- --------------------------------------------------------------------------------
VISION
U.S. Government
Securities Fund
Seeks current income by investing primarily in
securities that are guaranteed for payment of
principal and interest by the U.S. government,
its agencies or instrumentalities (Fund shares
themselves are not guaranteed).
- --------------------------------------------------------------------------------
VISION
New York Municipal
Income Fund
Seeks current income that is exempt
from federal, New York State and
New York City income taxes,* as is
consistent with preservation of capital.
- --------------------------------------------------------------------------------
VISION
Equity Income Fund
Seeks to provide current income by investing in a diversified portfolio
consisting primarily of income- producing equity securities of domestic
companies (common and preferred stock and convertible securities). Capital
appreciation is a secondary investment consideration.
- --------------------------------------------------------------------------------
VISION
Growth and Income Fund
Seeks to provide long-term growth of capital and
income by investing in a diversified portfolio
consisting primarily of equity securities
(common stock and convertible securities)
and debt securities (bonds and notes).
- --------------------------------------------------------------------------------
VISION
Capital Appreciation Fund
Seeks to produce long-term capital appreciation,
primarily through a diversified portfolio
of mid-capitalization stocks selected for
their ability to appreciate in value.
- --------------------------------------------------------------------------------
VISION
Money Market Fund
Seeks current income with liquidity and
stability of principal by investing in high-
quality money market instruments.**
- --------------------------------------------------------------------------------
VISION
Treasury Money
Market Fund
Seeks current income with liquidity and
stability of principal by investing in short-term
U.S. Treasury obligations, which are fully guaranteed
for payment of principal and interest
by the U.S. government.**
- --------------------------------------------------------------------------------
VISION
New York Tax-Free
Money Market Fund
Seeks a high level of current interest income that
is exempt from federal, New York State and
New York City income taxes,* as well as
liquidity and stability of principal.**
- --------------------------------------------------------------------------------
* Some income may be subject to the federal alternative minimum tax.
** An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency.
Although money market funds seek to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in the fund.
For more complete information about any of the Vision Funds, contact
(800) 836-2211 for a prospectus. Please read the prospectus
carefully before investing.
PRESIDENT'S MESSAGE
- -------------------------------------------------------------------------------
Dear Investor:
I am pleased to present the Semi-Annual Report of the VISION equity and income
funds for the first half of the funds' current fiscal year, which is the six-
month period from May 1, 1998 through October 31, 1998. This report begins
with a discussion by each fund's management about the economy, the market, and
fund strategies over the period. Next, you'll find a complete list of portfo-
lio holdings and financial statements for each fund.
The following highlights summarize the performance of each VISION equity and
income fund over the six-month reporting period.
VISION U.S. GOVERNMENT SECURITIES FUND
The fund's portfolio of U.S. government securities paid dividends totaling
$0.30 per share. Despite the bond market volatility, the fund's net asset
value increased from $9.61 at the beginning of the period to $9.81 at the pe-
riod's end. The income dividends and change in net asset value resulted in a
total return of 5.23%, or 0.53% adjusted for the fund's sales charge.* At the
end of the period, the fund's assets reached $61.8 million.
VISION NEW YORK MUNICIPAL INCOME FUND
The fund's portfolio of high-quality, New York municipal bonds paid tax-free
dividends totaling $0.23 per share.** In an improved municipal bond environ-
ment, the fund's net asset value rose from $10.42 at the beginning of the pe-
riod to $10.68 at the period's end. Through dividends and net asset value in-
crease, the fund achieved a total return of 4.76%, or 0.06% adjusted for the
fund's sales charge.* By the end of the period, tax-sensitive New York resi-
dents had invested a total of $48.2 million in the fund.
VISION EQUITY INCOME FUND
The newest addition to the VISION Group of Funds offers a relatively conserva-
tive way to navigate toward income and capital appreciation from undervalued
stocks. In a volatile stock market environment that saw a broad decline in
stock prices amid concern over the impact of Asian economic difficulties on
the U.S., the fund's net asset value declined from $11.47 to $10.76. This de-
cline was slightly cushioned by the fund's focus on income-producing stocks,
which resulted in dividends totaling $0.08 per share. The fund's total return
was a negative (5.45%), or (10.67%) adjusted for the fund's sales charge for
the six-month period. Fund assets reached $39.9 million at the end of the pe-
riod.
*Performance quoted reflects past performance and is not indicative of future
results. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
**Income may be subject to the federal alternative minimum tax.
VISION GROWTH AND INCOME FUND
After four consecutive full fiscal years of highly positive returns, the fund
experienced a negative total return over the first half of its current fiscal
year. The primary influence on fund performance was the broad decline in stock
prices as the market reacted to fears that Asian economic difficulties would
spread to the U.S. As a result, the fund's net asset value declined from
$16.13 to $12.37, causing a negative total return of (23.04%), or (27.28%) ad-
justed for the fund's sales charge.* The fund paid dividends totaling $0.05
per share. Fund assets totaled $100.7 million at the end of the period.
VISION CAPITAL APPRECIATION FUND
In a stock market that experienced broad declines due to fears that Asia's
economic difficulties would spread to the U.S., the fund's more aggressive
portfolio of stocks issued by mid-size companies produced a negative six-month
total return of (25.19%), or (29.30%) adjusted for the fund's sales charge.*
Impacting the total return was a decline in net asset value from $14.77 to
$11.05. Fund assets totaled $49.5 million at the end of the period.
Thank you for pursuing the opportunities of one or more key financial markets
through the professional management and diversification of the VISION equity
and income funds. While the past six months was a particularly difficult pe-
riod for stock investors, I urge you to keep focused on the long-term, which
is the true measure of stock performance. We look forward to keeping you up-
to-date on your progress.
Sincerely,
Edward C. Gonzales
President
December 15, 1998
*Performance quoted reflects past performance and is not indicative of future
results. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
INVESTMENT REVIEW
- -------------------------------------------------------------------------------
VISION U.S. GOVERNMENT SECURITIES FUND
Over the last six months, the bond market has been volatile, yet rewarding.
Since our last report, yields on the 10 year Treasury note have fallen from
5.68% on April 30, 1998 to 4.60% on October 31, 1998.
Through much of 1998, economic growth has been moderate. While forecasts of
1999 Gross Domestic Product have been reduced, inflation concerns have contin-
ued to diminish. The Federal Reserve responded to these conditions when it
lowered the federal funds rate on September 29, 1998 from 5.50% to 5.25%. How-
ever, a Russian default, failure at hedge fund Long Term Capital Management
and associated "deleveraging" across the economy prompted additional rate cuts
on October 15 and November 17, 1998. These rate reductions were enacted to ad-
dress the "credit crunch" or lack of liquidity in the financial system.
Over the coming months we expect the Federal Reserve to remain ready to ease
the federal funds rate again, but expect the bond market to trade on tradi-
tional economic fundamentals such as employment and inflation rather than li-
quidity concerns.
Throughout this period of volatility, the Vision U.S. Government Securities
Fund has performed well. This fund posted a total return of 5.23% (0.53% ad-
justed for the fund's sales charge)* for the six month period ended October
31, 1998. This return compares to the Lipper General Government Index of 5.50%
and the Morningstar General Government Bond average of 5.18%, respectively.**
The Vision U.S. Government Securities Fund continued to have a duration
slightly longer than the Lehman Brothers Aggregate Bond Index average. The
fund was able to add to its corporate holdings while prices and yields for
this sector were extremely attractive in September and October.
*Performance quoted reflects past performance and is not indicative of future
results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
**Lipper figures represent the average of the total returns reported by all of
the mutual funds designated by Lipper Analytical Services, Inc. as falling
into the respective categories indicated. These figures do not reflect sales
charges.
VISION NEW YORK MUNICIPAL INCOME FUND
Over the last six months, the municipal bond market has been immune to much of
the turmoil and volatility of the taxable bond market. The municipal bond mar-
ket, as measured by the Bond Buyer 40 Index* (yield to par basis) was 5.68% on
April 30, 1998 or 95.5% of the U.S. Treasury 30 year yield. Higher bond prices
and lower yields (particularly in the Treasury market) resulted in a Bond
Buyer 40 Index of 5.34% on October 31, 1998 yielding in excess of 100% of 30
year Treasury Bonds.
Through much of 1998, economic growth has been moderate. While forecasts of
1999 Gross Domestic Product have been reduced, inflation concerns have contin-
ued to diminish. The Federal Reserve responded to these conditions when it
lowered the federal funds rate on September 29, 1998 from 5.50% to 5.25%. How-
ever, a Russian default, failure at hedge fund Long Term Capital Management
and associated "deleveraging" across the economy prompted additional rate cuts
on October 15 and November 17, 1998. These rate reductions were enacted to ad-
dress the "credit crunch" or lack of liquidity in the financial system.
Over the coming months we expect the Federal Reserve to remain ready to ease
again, but expect the bond market to trade on traditional economic fundamen-
tals such as employment and inflation rather than liquidity concerns.
Through this difficult period, the Vision New York Municipal Income Fund per-
formed well. This fund posted a total return of 4.76% (0.06% adjusted for the
fund's sales charge)** for the six month period ended October 31, 1998. This
compares to the Lipper New York Municipal average of 4.91% and the Morningstar
New York Municipal Bond Funds average of 4.83%.***
Over the last three months, municipal bonds have underperformed comparable
treasury securities, but have outperformed many other fixed income sectors
such as high yield bonds or mortgage-backed securities. Unlike many taxable
sectors, municipal "quality" spreads did not widen significantly in recent
months. We have used this opportunity to further upgrade the quality of the
Vision portfolio.
*The Bond Buyer 40 Bond Index is comprised of 40 actively quoted and traded
long-term municipal bonds.
**Performance quoted reflects past performance and is not indicative of future
results. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
***Lipper figures represent the average of the total returns reported by all
of the mutual funds designated by Lipper Analytical Services, Inc. as falling
into the respective categories indicated. These figures do not reflect sales
charges.
VISION EQUITY INCOME FUND
For the six month period ended October 31, 1998, the Vision Equity Income Fund
has returned a negative (5.45)%, or (10.67)% adjusted for the fund's sales
charge.* This compares to the negative (6.71)% total return of the S&P/Barra
Value Index, a commonly referenced unmanaged index of large capitalization
"value" oriented stocks.** During this same period, the Lipper Equity Income
Fund Average returned a negative (5.87)%.***
Your fund is continuing its contrarian investment strategy of seeking out-of-
favor large cap stocks offering above average dividend yields. This allows the
fund to collect an outsized yield on its investments while waiting for earn-
ings prospects and market psychology to improve for these "unloved" issues.
This strategy has led the fund to purchase such stocks as General Motors, the
automobile manufacturer, and Whirlpool Corp., the appliance maker. Of course,
while we believe the companies owned by the fund represent good values with
favorable prospects, we continue to closely monitor them.
As we predicted in our annual report last April, the problems in Asia and the
developing markets and their implication for the U.S. economy have become the
focal point of U.S. investors. The most remarkable feature of the U.S. equity
market during this year has been the narrowness of the market's leadership as
investors flocked to the perceived safety of a few large capitalization, brand
name, growth stocks. This narrow leadership makes it extremely difficult for
money managers to outperform the S&P 500.+
This market's reaction to international turmoil is not all that different from
what we have seen in the past. In 1994, we experienced a significant rise in
interest rates driven by Federal Reserve policy that exposed the derivatives
market to significant volatility. Money market mutual funds needed infusions
of cash to protect the "dollar" value, which is not guaranteed. The ripple ex-
tended to the municipal sector with Orange County, California filing for bank-
ruptcy protection. The soft landing recession of 1990 was surrounded by a real
estate and banking crisis. The actual recession was probably a result of peo-
ple watching the war in Iraq/Kuwait rather than consuming goods and services.
In 1987, portfolio insurance created a cascading effect in stock prices that
exaggerated a market decline due to automated trading strategies and resulted
in a 36.1% decline. The 45.1% decline of 1973-1974 was the worst in the past
50 years. That market was rocked by the oil embargo, rising interest rates,
stagnant growth and a president in trouble, who ultimately resigned. Of
course, these are not exact comparisons to today, but there are many similari-
ties.
*Performance quoted reflects past performance and is not indicative of future
results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
**The S&P/Barra Value Index is constructed by sorting the S&P 500 based on
their price/book ratios, with the low price/book companies forming the index.
This index is unmanaged and investments cannot be made in an index.
***The Lipper Equity Income Fund Average represents the average of the total
returns reported by all of the mutual funds designated by Lipper Analytical
Services, Inc. as falling into the Equity Income category. Lipper figures do
not reflect sales charges.
+The S&P 500 is an unmanaged capitalization weighted index designed to measure
performance of the broad domestic economy through changes in the aggregate
market value of 500 stocks representing all major industries. Investments
cannot be made in an index.
Today, interest rates are low and declining with credit readily available, in-
flation is not a problem and the Federal budget now has a surplus. We have
more flexibility to deal with this turmoil than we have had in the past. Like
any commodity, stock prices will move to an extreme of over-or under-valua-
tion. We expect unusually high volatility over the coming months but also that
most of this market decline is behind us. The disciplined investor will look
back on this period of time as another in a series of opportunities that seems
to occur about every four years; one where long-term investors can take advan-
tage of lower valuations.
VISION GROWTH AND INCOME FUND
For the six month period ended October 31, 1998 the Vision Growth and Income
Fund achieved a total return of -23.04% based on net asset value (-27.28% ad-
justed for the fund's sales charge).* The Lipper Mid-Cap Mutual Fund Average
generated a return of -15.34%, while the Standard & Poor's 500 Index (S&P 500)
returned -1.18% and the Russell Midcap Index returned -10.61% for the same
period.**
The fund's performance struggled during the six month period ended October 31,
1998, primarily due to the volatility experienced by the market. This volatil-
ity was caused by rapidly changing economic perceptions and concerns. Weakening
overseas economies, particularly in Asia and Eastern Europe, began to affect
U.S. corporate earnings. The financial and political turmoil in Russia precipi-
tated a "flight to quality", causing U.S. Treasuries to appreciate, resulting
in a historical low yield for the 30 year bond. Many highly leveraged hedge
funds were forced to liquidate positions in order to meet margin calls on loans
outstanding. This confluence of events resulted in a decline in U.S. equity
prices and a pause in the ongoing bull market. Rapid intervention however by
the Federal Reserve in the lowering of interest rates quickly dissipated these
concerns and once again turned the market upward.
During this period of worldwide financial turmoil, valuations of various secu-
rities, particularly those of smaller and mid-sized companies, became increas-
ingly attractive. Taking advantage of this situation we added to select posi-
tions in the fund. These additions proved to be quite opportunistic as the
market's rapid rebound in October resulted in the quick appreciation of many of
these depressed securities. We expect the market to remain volatile and, as
such, continue to anticipate a fair degree of turnover in order to exploit op-
portunities presented by rapidly changing prices.
We remain concerned about the valuation of large capitalization stocks. The re-
cent market action has done little to narrow the valuation gap between the top
20 S&P 500 stocks and the broader market. Companies continue to have difficulty
increasing prices. A lot of corporate resources in the form of time and money
are being dedicated to fixing the year 2000 problem. Excess capacity in certain
industries appears problematic.
Offsetting these concerns are many positive factors. The Federal Reserve has
lowered interest rates. Inflation appears benign. Employment remains strong,
leaving the U.S. consumer in a good financial condition. Mergers and acquisi-
tions continue at a brisk pace. Corporations and insiders are buying large
amounts of their own stock. Demographics continue to provide net inflows into
the market. New products and innovations abound. Companies continue to enhance
productivity and decrease costs.
*Performance quoted reflects past performance and is not indicative of future
results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
**Lipper figures represent the average of the total returns reported by all of
the mutual funds designated by Lipper Analytical Services, Inc. as falling
into the categories indicated. Lipper figures do not reflect sales charges.
The S&P 500 is an unmanaged capitalization weighted index designed to measure
performance of the broad domestic economy through changes in the aggregate
market value of 500 stocks representing all major industries. Investments
cannot be made in an index. The Russell Midcap Index measures the performance
of the 800 smallest companies in the Russell 1000 Index, which represent
approximately 35% of the total market capitalization of the Russell 1000
Index. This index is unmanaged, and investments cannot be made in an index.
Going forward we believe earnings growth will become paramount for stock price
appreciation. The major forces behind the market continue to remain positive,
although another "correction" could occur at any time and would not surprise
us. We would view any downturn in the market to be temporary in nature and not
the initial stage of a protracted bear market. We continue to identify excit-
ing and attractive investment opportunities for the fund.
The fund looks to invest in quality mid-sized companies that have consistent
earnings growth and sell at attractive valuations. Industries that benefit
from major secular or macro trends, such as the aging U.S. population, new
uses of technology or outsourcing by corporations, are emphasized. While in-
come is considered important, principal appreciation is the primary concern.
VISION CAPITAL APPRECIATION FUND
The Vision Capital Appreciation Fund provided a total return of -25.19% based
on net asset value (-29.30% adjusted for the fund's sales charge) for the six
month period ended October 31, 1998.* The Russell Midcap Growth Index** bench-
mark returned -11.81% over the same time period. Since inception performance
has deteriorated during this very difficult period for investors. Investors in
the fund should focus on a long-term investment horizon and recognize that
mid-cap growth stocks tend to trade differently than the S&P 500.*** We feel
that this will be one of the more attractive areas of the market over the com-
ing five to seven years.
The international problems that started last year have been a major contribu-
tor to the financial market volatility that we have been experiencing. This
market's reaction to international turmoil is not all that different from what
we have seen in the past. In 1994, we experienced a significant rise in inter-
est rates driven by Federal Reserve policy that exposed the derivatives market
to significant volatility. Money market mutual funds needed infusions of cash
to protect the "dollar" value, which is not guaranteed. The ripple extended to
the municipal sector with Orange County, California filing for bankruptcy pro-
tection. The soft landing recession of 1990 was surrounded by a real estate
and banking crisis. The actual recession was probably a result of people
watching the war in Iraq/Kuwait rather than consuming goods and services. In
1987, portfolio insurance created a cascading effect in stock prices that ex-
aggerated a market decline due to automated trading strategies that resulted
in a 36.1% decline. The 45.1% decline of 1973-1974 was the worst in the past
50 years and that market was rocked with the oil embargo, rising interest
rates, stagnant growth and a president in trouble, who ultimately resigned.
While these are not exact comparisons to today, there are many similarities.
The current economic stumble appears consistent with these problems, but the
reasons vary. Today, interest rates are low and declining with credit readily
available, inflation is not a problem and the federal budget is now in a sur-
plus position. We have more flexibility to deal with this turmoil than we have
had in the past. Like any commodity, stock prices will move to an extreme of
over- or under- valuation. We expect unusually high volatility over the coming
months but also that most of this market decline is behind us. The disciplined
investor will look back on this period of time as another in a series of op-
portunities that seems to occur about every four years; one where long-term
investors can take advantage of valuations.
*Performance quoted reflects past performance and is not indicative of future
results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
**The Russell Midcap Growth Index measures the performance of those Russell
Midcap companies with higher price-to-book ratios and higher forecasted
growth values. This index is unmanaged, and investments cannot be made in
an index.
***The S&P 500 is an unmanaged capitalization weighted index designed to
measure performance of the broad domestic economy through changes in the
aggregate market value of 500 Stocks representing all major industries.
Investments cannot be made in an index.
We expect the investor to remain nervous, contributing to the volatility of
the market. Investors should expect that a correction can be triggered by any
number of factors that can not be predicted. Mergers and acquisitions continue
at a brisk pace. Corporations and insiders are buying large amounts of their
own stock. Demographics continue to provide new inflows into the market. New
products and innovations abound. Companies continue to enhance productivity
and decrease costs. The long term looks very bright, but there will be bumps
along the way.
