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 funds.
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 Annual Report of the VISION money market funds for
the 12-month period from May 1, 1998 through April 30, 1999. 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 convenient, easy access to your money, and a
high degree of safety.* The following highlights summarize fund activity for the
12-month reporting period.
VISION MONEY MARKET FUND, a diversified portfolio of corporate and U.S.
government money market securities, paid dividends totaling $0.05 per share to
Class A Share investors and $0.04 per share to Class S Share investors. Assets
reached $949.3 million at the end of the reporting period.
VISION TREASURY MONEY MARKET FUND, which invests exclusively in U.S. Treasury
securities and repurchase agreements collateralized by such securities, paid
dividends totaling $0.04 per share to Class A Share investors and $0.04 per
share to Class S Share investors. Assets totaled $519.7 million at the end of
the reporting 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
dividends to New York City residents) totaling $0.03 per share.** Assets totaled
$110.3 million at the end of the reporting period.
Thank you for putting your cash to work--every day--through 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
June 15, 1999
*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 funds.
**Income may be subject to the federal alternative minimum tax.
VISION MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ------------------------------------------------- ------------
<C> <S> <C>
(A) CORPORATE OBLIGATIONS--85.8%
-------------------------------------------------------------
AUTOS--12.1%
-------------------------------------------------
$40,000,000 Daimler Chrysler NA Holdings Corp., 5.000%,
5/17/1999 $ 39,911,111
-------------------------------------------------
40,000,000 Ford Motor Credit Corp., 4.790%, 5/3/1999 39,989,356
-------------------------------------------------
35,000,000 General Motors Acceptance Corp., 4.730% 8/17/1999 34,503,350
------------------------------------------------- ------------
Total 114,403,817
------------------------------------------------- ------------
BANKING--4.6%
-------------------------------------------------
45,000,000 Toronto Dominion Holdings (USA), Inc., 4.780%,
11/5/1999 43,876,700
------------------------------------------------- ------------
CAPITAL EQUIPMENT & SERVICES--4.1%
-------------------------------------------------
40,000,000 Deere & Co., 4.800%, 11/16/1999 38,938,667
------------------------------------------------- ------------
CONSUMER BASICS--3.2%
-------------------------------------------------
30,000,000 (b)Colgate-Palmolive Co., (Series C), 4.860%,
5/25/1999 29,992,516
------------------------------------------------- ------------
DIVERSIFIED--4.1%
-------------------------------------------------
40,000,000 General Electric Capital Corp., 4.830%, 9/13/1999 39,275,500
------------------------------------------------- ------------
ENTERTAINMENT--3.6%
-------------------------------------------------
35,000,000 Disney (Walt) Co., 4.780%, 10/15/1999 34,223,914
------------------------------------------------- ------------
FINANCIAL RECEIVABLES--7.3%
-------------------------------------------------
30,000,000 Apreco, Inc., 4.850%, 5/11/1999 29,959,583
-------------------------------------------------
40,000,000 CIESCO, L.P., 4.830%, 5/18/1999 39,908,767
------------------------------------------------- ------------
Total 69,868,350
------------------------------------------------- ------------
FINANCIAL RETAIL--12.6%
-------------------------------------------------
40,000,000 American Express Credit Corp., 4.700%, 6/10/1999 39,791,111
-------------------------------------------------
40,000,000 (b)Associates Corp. of North America, 4.708%,
5/3/1999 40,000,000
-------------------------------------------------
40,000,000 Commercial Credit Co., 4.850%, 5/14/1999 39,929,944
------------------------------------------------- ------------
Total 119,721,055
------------------------------------------------- ------------
</TABLE>
VISION MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ------------------------------------------------- ------------
<C> <S> <C>
(A) CORPORATE OBLIGATIONS--CONTINUED
-------------------------------------------------------------
FINANCIAL SERVICES--4.2%
-------------------------------------------------
$40,000,000 (b)Morgan Stanley, Dean Witter & Co., 5.037%,
5/3/1999 $ 40,000,000
------------------------------------------------- ------------
FOOD & BEVERAGE--8.5%
-------------------------------------------------
45,000,000 Coca-Cola Co., 4.780%, 7/1/1999 44,635,525
-------------------------------------------------
35,800,000 Heinz (H.J.) Co., 4.810%, 5/26/1999 35,680,418
------------------------------------------------- ------------
Total 80,315,943
------------------------------------------------- ------------
INSURANCE--12.5%
-------------------------------------------------
35,000,000 American General Finance Corp., 4.820%, 6/24/1999 34,746,950
-------------------------------------------------
45,000,000 Prudential Funding Corp., 4.810%, 7/29/1999 44,464,887
-------------------------------------------------
40,000,000 Transamerica Corp., 4.790%, 6/7/1999 39,803,077
------------------------------------------------- ------------
Total 119,014,914
------------------------------------------------- ------------
OIL--9.0%
-------------------------------------------------
40,000,000 Chevron U.S.A., Inc., 4.810%, 5/4/1999 39,983,967
-------------------------------------------------
45,000,000 Texaco, Inc., 4.820%, 5/20/1999 44,885,525
------------------------------------------------- ------------
Total 84,869,492
------------------------------------------------- ------------
TOTAL CORPORATE OBLIGATIONS 814,500,868
------------------------------------------------- ------------
(A) U.S. GOVERNMENT AGENCIES--9.9%
-------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--4.2%
-------------------------------------------------
15,000,000 4.770%, 5/10/1999 14,982,113
-------------------------------------------------
25,000,000 4.470%, 9/22/1999 24,553,000
------------------------------------------------- ------------
Total 39,535,113
------------------------------------------------- ------------
FEDERAL HOME LOAN MORTGAGE CORPORATION--5.7%
-------------------------------------------------
25,000,000 4.760%, 6/4/1999 24,887,611
-------------------------------------------------
30,000,000 4.790%, 9/2/1999 29,505,033
------------------------------------------------- ------------
Total 54,392,644
------------------------------------------------- ------------
TOTAL U.S. GOVERNMENT AGENCIES 93,927,757
------------------------------------------------- ------------
</TABLE>
VISION MONEY MARKET FUND
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ---------------------------------------------- ------------
<C> <S> <C>
(C) REPURCHASE AGREEMENT--4.4%
----------------------------------------------------------
$41,976,500 State Street Bank and Trust Co., 4.830%, dated
4/30/1999, due 5/3/1999 $ 41,976,500
---------------------------------------------- ------------
TOTAL INVESTMENTS (AT AMORTIZED COST)(D) $950,405,125
---------------------------------------------- ------------
</TABLE>
(a) Each issue, with the exception of variable rate securities, shows the
coupon or rate of discount at the time of purchase, if applicable.
(b) Denotes variable rate securities which show current rate and next demand
date shown.
(c) The repurchase agreement is fully collateralized by U.S. Treasury
obligations based on market prices at April 30, 1999.
(d) Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($949,263,865) at April 30, 1999.
(See Notes which are an integral part of the Financial Statements)
VISION TREASURY MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------ ----------------------------------------------- ------------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS--47.2%
------------------------------------------------------------
U.S. TREASURY BILLS--17.2%
-----------------------------------------------
$ 90,000,000 4.200%-4.410%, 5/6/1999-8/19/1999 $ 89,426,861
----------------------------------------------- ------------
U.S. TREASURY NOTES--30.0%
-----------------------------------------------
155,000,000 5.750%-6.000%, 6/30/1999-11/15/1999 155,771,528
----------------------------------------------- ------------
TOTAL U.S. TREASURY OBLIGATIONS 245,198,389
----------------------------------------------- ------------
(A) REPURCHASE AGREEMENTS 52.9%
------------------------------------------------------------
25,000,000 CIBC Wood Gundy Securities Corp., 4.830%, dated
4/30/1999, due 5/3/1999 25,000,000
-----------------------------------------------
129,000,000 Credit Suisse First Boston Bank, 4.830%, dated
4/30/1999, due 5/3/1999 129,000,000
-----------------------------------------------
121,171,600 State Street Bank and Trust Co., 4.830%, dated
4/30/1999, due 5/3/1999 121,171,600
----------------------------------------------- ------------
TOTAL REPURCHASE AGREEMENTS 275,171,600
----------------------------------------------- ------------
TOTAL INVESTMENTS (AT AMORTIZED COST)(B) $520,369,989
----------------------------------------------- ------------
</TABLE>
(a) The repurchase agreements are fully collateralized by U.S. Treasury
obligations based on market prices at April 30, 1999.
(b) Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($519,701,090) at April 30, 1999.
(See Notes which are an integral part of the Financial Statements)
VISION NEW YORK TAX-FREE MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- ---------------------------------------- ----------- ------------
<C> <S> <C> <C>
(A) SHORT-TERM MUNICIPALS--98.6%
---------------------------------------------------
NEW YORK--96.8%
----------------------------------------
$2,550,000 Chautauqua County, NY IDA, IDR Bonds
Weekly VRDN (Belknap Business
Forms)/(KeyBank, N.A. LOC)/(AMT) A-1 $ 2,550,000
----------------------------------------
1,975,000 Dalton-Nunda, NY Central School
District, 3.40% BAN, 11/24/1999 NR 1,977,162
----------------------------------------
2,000,000 Dutchess County, NY IDA, (Series 1998-A) Weekly VRDN (Marist
College)/(Bank of
New York, New York LOC) A-1+ 2,000,000
----------------------------------------
2,325,000 Elmira City, NY, 4.00% BAN, 5/18/1999 MIG-1 2,325,420
----------------------------------------
2,125,000 Erie County, NY IDA, (Series 1998) Weekly VRDN (B & G Properties,
LLC)/(HSBC Bank USA LOC)/(AMT) A-1 2,125,000
----------------------------------------
4,000,000 Erie County, NY IDA, Health, Hospital.
Nursing Home Improvement Weekly VRDN
(Episcopal Church Home & Affiliates Life
Care Community, Inc.)/(Paribas, Paris
LOC) VMIG-1 4,000,000
----------------------------------------
1,042,000 Groton Central School District, NY,
3.35% BAN, 3/30/2000 NR 1,043,379
----------------------------------------
2,000,000 Half Hollow Hills Central School
District, NY, 4.00% TAN, 6/25/1999 MIG-1 2,001,310
----------------------------------------
2,000,000 Long Island Power Authority, Electric
System Subordinated Revenue Bonds
(Series 1) Weekly VRDN (Bayerische
Landesbank Girozentrale and Westdeutsche
Landesbank Girozentrale LOC) A-1+/VMIG-1 2,000,000
----------------------------------------
4,000,000 Long Island Power Authority, Floater
Certificates (Series 1998-66) Weekly
VRDN (MBIA INS)/(Morgan Stanley, Dean
Witter Municipal Funding, Inc. LIQ) A-1 4,000,000
----------------------------------------
1,800,000 Mayfield, NY Central School District,
3.45% BAN, 10/15/1999 NR 1,800,395
----------------------------------------
</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
---------------------------------------
$2,800,000 New York City Housing Development
Corp., (Series 1993A) Weekly VRDN
(Columbus Gardens)/(Citibank NA, New
York LOC) A-1+ $ 2,800,000
---------------------------------------
1,000,000 New York City Housing Development
Corp., (Series A) Weekly VRDN (Upper
Fifth Avenue)/(Bankers Trust Co., New
York LOC) VMIG-1 1,000,000
---------------------------------------
3,000,000 New York City Municipal Water Finance
Authority, Trust Receipts, Series 1998
FR/RI-10 Weekly VRDN (FSA INS)/(Bank of
New York, New York LIQ) A-1+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
VRDN (FGIC INS)/(FGIC Securities
Purchase, Inc. LIQ) A-1+/VMIG-1 1,000,000
---------------------------------------
2,400,000 New York City, NY IDA, Revenue Bonds
Weekly VRDN (Children's Oncology
Society)/(Bank of New York, New York
LOC) A-1+ 2,400,000
---------------------------------------
2,500,000 New York City, NY Transitional Finance
Authority, PT-1047 Weekly VRDN (Bank of
America NT and SA, San Francisco LIQ) A-1+c 2,500,000
---------------------------------------
3,000,000 New York City, NY, (PA-156) Weekly VRDN
(Merrill Lynch Capital Services, Inc.
LIQ)/(Merrill Lynch Capital Services,
Inc. LOC) A-1+c 3,000,000
---------------------------------------
2,000,000 New York State Dormitory Authority, PA-
60 (Series 1993) Weekly VRDN (Rochester
General Hospital)/(FHA INS)/(Merrill
Lynch Capital Services, Inc. LIQ) A-1+ 2,000,000
---------------------------------------
2,000,000 New York State Energy Research &
Development Authority, (Series B)
Weekly VRDN (Rochester Gas & Electric
Corp.)/(MBIA INS)/(Credit Suisse First
Boston LIQ) A-1+/VMIG-1 2,000,000
---------------------------------------
3,800,000 New York State Energy Research & Development Authority, Trust
Receipts, Series 1998 FR/RI-9 Weekly VRDN (Brooklyn Union Gas
Co.)/(MBIA
INS)/(Bank of New York, New York LIQ) A-1+c/VMIG-1 3,800,000
---------------------------------------
</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
----------------------------------------
$1,200,000 New York State Local Government
Assistance Corp., (Series E) Weekly VRDN
(Canadian Imperial Bank of Commerce LOC) A-1+/VMIG-1 $ 1,200,000
----------------------------------------
1,600,000 New York State Medical Care Facilities
Finance Agency Weekly VRDN (Pooled Loan
Program)/(Chase Manhattan Bank N.A., New
York LOC) VMIG-1 1,600,000
----------------------------------------
4,340,000 New York State Medical Care Facilities
Finance Agency, (1994 Series C) (PA-89)
Weekly VRDN (FHA INS)/(Merrill Lynch
Capital Services, Inc. LIQ) VMIG-1 4,340,000
----------------------------------------
2,000,000 New York State Mortgage Agency, (PA-422)
Weekly VRDN (Merrill Lynch Capital
Services, Inc. LIQ)/(AMT) VMIG-1 2,000,000
----------------------------------------
1,500,000 New York State Mortgage Agency, (PA-406)
Weekly VRDN (Merrill Lynch Capital
Services, Inc. LIQ)/(AMT) VMIG-1 1,500,000
----------------------------------------
1,360,000 New York State Power Authority, 2.90%
TOB (Bank of America NT and SA, San
Francisco, Bank of Tokyo-Mitsubishi Ltd.
and Morgan Guaranty Trust Co., New York
LIQ), Optional Tender 9/1/1999 A-1/VMIG-1 1,360,000
----------------------------------------
1,700,000 Niagara County, NY IDA, Solid Waste
Disposal Facility Revenue bonds (Series
1996D) Weekly VRDN (American Ref-Fuel
Co.)/(Wachovia Bank of NC, N.A.,
Winston-Salem LOC)/(AMT) A-1+/P-1 1,700,000
----------------------------------------
1,800,000 Niagara Falls, NY Bridge Commission,
Revenue Bonds (Series 1993A) Weekly VRDN
(FGIC INS)/(Credit Local de France LIQ) A-1+/VMIG-1 1,800,000
----------------------------------------
4,000,000 Northport-East Northport, NY Unified
Free School District, GO UT Notes, 4.00%
TAN, 6/30/1999 MIG-1 4,002,535
----------------------------------------
1,000,000 Odessa-Montour, NY Central School
District, 3.25% BAN, 11/17/1999 NR 1,000,477
----------------------------------------
1,600,000 Oriskany, NY Central School District,
3.50% BAN, 12/8/1999 NR 1,602,809
----------------------------------------
2,000,000 Portville, NY Central School District,
3.50% BAN, 10/20/1999 NR 2,000,905
----------------------------------------
</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
---------------------------------------
$1,500,000 Riverhead, NY IDA, IDRB (Series 1998) Weekly VRDN (Altaire
Pharmaceuticals, Inc.)/(Mellon Bank N.A., Pittsburgh
LOC)/(AMT) A-1/P-1 $ 1,500,000
---------------------------------------
2,000,000 Sachem, NY Central School District at
Holbrook, 4.00% TAN, 6/25/1999 MIG-1 2,001,017
---------------------------------------
980,000 Senaca County, NY IDA Weekly VRDN (New
York Chiropractic College)/(Fleet Bank
N.A. LOC) A-1 980,000
---------------------------------------
4,000,000 Smithtown, NY Central School District,
GO UT, 3.90% TAN, 6/25/1999 MIG-1 4,001,691
---------------------------------------
1,750,000 South Huntington, NY Union Free School
District, GO UT Notes, 3.90% TAN,
6/30/1999 MIG-1 1,750,912
---------------------------------------
5,750,000 St. Lawrence County, NY IDA, (Series
1998A) Weekly VRDN (Alcoa, Inc.)/(AMT) A-1 5,750,000
---------------------------------------
3,000,000 Triborough Bridge & Tunnel Authority,
NY, Floater Certificates (Series 1998-
72) Weekly VRDN (FGIC INS)/(Morgan
Stanley, Dean Witter Municipal Funding,
Inc. LIQ) A-1 3,000,000
---------------------------------------
8,415,000 Triborough Bridge & Tunnel Authority,
NY, Trust Receipts (Series 1998 FR/RI-
A1) Weekly VRDN (Bayerische Hypotheken-
und Vereinsbank AG LIQ) VMIG-1 8,415,000
---------------------------------------
1,300,000 VRDC/IVRC Trust, (Series 1993G) Weekly
VRDN (St. Lukes Roosevelt Hospital
Center)/(FHA INS)/(Hong Kong & Shanghai
Banking Corp. LIQ) A-1 1,300,000
---------------------------------------
1,715,000 Yonkers, NY IDA, Civic Facility Revenue
Bonds, (Series 1994) Weekly VRDN
(Consumers Union Facility)/ (AMBAC
INS)/(Credit Local de France LIQ) A-1+/VMIG-1 1,715,000
---------------------------------------
2,875,000 Yorkshire-Pioneer, NY Central School
District, 3.50% BAN, 10/27/1999 NR 2,878,003
--------------------------------------- ------------
Total 106,721,015
--------------------------------------- ------------
</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
------------------------------------------------------
PUERTO RICO--1.8%
-------------------------------------------
$2,031,469 Commonwealth of Puerto Rico Municipal
Revenues Collection Center, 1997A LeaseTOPS
Trust Weekly VRDN (ABN AMRO Bank N.V.,
Amsterdam LIQ)/(State Street Bank and Trust
Co. LOC) A-1+c $ 2,031,469
------------------------------------------- ------------
TOTAL INVESTMENTS (AT AMORTIZED COST)(B) $108,752,484
------------------------------------------- ------------
</TABLE>
(a) At April 30, 1999, 15.7% of the total investments at market value were
subject 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
($110,290,554) at April 30, 1999.
