420, 7.00%, due 01/15/28; Market Value
$1,410) 1,382
(Cost $1,382)
-----------------------------------------------------------------------------------------
Total Short-Term Investments 2,877
(Cost $2,877)
-----------------------------------------------------------------------------------------
Total Investments -- 98.9% $27,189
(Cost $28,807)
-----------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
29
<PAGE>
CHASE VISTA STRATEGIC INCOME FUND
Portfolio of Investments (Continued)
Summary of Investments by Country, October 31, 2000
<TABLE>
<CAPTION>
Country % of Investment Securities
-------------------------------------------------
<S> <C>
United States 69.0%
Mexico 5.9%
Brazil 5.6%
Canada 4.0%
Russia 1.9%
Turkey 1.7%
Argentina 1.6%
Colombia 1.6%
Philippines 1.6%
Netherlands 1.4%
Bulgaria 1.1%
Panama 1.0%
Morocco 1.0%
South Africa 0.7%
United Kingdom 0.6%
Peru 0.5%
Venezuela 0.4%
Bermuda 0.3%
Ecuador 0.1%
---------------------------------------
Total 100.0%
</TABLE>
Index:
* -- Non-income producing security.
# -- Security may only be sold to qualified institutional buyers.
[tilde]-- Security is considered illiquid, and may be difficult to sell.
- -- Security is currently in default of interest payments.
@ -- All or a portion of this security is segregated for futures contracts.
+ -- All or a portion of this security is segregated for forward foreign
currency contracts.
CBO -- Collateralized Bond Obligation.
DN -- Discount Note. The rate shown is the effective yield at the time of
purchase.
FHLMC -- Federal Home Loan Mortgage Corporation.
FRB -- Floating Rate Bond: The maturity date shown is the final maturity
date. The rate shown is the rate in effect at October 31, 2000.
FRN -- Floating Rate Note. The maturity date is the actual maturity date;
the rate shown is the rate in effect as of October 31, 2000.
GNMA -- Government National Mortgage Association.
MTN -- Medium Term Note.
PDI -- Past Due Interest Bond.
SUB -- Step-up Bond. The maturity date shown is the earlier of the call
date or the maturity date; the rate shown is the rate in effect at
October 31, 2000.
See notes to financial statements.
30
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES October 31, 2000
--------------------------------------------------------------------------------
(Amounts in Thousands, Except Per Share Amounts)
<TABLE>
U.S. Treasury U.S. Government
Income Securities Bond
Fund Fund Fund
<S> <C> <C> <C>
---------------------------------------------------------------------------------------------
ASSETS:
Investment securities, at value (Note 1) ..... $68,498 $46,575 $46,384
Cash ......................................... 5 -- 28
Receivables:
Interest .................................... 910 437 601
Fund shares sold ............................ 277 1,243 7
Margin account for futures contracts ........ 3 -- 5
Expense reimbursement
from Distributor ............................ -- 5 --
---------------------------------------------------------------------------------------------
Total Assets .............................. 69,693 48,260 47,025
---------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Fund shares redeemed ........................ 12,770 44 2,162
Dividends ................................... 63 6 97
Accrued liabilities: (Note 2)
Investment advisory fees .................... 9 -- --
Administration fees ......................... 9 -- 2
Shareholder servicing fees .................. 8 7 6
Distribution fees ........................... 10 -- 6
Custodian fees .............................. 9 10 10
Other ....................................... 85 70 85
---------------------------------------------------------------------------------------------
Total Liabilities ......................... 12,963 137 2,368
---------------------------------------------------------------------------------------------
NET ASSETS:
Paid in capital .............................. 66,278 50,180 48,022
Accumulated undistributed/(distributions
in excess of) net investment income .......... (56) (12) 113
Accumulated net realized loss on
investment and futures transactions .......... (8,187) (2,898) (3,558)
Net unrealized appreciation
(depreciation) of investments and
futures contracts ............................ (1,305) 853 80
---------------------------------------------------------------------------------------------
Net Assets ................................ $56,730 $48,123 $44,657
---------------------------------------------------------------------------------------------
Shares of beneficial interest outstanding ($.001 par value; unlimited number
of shares authorized):
Class A Shares ............................... 3,834 254 2,795
Class B Shares ............................... 1,437 -- 370
Class I Shares ............................... -- 4,698 1,248
Net Asset Value:
Class A Shares (and redemption price) ........ $ 10.77 $ 9.74 $ 10.12
Class B Shares* .............................. $ 10.75 -- $ 10.16
Class I Shares (and redemption price) ........ -- $ 9.72 $ 10.11
Class A Maximum Public Offering Price Per
Share (net asset value per share / 95.5%) ..... $ 11.28 $ 10.20 $ 10.60
---------------------------------------------------------------------------------------------
Cost of investments ........................... $69,881 $45,722 $46,291
---------------------------------------------------------------------------------------------
</TABLE>
* Redemption price may be reduced by contingent deferred sales charge.
See notes to financial statements.
31
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES October 31, 2000
--------------------------------------------------------------------------------
(Amounts in Thousands, Except Per Share Amounts)
<TABLE>
Short-Term Strategic
Bond Income
Fund Fund
--------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Investment securities, at value (Note 1) ................. $54,096 $27,189
Receivables:
Investment securities sold .............................. -- 28
Interest ................................................ 664 510
Fund shares sold ........................................ 1,123 48
Expense reimbursement from Distributor .................. -- 62
-----------------------------------------------------------------------------------
Total Assets .......................................... 55,883 27,837
-----------------------------------------------------------------------------------
LIABILITIES:
Payables:
To Custodian ............................................ -- 4
Investment securities purchased ......................... -- 43
Fund shares redeemed .................................... 2,894 25
Open forward currency contracts ......................... -- 13
Dividends ............................................... 125 158
Accrued liabilities: (Note 2)
Shareholder servicing fees .............................. 5 4
Distribution fees ....................................... 6 12
Custodian fees .......................................... 10 20
Other ................................................... 91 53
-----------------------------------------------------------------------------------
Total Liabilities ..................................... 3,131 332
-----------------------------------------------------------------------------------
NET ASSETS:
Paid in capital .......................................... 54,783 29,301
Accumulated undistributed/(distributions in excess of)
net investment income .................................... (13) (144)
Accumulated net realized loss on investment and
futures transactions ..................................... (2,078) (21)
Net unrealized appreciation (depreciation) of
investments and foreign exchange transactions ............ 60 (1,631)
-----------------------------------------------------------------------------------
Net Assets ............................................ $52,752 $27,505
-----------------------------------------------------------------------------------
Shares of beneficial interest outstanding ($.001 par value; unlimited number
of shares authorized):
Class A Shares ........................................... 1,930 246
Class B Shares ........................................... -- 820
Class C Shares ........................................... -- 261
Class M Shares ........................................... 1,261 1,715
Class I Shares ........................................... 2,139 --
Net Asset Value:
Class A Shares (and redemption price) .................... $ 9.89 $ 9.05
Class B Shares* .......................................... -- $ 9.05
Class C Shares* .......................................... -- $ 9.05
Class M Shares (and redemption price) .................... $ 9.89 $ 9.03
Class I Shares (and redemption price) .................... $ 9.90 --
Class A Maximum Public Offering Price Per Share
(net asset value per share / 98.5% and 95.5%) ............. $ 10.04 $ 9.48
-----------------------------------------------------------------------------------
Class M Maximum Public Offering Price Per Share
(net asset value per share / 98.5% and 97.0%) ............. $ 10.04 $ 9.31
-----------------------------------------------------------------------------------
Cost of investments ....................................... $54,036 $28,807
-----------------------------------------------------------------------------------
</TABLE>
* Redemption price may be reduced by contingent deferred sales charge.