VISION U.S. GOVERNMENT SECURITIES FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ----------------------------------------------------- -----------
<C> <S> <C>
ASSET-BACKED SECURITIES--0.8%
----------------------------------------------------------------
$ 27,300 Old Stone Credit Corp. Home Equity Trust, 6.950%,
5/15/2007 $ 27,336
-----------------------------------------------------
85,490 Provident Bank Home Equity Loan Trust 1996-1, 7.600%,
10/25/2012 88,820
-----------------------------------------------------
138,912 The Money Store Home Equity Trust 1992-C, 6.200%,
10/15/2017 140,040
-----------------------------------------------------
258,000 The Money Store Home Equity Trust 1994-C, 7.800%,
10/15/2021 265,607
----------------------------------------------------- -----------
TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST
$512,449) 521,803
----------------------------------------------------- -----------
COLLATERALIZED MORTGAGE OBLIGATIONS--12.6%
----------------------------------------------------------------
185,330 Mortgage Investors Trust, 6.255%, 12/31/2009 185,530
-----------------------------------------------------
55,000 FHLMC Series 1686-PJ, REMIC, 5.000%, 2/15/2024 50,682
-----------------------------------------------------
974,000 FHLMC Series 20-H, REMIC, 5.500%, 10/25/2023 872,762
-----------------------------------------------------
25,595 FHLMC Series 1598-E, REMIC, 5.600%, 11/15/2005 25,613
-----------------------------------------------------
30,000 FHLMC Series 1697-PG, REMIC, 5.800%, 4/15/2006 30,460
-----------------------------------------------------
105,000 FHLMC Series 1637-GA, REMIC, 5.800%, 6/15/2023 104,836
-----------------------------------------------------
160,000 FHLMC Series 1534-H, REMIC, 6.000%, 1/15/2023 159,459
-----------------------------------------------------
583,000 FHLMC Series 23-PK, REMIC, 6.000%, 11/25/2023 586,428
-----------------------------------------------------
18,000 FHLMC Series 136-E, REMIC, 6.000%, 4/15/2021 18,384
-----------------------------------------------------
279,000 FHLMC Series 1577-PK, REMIC, 6.500%, 9/15/2023 277,979
-----------------------------------------------------
176,000 FHLMC Series 1644-K, REMIC, 6.750%, 12/15/2023 177,389
-----------------------------------------------------
250,000 FHLMC Series 1455-H, REMIC, 7.000%, 6/15/2021 266,497
-----------------------------------------------------
58,000 FHLMC Series 33-H, REMIC, 7.500%, 6/25/2023 60,275
-----------------------------------------------------
597,000 FHLMC Series 42-I, REMIC, 8.000%, 10/17/2024 623,304
-----------------------------------------------------
90,561 FNMA Series 1994-22-A, REMIC 5.000%, 3/25/2022 90,139
-----------------------------------------------------
42,000 FNMA Series 1993-38-L, REMIC 5.000%, 8/25/2022 40,394
-----------------------------------------------------
152,000 FNMA Series 1994-3-PL, REMIC 5.500%, 1/25/2024 145,642
-----------------------------------------------------
788,000 FNMA Series 1992-136-PJ, REMIC 6.000%, 5/25/2021 781,050
-----------------------------------------------------
111,000 FNMA Series 1993-198-K, REMIC 6.000%, 12/25/2022 108,934
-----------------------------------------------------
940,000 FNMA Series 1994-36-GA, REMIC 6.500%, 2/25/2020 973,107
-----------------------------------------------------
</TABLE>
VISION U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ----------------------------------------------------- -----------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS--CONTINUED
----------------------------------------------------------------
$ 26,000 FNMA Series 1993-160-PK, REMIC 6.500%, 11/25/2022 $ 26,435
-----------------------------------------------------
175,000 FNMA Series 1993-223-C, REMIC 6.500%, 5/25/2023 177,231
-----------------------------------------------------
554,000 FNMA Series 1993-127-H, REMIC 6.500%, 7/25/2023 556,150
-----------------------------------------------------
395,000 FNMA Series 1993-113-PK, REMIC 6.500%, 7/25/2023 410,922
-----------------------------------------------------
155,000 FNMA Series 1993-202-J, REMIC 6.500%, 11/25/2023 154,919
-----------------------------------------------------
297,000 FNMA Series 1993-252-N, REMIC 6.500%, 8/25/2023 298,788
-----------------------------------------------------
181,000 FNMA Series 1994-55-H, REMIC 7.000%, 3/25/2024 182,479
-----------------------------------------------------
50,000 FNMA Series G93-1-HA, REMIC 7.500%, 2/25/2021 51,385
-----------------------------------------------------
307,000 FNMA Series 1992-13, REMIC 8.000%, 1/25/2022 320,711
----------------------------------------------------- -----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED
COST $7,312,240) 7,757,884
----------------------------------------------------- -----------
CORPORATE BONDS--20.5%
----------------------------------------------------------------
105,000 AON Corp., 6.875%, 10/1/1999 106,500
-----------------------------------------------------
500,000 Bay State Gas Co., 9.200%, 6/6/2011 643,030
-----------------------------------------------------
180,000 BellSouth Telecommunications, Inc., 5.850%,
11/15/2045 183,929
-----------------------------------------------------
1,000,000 Boeing Co., 6.625%, 2/15/2038 966,610
-----------------------------------------------------
250,000 Cargill, Inc., 6.875%, 5/1/2028 261,518
-----------------------------------------------------
100,000 Countrywide Home Loans, Inc., 6.510%, 2/11/2005 101,428
-----------------------------------------------------
1,200,000 Countrywide Home Loans, Inc., 6.580%, 9/21/2001 1,219,824
-----------------------------------------------------
450,000 Countrywide Home Loans, Inc., 7.200%, 10/30/2006 469,494
-----------------------------------------------------
800,000 Delmarva Power and Light Co., 8.500%, 2/1/2022 905,296
-----------------------------------------------------
250,000 First Union National Bank, Charlotte, N.C., 6.180%,
2/15/2036 264,678
-----------------------------------------------------
1,000,000 Florida Power Corp., 8.000%, 12/1/2022 1,100,590
-----------------------------------------------------
160,000 Ford Motor Credit Corp., 6.375%, 12/15/2005 166,499
-----------------------------------------------------
59,000 Fortune Brands, Inc., 8.625%, 11/15/2021 74,137
-----------------------------------------------------
150,000 GTE North, Inc., 8.500%, 12/15/2031 165,813
-----------------------------------------------------
100,000 General Electric Capital Corp., 8.300%, 9/20/2009 120,355
-----------------------------------------------------
50,000 Loews Corp., 8.875%, 4/15/2011 59,572
-----------------------------------------------------
150,000 Monsanto Co., 6.110%, 2/3/2005 156,248
-----------------------------------------------------
</TABLE>
VISION U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ---------------------------------------------------- -----------
<C> <S> <C>
CORPORATE BONDS--CONTINUED
---------------------------------------------------------------
$ 806,192 NYNEX Corp., 9.550%, 5/1/2010 $ 969,591
----------------------------------------------------
485,000 National Coop Services Corp., 9.375%, 1/2/2011 503,784
----------------------------------------------------
500,000 New Plan Realty Trust, 6.800%, 5/15/2002 503,405
----------------------------------------------------
800,000 Ohio National Life Insurance Co., 8.500%, 5/15/2026 881,072
----------------------------------------------------
150,000 PG&E Gas Transmission Northwest, 7.800%, 6/1/2025 154,896
----------------------------------------------------
100,000 Pennsylvania Power & Light Co., 8.500%, 5/1/2022 111,592
----------------------------------------------------
390,000 Philip Morris Cos., Inc., 8.375%, 1/15/2017 406,454
----------------------------------------------------
255,000 Phillips Petroleum Co., 6.650%, 7/15/2018 254,628
----------------------------------------------------
1,000,000 Potomac Edison Co., 8.000%, 6/1/2006 1,034,820
----------------------------------------------------
60,000 Potomac Electric Power Co., 8.500%, 5/15/2027 67,151
----------------------------------------------------
125,000 Public Service Co. Colo, 8.750%, 3/1/2022 139,917
----------------------------------------------------
125,000 Rochester Gas & Electric Corp, 9.375%, 4/1/2021 139,352
----------------------------------------------------
125,000 Virginia Electric Power Co., 8.250%, 3/1/2025 140,895
----------------------------------------------------
360,000 Virginia Electric Power Co., 8.750%, 4/1/2021 396,018
---------------------------------------------------- -----------
TOTAL CORPORATE BONDS (IDENTIFIED COST $12,400,087) 12,669,096
---------------------------------------------------- -----------
GOVERNMENT AGENCIES--25.1%
---------------------------------------------------------------
50,000 Federal Home Loan Bank System, 6.561%, 1/30/2003 50,581
----------------------------------------------------
50,000 Federal Home Loan Bank System, 7.140%, 6/6/2001 52,912
----------------------------------------------------
175,000 Federal Home Loan Mortgage Corp., 6.943%, 3/21/2007 195,465
----------------------------------------------------
20,138 Federal Home Loan Mortgage Corp., 8.200%, 9/15/2007 20,727
----------------------------------------------------
279,516 Federal Home Loan Mortgage Corp., 9.875%, 3/15/2009 299,046
----------------------------------------------------
328,582 Federal Home Loan Mortgage Corp., 10.250%, 3/15/2009 353,375
----------------------------------------------------
50,000 Federal National Mortgage Association, 6.440%,
6/21/2005 53,782
----------------------------------------------------
1,000,000 Federal National Mortgage Association, 6.940%,
3/19/2007 1,048,780
----------------------------------------------------
500,000 Federal National Mortgage Association, 7.800%,
7/26/2006 509,200
----------------------------------------------------
370,000 HUD 89A Caguas, 8.750%, 8/1/1999 380,353
----------------------------------------------------
700,000 HUD 90A Mayaguez, 9.100%, 8/1/2000 749,931
----------------------------------------------------
250,000 HUD 92A Detroit, 7.120%, 8/1/2001 264,045
----------------------------------------------------
</TABLE>
VISION U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------------------------------------------ -----------
<C> <S> <C>
GOVERNMENT AGENCIES--CONTINUED
-----------------------------------------------------------
$ 270,000 HUD 94A Atlanta, 6.760%, 8/1/2006 $ 284,445
------------------------------------------------
360,000 HUD 94A Atlanta, 6.930%, 8/1/2009 380,772
------------------------------------------------
500,000 Housing and Urban Development, 6.590%, 8/1/2000 515,418
------------------------------------------------
910,000 Housing and Urban Development, 6.930%, 8/1/2013 996,678
------------------------------------------------
500,000 Housing and Urban Development, 7.140%, 8/1/2007 551,530
------------------------------------------------
500,000 Private Export Funding Corp., 6.490%, 7/15/2007 541,906
------------------------------------------------
75,000 Private Export Funding Corp., 7.950%, 11/1/2006 85,276
------------------------------------------------
1,000,000 Small Business Administration, 5.600%, 9/1/2008 1,004,530
------------------------------------------------
1,863,516 Small Business Administration, 6.700%, 12/1/2016 2,031,586
------------------------------------------------
4,708,194 Small Business Administration, 6.950%, 11/1/2016 4,936,259
------------------------------------------------
119,607 Small Business Administration, 8.850%, 8/1/2011 135,192
------------------------------------------------
50,000 Tennessee Valley Authority, 6.000%, 11/1/2000 51,282
------------------------------------------------ -----------
TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST
$15,051,537) 15,493,071
------------------------------------------------ -----------
GOVERNMENTS/AGENCIES--1.0%
-----------------------------------------------------------
564,000 Israel AID, 6.800%, 2/15/2012 (IDENTIFIED COST
$579,792) 638,736
------------------------------------------------ -----------
MORTGAGE BACKED SECURITIES--17.1%
-----------------------------------------------------------
248,309 FHLMC, 7.000%, 11/1/2007 252,808
------------------------------------------------
270,551 FHLMC, 7.000%, 7/1/2008 275,708
------------------------------------------------
488,888 FHLMC, 7.000%, 8/1/2008 497,746
------------------------------------------------
257,050 FHLMC, 7.000%, 11/1/2010 262,432
------------------------------------------------
257,201 FHLMC, 7.000%, 11/1/2017 263,551
------------------------------------------------
23,314 FHLMC, 7.250%, 1/1/2005 23,794
------------------------------------------------
92,842 FHLMC, 7.250%, 11/1/2009 94,756
------------------------------------------------
61,842 FHLMC, 7.500%, 7/1/2007 63,272
------------------------------------------------
260,021 FHLMC, 7.500%, 3/1/2008 266,033
------------------------------------------------
139,613 FHLMC, 7.500%, 6/1/2008 143,147
------------------------------------------------
47,717 FHLMC, 7.500%, 11/1/2009 48,821
------------------------------------------------
152,133 FHLMC, 7.500%, 12/1/2010 155,650
------------------------------------------------
</TABLE>
VISION U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------------------ -----------
<C> <S> <C>
MORTGAGE BACKED SECURITIES--
CONTINUED
-----------------------------------
$ 54,839 FHLMC, 7.500%, 3/1/2017 $ 56,553
------------------------
58,820 FHLMC, 8.000%, 5/1/2002 59,979
------------------------
15,712 FHLMC, 8.000%, 5/1/2006 16,075
------------------------
12,771 FHLMC, 8.000%, 3/1/2007 13,082
------------------------
70,413 FHLMC, 8.000%, 9/1/2007 72,459
------------------------
459,951 FHLMC, 8.000%, 11/1/2008 473,317
------------------------
66,437 FHLMC, 8.000%, 1/1/2010 67,848
------------------------
89,566 FHLMC, 8.000%, 12/1/2010 92,169
------------------------
49,461 FHLMC, 8.250%, 12/1/2007 51,107
------------------------
111,218 FHLMC, 8.250%, 5/1/2008 113,442
------------------------
71,520 FHLMC, 8.250%, 5/1/2009 73,901
------------------------
83,862 FHLMC, 8.250%, 8/1/2009 86,653
------------------------
42,148 FHLMC, 8.500%, 6/1/2002 43,281
------------------------
294,221 FHLMC, 8.500%, 7/1/2004 302,494
------------------------
41,706 FHLMC, 8.500%, 4/1/2006 43,301
------------------------
110,312 FHLMC, 8.500%, 9/1/2009 113,725
------------------------
29,285 FHLMC, 8.750%, 8/1/2008 29,742
------------------------
32,952 FHLMC, 9.000%, 3/1/2002 33,869
------------------------
11,438 FHLMC, 9.000%, 9/1/2019 12,060
------------------------
130,669 FHLMC, 9.250%, 6/1/2002 134,139
------------------------
38,123 FHLMC, 10.500%, 3/1/2001 39,036
------------------------
600,222 FNMA, 6.000%, 5/1/2009 605,288
------------------------
52,236 FNMA, 6.000%, 1/1/2014 51,845
------------------------
120,921 FNMA, 6.500%, 4/1/2004 122,773
------------------------
42,068 FNMA, 6.750%, 12/1/2006 42,705
------------------------
113,978 FNMA, 7.500%, 11/1/2009 117,023
------------------------
91,666 FNMA, 8.000%, 4/1/2002 94,072
------------------------
224,418 FNMA, 8.000%, 1/1/2006 229,607
------------------------
</TABLE>
VISION U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ----------------------- -----------
<C> <S> <C>
MORTGAGE BACKED SECURITIES--
CONTINUED
-----------------------------------
$ 221,024 FNMA, 8.000%, 1/1/2010 $ 228,552
-----------------------
111,115 FNMA, 8.250%, 7/1/2009 115,629
-----------------------
103,211 FNMA, 8.500%, 10/1/2002 106,501
-----------------------
66,770 FNMA, 8.500%, 3/1/2012 69,628
-----------------------
96,432 FNMA 8.750%, 5/1/2010 101,781
-----------------------
31,994 FNMA 9.000%, 12/1/2002 33,044
-----------------------
94,306 FNMA 9.000%, 10/1/2006 98,757
-----------------------
93,949 FNMA 9.750%, 9/1/2017 101,877
-----------------------
27,283 GNMA 7.250%, 2/15/2005 27,987
-----------------------
74,469 GNMA 7.250%, 3/15/2005 76,389
-----------------------
47,178 GNMA 7.250%, 3/15/2005 48,395
-----------------------
17,460 GNMA 7.250%, 7/15/2005 17,965
-----------------------
10,596 GNMA 7.250%, 10/15/2005 10,902
-----------------------
38,411 GNMA 7.250%, 11/15/2005 39,521
-----------------------
59,857 GNMA 7.500%, 12/15/2005 61,840
-----------------------
66,409 GNMA 7.500%, 6/20/2007 68,485
-----------------------
44,618 GNMA 8.000%, 6/15/2006 46,095
-----------------------
34,255 GNMA 8.000%, 8/15/2006 35,336
-----------------------
73,603 GNMA 8.000%, 9/15/2006 76,272
-----------------------
769,438 GNMA 8.000%, 9/15/2007 801,662
-----------------------
185,630 GNMA 8.000%, 10/15/2007 192,302
-----------------------
115,234 GNMA 8.000%, 12/15/2009 118,656
-----------------------
196,697 GNMA 8.000%, 2/15/2010 203,766
-----------------------
148,306 GNMA 8.000%, 12/15/2016 154,794
-----------------------
62,526 GNMA 8.000%, 7/15/2024 64,793
-----------------------
113,773 GNMA 8.250%, 6/15/2008 119,550
-----------------------
74,859 GNMA 8.375%, 4/15/2010 77,713
-----------------------
597,692 GNMA 8.500%, 9/15/2008 633,183
-----------------------
</TABLE>
VISION U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT OR
SHARES VALUE
---------- ---------------------------------------------------- -----------
<C> <S> <C>
MORTGAGE BACKED SECURITIES--CONTINUED
---------------------------------------------------------------
$ 297,668 GNMA 8.500%, 10/20/2009 $ 309,294
----------------------------------------------------
49,179 GNMA 8.750%, 2/15/2002 50,585
----------------------------------------------------
92,917 GNMA 9.000%, 4/15/2001 95,501
----------------------------------------------------
22,316 GNMA 9.000%, 4/15/2001 22,916
----------------------------------------------------
16,295 GNMA 9.000%, 5/15/2001 16,748
----------------------------------------------------
458,314 GNMA 9.000%, 4/20/2023 487,101
----------------------------------------------------
286,944 GNMA 9.000%, 10/20/2024 304,878
---------------------------------------------------- -----------
TOTAL MORTGAGE BACKED SECURITIES (IDENTIFIED COST
$10,465,007) 10,557,661
---------------------------------------------------- -----------
MUNICIPALS--11.5%
---------------------------------------------------------------
1,000,000 Atlanta, GA Downtown Development Authority, 6.250%,
2/1/2009 1,052,300
----------------------------------------------------
225,000 Chicago, IL Public Building Commission, 7.000%,
1/1/2007 250,695
----------------------------------------------------
250,000 Connecticut Development Authority, 8.550%, 8/15/2008 285,240
----------------------------------------------------
265,000 Connecticut Municipal Electric Energy Cooperative,
5.700%, 1/1/2004 271,145
----------------------------------------------------
75,000 Connecticut State HEFA, 7.070%, 11/1/2001 76,545
----------------------------------------------------
100,000 Greater Orlando (FL) Aviation Authority, 8.250%,
10/1/2004 114,542
----------------------------------------------------
200,000 Miami, FL, 8.650%, 7/1/2019 263,140
----------------------------------------------------
3,100,000 Minneapolis/St. Paul, MN Airport Commission, 8.950%,
1/1/2022 3,558,800
----------------------------------------------------
900,000 New Jersey State, 8.350%, 8/1/2010 991,647
----------------------------------------------------
100,000 New York City, NY, 10.500%, 11/15/2012 116,900
----------------------------------------------------
80,000 New York City, NY, 9.900%, 2/1/2015 92,720
---------------------------------------------------- -----------
TOTAL MUNICIPALS (IDENTIFIED COST $6,839,812) 7,073,674
---------------------------------------------------- -----------
U.S. TREASURY BONDS--8.1%
---------------------------------------------------------------
2,000,000 6.375%, 8/15/2027 2,304,520
----------------------------------------------------
2,000,000 8.125%, 5/15/2021 2,704,440
---------------------------------------------------- -----------
TOTAL U.S. TREASURY BONDS (IDENTIFIED COST
$5,031,563) 5,008,960
---------------------------------------------------- -----------
</TABLE>
VISION U.S. GOVERNMENT SECURITIES FUND
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- ---------------------------------------------------- -----------
<C> <S> <C>
MUTUAL FUND SHARES--1.9%
--------------------------------------------------------------
1,194,184 SSGA US Government Money Market Fund, 4.970% (AT NET
ASSET VALUE) $ 1,194,184
---------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST $59,386,671)(A) $60,915,069
---------------------------------------------------- -----------
</TABLE>
(a) The cost of investments for federal tax purposes amounts to $59,386,671.
The net unrealized appreciation of investments on a federal tax basis
amounts to $1,528,398 which is comprised of $1,639,379 appreciation and
$110,981 depreciation at October 31, 1998.
Note: The categories of investments are shown as a percentage of net assets
($61,802,924) at October 31, 1998.