The following acronyms are used throughout this portfolio:
AMBAC--American Municipal Bond IDRB--Industrial Development Revenue
Assurance Corporation Bond
AMT--Alternative Minimum Tax INS--Insured
BAN--Bond Anticipation Notes LIQ--Liquidity Agreement
FGIC--Financial Guaranty Insurance Company LOC--Letter of Credit
FHA--Federal Housing Administration MBIA--Municipal Bond Investors
FSA--Financial Security Assurance Assurance
GO--General Obligation TAN--Tax Anticipation Notes
IDA--Industrial Development Authority TOB--Tender Option Bonds
IDR--Industrial Development Revenue UT--Unlimited Tax
VRDN--Variable Rate Demand Notes
(See Notes which are an integral part of the Financial Statements)
VISION MONEY MARKET FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW YORK
TREASURY TAX-FREE
MONEY MONEY MONEY
MARKET MARKET MARKET
FUND FUND FUND
- -------------------------------------- ------------ ------------ ------------
<S> <C> <C> <C>
ASSETS:
- --------------------------------------
Investments in securities $908,428,625 $245,198,389 $108,752,484
- --------------------------------------
Investments in repurchase agreements 41,976,500 275,171,600 --
- -------------------------------------- ------------ ------------ ------------
Total investments, at amortized cost
and value 950,405,125 520,369,989 108,752,484
- --------------------------------------
Cash 1,524,088 362,251 598,795
- --------------------------------------
Income receivable 521,354 1,310,220 1,104,369
- --------------------------------------
Receivable for shares sold 3,000,847 503,609 418,150
- -------------------------------------- ------------ ------------ ------------
Total assets 955,451,414 522,546,069 110,873,798
- --------------------------------------
LIABILITIES:
- --------------------------------------
Income distribution payable 1,738,944 1,883,976 132,860
- --------------------------------------
Payable for shares redeemed 4,391,897 866,848 412,302
- --------------------------------------
Accrued expenses 56,708 94,155 38,082
- -------------------------------------- ------------ ------------ ------------
Total liabilities 6,187,549 2,844,979 583,244
- -------------------------------------- ------------ ------------ ------------
NET ASSETS $949,263,865 $519,701,090 $110,290,554
- -------------------------------------- ------------ ------------ ------------
CLASS A SHARES $932,895,947 $498,547,650 --
- -------------------------------------- ------------ ------------ ------------
CLASS S SHARES $ 16,367,918 $ 21,153,440 --
- -------------------------------------- ------------ ------------ ------------
NET ASSET VALUE, Offering Price and
Redemption Proceeds Per Share: -- -- $1.00
- -------------------------------------- ------------ ------------ ------------
CLASS A SHARES $1.00 $1.00 --
- -------------------------------------- ------------ ------------ ------------
CLASS S SHARES $1.00 $1.00 --
- -------------------------------------- ------------ ------------ ------------
SHARES OUTSTANDING: 949,263,865 519,701,090 110,290,554
- -------------------------------------- ------------ ------------ ------------
CLASS A SHARES 932,895,947 498,547,650 --
- -------------------------------------- ------------ ------------ ------------
CLASS S SHARES 16,367,918 21,153,440 --
- -------------------------------------- ------------ ------------ ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
VISION MONEY MARKET FUNDS
STATEMENTS OF OPERATIONS
YEAR ENDED APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW YORK
TAX-FREE
TREASURY MONEY
MONEY MONEY MARKET
MARKET FUND MARKET FUND FUND
- -------------------------------------- ----------- ----------- ----------
<S> <C> <C> <C>
INVESTMENT INCOME:
- --------------------------------------
Interest $43,440,709 $29,577,077 $3,500,074
- -------------------------------------- ----------- ----------- ----------
EXPENSES:
- --------------------------------------
Investment advisory fee 4,118,744 2,915,638 534,508
- --------------------------------------
Administrative personnel and services
fee 1,080,946 763,444 139,543
- --------------------------------------
Custodian fees 28,446 23,683 3,936
- --------------------------------------
Transfer and dividend disbursing agent
fees and expenses 112,131 20,308 22,204
- --------------------------------------
Directors' fees 9,820 10,979 540
- --------------------------------------
Auditing fees 11,220 13,381 18,883
- --------------------------------------
Legal fees 1,671 5,026 7,344
- --------------------------------------
Portfolio accounting fees 2,598 907 1,117
- --------------------------------------
Distribution services fee--Class S
Shares 35,601 55,740 --
- --------------------------------------
Share registration costs 110,487 30,101 17,834
- --------------------------------------
Printing and postage 18,080 18,713 10,593
- --------------------------------------
Taxes 71,174 76,043 8,300
- --------------------------------------
Insurance premiums 4,502 5,839 3,147
- --------------------------------------
Miscellaneous 11,211 11,255 6,564
- -------------------------------------- ----------- ----------- ----------
TOTAL EXPENSES 5,616,631 3,951,057 774,513
- -------------------------------------- ----------- ----------- ----------
Waivers--
- --------------------------------------
Waiver of investment advisory fee (402,495) (466,502) (154,452)
- -------------------------------------- ----------- ----------- ----------
TOTAL WAIVERS (402,495) (466,502) (154,452)
- -------------------------------------- ----------- ----------- ----------
NET EXPENSES 5,214,136 3,484,555 620,061
- -------------------------------------- ----------- ----------- ----------
NET INVESTMENT INCOME $38,226,573 $26,092,522 $2,880,013
- -------------------------------------- ----------- ----------- ----------
</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
---------------------------------- ---------------------------------- --------------------------------
YEAR ENDED APRIL 30, YEAR ENDED APRIL 30, YEAR ENDED APRIL 30,
---------------------------------- ---------------------------------- --------------------------------
1999 1998 1999 1998 1999 1998
- ----------------- ---------------- ---------------- ---------------- ---------------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE
(DECREASE) IN NET
ASSETS
- -----------------
OPERATIONS--
- -----------------
Net investment
income $ 38,226,573 $ 31,609,180 $ 26,092,522 $ 22,863,741 $ 2,880,013 $ 2,406,152
- ----------------- ---------------- ---------------- ---------------- ---------------- --------------- ---------------
DISTRIBUTIONS TO
SHAREHOLDERS--
- -----------------
Distributions
from net
investment
income -- (31,609,180) -- (22,863,741) (2,880,013) (2,406,152)
- -----------------
Class A Shares (37,596,521) -- (25,161,937) -- -- --
- -----------------
Class S Shares (630,052) -- (930,585) -- -- --
- ----------------- ---------------- ---------------- ---------------- ---------------- --------------- ---------------
Change in net
assets resulting
from
distributions to
shareholders (38,226,573) (31,609,180) (26,092,522) (22,863,741) (2,880,013) (2,406,152)
- ----------------- ---------------- ---------------- ---------------- ---------------- --------------- ---------------
SHARE
TRANSACTIONS--
- -----------------
Proceeds from
sales of shares 32,639,564,017 18,911,301,933 22,444,386,554 13,346,041,424 2,421,854,703 1,153,995,180
- -----------------
Net asset value
of shares issued
to shareholders
in payment of
distributions
declared 18,193,256 14,408,441 3,328,592 3,467,336 1,525,141 1,148,312
- -----------------
Cost of shares
redeemed (32,394,752,101) (18,839,268,923) (22,369,436,198) (13,281,571,255) (2,386,434,196) (1,138,416,526)
- ----------------- ---------------- ---------------- ---------------- ---------------- --------------- ---------------
Change in net
assets from
share
transactions 263,005,172 86,441,451 78,278,948 67,937,505 36,945,648 16,726,966
- ----------------- ---------------- ---------------- ---------------- ---------------- --------------- ---------------
Change in net
assets 263,005,172 86,441,451 78,278,948 67,937,505 36,945,648 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 $ 949,263,865 $ 686,258,693 $ 519,701,090 $ 441,422,142 $ 110,290,554 $ 73,344,906
- ----------------- ---------------- ---------------- ---------------- ---------------- --------------- ---------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
VISION MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR NET ASSET VALUE, NET DISTRIBUTIONS TO NET ASSET
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
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
1999 $1.00 0.05 (0.05) $1.00
MONEY MARKET FUND S SHARES
1999(a) $1.00 0.04 (0.04) $1.00
TREASURY MONEY MARKET FUND A SHARES
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
1999 $1.00 0.04 (0.04) $1.00
TREASURY MONEY MARKET FUND S SHARES
1999(a) $1.00 0.04 (0.04) $1.00
NEW YORK TAX-FREE MONEY MARKET FUND
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
1999 $1.00 0.03 (0.03) $1.00
- ------------------------------------------------------------------------------
</TABLE>
(a) Reflects operations for the period from June 8, 1998 (date of initial public
investment) to April 30, 1999.
(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) During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
(See Notes which are an integral part of the Financial Statements)
VISION MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS--CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
--------------------------------------------------------
NET
NET INVESTMENT NET ASSETS,
TOTAL INVESTMENT EXPENSES INCOME END OF PERIOD
RETURN(B) EXPENSES (D) INCOME(D) (AFTER WAIVERS) (AFTER WAIVERS) (000 OMITTED)
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
4.77% 0.70% 4.61% 0.51% 4.80% $431,316
5.33% 0.69% 5.08% 0.58% 5.19% $489,229
4.93% 0.71% 4.67% 0.61% 4.77% $599,817
5.11% 0.69% 4.95% 0.64% 5.00% $686,259
4.76% 0.68% 4.59% 0.63% 4.64% $932,896
3.98% 0.93%(c) 4.37%(c) 0.88%(c) 4.42%(c) $ 16,368
4.57% 0.70% 4.34% 0.51% 4.53% $210,526
5.25% 0.66% 5.01% 0.57% 5.10% $372,884
4.82% 0.68% 4.65% 0.58% 4.75% $373,485
4.98% 0.67% 4.88% 0.59% 4.96% $441,422
4.54% 0.67% 4.41% 0.59% 4.49% $498,548
3.77% 0.92%(c) 4.09%(c) 0.84%(c) 4.17%(c) $ 21,153
2.84% 0.92% 2.24% 0.40% 2.76% $ 41,238
3.20% 0.86% 2.76% 0.48% 3.14% $ 65,763
2.96% 0.85% 2.60% 0.50% 2.95% $ 56,618
3.14% 0.78% 2.81% 0.50% 3.09% $ 73,345
2.75% 0.72% 2.55% 0.58% 2.69% $110,291
- ---------------------------------------------------------------------------------
</TABLE>
VISION MONEY MARKET FUNDS
COMBINED NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1999
- -------------------------------------------------------------------------------
(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 nine portfolios (individ-
ually 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 Money Market Fund ("Money Seeks current income with liquidity and
Market") (d) 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") (d) 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") (n) income tax
as is consistent with liquidity and relative
stability of principal.
</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 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, 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.
(3) CAPITAL STOCK
At April 30, 1999, there were 4,000,000,000 shares of $0.001 par value capital
stock (2,000,000,000 authorized as to Class A and 2,000,000,000 authorized as to
Class S shares) authorized with respect to 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
Treasury Money Market; and 1,000,000,000 shares of $0.001 par value capital
stock authorized with respect to New York Tax-Free Money Market. Capital paid-in
for Money Market aggregated $949,263,865, par value was $949,264; Treasury Money
Market aggregated $519,701,090, par value was $519,701, New York Tax-Free Money
Market aggregated $110,290,554, par value was $110,291. Transactions in capital
stock were as follows:
<TABLE>
<CAPTION>
MONEY MARKET
--------------------------------
YEAR ENDED APRIL 30,
--------------------------------
<S> <C> <C>
CLASS A 1999 1998
- ------------------------------------------- --------------- ---------------
Shares sold 29,012,257,251 18,911,301,933
- -------------------------------------------
Shares issued to shareholders in payment of
distributions declared 18,193,247 14,408,441
- -------------------------------------------
Shares redeemed (28,783,813,244) (18,839,268,923)
- ------------------------------------------- --------------- ---------------
Net change resulting from Class A Share
transactions 246,637,254 86,441,451
- ------------------------------------------- --------------- ---------------
<CAPTION>
MONEY MARKET
--------------------------------
PERIOD ENDED YEAR ENDED
APRIL 30 APRIL 30
<S> <C> <C>
CLASS S 1999(A) 1998
- ------------------------------------------- --------------- ---------------
Shares sold 3,627,306,766 --
- -------------------------------------------
Shares issued to shareholders in payment of
distributions declared 9 --
- -------------------------------------------
Shares redeemed (3,610,938,857) --
- ------------------------------------------- --------------- ---------------
Net change resulting from Class S Share
transactions 16,367,918 --
- ------------------------------------------- --------------- ---------------
Net change resulting from share
transactions 263,005,172 86,441,451
- ------------------------------------------- --------------- ---------------
<CAPTION>
TREASURY MONEY MARKET
--------------------------------
YEAR ENDED APRIL 30,
--------------------------------
CLASS A 1999 1998
- ------------------------------------------- --------------- ---------------
<S> <C> <C>
Shares sold 16,764,115,227 13,346,041,424
- -------------------------------------------
Shares issued to shareholders in payment of
distributions declared 3,328,583 3,467,336
- -------------------------------------------
Shares redeemed (16,710,318,302) (13,281,571,255)
- ------------------------------------------- --------------- ---------------
Net change resulting from Class A Share
transactions 57,125,508 67,937,505
- ------------------------------------------- --------------- ---------------
</TABLE>
(a) Reflects operations for the period from June 8, 1998 (date of initial public
investment) to April 30, 1999.
<TABLE>
<CAPTION>
TREASURY MONEY MARKET
------------------------------
PERIOD ENDED YEAR ENDED
APRIL 30 APRIL 30
<S> <C> <C>
CLASS S 1999(A) 1998
- ---------------------------------------------- -------------- --------------
Shares sold 5,680,271,327 --
- ----------------------------------------------
Shares issued to shareholders in payment of
distributions declared 9 --
- ----------------------------------------------
Shares redeemed (5,659,117,896) --
- ---------------------------------------------- -------------- --------------
Net change resulting from Class S Share
transactions 21,153,440 --
- ---------------------------------------------- -------------- --------------
Net change resulting from share transactions 78,278,948 67,937,505
- ---------------------------------------------- -------------- --------------
<CAPTION>
NEW YORK TAX-FREE
MONEY MARKET
------------------------------
YEAR ENDED APRIL 30,
------------------------------
1999 1998
- ---------------------------------------------- -------------- --------------
<S> <C> <C>
Shares sold 2,421,854,703 1,153,995,180
- ----------------------------------------------
Shares issued to shareholders in payment of
distributions declared 1,525,141 1,148,312
- ----------------------------------------------
Shares redeemed (2,386,434,196) (1,138,416,526)
- ---------------------------------------------- -------------- --------------
Net change resulting from share transactions 36,945,648 16,726,966
- ---------------------------------------------- -------------- --------------
</TABLE>
(a) Reflects operations for the period from June 8, 1998 (date of initial public
investment) to April 30, 1999.
(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
investment 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 Adviser
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") became 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
administrative personnel and fund accounting services. FServ through its
subsidiary, 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 voluntarily 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 Act, 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 distribution 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 Traders Trust Company, the Funds may pay Manufacturers
and Traders Trust Company up to 0.25% of average daily net assets of the Funds
annually. 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 year ended
April 30, 1999.
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-ex-
empt mutual fund that invests nationally. In order to reduce the credit risk
associated with such factors, at April 30, 1999, 54.1% 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 exceed 9.0% 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.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
- -------------------------------------------------------------------------------
To the Board of Directors and Shareholders of VISION GROUP OF FUNDS, INC.:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of the Vision Money Market Fund, Vision Treasury
Money Market Fund, and Vision New York Tax-Free Money Market Fund (three of the
portfolios constituting the Vision Group of Funds, Inc.), as of April 30, 1999,
and the related statements of operations for the year then ended, the statements
of changes in net assets for each of the two years in the period then ended, and
financial highlights for each of the periods presented therein. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of April
30, 1999, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Vision Money Market Fund, Vision Treasury Money Market Fund, and Vision New York
Tax-Free Money Market Fund, at April 30, 1999, the results of their operations
for the year then ended, the changes in their net assets for each of the two
years in the period then ended, and the financial highlights for each of the
periods presented therein, in conformity with generally accepted accounting
principles.
Boston, Massachusetts
June 11, 1999
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.
Federated Securities Corp., Distributor
Federated Investors Tower
Pittsburgh, PA 15222-3779
Cusip 92830F307
Cusip 92830F877
Cusip 92830F109
Cusip 92830F885
Cusip 92830F208
[RECYCLED LOGO APPEARS HERE]
G00158-06 (6/99)
ANNUAL REPORT
TO SHAREHOLDERS
APRIL 30, 1999
VISION
Money Market
Fund
Class A Shares
Class S Shares
-------------------------------------
VISION
Treasury
Money Market
Fund
Class A Shares
Class S Shares
-------------------------------------
VISION
New York Tax-Free
Money Market
Fund
Manufacturers and Traders Trust Company
Investment Adviser to the Funds
One M&T Plaza
Buffalo, NY 14240-4556
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 funds.
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 Annual Report of the VISION equity and income funds
for the 12-month period from May 1, 1998 through April 30, 1999. This report
begins with a discussion by each fund's management about the economy, the
market, and fund strategies over the reporting period. Next, you'll find a
complete list of portfolio holdings and financial statements for each fund.
Over the 12-month reporting period, the stock market continued its upward
momentum accompanied by a high degree of day-to-day volatility, with performance
concentrated in a very narrow band of large-company growth stocks and
Internet-related stocks. The bond market recorded moderately positive returns.
For more in-depth information on the year's investment climate, I urge you to
read the portfolio managers' investment reviews. Fund-by-fund performance
highlights are as follows:
VISION U.S. GOVERNMENT SECURITIES FUND
The fund's portfolio of U.S. government securities paid dividends totaling $0.58
per share and capital gains totaling $0.02 per share, while the fund's net asset
value declined $0.10. As a result, the fund achieved a total return on April 30,
1999 of 5.31%, based on net asset value, or 0.60% adjusted for the fund's sales
charge.* At the end of the reporting period, the fund's assets totaled $64.1
million.
VISION NEW YORK MUNICIPAL INCOME FUND
The fund's portfolio of high-quality, New York municipal bonds paid tax-free
income distributions totaling $0.46 per share and capital gains totaling $0.09
per share.** The fund's net asset value rose $0.10. As a result, the fund
achieved a total return on April 30, 1999 of 6.37%, based on net asset value, or
1.59% adjusted for the fund's sales charge.* By the end of the reporting period,
tax-sensitive New York residents had invested a total of $52.9 million in the
fund.
VISION EQUITY INCOME FUND
This fund offers a relatively conservative way to navigate toward income and
capital appreciation from undervalued, large-capitalization stocks with
above-average dividend yields. It produced a total return on April 30, 1999 of
8.59%,* based on net asset value, or 2.60%* adjusted for the fund's sales
charge, through dividends totaling $0.19 per share, capital gains totaling $0.01
per share and a net asset value increase of $0.77. The fund's assets reached
$45.6 million at the end of the reporting period.
VISION GROWTH AND INCOME FUND
In a narrow stock market that favored large-cap growth stocks, the fund's
portfolio of quality, value stocks issued by mid-size companies produced a
negative total return on April 30, 1999 of (9.26%), based on net asset value, or
(14.26%) adjusted for the fund's sales charge.* The fund paid dividends totaling
$0.07 per share and capital gains totaling $0.99 per share. The fund's assets
totaled $82.2 million at the end of the reporting period.
*Performance quoted represents 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 CAPITAL APPRECIATION FUND
The fund's relatively aggressive portfolio of stocks issued by mid-size
companies was also negatively impacted by investor sentiment that favored stocks
issued by large, growth-oriented companies. In this environment, the fund
produced a negative total return on April 30, 1999 of (22.67%), based on net
asset value, or (26.92%) adjusted for the fund's sales charge.* The fund paid
capital gains totaling $0.38 per share. The fund's assets totaled $31.3 million
at the end of the reporting period.
Thank you for choosing one or more of the VISION equity and income funds to
pursue your financial goals. We'll continue to keep you up-to-date on your
progress.
Sincerely,
Edward C. Gonzales
President
June 15, 1999
*Performance quoted represents 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
Yields on U.S. fixed income securities fell during the Vision U.S. Government
Securities Fund's fiscal year. On April 30, 1998, the yield of the U.S. Treasury
ten-year note was 5.68%. The ten-year note yield peaked on May 11, 1998 at
5.79%, reached a low of 4.16% on October 5, 1998, then increased to end the
reporting period at 5.36% on April 30, 1999.
What happened in 1998 and early 1999? The federal funds target rate opened in
1998 at 5.50% and remained at that level until September 29, 1998, when the
Federal Reserve Board (the "Fed") lowered the target rate to 5.25%. The Fed
subsequently lowered the target rate by 25 basis points two more times. The
first cut occurred on October 15, 1998, and the second one took place on No-
vember 17, 1998, which translated into a 4.75% target level. This level has
remained in effect to date. The Fed acted to supply liquidity to a financial
system that was coping with spillover effects of the Asian crisis, including
financial instability in Russia and Brazil. Highly-levered hedge funds with
susceptible trading exposure threatened a chain reaction of instability. Despite
uncertain global economic and financial conditions, U.S. economic growth over
the past year has been relatively strong. The year-over-year percentage change
for the chain-weighted real Gross Domestic Product for the quarter ended March
31, 1999 was a healthy 4.00%. This growth rate was higher than the 2.0% - 2.5%
rate that is generally recognized as the Fed's non-inflation threatening rate of
economic growth. However, the year-over-year percentage change in the consumer
price index (CPI) for the year ended April 30, 1999 remained relatively low at
1.70%. Increases in productivity have allowed this faster-paced growth to occur
without considerable inflation. Looking forward, a key topic of debate in the
fixed income market is whether the best news on inflation is already behind us.
Commodity prices have stopped falling and there are some signs of economic life
in some of 1998's troubled countries. Additionally, the recent strength in U.S.
economic growth has led to relatively tight labor markets. Tight labor markets
increase the susceptibility of the economy to labor shortages and bottlenecks
which could prove inflationary. Continued gains in productivity combined with
excess global capacity should help to keep inflation in check. Both real and
nominal interest rates remain attractive as long as inflation rates remain
subdued.
The fund posted a 5.31% total return on a net asset value basis (0.60% adjusted
for the fund's sales charge)* for the one year period ended April 30, 1999. The
corresponding one year number for the Lipper General Government Index was 5.12%,
and the Morningstar General U.S. Government Bond Average one year total return
was 5.18%.** The fund's duration was slightly longer than the market average. We
continued to emphasize government-guaranteed securities with yield advantages,
and thus higher current income, compared to U.S. Treasury securities. In the
mortgage-backed security sector, we continued our emphasis on very old, low
balance mortgages in an attempt to diminish prepayment risk. During the
liquidity panic in the fall of 1998, we increased our portfolio weighting of
under-performing "spread product": U.S. agency, corporate and taxable municipal
bonds. During the first four months of 1999 these sectors substantially
out-performed U.S. Treasuries, as market greed incrementally replaced market
fear. We adhered to our disciplined, contrarian methodology by selling the more
expensive opportunity (spread product) and purchasing the less expensive
relative safety (U.S. Treasuries).
