RULE 497(e)
Registration No. 33-36317
[GRAPHIC OMITTED]
CHASE MANHATTAN VISTA FUNDS
PROSPECTUS
VISTA SELECT SHARES OF NEW JERSEY DAILY MUNICIPAL INCOME FUND
March 2, 1998
New Jersey Daily Municipal Income Fund, Inc. (the "Fund") is an open-end
management investment company that is a short-term, tax-exempt money market fund
whose investment objectives are to seek as high a level of current income exempt
from regular Federal income taxes and to the extent possible from New Jersey
gross income tax, as is believed to be consistent with preservation of capital,
maintenance of liquidity and stability of principal. No assurance can be given
that those objectives will be achieved. This Prospectus relates exclusively to
the Vista Select shares class of the Fund. The Fund is concentrated in the
securities issued by New Jersey. Additionally, the Fund may invest a significant
percentage of its assets in a single issuer, and therefore an investment in the
Fund may be riskier than an investment in other types of money market funds. The
Fund offers two classes of shares to the general public, however only Class A
shares are offered by this Prospectus. The Class A shares of the Fund are
subject to a service fee pursuant to the Fund's Rule 12b-1 Distribution and
Service Plan and are sold through financial intermediaries who provide servicing
to Class A shareholders for which they receive compensation from the Manager and
the Distributor. The Class B shares of the Fund are not subject to a service fee
and either are sold directly to the public or are sold through financial
intermediaries that do not receive compensation from the Manager or Distributor.
In all other respects, the Class A and Class B shares represent the same
interests in the income and assets of the Fund.
This Prospectus sets forth concisely the information a prospective investor
should know before investing in the Fund. A Statement of Additional Information
has been filed with the Securities and Exchange Commission (the "SEC") and is
available upon request and without charge by calling 1-800-34-VISTA. The
"Statement of Additional Information" bears the same date as this Prospectus and
is incorporated by reference into this Prospectus in its entirety. The SEC
maintains a web site (http://www.sec.gov) that contains the Statement of
Additional Information and other reports and information regarding the Fund
which have been filed electronically with the SEC.
Investors should be aware that the Chase Vista Select shares may not be
purchased other than through certain securities dealers with whom Vista Fund
Distributors, Inc. ("VFD") has entered into agreements for this purpose,
directly from VFD or through certain "Participating Organizations" (see
"Investments Through Participating Organizations") with whom they have accounts.
Vista Select shares have been created for the primary purpose of providing a New
Jersey tax-free money market fund product for shareholders of certain funds
distributed by VFD. Shares of the Fund other than the Chase Vista Select shares
are offered pursuant to a separate prospectus.
Reich & Tang Asset Management L.P., a registered investment adviser, acts as
Manager of the Fund and Reich & Tang Distributors, Inc., a registered
broker-dealer and member of the National Association of Securities Dealers,
Inc., acts as distributor of the Fund's shares.
An investment in the Fund is neither insured nor guaranteed by the United States
Government. The Fund intends to maintain a stable net asset value of $1.00 per
share although there can be no assurance that this value will be maintained.
Shares in the Fund are not deposits or obligations of, or guaranteed or endorsed
by, any bank, and the shares are not insured by the Federal Deposit Insurance
Corporation, the Federal Reserve Board, or any other agency.
This Prospectus should be read and retained by investors for future reference.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC OR ANY STATE
SECURITIES COMMISSION NOR HAS THE SEC OR ANY STATE SECURITIES COMMISSION PASSED
UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE. SHARES OF THE FUND ARE NOT BEING OFFERED VIA THE
INTERNET TO RESIDENTS OF PARTICULAR STATES.
<PAGE>
TABLE OF CONTENTS
Table of Contents......................................................... 2
Table of Fees and Expenses................................................ 3
Financial Highlights...................................................... 4
Introduction.............................................................. 5
Investment Objectives, Policies and Risk Considerations................... 6
New Jersey Risk Factors...................................................12
Management of The Fund....................................................16
Description of Common Stock...............................................19
Dividends and Distributions...............................................20
How to Purchase and Redeem Shares.........................................20
Initial Purchase of Vista Select Shares..............................21
Subsequent Purchases of Shares.......................................23
Redemption of Shares.................................................24
Exchange Privilege...................................................26
Specified Amount Automatic Withdrawal Plan...........................27
Investments Through Participating Organizations......................27
Distribution and Service Plan.............................................29
Federal Income Taxes......................................................30
New Jersey Income Taxes...................................................32
General Information ......................................................33
Net Asset Value...........................................................33
Custodian, Transfer Agent and Dividend Agent..............................34
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TABLE OF FEES AND EXPENSES
Annual Fund Operating Expenses
(as a percentage of average net assets)
<TABLE>
<CAPTION>
Class A shares Class B shares
<S> <C> <C>
Management Fees 0.30% 0.30%
12b-1 Fees 0.20% 0.00%
Other Expenses 0.36% 0.35%
Administration Fees 0.21% 0.21%
Total Fund Operating
Expenses (After Fee Waiver) 0.86% 0.65%
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Example 1 year 3 years 5 years 10 years
- ------- ------ ------- ------- --------
You would pay the following expenses on a $1000 investment, assuming 5% annual
return (cumulative through the end of each year):
Class A $9 $27 $48 $106
Class B $7 $21 $36 $81
</TABLE>
The purpose of the above fee table is to assist an investor in understanding the
various costs and expenses that an investor in the Fund will bear directly or
indirectly. For a further discussion of these fees see "Management of the Fund"
and "Distribution and Service Plan" herein.