See notes to financial statements.
32
<PAGE>
-------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the year ended October 31, 2000
-------------------------------------------------------------------------------
(Amounts in Thousands)
<TABLE>
<CAPTION>
U.S. Treasury U.S. Government
Income Securities Bond
Fund Fund Fund
<S> <C> <C> <C>
-------------------------------------------------------------------------------------
INTEREST INCOME:
(Note 1E) ........................... $5,376 $3,326 $ 3,787
-------------------------------------------------------------------------------------
EXPENSES: (Note 2)
Investment advisory fees ........... 224 145 163
Administration fees ................ 112 73 81
Shareholder servicing fees ......... 187 121 135
Distribution fees .................. 262 6 107
Custodian fees ..................... 42 71 114
Printing and postage ............... 24 19 24
Professional fees .................. 31 31 30
Registration expenses .............. 24 16 18
Transfer agent fees ................ 129 42 78
Trustees' fees ..................... 4 2 3
Other .............................. 3 9 3
-------------------------------------------------------------------------------------
Total expenses .................. 1,042 535 756
-------------------------------------------------------------------------------------
Less amounts waived
(Note 2E) .......................... 345 250 320
Less expenses
reimbursements (Note 2F) ........... -- 12 --
Less earnings credits
(Note 2F) .......................... 1 2 43
-------------------------------------------------------------------------------------
Net expenses ..................... 696 271 393
-------------------------------------------------------------------------------------
Net investment
income .......................... 4,680 3,055 3,394
-------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized loss on:
Investments ....................... (1,781) (873) (1,335)
Futures transactions .............. (78) -- (286)
Change in net unrealized
appreciation/depreciation of:
Investments ....................... 2,285 1,246 1,106
Futures contracts ................. 77 -- (4)
-------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments and
futures transactions ............... 503 373 (519)
-------------------------------------------------------------------------------------
Net increase in net assets
from operations .................... $5,183 $3,428 $ 2,875
-------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
33
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the year ended October 31, 2000
--------------------------------------------------------------------------------
(Amounts in Thousands)
<TABLE>
<CAPTION>
Short-Term Strategic
Bond Income
Fund Fund
<S> <C> <C>
--------------------------------------------------------------------------------
INTEREST INCOME:
(Note 1E) ........................................... $3,231 $ 2,239
--------------------------------------------------------------------------------
EXPENSES: (Note 2)
Investment advisory fees ........................... 125 125
Administration fees ................................ 75 37
Shareholder servicing fees ......................... 123 69
Distribution fees .................................. 69 142
Custodian fees ..................................... 79 136
Printing and postage ............................... 14 6
Professional fees .................................. 40 35
Registration expenses .............................. 10 34
Transfer agent fees ................................ 78 87
Trustees' fees ..................................... 3 1
Other .............................................. 4 --
--------------------------------------------------------------------------------
Total expenses .................................. 620 672
--------------------------------------------------------------------------------
Less amounts waived (Note 2E) ...................... 293 216
Less expenses reimbursements (Note 2F) ............. 9 92
Less earnings credits (Note 2F) .................... 5 7
--------------------------------------------------------------------------------
Net expenses ..................................... 313 357
--------------------------------------------------------------------------------
Net investment income ........................... 2,918 1,882
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments ....................................... (489) 104
Futures transactions .............................. (84) --
Foreign exchange transactions ..................... -- (46)
Change in net unrealized appreciation/ depreciation of:
Investments ....................................... 297 (1,479)
Foreign exchange transactions ..................... -- (15)
--------------------------------------------------------------------------------
Net realized and unrealized loss on investments,
futures and foreign exchange transactions .......... (276) (1,436)
--------------------------------------------------------------------------------
Net increase in net assets from operations ......... $2,642 $ 446
--------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
34
<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 Bond
Income Fund Securities Fund Fund
----------------------- --------------------- ------------------------
Year Ended Year Ended Year Ended
----------------------- --------------------- ------------------------
10/31/00 10/31/99 10/31/00 10/31/99 10/31/00 10/31/99
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income ................................ $ 4,680 $ 5,514 $ 3,055 $ 2,873 $ 3,394 $ 3,378
Net realized loss on investments
and futures transactions ............................. (1,859) (2,752) (873) (1,876) (1,621) (1,813)
Change in net unrealized appreciation/
depreciation of investments and futures
contracts ............................................ 2,362 (4,981) 1,246 (2,179) 1,102 (2,020)
-----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations ......................................... 5,183 (2,219) 3,428 (1,182) 2,875 (455)
-----------------------------------------------------------------------------------------------------------------------------
Net equalization debits ............................... -- -- -- -- (73) --
-----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1)
Net investment income ................................ (4,675) (5,515) (3,107) (2,874) (3,280) (3,383)
Net realized gain on investment transactions ......... -- -- -- (714) -- (933)
-----------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders ................ (4,675) (5,515) (3,107) (3,588) (3,280) (4,316)
-----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital share
transactions (Note 10) ................................ (28,706) 14,904 (4,060) (570) (17,116) 6,743
-----------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ............ (28,198) 7,170 (3,739) (5,340) (17,594) 1,972
NET ASSETS:
Beginning of period .................................. 84,928 77,758 51,862 57,202 62,251 60,279
-----------------------------------------------------------------------------------------------------------------------------
End of period ........................................ $56,730 $84,928 $48,123 $51,862 $44,657 $62,251
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
35
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated
(Amounts in Thousands)
<TABLE>
<CAPTION>
Short-Term
Bond Fund
---------------------
Year Year
Ended Ended
10/31/00 10/31/99
---------- ----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ................................................................. $ 2,918 $ 2,521
Net realized gain (loss) on investments, futures and foreign exchange transactions .... (573) (684)
Change in net unrealized appreciation/depreciation of investments and foreign exchange
transactions .......................................................................... 297 (352)
-------------------------------------------------------------------------------------------------------------
Increase in net assets from operations .............................................. 2,642 1,485
-------------------------------------------------------------------------------------------------------------
Net equalization credits ............................................................... 40 8
-------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1)
Net investment income ................................................................. (2,924) (2,538)
Tax return of capital ................................................................. -- --
-------------------------------------------------------------------------------------------------------------
Total distributions to shareholders ................................................. (2,924) (2,538)
-------------------------------------------------------------------------------------------------------------
Increase in net assets from capital share transactions (Note 10) ....................... 48 3,012
-------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ............................................. (194) 1,967
NET ASSETS:
Beginning of period ................................................................... 52,946 50,979
-------------------------------------------------------------------------------------------------------------
End of period ......................................................................... $52,752 $52,946
-------------------------------------------------------------------------------------------------------------
<CAPTION>
Strategic
Income Fund
---------------------
Year 11/30/98*
Ended Through
10/31/00 10/31/99
---------- ----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income ................................................................. $ 1,882 $ 512
Net realized gain (loss) on investments, futures and foreign exchange transactions .... 58 (108)
Change in net unrealized appreciation/depreciation of investments and foreign exchange
transactions .......................................................................... (1,494) (137)
--------------------------------------------------------------------------------------------------------------
Increase in net assets from operations .............................................. 446 267
--------------------------------------------------------------------------------------------------------------
Net equalization credits ............................................................... 23 77
--------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1)
Net investment income ................................................................. (2,002) (587)
Tax return of capital ................................................................. (25) --
--------------------------------------------------------------------------------------------------------------
Total distributions to shareholders ................................................. (2,027) (587)
--------------------------------------------------------------------------------------------------------------
Increase in net assets from capital share transactions (Note 10) ....................... 4,313 24,993
--------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ............................................. 2,755 24,750
NET ASSETS:
Beginning of period ................................................................... 24,750 --
--------------------------------------------------------------------------------------------------------------
End of period ......................................................................... $27,505 $24,750
</TABLE>
* Commencement of operations.