The following acronym(s) are used throughout this portfolio:
HEFA --Health and Education Facilities Authority
REMIC --Real Estate Mortgage Investment Conduit
(See Notes which are an integral part of the Financial Statements)
VISION NEW YORK MUNICIPAL INCOME FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- --------------------------------------------- ------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPALS--98.5%
--------------------------------------------------------
NEW YORK--95.3%
---------------------------------------------
$ 45,000 34th Street Partnership, Inc., NY, 5.50%
(Original Issue Yield: 5.613%), 1/1/2023 NR $ 46,190
---------------------------------------------
25,000 Alden Central School District, NY, GO UT,
6.25% (AMBAC INS)/(Original Issue Yield:
6.40%), 6/15/2009 AAA 29,484
---------------------------------------------
525,000 Allegany County, NY IDA, Revenue Bonds, 6.63%
(Atlantic Richfield Co.)/(Original Issue
Yield: 6.63%), 9/1/2016/(AMT) A 572,035
---------------------------------------------
25,000 Amherst, NY, GO UT, 6.20% (FGIC
INS)/(Original Issue Yield: 6.00%), 4/1/2002 AAA 27,018
---------------------------------------------
10,000 Batavia, NY, GO UT Bonds, 6.55% (MBIA
INS)/(Original Issue Yield: 6.60%), 5/1/2005 AAA 11,512
---------------------------------------------
25,000 Beacon, NY City School District, GO UT, 5.10%
(Original Issue Yield: 5.25%), 7/15/2006 AAA 26,747
---------------------------------------------
100,000 Brighton, NY Central School District, GO UT,
5.40% (Original Issue Yield: 5.55%), 6/1/2011 AAA 107,805
---------------------------------------------
10,000 Brighton, NY, 8.00% (MBIA INS), 10/15/2002 AAA 11,552
---------------------------------------------
50,000 Brockport, NY Central School District, GO UT,
5.40% (Original Issue Yield: 5.55%),
6/15/2011 AAA 54,189
---------------------------------------------
50,000 Broome County, NY, Certificate of
Participation, 5.25% (MBIA INS)/(Original
Issue Yield: 5.58%), 4/1/2022 AAA 50,811
---------------------------------------------
70,000 Buffalo & Fort Erie, NY Public Bridge
Authority, 6.00% (MBIA INS)/(Original Issue
Yield: 5.05%), 1/1/2004 AAA 76,732
---------------------------------------------
25,000 Camden, NY Central School District, GO UT
School Improvement Bonds, 7.10% (AMBAC LOC),
6/15/2006 AAA 29,892
---------------------------------------------
30,000 Canandaigua, NY City School District, GO UT,
7.15% (United States Treasury PRF), 6/1/2000
(@102) AAA 32,293
---------------------------------------------
10,000 Canandaigua, NY, GO UT, 8.80% (Original Issue
Yield: 9.30%), 3/1/2005 NR 12,584
---------------------------------------------
</TABLE>
VISION NEW YORK MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- -------------------------------------------- ------- ------------
<C> <S> <C> <C>
LONG-TERM MUNICIPALS--CONTINUED
-------------------------------------------------------
NEW YORK--CONTINUED
--------------------------------------------
$ 30,000 Carmel, NY, 6.30%, 11/15/2011 NR $ 35,495
--------------------------------------------
50,000 Chautauqua County, NY, GO UT, 6.40% (FGIC
INS)/(Original Issue Yield: 6.30%),
9/15/2004 AAA 56,501
--------------------------------------------
100,000 Cheektowaga, NY Central School District, GO
UT, 5.88% (FGIC INS)/(Original Issue Yield:
5.95%), 6/1/2014 NR 110,552
--------------------------------------------
25,000 Cheektowaga, NY, GO UT, 5.65%, 8/15/2005 NR 27,454
--------------------------------------------
50,000 Cheektowaga, NY, GO UT, 6.55%, 10/15/2008 NR 59,864
--------------------------------------------
50,000 Cheektowaga-Maryvale, NY Union Free School
District, GO UT, 6.63% (FGIC INS), 6/15/2008 AAA 60,197
--------------------------------------------
50,000 Chemung County, NY, GO UT, 6.80% (AMBAC
INS)/(Original Issue Yield: 6.80%),
7/15/2006 AAA 59,011
--------------------------------------------
25,000 Chenango County, NY, 6.40%, 12/15/2008 NR 29,576
--------------------------------------------
100,000 Chittenango, NY Central School District, GO
UT, 7.00% (MBIA INS), 6/15/2009 AAA 123,745
--------------------------------------------
25,000 Churchville Chili, NY Central School
District, GO UT, 5.50% (FGIC INS)/(Original
Issue Yield: 5.50%), 6/15/2009 AAA 27,841
--------------------------------------------
25,000 Clarence, NY Central School District, GO UT,
5.30% (FGIC INS)/(Original Issue Yield:
4.90%), 6/1/2006 NR 27,048
--------------------------------------------
25,000 Dutchess County, NY, GO UT, 8.50%, 7/15/2007 NR 33,028
--------------------------------------------
25,000 East Aurora, NY Union Free School District,
GO UT, 5.20% (FGIC INS)/(Original Issue
Yield: 4.80%), 6/15/2006 NR 27,133
--------------------------------------------
25,000 East Bloomfield, NY Central School District,
7.13% (MBIA INS), 6/15/2004 AAA 29,122
--------------------------------------------
25,000 East Irondequoit, NY Central School
District, GO UT, 6.90%, 12/1/2002 NR 28,032
--------------------------------------------
25,000 East Rochester, NY Union Free School
District, GO UT, 6.30% (AMBAC INS),
6/15/2003 AAA 27,636
--------------------------------------------
50,000 Endwell, NY, GO UT Fire District Bonds,
7.00% (Original Issue Yield: 7.35%),
3/1/2014 NR 62,307
--------------------------------------------
</TABLE>
VISION NEW YORK MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- ---------------------------------------------- ------- ----------
<C> <S> <C> <C>
LONG-TERM MUNICIPALS--CONTINUED
---------------------------------------------------------
NEW YORK--CONTINUED
----------------------------------------------
$ 50,000 Erie County, NY Water Authority, Series A,
6.00% (AMBAC INS)/(Original Issue Yield:
7.25%), 12/1/2008 AAA $ 56,074
----------------------------------------------
25,000 Erie County, NY, GO UT General Improvement
Bonds, 9.60% (MBIA INS)/(Original Issue Yield:
9.55%), 10/15/2000 AAA 27,870
----------------------------------------------
50,000 Erie County, NY, GO UT, 10.00% (MBIA INS),
10/15/2002 AAA 61,240
----------------------------------------------
1,030,000 Essex Cnty, NY IDA, Solid Waste Disposal
Revenue Bonds (Series A), 5.80% (International
Paper Co.), 12/1/2019/ (AMT) BBB+ 1,070,839
----------------------------------------------
55,000 Evans & Brant, NY Central School District, GO
UT, 6.85% (MBIA INS)/(Original Issue Yield:
6.90%), 6/15/2009 AAA 67,571
----------------------------------------------
25,000 Fairport, NY Central School District, GO UT,
5.00% (MBIA INS), 6/15/2003 AAA 26,396
----------------------------------------------
20,000 Frontier Central School District, NY, Hamburg
Township, GO UT, 9.50% (MBIA INS)/(Original
Issue Yield: 9.50%), 6/1/2002 AAA 23,806
----------------------------------------------
70,000 General Brown Central School District, NY,
Brownville & Dexter, GO UT, 5.70% (MBIA
INS)/(Original Issue Yield: 5.80%), 6/15/2014 AAA 75,662
----------------------------------------------
25,000 Genesee County, NY, GO UT, 5.30% (FGIC
INS)/(Original Issue Yield: 5.20%), 8/15/2009 NR 27,278
----------------------------------------------
30,000 Genesee County, NY, GO UT, 8.60% (MBIA
INS)/(Original Issue Yield: 9.25%), 4/1/2003 AAA 35,751
----------------------------------------------
25,000 Greece, NY Central School District, GO UT,
6.00% (FGIC INS)/(Original Issue Yield:
5.55%), 6/15/2004 AAA 27,634
----------------------------------------------
25,000 Greece, NY Central School District, GO UT,
7.00%, 6/15/2010 NR 31,240
----------------------------------------------
30,000 Greece, NY, GO UT, 6.25% (AMBAC INS),
12/1/2007 AAA 34,863
----------------------------------------------
50,000 Guilderland, NY, GO UT, 6.40% (FGIC
INS)/(Original Issue Yield: 6.65%), 9/15/2015 AAA 60,118
----------------------------------------------
25,000 Hamburg Town, NY, GO UT, 6.30% (MBIA
INS)/(Original Issue Yield: 6.45%), 11/15/2010 AAA 29,830
----------------------------------------------
50,000 Hanover Town, NY, GO UT, 9.80% (MBIA INS),
9/1/2004 AAA 65,300
----------------------------------------------
</TABLE>
VISION NEW YORK MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- --------------------------------------------- ------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPALS--CONTINUED
--------------------------------------------------------
NEW YORK--CONTINUED
---------------------------------------------
$ 30,000 Harrison, NY Central School District, GO UT
Refunding Bonds, 6.70%, 10/1/2007 NR $ 35,913
---------------------------------------------
25,000 Hilton Central School District, NY, GO UT,
6.85%, 6/15/2001 NR 27,055
---------------------------------------------
130,000 Holiday Square Housing Development Corp., NY,
Section 8 Assisted Project, 5.80% (Holiday
Square Management Co.)/(Federal National
Mortgage Association COL)/(Original Issue
Yield: 5.94%), 1/15/2024 NR 134,137
---------------------------------------------
20,000 Holland, NY Central School District, GO UT,
6.00% (FGIC INS)/(Original Issue Yield:
5.50%), 6/15/2003 AAA 21,916
---------------------------------------------
100,000 Housing NY Corp., Revenue Bonds, 5.00%
(Original Issue Yield: 5.65%), 11/1/2018 AA 99,126
---------------------------------------------
25,000 (a) Housing NY Corp., Revenue Refunding
Bonds, 5.00% (Original Issue Yield: 5.60%),
11/1/2013 AA 25,088
---------------------------------------------
15,000 Irondequoit, NY, 6.80% (Original Issue Yield:
7.20%), 3/1/2011 NR 18,342
---------------------------------------------
50,000 Ithaca, NY, 6.80%, 5/15/2003 NR 56,304
---------------------------------------------
25,000 Ithaca, NY, GO UT, 6.40% (Original Issue
Yield: 6.80%), 4/1/2009 NR 29,521
---------------------------------------------
30,000 Ithaca, NY, GO UT, 6.63% (Original Issue
Yield: 6.70%), 7/15/2005 NR 34,792
---------------------------------------------
1,245,000 Jamestown, NY Housing Authority, Mortgage
Revenue Bonds, 6.13% (Bradmar Village
Project)/(HUD Section 8 LOC), 7/1/2010 A- 1,307,723
---------------------------------------------
20,000 Kenmore, NY, GO UT, 6.35% (MBIA INS),
10/15/2009 AAA 23,813
---------------------------------------------
25,000 La Grange, NY, GO UT Public Improvement
Bonds, 7.70% (AMBAC INS)/(Original Issue
Yield: 7.75%), 4/15/2006 AAA 30,716
---------------------------------------------
50,000 Lakewood, NY, GO UT Public Improvement Bonds,
5.50% (Original Issue Yield: 5.70%), 4/1/2012 NR 53,694
---------------------------------------------
25,000 Lancaster Town, NY, GO UT Bonds, 5.30% (FSA
INS), 6/1/2005 AAA 27,098
---------------------------------------------
25,000 Lansing, NY, GO UT, 6.90% (Original Issue
Yield: 7.10%), 3/15/2009 NR 30,428
---------------------------------------------
</TABLE>
VISION NEW YORK MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- --------------------------------------------- ------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPALS--CONTINUED
--------------------------------------------------------
NEW YORK--CONTINUED
---------------------------------------------
$ 25,000 Lewiston Town, NY, GO UT Refunding Bonds,
5.50% (FSA INS)/(Original Issue Yield:
5.55%), 5/1/2014 AAA $ 27,548
---------------------------------------------
25,000 Liverpool Central School District, NY, 7.20%
(MBIA INS)/(Original Issue Yield: 7.30%),
10/1/2007 AAA 30,574
---------------------------------------------
25,000 Lockport Town, NY, GO UT, 5.45% (FGIC
INS)/(Original Issue Yield: 5.05%), 9/15/2006 NR 27,592
---------------------------------------------
1,650,000 Metropolitan Transportation Authority, New
York, Transit Improvement Revenue Bonds,
7.00% (MBIA LOC), 7/1/2006 AAA 1,959,061
---------------------------------------------
25,000 Monroe County, NY IDA, Revenue Bonds, 5.80%
(Nazareth College)/(MBIA INS)/(Original Issue
Yield: 5.80%), 6/1/2010 AAA 27,530
---------------------------------------------
50,000 Monroe County, NY, GO UT (Series A), 8.50%
(Original Issue Yield: 8.75%), 5/1/2000 NR 53,703
---------------------------------------------
25,000 Monroe County, NY, GO UT Public Improvement
Bonds, 6.05% (AMBAC INS)/(United States
Treasury PRF)/(Original Issue Yield: 6.05%),
6/1/2004 (@102) AAA 28,110
---------------------------------------------
25,000 Monroe Woodbury, NY Center School District,
GO UT, 6.70% (FGIC INS), 11/15/2010 AAA 28,405
---------------------------------------------
50,000 New Paltz, NY Central School District, GO UT
Bonds, 6.00% (AMBAC INS), 6/15/2008 AAA 57,726
---------------------------------------------
50,000 New York City Housing Development Corp.,
Revenue Refunding Bonds, 5.85% (FHA INS),
5/1/2026 AA 52,166
---------------------------------------------
100,000 New York City Housing Development Corp.,
Series A, 7.35% (FHA INS)/(Original Issue
Yield: 7.35%), 6/1/2019 AAA 107,288
---------------------------------------------
1,890,000 New York City, NY IDA, 5.85% (Nightingale-
Bamford School Project)/(Original Issue
Yield: 5.85%), 1/15/2020 A 1,996,728
---------------------------------------------
1,000,000 New York City, NY IDA, Refunding Revenue
Bonds, 5.65% (Brooklyn Navy Yard Cogeneration
Partners, L.P. Project)/(Original Issue
Yield: 5.74%), 10/1/2028/(AMT) BBB- 1,020,830
---------------------------------------------
2,160,000 New York City, NY IDA, Revenue Bonds, 5.65%
(United Air Lines)/(Original Issue Yield:
5.68%), 10/1/2032/(AMT) BB+ 2,179,159
---------------------------------------------
</TABLE>
VISION NEW YORK MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- --------------------------------------------- ------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPALS--CONTINUED
--------------------------------------------------------
NEW YORK--CONTINUED
---------------------------------------------
$1,500,000 New York City, NY IDA, Special Facilities
Revenue Bonds, 6.90% (American Airlines),
8/1/2024/(AMT) BBB- $ 1,662,195
---------------------------------------------
100,000 New York City, NY Transitional Finance
Authority, Revenue Bonds (Series A), 5.00%
(Original Issue Yield: 5.13%), 8/15/2013 AA 102,297
---------------------------------------------
900,000 New York City, NY, (Subseries A-8) Daily
VRDNs (Morgan Guaranty Trust Co., New York
LOC) AAA 900,000
---------------------------------------------
2,250,000 New York City, NY, GO UT, 5.25% (FGIC
INS)/(Original Issue Yield: 5.49%), 8/1/2016 AAA 2,322,248
---------------------------------------------
1,125,000 New York State Dormitory Authority, Mental
Health Services Facilities Improvement
(Series B), 6.50%, 2/15/2009 A- 1,307,115
---------------------------------------------
20,000 New York State Dormitory Authority, Refunding
Revenue Bonds (Series B), 5.25% (Original
Issue Yield: 5.75%), 5/15/2019 A- 20,807
---------------------------------------------
20,000 New York State Dormitory Authority, Revenue
Bonds, 5.00% (Rochester University-Strong
Memorial Hospital), 7/1/2005 AAA 21,226
---------------------------------------------
900,000 New York State Dormitory Authority, Revenue
Bonds, 5.25%, 7/1/2015 A- 928,890
---------------------------------------------
750,000 New York State Dormitory Authority, Revenue
Bonds, 5.75% (New York University)/(MBIA
INS), 7/1/2014 AAA 842,370
---------------------------------------------
200,000 New York State Dormitory Authority, Revenue
Bonds, 5.85% (Arden Hill)/(FHA INS), 8/1/2026 AAA 215,458
---------------------------------------------
490,000 New York State Dormitory Authority, Revenue
Bonds, 5.85% (Wesley Health System)/(FHA
INS), 8/1/2026 AAA 527,872
---------------------------------------------
100,000 New York State Dormitory Authority, Revenue
Bonds, 6.00% (Colgate University)/(MBIA
INS)/(Original Issue Yield: 5.25%), 7/1/2016 AAA 114,762
---------------------------------------------
1,000,000 New York State Dormitory Authority, Revenue
Bonds, 6.05% (Lutheran Center at
Poughkeepsie)/(Key Bank of New York
LOC)/(Original Issue Yield: 6.08%), 7/1/2026 NR 1,093,130
---------------------------------------------
2,000,000 New York State Dormitory Authority, Revenue
Bonds, 7.50%, 5/15/2013 A- 2,574,000
---------------------------------------------
</TABLE>
VISION NEW YORK MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- --------------------------------------------- ------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPALS--CONTINUED
--------------------------------------------------------
NEW YORK--CONTINUED
---------------------------------------------
$ 15,000 New York State Dormitory Authority, Revenue
Bonds, 7.85% (FHA INS)/(Original Issue Yield:
7.85%), 2/1/2029 AAA $ 15,430
---------------------------------------------
135,000 New York State Dormitory Authority, Revenue
Refunding Bonds, 7.15% (R & J Jewish
Geriatric Center)/(FHA INS), 8/1/2014 AAA 155,890
---------------------------------------------
45,000 New York State Energy Research & Development
Authority, Revenue Bonds (Series A), 7.50%
(Consolidated Edison Co.)/(Original Issue
Yield: 7.64%), 7/1/2025 (AMT) A+ 46,598
---------------------------------------------
1,000,000 New York State Environmental Facilities
Corp., Refunding Notes (Series F), 5.25%,
6/15/2014 A+ 1,045,580
---------------------------------------------
2,625,000 New York State Environmental Facilities
Corp., Solid Waste Disposal Revenue Bonds
(Series A), 5.70% (Occidental Petroleum
Corp.)/(Original Issue Yield: 5.75%),
9/1/2028/(AMT) BBB 2,673,195
---------------------------------------------
25,000 New York State HFA, (Series A), 6.90%,
8/15/2007/(AMT) NR 26,980
---------------------------------------------
260,000 New York State HFA, Hospital & Nursing Home
Project, 5.90% (Original Issue Yield: 5.93%),
11/1/2006 BBB 263,268
---------------------------------------------
100,000 New York State HFA, Revenue Refunding Bonds,
7.90% (United States Treasury COL), 11/1/2006 AAA 119,484
---------------------------------------------
320,000 New York State HFA, Revenue Refunding Bonds,
8.00% (Original Issue Yield: 8.08%),
11/1/2008 BBB+ 347,747
---------------------------------------------
1,000,000 New York State HFA, Service Contract
Obligation Revenue Bonds (Series A), 6.25%
(Original Issue Yield: 6.35%), 9/15/2010 BBB+ 1,117,480
---------------------------------------------
30,000 New York State Medical Care Facilities
Finance Agency, Hospital & Nursing Home
Revenue Bonds (Series B), 6.00% (Buffalo
General Hospital)/(FHA INS)/(Original Issue
Yield: 6.22%), 8/15/2014 AAA 32,090
---------------------------------------------
320,000 New York State Medical Care Facilities
Finance Agency, Revenue Bonds, 5.55%
(Original Issue Yield: 5.60%), 2/15/2001 A- 320,458
---------------------------------------------
100,000 New York State Medical Care Facilities
Finance Agency, Revenue Bonds, 7.00%,
8/15/2003 A- 108,993
---------------------------------------------
</TABLE>
VISION NEW YORK MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- --------------------------------------------- ------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPALS--CONTINUED
--------------------------------------------------------
NEW YORK--CONTINUED
---------------------------------------------
$ 235,000 New York State Medical Care Facilities
Finance Agency, Revenue Bonds, 7.60% (FHA
INS), 2/15/2029 AA $ 242,447
---------------------------------------------
1,000,000 New York State Medical Care Facilities
Finance Agency, Series A Revenue Bonds, 5.88%
(Mercy Medical Center)/(Natwest Bancorp
LOC)/(Original Issue Yield: 6.00%), 11/1/2015 AA- 1,073,840
---------------------------------------------
90,000 New York State Mortgage Agency, Revenue
Bonds, 7.45% (FHA INS), 10/1/2010 NR 93,395
---------------------------------------------
20,000 New York State Mortgage Agency, Revenue
Refunding Bonds, 6.88% (MGIC INS), 4/1/2014 NR 20,040
---------------------------------------------
415,000 New York State, GO UT Refunding Bonds, 9.88%
(Original Issue Yield: 7.30%), 11/15/2005 A 559,652
---------------------------------------------
1,000,000 New York State, GO UT, 12.00% (Original Issue
Yield: 7.60%), 11/15/2003 A 1,363,330
---------------------------------------------
450,000 New York State, GO UT, 9.88% (Original Issue
Yield: 7.60%), 11/15/2004 A 589,194
---------------------------------------------
25,000 Newburgh, NY, GO UT, 6.40%, 4/15/2008 NR 29,331
---------------------------------------------
235,000 Niagara County, NY, GO UT Bonds (Series A),
5.25% (MBIA INS), 8/15/2012 AAA 250,331
---------------------------------------------
175,000 Niagara County, NY, GO UT, 7.10% (MBIA INS),
2/15/2010 AAA 218,685
---------------------------------------------
25,000 Niagara Falls, NY Bridge Commission, Series
B, 5.25% (FGIC INS)/(Original Issue Yield:
5.35%), 10/1/2015 AAA 26,607
---------------------------------------------
20,000 Niagara Frontier Transportation Authority,
Revenue Bonds, 6.00% (Greater Buffalo
International Airport)/(AMBAC INS)/(Original
Issue Yield: 6.15%), 4/1/2007/(AMT) AAA 22,032
---------------------------------------------
25,000 Niagara Wheatfield, NY Central School
District, School Improvements, 7.30%
(Original Issue Yield: 7.35%), 5/15/2007 NR 30,432
---------------------------------------------
50,000 North Tonawanda, NY, GO UT Bonds, 6.05% (FGIC
INS), 10/1/2006 AAA 57,098
---------------------------------------------
25,000 Nyack, NY Unified Free School District, GO
UT, 5.20% (AMBAC INS), 6/15/2004 AAA 26,776
---------------------------------------------
</TABLE>
VISION NEW YORK MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- --------------------------------------------- ------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPALS--CONTINUED
--------------------------------------------------------
NEW YORK--CONTINUED
---------------------------------------------
$ 400,000 Oneida, NY Health Care Corp. , Revenue Bonds
(Series A), 7.20% (FHA INS), 8/1/2031 A $ 433,568
---------------------------------------------
185,000 Onondaga County, NY IDA, Revenue Bonds, 6.63%
(Anheuser-Busch Cos., Inc.)/(Original Issue
Yield: 6.70%), 8/1/2006 A+ 213,973
---------------------------------------------
50,000 Ontario County, NY, GO UT, 5.50% (Original
Issue Yield: 5.65%), 5/15/2011 NR 55,589
---------------------------------------------
25,000 Orchard Park, NY Central School District, GO
UT, 6.50% (FGIC INS)/(Original Issue Yield:
6.25%), 6/1/2002 AAA 27,214
---------------------------------------------
25,000 Ossining Village, NY, 8.10% (FGIC INS),
7/15/2001 AAA 27,845
---------------------------------------------
40,000 Otsego County, NY, GO UT, 6.63% (AMBAC INS),
12/1/2005 AAA 46,704
---------------------------------------------
50,000 Penfield, NY Central School District, GO UT,
5.20% (Original Issue Yield: 5.40%),
6/15/2010 AAA 53,639
---------------------------------------------
25,000 Perry Central School District, NY, GO UT,
5.10% (MBIA INS), 6/15/2001 AAA 26,019
---------------------------------------------
100,000 Port Authority of New York and New Jersey,
Revenue Refunding Bonds, 7.13% (Original
Issue Yield: 7.28%), 6/1/2025 AA- 106,323
---------------------------------------------
25,000 Putnam County, NY, 7.10%, 8/15/2002 NR 28,086
---------------------------------------------
175,000 Riverton Housing Corp., Revenue Bonds, 6.65%
(FHA INS), 8/1/2024 AA 199,357
---------------------------------------------
15,000 Rochester, NY, GO UT, 6.00% (Original Issue
Yield: 6.40%), 8/1/2001 AA 15,928
---------------------------------------------
50,000 Rockland County, NY, GO UT, 7.00% (MBIA
INS)/(Original Issue Yield: 7.10%), 4/1/2008 AAA 61,168
---------------------------------------------
20,000 Saugerties, NY, GO UT, 5.38% (FSA
INS)/(Original Issue Yield: 5.70%), 6/15/2015 NR 21,580
---------------------------------------------
660,000 Schenectady, NY Municipal Housing Authority,
Revenue Bonds, 6.40% (Annie Schaffer Senior
Center, Inc.)/(Original Issue Yield: 6.40%),
5/1/2014 NR 704,814
---------------------------------------------
40,000 Silver Creek, NY Central School District, GO
UT, 6.60% (AMBAC INS)/(Original Issue Yield:
6.60%), 5/15/2005 AAA 46,194
---------------------------------------------
</TABLE>
VISION NEW YORK MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- --------------------------------------------- ------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPALS--CONTINUED
--------------------------------------------------------
NEW YORK--CONTINUED
---------------------------------------------
$ 10,000 Spackenkill, NY Unified Free School District,
GO UT, 6.13%, 9/15/2014 NR $ 11,636
---------------------------------------------
25,000 Spencerport, NY Central School District, GO
UT, 6.00% (MBIA INS)/(Original Issue Yield:
6.05%), 6/15/2006 AAA 28,354
---------------------------------------------
10,000 Springville, NY, GO UT Refunding Bonds,
7.90%, 8/1/2003 NR 11,661
---------------------------------------------
70,000 Sweet Home Central School District NY, GO UT,
5.60% (AMBAC INS)/(Original Issue Yield:
5.70%), 1/15/2008 AAA 78,180
---------------------------------------------
1,475,000 Syracuse, NY Senior Citizens Housing Corp.,
Series A, 6.13% (East Hill Village
Apartments), 11/1/2010 A- 1,584,666
---------------------------------------------
1,000,000 Tompkins County, NY IDA, Revenue Bonds, 6.05%
(Ithacare Center Project)/(FHA INS), 2/1/2017 AAA 1,088,120
---------------------------------------------
65,000 Tompkins County, NY, GO UT (Series B), 5.63%
(Original Issue Yield: 5.80%), 9/15/2013 NR 70,841
---------------------------------------------
290,000 Tompkins, NY Health Care Corp., 10.80% (FHA
INS), 2/1/2028 A 383,774
---------------------------------------------
200,000 Triborough Bridge & Tunnel Authority, NY,
Refunding Revenue Bonds, 6.75% (Original
Issue Yield: 6.82%), 1/1/2009 A+ 241,198
---------------------------------------------
3,000,000 Triborough Bridge & Tunnel Authority, NY,
Revenue Bonds, 5.20% (Original Issue Yield:
5.55%), 1/1/2022 A+ 3,043,590
---------------------------------------------
150,000 Triborough Bridge & Tunnel Authority, NY,
Special Obligation Revenue Bonds (Series A),
6.63% (MBIA INS)/(Original Issue Yield:
6.86%), 1/1/2017 AAA 161,255
---------------------------------------------
50,000 Union Endicott, NY Central School District,
GO UT (Series A), 5.50% (FSA INS)/(Original
Issue Yield: 5.55%), 7/15/2010 AAA 54,495
---------------------------------------------
50,000 Victor, NY Central Schol District, GO UT,
6.40% (FGIC INS)/(Original Issue Yield:
6.55%), 11/15/2006 AAA 58,388
---------------------------------------------
50,000 Victor, NY, 7.20% (Original Issue Yield:
7.20%), 12/15/2005 NR 59,222
---------------------------------------------
35,000 Wallkill, NY Central School District, GO UT,
5.75%, 7/15/2014 NR 39,318
---------------------------------------------
15,000 Warwick Valley, NY Central School District,
GO UT, 6.55% (FGIC INS)/(Original Issue
Yield: 6.70%), 6/1/2008 AAA 17,934
---------------------------------------------
</TABLE>
VISION NEW YORK MUNICIPAL INCOME FUND
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- --------------------------------------------- ------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPALS--CONTINUED
--------------------------------------------------------
NEW YORK--CONTINUED
---------------------------------------------
$ 30,000 Webster, NY Central School District, GO UT,
6.25% (AMBAC INS)/(Original Issue Yield:
6.20%), 6/15/2003 AAA $ 33,102
---------------------------------------------
50,000 West Seneca, NY Central School District, GO
UT, 5.63% (FGIC INS)/(Original Issue Yield:
5.70%), 6/15/2011 AAA 55,436
---------------------------------------------
25,000 West Seneca, NY, GO UT, 6.65% (MBIA
INS)/(Original Issue Yield: 6.80%), 6/1/2005 AAA 28,966
---------------------------------------------
25,000 Westchester County, NY, GO UT , 6.70%
(Original Issue Yield: 6.75%), 11/1/2007 AAA 30,093
---------------------------------------------
65,000 Williamsville, NY Central School District, GO
UT, 6.50% (MBIA INS)/(Original Issue Yield:
6.80%), 12/1/2010 AAA 78,469
--------------------------------------------- -----------
Total 45,922,396
--------------------------------------------- -----------
PUERTO RICO--3.2%
---------------------------------------------
165,000 (a) Puerto Rico Industrial, Medical &
Environmental PCA, Industrial Improvement
Revenue Bonds, 6.50% (Abbott Laboratories),
7/1/2009 NR 165,980
---------------------------------------------
25,000 Puerto Rico Industrial, Medical &
Environmental PCA, Revenue Bonds, 5.10%
(American Home Products Corp.)/(Original
Issue Yield: 5.30%), 12/1/2018 NR 24,797
---------------------------------------------
50,000 Puerto Rico Industrial, Medical &
Environmental PCA, Revenue Bonds, 7.50%
(Upjohn Co.), 12/1/2023 AA- 51,671
---------------------------------------------
1,200,000 (b) Puerto Rico Industrial, Medical &
Environmental PCA, Series A, 6.75% (Motorola,
Inc.), 1/1/2014 AA- 1,320,636
--------------------------------------------- -----------
Total 1,563,084
--------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST
$45,620,391)(C) $47,485,480
--------------------------------------------- -----------
</TABLE>
* Please refer to the Appendix of the Statement of Additional Information for
an explanation of the credit ratings. Current credit ratings are unaudited.