The figures reflected in this example should not be considered as a
representation of past or future expenses. Actual expenses may be greater or
less than those shown above.
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FINANCIAL HIGHLIGHTS
(for a share outstanding throughout the period)
The following financial highlights of New Jersey Daily Municipal Income Fund,
Inc. has been audited by McGladrey & Pullen LLP, Independent Certified Public
Accountants, whose report thereon appears in the Statement of Additional
Information.
<TABLE>
<CAPTION>
Year Ended
CLASS A October 31, October 26, 1990
---------------------------------------------------------------------- (Inception) to
1997 1996 1995 1994 1993 1992 October 31, 1991
-------- ------ ------ ------ ------ ------ ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations: -------- -------- -------- -------- -------- -------- --------
Net investment income.............. 0.027 0.027 0.030 0.020 0.020 0.030 0.042
Less Distributions:
Dividends from net investment income ( 0.027) ( 0.027) ( 0.030) ( 0.020) ( 0.020) ( 0.030) ( 0.042)
-------- -------- -------- -------- -------- -------- --------
Net asset value, end of period...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ======== ========
Total Return........................ 2.70% 2.69% 3.08% 2.03% 1.98% 3.01% 4.62%*
Ratios/Supplemental Data
Net assets, end of period (000)..... $217,529 $151,421 $130,128 $ 105,929 $78,347 $ 46,374 $ 26,238
Ratios to average net assets:
Expenses......................... 0.86%+# 0.78%+# 0.72%+ 0.66%+ 0.61%+ 0.42%+ 0.27%*+
Net investment income............ 2.66%+# 2.65%+# 3.02%+ 2.02%+ 1.95%+ 2.88%+ 4.32%*+
</TABLE>
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<TABLE>
<CAPTION>
February 9, 1996
Year (Commencement
Ended of Offering) to
October 31, October 31,
Class B 1997 1996
-------- ---------
<S> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period $ 1.00 $ 1.00
Income from investment operations: -------- --------
Net investment income............... 0.029 0.020
Less distributions:
Dividends from net investment income ( 0.029) ( 0.020)
-------- --------
Net asset value, end of period...... $ 1.00 $ 1.00
======== ========
Total Return........................ 2.91% 2.77%*
Ratios/Supplemental Data
Net assets, end of period (000)..... $ 315 $ 366
Ratios to average net assets:
Expenses......................... 0.65%+# 0.61%#*
Net investment income............ 2.88%+# 2.72%#*
* Annualized
+ Net of management, administration and shareholder servicing fees waived
which were equivalent to .00% .06%, .18%, .26%, .35%, .70%, and .70%, of
average net assets respectively, plus expense reimbursement which were
equivalent to .00%, .00%, .00%, .00%, .00%, .04%, and .53% of average net
assets, respectively.
# Includes expense offsets.
</TABLE>
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INTRODUCTION
New Jersey Daily Municipal Income Fund, Inc. (the "Fund") is an open-end
management investment company that is a short-term, tax-exempt money market fund
whose investment objectives are to seek as high a level of current income exempt
under current law, in the opinion of bond counsel to the issuer at the date of
issuance, from regular Federal income tax, and, to the extent possible, from New
Jersey gross income tax, as is believed to be consistent with preservation of
capital, maintenance of liquidity and stability of principal by investing
principally in short-term, high quality debt obligations of the State of New
Jersey, Puerto Rico and other United States territories, and their political
subdivisions as described under "Investment Objectives, Policies and Risks"
herein. The Fund also may invest in municipal securities of issuers located in
states other than New Jersey, the interest income on which will be, in the
opinion of bond counsel to the issuer at the date of issuance, exempt from
regular Federal income tax, but will be subject to New Jersey income tax for New
Jersey residents.