*Performance quoted represents 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 and Morningstar figures represent the average of the total
returns reported by all of the mutual funds designated by Lipper Analytical
Services, Inc. and Morningstar, Inc. as falling into the respective
categories indicated. Lipper figures and Morningstar figures do not reflect
sales charges.
VISION NEW YORK MUNICIPAL INCOME FUND
Yields on municipal tax-free securities fell during the Vision New York
Municipal Income Fund's fiscal year. On April 30, 1998, the yield of the Bond
Buyer 40 Index* (the "Bond Buyer 40") (yield to maturity basis) was 5.39%. The
index yield peaked on April 30, 1998 at 5.39%, reached a low of 4.95% on October
5, 1998, then increased to end the reporting period at 5.28% on April 30, 1999.
Measured as a percentage of the U.S. 30 year Treasury yield, the Bond Buyer 40
yield-to-maturity index ranged between 88.3% on May 14, 1998 to 105.3% on Oc-
tober 5, 1998.
What happened in 1998 and early 1999? The federal funds target rate opened in
1998 at 5.50% and remained at that level until September 29, 1998, when the
Federal Reserve Board (the "Fed") lowered the target rate to 5.25%. The Fed
subsequently lowered the target rate by 25 basis points two more times. The
first cut occurred on October 15, 1998, and the second one took place on No-
vember 17, 1998, which translated into a 4.75% target level. This level has
remained in effect to date. The Fed acted to supply liquidity to a financial
system that was coping with spillover effects of the Asian crisis, including
financial instability in Russia and Brazil. Highly-levered hedge funds with
susceptible trading exposure threatened a chain reaction of instability. Despite
uncertain global economic and financial conditions, U.S. economic growth over
the past year has been relatively strong. The year-over-year percentage change
for the chain-weighted real Gross Domestic Product for the quarter ended March
31, 1999 was a healthy 4.00%. This growth rate was higher than the 2.0% - 2.5%
rate that is generally recognized as the Fed's non-inflation threatening rate of
economic growth. However, the year-over-year percentage change in the consumer
price index (CPI) for the year ended April 30, 1999 remained relatively low at
1.70%. Increases in productivity have allowed this faster-paced growth to occur
without considerable inflation. Looking forward, a key topic of debate in the
fixed income market is whether the best news on inflation is already behind us.
Commodity prices have stopped falling and there are some signs of economic life
in some of 1998's troubled countries. Additionally, the recent strength in U.S.
economic growth has led to relatively tight labor markets. Tight labor markets
increase the susceptibility of the economy to labor shortages and bottlenecks
which could prove inflationary. Continued gains in productivity combined with
excess global capacity should help to keep inflation in check. Both real and
nominal interest rates remain attractive as long as inflation rates remain
subdued.
The fund posted a 6.37% total return on a net asset value basis (1.59% adjusted
for the fund's sales charge)** for the one year period ended April 30, 1999. The
corresponding one year number for the Lipper New York Municipal Index was 6.25%,
and the Morningstar New York Municipal Bond Funds Average one year total return
was 6.17%.*** Municipal securities underperformed U.S. Treasury securities
during the "liquidity crisis" rally that culminated on October 5, 1998. Munis
have outperformed Treasuries since October 5, 1998, as fear of financial
instabil- ity has abated. As noted above, the entire trading range of the Bond
Buyer 40 yield to maturity index for the fund's fiscal year was 49 basis points.
In the current environment of reduced interest rate volatility, we continue to
empha- size securities that provide higher current income. Unlike the U.S.
Treasury yield curve, the New York municipal yield curve has a decent upward
slope. We currently favor 20 year munis because they are yielding more than 100
basis points above 5 year munis. We also favor higher quality securities (AAA
and AA) since current yield spreads on lower rated securities (BBB) are not
suffi- cient relative to the risks assumed.
*The Bond Buyer 40 Bond Index is comprised of 40 actively quoted and traded
long-term municipal bonds. This index is unmanaged, and investments cannot be
made in an index.
**Performance quoted represents 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 and Morningstar figures represent the average of the total
returns reported by all of the mutual funds designated by Lipper Analytical
Services, Inc. and Morningstar, Inc. as falling into the respective
categories indicated. Lipper figures and Morningstar figures do not reflect
sales charges.
VISION EQUITY INCOME FUND
For the twelve month period ended April 30, 1999, the Vision Equity Income Fund
has returned 8.59%, based on net asset value, or 2.60% adjusted for the fund's
sales charge.* This compares to the 13.02% 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 7.60%.***
Your fund is continuing its contrarian investment strategy of seeking out-of-
favor large cap stocks offering above average dividend yields. This has allowed
the fund to collect an "outsized yield" on its investments while waiting for
earnings prospects and market psychology to improve for these "unloved" issues.
This strategy has led the fund into cyclical stocks such as Cummins Engine,
Inc., a maker of heavy-duty truck engines, Reynolds Metals, a major producer of
aluminum and aluminum products, and USX-U.S. Steel Group, the steel producer.
These companies have been out of favor on Wall Street for several years but now
the "Street" is reevaluating them.
The economic turmoil in Asia has been quite prominent in the thoughts of
financial market players for almost two years, but now, however, things are
looking up. Markets often "over shoot", expecting bad things to become worse
than they eventually do, while expecting good times to keep getting better and
last longer than ultimately happens. Thus, true to form, many economies in Asia
are showing signs of life (the most notable exception being Japan) and the fears
of contagion, Asian weakness spreading to other developing countries, now seem
overblown. Market participants are now thinking that, perhaps things will not
get as bad as the market earlier expected, and stock prices of U.S. companies
doing business overseas are recovering some of their earlier losses.
The U.S. economy remains healthy, with inflation and unemployment at moderately
low levels. Fears of weaker corporate profits in a potentially less robust U.S.
economic environment have worried investors. Business investment remains strong,
with equipment expenditures at cyclical highs. We would suspect, however, that
technology spending is slowing. Our concern is that a substantial portion of
technology spending has been in anticipation of Y2K and that that spending has,
for the most part, been completed. A spending gap could last into the first half
of 2000 before a new wave of long-term technology needs produce sufficient
demand.
The best scenario for the continued health of this market would be continued
improvement in the global economic picture. This would reduce anxiety and
uncertainty about the U.S. market, primarily by reducing the fears of unexpected
events from abroad. We still do not know why foreign impact has been minimal
this past 18 months, but we still worry about it. Investors may find that an
environment with little to fear from inflation, no recession on the horizon, and
jobs available for the asking creates an atmosphere where the significant
valuation gap between large growth companies and the remainder of the market
begins to narrow. We would feel more comfortable with the long-term prospects of
this market if there were more balance.
*Performance quoted represents 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.
**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.
***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 GROWTH AND INCOME FUND
The Vision Growth and Income Fund's results over the past fiscal year reflected
a difficult market for mid-cap stocks. For the fiscal year ended April 30, 1999,
the fund's total return was (9.26%), based on net asset value, or (14.26%)
adjusted for the fund's sales charge.* The Lipper Mid-Cap Fund Average generated
a return of 5.00%, while the Standard & Poor's 500 Index ("S&P 500") returned
21.83% and the Russell Midcap Value Index returned 1.90% for the same period.**
The fund's performance suffered during fiscal 1999 mainly due to the small
number of larger cap stocks that accounted for a disproportionately large
percentage of the overall market's return. The majority of U.S. stocks
underperformed the S&P 500. Sector selection added to the fund's performance
during fiscal 1999, particularly an overweighting in technology and an
underweighting in utilities. Stock selection was problematic, with many of our
companies going unrecognized by the market for positive earnings and strong
fundamentals. The market seemingly ignored valuation, with "expensive" stocks
significantly outperforming "inexpensive" stocks.
Mid-sized companies continued to make up the majority of the fund's holdings due
to our expectations for strong earnings growth as well as for their relative
valuations. The mid-cap sector of the U.S. equity market lagged the performance
of large mega-cap stocks as represented by the S&P 500. The length of relative
underperformance of mid-cap versus large-cap stocks has now surpassed that
experience during all other previous time periods. Towards the conclusion of
fiscal 1999 and particularly during April 1999, mid-cap stocks outperformed
large-cap stocks. This benefited the fund's performance. We are cautiously
optimistic that the change in the market's tenor experienced in April 1999 will
continue into fiscal 2000. A broadening of the market as well as a shift in
emphasis from growth to value should benefit the fund.
Looking forward to fiscal 2000, we continue to believe that mid-caps exhibit
attractive investment opportunities. Earnings are projected to exhibit growth,
valuations are compelling and investors remain underexposed to the asset class.
During fiscal 1999, we experienced several takeovers/mergers (either announced
or completed) including Banker's Trust, Bank of Boston, KNEnergy and
Consolidated Natural Gas. This demonstrated the attractiveness of many of our
holdings. We believe that we will continue to see this type of activity going
forward.
The fund looks to invest primarily in quality mid-sized companies that have
earnings growth and sell at attractive relative valuations. Industries that are
expected to benefit from major secular trends, such as changing demographics,
new and increased uses of technology or corporate outsourcing are emphasized. We
also look to invest in companies with a competitive advantage such as branding
or patent protection. Principal appreciation is the primary goal of the fund,
though income is considered important.
*Performance quoted represents 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. The S&P 500 is a capitalization-weighted index of 500 stocks designed
to measure performance of the broad domestic economy through changes in the
aggregate market value of 500 stocks representing all major industries. The
Russell Midcap Value Index measures the performance of those Russell Midcap
companies with lower price-to-book ratios and lower forecasted growth values.
The stocks are also members of the Russell 1000 Value Index. These indices are
unmanaged, and investments cannot be made in an index.
While we have concerns regarding fiscal 2000, including some issues concerning
Y2K, we believe that, overall, the positives continue to outweigh the negatives.
The federal budget is in a surplus. Inflation remains subdued. The U.S. economy
appears to be in good shape, driven by consumer spending. Mergers and
acquisitions continue at a brisk pace. Companies continue to buy back large
amounts of their own stock. Demographics, including retirement and other savings
by baby boomers, continue to provide liquidity. New products and innovations
abound. New technologies continue to enhance productivity. The world economies
appear to have stabilized and in some cases have begun to exhibit improvement.
Overall, we remain constructive on the market's potential, especially for mid-
caps. Though a "correction" could occur at any time, particularly as we get
closer to calendar year end 1999, and the hype surrounding Y2K increases, we
would consider this "normal," and not the initial stage of protracted bear
market. We look for U.S. equities to continue to exhibit positive total returns.
We are constantly identifying exciting and attractive investment opportunities
for the fund. We are encouraged by the recent relative performance of value and
mid-cap stocks and hope for further positive results.
VISION CAPITAL APPRECIATION FUND
The Vision Capital Appreciation Fund provided a total return of (22.67%), based
on net asset value, or (26.92%) adjusted for the fund's sales charge for the
twelve month period ended April 30, 1999.* The Russell Midcap Growth Index**
benchmark returned 12.34% over the same period. Since inception, performance has
declined somewhat due to the difficult market for smaller companies during this
past year. 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
Standard & Poor's 500 Index (S&P 500).*** The valuation gap between the smaller
companies and the S&P 500 is so great that it is reasonable to expect that some
degree of catch-up will occur in the near future. The mid-cap universe that we
follow has continued to produce excellent earnings and growth in an environment
where investors have overlooked these companies.
The narrowly focused market of the past year has had some carryover into 1999.
January and February 1999 continued in line with the market of last year. Large
capitalization growth companies continued to dominate, receiving most of the
investment flows from individuals, while other areas languished. Could this
market have become any more narrowly focused? It did! It may have looked subtle,
but, for a number of weeks, ten stocks that are, for the most part, infant
companies in the Internet business, became the focus of the growing volume of
day traders. This type of focused market is not a good sign and may be a
precursor to a significant correction or a rotation to new leadership.
Leadership rotations typically look like a correction because a significant
portion of the investing public realizes some time later that they are now in
the out-of-favor sectors of the market. The toughest call is to determine if the
shift is real and, if so, how long in duration. If this market broadens and
shifts in the direction of smaller companies or value stocks, there will be
significant pain and soul searching before investors adapt to the new market
leadership. A broader market should significantly benefit the fund.
While the S&P 500 had a stellar year, most investors that invest in S&P-type
stocks had somewhat lower returns. The index has become dominated by 20 of the
largest companies that have generated a significant portion of the performance.
This was also true of the Russell Midcap Growth Index. The driving force behind
this index was the Internet stocks. These companies have little or no earnings
and most will not have earnings in the coming 2-4 years. The concept, however,
has been stronger than the fundamentals. There is little doubt that the Internet
will change how we live and do business, but we still cannot identify who the
survivors will be when the dust settles.
The U.S. economy remains healthy with inflation and unemployment at moderately
low levels. Fears of weaker corporate profits in a potentially weaker economic
environment have had investors worried.
*Performance quoted represents 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.
**The Russell Midcap Growth Index measures the performance of those Russell
Midcap companies with higher price-to-book ratios and higher forecasted growth
values. The stocks are also members of the Russell 1000 Growth Index. This
index is unmanaged, and investments cannot be made in an index.
***The S&P 500 is a capitalization-weighted index of 500 stocks designed to
measure performance of the broad domestic economy through changes in the
aggregate market value of 500 stocks representing all major industries. This
index is unmanaged, and investments cannot be made in an index.
Business investment remains strong, with equipment expenditures at cyclical
highs. We would suspect, however, that technology spending is slowing. Our
concern is that a substantial portion of technology spending has been in
anticipation of Y2K and that that spending has, for the most part, been
completed. A spending gap could last into the first half of 2000 before a new
wave of long-term technology needs produces sufficient demand.
The best scenario for the continued health of this market would be an
improvement in the global economic picture. This would reduce anxiety and
uncertainty about the U.S. market, primarily by reducing the fears of unexpected
events from abroad. We still do not know why the foreign impact has been minimal
this past 18 months, but we still worry about it. Investors may find that an
environment with little to fear from inflation, no recession on the horizon, and
jobs available for the asking creates an atmosphere where the significant
valuation gap between large growth companies and the remainder of the market
begins to narrow. We would feel more comfortable with the long-term prospects of
this market if there were more balance.
VISION U.S GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN VISION U.S. GOVERNMENT SECURITIES FUND
The graph below illustrates the hypothetical investment of $10,000* in the
Vision U.S. Government Securities Fund (the "Fund") from September 22, 1993
(start of performance) to April 30, 1999, compared to the Lehman Brothers
Aggregate Bond Index ("LBABI").+
"Graphic representation "A" omitted. See Appendix."
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*Represents a hypothetical investment of $10,000 in the Fund after deducting the
maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge =
$9,550). The Fund's performance assumes the reinvestment of all dividends and
distributions. The LBABI has been adjusted to reflect reinvestment of interest
on securities in the index.
**Total returns quoted reflect all applicable sales charges.
+The LBABI is not adjusted to reflect sales charges, expenses, or other fees
that the Securities and Exchange Commission requires to be reflected in the
Fund's performance. This index is unmanaged.
VISION NEW YORK MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN VISION NEW YORK MUNICIPAL INCOME FUND
The graph below illustrates the hypothetical investment of $10,000* in the
Vision New York Municipal Income Fund (the "Fund") from September 22, 1993
(start of performance) to April 30, 1999, compared to the Lehman Brothers New
York Tax-Exempt Index ("LBNYTEI").+
"Graphic representation "B" omitted. See Appendix."
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*Represents a hypothetical investment of $10,000 in the Fund after deducting the
maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge =
$9,550). The Fund's performance assumes the reinvestment of all dividends and
distributions. The LBNYTEI has been adjusted to reflect reinvestment of
interest on securities in the index.
**Total returns quoted reflect all applicable sales charges.
+The LBNYTEI is not adjusted to reflect sales charges, expenses, or other fees
that the Securities and Exchange Commission requires to be reflected in the
Fund's performance. This index is unmanaged.
VISION EQUITY INCOME FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN VISION EQUITY INCOME FUND
The graph below illustrates the hypothetical investment of $10,000* in the
Vision Equity Income Fund (the "Fund") from September 26, 1997 (start of
performance) to April 30, 1999, compared to the Standard and Poor's 500 Index
("S&P 500") and the Standard & Poor's 500/Barra Value Index ("S&P BV")+
"Graphic representation "C" omitted. See Appendix."
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*Represents a hypothetical investment of $10,000 in the Fund after deducting the
maximum sales charge of 5.50% ($10,000 investment minus $550 sales charge =
$9,450). The Fund's performance assumes the reinvestment of all dividends and
distributions. The S&P 500 and the S&P BV have been adjusted to reflect
reinvestment of dividends on securities in the indices. The investment adviser
has elected to change the broad-based market index of the Fund from the S&P 500
to the S&P BV. The S&P BV is more representative of the securities typically
held by the Fund.
**Total returns quoted reflect all applicable sales charges.
+The S&P 500 and the S&P BV are not adjusted to reflect sales charges, expenses,
or other fees that the Securities and Exchange Commission requires to be
reflected in the Fund's performance. These indices are unmanaged.
VISION GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN VISION GROWTH AND INCOME FUND
The graph below illustrates the hypothetical investment of $10,000* in the
Vision Growth and Income Fund (the "Fund") from November 29, 1993 (start of
performance) to April 30, 1999, compared to the Standard and Poor's 500 Index
("S&P 500") and the Russell Midcap Value Index ("RMVI").+
"Graphic representation "D" omitted. See Appendix."
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*Represents a hypothetical investment of $10,000 in the Fund after deducting the
maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge =
$9,550) which was effective on November 29, 1993. Effective July 1, 1996, the
maximum sales charge was increased to 5.50%. The Fund's performance assumes the
reinvestment of all dividends and distributions. The S&P 500 and the RMVI have
been adjusted to reflect reinvestment of dividends on securities in the
indices. The investment adviser has elected to change the broad-based market
index of the Fund from the S&P 500 to the RMVI. The RMVI is more representative
of the securities typically held by the Fund.
**On July 1, 1996 the sales charge for the Vision Growth and Income Fund changed
to 5.50%. The start of performance total return is based on the original 4.50%
sales charge. The 1-year total return reflects the current 5.50% sales charge.
The remainder of the total returns reflect a 4.50% sales charge.
+The S&P 500 and the RMVI are not adjusted to reflect sales charges, expenses,
or other fees that the Securities and Exchange Commission requires to be
reflected in the Fund's performance. These indices are unmanaged.
VISION CAPITAL APPRECIATION FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN VISION CAPITAL APPRECIATION FUND
The graph below illustrates the hypothetical investment of $10,000* in the
Vision Capital Appreciation Fund (the "Fund") from July 3, 1996 (start of
performance) to April 30, 1999, compared to the Russell Midcap Growth Index
("RMGI").+
"Graphic representation "E" omitted. See Appendix."
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*Represents a hypothetical investment of $10,000 in the Fund after deducting the
maximum sales charge of 5.50% ($10,000 investment minus $550 sales charge =
$9,450). The Fund's performance assumes the reinvestment of all dividends and
distributions. The RMGI has been adjusted to reflect reinvestment of dividends
on securities in the index.
**Total returns quoted reflect all applicable sales charges.
+The RMGI is not adjusted to reflect sales charges, expenses, or other fees that
the Securities and Exchange Commission requires to be reflected in the Fund's
performance. This index is unmanaged.