At October 31, 1998, 19.5% of the total investments at market value were
subject to alternative minimum tax.
(a) Denotes a private placement security. At October 31, 1998, these
securities amounted to $191,068 which represents 0.4% of total net assets.
VISION NEW YORK MUNICIPAL INCOME FUND
- -------------------------------------------------------------------------------
(b) Denotes a restricted security which is subject to restrictions on resale
under federal securities laws. At October 31, 1998, these securities
amounted to $1,320,636 which represents 2.7% of net assets.
(c) The cost of investments for federal tax purposes amounts to $45,620,391.
The net unrealized appreciation of investments on a federal tax basis
amounts to $1,865,089 which is comprised of $1,879,844 appreciation and
$14,755 depreciation at October 31, 1998.
Note: The categories of investments are shown as a percentage of net assets
($48,208,768) at October 31, 1998.
The following acronym(s) are used throughout this portfolio:
AMBAC--American Municipal Bond Assurance Corporation
AMT--Alternative Minimum Tax
COL--Collateralized
FGIC--Financial Guaranty Insurance Company
FHA--Federal Housing Administration
FSA--Financial Security Assurance
GO--General Obligation
HFA--Housing Finance Authority
HUD--Housing and Urban Development
IDA--Industrial Development Authority
INS--Insured
LOC--Letter of Credit
MBIA--Municipal Bond Investors Assurance
MGIC--Mortgage Guaranty Insurance Corporation
PCA--Pollution Control Authority
PRF--Prerefunded
UT--Unlimited Tax
VRDNs--Variable Rate Demand Notes
(See Notes which are an integral part of the Financial Statements)
VISION EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- --------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--93.0%
-------------------------------------------------
AEROSPACE & DEFENSE--2.0%
---------------------------------------
20,700 Allied-Signal, Inc. $ 806,006
--------------------------------------- -----------
AUTOS--5.3%
---------------------------------------
19,400 Ford Motor Co. 1,052,450
---------------------------------------
16,800 General Motors Corp. 1,059,450
--------------------------------------- -----------
Total 2,111,900
--------------------------------------- -----------
CHEMICALS--3.3%
---------------------------------------
15,300 Air Products & Chemicals, Inc. 577,575
---------------------------------------
7,700 Dow Chemical Co. 720,912
--------------------------------------- -----------
Total 1,298,487
--------------------------------------- -----------
CONSUMER CYCLICAL--2.5%
---------------------------------------
30,700 Carnival Corp., Class A 993,912
--------------------------------------- -----------
DIVERSIFIED--2.4%
---------------------------------------
10,800 General Electric Co. 945,000
--------------------------------------- -----------
ELECTRONIC EQUIPMENT--4.7%
---------------------------------------
19,400 Harris Corp. 680,212
---------------------------------------
21,900 Pitney Bowes, Inc. 1,205,869
--------------------------------------- -----------
Total 1,886,081
--------------------------------------- -----------
FINANCIAL SERVICES--12.7%
---------------------------------------
5,114 Associates First Capital Corp., Class A 360,537
---------------------------------------
8,700 Bankers Trust New York Corp. 546,469
---------------------------------------
18,400 Comerica, Inc. 1,186,800
---------------------------------------
16,900 Federal National Mortgage Association 1,196,731
---------------------------------------
26,000 Fleet Financial Group, Inc. 1,038,375
---------------------------------------
7,600 J.P. Morgan & Co., Inc. 716,300
--------------------------------------- -----------
Total 5,045,212
--------------------------------------- -----------
</TABLE>
VISION EQUITY INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- ---------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--CONTINUED
--------------------------------------------
INSURANCE--9.7%
----------------------------------
12,450 American International Group, Inc. $ 1,061,362
----------------------------------
2,300 General RE Corp. 505,281
----------------------------------
18,750 Jefferson-Pilot Corp. 1,139,062
----------------------------------
26,500 Reliastar Financial Corp. 1,161,031
---------------------------------- -----------
Total 3,866,736
---------------------------------- -----------
MANUFACTURING--7.9%
----------------------------------
15,100 Cooper Industries, Inc. 666,288
----------------------------------
27,600 Premark International, Inc. 874,575
----------------------------------
29,060 Sonoco Products Co. 824,577
----------------------------------
15,100 Whirlpool Corp. 773,875
---------------------------------- -----------
Total 3,139,315
---------------------------------- -----------
OIL--10.2%
----------------------------------
18,300 Ashland, Inc. 880,688
----------------------------------
9,900 Atlantic Richfield Co. 681,863
----------------------------------
10,900 Chevron Corp. 888,350
----------------------------------
10,700 Exxon Corp. 762,375
----------------------------------
11,400 Mobil Corp. 862,838
---------------------------------- -----------
Total 4,076,114
---------------------------------- -----------
PHARMACEUTICALS--2.6%
----------------------------------
7,700 Merck & Co., Inc. 1,041,425
---------------------------------- -----------
RAW MATERIALS--1.7%
----------------------------------
15,300 Union Camp Corp. 657,900
---------------------------------- -----------
RETAIL--3.7%
----------------------------------
12,600 Penney (J.C.) Co., Inc. 598,500
----------------------------------
21,300 V.F. Corp. 890,606
---------------------------------- -----------
Total 1,489,106
---------------------------------- -----------
SERVICES--2.4%
----------------------------------
10,700 McGraw-Hill Cos., Inc. 962,331
---------------------------------- -----------
</TABLE>
VISION EQUITY INCOME FUND
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
AMOUNT VALUE
---------- --------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--CONTINUED
--------------------------------------------------------------
TECHNOLOGY--1.5%
---------------------------------------------------
12,200 Avnet, Inc. $ 606,950
--------------------------------------------------- -----------
TELECOMMUNICATIONS--8.3%
---------------------------------------------------
21,400 AT&T Corp. 1,332,150
---------------------------------------------------
23,100 Bell Atlantic Corp. 1,227,188
---------------------------------------------------
13,000 GTE Corp. 762,938
--------------------------------------------------- -----------
Total 3,322,276
--------------------------------------------------- -----------
UTILITIES-ELECTRIC--12.1%
---------------------------------------------------
22,900 Carolina Power & Light Co. 1,050,538
---------------------------------------------------
35,250 DPL, Inc. 667,547
---------------------------------------------------
37,300 FirstEnergy Corp. 1,119,000
---------------------------------------------------
38,000 Houston Industries, Inc. 1,180,375
---------------------------------------------------
16,700 New Century Energies, Inc. 806,819
--------------------------------------------------- -----------
Total 4,824,279
--------------------------------------------------- -----------
TOTAL COMMON STOCKS (IDENTIFIED COST $36,493,673) 37,073,030
--------------------------------------------------- -----------
MUTUAL FUND SHARES--4.1%
--------------------------------------------------------------
20,028 SSGA US Government Money Market Fund, Series A 20,028
---------------------------------------------------
1,600,506 SSGA Money Market Fund 1,600,506
--------------------------------------------------- -----------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE) 1,620,534
--------------------------------------------------- -----------
COMMERCIAL PAPER--2.5%
--------------------------------------------------------------
$1,000,000 Associates Corp. of North America , 5.450%, 11/4/98
(AT AMORTIZED COST) 1,000,000
--------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST $39,114,207)(A) $39,693,564
--------------------------------------------------- -----------
</TABLE>
(a) The cost of investments for federal tax purposes amounts to $39,114,207.
The net unrealized appreciation of investments on a federal tax basis
amounts to $579,357 which is comprised of $2,959,686 appreciation and
$2,380,329 depreciation at October 31, 1998.
Note: The categories of investments are shown as a percentage of net assets
($39,870,402) at October 31, 1998.
(See Notes which are an integral part of the Financial Statements)
VISION GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- --------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--95.3%
-------------------------------------------------
AUTOS--3.5%
---------------------------------------
74,775 Borg-Warner Automotive, Inc. $ 3,505,078
--------------------------------------- -----------
CHEMICALS--0.7%
---------------------------------------
26,700 Lubrizol Corp. 744,263
--------------------------------------- -----------
CONSUMER CYCLICAL--3.3%
---------------------------------------
66,375 Tandy Corp. 3,289,711
--------------------------------------- -----------
CONSUMER NON-CYCLICAL-3.9%
---------------------------------------
411,650 (a)Sunterra Corp. 3,910,675
--------------------------------------- -----------
ELECTRICAL EQUIPMENT--3.8%
---------------------------------------
82,350 (a)Jabil Circuit, Inc. 3,813,834
--------------------------------------- -----------
ELECTRONIC EQUIPMENT--5.8%
---------------------------------------
279,700 (a)CHS Electronics, Inc. 2,727,075
---------------------------------------
206,900 (a)Vishay Intertechnology, Inc. 3,129,363
--------------------------------------- -----------
Total 5,856,438
--------------------------------------- -----------
ELECTRONIC TECHNOLOGY--2.3%
---------------------------------------
150,450 (a)LSI Logic Corp. 2,275,556
--------------------------------------- -----------
ENERGY--7.5%
---------------------------------------
148,050 Baker Hughes, Inc. 3,266,353
---------------------------------------
113,650 (a)Nabors Industries, Inc. 2,102,525
---------------------------------------
44,325 New Century Energies, Inc. 2,141,452
--------------------------------------- -----------
Total 7,510,330
--------------------------------------- -----------
FINANCE--2.7%
---------------------------------------
74,150 BankBoston Corp. 2,729,647
--------------------------------------- -----------
FINANCIAL SERVICES--14.4%
---------------------------------------
41,550 Bankers Trust New York Corp. 2,609,859
---------------------------------------
52,450 Hartford Financial Services Group, Inc. 2,786,406
---------------------------------------
</TABLE>
VISION GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- ---------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--CONTINUED
--------------------------------------------------
FINANCIAL SERVICES--CONTINUED
----------------------------------------
5,200 INMC Mortgage Holdings, Inc. $ 56,875
----------------------------------------
75,200 PaineWebber Group, Inc. 2,514,500
----------------------------------------
223,450 Reliance Group Holdings, Inc. 3,114,334
----------------------------------------
78,575 Reliastar Financial Corp. 3,442,567
---------------------------------------- -----------
Total 14,524,541
---------------------------------------- -----------
HEALTHCARE--7.7%
----------------------------------------
195,004 (a)Healthsouth Corp. 2,364,424
----------------------------------------
247,450 (a)Genesis Health Ventures, Inc. 3,340,575
----------------------------------------
72,600 Mallinckrodt, Inc. 2,069,100
---------------------------------------- -----------
Total 7,774,099
---------------------------------------- -----------
INSURANCE--2.3%
----------------------------------------
123,300 Old Republic International Corp. 2,342,700
---------------------------------------- -----------
PAPER--5.6%
----------------------------------------
72,900 Bowater, Inc. 2,975,231
----------------------------------------
66,900 Fort James Corp. 2,696,906
---------------------------------------- -----------
Total 5,672,137
---------------------------------------- -----------
RETAIL--5.4%
----------------------------------------
37,000 (a)Corporate Express, Inc. 432,438
----------------------------------------
185,200 (a)General Nutrition Cos., Inc. 2,696,975
----------------------------------------
257,900 (a)Officemax, Inc. 2,353,338
---------------------------------------- -----------
Total 5,482,751
---------------------------------------- -----------
SERVICES--8.9%
----------------------------------------
239,075 Hollinger International Publishing, Inc. 3,107,975
----------------------------------------
190,000 (a)Modis Professional Services, Inc. 3,348,749
----------------------------------------
9,400 Spieker Properties, Inc. 324,300
----------------------------------------
134,675 U.S. Industries, Inc. 2,196,886
---------------------------------------- -----------
Total 8,977,910
---------------------------------------- -----------
</TABLE>
VISION GROWTH AND INCOME FUND
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- -------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--CONTINUED
------------------------------------------------------------
STEEL--4.0%
--------------------------------------------------
226,000 Pohang Iron and Steel Co. Ltd., ADR $ 4,068,000
-------------------------------------------------- -----------
TECHNOLOGY--13.5%
--------------------------------------------------
46,331 (a)Cisco Systems, Inc. 2,918,822
--------------------------------------------------
149,700 (a)Oracle Corp. 4,425,506
--------------------------------------------------
52,200 (a)Sanmina Corp. 2,140,200
--------------------------------------------------
70,200 (a)Sun Microsystems, Inc. 4,089,150
-------------------------------------------------- -----------
Total 13,573,678
-------------------------------------------------- -----------
TOTAL COMMON STOCKS (IDENTIFIED COST $95,446,998) 96,051,348
-------------------------------------------------- -----------
MUTUAL FUND SHARES--2.4%
--------------------------------------------------
718 SSGA US Government Money Market Fund, Series A 718
--------------------------------------------------
2,368,354 SSGA Money Market Fund 2,368,354
-------------------------------------------------- -----------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE) 2,369,072
-------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST $97,816,070)(B) $98,420,420
-------------------------------------------------- -----------
</TABLE>
(a) Non-income producing security.
(b) The cost of investments for federal tax purposes amounts to $97,816,070.
The net unrealized appreciation of investments on a federal tax basis
amounts to $604,350 which is comprised of $13,038,436 appreciation and
$12,434,086 depreciation at October 31, 1998.
Note: The categories of investments are shown as a percentage of net assets
($100,742,604) at October 31, 1998.
The following acronym(s) are used throughout this portfolio:
ADR--American Depository Receipt
(See Notes which are an integral part of the Financial Statements)
VISION CAPITAL APPRECIATION FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- ---------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--86.3%
--------------------------------------------
CAPITAL EQUIPMENT & SERVICES--2.8%
----------------------------------
42,700 (a)Jacobs Engineering Group, Inc. $ 1,393,087
---------------------------------- -----------
CONSUMER CYCLICAL--2.2%
----------------------------------
78,500 (a)CompUSA, Inc. 1,089,187
---------------------------------- -----------
CONSTRUCTION SERVICES--3.3%
----------------------------------
68,100 (a)Mastec, Inc. 1,621,631
---------------------------------- -----------
CONSUMER DURABLES--2.6%
----------------------------------
25,600 Maytag Corp. 1,265,600
---------------------------------- -----------
CONSUMER NON-DURABLES--10.5%
----------------------------------
79,050 Flowers Industries, Inc. 1,620,525
----------------------------------
143,500 Food Lion, Inc., Class A 1,578,500
----------------------------------
55,350 (a)Nautica Enterprise, Inc. 1,145,053
----------------------------------
37,600 (a)Twinlab Corp. 834,250
---------------------------------- -----------
Total 5,178,328
---------------------------------- -----------
ELECTRONIC TECHNOLOGY--5.3%
----------------------------------
57,700 (a)Photronic Labs, Inc. 1,258,581
----------------------------------
55,400 (a)VWR Scientific Products Corp. 1,346,913
---------------------------------- -----------
Total 2,605,494
---------------------------------- -----------
ENERGY--4.9%
----------------------------------
41,600 Diamond Offshore Drilling, Inc. 1,276,600
----------------------------------
41,400 Tosco Corp. 1,161,787
---------------------------------- -----------
Total 2,438,387
---------------------------------- -----------
FINANCIAL SERVICES--12.0%
----------------------------------
56,900 Amsouth Bancorporation 2,279,556
----------------------------------
61,600 (a)Golden State Bancorp, Inc. 1,181,950
----------------------------------
</TABLE>
VISION CAPITAL APPRECIATION FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- ------------------------------------ -----------
<C> <S> <C>
COMMON STOCKS--CONTINUED
----------------------------------------------
FINANCIAL SERVICES--CONTINUED
------------------------------------
39,300 PaineWebber Group, Inc. $ 1,314,094
------------------------------------
82,300 Reliance Group Holdings, Inc. 1,147,056
------------------------------------ -----------
Total 5,922,656
------------------------------------ -----------
HEALTHCARE--9.3%
------------------------------------
30,600 (a)Barr Laboratories, Inc. 1,046,138
------------------------------------
20,100 Bergen Brunswig Corp., Class A 981,131
------------------------------------
57,200 (a)Total Renal Care Holdings, Inc. 1,401,400
------------------------------------
21,900 (a)Watson Pharmaceuticals, Inc. 1,218,187
------------------------------------ -----------
Total 4,646,856
------------------------------------ -----------
PRODUCER MANUFACTURING--2.0%
------------------------------------
46,800 (a)U.S. Filter Corp. 991,575
------------------------------------ -----------
RETAIL TRADE--9.6%
------------------------------------
33,600 (a)Borders Group, Inc. 852,600
------------------------------------
27,100 Lowe's Cos., Inc. 912,931
------------------------------------
31,300 Ross Stores, Inc. 1,017,250
------------------------------------
60,600 (a)Staples, Inc. 1,977,075
------------------------------------ -----------
Total 4,759,856
------------------------------------ -----------
SERVICES--7.8%
------------------------------------
46,600 Computer Task Group, Inc. 1,427,125
------------------------------------
80,900 (a)Modis Professional Services, Inc. 1,425,863
------------------------------------
35,700 Royal Caribbean Cruises, Ltd. 995,138
------------------------------------ -----------
Total 3,848,126
------------------------------------ -----------
TECHNOLOGY--11.5%
------------------------------------
27,900 (a)3Com Corp. 1,006,144
------------------------------------
36,000 (a)ADC Telecommunications, Inc. 828,000
------------------------------------
73,800 (a)Apex PC Solutions, Inc. 1,928,025
------------------------------------
27,300 (a)Lexmark Intl. Group, Class A 1,909,294
------------------------------------ -----------
Total 5,671,463
------------------------------------ -----------
</TABLE>
VISION CAPITAL APPRECIATION FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
AMOUNT VALUE
---------- ----------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--CONTINUED
----------------------------------------------------------------
TRANSPORTATION--2.5%
-----------------------------------------------------
37,700 Comair Holdings, Inc. $ 1,239,388
----------------------------------------------------- -----------
TOTAL COMMON STOCKS (IDENTIFIED COST $43,898,583) 42,671,634
----------------------------------------------------- -----------
WARRANTS--2.2%
----------------------------------------------------------------
226,600 Golden State Bancorp, Inc., Exp. TBA (IDENTIFIED COST
$954,512) 1,104,675
----------------------------------------------------- -----------
COMMERCIAL PAPER--6.1%
----------------------------------------------------------------
$1,500,000 Commercial Credit Co., 4.950%, 11/2/98 1,500,000
-----------------------------------------------------
1,500,000 General Electric Capital Corp., 4.900%, 11/2/98 1,500,000
----------------------------------------------------- -----------
TOTAL COMMERCIAL PAPER (AT AMORTIZED COST) 3,000,000
----------------------------------------------------- -----------
MUTUAL FUND SHARES--6.5%
----------------------------------------------------------------
1,037,208 SSGA US Government Money Market Fund, Series A 1,037,208
-----------------------------------------------------
2,185,700 SSGA Money Market Fund 2,185,700
----------------------------------------------------- -----------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE) 3,222,908
----------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST $51,076,003)(B) $49,999,217
----------------------------------------------------- -----------
</TABLE>
(a)Non-income producing security.