Interest on certain municipal securities purchased by the Fund may be a
preference item for purposes of the Federal alternative minimum tax. The Fund
seeks to maintain an investment portfolio with a dollar-weighted average
maturity of 90 days or less, and to value its investment portfolio at amortized
cost and maintain a net asset value of $1.00 per share, although there can be no
assurance that this value will be maintained. The Fund intends to invest all of
its assets in tax-exempt obligations; however, it reserves the right to invest
up to 20% of its assets in taxable obligations. This is a summary of the Fund's
fundamental investment policies which are set forth in full under "Investment
Objectives, Policies and Risks" herein and in the Statement of Additional
Information and may not be changed without approval of a majority of the Fund's
outstanding shares. Of course, no assurance can be given that these objectives
will be achieved.
The Fund's investment adviser is Reich & Tang Asset Management L.P. (the
"Manager"), which is a registered investment adviser and which currently acts as
investment manager or administrator to fifteen other open-end management
investment companies. The Fund's shares are distributed through Reich & Tang
Distributors, Inc. (the "Distributor"), with whom the Fund has entered into a
Distribution Agreement and a Shareholder Servicing Agreement (with respect to
Class A Shares of the Fund only) pursuant to the Fund's distribution and service
plan adopted under Rule 12b-1 under the Investment Company Act of 1940, as
amended (the "1940 Act"). (See "Distribution and Service Plan" herein.)
On any day on which the New York Stock Exchange, Inc. is open for trading ("Fund
Business Day"), investors may, without charge by the Fund, purchase and redeem
shares of the Fund's common stock at their net asset value next determined after
receipt of the
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order. An investor's subscription will be accepted after the payment is
converted into Federal funds, and shares will be issued as of the Fund's next
net asset value determination which is made as of 12 noon on each Fund Business
Day. (See "How to Purchase and Redeem Shares" and "Net Asset Value" herein.)
Dividends from accumulated net income are declared by the Fund on each Fund
Business Day.
The Fund generally pays interest dividends monthly. Net capital gains, if any,
will be distributed at least annually, and in no event later than within 60 days
after the end of the Fund's fiscal year. All dividends and distributions of
capital gains are automatically invested in additional shares of the same Class
of the Fund unless a shareholder has elected by written notice to the Fund to
receive either of such distributions in cash. (See "Dividends and Distributions"
herein.)
The Fund intends that its investment portfolio may be concentrated in New Jersey
Municipal Obligations as defined herein and bank Participation Certificates
therein. A summary of special risk factors affecting the State of New Jersey is
set forth under "New Jersey Risk Factors" in the Statement of Additional
Information.
The Fund's Board of Directors is authorized to divide the unissued shares into
separate series of stock, one for each of the Fund's separate investment
portfolios that may be created in the future.
Chase Vista Select shares have been created for the primary purpose of providing
a New Jersey tax-free money market fund product for investors who purchase
shares directly from VFD, through dealers with whom VFD has entered into
agreements for this purpose or through certain "Participating Organizations"
(see "Investments Through Participating Organizations" herein) with whom they
have accounts or who acquire Chase Vista Select shares through the exchange of
shares of certain other investment companies as hereinafter described. Chase
Vista Select shares are identical to other shares of the Fund, which are offered
pursuant to a separate prospectus, with respect to investment objectives and
yield, but differ with respect to certain other matters. For example,
shareholders who hold other shares of the Fund may not participate in the
exchange privilege described herein and have different arrangements for
redemptions by check.
INVESTMENT OBJECTIVES, POLICIES
AND RISK CONSIDERATIONS
The Fund is an open-end management investment company that is a short-term,
tax-exempt money market fund whose investment objectives are to seek as high a
level of current income exempt from regular Federal income tax and, to the
extent possible, from New Jersey gross income tax, as is believed to be
consistent with the preservation of capital, maintenance of liquidity and
stability of principal. There can be no assurance that the Fund will achieve its
investment objectives.
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The Fund's assets will be invested primarily in high quality debt obligations
issued by or on behalf of the State of New Jersey, other states, territories and
possessions of the United States, and their authorities, agencies,
instrumentalities and political subdivisions, the interest on which is, in the
opinion of bond counsel to the issuer at the date of issuance, currently exempt
from regular Federal income taxation ("Municipal Obligations") and in
Participation Certificates (which, in the opinion of Battle Fowler LLP, counsel
to the Fund, cause the Fund to be treated as the owner of the underlying
Municipal Obligations) in Municipal Obligations purchased from banks, insurance
companies or other financial institutions ("Participation Certificates").