See notes to financial statements.
36
<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"), 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
seller defaults and the value of the collateral declines, or if the seller
enters
37
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
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 short futures contracts subject the Funds to unlimited risk of loss.
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, 2000, the Funds had outstanding futures contracts as listed
on the Funds' Portfolio of Investments.
D. Written options -- When a Fund writes an option on a futures contract, an
amount equal to the premium received by the Fund is included in the Fund's
Statement of Assets and Liabilities as an asset and corresponding liability.
The amount of the liability is adjusted daily to reflect the current market
value of the written option and the change is recorded in a corresponding
unrealized gain or loss account. When a written option expires on its
stipulated expiration date, or when a closing transaction is entered into,
the related liability is extinguished and the fund realizes a gain or loss
contingent on whether the cost of the closing transaction exceeds the premium
received when the option was written.
The Funds write options on securities futures. These options are settled for
cash and subject the Funds to market risk in excess of the amount that are
reflected in the Statement of Assets and Liabilities. The Funds, however, are
not subject to credit risk on written options as the counterparty has already
performed its obligation by paying premium at the inception of the contract.
As of October 31, 2000, there were no outstanding written options.
E. 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
38
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
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, 2000, SIF had outstanding forward foreign currency contracts
as detailed in Note 5.
F. Security transactions and investment income -- Investment transactions are
accounted for on the trade date (the date the order to buy or sell is
executed). Securities gains and losses are calculated on the identified cost
basis. Interest income is 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) or other delayed delivery 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.
G. 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.
39
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
H. 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.
I. 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.
J. 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.
K. Distributions to shareholders -- Dividends and distributions paid to
shareholders are recorded on the ex-dividend date. The amount of dividends
and distributions from net investment income and net realized capital gains
is determined in accordance with Federal income tax regulations, which may
differ from generally accepted accounting principles. To the extent these
"book/tax" differences are permanent in nature, (i.e., that they result from
other than timing of recognition --"temporary differences") such amounts are
reclassified within the capital accounts based on their Federal tax-basis
treatment.
The following amounts were reclassified within the capital accounts (in
thousands):
<TABLE>
<CAPTION>
Accumulated Accumulated
undistributed/ net realized
Paid-in (overdistributed) gain (loss)
capital net investment income on investments
<S> <C> <C> <C>
USTI ......... $ -- $ 3 $ (3)
USGS ......... (26) 53 (27)
BF ........... (73) 90 (17)
STBF ......... 41 (37) (4)
SIF .......... (81) 68 13
</TABLE>
The reclassifications for USTI relate primarily to the character for tax
purposes of paydowns. The reclassifications for USGS relate primarily to the
character for tax purposes of paydowns and current year distributions. The
reclassifications for BF and STBF relate primarily to the character for tax
purposes of equalization and paydowns. The reclassifications for
40
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
SIF relate primarily to the character for tax purposes of foreign currency
losses, equalization, paydowns and current year distributions.
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.
L. 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.
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 Adviser voluntarily waived fees as outlined
in Note 2.E. below.
Chase Fleming Asset Management (USA) Inc. ("CFAM (USA)"), a registered
investment adviser, is the sole sub-investment adviser to each Fund, except
SIF, pursuant to a Sub-Investment Advisory Agreement between CFAM (USA) and
Chase. CFAM (USA), formerly Chase Asset Management Inc., 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.
CFAM (USA) 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. CFAM (USA) 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, CFAM (USA) and SSR are entitled to receive fees, payable by
Chase from its advisory fee at an annual rate equal to 0.25% and 0.35%,
respectively, of the average daily net assets managed by each sub-adviser.
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.
Except for SIF Class M Shares, the fee is computed daily and paid
41
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
monthly at an annual rate equal to 0.25% of the average daily net assets of
the Funds. For SIF Class M Shares, the fee is computed daily and paid
monthly at an annual rate equal to 0.30% of the average daily net assets.
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 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 provide that STBF and SIF shall pay
distribution fees, including payments to the Distributor, at an annual rate
not to exceed 0.35% and 0.50%, respectively, of the average annual net assets
of the Class M shares for distribution services.
The Distributor voluntarily waived 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 fees as
outlined in Note 2.E. below.
E. Waivers of fees -- For the year ended October 31, 2000 the Funds' vendors
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 ............ $112 $145 $163 $125 $125
Administration ................. -- 73 54 75 37
Shareholder Servicing .......... 84 26 72 86 29
Distribution ................... 149 6 31 7 25
---- ---- ---- ---- ----
Total .......................... $345 $250 $320 $293 $216
==== ==== ==== ==== ====
</TABLE>
F. Other -- Certain officers of the Trust are officers of Vista Fund
Distributors, Inc. or of its parent corporation, BISYS.
42
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
Chase provides portfolio accounting and custody services for the Funds.
Compensation for such services is presented in the Statement of Operations as
custodian fees. Custodian fees are subject to reduction by credits earned by
each Fund, based on cash balances held by Chase as custodian. Such earnings
credits are presented separately in the Statement of Operations. The Funds
could have invested the cash balances utilized in connection with the
earnings credit arrangements in income producing assets if they had not
entered into such arrangements.
The Distributor voluntarily reimbursed expenses of the Funds in the amounts
shown on the Statement of Operations.
3. Investment Transactions
For the year ended October 31, 2000, 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) ......... $ -- $ -- $38,915 $35,980 $30,203
Sales (excluding
U.S. Government) ......... -- -- 44,765 16,859 19,665
Purchases of
U.S. Government .......... 21,243 38,581 52,514 26,861 7,993
Sales of
U.S. Government .......... 36,554 42,476 61,544 41,910 4,757
</TABLE>
4. Federal Income Tax Matters
For Federal income tax purposes, the cost and unrealized appreciation
(depreciation) in value of the investment securities at October 31, 2000 are as
follows (in thousands):
<TABLE>
<CAPTION>
USTI USGS BF STBF SIF
<S> <C> <C> <C> <C> <C>
Aggregate cost ................... $69,991 $45,730 $46,309 $54,036 $28,828
------- ------- ------- ------- -------
Gross unrealized
appreciation ..................... $ 472 $ 968 $ 683 $ 215 $ 196
Gross unrealized
depreciation ..................... (1,965) (123) (608) (155) (1,835)
------- ------- ------- ------- -------
Net unrealized
appreciation (depreciation)....... $(1,493) $ 845 $ 75 $ 60 $(1,639)
======= ======= ======= ======= =======
</TABLE>
43
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
At October 31, 2000, the following Funds have capital loss carryovers which will
be available to offset capital gains. 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.