(b)The cost of investments for federal tax purposes amounts to $51,076,003. The
net unrealized depreciation of investments on a federal tax basis amounts to
$(1,076,786) which is comprised of $4,334,831 appreciation and $5,411,617
depreciation at October 31, 1998.
Note: The categories of investments are shown as a percentage of net assets
($49,463,958) at October 31, 1998.
(See Notes which are an integral part of the Financial Statements)
VISION EQUITY AND INCOME FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S.
GOVERNMENT NEW YORK EQUITY GROWTH AND CAPITAL
SECURITIES MUNICIPAL INCOME INCOME APPRECIATION
FUND INCOME FUND FUND FUND FUND
- ------------------------ ----------- ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
- ------------------------
Investments in securi-
ties, at value $60,915,069 $47,485,480 $39,693,564 $98,420,420 $49,999,217
- ------------------------ ----------- ----------- ----------- ------------ -----------
Cash -- 3,369 -- -- --
- ------------------------
Income receivable 1,174,107 835,455 71,223 81,333 20,095
- ------------------------
Receivable for shares
sold 134,604 63,932 1,128,151 187,909 113,527
- ------------------------
Receivable for invest-
ments sold 3,345,109 -- -- 2,783,566 538,532
- ------------------------
Deferred organizational
costs -- -- 192 -- 10,465
- ------------------------
Other assets -- 50 -- -- --
- ------------------------ ----------- ----------- ----------- ------------ -----------
Total assets 65,568,889 48,388,286 40,893,130 101,473,228 50,681,836
- ------------------------ ----------- ----------- ----------- ------------ -----------
LIABILITIES:
- ------------------------
Income distribution pay-
able 307,249 170,734 203 70 --
- ------------------------
Payable for investments
purchased 3,443,998 -- -- 489,613 1,109,020
- ------------------------
Payable to Bank -- -- 998,500 222,891 105,387
- ------------------------
Payable for shares re-
deemed -- -- -- 2,500 --
- ------------------------
Accrued expenses 14,718 8,784 24,025 15,550 3,471
- ------------------------ ----------- ----------- ----------- ------------ -----------
Total liabilities 3,765,965 179,518 1,022,728 730,624 1,217,878
- ------------------------ ----------- ----------- ----------- ------------ -----------
NET ASSETS $61,802,924 $48,208,768 $39,870,402 $100,742,604 $49,463,958
- ------------------------ ----------- ----------- ----------- ------------ -----------
NET ASSETS CONSISTS OF:
- ------------------------
Paid in capital $60,213,247 $45,926,059 $39,485,732 $100,312,570 $53,072,629
- ------------------------
Net unrealized apprecia-
tion (depreciation)
of investments 1,528,398 1,865,089 579,357 604,350 (1,076,786)
- ------------------------
Accumulated net realized
gain (loss) on invest-
ments 112,377 417,620 (262,198) (183,109) (2,349,558)
- ------------------------
Accumulated undistrib-
uted net investment in-
come/ (Distributions in
excess of net investment
income) (51,098) -- 67,511 8,793 (182,327)
- ------------------------ ----------- ----------- ----------- ------------ -----------
Total Net Assets $61,802,924 $48,208,768 $39,870,402 $100,742,604 $49,463,958
- ------------------------ ----------- ----------- ----------- ------------ -----------
NET ASSET VALUE, Offer-
ing Price and Redemption
Proceeds Per Share:
- ------------------------
Net Asset Value and Re-
demption Proceeds
Per Share $9.81 $10.68 $10.76 $12.37 $11.05
- ------------------------ ----------- ----------- ----------- ------------ -----------
Offering Price Per
Share* $10.27** $11.18** $11.39*** $13.09*** $11.69***
- ------------------------ ----------- ----------- ----------- ------------ -----------
SHARES OUTSTANDING: 6,297,489 4,515,631 3,704,661 8,142,475 4,474,502
- ------------------------ ----------- ----------- ----------- ------------ -----------
Investments, at identi-
fied cost $59,386,671 $45,620,391 $39,114,207 $97,816,070 $51,076,003
- ------------------------ ----------- ----------- ----------- ------------ -----------
Investments, at tax cost $59,386,671 $45,620,391 $39,114,207 $97,816,070 $51,076,003
- ------------------------ ----------- ----------- ----------- ------------ -----------
</TABLE>
*See "What Fund Shares Cost" in the Prospectus.
**Computation of offering price per share 100/95.5 of net asset value.
***Computation of offering price per share 100/94.5 of net asset value.
(See Notes which are an integral part of the Financial Statements)
VISION EQUITY AND INCOME FUNDS
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT NEW YORK EQUITY GROWTH AND CAPITAL
SECURITIES MUNICIPAL INCOME INCOME APPRECIATION
FUND INCOME FUND FUND FUND FUND
- ------------------------ --------------- ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
- ------------------------
Dividends $ -- $ -- $ 450,193 $ 778,593 $ 116,498
- ------------------------
Interest 2,041,778 1,199,461 51,666 63,680 93,878
- ------------------------ ---------- ---------- ----------- ------------ ------------
TOTAL INVESTMENT
INCOME 2,041,778 1,199,461 501,859 842,273 210,376
- ------------------------
EXPENSES:
- ------------------------
Investment advisory fee 205,061 162,047 129,102 411,079 240,533
- ------------------------
Administrative personnel
and services fee 38,915 30,758 24,515 78,135 37,654
- ------------------------
Custodian fees 4,524 231 3,482 2,192 3,170
- ------------------------
Transfer and dividend
disbursing agent fees
and expenses 2,504 7,697 1,953 26,152 10,256
- ------------------------
Directors' fees 835 220 174 2,192 869
- ------------------------
Auditing fees 5,007 6,380 9,227 5,481 2,798
- ------------------------
Legal fees 1,391 1,329 2,089 1,096 1,677
- ------------------------
Portfolio accounting
fees 2,503 231 -- 548 283
- ------------------------
Shareholder services
fees -- -- -- 146,814 70,745
- ------------------------
Share registration costs 9,623 11,640 10,794 10,962 8,626
- ------------------------
Printing and postage 5,007 5,282 3,656 4,933 7,632
- ------------------------
Taxes 2,781 890 1,218 4,933 1,333
- ------------------------
Insurance premiums 556 890 870 1,096 283
- ------------------------
Miscellaneous 3,894 6,831 57 9,865 6,844
- ------------------------ ---------- ---------- ----------- ------------ ------------
TOTAL EXPENSES 282,601 234,426 187,137 705,478 392,703
- ------------------------ ---------- ---------- ----------- ------------ ------------
WAIVERS--
- ------------------------
Waiver of investment ad-
visory fee (13,908) (43,916) -- -- --
- ------------------------ ---------- ---------- ----------- ------------ ------------
TOTAL WAIVERS (13,908) (43,916) -- -- --
- ------------------------ ---------- ---------- ----------- ------------ ------------
NET EXPENSES 268,693 190,510 187,137 705,478 392,703
- ------------------------ ---------- ---------- ----------- ------------ ------------
NET INVESTMENT
INCOME/
(NET OPERATING LOSS) $1,773,085 $1,008,951 $ 314,722 $ 136,795 $ (182,327)
- ------------------------ ---------- ---------- ----------- ------------ ------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVEST-
MENTS:
- ------------------------
Net realized gain (loss)
on investments 798,490 337,443 (297,631) (7,978,215) (4,009,088)
- ------------------------
Net change in unrealized
appreciation
(depreciation) of in-
vestments 431,850 750,362 (1,941,353) (24,846,489) (12,835,770)
- ------------------------ ---------- ---------- ----------- ------------ ------------
Net realized and
unrealized gain (loss)
on investments 1,230,340 1,087,805 (2,238,984) (32,824,704) (16,844,858)
- ------------------------ ---------- ---------- ----------- ------------ ------------
Change in net assets
resulting from opera-
tions $3,003,425 $2,096,756 $(1,924,262) $(32,687,909) $(17,027,185)
- ------------------------ ---------- ---------- ----------- ------------ ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
VISION EQUITY AND INCOME FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT NEW YORK MUNICIPAL
SECURITIES FUND INCOME FUND
<S> <C> <C> <C> <C> <C>
------------------------ ------------------------
<CAPTION>
SIX MONTHS SIX MONTHS
ENDED ENDED
OCTOBER 31, YEAR ENDED OCTOBER 31, YEAR ENDED
1998 APRIL 30, 1998 APRIL 30,
(UNAUDITED) 1998 (UNAUDITED) 1998
<S> <C> <C> <C> <C> <C>
- ------------------------------- ----------- ----------- ----------- -----------
<CAPTION>
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS:
- -------------------------------
OPERATIONS--
- -------------------------------
Net investment income $ 1,773,085 $ 3,407,651 $ 1,008,951 $ 1,733,125
- -------------------------------
Net realized gain in
investments 798,490 335,832 337,443 400,518
- -------------------------------
Net change in unrealized
appreciation of investments 431,850 1,401,949 750,362 919,002
- ------------------------------- ----------- ----------- ----------- ----------- ---
Change in net assets
resulting from operations 3,003,425 5,145,432 2,096,756 3,052,645
- ------------------------------- ----------- ----------- ----------- ----------- ---
DISTRIBUTIONS TO SHAREHOLDERS--
- -------------------------------
Distributions from net
investment income (1,773,085) (3,407,651) (1,008,951) (1,735,765)
- -------------------------------
Distributions in excess of net
investment income -- (75,412)(a) -- --
- -------------------------------
Distributions from net
realized gains -- -- -- (150,071)
- ------------------------------- ----------- ----------- ----------- ----------- ---
Change in net assets
resulting from
distributions to shareholders (1,773,085) (3,483,063) (1,008,951) (1,885,836)
- ------------------------------- ----------- ----------- ----------- ----------- ---
SHARE TRANSACTIONS--
- -------------------------------
Proceeds from sales of shares 14,094,550 23,612,425 6,195,433 11,968,960
- -------------------------------
Net asset value of shares
issued to shareholders
in payment of distributions
declared 796,634 1,983,653 698,118 1,370,147
- -------------------------------
Cost of shares redeemed (8,240,428) (17,821,660) (3,228,265) (6,530,024)
- ------------------------------- ----------- ----------- ----------- ----------- ---
Change in net assets
resulting from share
transactions 6,650,756 7,774,418 3,665,286 6,809,083
- ------------------------------- ----------- ----------- ----------- ----------- ---
Change in net assets 7,881,096 9,436,787 4,753,091 7,975,892
- -------------------------------
NET ASSETS:
- -------------------------------
Beginning of period 53,921,828 44,485,041 43,455,677 35,479,785
- ------------------------------- ----------- ----------- ----------- -----------
End of period $61,802,924 $53,921,828 $48,208,768 $43,455,677
- ------------------------------- ----------- ----------- ----------- -----------
Net gain as computed for
federal tax purposes $ 798,490 $ 474,215 $ 337,433 $ 400,518
- ------------------------------- ----------- ----------- ----------- -----------
</TABLE>
(a) Distributions are in accordance with income tax regulations which may
differ from generally accepted accounting principles. These distributions
do not represent a return of capital for federal tax purposes.
(See Notes which are an integral part of the Financial Statements)
VISION EQUITY AND INCOME FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY INCOME GROWTH AND INCOME
FUND FUND
<S> <C> <C> <C> <C> <C>
------------------------ --------------------------
<CAPTION>
SIX MONTHS SIX MONTHS
ENDED ENDED
OCTOBER 31, PERIOD OCTOBER 31, YEAR ENDED
1998 ENDED APRIL 1998 APRIL 30,
(UNAUDITED) 30, 1998(A) (UNAUDITED) 1998
<S> <C> <C> <C> <C> <C>
- ------------------------------- ----------- ----------- ------------ ------------
INCREASE (DECREASE) IN NET
ASSETS:
- -------------------------------
OPERATIONS--
- -------------------------------
Net investment income $ 314,722 $ 169,441 $ 136,795 $ 902,367
- -------------------------------
Net realized gain (loss) in
investments (297,631) 35,433 (7,978,215) 13,984,928
- -------------------------------
Net change in unrealized
appreciation
(depreciation) of investments (1,941,353) 2,520,710 (24,846,489) 21,896,866
- ------------------------------- ----------- ----------- ------------ ------------ ---
Change in net assets
resulting from operations (1,924,262) 2,725,584 (32,687,909) 36,784,161
- ------------------------------- ----------- ----------- ------------ ------------ ---
DISTRIBUTIONS TO SHAREHOLDERS--
- -------------------------------
Distributions from net
investment income (276,239) (140,413) (382,519) (757,244)
- -------------------------------
Distributions from net
realized gains -- -- -- (24,819,846)
- ------------------------------- ----------- ----------- ------------ ------------ ---
Change in net assets
resulting from
distributions to shareholders (276,239) (140,413) (382,519) (25,577,090)
- ------------------------------- ----------- ----------- ------------ ------------ ---
SHARE TRANSACTIONS--
- -------------------------------
Proceeds from sales of shares 23,175,102 35,322,334 10,788,067 42,968,234
- -------------------------------
Net asset value of shares
issued to shareholders
in payment of distributions
declared 138,662 90,671 312,153 19,837,767
- -------------------------------
Cost of shares redeemed (18,645,786) (595,251) (20,691,255) (44,699,312)
- ------------------------------- ----------- ----------- ------------ ------------ ---
Change in net assets
resulting from share
transactions 4,667,978 34,817,754 (9,591,035) 18,106,689
- ------------------------------- ----------- ----------- ------------ ------------ ---
Change in net assets 2,467,477 37,402,925 (42,661,463) 29,313,760
- -------------------------------
NET ASSETS:
- -------------------------------
Beginning of period 37,402,925 $ -- 143,404,067 114,090,307
- ------------------------------- ----------- ----------- ------------ ------------
End of period $39,870,402 $37,402,925 $100,742,604 $143,404,067
- ------------------------------- ----------- ----------- ------------ ------------
Undistributed net investment
income included
in net assets at end of period $ 67,511 $ 29,028 $ 8,793 $ 254,517
- ------------------------------- ----------- ----------- ------------ ------------
Net gain (loss) as computed
for federal tax purposes $ (297,631) $ 35,433 $ (7,978,215) $ 14,013,086
- ------------------------------- ----------- ----------- ------------ ------------
</TABLE>
(a) For the period from September 26, 1997 (date of initial public investment)
to April 30, 1998.
(See Notes which are an integral part of the Financial Statements)
VISION EQUITY AND INCOME FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITAL APPRECIATION
FUND
<S> <C> <C> <C>
-------------------------
<CAPTION>
SIX MONTHS
ENDED
OCTOBER 31, YEAR ENDED
1998 APRIL 30,
(UNAUDITED) 1998
<S> <C> <C> <C>
- ------------------------------------------------ ------------ -----------
INCREASE (DECREASE) IN NET ASSETS:
- ------------------------------------------------
OPERATIONS--
- ------------------------------------------------
Net operating loss $ (182,327) $ (340,531)
- ------------------------------------------------
Net realized gain (loss) in investments (4,009,088) 4,792,594
- ------------------------------------------------
Net change in unrealized appreciation
(depreciation) of investments (12,835,770) 11,433,260
- ------------------------------------------------ ------------ ----------- ---
Change in net assets resulting from operations (17,027,185) 15,885,323
- ------------------------------------------------ ------------ ----------- ---
DISTRIBUTIONS TO SHAREHOLDERS--
- ------------------------------------------------
Distributions from net realized gains -- (3,397,390)
- ------------------------------------------------ ------------ ----------- ---
Change in net assets resulting from
distributions to shareholders -- (3,397,390)
- ------------------------------------------------ ------------ ----------- ---
SHARE TRANSACTIONS--
- ------------------------------------------------
Proceeds from sales of shares 13,325,175 33,555,464
- ------------------------------------------------
Net asset value of shares issued to
shareholders
in payment of distributions declared 120 2,836,886
- ------------------------------------------------
Cost of shares redeemed (21,928,766) (7,226,185)
- ------------------------------------------------ ------------ ----------- ---
Change in net assets resulting from share
transactions (8,603,471) 29,166,165
- ------------------------------------------------ ------------ ----------- ---
Change in net assets (25,630,656) 41,654,098
- ------------------------------------------------
NET ASSETS:
- ------------------------------------------------
Beginning of period 75,094,614 33,440,516
- ------------------------------------------------ ------------ -----------
End of period $ 49,463,958 $75,094,614
- ------------------------------------------------ ------------ -----------
Net gain (loss) as computed for federal tax
purposes $ (4,009,088) $ 4,795,280
- ------------------------------------------------ ------------ -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
[This Page Intentionally Left Blank]
VISION EQUITY AND INCOME FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
NET NET REALIZED DISTRIBUTIONS
NET ASSET INVESTMENT AND DISTRIBUTIONS IN EXCESS OF DISTRIBUTIONS
YEAR VALUE, INCOME UNREALIZED TOTAL FROM FROM NET NET FROM NET
ENDED BEGINNING (OPERATING GAIN (LOSS) ON INVESTMENT INVESTMENT INVESTMENT REALIZED TOTAL
APRIL 30, OF PERIOD LOSS) INVESTMENTS OPERATIONS INCOME INCOME GAINS DISTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. GOVERNMENT SECURITIES
FUND
1994(a) $10.00 0.34 (0.75) (0.41) (0.34) -- -- (0.34)
1995 $ 9.25 0.56 (0.16) 0.40 (0.56) -- -- (0.56)
1996 $ 9.09 0.52 0.22 0.74 (0.52) -- -- (0.52)
1997 $ 9.31 0.58 (0.03) 0.55 (0.58) -- -- (0.58)
1998 $ 9.28 0.60 0.34 0.94 (0.60) (0.01)(i) -- (0.61)
1998(j) $ 9.61 0.30 0.20 0.50 (0.30) -- -- (0.30)
NEW YORK MUNICIPAL INCOME FUND
1994(a) $10.00 0.20 (0.39) (0.19) (0.20) -- -- (0.20)
1995 $ 9.61 0.46 0.06 0.52 (0.46) -- -- (0.46)
1996 $ 9.67 0.46 0.23 0.69 (0.46) -- -- (0.46)
1997 $ 9.90 0.48 0.18 0.66 (0.48) -- -- (0.48)
1998 $10.08 0.46 0.38 0.84 (0.46) -- (0.04) (0.50)
1998(j) $10.42 0.23 0.26 0.49 (0.23) -- -- (0.23)
EQUITY INCOME FUND
1998(g) $ 9.99 0.08 1.47 1.55 (0.07) -- -- (0.07)
1998(j) $11.47 0.09 (0.72) (0.63) (0.08) -- -- (0.08)
GROWTH AND INCOME FUND
1994(e) $10.00 0.07 (0.08) (0.01) (0.06) -- -- (0.06)
1995 $ 9.93 0.21 0.43 0.64 (0.22) -- -- (0.22)
1996 $10.35 0.13 2.98 3.11 (0.11) -- -- (0.11)
1997 $13.35 0.13 2.35 2.48 (0.13) -- (0.59) (0.72)
1998 $15.11 0.11 4.34 4.45 (0.09) -- (3.34) (3.43)
1998(j) $16.13 0.02 (3.73) (3.71) (0.05) -- -- (0.05)
CAPITAL APPRECIATION FUND
1997(f) $10.00 0.02(h) 1.35 1.37 (0.02) (0.03)(i) (0.06) (0.11)
1998 $11.26 (0.07) 4.44 4.37 -- -- (0.86) (0.86)
1998(j) $14.77 (0.05) (3.67) (3.72) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Reflects operations for the period from September 22, 1993 (date of initial
public investment) to April 30, 1994.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(e) Reflects operations for the period from November 29, 1993 (date of initial
public investment) to April 30, 1994.
(f) Reflects operations for the period from July 3, 1996 (date of initial
public investment) to April 30, 1997.
(g) Reflects operations for the period from September 26, 1997 (date of initial
public investment) to April 30, 1998.
(h) Per share information presented is based upon the monthly average number of
shares outstanding due to large fluctuations in the number of shares
outstanding during the period.
(i) Distributions are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles. These
distributions do not represent a return of capital for federal tax
purposes.
(j) For the six-months ended October 31, 1998 (unaudited).
(See Notes which are an integral part of the Financial Statements)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
-----------------------------------------
NET
INVESTMENT NET ASSETS
NET ASSET INCOME EXPENSE END
VALUE, END TOTAL (OPERATING WAIVER/ OF PERIOD PORTFOLIO
OF PERIOD RETURN(B) EXPENSES LOSS) REIMBURSEMENT(D) (000 OMITTED) TURNOVER
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 9.25 (4.23%) 0.00%(c) 6.11%(c) 1.86%(c) $ 24,468 320%
$ 9.09 4.59% 0.43% 6.20% 1.01% $ 29,573 78%
$ 9.31 8.10% 1.16% 5.41% 0.17% $ 34,492 132%
$ 9.28 6.05% 1.11% 6.23% 0.20% $ 44,485 121%
$ 9.61 10.42% 1.03% 6.30% 0.09% $ 53,922 70%
$ 9.81 5.23% 0.92%(c) 6.05%(c) 0.05%(c) $ 61,803 33%
$ 9.61 (1.22%) 0.00%(c) 4.79%(c) 1.78%(c) $ 25,225 21%
$ 9.67 5.58% 0.40% 4.80% 1.12% $ 27,346 51%
$ 9.90 7.18% 1.04% 4.60% 0.34% $ 32,621 113%
$10.08 6.76% 1.01% 4.74% 0.38% $ 35,480 79%
$10.42 8.37% 0.96% 4.35% 0.31% $ 43,456 45%
$10.68 4.76% 0.82%(c) 4.36%(c) 0.19%(c) $ 48,209 28%
$11.47 15.51% 1.08%(c) 1.41%(c) 0.52%(c) $ 37,403 11%
$10.76 (5.45%) 1.01%(c) 1.71%(c) -- $ 39,870 23%
$ 9.93 (0.12%) 0.00%(c) 2.24%(c) 2.15%(c) $ 22,944 27%
$10.35 6.61% 0.47% 2.16% 0.96% $ 39,358 79%
$13.35 30.18% 1.16% 1.09% -- $ 65,119 77%
$15.11 18.61% 1.14% 0.87% -- $114,090 134%
$16.13 31.40% 1.21% 0.65% -- $143,404 88%
$12.37 (23.04%) 1.20%(c) 0.23%(c) -- $100,743 84%
$11.26 13.97% 0.88%(c) 0.18%(c) 0.96%(c) $ 33,440 41%
$14.77 40.07% 1.50% (0.64%) 0.01% $ 75,095 86%
$11.05 (25.19%) 1.39%(c) (0.64%)(c) -- $ 49,464 55%
- ----------------------------------------------------------------------------------------
</TABLE>
VISION EQUITY AND INCOME FUNDS
COMBINED NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1998 (UNAUDITED)
- -------------------------------------------------------------------------------
(1) ORGANIZATION
Vision Group of Funds, Inc. (the "Corporation") is registered under the In-
vestment Company Act of 1940, as amended (the "Act"), as an open-end manage-
ment investment company. The Corporation consists of eight portfolios (indi-
vidually referred to as the "Fund", or collectively as the "Funds"). The
following Funds are presented herein:
<TABLE>
<CAPTION>
PORTFOLIO NAME INVESTMENT OBJECTIVE
- -------------------------------------------------------------------------------------
<C> <S>
Vision U.S. Government Securities Fund Current income by investing primarily in
("U.S. Government Securities Fund") (d) securities that are guaranteed for
payment of principal and interest by the
U.S. Government, its agencies or
instrumentalities. Capital appreciation
is a secondary investment consideration.