Dividends paid by the Fund which are "exempt-interest dividends" by virtue of
being properly designated by the Fund as derived from Municipal Obligations and
Participation Certificates will be exempt from regular Federal income tax
provided the Fund complies with Section 852(b)(5) of Subchapter M of the
Internal Revenue Code of 1986, as amended (the "Code").
Although the Supreme Court has determined that Congress has the authority to
subject the interest on bonds such as the Municipal Obligations to Federal
income taxation, existing law excludes such interest from regular Federal income
tax. Such interest, and "exempt-interest dividends", however, may be subject to
the Federal alternative minimum tax. Securities, the interest income on which
may be subject to the Federal alternative minimum tax (including Participation
Certificates), may be purchased by the Fund without limit. Securities, the
interest income on which is subject to regular Federal, state and local income
tax, will not exceed 20% of the value of the Fund's total assets. (See "Federal
Income Taxes" herein.) Exempt-interest dividends paid by the Fund correctly
identified by the Fund as derived from obligations issued by or on behalf of the
State of New Jersey or any New Jersey local government, or their
instrumentalities, authorities or districts ("New Jersey Municipal Obligations")
will be exempt from the New Jersey gross income tax. Exempt-interest dividends
correctly identified by the Fund as derived from obligations of Puerto Rico and
the Virgin Islands, as well as any other types of obligations that New Jersey is
prohibited from taxing under the Constitution, the laws of the United States of
America or the New Jersey Constitution ("Territorial Municipal Obligations")
also should be exempt from the New Jersey gross income tax provided the Fund
complies with New Jersey law. (See "New Jersey Income Taxes" herein.) To the
extent suitable New Jersey Municipal Obligations are not available for
investment by the Fund, the Fund may purchase Municipal Obligations issued by
other states, their agencies and instrumentalities, the dividends on which will
be designated by the Fund as derived from interest income which will be, in the
opinion of bond counsel to the issuer at the date of issuance, exempt from
regular Federal
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<PAGE>
income tax but will be subject to the New Jersey gross income tax. However,
except as a temporary defensive measure during periods of adverse market
conditions as determined by the Manager, the Fund will invest at least 65% of
its assets in New Jersey Municipal Obligations, although the exact amount of the
Fund's assets invested in such securities will vary from time to time. The
Fund's investments may include "when-issued" Municipal Obligations, stand-by
commitments and taxable repurchase agreements. Although the Fund will attempt to
invest 100% of its assets in Municipal Obligations and in Participation
Certificates in Municipal Obligations, the Fund reserves the right to invest up
to 20% of the value of its total assets in securities, the interest income on
which is subject to regular Federal, state and local income tax. The Fund will
invest more than 25% of its total assets in Participation Certificates purchased
from banks in industrial revenue bonds and other New Jersey Municipal
Obligations. The investment objectives of the Fund described in this paragraph
may not be changed unless approved by the holders of a majority of the
outstanding shares of the Fund that would be affected by such a change. As used
in this Prospectus, the term "majority of the outstanding shares" of the Fund
means, respectively, the vote of the lesser of (i) 67% or more of the shares of
the Fund present at a meeting, if the holders of more than 50% of the
outstanding shares of the Fund are present or represented by proxy or (ii) more
than 50% of the outstanding shares of the Fund.
The Fund may only purchase securities that have been determined by the Fund's
Board of Directors to present minimal credit risks and that are Eligible
Securities at the time of acquisition. The term Eligible Securities means: (i)
Municipal Obligations with remaining maturities of 397 days or less and rated in
the two highest short-term rating categories by any two nationally recognized
statistical rating organizations ("NRSROs") or in such categories by the only
NRSRO that has rated the Municipal Obligations (collectively, the "Requisite
NRSROs"); (ii) Municipal Obligations or Participation Certificates which are
subject to a Demand Feature or Guarantee (as such terms are defined in rule 2a-7
of the 1940 Act) which have received a rating from an NRSRO or such guarantor
has received a rating from an NRSRO with respect to a class of debt obligations
(or any debt obligation within that class) that is comparable in priority and
security to the guarantee (unless the guarantor directly or indirectly,
controls, is controlled by or is under common control with an issuer of the
security subject to the guarantee); and the issuer of the Demand Feature or
Guarantee, or another institution, has undertaken promptly to notify the holder
of the security in the event the Demand Feature or Guarantee is substituted with
another Demand Feature or Guarantee; (iii) unrated Municipal Obligations
determined by the Fund's Board of Directors to be of comparable quality. In
addition,