<TABLE>
<S> <C> <C>
Expiration
Fund Amount Date
------------------- ---------- ----------
USTI ............ $3,186,376 10/31/2003
3,028,212 10/31/2007
1,783,950 10/31/2008
----------
7,998,538
USGS ............ 1,990,505 10/31/2007
900,201 10/31/2008
----------
2,890,706
BF .............. 1,525,140 10/31/2007
2,027,784 10/31/2008
----------
3,552,924
STBF ............ 99,816 10/31/2002
710,915 10/31/2001
1,467 10/31/2003
650,992 10/31/2007
614,752 10/31/2008
----------
2,077,942
</TABLE>
During the year ended October 31, 2000, SIF utilized capital loss carryforwards
of $79,490.
5. Open Forward Foreign Currency Contracts
SIF was party to the following open forward foreign currency contracts at
October 31, 2000:
<TABLE>
<S> <C> <C> <C> <C> <C>
Contract Contract Unrealized
Amount Amount Settlement Loss
Purchased Currency Sold Currency Date USD
--------------------------------------------------------------------------
Unrealized Loss
----------------
249 EUR 225 USD 02/21/01 $(13)
====
</TABLE>
EUR - European Currency Unit
USD - United States Dollar
6. Options
The following is a summary of written option activity for the year ended October
31, 2000 by USTI (in thousands, except contract amounts):
<TABLE>
<CAPTION>
Covered Call Options Contracts Premiums
--------------------------------------------------------------------------------
<S> <C> <C>
Balance at beginning of period ................ -- $ --
Options written ............................... 45 6
Options closed ................................ (45) (6)
Options expired ............................... -- --
Options exercised ............................. -- --
--- -----
Options outstanding at end of period .......... -- $ --
=== =====
</TABLE>
44
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
7. 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, 2000, 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 $ 9
USGS.......... 1 6
BF ........... 1 4
STBF.......... 1 5
SIF .......... -- 1
</TABLE>
8. Bank Borrowings
The Funds may borrow money for temporary or emergency purposes. Any borrowings
representing more than 5% of a Fund's total assets must be repaid before the
Fund may make additional investments. The Funds have entered into an agreement,
enabling them to participate with other Chase Vista Funds in an unsecured line
of credit with a syndicate of banks, which permits borrowings up to $350
million, collectively. Interest is charged to each Fund based on its borrowings
at an annual rate equal to the sum of the Federal Funds Rate plus 0.50%. The
Funds also pay a commitment fee of 0.10% 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, 2000, nor at anytime
during the year then ended.
9. Subsequent Events
On September 13, 2000, The Chase Manhattan Corporation and J.P. Morgan & Co.
Incorporated announced that they have entered into an agreement and plan of
merger. The transaction is expected to close in December 2000 and is subject to
approval by shareholders of both companies.
On October 25, 2000, the Board of Trustees of Mutual Fund Group approved a Plan
of Reorganization (the "Reorganization Plan") between the Funds listed below.
Under the Reorganization Plan, the acquired fund would transfer all of its
assets and liabilities to the acquiring fund in a tax-free reorganization. In
exchange, shareholders of the acquired fund would receive shares of the
acquiring fund with a value equal to their respective holdings in the acquired
fund. The costs and expenses associated with the Reorganization will be borne by
the Advisor and not by the Funds (or by the shareholders of either fund). The
Reorganization can be consummated
45
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
only if, among other things, it is approved by the vote of a majority (as
defined by the 1940 Act) of outstanding voting securities of the Funds. A
Special Meeting of Shareholders ("Meeting") of the acquired Funds will be held
on January 26, 2001 to vote on the Reorganization Plan. If the Reorganization
Plan is approved at the Meeting, the Reorganization is expected to become
effective on or about February 16, 2001.
<TABLE>
<CAPTION>
Acquiring Fund Acquired Fund
--------------------------------------------------------------------------------
<S> <C>
USTI USGS
USTI Chase U.S. Government Securities Fund
Chase Vista Select Bond Fund BF
STBF Chase Short-Intermediate Term U.S. Government
Securities Fund
STBF Chase Vista Select Short-Term Bond Fund
</TABLE>
46
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
10. Capital Share Transactions
Capital share transactions were as follows for the periods presented (amounts in
thousands):
U.S. TREASURY INCOME FUND
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
Class A Class B
-----------------------------------------------------------------------------------------------------
Year Ended October 31, 2000
Amount Shares Amount Shares
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
Shares sold $ 25,235 2,345 $ 3,446 325
Shares issued in reinvestment of distributions 2,756 260 535 51
Shares redeemed (55,647) (5,218) (5,031) (452)
-----------------------------------------------------------------------------------------------------
Net decrease in Fund shares outstanding $ (27,656) (2,613) $ (1,050) (76)
=====================================================================================================
Year Ended October 31, 1999
-----------------------------------------------------------------------------------------------------
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 Fund shares outstanding $ 11,977 1,041 $ 2,927 252
=====================================================================================================
<CAPTION>
U.S. GOVERNMENT SECURITIES FUND
-----------------------------------------------------------------------------------------------------
Class A Class I
Year Ended October 31, 2000
Amount Shares Amount Shares
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
Shares sold $ 7,463 776 $ 8,560 897
Shares issued in reinvestment of distributions 145 15 1,469 153
Shares redeemed (7,668) (799) (14,029) (1,462)
-----------------------------------------------------------------------------------------------------
Net decrease in Fund shares outstanding $ (60) (8) $ (4,000) (412)
=====================================================================================================
Year Ended October 31, 1999
-----------------------------------------------------------------------------------------------------
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 Fund shares outstanding $ (490) (53) $ (80) (25)
=====================================================================================================
</TABLE>
47
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
<TABLE>
<CAPTION>
BOND FUND
-------------------------------------------------------------------------------------------------------------------------
Class A Class B Class I
-------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000
Amount Shares Amount Shares Amount Shares
<S> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------
Shares sold $ 8,271 821 $ 1,134 113 $ 2,133 213
Shares issued in reinvestment of distributions 919 92 156 15 1,006 101
Shares redeemed (15,816) (1,572) (1,835) (182) (13,084) (1,307)
-------------------------------------------------------------------------------------------------------------------------
Net decrease in Fund shares outstanding $ (6,626) (659) $ (545) (54) $ (9,945) (993)
=========================================================================================================================
Year Ended October 31, 1999
-------------------------------------------------------------------------------------------------------------------------
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 Fund shares outstanding $ 4,266 383 $ (157) (17) $ 2,634 250
=========================================================================================================================
<CAPTION>
SHORT-TERM BOND FUND
-------------------------------------------------------------------------------------------------------------------------
Class A Class M Class I
-------------------------------------------------------------------------------------------------------------------------
Year Ended October 30, 2000
Amount Shares Amount Shares Amount Shares
<S> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------
Shares sold $ 29,307 2,974 $ 10,476 1,062 $ 7,722 782
Shares issued in reinvestment of distributions 699 71 13 1 1,119 113
Shares redeemed (33,074) (3,356) (1,075) (109) (15,139) (1,532)
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (3,068) (311) $ 9,414 954 $ (6,298) (637)
=========================================================================================================================
Year Ended October 31, 1999*
-------------------------------------------------------------------------------------------------------------------------
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 Fund shares outstanding $ 3,009 297 $ 3,052 307 $ (3,049) (305)
=========================================================================================================================
</TABLE>
* For Class M shares, from commencement of offering on July 1, 1999.