- -------------------------------------------------------------------------------------
Vision New York Municipal Income Fund Current income which is exempt from
("New York Municipal Income Fund") (n) federal regular income tax, and the
personal income taxes imposed by the
State of New York and New York
municipalities and is consistent with
preservation of capital.
- -------------------------------------------------------------------------------------
Vision Equity Income Fund ("Equity Current income.
Income Fund")(d)
- -------------------------------------------------------------------------------------
Vision Growth and Income Fund ("Growth Long-term growth of capital and income.
and Income Fund") (d)
- -------------------------------------------------------------------------------------
Vision Capital Appreciation Fund Long-term capital appreciation by
("Capital Appreciation Fund") (d) investing in a diversified portfolio
consisting primarily of common stocks
that the adviser believes offer
opportunity for growth of capital.
</TABLE>
(d) Diversified
(n) Non-diversified
The financial statements of the other portfolios are presented separately. The
assets of each portfolio are segregated and a shareholder's interest is lim-
ited to the portfolio in which shares are held.
VISION EQUITY AND INCOME FUNDS
- -------------------------------------------------------------------------------
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS--Listed equity securities are valued at the last
sale price reported on a national securities exchange. U.S. Government
securities are generally valued at the mean of the latest bid and asked
price as furnished by an independent pricing service. Listed corporate
bonds, and other fixed income and asset-backed securities, unlisted
securities and short-term securities are valued at the prices provided by
an independent pricing service. However, short-term securities with
remaining maturities of sixty days or less at the time of purchase may be
valued at amortized cost, which approximates fair market value. Municipal
bonds are valued by an independent pricing service, taking into
consideration yield, liquidity, risk, credit quality, coupon, maturity,
type of issue, and any other factors or market data the pricing service
deems relevant. Investments in other open-end regulated investment
companies are valued at net asset value.
REPURCHASE AGREEMENTS--It is the policy of the Funds to require the
custodian bank to take possession, to have legally segregated in the
Federal Reserve Book Entry System, or to have segregated within the
custodian bank's vault, all securities held as collateral under repurchase
agreement transactions. Additionally, procedures have been established by
the Funds to monitor, on a daily basis, the market value of each
repurchase agreement's collateral to ensure that the value of collateral
at least equals the repurchase price to be paid under the repurchase
agreement transaction.
The Funds will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are
deemed by the Funds' adviser to be creditworthy pursuant to the guidelines
and/or standards reviewed or established by the Board of Directors (the
"Directors"). Risks may arise from the potential inability of
counterparties to honor the terms of the repurchase agreement.
Accordingly, the Funds could receive less than the repurchase price on the
sale of collateral securities.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and
expenses are accrued daily. Bond premium and discount, if applicable, are
amortized as required by the Internal Revenue Code, as amended (the
"Code"). Distributions to shareholders are recorded on the ex-dividend
date.
FEDERAL TAXES--It is the Funds' policy to comply with the provisions of
the Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of their income. Accordingly, no
provisions for federal tax are necessary.
At April 30, 1998 the following funds had capital loss carryforwards for
federal tax purposes, which will reduce each Fund's taxable income arising
from future net realized gain on
VISION EQUITY AND INCOME FUNDS
- -------------------------------------------------------------------------------
investments, if any, to the extent permitted by the Code, and thus will
reduce the amount of the distributions to shareholders which would
otherwise be necessary to relieve each Fund of any liability for federal
tax. Pursuant to the Code, such capital loss carryforwards will expire as
listed below:
<TABLE>
<CAPTION>
CAPITAL LOSS
CARRYFORWARD TO
FUND EXPIRE IN 2005
---- ---------------
<S> <C>
U.S. Government Securities Fund $500,175
</TABLE>
Net realized capital losses on U.S. Government Securities Fund of $185,935
attributable to security transactions incurred after October 31, 1997, are
treated as arising on the first day of the Fund's next taxable year (May
1, 1998).
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Funds may engage in
when-issued or delayed delivery transactions. The Funds record when-issued
securities on the trade date and maintain security positions such that
sufficient liquid assets will be available to make payment for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on
the settlement date.
DEFERRED EXPENSES--The costs incurred by each Fund with respect to
registration of its shares in its first fiscal year, excluding the initial
expense of registering its shares, have been deferred and are being
amortized over a period not to exceed five years from the Fund's
commencement date.
USE OF ESTIMATES--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts of assets, liabilities,
expenses and revenues reported in the financial statements. Actual results
could differ from those estimated.
RESTRICTED SECURITIES--Restricted securities are securities that may only
be resold upon registration under federal securities laws or in
transactions exempt from such registration. In some cases, the issuer of
restricted securities has agreed to register such securities for resale,
at the issuer's expense either upon demand by the Funds or in connection
with another registered offering of the securities. Many restricted
securities may be resold in the secondary market in transactions exempt
from registration. Such restricted securities may be determined to be
liquid under criteria established by the Directors. The Funds will not
incur any registration costs upon such resales. The Funds' restricted
securities are valued at the price provided by dealers in the secondary
market or, if no market prices are available, at the fair value as
determined by the Funds' pricing committee.
VISION EQUITY AND INCOME FUNDS
- -------------------------------------------------------------------------------
Additional information on each restricted security held at October 31,
1998 is as follows:
NEW YORK MUNICIPAL INCOME FUND
<TABLE>
<CAPTION>
ACQUISITION ACQUISITION
SECURITY DATE COST
-------- ----------- -----------
<S> <C> <C>
Puerto Rico Industrial, Medical & Environmental PCA 1/24/1997 $1,296,828
</TABLE>
OTHER--Investment transactions are accounted for on the trade date.
(3) CAPITAL STOCK
At October 31, 1998, there were 1,000,000,000 shares of $0.001 par value capi-
tal stock authorized with respect to each Fund. Transactions in capital stock
were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT NEW YORK MUNICIPAL
SECURITIES FUND INCOME FUND EQUITY INCOME FUND
---------------------- --------------------- ----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30,
1998 1998 1998 1998 1998 1998(A)
- ----------------------- ----------- ---------- ----------- --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 1,450,600 2,474,532 594,886 1,147,398 2,089,564 3,309,512
- -----------------------
Shares issued to
shareholders in payment
of distributions
declared 81,746 207,650 54,862 131,036 13,197 8,251
- -----------------------
Shares redeemed (847,878) (1,860,431) (304,809) (626,243) (1,658,762) (57,101)
- ----------------------- --------- ---------- -------- --------- ---------- ---------
Net change resulting
from share
transactions 684,468 821,751 344,939 652,191 443,999 3,260,662
- ----------------------- --------- ---------- -------- --------- ---------- ---------
</TABLE>
VISION EQUITY AND INCOME FUNDS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH AND CAPITAL
INCOME FUND APPRECIATION FUND
----------------------- ----------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30,
1998 1998 1998 1998
- -------------------------- ----------- ---------- ----------- ---------
<S> <C> <C> <C> <C>
Shares sold 772,821 2,600,661 1,042,366 2,401,323
- --------------------------
Shares issued to
shareholders in payment of
distributions declared 23,790 1,327,720 9 223,026
- --------------------------
Shares redeemed (1,545,364) (2,585,548) (1,653,404) (509,464)
- -------------------------- ---------- ---------- ---------- ---------
Net change resulting from
share transactions (748,753) 1,342,833 (611,029) 2,114,885
- -------------------------- ---------- ---------- ---------- ---------
</TABLE>
(a) For the period from September 26, 1997 (date of initial public investment)
to April 30, 1998.
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Manufacturers and Traders Trust Company, the Funds'
investment adviser (the "Adviser"), receives for its services an annual in-
vestment advisory fee based on a percentage of each Fund's average daily net
assets (see below). The Adviser may voluntarily choose to waive any portion of
its fee or reimburse other operating expenses. The Adviser can modify or ter-
minate this voluntary waiver or reimbursement at any time at its sole discre-
tion.
<TABLE>
<CAPTION>
ANNUAL
FUND RATE
---- ------
<S> <C>
U.S. Government Securities Fund 0.70%
New York Municipal Income Fund 0.70%
Equity Income Fund 0.70%
Growth and Income Fund 0.70%
Capital Appreciation Fund 0.85%
</TABLE>
ADMINISTRATIVE, TRANSFER AND DIVIDEND DISBURSING AGENT AND FUND ACCOUNTING
FEE--Federated Services Company ("FServ") provides the Funds with certain ad-
ministrative personnel and fund accounting services. FServ through its subsid-
iary, Federated Shareholder Services Company, serves as transfer and dividend
disbursing agent for the Funds. The fee paid to FServ is based on the level of
average aggregate net assets of the Corporation for the period. FServ may vol-
untarily choose to waive a portion of its fee. Fserv can modify or terminate
this voluntary waiver at any time at its sole discretion.
DISTRIBUTION SERVICES FEE--The Corporation has adopted a Distribution Plan
(the "Plan") pursuant to Rule 12b-1 under the Investment Company Act of 1940.
Under the terms of the Plan, each Fund
VISION EQUITY AND INCOME FUNDS
- -------------------------------------------------------------------------------
will compensate Federated Securities Corp. ("FSC"), the principal distributor,
from the net assets of the Funds to finance activities intended to result in
the sale of the Funds' shares. The Plan provides that each Fund may incur dis-
tribution expenses up to 0.25 % of the average daily net assets of the Fund,
annually, to compensate FSC. The Funds did not pay or accrue distribution fees
during the six months ended October 31, 1998.
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services Agreement
with Manufacturers and Traders Trust Company, the Funds will pay Manufacturers
and Traders Trust Company up to 0.25% of average daily net assets of the Funds
for the period. The fee paid to Manufacturers and Traders Trust Company is
used to finance certain services for shareholders and to maintain shareholder
accounts.
ORGANIZATIONAL EXPENSES--Organizational expenses were borne initially by Fed-
erated Administrative Services ("FAS"). Each Fund has reimbursed FAS for these
expenses. These expenses have been deferred and are being amortized over the
five year period following each Fund's effective date. For the six months
ended October 31, 1998, the following amounts were expensed by each fund:
<TABLE>
<CAPTION>
AMOUNT AMORTIZED
EXPENSES OF FOR THE SIX MONTHS ENDED
ORGANIZING THE FUND OCTOBER 31, 1998
------------------- ------------------------
<S> <C> <C>
U.S. Government Securities Fund* $21,313 $2,207
New York Municipal Income Fund* $27,242 $2,201
Equity Income Fund $ 253 $ 61
Growth and Income Fund* $18,626 $1,542
Capital Appreciation Fund $19,915 $5,615
</TABLE>
- --------
* At October 31, 1998, U.S. Government Securities Fund, New York Municipal
Income Fund and Growth and Income Fund have fully amortized their
organizational expenses.
GENERAL--Certain of the Officers of the Corporation are Officers and Directors
or Trustees of the above companies.
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
six months ended October 31, 1998, were as follows:
<TABLE>
<CAPTION>
FUND PURCHASES SALES
- ---- ----------- ------------
<S> <C> <C>
U.S. Government Securities Fund $24,760,435 $ 18,983,858
New York Municipal Income Fund $16,444,209 $ 12,647,985
Equity Income Fund $11,225,067 $ 8,004,373
Growth and Income Fund $94,473,965 $101,148,572
Capital Appreciation Fund $29,852,889 $ 42,645,460
</TABLE>
VISION EQUITY AND INCOME FUNDS
- -------------------------------------------------------------------------------
(6) CONCENTRATION OF CREDIT RISK
Since New York Municipal Income Fund invests a substantial portion of its as-
sets in issuers located in one state, it will be more susceptible to factors
adversely affecting issuers of that state than would be a comparable tax-ex-
empt mutual fund that invests nationally. In order to reduce the credit risk
associated with such factors, at October 31, 1998, 36.6% of the total market
value of the securities in the portfolio of investments are backed by letters
of credit or bond insurance of various financial institutions and financial
guaranty assurance agencies. The value of investments insured by or supported
(backed) by a letter of credit from any one institution or agency did not ex-
ceed 6.2% of total market value of investments.
(7) YEAR 2000 (UNAUDITED)
Similar to other financial organizations, the Funds could be adversely af-
fected if the computer systems used by the Funds' service providers do not
properly process and calculate date-related information and data from and af-
ter January 1, 2000. The Funds' Adviser and Administrator are taking measures
that they believe are reasonably designed to address the Year 2000 issue with
respect to computer systems that they use and to obtain reasonable assurances
that comparable steps are being taken by each of the Funds' other service
providers. At this time, however, there can be no assurance that these steps
will be sufficient to avoid any adverse impact to the Funds.
DIRECTORS OFFICERS
- --------------------------------------------------------------------------------
Randall I. Benderson Edward C. Gonzales
President and Treasurer
Joseph J. Castiglia Beth S. Broderick
Vice President and Assistant Treasurer
Daniel R. Gernatt, Jr. Victor R. Siclari
Secretary
George K. Hambleton, Jr. C. Todd Gibson
Assistant Secretary
SHARES OF THE VISION FUNDS ARE NOT FDIC INSURED OR OTHERWISE PROTECTED
BY THE U.S. GOVERNMENT, ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF, OR
GUARANTEED BY, MANUFACTURERS AND TRADERS TRUST COMPANY ("M&T BANK"),
AND ARE SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE
PRINCIPAL AMOUNT INVESTED.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Funds' prospectus which contains facts
concerning their objectives and policies, management fees, expenses and other
information.
- --------------------------------------------------------------------------------
VISION
U.S. Government
Securities Fund
Seeks current income by investing primarily in
securities that are guaranteed for payment of
principal and interest by the U.S. government,
its agencies or instrumentalities (Fund shares
themselves are not guaranteed).
- --------------------------------------------------------------------------------
VISION
New York Municipal
Income Fund
Seeks current income that is exempt
from federal, New York State and
New York City income taxes,* as is
consistent with preservation of capital.
- --------------------------------------------------------------------------------
VISION
Equity Income Fund
Seeks to provide current income by investing in a diversified portfolio
consisting primarily of income- producing equity securities of domestic
companies (common and preferred stock and convertible securities). Capital
appreciation is a secondary investment consideration.
- --------------------------------------------------------------------------------
VISION
Growth and Income Fund
Seeks to provide long-term growth of capital and income by investing in a
diversified portfolio consisting primarily of equity securities (common stock
and convertible securities) and debt securities (bonds and notes).
- --------------------------------------------------------------------------------
VISION
Capital Appreciation Fund
Seeks to produce long-term capital appreciation, primarily through a
diversified portfolio of mid-capitalization stocks selected for their ability
to appreciate in value.
- --------------------------------------------------------------------------------
VISION
Money Market Fund
Seeks current income with liquidity and
stability of principal by investing in high-
quality money market instruments.**
- --------------------------------------------------------------------------------
VISION
Treasury Money
Market Fund
Seeks current income with liquidity and
stability of principal by investing in short-term
U.S. Treasury obligations, which are fully guaranteed
for payment of principal and interest
by the U.S. government.**
- --------------------------------------------------------------------------------
VISION
New York Tax-Free
Money Market Fund
Seeks a high level of current interest income that
is exempt from federal, New York State and
New York City income taxes,* as well as
liquidity and stability of principal.**
- --------------------------------------------------------------------------------
* Some income may be subject to the federal alternative minimum tax.
** An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency.
Although money market funds seek to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in the fund.
For more complete information about any of the
Vision Funds, contact (800) 836-2211
for a prospectus. Please read the prospectus
carefully before investing.
PRESIDENT'S MESSAGE
- -------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report of the VISION money market
funds for the six-month period ended October 31, 1998. It contains complete
financial information--including a list of portfolio holdings--for VISION
Money Market Fund, VISION Treasury Money Market Fund, and VISION New York Tax-
Free Money Market Fund.
Each VISION money market fund gives you a convenient way to keep your ready
cash working every day. You also have easy access to your money, and a high
degree of safety.* The following highlights summarize fund activity for the
six-month reporting period.
VISION MONEY MARKET FUND, a diversified portfolio of corporate and U.S. gov-
ernment money market securities, paid dividends totaling $0.02 per share to
Class A Shares investors and $0.02 per share to Class S Shares investors. As-
sets reached $830 million at the end of the period.
VISION TREASURY MONEY MARKET FUND, which invests exclusively in U.S. Treasury
securities and repurchase agreements collateralized by such securities, paid
dividends totaling $0.02 per share to Class A Shares investors and $0.02 per
share to Class S Shares investors. Assets totaled $510 million at the end of
the period.
VISION NEW YORK TAX-FREE MONEY MARKET FUND, a portfolio of New York municipal
money market securities, paid double-tax-free dividends (triple-tax-free divi-
dends to New York City residents) totaling $0.01 per share.** Assets totaled
$113 million at the end of the period.
Thank you for participating in the daily earning power of the VISION money
market funds. We'll continue to keep you up to date on your investment, and
provide your account with the highest level of service.
Sincerely,
/s/ Edward C. Gonzales
Edward C. Gonzales
President
December 15, 1998
*An investment in the funds is neither insured nor guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
funds seek to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the funds.
**Income may be subject to the federal alternative minimum tax.
SHAREHOLDER MEETING RESULTS
- -------------------------------------------------------------------------------
A Special Meeting of Shareholders of Vision New York Tax-Free Money Market
Fund (the "Fund") was held on August 21, 1998. On July 8, 1998, the record
date for shareholders voting at the meeting, there were 101,519,338 total out-
standing shares. The following items were considered and approved by share-
holders. The results of their voting were as follows:
AGENDA ITEM 1: To approve or disapprove a Subadvisory Agreement among Vision
Group of Funds, Inc. (the "Corporation"), Manufacturers and Traders Trust Com-
pany ("M&T Bank"), and Federated Investment Counseling, on behalf of the Fund.
<TABLE>
<CAPTION>
SHARES VOTED SHARES VOTED SHARES
FOR AGAINST ABSTAINED
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
59,584,199 144,660 178,486
</TABLE>
AGENDA ITEM 2: To approve or disapprove a new Investment Advisory Contract be-
tween M&T Bank and the Fund.
<TABLE>
<CAPTION>
SHARES VOTED SHARES VOTED SHARES
FOR AGAINST ABSTAINED
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
59,685,974 42,885 178,486
</TABLE>
AGENDA ITEM 3: To approve or disapprove proposed revisions to the Fund's fun-
damental investment policies on selling short and buying on margin, on issuing
senior securities and borrowing money, on pledging securities, on commodities,
commodity contracts or real estate, on underwriting, on diversification of in-
vestments and on concentration of investments, each as set forth in the Proxy
Statement.
<TABLE>
<CAPTION>
SHARES VOTED SHARES VOTED SHARES
INVESTMENT POLICY FOR AGAINST ABSTAINED
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
Selling short and buying on margin 59,477,589 295,700 134,057
Issuing senior securities and borrowing
money 59,495,842 277,612 133,892
Pledging securities 59,456,645 316,809 133,892
Commodities, commodity contracts or real
estate 59,457,348 315,941 134,057
Underwriting 59,475,086 253,609 178,651
Diversification of investments 59,535,286 238,168 133,892
Concentration of investments 59,485,153 288,301 133,892
</TABLE>
AGENDA ITEM 4: To approve or disapprove amending and changing from fundamental
to non- fundamental investment policies the Fund's ability to invest in the
securities of other investment companies, the Fund's ability to invest in il-
liquid securities and restricted securities, the Fund's investment policies
regarding temporary investments, the Fund's investment policies regarding
when-issued and delayed delivery transactions, the Fund's investment policies
regarding credit enhancement, the Fund's investment policies regarding dealing
in puts and calls, the Fund's investment policies regarding purchasing securi-
ties to exercise control, and the Fund's investment policy regarding credit
guidelines, each as set forth in the Proxy Statement.
<TABLE>
<CAPTION>
SHARES VOTED SHARES VOTED SHARES
INVESTMENT POLICY FOR AGAINST ABSTAINED
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
Invest in the securities of other
investment companies 59,527,499 245,955 133,892
Invest in illiquid securities and
restricted securities 59,435,243 338,046 134,057
Temporary investments 59,414,465 296,213 196,667
When-issued and delayed delivery
transactions 59,398,457 312,057 196,832
Credit enhancement 59,459,408 251,106 196,832
Dealing in puts and calls 59,398,621 356,651 152,073
Purchasing securities to exercise control 59,398,621 312,057 196,667
Credit guidelines 59,404,150 314,294 188,902
</TABLE>
AGENDA ITEM 5: To approve or disapprove the deletion of the Fund's fundamental
policies on investing in new issuers, on investing in issuers whose securities
are owned by officers and Directors of the Corporation, and on voting
securities and revenue bonds, each as set forth in the Proxy Statement.