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Municipal Obligations with remaining maturities of 397 days or less but that at
the time of issuance were long-term securities (i.e. with maturities greater
than 366 days) are deemed unrated and maybe purchased if such had received a
long-term rating from the Requisite NRSROs in one of the three highest rating
categories. Provided, however, that such may not be purchased if it (i) does not
satisfy the rating requirements set forth in the preceding sentence and (ii) it
has received a long-term rating from any NRSRO that is not within the three
highest rating categories. A determination of comparability by the Board of
Directors is made on the basis of its credit evaluation of the issuer, which may
include an evaluation of a letter of credit, guarantee, insurance or other
credit facility issued in support of the Municipal Obligations or Participation
Certificates. (See "Variable Rate Demand Instruments and Participation
Certificates" in the Statement of Additional Information.) While there are
several organizations that currently qualify as NRSROs, two examples of NRSROs
are Standard & Poor's Rating Services, a division of The McGraw-Hill Companies
("S&P") and Moody's Investors Service, Inc. ("Moody's"). The two highest ratings
by S&P and Moody's are: "AAA" and "AA" by S&P, in the case of long-term bonds
and notes; or "Aaa" and "Aa" by Moody's in the case of bonds; "SP-1" and "SP-2"
by S&P, or "MIG-1" and "MIG-2" by Moody's in the case of notes; "A-1" and "A-2"
by S&P or "Prime-1" and "Prime-2" by Moody's in the case of tax-exempt
commercial paper. The highest rating in the case of variable and floating demand
notes is "VMIG-1" by Moody's and "SP-1/AA" by S&P. Such instruments may produce
a lower yield than would be available from less highly rated instruments.
Subsequent to its purchase by the Fund, the quality of an investment may cease
to be rated or its rating may be reduced such that the investment is no longer a
First Tier Security or is rated below the minimum required for purchase by the
Fund. If this occurs, the Board of Directors of the Fund shall promptly reassess
whether the security presents minimal credit risks and shall cause the Fund to
take such action as the Board of Directors determines is in the best interest of
the Fund and its shareholders. Reassessment, however, is not required if the
security is disposed of or matures within five business days of the Manager
becoming aware of the new rating and provided further that the Board of
Directors is subsequently notified of the Manager's actions. First Tier Security
means any Eligible Security that: (i) is a rated security that has received a
short-term rating from the Requisite NRSROs in the highest short-term rating
category for debt obligations; (ii) is an unrated security that is as determined
by the fund's board of directors to be of comparable quality; (iii) is a
security issued by a registered investment company that is a money market fund;
or (iv) is a government security.
In addition, in the event that a security (1) is in default, (2) ceases
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to be an Eligible Security, or (3) is determined to no longer present minimal
credit risks or an event of insolvency occurs with respect to the issuer of a
portfolio security or the provider of any Demand Feature or Guarantee, the Fund
will dispose of the security absent a determination by the Fund's Board of
Directors that disposal of the security would not be in the best interest of the
Fund. In the event that a security is disposed of, as soon as practicable, such
disposition shall occur consistent with achieving an orderly disposition by
sale, exercise of any demand feature, or otherwise. In the event of a default
with respect to a security which immediately before default accounted for 1/2 of
1% or more of the Fund's total assets, the Fund shall promptly notify the SEC of
such fact and of the actions that the Fund intends to take in response to the
situation.
All investments by the Fund will mature or will be deemed to mature within 397
days or less from the date of acquisition and the average maturity of the Fund
portfolio (on a dollar-weighted basis) will be 90 days or less. The maturities
of variable rate demand instruments held in the Fund's portfolio will be deemed
to be the longer of the period required before the Fund is entitled to receive
payment of the principal amount of the instrument through demand, or the period
remaining until the next interest rate adjustment, although the stated
maturities may be in excess of 397 days.
With respect to 75% of its total assets, the Fund shall invest not more than 5%
of its total assets in Municipal Obligations or Participation Certificates
issued by a single issuer. Provided, however, the Fund shall not invest more
than 5% of its total assets in Municipal Obligations or Participation
Certificates issued by a single issuer, unless the Municipal Obligations are
First Tier Securities.
In view of the "concentration" of the Fund in bank Participation Certificates in
New Jersey Municipal Obligations, which may be secured by bank letters of credit
or guarantees, an investment in the Fund should be made with an understanding of
the characteristics of the banking industry and the risks which such an
investment may entail which include extensive governmental regulation, changes
in the availability and cost of capital funds, and general economic conditions.