48
<PAGE>
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (Continued)
STRATEGIC INCOME FUND
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
Class A Class B Class C
-------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000*
Amount Shares Amount Shares Amount Shares
<S> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------
Shares sold $ 2,137 220 $ 4,011 424 $ 1,541 152
Shares issued in reinvestment of distributions 110 12 214 23 110 12
Shares redeemed (3,029) (312) (1,675) (181) (2,632) (266)
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (782) (80) $ 2,550 266 $ (981) (102)
=========================================================================================================================
Year Ended October 31, 1999**
-------------------------------------------------------------------------------------------------------------------------
Shares sold $ 3,198 327 $ 5,484 563 $ 3,569 364
Shares issued in reinvestment of distributions 103 11 104 10 78 8
Shares redeemed (112) (12) (188) (19) (90) (9)
-------------------------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 3,189 326 $ 5,400 554 $ 3,557 363
=========================================================================================================================
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
Class I Class M
-------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000*
Amount Shares Amount Shares
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------
Shares sold $ -- -- $ 6,704 712
Shares issued in reinvestment of distributions -- -- 4 --+
Shares redeemed (1,037) (108) 2,145 226
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (1,037) (108) $ 4,563 486
=========================================================================================================================
Year Ended October 31, 1999**
-------------------------------------------------------------------------------------------------------------------------
Shares sold $ 1,000 100 $11,772 1,229
Shares issued in reinvestment of distributions 75 8 -- --
Shares redeemed -- -- -- --
-------------------------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 1,075 108 $11,772 1,229
=========================================================================================================================
</TABLE>
* All outstanding Class I shares were redeemed effective November 5, 1999. The
Fund continues to offer Class I shares for sale.
** 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.
+ Amount rounds to less than one thousand.
49
<PAGE>
-------------------------------------------------------------------------------
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS
-------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. Treasury Income Fund (2)
------------------------------------------------------------
Class A
------------------------------------------------------------
Year Ended
------------------------------------------------------------
10/31/00 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 .......... $10.67 $11.66 $11.26 $11.13 $11.40
------- ------ ------- ------- -------
Income from investment operations:
Net investment income ........................ 0.68 0.71 0.75 0.66 0.66
Net gain or (losses) in securities
(both realized and unrealized) ............... 0.10 (0.99) 0.40 0.13 (0.27)
------- ------ ------- ------- -------
Total from investment operations ............ 0.78 (0.28) 1.15 0.79 0.39
------- ------ ------- ------- -------
Distributions to shareholders from:
Dividends from net investment income ......... 0.68 0.71 0.75 0.66 0.66
Distributions from capital gains ............. -- -- -- -- --
------- ------ ------- ------- -------
Total dividends and distributions ........... 0.68 0.71 0.75 0.66 0.66
------- ------ ------- ------- -------
Net asset value, end of period ................ $10.77 $10.67 $11.66 $11.26 $11.13
======= ====== ======= ======= =======
Total return (1) 7.63% (2.41%) 10.59% 7.35% 3.56%
Ratios/supplemental data:
Net assets, end of period (in millions) ...... $ 41 $ 69 $ 63 $ 85 $ 111
Ratios to average net assets:
Expenses ..................................... 0.75% 0.75% 0.79% 0.90% 0.90%
Net investment income ........................ 6.45% 6.40% 6.53% 5.97% 5.89%
Expenses without waivers, reimbursements
and earnings credits ......................... 1.30% 1.32% 1.30% 1.21% 1.29%
Net investment income without waivers,
reimbursements and earnings credits .......... 5.90% 5.83% 6.02% 5.66% 5.50%
Portfolio turnover rate ....................... 29% 59% 75% 179% 103%
</TABLE>
(1) Total return figures do not include the effect of any front-end or
deferred sales load.
(2) Formerly known as the Vista U.S. Government Income Fund.
See notes to financial statements.
50
<PAGE>
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (Continued)
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
U.S. Treasury Income Fund (2)
---------------------------------------------------------------------------
Class B
---------------------------------------------------------------------------
Year Ended
---------------------------------------------------------------------------
10/31/00 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 .......... $10.67 $11.66 $11.25 $11.11 $11.37
-------- ------ ------- ------- -------
Income from investment operations:
Net investment income ........................ 0.59 0.61 0.65 0.58 0.57
Net gain or (losses) in securities
(both realized and unrealized) ............... 0.08 (0.99) 0.41 0.13 (0.26)
-------- ------ ------- ------- -------
Total from investment operations ............ 0.67 (0.38) 1.06 0.71 0.31
-------- ------ ------- ------- -------
Distributions to shareholders from:
Dividends from net investment income ......... 0.59 0.61 0.65 0.57 0.57
Distributions from capital gains ............. -- -- -- -- --
-------- ------ ------- ------- -------
Total dividends and distributions ........... 0.59 0.61 0.65 0.57 0.57
-------- ------ ------- ------- -------
Net asset value, end of period ................ $10.75 $10.67 $11.66 $11.25 $11.11
======== ====== ======= ======= =======
Total return (1) 6.49% (3.27%) 9.68% 6.56% 2.82%
Ratios/supplemental data:
Net assets, end of period (in millions) ...... $ 16 $ 16 $ 14 $ 11 $ 11
Ratios to average net assets:
Expenses ..................................... 1.64% 1.64% 1.64% 1.64% 1.64%
Net investment income ........................ 5.56% 5.51% 5.69% 5.24% 5.12%
Expenses without waivers, reimbursements
and earnings credits ......................... 1.80% 1.82% 1.79% 1.71% 1.79%
Net investment income without waivers,
reimbursements and earnings credits .......... 5.40% 5.33% 5.54% 5.17% 4.97%
Portfolio turnover rate ....................... 29% 59% 75% 179% 103%
</TABLE>
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
(2) Formerly known as the Vista U.S. Government Income Fund.
See notes to financial statements.