VISION U.S. GOVERNMENT SECURITIES FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- --------------------------------------------------- -----------
<C> <S> <C>
ASSET-BACKED SECURITIES--0.6%
--------------------------------------------------------------
$ 70,280 Provident Bank Home Equity Loan Trust 1996-1, Class
A1, 7.600%, 10/25/2012 $ 71,654
---------------------------------------------------
113,482 The Money Store Home Equity Trust 1992-C, Class A1,
6.200%, 10/15/2017 114,048
---------------------------------------------------
217,902 The Money Store Home Equity Trust 1994-C, Class A4,
7.800%, 10/15/2021 222,097
--------------------------------------------------- -----------
TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST
$404,542) 407,799
--------------------------------------------------- -----------
COLLATERALIZED MORTGAGE OBLIGATIONS--11.6%
--------------------------------------------------------------
55,000 FHLMC Series 1686-PJ, REMIC, 5.000%, 2/15/2024 49,513
---------------------------------------------------
974,000 FHLMC Series 20-H, REMIC, 5.500%, 10/25/2023 887,801
---------------------------------------------------
19,089 FHLMC Series 1598-E, REMIC, 5.600%, 11/15/2005 19,094
---------------------------------------------------
26,512 FHLMC Series 1697-PG, REMIC, 5.800%, 4/15/2006 26,543
---------------------------------------------------
105,000 FHLMC Series 1637-GA, REMIC, 5.800%, 6/15/2023 102,278
---------------------------------------------------
15,170 FHLMC Series 136-E, REMIC, 6.000%, 4/15/2021 14,867
---------------------------------------------------
160,000 FHLMC Series 1534-H, REMIC, 6.000%, 1/15/2023 157,027
---------------------------------------------------
583,000 FHLMC Series 23-PK, REMIC, 6.000%, 11/25/2023 554,783
---------------------------------------------------
279,000 FHLMC Series 1577-PK, REMIC, 6.500%, 9/15/2023 279,876
---------------------------------------------------
176,000 FHLMC Series 1644-K, REMIC, 6.750%, 12/15/2023 173,320
---------------------------------------------------
250,000 FHLMC Series 1455-H, REMIC, 7.000%, 6/15/2021 253,490
---------------------------------------------------
58,000 FHLMC Series 33-H, REMIC, 7.500%, 6/25/2023 60,094
---------------------------------------------------
597,000 FHLMC Series 42-I, REMIC, 8.000%, 10/17/2024 617,268
---------------------------------------------------
70,062 FNMA Series 1994-22-A, REMIC, 5.000%, 3/25/2022 69,252
---------------------------------------------------
42,000 FNMA Series 1993-38-L, REMIC, 5.000%, 8/25/2022 39,609
---------------------------------------------------
152,000 FNMA Series 1994-3-PL, REMIC, 5.500%, 1/25/2024 141,436
---------------------------------------------------
788,000 FNMA Series 1992-136-PJ, REMIC, 6.000%, 5/25/2021 778,591
---------------------------------------------------
111,000 FNMA Series 1993-198-K, REMIC, 6.000%, 12/25/2022 107,693
---------------------------------------------------
</TABLE>
VISION U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ----------------------------------------------------- -----------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS--CONTINUED
----------------------------------------------------------------
$ 940,000 FNMA Series 1994-36-GA, REMIC, 6.500%, 2/25/2020 $ 952,493
-----------------------------------------------------
26,000 FNMA Series 1993-160-PK, REMIC, 6.500%, 11/25/2022 26,253
-----------------------------------------------------
175,000 FNMA Series 1993-223-C, REMIC, 6.500%, 5/25/2023 176,612
-----------------------------------------------------
395,000 FNMA Series 1993-113-PK, REMIC, 6.500%, 7/25/2023 381,578
-----------------------------------------------------
554,000 FNMA Series 1993-127-H, REMIC, 6.500%, 7/25/2023 542,532
-----------------------------------------------------
297,000 FNMA Series 1993-252-N, REMIC, 6.500%, 8/25/2023 294,969
-----------------------------------------------------
155,000 FNMA Series 1993-202-J, REMIC, 6.500%, 11/25/2023 154,865
-----------------------------------------------------
181,000 FNMA Series 1994-55-H, REMIC, 7.000%, 3/25/2024 186,915
-----------------------------------------------------
50,000 FNMA Series G93-1-HA, REMIC, 7.500%, 2/25/2021 50,777
-----------------------------------------------------
307,000 FNMA Series 1992-131, REMIC, 8.000%, 1/25/2022 316,898
----------------------------------------------------- -----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED
COST $7,096,792) 7,416,427
----------------------------------------------------- -----------
CORPORATE BONDS--16.9%
----------------------------------------------------------------
105,000 AON Corp., 6.875%, 10/1/1999 105,705
-----------------------------------------------------
500,000 Bay State Gas Co., 9.200%, 6/6/2011 602,995
-----------------------------------------------------
180,000 BellSouth Telecommunications, Inc., 5.850%,
11/15/2045 181,346
-----------------------------------------------------
1,000,000 Boeing Co., 6.625%, 2/15/2038 948,990
-----------------------------------------------------
250,000 Cargill, Inc., 6.875%, 5/1/2028 242,475
-----------------------------------------------------
100,000 Countrywide Home Loans, Inc., 6.510%, 2/11/2005 100,098
-----------------------------------------------------
450,000 Countrywide Home Loans, Inc., 7.200%, 10/30/2006 465,872
-----------------------------------------------------
800,000 Delmarva Power and Light Co., 8.500%, 2/1/2022 869,136
-----------------------------------------------------
250,000 First Union National Bank, Charlotte, N.C., 6.180%,
2/15/2036 249,285
-----------------------------------------------------
160,000 Ford Motor Credit Corp., 6.375%, 12/15/2005 161,392
-----------------------------------------------------
59,000 Fortune Brands, Inc., 8.625%, 11/15/2021 71,059
-----------------------------------------------------
150,000 GTE North, Inc., 8.500%, 12/15/2031 164,967
-----------------------------------------------------
100,000 General Electric Capital Corp., 8.300%, 9/20/2009 115,847
-----------------------------------------------------
50,000 Loews Corp., 8.875%, 4/15/2011 57,527
-----------------------------------------------------
150,000 Monsanto Co., 6.110%, 2/3/2005 149,091
-----------------------------------------------------
1,680,141 NYNEX Corp., 9.550%, 5/1/2010 1,949,854
-----------------------------------------------------
</TABLE>
VISION U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- --------------------------------------------------- -----------
<C> <S> <C>
CORPORATE BONDS--CONTINUED
--------------------------------------------------------------
$ 500,000 New Plan Realty Trust, 6.800%, 5/15/2002 $ 494,830
---------------------------------------------------
800,000 Ohio National Life Insurance Co., 8.500%, 5/15/2026 884,800
---------------------------------------------------
150,000 PG&E Gas Transmission Northwest, 7.800%, 6/1/2025 143,283
---------------------------------------------------
100,000 Pennsylvania Power & Light Co., 8.500%, 5/1/2022 107,335
---------------------------------------------------
307,000 Philip Morris Cos., Inc., 8.375%, 1/15/2017 318,528
---------------------------------------------------
1,000,000 Potomac Edison Co., 8.000%, 6/1/2006 1,026,780
---------------------------------------------------
60,000 Potomac Electric Power Co., 8.500%, 5/15/2027 64,954
---------------------------------------------------
125,000 Public Service Co. Colo, 8.750%, 3/1/2022 137,338
---------------------------------------------------
125,000 Rochester Gas & Electric Corp., 9.375%, 4/1/2021 136,290
---------------------------------------------------
225,000 Virginia Electric Power Co., 8.250%, 3/1/2025 242,961
---------------------------------------------------
415,000 Virginia Electric Power Co., 8.750%, 4/1/2021 433,779
---------------------------------------------------
370,000 Weingarten Realty Investors, 6.650%, 7/12/2027 375,147
--------------------------------------------------- -----------
TOTAL CORPORATE BONDS (IDENTIFIED COST $10,592,028) 10,801,664
--------------------------------------------------- -----------
GOVERNMENT AGENCIES--20.2%
--------------------------------------------------------------
50,000 FHLB System, 6.561%, 1/30/2003 50,163
---------------------------------------------------
50,000 FHLB System, 7.140%, 6/6/2001 51,740
---------------------------------------------------
175,000 FHLMC, 6.943%, 3/21/2007 185,701
---------------------------------------------------
20,138 FHLMC, 8.200%, 9/15/2007 20,313
---------------------------------------------------
202,516 FHLMC, 9.875%, 3/15/2009 213,644
---------------------------------------------------
216,582 FHLMC, 10.250%, 3/15/2009 225,694
---------------------------------------------------
50,000 FNMA, 5.125%, 2/13/2004 48,961
---------------------------------------------------
500,000 HUD, 6.590%, 8/1/2000 507,477
---------------------------------------------------
910,000 HUD, 6.930%, 8/1/2013 940,866
---------------------------------------------------
500,000 HUD, 7.140%, 8/1/2007 525,510
---------------------------------------------------
1,200,000 HUD, 7.660%, 8/1/2015 1,262,388
---------------------------------------------------
700,000 HUD, 9.100%, 8/1/2000 731,003
---------------------------------------------------
500,000 Private Export Funding Corp., 6.490%, 7/15/2007 516,990
---------------------------------------------------
75,000 Private Export Funding Corp., 7.950%, 11/1/2006 82,122
---------------------------------------------------
</TABLE>
VISION U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------------------------------------------ -----------
<C> <S> <C>
GOVERNMENT AGENCIES--CONTINUED
-----------------------------------------------------------
$ 959,837 Small Business Administration, 5.600%, 9/1/2008 $ 939,738
------------------------------------------------
1,831,840 Small Business Administration, 6.700%, 12/1/2016 1,853,602
------------------------------------------------
4,552,255 Small Business Administration, 6.950%, 11/1/2016 4,651,858
------------------------------------------------
103,054 Small Business Administration, 8.850%, 8/1/2011 111,106
------------------------------------------------
50,000 Tennessee Valley Authority, 6.000%, 11/1/2000 50,463
------------------------------------------------ -----------
TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST
$13,062,479) 12,969,339
------------------------------------------------ -----------
GOVERNMENTS/AGENCIES--3.2%
-----------------------------------------------------------
1,944,000 Israel AID, 6.800%, 2/15/2012 (IDENTIFIED COST
$2,119,542) 2,050,978
------------------------------------------------ -----------
MORTGAGE BACKED SECURITIES--14.4%
-----------------------------------------------------------
233,163 FHLMC, 7.000%, 11/1/2007 236,005
------------------------------------------------
213,427 FHLMC, 7.000%, 7/1/2008 216,028
------------------------------------------------
432,374 FHLMC, 7.000%, 8/1/2008 437,645
------------------------------------------------
163,051 FHLMC, 7.000%, 11/1/2010 166,872
------------------------------------------------
93,874 FHLMC, 7.000%, 11/1/2017 95,634
------------------------------------------------
20,755 FHLMC, 7.250%, 1/1/2005 21,157
------------------------------------------------
70,948 FHLMC, 7.250%, 11/1/2009 72,323
------------------------------------------------
47,464 FHLMC, 7.500%, 7/1/2007 48,725
------------------------------------------------
242,278 FHLMC, 7.500%, 3/1/2008 248,713
------------------------------------------------
120,226 FHLMC, 7.500%, 6/1/2008 123,532
------------------------------------------------
44,139 FHLMC, 7.500%, 11/1/2009 45,312
------------------------------------------------
127,002 FHLMC, 7.500%, 12/1/2010 130,375
------------------------------------------------
39,341 FHLMC, 7.500%, 3/1/2017 40,730
------------------------------------------------
51,085 FHLMC, 8.000%, 5/1/2002 52,278
------------------------------------------------
14,070 FHLMC, 8.000%, 5/1/2006 14,448
------------------------------------------------
10,945 FHLMC, 8.000%, 3/1/2007 11,315
------------------------------------------------
60,021 FHLMC, 8.000%, 9/1/2007 62,328
------------------------------------------------
420,175 FHLMC, 8.000%, 11/1/2008 436,327
------------------------------------------------
48,040 FHLMC, 8.000%, 1/1/2010 49,511
------------------------------------------------
</TABLE>
VISION U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------------------ -----------
<C> <S> <C>
MORTGAGE BACKED SECURITIES--
CONTINUED
-----------------------------------
$ 77,212 FHLMC, 8.000%, 12/1/2010 $ 80,180
------------------------
41,615 FHLMC, 8.250%, 12/1/2007 43,429
------------------------
95,101 FHLMC, 8.250%, 5/1/2008 97,983
------------------------
56,509 FHLMC, 8.250%, 5/1/2009 59,043
------------------------
79,936 FHLMC, 8.250%, 8/1/2009 83,520
------------------------
31,077 FHLMC, 8.500%, 6/1/2002 31,903
------------------------
253,492 FHLMC, 8.500%, 7/1/2004 260,541
------------------------
30,634 FHLMC, 8.500%, 4/1/2006 32,155
------------------------
89,809 FHLMC, 8.500%, 9/1/2009 93,514
------------------------
23,286 FHLMC, 8.750%, 8/1/2008 23,868
------------------------
28,785 FHLMC, 9.000%, 3/1/2002 29,555
------------------------
9,694 FHLMC, 9.000%, 9/1/2019 10,330
------------------------
110,374 FHLMC, 9.250%, 6/1/2002 113,185
------------------------
30,772 FHLMC, 10.500%, 3/1/2001 31,320
------------------------
545,771 FNMA, 6.000%, 5/1/2009 542,016
------------------------
41,861 FNMA, 6.000%, 1/1/2014 40,958
------------------------
100,953 FNMA, 6.500%, 4/1/2004 101,868
------------------------
27,562 FNMA, 6.750%, 12/1/2006 27,674
------------------------
97,196 FNMA, 7.500%, 11/1/2009 100,036
------------------------
78,845 FNMA, 8.000%, 4/1/2002 81,097
------------------------
191,069 FNMA, 8.000%, 1/1/2006 196,503
------------------------
203,699 FNMA, 8.000%, 1/1/2010 211,910
------------------------
101,883 FNMA, 8.250%, 7/1/2009 106,467
------------------------
73,024 FNMA, 8.500%, 10/1/2002 75,328
------------------------
58,006 FNMA, 8.500%, 3/1/2012 61,070
------------------------
93,794 FNMA, 8.750%, 5/1/2010 99,392
------------------------
28,283 FNMA, 9.000%, 12/1/2002 29,202
------------------------
75,245 FNMA, 9.000%, 10/1/2006 78,090
------------------------
</TABLE>
VISION U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------------------ -----------
<C> <S> <C>
MORTGAGE BACKED SECURITIES--
CONTINUED
-----------------------------------
$ 82,801 FNMA, 9.750%, 9/1/2017 $ 89,464
------------------------
87,260 GNMA, 6.500%, 9/15/2002 87,042
------------------------
21,955 GNMA, 7.250%, 2/15/2005 22,436
------------------------
40,577 GNMA, 7.250%, 3/15/2005 41,464
------------------------
64,413 GNMA, 7.250%, 3/15/2005 65,822
------------------------
14,684 GNMA, 7.250%, 7/15/2005 15,006
------------------------
9,942 GNMA, 7.250%, 10/15/2005 10,190
------------------------
33,958 GNMA, 7.250%, 11/15/2005 34,701
------------------------
53,331 GNMA, 7.500%, 12/15/2005 55,115
------------------------
53,980 GNMA, 7.500%, 6/20/2007 56,241
------------------------
41,805 GNMA, 8.000%, 6/15/2006 43,412
------------------------
28,557 GNMA, 8.000%, 8/15/2006 29,610
------------------------
54,420 GNMA, 8.000%, 9/15/2006 56,512
------------------------
212,828 GNMA, 8.000%, 11/15/2006 222,340
------------------------
660,397 GNMA, 8.000%, 9/15/2007 692,796
------------------------
178,281 GNMA, 8.000%, 10/15/2007 186,750
------------------------
99,089 GNMA, 8.000%, 12/15/2009 102,970
------------------------
166,077 GNMA, 8.000%, 2/15/2010 173,620
------------------------
145,699 GNMA, 8.000%, 12/15/2016 153,394
------------------------
43,832 GNMA, 8.000%, 7/15/2024 45,667
------------------------
97,607 GNMA, 8.250%, 6/15/2008 103,006
------------------------
54,776 GNMA, 8.375%, 4/15/2010 57,210
------------------------
533,786 GNMA, 8.500%, 9/15/2008 562,643
------------------------
188,865 GNMA, 8.500%, 10/20/2009 196,833
------------------------
39,987 GNMA, 8.750%, 2/15/2002 41,198
------------------------
75,235 GNMA, 9.000%, 4/15/2001 77,084
------------------------
17,868 GNMA, 9.000%, 4/15/2001 18,288
------------------------
12,474 GNMA, 9.000%, 5/15/2001 12,781
------------------------
</TABLE>
VISION U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ---------------------------------------------------- -----------
<C> <S> <C>
MORTGAGE BACKED SECURITIES--CONTINUED
----------------------------------------------------------------
$ 443,323 GNMA, 9.000%, 4/20/2023 $ 474,772
----------------------------------------------------
214,045 GNMA, 9.000%, 10/20/2024 228,827
---------------------------------------------------- -----------
TOTAL MORTGAGE BACKED SECURITIES (IDENTIFIED COST
$9,365,402) 9,208,589
---------------------------------------------------- -----------
MUNICIPALS--11.0%
----------------------------------------------------------------
225,000 Chicago, IL Public Building Commission, 7.000%,
1/1/2007 239,917
----------------------------------------------------
250,000 Connecticut Development Authority, 8.550%, 8/15/2008 275,100
----------------------------------------------------
265,000 Connecticut Municipal Electric Energy Cooperative,
5.700%, 1/1/2004 262,202
----------------------------------------------------
55,000 Connecticut State HEFA, 7.070%, 11/1/2001 55,495
----------------------------------------------------
100,000 Greater Orlando (FL) Aviation Authority, 8.250%,
10/1/2004 109,981
----------------------------------------------------
370,000 HUD 89A Caguas, 8.750%, 8/1/1999 373,308
----------------------------------------------------
250,000 HUD 92A Detroit, 7.120%, 8/1/2001 257,855
----------------------------------------------------
270,000 HUD 94A Atlanta, 6.760%, 8/1/2006 276,656
----------------------------------------------------
360,000 HUD 94A Atlanta, 6.930%, 8/1/2009 369,108
----------------------------------------------------
200,000 Miami, FL, 8.650%, 7/1/2019 248,960
----------------------------------------------------
3,100,000 Minneapolis/St. Paul, MN Airport Commission, 8.950%,
1/1/2022 3,404,544
----------------------------------------------------
900,000 New Jersey State, 8.350%, 8/1/2010 961,929
----------------------------------------------------
100,000 New York City, NY, 10.500%, 11/15/2012 113,060
----------------------------------------------------
80,000 New York City, NY, 9.900%, 2/1/2015 89,480
---------------------------------------------------- -----------
TOTAL MUNICIPALS (IDENTIFIED COST $7,130,065) 7,037,595
---------------------------------------------------- -----------
U.S. TREASURY BONDS--15.4%
----------------------------------------------------------------
1,000,000 14.000%, 11/15/2011 1,512,570
----------------------------------------------------
1,000,000 6.125%, 11/15/2027 1,033,260
----------------------------------------------------
5,500,000 8.750%, 8/15/2020 7,354,325
---------------------------------------------------- -----------
TOTAL U.S. TREASURY (IDENTIFIED COST $10,306,641) 9,900,155
---------------------------------------------------- -----------
</TABLE>
VISION U.S. GOVERNMENT SECURITIES FUND
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- ---------------------------------------------------- -----------
<C> <S> <C>
MUTUAL FUND SHARES--2.9%
--------------------------------------------------------------
1,837,604 SSGA US Government Money Market Fund, 4.530% (AT NET
ASSET VALUE) $ 1,837,604
---------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST $61,915,095)(A) $61,630,150
---------------------------------------------------- -----------
</TABLE>
(a) The cost of investments for federal tax purposes amounts to $61,915,095. The
net unrealized depreciation of investments on a federal tax basis amounts to
$284,945 which is comprised of $659,934 appreciation and $944,879
depreciation at April 30, 1999.
Note: The categories of investments are shown as a percentage of net assets
($64,099,958) at April 30, 1999.