(See "Variable Rate Demand Instruments and Participation Certificates" in the
Statement of Additional Information.) Banks are subject to extensive
governmental regulations which may limit both the amounts and types of loans and
other financial commitments which may be made and interest rates and fees which
may be charged. The profitability of this industry is largely dependent upon the
availability and cost of capital funds for the purpose of financing lending
operations under prevailing money market conditions. Also, general economic
conditions play an important part in the operations of this industry and
exposure to credit losses arising from possible financial difficulties of
borrowers might affect a bank's ability to meet its obligations under a letter
of credit. The Fund may invest 25%
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or more of the net assets of any portfolio in securities that are related in
such a way that an economic, business or political development or change
affecting one of the securities would also affect the other securities
including, for example, securities the interest upon which is paid from revenues
of similar type projects, or securities the issuers of which are located in the
same state.
The Fund has adopted the following fundamental investment restrictions which
apply to all portfolios and which may not be changed unless approved by a
majority of the outstanding shares of each series of the Fund's shares that
would be affected by such a change. The Fund is subject to further investment
restrictions that are set forth in the Statement of Additional Information.
The Fund may not:
(1) Borrow Money. This restriction shall not apply to borrowings from banks for
temporary or emergency (not leveraging) purposes, including the meeting of
redemption requests that might otherwise require the untimely disposition
of securities, in an amount up to 15% of the value of the Fund's total
assets (including the amount borrowed) valued at market less liabilities
(not including the amount borrowed) at the time the borrowing was made.
While borrowings exceed 5% of the value of the Fund's total assets, the
Fund will not make any investments. Interest paid on borrowings will reduce
net income.
(2) Pledge, hypothecate, mortgage or otherwise encumber its assets, except in
an amount up to 15% of the value of its total assets and only to secure
borrowings for temporary or emergency purposes.
(3) Purchase securities subject to restrictions on disposition under the
Securities Act of 1933 ("restricted securities"), except the Fund may
purchase variable rate demand instruments which contain a demand feature.
The Fund will not invest in repurchase agreements maturing in more than
seven days if any such investment together with securities that are not
readily marketable held by the Fund exceed 10% of the Fund's net assets.
(4) Invest more than 25% of its assets in the securities of "issuers" in any
single industry, provided that the Fund may invest more than 25% of its
assets in bank Participation Certificates and there shall be no limitation
on the purchase of those Municipal Obligations and other obligations issued
or guaranteed by the United States government, its agencies or
instrumentalities. Immediately after the acquisition of any securities
subject to a Demand Feature or Guarantee (as such terms are defined in Rule
2a-7 under the Investment Company Act of 1940), with respect to 75% of the
total assets of the Fund, not more then 10% of the Fund's assets may be
invested in
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securities that are subject to a Guarantee or Demand Feature from the same
institution. However, the Fund may only invest more than 10% of its assets
in securities subject to a Guarantee or Demand Feature issued by a
non-controlled person.
(5) Invest in securities of other investment companies, except the Fund may
purchase unit investment trust securities where such unit trusts meet the
investment objectives of the Fund and then only up to 5% of the Fund's net
assets, except as they may be acquired as part of a merger, consolidation
or acquisition of assets.
The Fund intends to qualify as a "regulated investment company" under Subchapter
M of the Code. The Fund will be restricted in that at the close of each quarter
of the taxable year, at least 50% of the value of its total assets must be
represented by cash, government securities, investment company securities and
other securities limited in respect of any one issuer to not more than 5% in
value of the total assets of the Fund and to not more than 10% of the
outstanding voting securities of such issuer. In addition, at the close of each
quarter of its taxable year, not more than 25% in value of the Fund's total
assets may be invested in securities of one issuer other than government
securities. The limitations described in this paragraph regarding qualification
as a "regulated investment company" are not fundamental policies and may be
revised to the extent applicable Federal income tax requirements are revised.
(See "Federal Income Taxes" herein.)
The primary purpose of investing in a portfolio of New Jersey Municipal
Obligations is the special tax treatment accorded New Jersey resident individual
investors. However, payment of interest and preservation of principal are
dependent upon the continuing ability of the New Jersey issuers and/or obligors
of state, municipal and public authority debt obligations to meet their
obligations thereunder. Investors should consider the greater risk of the Fund's
concentration versus the safety that comes with a less concentrated investment
portfolio and should compare yields available on portfolios of New Jersey issues
with those of more diversified portfolios including out-of-state issues before
making an investment decision. The Fund's management believes that by
maintaining the Fund's investment portfolio in liquid, short-term, high quality
investments, including the Participation Certificates and other variable rate
demand instruments that have high quality credit support from banks, insurance
companies or other financial institutions, the Fund is largely insulated from
the credit risks that may exist on long-term New Jersey Municipal Obligations.
For additional information, please refer to the Statement of Additional
Information.
NEW JERSEY RISK FACTORS
This summary is included for the purpose of providing a general description of
the credit and
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financial conditions of the State of New Jersey. For a more complete description
of these risk factors, see "New Jersey Risk Factors" in the Statement of
Additional Information.