<TABLE>
<CAPTION>
SHARES VOTED SHARES VOTED SHARES
INVESTMENT POLICY FOR AGAINST ABSTAINED
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
Investing in new issuers 59,414,401 314,294 178,651
Investing in issuers whose securities are
owned by officers and Directors of the
Corporation 59,431,119 342,334 133,892
Voting securities and revenue bonds 59,456,854 271,841 178,651
</TABLE>
VISION MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- --------------------------------------------------- ------------
<C> <S> <C>
(A) CORPORATE OBLIGATIONS--77.0%
---------------------------------------------------------------
AUTOS--12.0%
---------------------------------------------------
$35,000,000 Daimler Benz North America Corp., 5.580%, 11/6/1998 $ 34,973,264
---------------------------------------------------
35,000,000 Ford Motor Credit Corp., 5.199%, 1/26/1999 34,572,747
---------------------------------------------------
30,000,000 General Motors Acceptance Corp., 5.598%, 11/17/1998 29,926,800
--------------------------------------------------- ------------
Total 99,472,811
--------------------------------------------------- ------------
BANKING--4.1%
---------------------------------------------------
35,000,000 Commerzbank U.S. Finance, Inc., 4.803%, 4/19/1999 34,229,407
--------------------------------------------------- ------------
CHEMICALS--4.1%
---------------------------------------------------
35,000,000 Du Pont (E.I.) de Nemours & Co., 4.804%, 4/26/1999 34,197,489
--------------------------------------------------- ------------
CONSUMER BASICS--3.6%
---------------------------------------------------
30,000,000 (b)Colgate-Palmolive Co., (Series C), 5.686%,
8/25/1999 29,980,837
--------------------------------------------------- ------------
DIVERSIFIED--3.0%
---------------------------------------------------
25,000,000 General Electric Capital Corp., 5.065%, 3/15/1999 24,538,444
--------------------------------------------------- ------------
FARM EQUIPMENT & LEASING--4.2%
---------------------------------------------------
35,000,000 Deere (John) Capital Corp., 5.581%, 11/13/1998 34,936,067
--------------------------------------------------- ------------
FINANCIAL RECEIVABLES--4.2%
---------------------------------------------------
35,000,000 Apreco, Inc., 5.184%, 2/11/1999 34,494,250
--------------------------------------------------- ------------
FINANCIAL RETAIL--15.0%
---------------------------------------------------
30,000,000 American Express Credit Corp., 5.252%, 11/6/1998 29,978,250
---------------------------------------------------
25,000,000 (b)Associates Corp. of North America, 5.233%,
12/1/1998 25,000,000
---------------------------------------------------
35,000,000 Commercial Credit Co., 5.293%, 11/12/1998 34,943,640
---------------------------------------------------
35,000,000 IBM Credit Corp., 5.167%, 1/4/1999 34,682,667
--------------------------------------------------- ------------
Total 124,604,557
--------------------------------------------------- ------------
FINANCIAL SERVICES--2.9%
---------------------------------------------------
24,400,000 (b)Morgan Stanley, Dean Witter & Co., 5.788%,
4/27/1999 24,400,000
--------------------------------------------------- ------------
</TABLE>
VISION MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- -------------------------------------------------- ------------
<C> <S> <C>
(A) CORPORATE OBLIGATIONS--CONTINUED
--------------------------------------------------------------
FOOD & BEVERAGE--3.6%
--------------------------------------------------
$30,200,000 PepsiCo, Inc., 5.537%, 11/2/1998 $ 30,195,403
-------------------------------------------------- ------------
INSURANCE--11.3%
--------------------------------------------------
25,000,000 American General Finance Corp., 5.298%, 12/21/1998 24,818,403
--------------------------------------------------
40,000,000 Prudential Funding Corp., 4.950%, 2/24/1999 39,377,722
--------------------------------------------------
30,000,000 Transamerica Finance Corp., 5.485%, 12/8/1998 29,833,192
-------------------------------------------------- ------------
Total 94,029,317
-------------------------------------------------- ------------
OIL--9.0%
--------------------------------------------------
40,000,000 Chevron U.S.A., Inc., 5.073%, 11/30/1998 39,837,278
--------------------------------------------------
35,000,000 Texaco, Inc., 5.547%, 11/23/1998 34,883,003
-------------------------------------------------- ------------
Total 74,720,281
-------------------------------------------------- ------------
TOTAL CORPORATE OBLIGATIONS 639,798,863
-------------------------------------------------- ------------
(A) U.S. GOVERNMENT AGENCIES--21.0%
--------------------------------------------------------------
FINANCIAL NATIONAL MORTGAGE ASSOCIATION--12.7%
--------------------------------------------------
35,000,000 5.350%, 2/8/1999 34,485,062
--------------------------------------------------
31,750,000 4.905%, 3/5/1999 31,213,583
--------------------------------------------------
15,000,000 4.770%, 5/10/1999 14,622,375
--------------------------------------------------
25,000,000 4.470%, 9/22/1999 23,991,146
-------------------------------------------------- ------------
Total 104,312,166
-------------------------------------------------- ------------
FEDERAL HOME LOAN MORTGAGE CORPORATION--5.9%
--------------------------------------------------
50,000,000 5.065%, 2/24/1999 49,191,007
-------------------------------------------------- ------------
STUDENT LOAN MARKETING ASSOCIATION--2.4%
--------------------------------------------------
20,000,000 4.380%, 2/8/1999 19,988,280
-------------------------------------------------- ------------
TOTAL U.S. GOVERNMENT AGENCIES 173,491,453
-------------------------------------------------- ------------
</TABLE>
VISION MONEY MARKET FUND
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- --------------------------------------------- ------------
<C> <S> <C>
(C) REPURCHASE AGREEMENTS--2.6%
---------------------------------------------------------
$21,949,000 State Street Corp., 5.350%, dated 10/30/1998,
due 11/2/1998 $ 21,949,000
--------------------------------------------- ------------
TOTAL INVESTMENTS (AT AMORTIZED COST)(D) $835,239,316
--------------------------------------------- ------------
</TABLE>
(a) Each issue, with the exception of variable rate securities, shows the cou-
pon or rate of discount at the time of purchase, if applicable.
(b) Denotes variable rate securities which show current rate and next demand
date.
(c) The repurchase agreement is fully collateralized by U.S. Treasury obliga-
tions based on market prices at October 31, 1998.
(d) Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($830,492,397) at October 31, 1998.
(See Notes which are an integral part of the Financial Statements)
VISION TREASURY MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------ ------------------------------------------------- ------------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS--56.7%
--------------------------------------------------------------
U.S. TREASURY BILLS--29.2%
-------------------------------------------------
$150,000,000 3.25%-5.02%, 11/19/1998-6/24/1999 $148,807,528
------------------------------------------------- ------------
U.S. TREASURY NOTES--27.5%
-------------------------------------------------
140,000,000 5.625%-6.375%, 11/30/1998-6/30/1999 140,495,382
------------------------------------------------- ------------
TOTAL U.S. TREASURY OBLIGATIONS 289,302,910
------------------------------------------------- ------------
(A) REPURCHASE AGREEMENTS--43.3%
--------------------------------------------------------------
115,000,000 CIBC Oppenheimer Corp., 5.350%, dated 10/30/1998,
due 11/2/1998 115,000,000
-------------------------------------------------
105,624,000 State Street Bank and Trust Co., 5.350%, dated
10/30/1998, due 11/2/1998 105,624,000
------------------------------------------------- ------------
TOTAL REPURCHASE AGREEMENTS 220,624,000
------------------------------------------------- ------------
TOTAL INVESTMENTS (AT AMORTIZED COST)(B) $509,926,910
------------------------------------------------- ------------
</TABLE>
(a) The repurchase agreements are fully collateralized by U.S. Treasury obliga-
tions based on market prices at October 31, 1998.
(b) Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($510,080,908) at October 31, 1998.
(See Notes which are an integral part of the Financial Statements)
VISION NEW YORK TAX-FREE MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- ----------------------------------------- ---------- ------------
<C> <S> <C> <C>
(A) SHORT-TERM MUNICIPALS--99.4%
----------------------------------------------------
NEW YORK--98.1%
-----------------------------------------
$2,750,000 Chautauqua County, NY IDA, IDR Bonds
Weekly VRDNs (Belknap Business
Forms)/(Key Bank of New York LOC)/(AMT) A-1 $ 2,750,000
-----------------------------------------
2,325,000 Elmira City, NY, 4.00% BANs, 5/18/1999 MIG-1 2,329,888
-----------------------------------------
2,125,000 Erie County, NY IDA, (Series 1998) Weekly
VRDNs (B & G Properties, LLC)/(Marine
Midland Bank N.A., Buffalo, NY LOC) A-1 2,125,000
-----------------------------------------
4,000,000 Erie County, NY IDA, Health, Hospital,
Nursing Home Improvement Weekly VRDNs
(Episcopal Church Home & Affiliates Life
Care Community, Inc.)/(Paribas, Paris
LOC) VMIG-1 4,000,000
-----------------------------------------
2,000,000 Half Hollow Hills Central School
District, NY, 4.00% TANs, 6/25/1999 MIG-1 2,005,621
-----------------------------------------
1,800,000 Mayfield, NY Central School District,
3.45% BANs, 10/15/1999 NR 1,800,824
-----------------------------------------
2,800,000 New York City Housing Development Corp.,
(Series 1993A) Weekly VRDNs (Columbus
Gardens)/(Citibank NA, New York LOC) A1+ 2,800,000
-----------------------------------------
1,000,000 New York City Housing Development Corp.,
(Series A) Weekly VRDNs (Upper Fifth
Avenue)/(Bankers Trust Co., New York LOC) VMIG-1 1,000,000
-----------------------------------------
1,500,000 New York City Housing Development Corp.,
East 17th St. Properties Mortgage Revenue
Bonds (Series A) Daily VRDNs (Chase
Manhattan Bank N.A., New York LOC) A1+ 1,500,000
-----------------------------------------
1,000,000 New York City Municipal Water Finance
Authority, Daily VRDNs (FGIC INS)/(FGIC
Securities Purchase, Inc. LIQ) A1+/VMIG-1 1,000,000
-----------------------------------------
700,000 New York City Municipal Water Finance
Authority, (Series C) Daily VRDNs (FGIC
INS)/(FGIC Securities Purchase, Inc. LIQ) A1+/VMIG-1 700,000
-----------------------------------------
</TABLE>
VISION NEW YORK TAX-FREE MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- ---------------------------------------- ----------- ------------
<C> <S> <C> <C>
(A) SHORT-TERM MUNICIPALS--CONTINUED
---------------------------------------------------
NEW YORK--CONTINUED
----------------------------------------
$5,000,000 New York City Municipal Water Finance
Authority, Trust Receipts (Series 1998
FR/RI-A65) Weekly VRDNs (FSA
INS)/(National Westminster Bank, PLC,
London LIQ) A1+c/NR $ 5,000,000
----------------------------------------
3,000,000 New York City Municipal Water Finance
Authority, Trust Receipts, (Series 1998
FR/RI-10) Weekly VRDNs (FSA INS)/(Bank
of New York, New York LIQ) A1+c/VMIG-1 3,000,000
----------------------------------------
1,000,000 New York City Municipal Water Finance
Authority, Water and Sewer System
Revenue Bonds (Series 1995 A) Daily
VRDNs (FGIC INS)/(FGIC Securities
Purchase, Inc. LIQ) A1+/VMIG-1 1,000,000
----------------------------------------
2,400,000 New York City, NY IDA, Revenue Bonds
Weekly VRDNs (Children's Oncology
Society)/(Bank of New York, New York
LOC) A1+/NR 2,400,000
----------------------------------------
5,000,000 New York City, NY Transitional Finance
Authority, PT-1047 Weekly VRDNs (Merrill
Lynch Capital Services, Inc. LIQ) A1+c/NR 5,000,000
----------------------------------------
900,000 New York City, NY, (Subseries A-5) Daily
VRDNs (KBC Bank N.V., Brussels LOC) A1+/VMIG-1 900,000
----------------------------------------
300,000 New York City, NY, (Subseries A-5) Daily
VRDNs (KBC Bank N.V., Brussels LOC) A1+/VMIG-1 300,000
----------------------------------------
300,000 New York City, NY, (Subseries B-2) Daily
VRDNs (Morgan Guaranty Trust Co., New
York LOC) A1+/VMIG-1 300,000
----------------------------------------
500,000 New York City, NY, Subseries A-10 Daily
VRDNs (Morgan Guaranty Trust Co., New
York LOC) A1+/VMIG-1 500,000
----------------------------------------
1,100,000 New York City, NY, Subseries B-3 Daily
VRDNs (Morgan Guaranty Trust Co., New
York LOC) A1+/VMIG-1 1,100,000
----------------------------------------
3,000,000 New York State Dormitory Authority,
Floater Certificates (Series 1998-42)
Weekly VRDNs (Morgan Stanley, Dean
Witter Municipal Funding, Inc. LIQ)/
(United States Treasury PRF) A1+c/NR 3,000,000
----------------------------------------
</TABLE>
VISION NEW YORK TAX-FREE MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- ----------------------------------------- ---------- ------------
<C> <S> <C> <C>
(A) SHORT-TERM MUNICIPALS--CONTINUED
----------------------------------------------------
NEW YORK--CONTINUED
-----------------------------------------
$2,300,000 New York State Energy Research &
Development Authority Daily VRDNs
(Niagara Mohawk Power Corp.)/(Toronto-
Dominion Bank LOC) A1+/NR $ 2,300,000
-----------------------------------------
2,000,000 New York State Energy Research &
Development Authority, (Series B) Weekly
VRDNs (Rochester Gas & Electric
Corp)/(MBIA Insurance Corporation INS)/
(Credit Suisse First Boston LIQ) A1+/VMIG-1 2,000,000
-----------------------------------------
3,000,000 New York State Energy Research &
Development Authority, Gas Facilities
Revenue Bonds (1997 Series A-1) Weekly
VRDNs (Brooklyn Union Gas Co.)/(MBIA
Insurance Corporation INS)/(UBS AG LIQ) A1+/VMIG-1 3,000,000
-----------------------------------------
2,000,000 New York State Energy Research &
Development Authority, PCR Revenue Bonds
(Series 1994 C) Daily VRDNs (New York
State Electric and Gas Corp.)/ (Morgan
Guaranty Trust Co., New York LOC) A1+/VMIG-1 2,000,000
-----------------------------------------
3,000,000 New York State Energy Research &
Development Authority, PCR, (1994 Series
D) Daily VRDNs (New York State Electric
and Gas Corp.)/(UBS AG LOC) VMIG-1 3,000,000
-----------------------------------------
1,000,000 New York State Energy Research &
Development Authority, Revenue Bonds
(Series A) Weekly VRDNs (Long Island
Lighting Co.)/(Union Bank of Switzerland
LOC)/(AMT) VMIG-1 1,000,000
-----------------------------------------
1,100,000 New York State Energy Research &
Development Authority, Revenue Bonds
(Series B) Daily VRDNs (Niagara Mohawk
Power Corp.)/(Toronto-Dominion Bank LOC) NR/Aa2 1,100,000
-----------------------------------------
900,000 New York State Environmental Facilities
Corp., Resource Recovery Improvement
Bonds Daily VRDNs (OFS Equity Huntington
Project)/(Union Bank of Switzerland LOC)/
(AMT) A1+/NR 900,000
-----------------------------------------
1,200,000 New York State Local Government
Assistance Corp., (Series E) Weekly VRDNs
(Canadian Imperial Bank of Commerce,
Toronto LOC) A1+/VMIG-1 1,200,000
-----------------------------------------
</TABLE>
VISION NEW YORK TAX-FREE MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- ----------------------------------------- ---------- ------------
<C> <S> <C> <C>
(A) SHORT-TERM MUNICIPALS--CONTINUED
----------------------------------------------------
NEW YORK--CONTINUED
-----------------------------------------
$1,790,000 New York State Medical Care Facilities
Finance Agency Weekly VRDNs (Pooled Loan
Program)/(Chase Manhattan Bank N.A., New
York LOC) NR/VMIG-1 $ 1,790,000
-----------------------------------------
1,500,000 New York State Mortgage Agency, PA-406
Weekly VRDNs (Merrill Lynch Capital
Services, Inc. LIQ) NR/VMIG-1 1,500,000
-----------------------------------------
700,000 New York State Power Authority, 3.45%
TOBs (Bank of America NT and SA, San
Francisco, Bank of Tokyo-Mitsubishi Ltd.,
Morgan Guaranty Trust Co., New York and
Sumitomo Bank Ltd., Osaka LIQs) 3/1/1999 AA-/VMIG-1 700,000
-----------------------------------------
1,000,000 New York State Power Authority, 3.45%
TOBs (Bank of America NT and SA, San
Francisco, Bank of Tokyo-Mitsubishi Ltd.,
Morgan Guaranty Trust Co., New York and
Sumitomo Bank Ltd., Osaka LIQs) 3/1/1999 AA-/VMIG-1 1,000,000
-----------------------------------------
500,000 New York State Power Authority, Revenue
Bonds, 3.45% TOBs (Bank of America NT and
SA, San Francisco, Bank of Tokyo-
Mitsubishi Ltd., Morgan Guaranty Trust
Co., New York and Sumitomo Bank Ltd.,
Osaka LIQs) 3/1/1999 AA-/VMIG-1 500,000
-----------------------------------------
4,000,000 New York State Thruway Authority, Trust
Receipts (Series 1998 FR/RI-A61), 3.45%
TOBs (FGIC INS)/(Bank of New York, New
York LIQ), Optional Tender 2/1/1999 VMIG-1 4,000,000
-----------------------------------------
2,000,000 New York State, (Series U), 3.15% CP
(Westdeutsche Landesbank Girozentrale
LIQ), Mandatory Tender 11/24/1998 A1/P1 2,000,000
-----------------------------------------
1,500,000 Niagara County, NY IDA, Solid Waste
Disposal Facility Revenue Bonds (Series
1994C) Weekly VRDNs (American Ref-Fuel
Co.)/(Wachovia Bank of NC, NA, Winston-
Salem LOC) A1+/P1 1,500,000
-----------------------------------------
1,700,000 Niagara County, NY IDA, Solid Waste
Disposal Facility Revenue bonds (Series
1996D) Weekly VRDNs (American Ref-Fuel
Co.)/(Wachovia Bank of NC, NA, Winston-
Salem LOC) A1+/P1 1,700,000
-----------------------------------------
</TABLE>
VISION NEW YORK TAX-FREE MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- ----------------------------------------- ---------- ------------
<C> <S> <C> <C>
(A) SHORT-TERM MUNICIPALS--CONTINUED
----------------------------------------------------
NEW YORK--CONTINUED
-----------------------------------------
$1,800,000 Niagara Falls, NY Bridge Commission,
Revenue Bonds (Series 1993A) Weekly VRDNs
(FGIC INS)/(Credit Local de France LIQ) A1+/VMIG-1 $ 1,800,000
-----------------------------------------
4,000,000 Northport--East Northport, NY Unified
Free School District, GO UT Notes, 4.00%
TANs, 6/30/1999 NR/MIG-1 4,010,182
-----------------------------------------
1,250,000 Oyster Bay, NY, GO UT, 4.00% RANs,
1/29/1999 NR 1,250,936
-----------------------------------------
2,000,000 Portville, NY Central School District,
3.50% BANs, 10/20/1999 NR 2,001,857
-----------------------------------------
1,500,000 Riverhead, NY IDA, IDRB (Series 1998)
Weekly VRDNs (Altaire Pharmaceuticals,
Inc.)/(Mellon Bank NA, Pittsburgh LOC) NR 1,500,000
-----------------------------------------
2,000,000 Sachem, NY Central School District at
Holbrook, 4.00% TANs, 6/25/1999 NR/MIG-1 2,004,364
-----------------------------------------
1,000,000 Senaca County, NY IDA Weekly VRDNs (New
York Chiropractic College)/(Fleet Bank
N.A. LOC) A1 1,000,000
-----------------------------------------
4,000,000 Smithtown, NY Central School District, GO
UT, 3.90% TANs, 6/25/1999 MIG-1 4,007,255
-----------------------------------------
1,750,000 South Huntington, NY Union Free School
District, GO UT Notes, 3.90% TANs,
6/30/1999 MIG-1 1,753,666
-----------------------------------------
2,945,000 St. Lawrence County, NY IDA, Refunding
Revenue Bonds Daily VRDNs (Reynolds
Metals Co.)/(Bank of Nova Scotia, Toronto
LOC) P1 2,945,000
-----------------------------------------
3,500,000 Triborough Bridge & Tunnel Authority, NY,
Trust Receipts (Series 1998 FR/RI-A1)
Weekly VRDNs (Bayerische Hypotheken-Und
Wechsel-Bank Ag LIQ) VMIG-1 3,500,000
-----------------------------------------
2,000,000 VRDC/IVRC Trust, (Series 1992A) Weekly
VRDNs (New York City Municipal Water
Finance Authority)/(MBIA Insurance
Corporation INS)/(Hong Kong & Shanghai
Banking Corp. LIQ) A1/VMIG-1 2,000,000
-----------------------------------------
3,200,000 Westchester County, NY, GO UT (Series A),
4.60% Bonds, 12/15/1998 AAA/Aaa 3,203,374
-----------------------------------------
</TABLE>
VISION NEW YORK TAX-FREE MONEY MARKET FUND
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- ---------------------------------------- ---------- ------------
<C> <S> <C> <C>
(A) SHORT-TERM MUNICIPALS--CONTINUED
---------------------------------------------------
NEW YORK--CONTINUED
----------------------------------------
$1,715,000 Yonkers, NY IDA, Civic Facility Revenue
Bonds, (Series 1994) Weekly VRDNs
(Consumers Union Facility)/ (AMBAC
INS)/(Credit Local de France LIQ) A1+/VMIG-1 $ 1,715,000
----------------------------------------
2,875,000 Yorkshire-Pioneer, NY Central School
District, 3.50% BANs, 10/27/1999 NR 2,881,040
---------------------------------------- ------------
Total 111,274,007
---------------------------------------- ------------
PUERTO RICO--1.3%
----------------------------------------
1,426,560 Commonwealth of Puerto Rico Municipal
Revenues Collection Center, 1997A
LeaseTOPS Trust Weekly VRDNs (ABN AMRO
Bank N.V., Amsterdam LIQ)/(State Street
Bank and Trust Co. LOC) A1+c/NR 1,426,560
---------------------------------------- ------------
TOTAL INVESTMENTS (AT AMORTIZED COST)(B) $112,700,567
---------------------------------------- ------------
</TABLE>
(a) At October 31, 1998, 4% of the total investments at market value were sub-
ject to alternative minimum tax.
(b) Also represents cost for federal tax purposes.
* Please refer to the Appendix of the Statement of Additional Information for
an explanation of the credit ratings. Current credit ratings are unaudited.
Note: The categories of investments are shown as a percentage of net assets
($113,442,954) at October 31, 1998.