The following acronyms 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
APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- --------------------------------------------- ------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPALS--97.3%
--------------------------------------------------------
NEW YORK--96.7%
---------------------------------------------
$ 45,000 34th Street Partnership, Inc., NY, 5.50%
(Original Issue Yield: 5.613%), 1/1/2023 A1 $ 45,929
---------------------------------------------
200,000 Albany, NY Housing Authority, Revenue Bond,
5.20% (KeyBank, N.A. LOC), 12/1/2013 Aa3 199,586
---------------------------------------------
150,000 Albany, NY Housing Authority, Revenue Bonds,
5.40% (KeyBank, N.A. LOC), 12/1/2018 Aa3 149,632
---------------------------------------------
200,000 Albany, NY Housing Authority, Revenue Bonds,
5.50% (KeyBank, N.A. LOC), 12/1/2028 Aa3 199,410
---------------------------------------------
25,000 Alden Central School District, NY, GO UT, 6.25% (AMBAC
INS)/(Original Issue Yield:
6.40%), 6/15/2009 AAA 29,089
---------------------------------------------
525,000 Allegany County, NY IDA, Revenue Bonds,
6.625% (Atlantic Richfield Co.)/(Original
Issue Yield: 6.625%), 9/1/2016/(AMT) A 565,919
---------------------------------------------
25,000 Amherst, NY, GO UT, 6.20% (FGIC
INS)/(Original Issue Yield: 6.00%), 4/1/2002 AAA 26,754
---------------------------------------------
10,000 Batavia, NY, GO UT Bonds, 6.55% (MBIA
INS)/(Original Issue Yield: 6.60%), 5/1/2005 AAA 11,340
---------------------------------------------
25,000 Beacon, NY City School District, GO UT, 5.10%
(Original Issue Yield: 5.25%), 7/15/2006 AAA 26,521
---------------------------------------------
100,000 Brighton, NY Central School District, GO UT,
5.40% (Original Issue Yield: 5.55%), 6/1/2011 AAA 106,486
---------------------------------------------
10,000 Brighton, NY, 8.00% (MBIA INS), 10/15/2002 AAA 11,382
---------------------------------------------
50,000 Brockport, NY Central School District, GO UT,
5.40% (Original Issue Yield: 5.55%),
6/15/2011 AAA 53,271
---------------------------------------------
50,000 Broome County, NY, Certificate of
Participation, 5.25% (MBIA INS)/(Original
Issue Yield: 5.578%), 4/1/2022 AAA 50,532
---------------------------------------------
70,000 Buffalo & Fort Erie, NY Public Bridge
Authority, 6.00% (MBIA INS)/(Original Issue
Yield: 5.05%), 1/1/2004 AAA 76,200
---------------------------------------------
</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 Byron Bergen NY Central School District, GO
UT School Improvement Bonds, 6.00%, 6/15/2003 A3 $ 27,046
---------------------------------------------
25,000 Camden, NY Central School District, GO UT School Improvement Bonds,
7.10% (AMBAC INS),
6/15/2006 AAA 29,430
---------------------------------------------
30,000 Canandaigua, NY City School District, GO UT,
7.15% (United States Treasury PRF), 6/1/2003 AAA 31,793
---------------------------------------------
10,000 Canandaigua, NY, GO UT, 8.80% (Original Issue
Yield: 9.30%), 3/1/2005 A2 12,358
---------------------------------------------
30,000 Carmel, NY, 6.30%, 11/15/2011 A1 35,341
---------------------------------------------
25,000 Chautauqua County, NY, 7.30% (FGIC INS),
4/1/2006 AAA 29,614
---------------------------------------------
50,000 Chautauqua County, NY, GO UT, 6.40% (FGIC
INS)/(Original Issue Yield: 6.30%), 9/15/2004 AAA 55,988
---------------------------------------------
100,000 Cheektowaga, NY Central School District, GO UT, 5.875% (FGIC
INS)/(Original Issue Yield:
5.95%), 6/1/2014 Aaa 109,112
---------------------------------------------
25,000 Cheektowaga, NY, GO UT, 5.65%, 8/15/2005 A1 27,173
---------------------------------------------
50,000 Cheektowaga, NY, GO UT, 6.55%, 10/15/2008 A1 58,645
---------------------------------------------
50,000 Cheektowaga-Maryvale, NY Union Free School
District, GO UT, 6.625% (FGIC INS), 6/15/2008 AAA 59,338
---------------------------------------------
50,000 Chemung County, NY, GO UT, 6.80% (AMBAC
INS)/(Original Issue Yield: 6.80%), 7/15/2006 AAA 58,134
---------------------------------------------
50,000 Chemung County, NY, GO UT, 6.80% (AMBAC
INS)/(Original Issue Yield: 6.85%), 7/15/2009 AAA 59,766
---------------------------------------------
25,000 Chenango County, NY, 6.40%, 12/15/2008 A2 29,090
---------------------------------------------
30,000 Cherry Valley Springfield, NY Central School
District, School Improvement Bonds, 7.80%,
5/1/2011 AAA 39,222
---------------------------------------------
100,000 Chittenango, NY Central School District, GO
UT, 7.00% (MBIA INS), 6/15/2009 AAA 121,098
---------------------------------------------
25,000 Churchville Chili, NY Central School
District, GO UT, 5.50% (FGIC INS)/(Original
Issue Yield: 5.50%), 6/15/2009 AAA 27,624
---------------------------------------------
</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 Clarence, NY Central School District, GO UT, 5.30% (FGIC
INS)/(Original Issue Yield:
4.90%), 6/1/2006 Aaa $ 26,804
---------------------------------------------
25,000 Clinton, NY Central School District, School
Improvements, GO UT, 7.30%, 6/15/2008 Aaa 30,778
---------------------------------------------
25,000 Dutchess County, NY, GO UT, 8.50%, 7/15/2007 Aa1 32,235
---------------------------------------------
25,000 East Aurora, NY Union Free School District, GO UT, 5.20% (FGIC
INS)/(Original Issue
Yield: 4.80%), 6/15/2006 Aaa 26,771
---------------------------------------------
25,000 East Bloomfield, NY Central School District,
7.125% (MBIA INS), 6/15/2004 AAA 28,727
---------------------------------------------
25,000 East Irondequoit, NY Central School District,
GO UT, 6.90%, 12/1/2002 A2 27,632
---------------------------------------------
25,000 East Rochester, NY Union Free School
District, GO UT, 6.30% (AMBAC INS), 6/15/2003 AAA 27,405
---------------------------------------------
50,000 Endwell, NY, GO UT Fire District Bonds, 7.00%
(Original Issue Yield: 7.35%), 3/1/2014 A3 60,559
---------------------------------------------
50,000 Erie County, NY Water Authority, Series A, 6.00% (AMBAC
INS)/(Original Issue Yield:
7.25%), 12/1/2008 AAA 55,574
---------------------------------------------
25,000 Erie County, NY, GO UT General Improvement
Bonds, 9.60% (MBIA INS)/(Original Issue
Yield: 9.55%), 10/15/2000 AAA 27,151
---------------------------------------------
50,000 Erie County, NY, GO UT, 10.00% (MBIA INS),
10/15/2002 AAA 60,055
---------------------------------------------
1,030,000 Essex County, NY IDA, Solid Waste Disposal
Revenue Bonds (Series A), 5.80%
(International Paper Co.), 12/1/2019/(AMT) BBB+ 1,055,462
---------------------------------------------
55,000 Evans & Brant, NY Central School District, GO UT, 6.85% (MBIA
INS)/(Original Issue Yield:
6.90%), 6/15/2009 AAA 66,739
---------------------------------------------
25,000 Fairport, NY Central School District, GO UT,
5.00% (MBIA INS), 6/15/2003 AAA 26,227
---------------------------------------------
20,000 Frontier Central School District, NY, Hamburg
Township, GO UT, 9.50% (MBIA INS)/(Original
Issue Yield: 9.50%), 6/1/2002 AAA 23,324
---------------------------------------------
</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
---------------------------------------------
$ 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 $ 74,935
---------------------------------------------
25,000 Genesee County, NY, GO UT, 5.30% (FGIC
INS)/(Original Issue Yield: 5.20%), 8/15/2009 Aaa 26,821
---------------------------------------------
30,000 Genesee County, NY, GO UT, 8.60% (MBIA
INS)/(Original Issue Yield: 9.25%), 4/1/2003 AAA 35,148
---------------------------------------------
25,000 Greece, NY Central School District, GO UT, 6.00% (FGIC
INS)/(Original Issue Yield:
5.55%), 6/15/2004 AAA 27,435
---------------------------------------------
25,000 Greece, NY Central School District, GO UT,
7.00%, 6/15/2010 A1 30,532
---------------------------------------------
30,000 Greece, NY, GO UT, 6.25% (AMBAC INS),
12/1/2007 AAA 34,266
---------------------------------------------
50,000 Guilderland, NY, GO UT, 6.40% (FGIC
INS)/(Original Issue Yield: 6.65%), 9/15/2015 AAA 59,745
---------------------------------------------
25,000 Hamburg Town, NY, GO UT, 6.30% (MBIA
INS)/(Original Issue Yield: 6.45%),
11/15/2010 AAA 29,504
---------------------------------------------
50,000 Hanover Town, NY, GO UT, 9.80% (MBIA INS),
9/1/2004 AAA 64,136
---------------------------------------------
30,000 Harrison, NY Central School District, GO UT
Refunding Bonds, 6.70%, 10/1/2007 A1 35,213
---------------------------------------------
25,000 Hilton Central School District, NY, GO UT,
6.85%, 6/15/2001 A2 26,634
---------------------------------------------
125,000 Holiday Square Housing Development Corp., NY,
Section 8 Assisted Project, 5.80% (Holiday
Square Management Co.)/(FNMA COL)/(Original
Issue Yield: 5.943%), 1/15/2024 Aaa 128,467
---------------------------------------------
20,000 Holland, NY Central School District, GO UT, 6.00% (FGIC
INS)/(Original Issue Yield:
5.50%), 6/15/2003 AAA 21,684
---------------------------------------------
100,000 Housing NY Corp., Revenue Bonds, 5.00%
(Original Issue Yield: 5.65%), 11/1/2018 AA 98,530
---------------------------------------------
25,000 Housing NY Corp., Revenue Refunding Bonds,
5.00% (Original Issue Yield: 5.60%),
11/1/2013 AA 25,069
---------------------------------------------
</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 Irondequoit, NY, 6.80% (Original Issue Yield:
7.20%), 3/1/2011 A2 $ 18,178
---------------------------------------------
50,000 Ithaca, NY, 6.80%, 5/15/2003 Aa 55,631
---------------------------------------------
25,000 Ithaca, NY, GO UT, 6.40% (Original Issue
Yield: 6.80%), 4/1/2009 Aa3 29,132
---------------------------------------------
50,000 Ithaca, NY, GO UT, 6.625% (Original Issue
Yield: 6.70%), 7/15/2005 Aa 57,104
---------------------------------------------
1,215,000 Jamestown, NY Housing Authority, Mortgage
Revenue Bonds, 6.125% (Bradmar Village
Project)/(HUD Section 8 LOC), 7/1/2010 A- 1,270,076
---------------------------------------------
30,000 Jamesville-Dewitt, NY Central School
District, School Improvements, 5.75% (AMBAC
INS), 6/15/2009 AAA 33,344
---------------------------------------------
20,000 Kenmore, NY, GO UT, 6.35% (MBIA INS),
10/15/2009 AAA 23,581
---------------------------------------------
25,000 La Grange, NY, GO UT Public Improvement
Bonds, 7.70% (AMBAC INS)/(Original Issue
Yield: 7.75%), 4/15/2006 AAA 30,195
---------------------------------------------
50,000 Lakewood, NY, GO UT Public Improvement Bonds,
5.50% (Original Issue Yield: 5.70%), 4/1/2012 Baa1 52,668
---------------------------------------------
25,000 Lancaster Town, NY, GO UT Bonds, 5.30% (FSA
INS), 6/1/2005 AAA 26,816
---------------------------------------------
25,000 Lansing, NY, GO UT, 6.90% (Original Issue
Yield: 7.10%), 3/15/2009 A3 29,824
---------------------------------------------
25,000 Le Roy, NY, GO UT, Public Improvements, 7.50%
(AMBAC INS)/(Original Issue Yield: 7.70%),
8/15/2006 AAA 30,098
---------------------------------------------
25,000 Lewiston Town, NY, GO UT Refunding Bonds, 5.50% (FSA INS)/(Original
Issue Yield:
5.55%), 5/1/2014 AAA 27,334
---------------------------------------------
25,000 Liverpool Central School District, NY, 7.20%
(MBIA INS)/(Original Issue Yield: 7.30%),
10/1/2007 AAA 30,045
---------------------------------------------
25,000 Lockport Town, NY, GO UT, 5.45% (FGIC
INS)/(Original Issue Yield: 5.05%), 9/15/2006 Aaa 27,199
---------------------------------------------
</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
---------------------------------------------
$1,650,000 Metropolitan Transportation Authority, New
York, Transit Improvement Revenue Bonds,
7.00% (MBIA INS), 7/1/2006 AAA $ 1,930,550
---------------------------------------------
25,000 Monroe County, NY IDA, Revenue Bonds, 5.80% (Nazareth College)/(MBIA
INS)/(Original Issue
Yield: 5.799%), 6/1/2010 AAA 27,101
---------------------------------------------
50,000 Monroe County, NY, GO UT (Series A), 8.50%
(Original Issue Yield: 8.75%), 5/1/2000 Aa2 52,512
---------------------------------------------
610,000 Monroe County, NY, GO UT Public Improvement
Bonds, 6.00% (Original Issue Yield: 5.34%),
3/1/2016 AA 697,267
---------------------------------------------
25,000 Monroe County, NY, GO UT Public Improvement
Bonds, 6.05% (AMBAC INS)/(United States
Treasury PRF)/(Original Issue Yield: 6.049%),
6/1/2004 AAA 27,935
---------------------------------------------
25,000 Monroe Woodbury, NY Center School District,
GO UT, 6.70% (FGIC INS), 11/15/2010 AAA 28,162
---------------------------------------------
50,000 New Paltz, NY Central School District, GO UT
Bonds, 6.00% (AMBAC INS), 6/15/2008 AAA 56,984
---------------------------------------------
50,000 New York City Housing Development Corp.,
Revenue Refunding Bonds, 5.85% (FHA INS),
5/1/2026 AA 52,944
---------------------------------------------
100,000 New York City Housing Development Corp.,
Series A, 7.35% (FHA INS)/(Original Issue
Yield: 7.349%), 6/1/2019 AAA 107,765
---------------------------------------------
1,850,000 New York City, NY IDA, 5.85% (Nightingale-
Bamford School Project)/(Original Issue
Yield: 5.85%), 1/15/2020 A 1,951,010
---------------------------------------------
2,160,000 New York City, NY IDA, Revenue Bonds, 5.65% (United Air
Lines)/(Original Issue Yield:
5.682%), 10/1/2032 BB+ 2,205,943
---------------------------------------------
1,500,000 New York City, NY IDA, Special Facilities
Revenue Bonds, 6.90% (American Airlines),
8/1/2024/(AMT) BBB- 1,647,375
---------------------------------------------
100,000 New York City, NY Transitional Finance
Authority, Revenue Bonds (Series A), 5.00%
(Original Issue Yield: 5.13%), 8/15/2013 AA 101,643
---------------------------------------------
1,000,000 New York City, NY, GO UT Public Improvement
Bonds (Series K), 8.00%, 4/1/2005 AAA 1,198,730
---------------------------------------------
50,000 New York State Dormitory Authority, (Series
A), 5.50% (Original Issue Yield: 5.90%),
5/15/2013 A- 53,837
---------------------------------------------
</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 State Dormitory Authority, Health, Hospital, Nursing Home
Improvement Revenue Bonds, 5.00% (FSA INS)/(Original Issue Yield:
5.05%), 1/15/2016 AAA $ 1,501,860
---------------------------------------------
500,000 New York State Dormitory Authority, Health,
Hospital, Nursing Home Improvement Revenue
Bonds, 5.10% (AMBAC INS), 2/1/2019 Aaa 496,210
---------------------------------------------
1,125,000 New York State Dormitory Authority, Mental
Health Services Facilities Improvement
(Series B), 6.50%, 2/15/2009 A- 1,283,782
---------------------------------------------
1,550,000 New York State Dormitory Authority, Refunding Revenue Bonds (Series
A), 5.00% (University of Rochester, NY)/(Original Issue Yield:
5.15%), 7/1/2018 AAA 1,545,164
---------------------------------------------
20,000 New York State Dormitory Authority, Refunding
Revenue Bonds (Series B), 5.25% (Original
Issue Yield: 5.75%), 5/15/2019 A- 20,538
---------------------------------------------
70,000 New York State Dormitory Authority, Refunding
Revenue Bonds, 5.75% (FGIC INS)/(Original
Issue Yield: 6.00%), 7/1/2013 AAA 78,037
---------------------------------------------
1,000,000 New York State Dormitory Authority, Refunding
Revenue Bonds, 7.00% (FGIC INS)/(Original
Issue Yield: 7.50%), 7/1/2009 AAA 1,168,800
---------------------------------------------
20,000 New York State Dormitory Authority, Revenue
Bonds, 5.00% (Rochester University-Strong
Memorial Hospital), 7/1/2005 AAA 21,133
---------------------------------------------
900,000 New York State Dormitory Authority, Revenue
Bonds, 5.25%, 7/1/2015 A- 920,952
---------------------------------------------
750,000 New York State Dormitory Authority, Revenue
Bonds, 5.75% (New York University)/(MBIA
INS), 7/1/2014 AAA 837,720
---------------------------------------------
200,000 New York State Dormitory Authority, Revenue
Bonds, 5.85% (Arden Hill)/(FHA INS), 8/1/2026 AAA 213,076
---------------------------------------------
485,000 New York State Dormitory Authority, Revenue
Bonds, 5.85% (Wesley Health System)/(FHA
INS), 8/1/2026 AAA 515,914
---------------------------------------------
100,000 New York State Dormitory Authority, Revenue
Bonds, 6.00% (Colgate University)/(MBIA
INS)/(Original Issue Yield: 5.25%), 7/1/2016 AAA 113,983
---------------------------------------------
</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
---------------------------------------------
$1,000,000 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 Aa3 $ 1,068,430
---------------------------------------------
2,000,000 New York State Dormitory Authority, Revenue
Bonds, 7.50%, 5/15/2013 A- 2,543,420
---------------------------------------------
15,000 New York State Dormitory Authority, Revenue Bonds, 7.85% (FHA
INS)/(Original Issue Yield:
7.849%), 2/1/2029 AAA 15,341
---------------------------------------------
130,000 New York State Dormitory Authority, Revenue
Bonds, 7.15% (R & J Jewish Geriatric
Center)/(FHA INS), 8/1/2014 AAA 149,024
---------------------------------------------
45,000 New York State Energy Research & Development
Authority, Revenue Bonds (Series A), 7.50%
(Consolidated Edison Co.)/(Original Issue
Yield: 7.644%), 7/1/2025/(AMT) A+ 45,741
---------------------------------------------
1,970,000 New York State Environmental Facilities
Corp., 5.00%, 10/15/2015 AAA 1,992,753
---------------------------------------------
1,000,000 New York State Environmental Facilities
Corp., Refunding Notes (Series F), 5.25%,
6/15/2014 AA- 1,041,450
---------------------------------------------
25,000 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+ 25,537
---------------------------------------------
25,000 New York State HFA, (Series A), 6.90%,
8/15/2007/(AMT) Aa1 26,848
---------------------------------------------
100,000 New York State HFA, Revenue Refunding Bonds,
7.90% (United States Treasury COL), 11/1/2006 AAA 117,988
---------------------------------------------
320,000 New York State HFA, Revenue Refunding Bonds,
8.00% (Original Issue Yield: 8.079%),
11/1/2008 A- 340,611
---------------------------------------------
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+ 1,105,180
---------------------------------------------
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: 6.218%), 8/15/2014 AAA 31,933
---------------------------------------------
</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 New York State Medical Care Facilities Finance Agency,
Refunding Revenue Bonds, 5.75% (FHA INS)/(Original Issue Yield:
5.85%), 2/15/2008 AAA $ 26,918
---------------------------------------------
320,000 New York State Medical Care Facilities
Finance Agency, Revenue Bonds, 5.55%
(Original Issue Yield: 5.60%), 2/15/2001 A- 320,451
---------------------------------------------
100,000 New York State Medical Care Facilities
Finance Agency, Revenue Bonds, 7.00%,
8/15/2003 A- 108,015
---------------------------------------------
1,000,000 New York State Medical Care Facilities
Finance Agency, Series A Revenue Bonds,
5.875% (Mercy Medical Center)/(Natwest
Bancorp LOC)/(Original Issue Yield: 6.00%),
11/1/2015 AA- 1,064,250
---------------------------------------------
85,000 New York State Mortgage Agency, Revenue
Bonds, 7.45% (FHA INS), 10/1/2010 Aa2 87,321
---------------------------------------------
20,000 New York State Mortgage Agency, Revenue
Refunding Bonds, 6.875% (MGIC INS), 4/1/2014 Aaa 20,039
---------------------------------------------
2,000,000 New York State Thruway Authority, 5.00% (FGIC
LOC), 4/1/2018 AA 1,991,440
---------------------------------------------
415,000 New York State, GO UT Refunding Bonds, 9.875%
(Original Issue Yield: 7.30%), 11/15/2005 A 548,676
---------------------------------------------
1,000,000 New York State, GO UT, 12.00% (Original Issue
Yield: 7.60%), 11/15/2003 A 1,331,910
---------------------------------------------
1,450,000 New York State, GO UT, 9.875% (Original Issue
Yield: 7.60%), 11/15/2004 A 1,865,207
---------------------------------------------
25,000 Newburgh, NY, GO UT, 6.40%, 4/15/2008 A1 28,858
---------------------------------------------
235,000 Niagara County, NY, GO UT Bonds (Series A),
5.25% (MBIA INS), 8/15/2012 AAA 247,295
---------------------------------------------
175,000 Niagara County, NY, GO UT, 7.10% (MBIA INS),
2/15/2010 AAA 213,948
---------------------------------------------
25,000 Niagara Falls, NY Bridge Commission, Series B, 5.25% (FGIC
INS)/(Original Issue Yield:
5.35%), 10/1/2015 AAA 26,575
---------------------------------------------
20,000 Niagara Frontier Transportation Authority,
Revenue Bonds, 6.00% (Greater Buffalo
International Airport)/(AMBAC INS)/(Original
Issue Yield: 6.15%), 4/1/2007 AAA 21,738
---------------------------------------------
</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 Niagara Wheatfield, NY Central School
District, School Improvements, 7.30%
(Original Issue Yield: 7.35%), 5/15/2007 A2 $ 29,863
---------------------------------------------
50,000 North Tonawanda, NY, GO UT Bonds, 6.05% (FGIC
INS), 10/1/2006 AAA 56,198
---------------------------------------------
25,000 Nyack, NY Unified Free School District, GO
UT, 5.20% (AMBAC INS), 6/15/2004 AAA 26,597
---------------------------------------------
400,000 Oneida, NY Health Care Corp., Revenue Bonds
(Series A), 7.20% (FHA INS), 8/1/2031 A 428,172
---------------------------------------------
185,000 Onondaga County, NY IDA, Revenue Bonds,
6.625% (Anheuser-Busch Cos., Inc.)/(Original
Issue Yield: 6.70%), 8/1/2006 A+ 210,147
---------------------------------------------
85,000 Onondaga County, NY IDA, University and
College Improvements Revenue Bonds, 5.00%,
3/1/2009 Baa2 84,701
---------------------------------------------
50,000 Ontario County, NY, GO UT, 5.50% (Original
Issue Yield: 5.65%), 5/15/2011 Aa3 55,049
---------------------------------------------
25,000 Orchard Park, NY Central School District, GO UT, 6.50% (FGIC
INS)/(Original Issue Yield:
6.25%), 6/1/2002 AAA 26,868
---------------------------------------------
25,000 Ossining Village, NY, 8.10% (FGIC INS),
7/15/2001 AAA 27,345
---------------------------------------------