After enjoying an extraordinary boom during the mid-1980's, New Jersey as well
as the rest of the Northeast slipped into a slowdown well before the national
recession which officially began in July 1990 (according to the National Bureau
of Economic Research). At the onset of that recession, New Jersey experienced
accelerated declines in its construction and manufacturing sectors and overall
increases in the rates of unemployment. In the wake of the continued expansion
of the national economy which began in late 1993, New Jersey's economy has
experienced a protracted recovery that in 1994 began to generate internal
momentum due to increases in employment and income levels. Unemployment in New
Jersey has continued to recede while home-building and retail sales have
continued to increase steadily from 1992 lows. New Jersey has benefited from the
national recovery. At the end of calendar year 1997, New Jersey's recovery was
in its sixth year and appears to be sustainable now that the national economy
has "soft landed." Reasons for cautious optimism in New Jersey include
increasing employment levels, a low jobless rate, and a higher-than-national
level of per capita personal income.
New Jersey's Constitution and budget and appropriations system require a
balanced budget. Pursuant to the State Constitution, no money may be drawn from
the State Treasury except for appropriations made by law. In addition, all
monies for the support of State purposes must be provided for in one general
appropriation law covering one and the same fiscal year. No general
appropriations law or other law appropriating money for any State purpose may be
enacted if the total amount of appropriations for the fiscal year exceed the
total revenue anticipated for that fiscal year. The State's current Fiscal Year
ends June 30th. The largest part of the total financial operations of the State
is accounted for in the General Fund, which is the fund into which all State
revenues not otherwise restricted by statute are deposited and from which
appropriations are made.
The primary method for State financing of capital projects is through the sale
of the general obligation bonds of the State. These bonds are backed by the full
faith and credit of the State. State tax revenues and certain other fees are
pledged to meet the principal and interest payments required to fully pay the
debt. No general obligation debt can be issued by the State without prior voter
approval.
New Jersey's local finance system is regulated by various statutes designed to
assure that all local governments and their issuing authorities remain on a
sound financial basis. Regulatory and remedial statutes are enforced by the
Division of Local Government Services (the "Division") in the State Department
of Community Affairs. The Local Budget Law imposes specific budgetary
14
<PAGE>
procedures upon counties and municipalities ("local units"). Every local unit
must adopt an operating budget which is balanced on a cash basis, and items of
revenue and appropriation must be independently audited by a registered
municipal accountant. The Division reviews all municipal and county annual
budgets prior to adoption. This process insures that every municipality and
county annually adopts a budget balanced on a cash basis, within limitations on
appropriations or tax levies, respectively, and making adequate provision for
principal of and interest on indebtedness falling due in the fiscal year,
deferred charges and other statutory expenditure requirements.
The Local Government Cap Law (the "Cap Law") generally limits the year-to-year
increase of the total appropriations of any municipality and the tax levy of any
county to either 5% or an index rate determined annually by the Director,
whichever is less. Certain exceptions exist to the Cap Law's limitation on
increases in appropriations. The principal exceptions to these limitations are
municipal and county appropriations to pay debt service requirements; to comply
with other State or Federal mandates enacted after the effective date of the Cap
Law; amounts approved by referendum; and, in the case of municipalities only, to
fund the preceding year's cash deficit or to reserve for shortfalls in tax
collections.
The Local Budget Law limits the amount of tax anticipation notes that may be
issued by local units and requires the repayment of such notes within three
months of the end of the fiscal year (six months in the case of counties) in
which issued. No local unit is permitted to issue bonds for the payment of
current expenses. Local units may not issue bonds to pay outstanding
obligations, except for refunding purposes, and then only with the approval of
the Local Finance Board. Local units may issue bond anticipation notes for
temporary periods not exceeding in the aggregate approximately ten years from
the date of issue. The debt that any local unit may authorize is limited to a
percentage of its equalized valuation basis, which is the three-year average of
the equalized value of all taxable real property and improvements within the
geographic boundaries of the local unit.
Chapter 75 of the Pamphlet Laws of 1991, signed into law on March 28, 1991,
requires certain municipalities and permits all other municipalities to adopt
the State fiscal year in place of the existing calendar fiscal year.