51
<PAGE>
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (Continued)
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
U.S. Government Securities Fund
------------------------------------------------------------------------
Class A
------------------------------------------------------------------------
Year Ended 05/06/96*
--------------------------------------------------------- Through
10/31/00 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 .......... $9.67 $10.51 $10.06 $ 9.90 $9.62
------- ------ ------- ------- ------
Income from investment operations:
Net investment income ........................ 0.59 0.50 0.50 0.58 0.26
Net gains or losses in securities
(both realized and unrealized) ............... 0.07 (0.71) 0.45 0.15 0.25
------- ------ ------- ------- ------
Total from investment operations ............ 0.66 (0.21) 0.95 0.73 0.51
------- ------ ------- ------- ------
Distributions to shareholders from:
Dividends from net investment income ......... 0.59 0.50 0.50 0.57 0.23
Distributions from capital gains ............. -- 0.13 -- -- --
------- ------ ------- ------- ------
Total dividends and distributions ........... 0.59 0.63 0.50 0.57 0.23
------- ------ ------- ------- ------
Net asset value, end of period ................ $9.74 $ 9.67 $10.51 $10.06 $9.90
======= ====== ======= ======= ======
Total return (1) .............................. 7.09% (2.11%) 9.75% 7.61% 5.41%
Ratios/supplemental data:
Net Assets, end of period (in millions) ...... $2 $3 $3 $2 $3
Ratios to average net assets#:
Expenses ..................................... 0.75% 0.75% 0.80% 1.05% 1.05%
Net investment income ........................ 6.13% 4.91% 4.95% 5.61% 5.30%
Expenses without waivers, reimbursements
and earnings credits ......................... 2.18% 1.70% 1.70% 1.57% 1.55%
Net investment income without waivers,
reimbursements and earnings credits .......... 4.70% 3.96% 4.05% 5.09% 5.00%
Portfolio turnover rate ....................... 84% 258% 590% 569% 101%
</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 or deferred
sales load.
See notes to financial statements.
52
<PAGE>
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (Continued)
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
U.S. Government Securities Fund
-----------------------------------------------------------------------------------
Class I
-----------------------------------------------------------------------------------
Year Ended Year
--------------------------------------------------- 12/01/95(1) Ended
Through --------
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96 11/30/95
---------- -------- -------- -------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ......... $9.65 $10.49 $10.04 $ 9.89 $ 10.18 $ 9.23
------- ------ ------- ------- --------- -------
Income from investment operations:
Net investment income ....................... 0.61 0.52 0.53 0.59 0.50 0.56
Net gains or losses in securities
(both realized and unrealized) .............. 0.07 (0.71) 0.44 0.15 (0.30) 0.95
------- ------ ------- ------- --------- -------
Total from investment operations ........... 0.68 (0.19) 0.97 0.74 0.20 1.51
------- ------ ------- ------- --------- -------
Distributions to shareholders from:
Dividends from net investment income ........ 0.61 0.52 0.52 0.59 0.49 0.56
Distributions from capital gains ............ -- 0.1 -- -- -- --
------- ------ ------- ------- --------- -------
Total dividends and distributions .......... 0.61 0.65 0.52 0.59 0.49 0.56
------- ------ ------- ------- --------- -------
Net asset value, end of period ............... $9.72 $ 9.65 $10.49 $10.04 $ 9.89 $10.18
======= ====== ======= ======= ========= =======
Total return ................................. 7.30% (1.93%) 9.94% 7.78% 2.09% 16.82%
Ratios/supplemental data:
Net Assets, end of period (in millions) ..... $46 $49 $53 $53 $68 $83
Ratios to average net assets#:
Expenses .................................... 0.55% 0.55% 0.60% 0.85% 0.85% 0.85%
Net investment income ....................... 6.33% 5.15% 5.17% 5.78% 5.55% 5.78%
Expenses without waivers, reimbursements
and earnings credits ........................ 1.05% 1.00% 0.85% 0.91% 1.04% 1.11%
Net investment income without waivers,
reimbursements and earnings credits ......... 5.83% 4.70% 4.92% 5.72% 5.36% 5.52%
Portfolio turnover rate ...................... 84% 258% 590% 569% 101% 220%
</TABLE>
# Short periods have been annualized.
(1) In 1996, the Fund changed its fiscal year end from November 30, to October
31.
See notes to financial statements.
53
<PAGE>
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (Continued)
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
Bond Fund
-------------------------------------------------------------------------
Class A
-------------------------------------------------------------------------
Year Ended
--------------------------------------------------------- 05/06/96*
Through
10/31/00 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 ............. $10.18 $10.96 $10.82 $10.71 $10.39
-------- ------ ------- ------- -------
Income from investment operations:
Net investment income ........................... 0.62 0.55 0.59 0.63 0.29
Net gains or losses in securities
(both realized and unrealized) .................. (0.06) (0.62) 0.27 0.33 0.31
-------- ------ ------- ------- -------
Total from investment operations ............... 0.56 (0.07) 0.86 0.96 0.60
-------- ------ ------- ------- -------
Distributions to shareholders from:
Dividends from net investment income ............ 0.62 0.55 0.58 0.64 0.28
Distributions from capital gains ................ -- 0.16 0.14 0.21 --
-------- ------ ------- ------- -------
Total dividends and distributions .............. 0.62 0.71 0.72 0.85 0.28
-------- ------ ------- ------- -------
Net asset value, end of period ................... $10.12 $10.18 $10.96 $10.82 $10.71
======== ====== ======= ======= =======
Total return (1) ................................. 5.73% (0.66%) 8.22% 9.45% 5.95%
Ratios/supplemental data:
Net assets, end of period (in millions) ......... $28 $35 $33 $26 $1
Ratios to average net assets#:
Expenses ........................................ 0.75% 0.75% 0.77% 0.92% 0.90%
Net investment income ........................... 6.25% 5.25% 5.44% 6.11% 5.75%
Expenses without waivers, reimbursements and
earnings credits ................................ 1.48% 1.42% 1.52% 1.61% 2.39%
Net investment income waivers, reimbursements
and earnings credits ............................ 5.52% 4.58% 4.69% 5.42% 4.26%
Portfolio turnover rate .......................... 175% 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 or deferred
sales load.
See notes to financial statements.
54
<PAGE>
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (Continued)
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
Bond Fund
-------------------------------------------------------------------------
Class B
-------------------------------------------------------------------------
Year Ended
--------------------------------------------------------- 05/06/96*
Through
10/31/00 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 ............. $10.21 $11.00 $10.87 $10.76 $10.39
-------- ------ ------- ------- -------
Income from investment operations:
Net investment income ........................... 0.55 0.48 0.50 0.58 0.23
Net gains or losses in securities
(both realized and unrealized) .................. (0.05) (0.63) 0.27 0.32 0.37
-------- ------ ------- ------- -------
Total from investment operations ............... 0.50 (0.15) 0.77 0.90 0.60
-------- ------ ------- ------- -------
Distributions to shareholders from:
Dividends from net investment income ............ 0.55 0.48 0.50 0.58 0.23
Distributions from capital gains ................ -- 0.16 0.14 0.21 --
-------- ------ ------- ------- -------
Total dividends and distributions .............. 0.55 0.64 0.64 0.79 0.23
-------- ------ ------- ------- -------
Net asset value, end of period ................... $10.16 $10.21 $11.00 $10.87 $10.76
======== ====== ======= ======= =======
Total return (1) ................................. 5.04% (1.46%) 7.33% 8.32% 6.12%
Ratios/supplemental data:
Net assets, end of period (in millions) ......... $4 $4 $4 $1 $1
Ratios to average net assets#:
Expenses ........................................ 1.50% 1.50% 1.55% 1.64% 1.65%
Net investment income ........................... 5.50% 4.50% 4.63% 5.26% 4.97%
Expenses without waivers, reimbursements and
earnings credits ................................ 1.98% 1.92% 2.00% 2.07% 2.93%
Net investment income waivers, reimbursements
and earnings credits ............................ 5.02% 4.08% 4.18% 4.83% 3.69%
Portfolio turnover rate .......................... 175% 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 or deferred
sales load.