VISION NEW YORK TAX-FREE MONEY MARKET FUND
- --------------------------------------------------------------------------------
The following acronym(s) are used throughout this portfolio:
AMBAC--American Municipal Bond As- LLC--Limited Liability Corporation
surance Corporation LOC--Letter of Credit
AMT--Alternative Minimum Tax MBIA--Municipal Bond Investors As-
BANs--Bond Anticipation Notes surance
CP--Commercial Paper PCR--Pollution Control Revenue
FGIC--Financial Guaranty Insurance PLC--Public Limited Company
Company PRF--Prerefunded
FSA--Financial Security Assurance RANs--Revenue Anticipation Notes
GO--General Obligation SA--Support Agreement
IDA--Industrial Development Author- TANs--Tax Anticipation Notes
ity TOBs--Tender Option Bonds
IDR--Industrial Development Revenue UT--Unlimited Tax
IDRB--Industrial Development Revenue VRDNs--Variable Rate Demand Notes
Bond
INS--Insured
LIQ--Liquidity Agreement
(See Notes which are an integral part of the Financial Statements)
VISION MONEY MARKET FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW YORK
TREASURY TAX-FREE
MONEY MONEY MONEY
MARKET MARKET MARKET
FUND FUND FUND
- -------------------------------------- ------------ ------------ ------------
<S> <C> <C> <C>
ASSETS:
- --------------------------------------
Investments in securities $813,290,316 $289,302,910 $112,700,567
- --------------------------------------
Investments in repurchase agreements 21,949,000 220,624,000 --
- -------------------------------------- ------------ ------------ ------------
Total investments, at amortized cost
and value 835,239,316 509,926,910 112,700,567
- --------------------------------------
Cash -- 94,966 301,500
- --------------------------------------
Income receivable 766,830 2,299,024 721,603
- --------------------------------------
Receivable for shares sold 9,140 -- --
- -------------------------------------- ------------ ------------ ------------
Total assets 836,015,286 512,320,900 113,723,670
- -------------------------------------- ------------ ------------ ------------
LIABILITIES:
- --------------------------------------
Income distribution payable 3,259,591 2,178,760 264,732
- --------------------------------------
Payable for shares redeemed -- -- --
- --------------------------------------
Payable to Bank 2,218,033 -- --
- --------------------------------------
Accrued expenses 45,265 61,232 15,984
- -------------------------------------- ------------ ------------ ------------
Total liabilities 5,522,889 2,239,992 280,716
- -------------------------------------- ------------ ------------ ------------
NET ASSETS $830,492,397 $510,080,908 $113,442,954
- -------------------------------------- ------------ ------------ ------------
NET ASSET VALUE, Offering Price and
Redemption Proceeds Per Share: $1.00 $1.00 $1.00
- -------------------------------------- ------------ ------------ ------------
SHARES OUTSTANDING: 830,492,397 510,080,908 113,442,954
- -------------------------------------- ------------ ------------ ------------
CLASS A SHARES 812,579,225 482,438,266 --
- -------------------------------------- ------------ ------------ ------------
CLASS S SHARES 17,913,172 27,642,642 --
- -------------------------------------- ------------ ------------ ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
VISION MONEY MARKET FUNDS
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW YORK
TREASURY TAX-FREE
MONEY MONEY MONEY
MARKET MARKET MARKET
FUND FUND FUND
- -------------------------------------- ----------- ----------- ----------
<S> <C> <C> <C>
INVESTMENT INCOME:
- --------------------------------------
Interest $21,102,936 $15,147,411 $1,692,942
- -------------------------------------- ----------- ----------- ----------
EXPENSES:
- --------------------------------------
Investment advisory fee 1,896,216 1,387,487 246,594
- --------------------------------------
Administrative personnel and services
fee 503,761 367,046 65,487
- --------------------------------------
Custodian fees 14,421 11,458 1,893
- --------------------------------------
Transfer and dividend disbursing agent
fees and expenses 68,498 3,252 8,991
- --------------------------------------
Directors' fees 7,210 5,550 473
- --------------------------------------
Auditing fees 7,210 5,669 8,518
- --------------------------------------
Legal fees 3,605 477 3,313
- --------------------------------------
Portfolio accounting fees 4,541 2,656 2,016
- --------------------------------------
Distribution services fee--Class S
Shares 15,708 24,605 --
- --------------------------------------
Share registration costs 32,634 27,630 8,045
- --------------------------------------
Printing and postage 7,398 8,325 3,786
- --------------------------------------
Taxes 18,026 27,273 3,313
- --------------------------------------
Insurance premiums 3,793 2,775 1,420
- --------------------------------------
Miscellaneous 5,103 8,087 2,839
- -------------------------------------- ----------- ----------- ----------
TOTAL EXPENSES 2,588,124 1,882,290 356,688
- -------------------------------------- ----------- ----------- ----------
Waivers--
- --------------------------------------
Waiver of investment advisory fee (180,258) (221,998) (107,351)
- -------------------------------------- ----------- ----------- ----------
TOTAL WAIVERS (180,258) (221,998) (107,351)
- -------------------------------------- ----------- ----------- ----------
NET EXPENSES 2,407,866 1,660,292 249,337
- -------------------------------------- ----------- ----------- ----------
NET INVESTMENT INCOME $18,695,070 $13,487,119 $1,443,605
- -------------------------------------- ----------- ----------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
VISION MONEY MARKET FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TREASURY NEW YORK TAX-FREE
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
---------------------------------- ---------------------------------- --------------------------------
SIX MONTHS
ENDED
SIX MONTHS ENDED SIX MONTHS ENDED OCTOBER 31,
OCTOBER 31, 1998 YEAR ENDED OCTOBER 31, 1998 YEAR ENDED 1998 YEAR ENDED
(UNAUDITED) APRIL 30, 1998 (UNAUDITED) APRIL 30, 1998 (UNAUDITED) APRIL 30, 1998
- ----------------------- ---------------- ---------------- ---------------- ---------------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE)
IN NET ASSETS
- -----------------------
OPERATIONS--
- -----------------------
Net investment income $ 18,695,070 $ 31,609,180 $ 13,487,119 $ 22,863,741 $ 1,443,605 $ 2,406,152
- ----------------------- ---------------- ---------------- ---------------- ---------------- --------------- ---------------
DISTRIBUTIONS TO
SHAREHOLDERS--
- -----------------------
Distributions from net
investment income -- (31,609,180) -- (22,863,741) (1,443,605) (2,406,152)
- -----------------------
Class A Shares (18,394,659) -- (13,034,307) --
- -----------------------
Class S Shares (300,411) -- (452,812) -- -- --
- ----------------------- ---------------- ---------------- ---------------- ---------------- --------------- ---------------
Change in net assets
resulting from
distributions to
shareholders (18,695,070) (31,609,180) (13,487,119) (22,863,741) (1,443,605) (2,406,152)
- ----------------------- ---------------- ---------------- ---------------- ---------------- --------------- ---------------
SHARE TRANSACTIONS--
- -----------------------
Proceeds from sales of
shares 15,105,304,610 18,911,301,933 11,343,039,274 13,346,041,424 1,187,888,223 1,153,995,180
- -----------------------
Net asset value of
shares issued to
shareholders in
payment of
distributions declared 7,265,212 14,408,441 1,471,230 3,467,336 606,554 1,148,312
- -----------------------
Cost of shares
redeemed (14,968,336,118) (18,839,268,923) (11,275,851,738) (13,281,571,255) (1,148,396,729) (1,138,416,526)
- ----------------------- ---------------- ---------------- ---------------- ---------------- --------------- ---------------
Change in net assets
from share
transactions 144,233,704 86,441,451 68,658,766 67,937,505 40,098,048 16,726,966
- ----------------------- ---------------- ---------------- ---------------- ---------------- --------------- ---------------
Change in net assets 144,233,704 86,441,451 68,658,766 67,937,505 40,098,048 16,726,966
- -----------------------
NET ASSETS:
- -----------------------
Beginning of period 686,258,693 599,817,242 441,422,142 373,484,637 73,344,906 56,617,940
- ----------------------- ---------------- ---------------- ---------------- ---------------- --------------- ---------------
End of period $ 830,492,397 $ 686,258,693 $ 510,080,908 $ 441,422,142 $ 113,442,954 $ 73,344,906
- ----------------------- ---------------- ---------------- ---------------- ---------------- --------------- ---------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
VISION MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (UNAUDITED)
- -------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
NET ASSET VALUE, NET DISTRIBUTIONS TO NET ASSET
YEAR ENDED BEGINNING INVESTMENT SHAREHOLDERS FROM NET VALUE, END
APRIL 30, OF PERIOD INCOME INVESTMENT INCOME OF PERIOD
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MONEY MARKET FUND A SHARES
1994 $1.00 0.03 (0.03) $1.00
1995 $1.00 0.05 (0.05) $1.00
1996 $1.00 0.05 (0.05) $1.00
1997 $1.00 0.05 (0.05) $1.00
1998 $1.00 0.05 (0.05) $1.00
1998(a) $1.00 0.02 (0.02) $1.00
MONEY MARKET FUND S SHARES
1998(a) $1.00 0.02 (0.02) $1.00
TREASURY MONEY MARKET FUND A SHARES
1994 $1.00 0.03 (0.03) $1.00
1995 $1.00 0.04 (0.04) $1.00
1996 $1.00 0.05 (0.05) $1.00
1997 $1.00 0.05 (0.05) $1.00
1998 $1.00 0.05 (0.05) $1.00
1998(a) $1.00 0.02 (0.02) $1.00
TREASURY MONEY MARKET FUND S SHARES
1998(a) $1.00 0.02 (0.02) $1.00
NEW YORK TAX-FREE MONEY MARKET FUND
1994 $1.00 0.02 (0.02) $1.00
1995 $1.00 0.03 (0.03) $1.00
1996 $1.00 0.03 (0.03) $1.00
1997 $1.00 0.03 (0.03) $1.00
1998 $1.00 0.03 (0.03) $1.00
1998(a) $1.00 0.01 (0.01) $1.00
- -------------------------------------------------------------------------------
</TABLE>
(a) For the six-months ended October 31, 1998.
(b) Based on net asset value, which does not reflect the sales charge or con-
tingent deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
------------------------------------------------------
NET EXPENSE NET ASSETS,
TOTAL INVESTMENT WAIVER/ END OF PERIOD
RETURN(B) EXPENSES INCOME REIMBURSEMENT(D) (000 OMITTED)
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
3.01% 0.28% 2.98% 0.42% $266,626
4.77% 0.51% 4.80% 0.19% $431,316
5.33% 0.58% 5.19% 0.11% $489,229
4.93% 0.61% 4.77% 0.10% $599,817
5.11% 0.64% 5.00% 0.05% $686,259
2.51% 0.63%(c) 4.93%(c) 0.05%(c) $812,579
1.87% 0.89%(c) 4.78%(c) 0.05%(c) $ 17,913
2.88% 0.31% 2.86% 0.43% $197,521
4.57% 0.51% 4.53% 0.19% $210,526
5.25% 0.57% 5.10% 0.09% $372,884
4.82% 0.58% 4.75% 0.10% $373,485
4.98% 0.59% 4.96% 0.08% $441,422
2.43% 0.59%(c) 4.87%(c) 0.08%(c) $482,438
1.80% 0.84%(c) 4.60%(c) 0.08%(c) $ 27,643
1.88% 0.41% 1.88% 0.58% $ 40,180
2.84% 0.40% 2.76% 0.52% $ 41,238
3.20% 0.48% 3.14% 0.38% $ 65,763
2.96% 0.50% 2.95% 0.35% $ 56,618
3.14% 0.50% 3.09% 0.28% $ 73,345
1.49% 0.50%(c) 2.93%(c) 0.22%(c) $113,443
- -------------------------------------------------------------------------------------
</TABLE>
VISION MONEY MARKET FUNDS
COMBINED NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1998 (UNAUDITED)
- -------------------------------------------------------------------------------
(1) ORGANIZATION
Vision Group of Funds, Inc. (the "Corporation") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as an open-end
management investment company. The Corporation consists of eight diversified
portfolios and one non-diversified portfolio (individually referred to as the
"Fund", or collectively as the "Funds"). The following diversified Funds are
presented herein:
<TABLE>
<CAPTION>
PORTFOLIO NAME INVESTMENT OBJECTIVE
- -------------------------------------------------------------------------------------
<C> <S>
Vision Money Market Fund ("Money Seeks current income with liquidity and
Market") stability of principal by investing in high
quality money market instruments.
- -------------------------------------------------------------------------------------
Vision Treasury Money Market Fund Seeks current income with liquidity and
("Treasury Money Market") stability of principal by investing in
direct obligations of the U.S. Treasury,
such as Treasury bills and notes, and
repurchase agreements secured by these
obligations.
- -------------------------------------------------------------------------------------
Vision New York Tax-Free Money Market Seeks as high a level of current interest
Fund ("New York Tax-Free Money income that is exempt from federal regular
Market") income tax
as is consistent with liquidity and relative
stability of principal.
</TABLE>
The financial statements of the other portfolios are presented separately. The
assets of each portfolio are segregated and a shareholder's interest is
limited to the portfolio in which shares are held.
Effective May 1, 1998, Money Market and Treasury Money Market redesignated
their existing Class A Shares, and added Class S Shares.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS--The Funds' use of the amortized cost method to
value their portfolio securities is in accordance with Rule 2a-7 under the
Act.
REPURCHASE AGREEMENTS--It is the policy of the Funds to require the
custodian bank to take possession, to have legally segregated in the
Federal Reserve Book Entry System, or to have segregated within the
custodian bank's vault, all securities held as collateral under repurchase
agreement transactions. Additionally, procedures have been established by
the Funds to monitor,
VISION MONEY MARKET FUNDS
- -------------------------------------------------------------------------------
on a daily basis, the market value of each repurchase agreement's
collateral to ensure that the value of collateral at least equals the
repurchase price to be paid under the repurchase agreement transaction.
The Funds will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are
deemed by the Funds' adviser to be creditworthy pursuant to the guidelines
and/or standards reviewed or established by the Board of Directors (the
"Directors"). Risks may arise from the potential inability of
counterparties to honor the terms of the repurchase agreement.
Accordingly, the Funds could receive less than the repurchase price on the
sale of collateral securities.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and
expenses are accrued daily. Bond premium and discount, if applicable, are
amortized as required by the Internal Revenue Code, as amended (the
"Code"). Distributions to shareholders are recorded on the ex-dividend
date.
FEDERAL TAXES--It is the Funds' policy to comply with the provisions of
the Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of their income. Accordingly, no
provisions for federal tax are necessary.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Funds may engage in
when-issued or delayed delivery transactions. The Funds record when-issued
securities on the trade date and maintain security positions such that
sufficient liquid assets will be available to make payment for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on
the settlement date.
USE OF ESTIMATES--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts of assets, liabilities,
expenses and revenues reported in the financial statements. Actual results
could differ from those estimated.
OTHER--Investment transactions are accounted for on the trade date.
VISION MONEY MARKET FUNDS
- -------------------------------------------------------------------------------
(3) CAPITAL STOCK
At October 31, 1998, there were 1,000,000,000 shares of $0.001 par value
capital stock authorized with respect to New York Tax-Free Money Market;
4,000,000,000 shares of $0.001 par value capital stock (2,000,000,000
authorized as to Class A Shares and 2,000,000,000 authorized as to Class S
Shares) authorized with respect to Money Market; and 4,000,000,000 shares of
$0.001 par value capital stock (2,000,000,000 authorized as to Class A Shares
and 2,000,000,000 authorized as to Class S Shares) authorized with respect to
Treasury Money Market. Capital paid-in for Money Market aggregated
$830,492,397, par value was $830,492; Treasury Money Market aggregated
$510,080,908, par value was $510,081, New York Tax-Free Money Market
aggregated $113,442,954, par value was $113,443. Transactions in capital stock
were as follows:
<TABLE>
<CAPTION>
MONEY MARKET
--------------------------------
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
CLASS A 1998 1998
- ---------------------------------------- --------------- ---------------
<S> <C> <C>
Shares sold 13,444,527,440 18,911,301,933
- ----------------------------------------
Shares issued to shareholders in payment
of distributions declared 7,265,209 14,408,441
- ----------------------------------------
Shares redeemed (13,325,472,117) (18,839,268,923)
- ---------------------------------------- --------------- ---------------
Net change resulting from Class A share
transactions 126,320,532 86,441,451
- ---------------------------------------- --------------- ---------------
<CAPTION>
MONEY MARKET
--------------------------------
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
CLASS S 1998 1998
- ---------------------------------------- --------------- ---------------
<S> <C> <C>
Shares sold 1,660,777,170 --
- ----------------------------------------
Shares issued to shareholders in payment
of distributions declared 3 --
- ----------------------------------------
Shares redeemed (1,642,864,001) --
- ---------------------------------------- --------------- ---------------
Net change resulting from Class S share
transactions 17,913,172 --
- ---------------------------------------- --------------- ---------------
Net change resulting from share
transactions 144,233,704 --
- ---------------------------------------- --------------- ---------------
</TABLE>
VISION MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TREASURY MONEY MARKET
-------------------------------
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
CLASS A 1998 1998
- ------------------------------------------- -------------- ---------------
<S> <C> <C>
Shares sold 8,731,926,794 13,346,041,424
- -------------------------------------------
Shares issued to shareholders in payment of
distributions declared 1,728,900 3,467,336
- -------------------------------------------
Shares redeemed (8,692,639,570) (13,281,571,255)
- ------------------------------------------- -------------- ---------------
Net change resulting from Class A share
transactions 41,016,124 67,937,505
- ------------------------------------------- -------------- ---------------
<CAPTION>
TREASURY MONEY MARKET
-------------------------------
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
CLASS S 1998 1998
- ------------------------------------------- -------------- ---------------
<S> <C> <C>
Shares sold 2,610,854,807 --
- -------------------------------------------
Shares issued to shareholders in payment of
distributions declared 3 --
- -------------------------------------------
Shares redeemed (2,583,212,168) --
- ------------------------------------------- -------------- ---------------
Net change resulting from Class S share
transactions 27,642,642 --
- ------------------------------------------- -------------- ---------------
Net change resulting from share
transactions 68,658,766 --
- ------------------------------------------- -------------- ---------------
<CAPTION>
NEW YORK TAX-FREE
MONEY MARKET
-------------------------------
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1998 1998
- ------------------------------------------- -------------- ---------------
<S> <C> <C>
Shares sold 1,187,888,223 1,153,995,180
- -------------------------------------------
Shares issued to shareholders in payment of
distributions declared 606,554 1,148,312
- -------------------------------------------
Shares redeemed (1,148,396,729) (1,138,416,526)
- ------------------------------------------- -------------- ---------------
Net change resulting from share
transactions 40,098,048 16,726,966
- ------------------------------------------- -------------- ---------------
</TABLE>
VISION MONEY MARKET FUNDS
- -------------------------------------------------------------------------------
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Manufacturers and Traders Trust Company, the Funds'
investment adviser (the "Adviser"), receives for its services an annual in-
vestment advisory fee equal to 0.50% of each Fund's average daily net assets.
The Adviser may voluntarily choose to waive any portion of its fee. The Ad-
viser can modify or terminate this voluntary waiver at any time at its sole
discretion.
SUB-ADVISORY FEE--Effective September 1, 1998, Federated Investment Counseling
(the "Sub-Adviser") is the sub-adviser to New York Tax-Free Money Market, and
receives for its services an allocable portion of the advisory fee the Adviser
receives from New York Tax-Free Money Market. The Sub-Adviser is paid by the
Adviser as follows: 0.20% on the first $100 million of average daily net
assets; 0.18% on the next $100 million of average daily net assets; and 0.15%
on average daily net assets over $200 million.
ADMINISTRATIVE, TRANSFER AND DIVIDEND DISBURSING AGENT AND FUND ACCOUNTING
FEE--Federated Services Company ("FServ") provides the Funds with certain ad-
ministrative personnel and fund accounting services. FServ through its subsid-
iary, Federated Shareholder Services Company, serves as transfer and dividend
disbursing agent for the Funds. The fee paid to FServ is based on the level of
average aggregate net assets of the Corporation for the period. FServ may vol-
untarily choose to waive a portion of its fee.
DISTRIBUTION SERVICES FEE--Under a distribution plan (the "Plan") adopted in
accordance with Rule 12b-1 under the Investment Company Act of 1940, the Class
S Shares of the Funds will compensate Federated Securities Corp. ("FSC"), the
principal distributor, from the net assets of the Class S Shares of the Funds,
to finance activities intended to result in the sale of Class S Shares of the
Funds. The Plan provides that Class S Shares of the Funds may incur distribu-
tion expenses up to 0.25% of the average daily net assets of Class S Shares of
the Funds, annually, to compensate FSC.
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services Agreement
with Manufacturers and Trader Trust Company, the Funds will pay Manufacturers
and Traders Trust Company up to 0.25% of average daily net assets of the Funds
for the period. The fee paid to Manufacturers and Traders Trust Company is
used to finance certain services for shareholders and to maintain shareholder
accounts. The Funds did not pay or accrue Shareholder Services Fees during the
period ending October 31, 1998.
GENERAL--Certain of the Officers of the Corporation are Officers and Directors
or Trustees of the above companies.
(5) CONCENTRATION OF CREDIT RISK
Since New York Tax-Free Money Market invests a substantial portion of its
assets in issuers located in one state, it will be more susceptible to factors
adversely affecting issuers of that state than would be a comparable tax-
exempt mutual fund that invests nationally. In order to reduce the credit risk
associated with such factors, at October 31, 1998, 60.6% of the securities in
the portfolio of investments are backed by letters of credit or bond insurance
of various financial institutions and financial guaranty
VISION MONEY MARKET FUNDS
- -------------------------------------------------------------------------------
assurance agencies. The value of investments insured by or supported (backed)
by a letter of credit from any one institution or agency did not exceed 12.8%
of total investments.
(6) YEAR 2000 (UNAUDITED)
Similar to other financial organizations, the Funds could be adversely
affected if the computer systems used by the Funds' service providers do not
properly process and calculate date-related information and data from and
after January 1, 2000. The Funds' Adviser and Administrator are taking
measures that they believe are reasonably designed to address the Year 2000
issue with respect to computer systems that they use and to obtain reasonable
assurances that comparable steps are being taken by each of the Funds' other
service providers. At this time, however, there can be no assurance that these
steps will be sufficient to avoid any adverse impact to the Funds.
DIRECTORS OFFICERS
- --------------------------------------------------------------------------------
Randall I. Benderson Edward C. Gonzales
President and Treasurer
Joseph J. Castiglia Beth S. Broderick
Vice President and Assistant Treasurer
Daniel R. Gernatt, Jr. Victor R. Siclari
Secretary
George K. Hambleton, Jr. C. Todd Gibson
Assistant Secretary
SHARES OF THE VISION FUNDS ARE NOT FDIC INSURED OR OTHERWISE PROTECTED BY THE
U.S. GOVERNMENT, ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF, OR GUARANTEED BY,
MANUFACTURERS AND TRADERS TRUST COMPANY ("M&T BANK"), AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Funds' prospectus which contains facts
concerning their objectives and policies, management fees, expenses and other
information.
- --------------------------------------------------------------------------------
[LOGO VISION GROUP OF FUNDS, INC.]
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
OCTOBER 31, 1998
VISION
Money Market
Fund
---------------------------
VISION
Treasury
Money Market
Fund
---------------------------
VISION
New York Tax-Free
Money Market
Fund
Federated Securities Corp.
Distributor
Federated Investors Tower
Pittsburgh, PA 15222-3779
Cusip 92830F307 Manufacturers and Traders Trust Company
Cusip 92830F109 Investment Adviser to the Funds
Cusip 92830F208 One M&T Plaza
1112503 (12/98) Buffalo, NY 14240-4556
[RECYCLED LOGO APPEARS HERE]