40,000 Otsego County, NY, GO UT, 6.625% (AMBAC INS),
12/1/2005 AAA 45,988
---------------------------------------------
50,000 Penfield, NY Central School District, GO UT,
5.20% (Original Issue Yield: 5.40%),
6/15/2010 AAA 52,768
---------------------------------------------
25,000 Perry Central School District, NY, GO UT,
5.10% (MBIA INS), 6/15/2001 AAA 25,800
---------------------------------------------
25,000 Pine Bush, NY Central School District, GO UT,
5.875%, 4/1/2006 A 27,431
---------------------------------------------
100,000 Port Authority of New York and New Jersey,
Revenue Refunding Bonds, 7.125% (Original
Issue Yield: 7.283%), 6/1/2025 AA- 104,884
---------------------------------------------
25,000 Putnam County, NY, 7.10%, 8/15/2002 Aa2 27,677
---------------------------------------------
175,000 Riverton Housing Corp., Revenue Bonds, 6.65%
(FHA INS), 8/1/2024 AA 197,601
---------------------------------------------
</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 Rochester, NY, GO UT, 6.00% (Original Issue
Yield: 6.40%), 8/1/2001 AA $ 15,790
---------------------------------------------
50,000 Rockland County, NY, GO UT, 7.00% (MBIA
INS)/(Original Issue Yield: 7.10%), 4/1/2008 AAA 59,727
---------------------------------------------
20,000 Saugerties, NY, GO UT, 5.375% (FSA
INS)/(Original Issue Yield: 5.70%), 6/15/2015 Aaa 21,584
---------------------------------------------
660,000 Schenectady, NY Municipal Housing Authority,
Revenue Bonds, 6.40% (Annie Schaffer Senior
Center, Inc.)/(Original Issue Yield: 6.399%),
5/1/2014 Aa 700,036
---------------------------------------------
40,000 Silver Creek, NY Central School District, GO UT, 6.60% (AMBAC
INS)/(Original Issue Yield:
6.60%), 5/15/2005 AAA 45,498
---------------------------------------------
10,000 Spackenkill, NY Unified Free School District,
GO UT, 6.125%, 9/15/2014 A1 11,487
---------------------------------------------
25,000 Spencerport, NY Central School District, GO UT, 6.00% (MBIA
INS)/(Original Issue Yield:
6.05%), 6/15/2006 AAA 27,916
---------------------------------------------
10,000 Springville, NY, GO UT Refunding Bonds,
7.90%, 8/1/2003 Baa1 11,484
---------------------------------------------
70,000 Sweet Home Central School District NY, GO UT, 5.60% (AMBAC
INS)/(Original Issue Yield:
5.70%), 1/15/2008 AAA 77,216
---------------------------------------------
1,435,000 Syracuse, NY Senior Citizens Housing Corp.,
Series A, 6.125% (East Hill Village
Apartments), 11/1/2010 A- 1,533,341
---------------------------------------------
1,000,000 Tompkins County, NY IDA, Revenue Bonds, 6.05%
(Ithacare Center Project)/(FHA INS), 2/1/2017 AAA 1,078,970
---------------------------------------------
65,000 Tompkins County, NY, GO UT (Series B), 5.625%
(Original Issue Yield: 5.80%), 9/15/2013 Aa2 70,032
---------------------------------------------
290,000 Tompkins, NY Health Care Corp., 10.80% (FHA
INS), 2/1/2028 A 368,581
---------------------------------------------
200,000 Triborough Bridge & Tunnel Authority, NY,
Refunding Revenue Bonds, 6.75% (Original
Issue Yield: 6.821%), 1/1/2009 A+ 234,488
---------------------------------------------
3,000,000 Triborough Bridge & Tunnel Authority, NY, Revenue Bonds, 5.20%
(Original Issue Yield:
5.55%), 1/1/2022 A+ 3,016,770
---------------------------------------------
</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
---------------------------------------------
$ 60,000 Triborough Bridge & Tunnel Authority, NY,
Revenue Refunding Bonds, 6.625%, 1/1/2012 A+ $ 71,531
---------------------------------------------
150,000 Triborough Bridge & Tunnel Authority, NY, Special Obligation Revenue
Bonds (Series A), 6.625% (MBIA INS)/(Original Issue Yield:
6.86%), 1/1/2017 AAA 159,535
---------------------------------------------
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 53,608
---------------------------------------------
50,000 Victor, NY Central Schol District, GO UT, 6.40% (FGIC INS)/(Original
Issue Yield:
6.55%), 11/15/2006 AAA 57,412
---------------------------------------------
50,000 Victor, NY, 7.20% (Original Issue Yield:
7.20%), 12/15/2005 A2 58,314
---------------------------------------------
35,000 Wallkill, NY Central School District, GO UT,
5.75%, 7/15/2014 A3 38,757
---------------------------------------------
15,000 Warwick Valley, NY Central School District, GO UT, 6.55% (FGIC
INS)/(Original Issue
Yield: 6.70%), 6/1/2008 AAA 17,670
---------------------------------------------
30,000 Webster, NY Central School District, GO UT, 6.25% (AMBAC
INS)/(Original Issue Yield:
6.20%), 6/15/2003 AAA 32,834
---------------------------------------------
50,000 West Seneca, NY Central School District, GO UT, 5.625% (FGIC
INS)/(Original Issue Yield:
5.70%), 6/15/2011 AAA 54,283
---------------------------------------------
25,000 West Seneca, NY, GO UT, 6.65% (MBIA
INS)/(Original Issue Yield: 6.80%), 6/1/2005 AAA 28,525
---------------------------------------------
20,000 Westchester County, NY, Depository DTC, GO
UT, 6.60%, 5/1/2005 AAA 22,756
---------------------------------------------
30,000 Westchester County, NY, GO UT, 6.60%
(Original Issue Yield: 6.90%), 5/1/2010 AAA 35,751
---------------------------------------------
25,000 Westchester County, NY, GO UT, 6.70%
(Original Issue Yield: 6.75%), 11/1/2007 AAA 29,440
---------------------------------------------
65,000 Williamsville, NY Central School District, GO UT, 6.50% (MBIA
INS)/(Original Issue Yield:
6.80%), 12/1/2010 AAA 76,926
--------------------------------------------- -----------
Total 51,098,785
--------------------------------------------- -----------
</TABLE>
VISION NEW YORK MUNICIPAL INCOME FUND
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- ------------------------------------------- ------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPALS--CONTINUED
------------------------------------------------------
PUERTO RICO--0.6%
-------------------------------------------
$ 100,000 Puerto Rico Highway and Transportation
Authority, Revenue Refunding Bonds, 6.25%
(FSA LOC), 7/1/2016 AAA $ 117,791
-------------------------------------------
165,000 Puerto Rico Industrial, Medical &
Environmental PCA, Industrial Improvement
Revenue Bonds, 6.50% (Abbott Laboratories),
7/1/2009 Aa1 169,125
-------------------------------------------
25,000 Puerto Rico Industrial, Medical &
Environmental PCA, Revenue Bonds, 5.10%
(American Home Products Corp.)/(Original
Issue Yield: 5.30%), 12/1/2018 A2 24,770
------------------------------------------- -----------
Total 311,686
------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST
$50,113,451)(A) $51,410,471
------------------------------------------- -----------
</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 April 30, 1999, 6.5% of the total investments at market value were subject
to alternative minimum tax.
(a) The cost of investments for federal tax purposes amounts to $50,113,451.
The net unrealized appreciation of investments on a federal tax basis
amounts to $1,297,020 which is comprised of $1,382,638 appreciation and
$85,618 depreciation at April 30, 1999.
Note: The categories of investments are shown as a percentage of net assets
($52,859,716) at April 30, 1999.
The following acronyms are used throughout this portfolio:
AMBAC--American Municipal Bond IDA--Industrial Development Authority
Assurance Corporation INS--Insured
AMT--Alternative Minimum Tax LOC--Letter of Credit
COL--Collateralized MBIA--Municipal Bond Investors
Assurance
FGIC--Financial Guaranty Insurance Company
FHA--Federal Housing Administration MGIC--Mortgage Guaranty Insurance
Corporation
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance PCA--Pollution Control Authority
GO--General Obligation PP--Principal Payment
HFA--Housing Finance Authority PRF--Prerefunded
HUD--Housing and Urban Development UT--Unlimited Tax
(See Notes which are an integral part of the Financial Statements)
VISION EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- ---------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--95.7%
--------------------------------------------
AEROSPACE & DEFENSE--2.7%
----------------------------------
21,000 Allied-Signal, Inc. $ 1,233,750
---------------------------------- -----------
AUTOS--6.2%
----------------------------------
19,700 Ford Motor Co. 1,259,569
----------------------------------
17,400 General Motors Corp. 1,547,513
---------------------------------- -----------
Total 2,807,082
---------------------------------- -----------
BANKING--2.8%
----------------------------------
17,000 Bank of America Corp. 1,224,000
----------------------------------
1,000 BankBoston Corp. 49,000
---------------------------------- -----------
Total 1,273,000
---------------------------------- -----------
CAPITAL EQUIPMENT & SERVICES--3.1%
----------------------------------
33,000 Deere & Co. 1,419,000
---------------------------------- -----------
CHEMICALS--3.8%
----------------------------------
15,500 Air Products & Chemicals, Inc. 728,500
----------------------------------
7,800 Dow Chemical Co. 1,023,262
---------------------------------- -----------
Total 1,751,762
---------------------------------- -----------
DIVERSIFIED--2.6%
----------------------------------
11,100 General Electric Co. 1,171,050
---------------------------------- -----------
ELECTRONIC EQUIPMENT--5.4%
----------------------------------
26,700 Harris Corp. 922,819
----------------------------------
22,200 Pitney Bowes, Inc. 1,552,612
---------------------------------- -----------
Total 2,475,431
---------------------------------- -----------
ENERGY--2.4%
----------------------------------
38,500 Reliant Energy, Inc. 1,090,031
---------------------------------- -----------
FINANCIAL SERVICES--10.7%
----------------------------------
4,900 Bankers Trust New York Corp. 441,306
----------------------------------
</TABLE>
<PAGE>
VISION EQUITY INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- ------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--CONTINUED
-----------------------------------------------
FINANCIAL SERVICES--CONTINUED
-------------------------------------
18,700 Comerica, Inc. $ 1,216,669
-------------------------------------
16,300 Federal National Mortgage Association 1,156,281
-------------------------------------
25,100 Fleet Financial Group, Inc. 1,080,869
-------------------------------------
7,300 J.P. Morgan & Co., Inc. 983,675
------------------------------------- -----------
Total 4,878,800
------------------------------------- -----------
INSURANCE--13.0%
-------------------------------------
12,050 American International Group, Inc. 1,415,122
-------------------------------------
17,500 Chubb Corp. 1,036,875
-------------------------------------
36,500 Conseco, Inc. 1,152,031
-------------------------------------
650 Executive Risk, Inc. 46,638
-------------------------------------
18,950 Jefferson-Pilot Corp. 1,276,756
-------------------------------------
26,900 Reliastar Financial Corp. 988,575
------------------------------------- -----------
Total 5,915,997
------------------------------------- -----------
MANUFACTURING--12.8%
-------------------------------------
14,600 Cooper Industries, Inc. 706,275
-------------------------------------
23,000 Cummins Engine Co., Inc. 1,230,500
-------------------------------------
27,900 Premark International, Inc. 1,027,069
-------------------------------------
29,460 Sonoco Products Co. 760,436
-------------------------------------
21,600 V.F. Corp. 1,112,400
-------------------------------------
15,300 Whirlpool Corp. 1,015,538
------------------------------------- -----------
Total 5,852,218
------------------------------------- -----------
METALS--5.4%
-------------------------------------
20,200 Reynolds Metals Co. 1,259,975
-------------------------------------
39,900 USX-U.S. Steel Group, Inc. 1,206,975
------------------------------------- -----------
Total 2,466,950
------------------------------------- -----------
OIL--8.6%
-------------------------------------
18,500 Ashland, Inc. 781,625
-------------------------------------
</TABLE>
VISION EQUITY INCOME FUND
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- -------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--CONTINUED
------------------------------------------------------------
OIL--CONTINUED
--------------------------------------------------
10,000 Atlantic Richfield Co. $ 839,375
--------------------------------------------------
11,000 Chevron Corp. 1,097,250
--------------------------------------------------
11,500 Mobil Corp. 1,204,625
-------------------------------------------------- -----------
Total 3,922,875
-------------------------------------------------- -----------
PHARMACEUTICALS--2.4%
--------------------------------------------------
15,500 Merck & Co., Inc. 1,088,875
-------------------------------------------------- -----------
RETAIL--1.2%
--------------------------------------------------
12,200 Penney (J.C.) Co., Inc. 556,625
-------------------------------------------------- -----------
TELECOMMUNICATIONS--8.2%
--------------------------------------------------
31,050 AT&T Corp. 1,568,025
--------------------------------------------------
22,300 Bell Atlantic Corp. 1,285,037
--------------------------------------------------
13,200 GTE Corp. 883,575
-------------------------------------------------- -----------
Total 3,736,637
-------------------------------------------------- -----------
UTILITIES-ELECTRIC--4.4%
--------------------------------------------------
23,200 Carolina Power & Light Co. 935,250
--------------------------------------------------
36,200 FirstEnergy Corp. 1,074,688
-------------------------------------------------- -----------
Total 2,009,938
-------------------------------------------------- -----------
TOTAL COMMON STOCKS (IDENTIFIED COST $38,152,933) 43,650,021
-------------------------------------------------- -----------
MUTUAL FUNDS SHARES--3.4%
------------------------------------------------------------
987 SSGA US Government Money Market Fund, Series A 987
--------------------------------------------------
1,538,915 Seven Seas Money Market Fund 1,538,915
-------------------------------------------------- -----------
TOTAL MUTUAL FUNDS SHARES (AT NET ASSET VALUE) 1,539,902
-------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST $39,692,835)(A) $45,189,923
-------------------------------------------------- -----------
</TABLE>
(a) The cost of investments for federal tax purposes amounts to $39,946,821. The
net unrealized appreciation of investments on a federal tax basis amounts to
$5,243,102 which is comprised of $6,531,670 appreciation and $1,288,568
depreciation at April 30, 1999.
Note: The categories of investments are shown as a percentage of net assets
($45,581,757) at April 30, 1999.
(See Notes which are an integral part of the Financial Statements)
VISION GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- ------------------------------------------ -----------
<C> <S> <C>
COMMON STOCKS--98.1%
----------------------------------------------------
AUTO PARTS & EQUIPMENT--3.3%
------------------------------------------
47,175 Borg-Warner Automotive, Inc. $ 2,677,181
------------------------------------------ -----------
CHEMICALS--3.5%
------------------------------------------
115,700 IMC Global, Inc. 2,892,500
------------------------------------------ -----------
CHEMICALS SPECIALITY--3.1%
------------------------------------------
66,600 Hercules, Inc. 2,518,312
------------------------------------------ -----------
COMPUTERS (HARDWARE)--2.9%
------------------------------------------
40,100 (a)Sun Microsystems, Inc. 2,398,481
------------------------------------------ -----------
COMPUTERS SOFTWARE/SERVICES--2.1%
------------------------------------------
50 (a)Oracle Corp. 1,353
------------------------------------------
56,100 (a)The Learning Co., Inc. 1,739,100
------------------------------------------ -----------
Total 1,740,453
------------------------------------------ -----------
ELECTRICAL EQUIPMENT--7.1%
------------------------------------------
65,000 (a)SCI Systems, Inc. 2,474,062
------------------------------------------
194,300 (a)Vishay Intertechnology, Inc. 3,388,106
------------------------------------------ -----------
Total 5,862,168
------------------------------------------ -----------
ELECTRONICS (COMPONENT DISTRIBUTION)--3.0%
------------------------------------------
134,500 (a)Arrow Electronics, Inc. 2,446,219
------------------------------------------ -----------
ELECTRONICS-SEMICONDUCTORS--3.3%
------------------------------------------
80,450 (a)LSI Logic Corp. 2,735,300
------------------------------------------ -----------
FINANCIAL (DIVERSIFIED)--4.0%
------------------------------------------
200,300 Indy Mac Mortgage Holdings, Inc. 3,304,950
------------------------------------------ -----------
HEALTH CARE (LONG TERM CARE)--4.4%
------------------------------------------
161,350 (a)Genesis Health Ventures, Inc. 1,119,366
------------------------------------------
185,604 (a)Healthsouth, Corp. 2,494,054
------------------------------------------ -----------
Total 3,613,420
------------------------------------------ -----------
</TABLE>
VISION GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- ---------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--CONTINUED
--------------------------------------------------
HEALTH CARE (SPECIAL SERVICES)--2.0%
----------------------------------------
50,000 (a)Alza Corp. $ 1,678,125
---------------------------------------- -----------
HOMEBUILDING--3.8%
----------------------------------------
292,050 (a)Sunterra Corp. 3,139,537
---------------------------------------- -----------
INSURANCE (LIFE/HEALTH)--2.2%
----------------------------------------
48,875 Reliastar Financial Corp. 1,796,156
---------------------------------------- -----------
INSURANCE (MULTI-LINE)--2.6%
----------------------------------------
35,750 Hartford Financial Services Group, Inc. 2,107,016
---------------------------------------- -----------
INSURANCE-PROPERTY-CASUALTY--3.7%
----------------------------------------
81,500 Old Republic International Corp. 1,594,344
----------------------------------------
193,050 Reliance Group Holdings, Inc. 1,447,875
---------------------------------------- -----------
Total 3,042,219
---------------------------------------- -----------
INVESTMENT BANKING/BROKERAGE--4.9%
----------------------------------------
30,200 Lehman Brothers Holdings, Inc. 1,677,988
----------------------------------------
50,700 PaineWebber Group, Inc. 2,379,731
---------------------------------------- -----------
Total 4,057,719
---------------------------------------- -----------
MACHINERY-DIVERSIFIED--3.0%
----------------------------------------
105,700 Milacron, Inc. 2,431,100
---------------------------------------- -----------
METAL FABRICATORS--2.2%
----------------------------------------
69,400 Kennametal, Inc. 1,843,437
---------------------------------------- -----------
NATURAL GAS-DISTRIBUTION-PIPE LINE--4.5%
----------------------------------------
26,500 Consolidated Natural Gas Co. 1,576,750
----------------------------------------
105,400 MCN Energy Group, Inc. 2,101,413
---------------------------------------- -----------
Total 3,678,163
---------------------------------------- -----------
OIL & GAS (DRILLING & EQUIPMENT)--3.6%
----------------------------------------
99,950 Baker Hughes, Inc. 2,986,006
---------------------------------------- -----------
OIL (DOMESTIC INTEGRATED)--2.6%
----------------------------------------
50,800 Unocal Corp. 2,111,375
---------------------------------------- -----------
</TABLE>
VISION GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- -------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--CONTINUED
------------------------------------------------------------
PAPER & FOREST PRODUCTS--2.6%
--------------------------------------------------
52,100 Mead Corp. $ 2,178,431
-------------------------------------------------- -----------
PUBLISHING-NEWSPAPERS--3.3%
--------------------------------------------------
194,075 Hollinger International, Inc. 2,729,180
-------------------------------------------------- -----------
RETAIL (COMPUTERS & ELECTRONICS)--2.9%
--------------------------------------------------
32,475 Tandy Corp. 2,352,408
-------------------------------------------------- -----------
RETAIL (HOME SHOPPING)--1.7%
--------------------------------------------------
283,300 (a)Corporate Express, Inc. 1,416,500
-------------------------------------------------- -----------
RETAIL-GENERAL MERCHANDISE CHAIN--1.9%
--------------------------------------------------
102,700 (a)K Mart Corp. 1,527,662
-------------------------------------------------- -----------
RETAIL-SPECIALITY--4.7%
--------------------------------------------------
125,300 (a)General Nutrition Cos., Inc. 2,075,281
--------------------------------------------------
174,900 (a)Officemax, Inc. 1,770,863
-------------------------------------------------- -----------
Total 3,846,144
-------------------------------------------------- -----------
SERVICES (COMMERCIAL & CONSUMER)--2.4%
--------------------------------------------------
159,700 (a)Budget Group, Inc., Class A 1,986,269
-------------------------------------------------- -----------
SERVICES (COMPUTER SYSTEMS)--1.9%
--------------------------------------------------
308,200 (a)CHS Electronics, Inc. 1,560,263
-------------------------------------------------- -----------
STEEL--2.4%
--------------------------------------------------
65,000 USX-U.S. Steel Group, Inc. 1,966,250
-------------------------------------------------- -----------
TRUCKS & PARTS--2.5%
--------------------------------------------------
38,000 Cummins Engine Co., Inc. 2,033,000
-------------------------------------------------- -----------
TOTAL COMMON STOCKS (IDENTIFIED COST $72,490,021) 80,655,944
-------------------------------------------------- -----------
MUTUAL FUND SHARES--3.4%
------------------------------------------------------------
2,754,282 SSGA Money Market Fund (AT NET ASSET VALUE) 2,754,282
-------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST $75,244,303)(B) $83,410,226
-------------------------------------------------- -----------
</TABLE>
VISION GROWTH AND INCOME FUND
- -------------------------------------------------------------------------------
(a) Non-income producing security.