See notes to financial statements.
55
<PAGE>
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (Continued)
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
Bond Fund
---------------------------------------------------------------------------
Class I
---------------------------------------------------------------------------
Year Ended
---------------------------------------------------------------------------
10/31/00 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 ............. $10.16 $10.94 $10.82 $10.71 $10.91
-------- ------ ------- ------- -------
Income from investment operations:
Net investment income ........................... 0.64 0.58 0.62 0.68 0.67
Net gains or losses in securities
(both realized and unrealized) .................. (0.05) (0.62) 0.26 0.32 (0.15)
-------- ------ ------- ------- -------
Total from investment operations .............. 0.59 (0.04) 0.88 1.00 0.52
-------- ------ ------- ------- -------
Less distributions:
Dividends from net investment income ............ 0.64 0.58 0.62 0.68 0.66
Distributions from capital gains ................ -- 0.16 0.14 0.21 0.06
-------- ------ ------- ------- -------
Total dividends and distributions ............. 0.64 0.74 0.76 0.89 0.72
-------- ------ ------- ------- -------
Net asset value, end of period ................... $10.11 $10.16 $10.94 $10.82 $10.71
======== ====== ======= ======= =======
Total return ..................................... 6.07% (0.42%) 8.42% 9.93% 4.90%
Ratios/supplemental data:
Net assets, end of period (in millions) ......... $13 $23 $21 $18 $18
Ratios to average net assets:
Expenses ........................................ 0.53% 0.50% 0.50% 0.50% 0.36%
Net investment income ........................... 6.46% 5.50% 5.72% 6.42% 6.23%
Expenses without waivers, reimbursements
and earnings credits .................. ......... 1.14% 1.14% 1.20% 1.17% 0.87%
Net investment income without waivers,
reimbursements and earnings credits ............. 5.85% 4.86% 5.02% 5.75% 5.72%
Portfolio turnover rate .......................... 175% 283% 329% 823% 122%
</TABLE>
See notes to financial statements.
56
<PAGE>
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (Continued)
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
Short-Term Bond Fund
---------------------------------------
Class A
--------------------------------------
Year Ended
--------------------------------------
10/31/00 10/31/99 10/31/98
----------- -------- --------
<S> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ......... $9.94 $10.14 $10.10
------- ------- -------
Income from investment operations:
Net investment income ....................... 0.56 0.46 0.53
Net gains or losses in securities
(both realized and unrealized) .............. (0.05) (0.20) 0.02
------- ------- -------
Total from investment operations ........... 0.51 0.26 0.55
------- ------- -------
Less distributions:
Dividends from net investment income ........ 0.56 0.46 0.51
Distributions from capital gains ............ -- -- --
------- ------- -------
Total dividends and distributions .......... 0.56 0.46 0.51
------- ------- -------
Net asset value, end of period ............... $9.89 $ 9.94 $10.14
======= ======= =======
Total return (1) ............................. 5.27% 2.64% 5.58%
Ratios/supplemental data:
Net assets, end of period (in millions) ..... $ 19 $ 22 $ 19
Ratios to average net assets#:
Expenses .................................... 0.75% 0.75% 0.76%
Net investment income ....................... 5.68% 4.58% 5.28%
Expenses without waivers, reimbursements
and earnings credits ........................ 1.37% 1.37% 1.44%
Net investment income without waivers,
reimbursements and earnings credits ......... 5.06% 3.96% 4.60%
Portfolio turnover rate ...................... 139% 302% 439%
Short-Term Bond Fund
--------------------------------------------------
Class A Class M
--------------------------------------------------
Year Ended 05/06/96* Year 07/01/99*
-------- Through Ended Through
10/31/97 10/31/96 10/31/00 10/31/99
-------- --------- ----------- ---------
<S> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ......... $10.10 $10.03 $9.94 $ 9.98
------- ------- ------- -------
Income from investment operations:
Net investment income ....................... 0.58 0.26 0.54 0.16
Net gains or losses in securities
(both realized and unrealized) .............. -- 0.07 (0.05) (0.04)
------- ------- ------- -------
Total from investment operations ........... 0.58 0.33 0.49 0.12
------- ------- ------- -------
Less distributions:
Dividends from net investment income ........ 0.58 0.26 0.54 0.16
Distributions from capital gains ............ -- -- -- --
------- ------- ------- -------
Total dividends and distributions .......... 0.58 0.26 0.54 0.16
------- ------- ------- -------
Net asset value, end of period ............... $10.10 $10.10 $9.89 $ 9.94
======= ======= ======= =======
Total return (1) ............................. 5.91% 3.41% 5.04% 1.26%
Ratios/supplemental data:
Net assets, end of period (in millions) ..... $10 $10 $13 $3
Ratios to average net assets#:
Expenses .................................... 0.75% 0.75% 0.99% 0.97%
Net investment income ....................... 5.76% 5.28% 5.51% 4.72%
Expenses without waivers, reimbursements
and earnings credits ........................ 1.31% 1.45% 1.73% 1.41%
Net investment income without waivers,
reimbursements and earnings credits ......... 5.20% 4.58% 4.77% 4.28%
Portfolio turnover rate ...................... 471% 158% 139% 302%
</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 or deferred
sales load.
See notes to financial statements.
57
<PAGE>
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (Continued)
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
Short-Term Bond Fund
-----------------------------------------------------------------------
Class I
-----------------------------------------------------------------------
Year Ended
-----------------------------------------------------------------------
10/31/00 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 ............. $ 9.95 $10.15 $10.11 $10.12 $10.08
-------- ------- ------- ------- -------
Income from investment operations:
Net investment income ........................... 0.59 0.49 0.57 0.62 0.56
Net gains or losses in securities
(both realized and unrealized) .................. (0.05) (0.20) 0.02 (0.01) 0.04
-------- ------- ------- ------- -------
Total from investment operations ............... 0.54 0.29 0.59 0.61 0.60
-------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income ............ 0.59 0.49 0.55 0.62 0.56
Distributions from capital gains ................ -- -- -- -- --
-------- ------- ------- ------- -------
Total dividends and distributions .............. 0.59 0.49 0.55 0.62 0.56
-------- ------- ------- ------- -------
Net asset value, end of period ................... $ 9.90 $ 9.95 $10.15 $10.11 $10.12
======== ======= ======= ======= =======
Total return ..................................... 5.56% 2.97% 6.03% 6.23% 6.10%
Ratios/supplemental data:
Net assets, end of period (in millions) ......... $21 $28 $31 $38 $43
Ratios to average net assets:
Expenses ........................................ 0.45% 0.42% 0.42% 0.42% 0.35%
Net investment income ........................... 5.99% 4.89% 5.68% 6.08% 5.59%
Expenses without waivers, reimbursements
and earnings credits ............................ 1.02% 1.02% 1.04% 0.93% 0.89%
Net investment income without waivers,
reimbursements and earnings credits ............. 5.42% 4.29% 5.06% 5.57% 5.05%
Portfolio turnover rate .......................... 139% 302% 439% 471% 158%
</TABLE>
See notes to financial statements.
58
<PAGE>
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (Continued)
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
Strategic Income Fund
---------------------------------------------------------------------------------
Class A Class B Class C
-------------------------- -------------------------- ---------------------------
Year 11/30/98* Year 11/30/98* Year 11/30/98*
Ended Through Ended Through Ended Through
10/31/00 10/31/99 10/31/00 10/31/99 10/31/00 10/31/99
---------- -------- ---------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of period ......... $9.59 $10.00 $ 9.59 $ 10.00 $ 9.59 $10.00
------- ------- -------- -------- -------- -------
Income from investment operations:
Net investment income ....................... 0.78 0.72 0.74 0.71 0.74 0.71
Net gains or losses in securities
(both realized and unrealized) .............. (0.53) (0.41) (0.53) (0.41) (0.53) (0.41)
------- ------- -------- -------- -------- -------
Total from investment operations ........... 0.25 0.31 0.21 0.30 0.21 0.30
------- ------- -------- -------- -------- -------
Distributions to shareholders from:
Dividends from net investment income ........ 0.78 0.72 0.74 0.71 0.74 0.71
Distributions from capital gains ............ -- -- -- -- -- --
Tax return of capital ....................... 0.01 -- 0.01 -- 0.01 --
------- ------- -------- -------- -------- -------
Total dividends and distributions .......... 0.79 0.72 0.75 0.71 0.75 0.71
------- ------- -------- -------- -------- -------
Net asset value, end of period ............... $9.05 $ 9.59 $ 9.05 $ 9.59 $ 9.05 $ 9.59
======= ======= ======== ======== ======== =======
Total return (1) ............................. 2.59% 3.23% 2.17% 3.13% 2.15% 3.12%
Net assets, end of period (in millions) ..... $2 $3 $8 $5 $2 $4
Ratios to average net assets#:
Expenses .................................... 1.11% 0.15% 1.53% 0.17% 1.49% 0.17%
Net investment income ....................... 7.84% 8.38% 7.42% 8.40% 7.46% 8.40%
Expenses without waivers, reimbursements
and earnings credits ........................ 2.43% 3.59% 3.06% 3.98% 2.89% 3.98%
Net investment income without waivers,
reimbursements and earnings credits ......... 6.52% 4.94% 5.89% 4.59% 6.06% 4.59%
Portfolio turnover rate ...................... 113% 136% 113% 136% 113% 136%
</TABLE>
* Commencement of operations.
# Short periods have been annualized.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
See notes to financial statements.
59
<PAGE>
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (Continued)
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
Strategic Income Fund
--------------------------------------------------
Class M Class I
------------------------- -----------------------
Year 10/28/99** 11/01/99 11/30/98*
Ended Through Through Through
10/31/00 10/31/99 11/05/99- 10/31/99
----------- ----------- ---------- ----------
<S> <C>
Per share operating performance:
Net asset value, beginning of period ............................................ $ 9.59 $ 9.64 $9.59 $10.00
------- ------- ------- -------
Income from investment operations:
Net investment income .......................................................... 0.75 0.07 0.01 0.72
Net gains or losses in securities (both realized and unrealized) ............... (0.55) (0.05) 0.04 (0.41)
------- ------- ------- -------
Total from investment operations .............................................. 0.20 0.02 0.05 0.31
------- ------- ------- -------
Distributions to shareholders from:
Dividends from net investment income ........................................... 0.75 0.07 -- 0.72
Distributions from capital gains ............................................... -- -- -- --
Tax return of capital .......................................................... 0.01 -- -- --
------- ------- ------- -------
Total dividends and distributions ............................................. 0.76 0.07 -- 0.72
------- ------- ------- -------
Net asset value, end of period .................................................. $ 9.03 $ 9.59 $9.64 $ 9.59
======= ======= ======= =======
Total return (1) ................................................................ 2.10% 0.16% 0.52% 3.29%
Net assets, end of period (in millions) ........................................ $ 16 $12 $-- $1
Ratios to average net assets#:
Expenses ....................................................................... 1.43% 0.17% 0.40% 0.24%
Net investment income .......................................................... 7.52% 4.56% 4.77% 8.07%
Expenses without waivers, reimbursements and earnings credits .................. 2.54% 3.73% 1.54% 3.87%
Net investment income without waivers, reimbursements and earnings credits ..... 6.41% 1.00% 3.63% 4.44%
Portfolio turnover rate ......................................................... 113% 136% 113% 136%
</TABLE>
* Commencement of operations.
** Commencement of offering of class of shares.
# Short periods have been annualized.
- All outstanding shares were redeemed effective November 5, 1999. The Fund
continues to offer Class I shares for sale.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
See notes to financial statements.
60
<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, 2000, the results of each of their operations for the year then
ended, the changes in each of their net assets for each of the two years in the
period then ended (for the year ended October 31, 2000 and for the period
November 30, 1998 through October 31, 1999 for Chase Vista Strategic Income
Fund) and the financial highlights for each of the periods presented (for each
of the four years in the period ended October 31, 2000 and for the period
December 1, 1995 through October 31, 1996 for Chase Vista U.S. Government
Securities Fund), in conformity with accounting principles generally accepted in
the United States of America. 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 auditing standards
generally accepted in the United States of America, 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, 2000 by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion. The financial highlights of Chase Vista U.S. Government
Securities Fund for the year 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 11, 2000
61
<PAGE>
--------------------------------------------------------------------------------
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, 2000. 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, 2000. The information
necessary to complete your income tax returns for the calendar year ending
December 31, 2000 will be received under separate cover.
FOR THE FISCAL YEAR ENDED OCTOBER 31, 2000:
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
Home Loan National Long-Term
Mortgage Mortgage Capital Gains
U.S. Treasury Corporation Association Distribution
Chase Vista Fund Obligations Obligations Obligations Per Share
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
USTI 77.75% 21.45% -- $ --
USGS 33.07% 46.15% 16.26% --
BF 20.50% 34.43% 0.60% --
STBF 10.37% 1.08% -- --
SIF 8.96% 0.76% 7.52% --
</TABLE>
62
<PAGE>
CHASE VISTA FIXED INCOME FUNDS ANNUAL REPORT
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT ADVISER, This report is submitted for the general
ADMINISTRATOR, information of the shareholders of the
SHAREHOLDER AND FUND SERVICING funds. It is not authorized for
AGENT AND CUSTODIAN distribution to prospective investors
The Chase Manhattan Bank in the funds unless preceded or
accompanied by a prospectus.
DISTRIBUTOR
Vista Fund Distributors, Inc. To obtain a prospectus for any of the
Chase Vista Select Funds, call 1-800-348-4782.
TRANSFER AGENT The prospectus contains more complete
DST Systems, Inc. information, including charges and
expenses. Please read it carefully before
LEGAL COUNSEL you invest or send money.
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.
</TABLE>
(C) The Chase Manhattan Corporation, 2000. All Rights Reserved. December 2000
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CHASE VISTA FUNDS [SM]
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