(b) The cost of investments for federal tax purposes amounts to $76,346,816. The
net unrealized appreciation of investments on a federal tax basis amounts to
$7,063,410 which is comprised of $13,595,217 appreciation and $6,531,807
depreciation at April 30, 1999.
Note: The categories of investments are shown as a percentage of net assets
($82,203,339) at April 30, 1999.
(See Notes which are an integral part of the Financial Statements)
VISION CAPITAL APPRECIATION FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- ---------------------------------- ----------
<C> <S> <C>
COMMON STOCKS--97.4%
--------------------------------------------
AIR FREIGHT--2.5%
----------------------------------
18,200 CNF Transportation, Inc. $ 795,112
---------------------------------- ----------
AIRLINES--2.4%
----------------------------------
34,100 Comair Holdings, Inc. 752,331
---------------------------------- ----------
COMMUNICATIONS EQUIPMENT--6.5%
----------------------------------
21,500 (a)ADC Telecommunications, Inc. 1,027,969
----------------------------------
27,200 (a)Newbridge Networks Corp. 1,013,200
---------------------------------- ----------
Total 2,041,169
---------------------------------- ----------
COMPUTERS (HARDWARE)--5.8%
----------------------------------
48,765 (a)Apex PC Solutions, Inc. 810,718
----------------------------------
21,200 (a)Electronics for Imaging, Inc. 1,003,025
---------------------------------- ----------
Total 1,813,743
---------------------------------- ----------
COMPUTERS (PERIPHERALS)--3.0%
----------------------------------
7,600 (a)Lexmark Intl. Group, Class A 938,600
---------------------------------- ----------
COMPUTERS SOFTWARE/SERVICES--6.5%
----------------------------------
2,400 (a)At Home Corp., Class A 345,450
----------------------------------
14,400 (a)Citrix Systems, Inc. 612,000
----------------------------------
2,100 (a)Excite, Inc. 306,600
----------------------------------
34,840 (a)USWeb Corp. 781,722
---------------------------------- ----------
Total 2,045,772
---------------------------------- ----------
CONSUMER FINANCE--1.6%
----------------------------------
3,900 Providian Financial Corp. 503,344
---------------------------------- ----------
CONTAINERS/PACKAGING (PAPER)--2.4%
----------------------------------
78,100 (a)Earthshell Corp. 761,475
---------------------------------- ----------
DISTRIBUTORS (FOOD & HEALTH)--2.3%
----------------------------------
38,550 Bergen Brunswig Corp., Class A 732,450
---------------------------------- ----------
</TABLE>
VISION CAPITAL APPRECIATION FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- ------------------------------------------ -----------
<C> <S> <C>
COMMON STOCKS--CONTINUED
----------------------------------------------------
ELECTRICAL EQUIPMENT--3.3%
------------------------------------------
15,700 SPX Corp. $ 1,025,406
------------------------------------------ -----------
ELECTRONICS-SEMICONDUCTORS--3.5%
------------------------------------------
8,900 (a)Uniphase Corp. 1,080,237
------------------------------------------ -----------
ENGINEERING & CONSTRUCTION--1.7%
------------------------------------------
13,700 (a)Jacobs Engineering Group, Inc. 540,294
------------------------------------------ -----------
FINANCIAL (DIVERSIFIED)--5.3%
------------------------------------------
23,000 (a)Concord EFS, Inc. 767,625
------------------------------------------
15,400 Financial Security Assurance Holdings Ltd. 879,725
------------------------------------------ -----------
Total 1,647,350
------------------------------------------ -----------
HARDWARE & TOOLS--2.6%
------------------------------------------
14,400 Black & Decker Corp. 817,200
------------------------------------------ -----------
HEALTH CARE (DRUGS)--3.8%
------------------------------------------
36,100 ICN Pharmaceuticals, Inc. 1,193,556
------------------------------------------ -----------
HEALTH CARE (DRUGS/PHARMS)--2.2%
------------------------------------------
28,250 (a)Medicis Pharmaceutical Corp., Class A 686,828
------------------------------------------ -----------
HEALTH CARE (MEDICAL PRODS/SUPS)--1.5%
------------------------------------------
8,900 Guidant Corp. 477,819
------------------------------------------ -----------
HOMEBUILDING--1.4%
------------------------------------------
22,800 D. R. Horton, Inc. 440,325
------------------------------------------ -----------
HOUSEHOLD FURNISHINGS & APP.--3.4%
------------------------------------------
15,300 Maytag Corp. 1,046,137
------------------------------------------ -----------
INVESTMENT BANKING/BROKERAGE--1.8%
------------------------------------------
5,100 Schwab (Charles) Corp. 559,725
------------------------------------------ -----------
LEISURE TIME (PRODUCTS)--6.2%
------------------------------------------
31,200 (a)Action Performance Cos., Inc. 1,056,900
------------------------------------------
59,100 Callaway Golf Co. 890,194
------------------------------------------ -----------
Total 1,947,094
------------------------------------------ -----------
</TABLE>
VISION CAPITAL APPRECIATION FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- ------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--CONTINUED
-----------------------------------------------------------
MANUFACTURING (DIVERSIFIED)--0.9%
-------------------------------------------------
4,900 Corning, Inc. $ 280,525
------------------------------------------------- -----------
OIL & GAS (DRILLING & EQUIP)--2.6%
-------------------------------------------------
25,000 Diamond Offshore Drilling, Inc. 826,563
------------------------------------------------- -----------
OIL & GAS (REFINING & MKTG)--2.1%
-------------------------------------------------
24,900 Tosco Corp. 666,075
------------------------------------------------- -----------
PAPER & FOREST PRODUCTS--2.4%
-------------------------------------------------
32,100 (a)Smurfit-Stone Container Corp. 750,338
------------------------------------------------- -----------
RETAIL (BUILDING SUPPLIES)--2.8%
-------------------------------------------------
16,400 Lowe's Cos., Inc. 865,100
------------------------------------------------- -----------
RETAIL (DISCOUNTERS)--5.5%
-------------------------------------------------
35,700 Family Dollar Stores, Inc. 861,263
-------------------------------------------------
18,800 Ross Stores, Inc. 863,625
------------------------------------------------- -----------
Total 1,724,888
------------------------------------------------- -----------
RETAIL-DEPT STORES--0.8%
-------------------------------------------------
3,900 (a)Kohl's Corp. 259,106
------------------------------------------------- -----------
RETAIL-SPECIALITY--3.2%
-------------------------------------------------
33,650 (a)Staples, Inc. 1,009,500
------------------------------------------------- -----------
SERVICES (ADVERTISING/MKTG)--1.8%
-------------------------------------------------
7,600 Omnicom Group, Inc. 551,000
------------------------------------------------- -----------
SERVICES (COMMERCIAL & CONSUM)--0.9%
-------------------------------------------------
8,600 (a)Intermedia Communications, Inc. 276,813
------------------------------------------------- -----------
SHIPPING--2.5%
-------------------------------------------------
21,500 Royal Caribbean Cruises, Ltd. 794,156
------------------------------------------------- -----------
WASTE MANAGEMENT--2.2%
-------------------------------------------------
11,900 Waste Management, Inc. 672,350
------------------------------------------------- -----------
TOTAL COMMON STOCKS (IDENTIFIED COST $26,062,150) 30,522,381
------------------------------------------------- -----------
</TABLE>
VISION CAPITAL APPRECIATION FUND
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
OR SHARES VALUE
---------- -------------------------------------------------- -----------
<C> <S> <C>
COMMERCIAL PAPER--4.8%
-------------------------------------------------------------
-------
$1,500,000 American Express Credit Corp., 4.85%, 5/4/1999 (AT
AMORTIZED COST) $ 1,500,000
-------------------------------------------------- -----------
MUTUAL FUND SHARES--2.7%
-------------------------------------------------------------
855,543 SSGA Money Market Fund (AT NET ASSET VALUE) 855,543
-------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST $28,417,693)(B) $32,877,924
-------------------------------------------------- -----------
</TABLE>
(a)Non-income producing security.
(b) The cost of investments for federal tax purposes amounts to $28,856,701. The
net unrealized appreciation of investments on a federal tax basis amounts to
$4,021,223 which is comprised of $5,632,605 appreciation and $1,611,382
depreciation at April 30, 1999.
Note: The categories of investments are shown as a percentage of net assets
($31,329,440) at April 30, 1999.
(See Notes which are an integral part of the Financial Statements)
VISION EQUITY AND INCOME FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW YORK
U.S. GOVERNMENT MUNICIPAL EQUITY GROWTH AND CAPITAL
SECURITIES INCOME INCOME INCOME APPRECIATION
FUND FUND FUND FUND FUND
- ------------------------ --------------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
- ------------------------
Investments in
securities, at value $61,630,150 $51,410,471 $45,189,923 $83,410,226 $32,877,924
- ------------------------ ----------- ----------- ----------- ----------- -----------
Cash -- 503,584 -- 74,233 --
- ------------------------
Income receivable 1,181,032 926,194 79,384 121,007 9,097
- ------------------------
Receivable for shares
sold 487,410 106,136 327,324 70,321 120,098
- ------------------------
Receivable for
investments sold 1,027,886 -- -- -- --
- ------------------------
Deferred organizational
costs -- -- 174 -- 8,972
- ------------------------ ----------- ----------- ----------- ----------- -----------
Total assets 64,326,478 52,946,385 45,596,805 83,675,787 33,016,091
- ------------------------ ----------- ----------- ----------- ----------- -----------
LIABILITIES:
- ------------------------
Income distribution
payable 159,468 70,826 -- -- --
- ------------------------
Payable for investments
purchased -- -- -- 1,412,005 1,626,192
- ------------------------
Payable for shares
redeemed 46,982 3,431 -- 49,427 28,474
- ------------------------
Accrued expenses 20,070 12,412 15,048 11,016 31,985
- ------------------------ ----------- ----------- ----------- ----------- -----------
Total liabilities 226,520 86,669 15,048 1,472,448 1,686,651
- ------------------------ ----------- ----------- ----------- ----------- -----------
NET ASSETS $64,099,958 $52,859,716 $45,581,757 $82,203,339 $31,329,440
- ------------------------ ----------- ----------- ----------- ----------- -----------
NET ASSETS CONSISTS OF:
- ------------------------
Paid in capital $64,569,655 $51,308,286 $39,822,636 $76,104,400 $34,840,849
- ------------------------
Net unrealized
appreciation
(depreciation) of
investments (284,945) 1,297,020 5,497,088 8,165,923 4,460,231
- ------------------------
Accumulated net realized
gain (loss)
on investments (91,669) 254,101 240,798 (2,068,640) (7,971,640)
- ------------------------
Accumulated
undistributed net
investment
income/(Distributions in
excess of net investment
income) (93,083) 309 21,235 1,656 --
- ------------------------ ----------- ----------- ----------- ----------- -----------
Total Net Assets $64,099,958 $52,859,716 $45,581,757 $82,203,339 $31,329,440
- ------------------------ ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE,
Offering Price and
Redemption Proceeds Per
Share:
- ------------------------
Net Asset Value and
Redemption Proceeds Per
Share $9.51 $10.52 $12.24 $13.45 $11.04
- ------------------------ ----------- ----------- ----------- ----------- -----------
Offering Price Per
Share* $9.96** $11.02** $12.95*** $14.23*** $11.68***
- ------------------------ ----------- ----------- ----------- ----------- -----------
SHARES OUTSTANDING: 6,741,658 5,024,095 3,723,621 6,111,388 2,836,532
- ------------------------ ----------- ----------- ----------- ----------- -----------
Investments, at
identified cost $61,915,095 $50,113,451 $39,692,835 $75,244,303 $28,417,693
- ------------------------ ----------- ----------- ----------- ----------- -----------
Investments, at tax cost $61,915,095 $50,113,451 $39,946,821 $76,346,816 $28,856,701
- ------------------------ ----------- ----------- ----------- ----------- -----------
</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
APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. NEW YORK GROWTH
GOVERNMENT MUNICIPAL EQUITY AND CAPITAL
SECURITIES INCOME INCOME INCOME APPRECIATION
FUND FUND FUND FUND FUND
- ------------------------- ---------- ---------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
- -------------------------
Dividends $ -- $ -- $ 981,174 $ 1,506,147(a) $ 201,833(b)
- -------------------------
Interest 4,209,114 2,499,807 136,419 107,014 151,217
- ------------------------- ---------- ---------- ---------- ------------ ------------
Total investment income 4,209,114 2,499,807 1,117,593 1,613,161 353,050
- -------------------------
EXPENSES:
- -------------------------
Investment advisory fee 429,164 336,546 290,500 739,869 432,670
- -------------------------
Administrative personnel
and services fee 80,780 63,594 54,167 138,723 67,260
- -------------------------
Custodian fees 10,855 3,881 10,705 11,536 6,013
- -------------------------
Transfer and dividend
disbursing agent
fees and expenses 8,594 16,422 9,348 39,816 55,216
- -------------------------
Directors' fees 1,217 469 277 2,891 363
- -------------------------
Auditing fees 12,410 13,308 21,447 13,070 13,257
- -------------------------
Legal fees 367 1,071 693 2,172 2,992
- -------------------------
Portfolio accounting fees 4,734 16,018 344 1,102 1,125
- -------------------------
Shareholder services fees -- -- -- 264,239 127,256
- -------------------------
Share registration costs 15,211 18,224 24,222 13,228 8,298
- -------------------------
Printing and postage 7,419 10,312 7,354 9,333 15,161
- -------------------------
Taxes 4,834 2,352 3,245 12,237 3,519
- -------------------------
Insurance premiums 1,064 903 902 1,004 2,344
- -------------------------
Miscellaneous 15,781 5,278 405 22,713 26,254
- ------------------------- ---------- ---------- ---------- ------------ ------------
TOTAL EXPENSES 592,430 488,378 423,609 1,271,933 761,728
- ------------------------- ---------- ---------- ---------- ------------ ------------
WAIVERS--
- -------------------------
Waiver of investment
advisory fee (29,915) (93,773) -- -- --
- ------------------------- ---------- ---------- ---------- ------------ ------------
TOTAL WAIVERS (29,915) (93,773) -- -- --
- ------------------------- ---------- ---------- ---------- ------------ ------------
NET EXPENSES 562,515 394,605 423,609 1,271,933 761,728
- ------------------------- ---------- ---------- ---------- ------------ ------------
NET INVESTMENT
INCOME/(NET OPERATING
LOSS) $3,646,599 $2,105,202 $ 693,984 $ 341,228 $ (408,678)
- ------------------------- ---------- ---------- ---------- ------------ ------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS:
- -------------------------
Net realized gain (loss)
on investments 736,927 592,035 240,798 (2,004,995) (7,959,870)
- -------------------------
Net change in unrealized
appreciation
(depreciation)
of investments (1,381,493) 182,293 2,976,378 (17,284,916) (7,298,753)
- ------------------------- ---------- ---------- ---------- ------------ ------------
Net realized and
unrealized gain (loss)
on investments (644,566) 774,328 3,217,176 (19,289,911) (15,258,623)
- ------------------------- ---------- ---------- ---------- ------------ ------------
Change in net assets
resulting from
operations $3,002,033 $2,879,530 $3,911,160 $(18,948,683) $(15,667,301)
- ------------------------- ---------- ---------- ---------- ------------ ------------
</TABLE>
(a)Net of foreign taxes withheld $5,043.
(b)Net of foreign taxes withheld $303.
(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
----------------------------- -------------------------
YEAR ENDED APRIL 30, YEAR ENDED APRIL 30,
----------------------------- -------------------------
1999 1998 1999 1998
- ------------------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
- ------------------------
OPERATIONS--
- ------------------------
Net investment income $ 3,646,599 $ 3,407,651 $ 2,105,202 $ 1,733,125
- ------------------------
Net realized gain on
investments 736,927 335,832 592,035 400,518
- ------------------------
Net change in
unrealized appreciation
(depreciation) of
investments (1,381,493) 1,401,949 182,293 919,002
- ------------------------ ------------ ------------ ------------ -----------
Change in net assets
resulting from
operations 3,002,033 5,145,432 2,879,530 3,052,645
- ------------------------ ------------ ------------ ------------ -----------
DISTRIBUTIONS TO
SHAREHOLDERS--
- ------------------------
Distributions from net
investment income (3,646,599) (3,407,651) (2,105,013) (1,735,765)
- ------------------------
Distributions in excess
of net investment
income (40,791)(a) (75,412)(a) -- --
- ------------------------
Distributions from net
realized gains on
investments (143,679) -- (418,108) (150,071)
- ------------------------ ------------ ------------ ------------ -----------
Change in net assets
resulting from
distributions to
shareholders (3,831,069) (3,483,063) (2,523,121) (1,885,836)
- ------------------------ ------------ ------------ ------------ -----------
SHARE TRANSACTIONS--
- ------------------------
Proceeds from sales of
shares 29,820,625 23,612,425 14,820,904 11,968,960
- ------------------------
Net asset value of
shares issued to
shareholders in payment
of distributions
declared 2,004,351 1,983,653 1,729,957 1,370,147
- ------------------------
Cost of shares redeemed (20,817,810) (17,821,660) (7,503,231) (6,530,024)
- ------------------------ ------------ ------------ ------------ -----------
Change in net assets
resulting from
share transactions 11,007,166 7,774,418 9,047,630 6,809,083
- ------------------------ ------------ ------------ ------------ -----------
Change in net assets 10,178,130 9,436,787 9,404,039 7,975,892
- ------------------------
NET ASSETS:
- ------------------------
Beginning of period 53,921,828 44,485,041 43,455,677 35,479,785
- ------------------------ ------------ ------------ ------------ -----------
End of period $ 64,099,958 $ 53,921,828 $ 52,859,716 $43,455,677
- ------------------------ ------------ ------------ ------------ -----------
Undistributed net
investment income
included in net assets
at end of period $ -- $ -- $ 309 $ --
- ------------------------ ------------ ------------ ------------ -----------
Net gain as computed
for federal tax
purposes $ 643,715 $ 474,215 $ 592,034 $ 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 FUND GROWTH AND INCOME FUND
------------------------- --------------------------
YEAR ENDED APRIL 30, YEAR ENDED APRIL 30,
------------------------- --------------------------
1999 1998(A) 1999 1998
- ------------------------ ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
- ------------------------
OPERATIONS--
- ------------------------
Net investment income $ 693,984 $ 169,441 $ 341,228 $ 902,367
- ------------------------
Net realized gain
(loss) on investments 240,798 35,433 (2,004,995) 13,984,928
- ------------------------
Net change in
unrealized appreciation
(depreciation) of
investments 2,976,378 2,520,710 (17,284,916) 21,896,866
- ------------------------ ------------ ----------- ------------ ------------
Change in net assets
resulting from
operations 3,911,160 2,725,584 (18,948,683) 36,784,161
- ------------------------ ------------ ----------- ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS--
- ------------------------
Distributions from net
investment income (701,886) (140,413) (595,621) (757,244)
- ------------------------
Distributions from net
realized gains on
investments (35,324) -- (7,857,216) (24,819,846)
- ------------------------ ------------ ----------- ------------ ------------
Change in net assets
resulting from
distributions to
shareholders (737,210) (140,413) (8,452,837) (25,577,090)
- ------------------------ ------------ ----------- ------------ ------------
SHARE TRANSACTIONS--
- ------------------------
Proceeds from sales of
shares 43,258,619 35,322,334 16,281,454 42,968,234
- ------------------------
Net asset value of
shares issued to
shareholders in payment
of distributions
declared 359,543 90,671 7,555,836 19,837,767
- ------------------------
Cost of shares redeemed (38,613,280) (595,251) (57,636,498) (44,699,312)
- ------------------------ ------------ ----------- ------------ ------------
Change in net assets
resulting from
share transactions 5,004,882 34,817,754 (33,799,208) 18,106,689
- ------------------------ ------------ ----------- ------------ ------------
Change in net assets 8,178,832 37,402,925 (61,200,728) 29,313,760
- ------------------------
NET ASSETS:
- ------------------------
Beginning of period 37,402,925 -- 143,404,067 114,090,307
- ------------------------ ------------ ----------- ------------ ------------
End of period $ 45,581,757 $37,402,925 $ 82,203,339 $143,404,067
- ------------------------ ------------ ----------- ------------ ------------
Undistributed net
investment income
included in net assets
at end of period $ 21,235 $ 29,028 $ 1,656 $ 254,517
- ------------------------ ------------ ----------- ------------ ------------
Net gain (loss) as
computed for federal
tax purposes $ 494,784 $ 35,433 $ (966,072) $ 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
------------------------- --------------------------
YEAR ENDED APRIL 30,
------------------------- --------------------------
1999 1998
- ------------------------ ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
- ------------------------
OPERATIONS--
- ------------------------
Net operating loss $ (408,678) $ (340,531)
- ------------------------
Net realized gain
(loss) on investments (7,959,870) 4,792,594
- ------------------------
Net change in
unrealized appreciation
(depreciation) of
investments (7,298,753) 11,433,260
- ------------------------ ------------ ----------- ------------ ------------
Change in net assets
resulting from
operations (15,667,301) 15,885,323
- ------------------------ ------------ ----------- ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS--
- ------------------------
Distributions from net
realized gains on
investments (1,680,441) (3,397,390)
- ------------------------ ------------ ----------- ------------ ------------
SHARE TRANSACTIONS--
- ------------------------
Proceeds from sales of
shares 17,999,323 33,555,464
- ------------------------
Net asset value of
shares issued to
shareholders in payment
of distributions
declared 1,601,545 2,836,886
- ------------------------
Cost of shares redeemed (46,018,300) (7,226,185)
- ------------------------ ------------ ----------- ------------ ------------
Change in net assets
resulting from
share transactions (26,417,432) (29,166,165)
- ------------------------ ------------ ----------- ------------ ------------
Change in net assets (43,765,174) 41,654,098
- ------------------------
NET ASSETS:
- ------------------------
Beginning of period 75,094,614 33,440,516
- ------------------------ ------------ ----------- ------------ ------------
End of period $ 31,329,440 $75,094,614
- ------------------------ ------------ ----------- ------------ ------------
Undistributed net
investment income
included in net assets
at end of period $ -- $--
- ------------------------ ------------ ----------- ------------ ------------
Net gain (loss) as
computed for federal
tax purposes $ (3,749,801) $ 4,795,280
- ------------------------ ------------ ----------- ------------ ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
VISION EQUITY AND INCOME FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
NET DISTRIBUTIONS
NET ASSET INVESTMENT NET REALIZED DISTRIBUTIONS IN EXCESS OF DISTRIBUTIONS
YEAR VALUE, INCOME AND UNREALIZED TOTAL FROM FROM NET NET FROM NET
ENDED BEGINNING (OPERATING GAIN (LOSS) ON INVESTMENT INVESTMENT INVESTMENT REALIZED
APRIL 30, OF PERIOD LOSS) INVESTMENTS OPERATIONS INCOME INCOME GAINS
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. GOVERNMENT SECURITIES FUND
1995 $9.25 0.56 (0.16) 0.40 (0.56) -- --
1996 $9.09 0.52 0.22 0.74 (0.52) -- --
1997 $9.31 0.58 (0.03) 0.55 (0.58) -- --
1998 $9.28 0.60 0.34 0.94 (0.60) (0.01)(g) --
1999 $9.61 0.58 (0.08) 0.50 (0.57) (0.01)(g) (0.02)
NEW YORK MUNICIPAL INCOME FUND
1995 $9.61 0.46 0.06 0.52 (0.46) -- --
1996 $9.67 0.46 0.23 0.69 (0.46) -- --
1997 $9.90 0.48 0.18 0.66 (0.48) -- --
1998 $10.08 0.46 0.38 0.84 (0.46) -- (0.04)
1999 $10.42 0.46 0.19 0.65 (0.46) -- (0.09)
EQUITY INCOME FUND
1998(e) $9.99 0.08 1.47 1.55 (0.07) -- --
1999 $11.47 0.19 0.78 0.97 (0.19) -- (0.01)
GROWTH AND INCOME FUND
1995 $9.93 0.21 0.43 0.64 (0.22) -- --
1996 $10.35 0.13 2.98 3.11 (0.11) -- --
1997 $13.35 0.13 2.35 2.48 (0.13) -- (0.59)
1998 $15.11 0.11 4.34 4.45 (0.09) -- (3.34)
1999 $16.13 0.05 (1.67) (1.62) (0.07) -- (0.99)
CAPITAL APPRECIATION FUND
1997(d) $10.00 0.02(f) 1.35 1.37 (0.02) (0.03)(g) (0.06)
1998 $11.26 (0.07) 4.44 4.37 -- -- (0.86)
1999 $14.77 (0.00)(h) (3.35) (3.35) -- -- (0.38)
- ---------------------------------------------------------------------------------------------------------
</TABLE>
(a) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(b) Computed on an annualized basis.
(c) During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
(d) Reflects operations for the period from July 3, 1996 (date of initial public
investment) to April 30, 1997.
(e) Reflects operations for the period from September 26, 1997 (date of initial
public investment) to April 30, 1998.
(f) 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.
(g) Distributions are determined in accordance with income tax regulations which
may differ from generally accepted accounting principles. These
distributions did not represent a return of capital for federal tax
purposes.
(h) Per share amount does not round to $0.01.
(See Notes which are an integral part of the Financial Statements)
VISION EQUITY AND INCOME FUNDS
FINANCIAL HIGHLIGHTS--CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
-----------------------------------------------------------------
NET
NET INVESTMENT NET ASSETS,
NET ASSET INVESTMENT INCOME END
TOTAL VALUE, END TOTAL INCOME EXPENSES (OPERATING LOSS) OF PERIOD PORTFOLIO
DISTRIBUTIONS OF PERIOD RETURN(A) EXPENSES(C) (OPERATING LOSS)(C) (AFTER WAIVERS) (AFTER WAIVERS) (000 OMITTED) TURNOVER
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(0.56) $9.09 4.59% 1.44% 5.19% 0.43% 6.20% $29,573 78%
(0.52) $9.31 8.10% 1.33% 5.24% 1.16% 5.41% $34,492 132%
(0.58) $9.28 6.05% 1.31% 6.03% 1.11% 6.23% $44,485 121%
(0.61) $9.61 10.42% 1.12% 6.21% 1.03% 6.30% $53,922 70%
(0.60) $9.51 5.31% 0.97% 5.90% 0.92% 5.95% $64,100 68%
(0.46) $9.67 5.58% 1.52% 3.68% 0.40% 4.80% $27,346 51%
(0.46) $9.90 7.18% 1.38% 4.26% 1.04% 4.60% $32,621 113%
(0.48) $10.08 6.76% 1.39% 4.36% 1.01% 4.74% $35,480 79%
(0.50) $10.42 8.37% 1.27% 4.04% 0.96% 4.35% $43,456 45%
(0.55) $10.52 6.37% 1.02% 4.18% 0.82% 4.38% $52,860 44%
(0.07) $11.47 15.51% 1.60%(b) 0.89%(b) 1.08%(b) 1.41%(b) $37,403 11%
(0.20) $12.24 8.59% 1.02% 1.67% 1.02% 1.67% $45,582 55%
(0.22) $10.35 6.61% 1.43% 1.20% 0.47% 2.16% $39,358 79%
(0.11) $13.35 30.18% 1.16% 1.09% 1.16% 1.09% $65,119 77%
(0.72) $15.11 18.61% 1.14% 0.87% 1.14% 0.87% $114,090 134%
(3.43) $16.13 31.40% 1.21% 0.65% 1.21% 0.65% $143,404 88%
(1.06) $13.45 (9.26%) 1.20% 0.32% 1.20% 0.32% $82,203 145%
(0.11) $11.26 13.97% 1.84%(b) (0.78%)(b) 0.88%(b) 0.18%(b) $33,440 41%
(0.86) $14.77 40.07% 1.51% (0.65%) 1.50% (0.64%) $75,095 86%
(0.38) $11.04 (22.67%) 1.50% (0.80%) 1.50% (0.80%) $31,329 132%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
VISION EQUITY AND INCOME FUNDS
COMBINED NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1999
- -------------------------------------------------------------------------------
(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 nine portfolios (individ-
ually 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 limited
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 60 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.
Distributions in excess of net investment income were a result of certain book
and tax timing differences. These distributions did not represent a return of
capital for federal income tax purposes.
Income and capital gain distributions are determined in accordance with income
tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
paydowns and net operating losses. The following reclassification has been
made to the financial statements.
<TABLE>
<CAPTION>
INCREASE (DECREASE)
--------------------------------------
PAID-IN ACCUMULATED NET UNDISTRIBUTED NET
FUND NAME CAPITAL REALIZED GAIN (LOSS) INVESTMENT INCOME
--------- ------- -------------------- -----------------
<S> <C> <C> <C>
U.S. Government Securities
Fund $ (2) $ 1,196 $(1,194)
New York Municipal Income
Fund (117) (3) 120
Equity Income Fund -- (109) 109
Growth and Income Fund 3 (1,535) 1,532
Capital Appreciation Fund (417,819) 9,141 408,678
</TABLE>
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, 1999 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 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
FUND TO EXPIRE IN 2007
---- -------------------------
<S> <C>
Growth & Income Fund $ 966,072
Capital Appreciation Fund 3,749,801
</TABLE>
Net realized capital losses on U.S. Government Securities Fund and Capital
Appreciation Fund of $93,005 and $3,782,831, respectively, attributable to
security transactions incurred after October 31, 1998, are treated as arising
on the first day of the Funds' next taxable year (May 1, 1999).
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.
OTHER--Investment transactions are accounted for on the trade date.
(3) CAPITAL STOCK
At April 30, 1999, there were 1,000,000,000 shares of $0.001 par value capital
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
---------------------- ----------------------
YEAR ENDED APRIL 30, YEAR ENDED APRIL 30,
---------------------- ----------------------
1999 1998 1999 1998
- --------------------------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Shares sold 3,079,153 2,474,532 1,398,178 1,147,398
- ---------------------------
Shares issued to sharehold-
ers in payment of
distributions declared 206,405 207,650 163,247 131,036
- ---------------------------
Shares redeemed (2,156,921) (1,860,431) (708,022) (626,243)
- --------------------------- ---------- ---------- ---------- ----------
Net change resulting from
share transactions 1,128,637 821,751 853,403 652,191
- --------------------------- ---------- ---------- ---------- ----------
</TABLE>
<TABLE>
<CAPTION>
EQUITY INCOME GROWTH AND INCOME
FUND FUND
--------------------- ----------------------
YEAR ENDED APRIL 30, YEAR ENDED APRIL 30,
--------------------- ----------------------
1999 1998(A) 1999 1998
- ----------------------------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C>
Shares sold 3,806,743 3,309,512 1,212,792 2,600,661
- -----------------------------
Shares issued to shareholders
in payment of distributions
declared 32,115 8,251 626,173 1,327,720
- -----------------------------
Shares redeemed (3,375,899) (57,101) (4,618,805) (2,585,548)
- ----------------------------- ---------- --------- ---------- ----------
Net change resulting from
share transactions 462,959 3,260,662 (2,779,840) 1,342,833
- ----------------------------- ---------- --------- ---------- ----------
</TABLE>
(a) For the period from September 26, 1997 (date of initial public investment)
to April 30, 1998.
VISION EQUITY AND INCOME FUNDS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITAL APPRECIATION
FUND
---------------------
YEAR ENDED APRIL 30,
---------------------
1999 1998
- ----------------------------------------------------- ---------- ---------
<S> <C> <C>
Shares sold 1,463,245 2,401,323
- -----------------------------------------------------
Shares issued to shareholders in payment of distribu-
tions declared 144,542 223,026
- -----------------------------------------------------
Shares redeemed (3,856,786) (509,464)
- ----------------------------------------------------- ---------- ---------
Net change resulting from share transactions (2,248,999) 2,114,885
- ----------------------------------------------------- ---------- ---------
</TABLE>
(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
investment 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
terminate this voluntary waiver or reimbursement at any time at its sole
discretion.
<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
administrative personnel and fund accounting services. FServ through its
subsidiary, 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 voluntarily choose to waive a portion of its fee. FServ can modify or
terminate this voluntary waiver at anytime at its sole discretion.
DISTRIBUTION SERVICES FEE--The Corporation has adopted a Distribution Plan (the
"Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, each
Fund 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 distribution 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 year ended April 30, 1999.
VISION EQUITY AND INCOME FUNDS
- -------------------------------------------------------------------------------
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services Agreement
with Manufacturers and Traders Trust Company, the Funds may pay Manufacturers
and Traders Trust Company up to 0.25% of average daily net assets of the Funds
annually. 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
Federated 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 year ended
April 30, 1999, the following amounts were expensed by each Fund:
<TABLE>
<CAPTION>
AMOUNT AMORTIZED
EXPENSES OF FOR THE YEAR ENDED
ORGANIZING THE FUND APRIL 30, 1999
------------------- ------------------
<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 $ 79
Growth and Income Fund* $18,626 $1,542
Capital Appreciation Fund $19,915 $7,107
</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
year ended April 30, 1999, were as follows:
<TABLE>
<CAPTION>
FUND PURCHASES SALES
- ---- ------------ ------------
<S> <C> <C>
U.S. Government Securities Fund $ 48,126,615 $ 40,361,544
New York Municipal Income Fund $ 29,710,794 $ 20,641,869
Equity Income Fund $ 25,963,749 $ 21,627,678
Growth and Income Fund $149,120,705 $184,725,563
Capital Appreciation Fund $ 63,513,862 $ 89,164,912
</TABLE>
(6) CONCENTRATION OF CREDIT RISK
Since New York Municipal Income Fund 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-ex-
empt mutual fund that invests nationally. In order to reduce the credit risk
associated with such factors, at April 30, 1999, 36.5% 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 exceed
6.3% of total market value of investments.
(7) 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.
(8) SUBSEQUENT EVENT
Subsequent to year ended April 30, 1999, the Corporation added Vision Large- Cap
Growth Fund to the series, which became effective June 1, 1999.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
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To the Board of Directors and Shareholders of VISION GROUP OF FUNDS, INC.:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of the Vision U.S. Government Securities Fund,
Vision New York Municipal Income Fund, Vision Equity Income Fund, Vision Growth
and Income Fund, and Vision Capital Appreciation Fund (five of the portfolios
constituting the Vision Group of Funds, Inc.), as of April 30, 1999, and the
related statements of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended, and
financial highlights for each of the periods presented therein. These financial
statements and the financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of April
30, 1999, by correspondence with the custodian and brokers, or other appropriate
auditing procedures where replies from brokers were not received. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Vision U.S. Government Securities Fund, Vision New York Municipal Income Fund,
Vision Equity Income Fund, Vision Growth and Income Fund, and Vision Capital
Appreciation Fund at April 30, 1999, the results of their operations for the
year then ended, the changes in their net assets for each of the two years in
the period then ended, and the financial highlights for each of the periods
presented therein, in conformity with generally accepted accounting principles.
ERNST & YOUNG LLP
Boston, Massachusetts
June 11, 1999
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.
Federated Securities Corp., Distributor
Federated Investors Tower
Pittsburgh, PA 15222-3779
Cusip 92830F406
Cusip 92830F505
Cusip 92830F802
Cusip 92830F604
Cusip 92830F703
[RECYCLED LOGO APPEARS HERE]
G00158-07 (6/99)
[LOGO]
ANNUAL REPORT
TO SHAREHOLDERS
APRIL 30, 1999
VISION
U.S. Government
Securities Fund
- -------------------------------------------------------------------------------
VISION
New York Municipal
Income Fund
- -------------------------------------------------------------------------------
VISION
Equity Income
Fund
- -------------------------------------------------------------------------------
VISION
Growth and Income
Fund
- -------------------------------------------------------------------------------
VISION
Capital Appreciation
Fund
Manufacturers and Traders Trust Company
Investment Adviser to the Funds
One M&T Plaza
Buffalo, NY 14240-4556
A. The graphic presentation here displayed consists of a line graph. The
corresponding components of the line graph are listed in the upper left
quadrant. The Vision U.S. Government Securities Fund ("U.S. Government
Securities Fund") is represented by a solid line. The Lehman Brothers Aggregate
Bond Index ("LBABI") is represented by broken line. The line graph is a visual
representation of a comparison of change in value of a $10,000 hypothetical
investment in the U.S. Government Securities Fund and the LBABI. The "x" axis
reflects computation periods from September 22, 1993 (start of performance) to
April 30, 1999. The "y" axis reflects the cost of the investment. The right
margin reflects the ending value of the hypothetical investment in the U.S.
Government Securities Fund, as compared to the LBABI; the ending values were
$12,752 and $14,186, respectively. The legend in the bottom quadrant of the
graphic presentation indicates the U.S. Government Securities Fund's Average
Annual Total Returns for the 1-year, 5-year, and start of performance periods
ended April 30, 1999, which were 0.60%, 5.89%, and 4.44%, respectively.
B. The graphic presentation here displayed consists of a line graph. The
corresponding components of the line graph are listed in the upper left
quadrant. The Vision New York Municipal Income Fund ("New York Municipal Income
Fund") is represented by a solid line. The Lehman Brothers New York Tax-Exempt
Index ("LBNYTEI") is represented by broken line. The line graph is a visual
representation of a comparison of change in value of a $10,000 hypothetical
investment in the New York Municipal Income Fund and the LBNYTEI. The "x" axis
reflects computation periods from September 22, 1993 (start of performance) to
April 30, 1999. The "y" axis reflects the cost of the investment. The right
margin reflects the ending value of the hypothetical investment in the New York
Municipal Income Fund, as compared to the LBNYTEI; the ending values were
$13,138 and $13,756, respectively. The legend in the bottom quadrant of the
graphic presentation indicates the New York Municipal Income Fund's Average
Annual Total Returns for the 1-year, 5-year, and start of performance periods
ended April 30, 1999, which were 1.59%, 5.87%, and 4.99%, respectively.
C. The graphic presentation here displayed consists of a line graph. The
corresponding components of the line graph are listed in the upper left
quadrant. The Vision Equity Income Fund ("Equity Income Fund") is represented by
a solid line. The Standard and Poor's 500 Index ("S&P 500") is represented by
broken line and the Standard & Poor's 500/Barra Value Index ("S&P BV") is
represented by a dotted line. The line graph is a visual representation of a
comparison of change in value of a $10,000 hypothetical investment in the Equity
Income Fund and the S&P 500 and the S&P BV. The "x" axis reflects computation
periods from September 26, 1997 (start of performance) to April 30, 1999. The
"y" axis reflects the cost of the investment. The right margin reflects the
ending value of the hypothetical investment in the Equity Income Fund, as
compared to the S&P 500 and the S&P BV; the ending values were $11,853, $14,423,
and $15,512, respectively. The legend in the bottom quadrant of the graphic
presentation indicates the Equity Income Fund's Average Annual Total Returns for
the 1-year and start of performance periods ended April 30, 1999, which were
2.60%, and 11.26%, respectively.
D The graphic presentation here displayed consists of a line graph. The
corresponding components of the line graph are listed in the upper left
quadrant. The Vision Growth & Income Fund ("Growth & Income Fund") is
represented by a solid line. The Standard and Poor's 500 Index ("S&P 500") is
represented by broken line and the Russell Midcap Value Index ("RMVI") is
represented by a dotted line. The line graph is a visual representation of a
comparison of change in value of a $10,000 hypothetical investment in the Growth
& Income Fund and the S&P 500 and RMVI. The "x" axis reflects computation
periods from November 29, 1993 (start of performance) to April 30, 1999. The "y"
axis reflects the cost of the investment. The right margin reflects the ending
value of the hypothetical investment in the Growth & Income Fund, as compared to
the S&P 500 and RMVI; the ending values were $18,721, $32,449, and $23,723,
respectively. The legend in the bottom quadrant of the graphic presentation
indicates the Growth & Income Fund's Average Annual Total Returns for the
1-year, 5-year and start of performance periods ended April 30, 1999, which were
(14.26%), 13.14%, and 12.05%, respectively.
E The graphic presentation here displayed consists of a line graph. The
corresponding components of the line graph are listed in the upper left
quadrant. The Vision Capital Appreciation Fund ("Capital Appreciation Fund") is
represented by a solid line. The Russell Midcap Growth Index ("RMGI") is
represented by a broken line. The line graph is a visual representation of a
comparison of change in value of a $10,000 hypothetical investment in the
Capital Appreciation Fund and the RMGI. The "x" axis reflects computation
periods from July 3, 1996 (start of performance) to April 30, 1999. The "y" axis
reflects the cost of the investment. The right margin reflects the ending value
of the hypothetical investment in the Capital Appreciation Fund, as compared to
the RMGI; the ending values were $11,666 and $16,539, respectively. The legend
in the bottom quadrant of the graphic presentation indicates the Growth & Income
Fund's Average Annual Total Returns for the 1-year and start of performance
periods ended April 30, 1999, which were (26.92%) and 5.60%, respectively.