Municipalities that change fiscal years must adopt a six month transition budget
for January to June. Since expenditures would be expected to exceed revenues
primarily because state aid for the calendar year would not be received by the
municipality until after the end of the transition year budget, the act
authorizes the issuance of Fiscal Year Adjustment Bonds to fund the one time
deficit for the six month transition budget. The act provides that the deficit
in the six month transition budget may be funded initially with bond
anticipation notes based on the estimated deficit
15
<PAGE>
in the six month transition. Notes issued in anticipation of Fiscal Year
Adjustment Bonds, including renewals, can only be issued for up to one year
unless the Local Finance Board permits the municipality to renew them for a
further period. The Local Finance Board must confirm the actual deficit
experienced by the municipality. The municipality then may issue Fiscal Year
Adjustment Bonds to finance the deficit on a permanent basis. The purpose of the
act is to assist municipalities that are heavily dependent on state aid and that
have had to issue tax anticipation notes to fund operating cash flow deficits
each year. While the act does not authorize counties to change their fiscal
years, it does provide that counties with cash flow deficits may issue Fiscal
Year Adjustment Bonds as well.
New Jersey's school districts operate under the same comprehensive review and
regulation as do its counties and municipalities. Certain exceptions and
differences are provided, but the State supervision of school finance closely
parallels that of local governments. The State Department of Education has been
empowered with the necessary and effective authority in extreme cases to take
over the operation of local school districts which cannot or will not correct
severe and complex educational deficiencies.
In each school district having a Board of School Estimate, the Board of School
Estimate examines the budget request and fixes the appropriation amounts for the
next year's operating budget after a public hearing. This board, whose
composition is fixed by statute, certifies the budget to the municipal governing
bodies and to the local board of education. If either the local board of
estimate disagrees, it must appeal to the State Commissioner of Education (the
"Commissioner") to request changes.
In each school district without a Board of School Estimate, the elected board of
education develops the budget proposal and, after public hearing, submits to the
voters of such district for approval. Previously authorized debt service is not
subject to referendum in the annual budget process. If approved, the budget goes
into effect. If defeated, the governing body of each municipality in the school
district has approximately 20 days to determine the amount necessary to be
appropriated for each item appearing in such budget. Should the governing body
fail to certify any amount determined by them to be necessary for any item
rejected at the election, the board of education of such district may appeal the
action to the Commissioner.
School district bonds and temporary notes are issued in conformity with the
School Bond Law. Schools are subject to debt limits and to State regulation of
their borrowing. The debt limitation on school district bonds depends upon the
classification of the school district, but may be as high as 4% of the average
equalized valuation basis of the constituent municipality. In certain cases
involving school districts in cities with populations exceeding
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<PAGE>
100,000, the debt limit is 8% of the average equalized valuation basis of the
constituent municipality, and in cities with population in excess of 80,000, the
debt limit is 6% of the aforesaid average equalized valuation.
In 1982, school districts were given an alternative to the traditional method of
bond financing capital improvements pursuant to the Lease Purchase Law. The
Lease Purchase Law permits school districts to acquire a site and school
buildings through a lease purchase agreement with a private lessor corporation.
The lease purchase agreement does not require voter approval. The rent payments
attributable to the lease purchase agreement are subject to annual appropriation
by the school district and are required to be included in the annual current
expense budget of the school district. Furthermore, the rent payments
attributable to the lease purchase agreement do not constitute debt of the
school district and therefore do not impact on the school district's debt
limitation. Lease purchase agreements in excess of five years require the
approval of the Commissioner and the Local Finance Board.
The Local Authorities Fiscal Control Law provides for State supervision of the
fiscal operations and debt issuance practices of independent local authorities
and special taxing districts by the State Department of Community Affairs. The
Local Authorities Fiscal Control Law applies to all autonomous public bodies
created by counties or municipalities, which are empowered to issue bonds, to
impose facility or service charges, or to levy taxes in their districts. This
encompasses most autonomous local authorities (sewerage, municipal utilities,
parking, pollution control, improvement, etc.) and special taxing districts
(fire, water, sewer, street lighting, etc.). The Local Finance Board exercises
approval power over the creation of new authorities and special districts as
well as their dissolution. The Local Finance Board also reviews, conducts public
hearings and issues findings and recommendations on any proposed project
financing of an authority or district, and on any proposed financing agreement
between a municipality or county and an authority or special district. The
Director reviews and approves annual budgets of authorities and special
districts.
MANAGEMENT OF THE FUND
The Fund's Board of Directors, which is responsible for the overall management
and supervision of the Fund, has employed the Manager to serve as investment
manager of the Fund. The Manager provides persons satisfactory to the Fund's
Board of Directors to serve as officers of the Fund. Such officers, as well as
certain other employees and directors of the Fund, may be directors or officers
of NEIC Operating Partnership, L.P. ("NEICOP") or employees of the Manager or
its affiliates. Due to the services performed by the Manager, the Fund currently
has no employees and its officers are not required to devote full-time to the
affairs of the Fund. The Statement of Additional Information contains general
background information
17
<PAGE>
regarding each director and principal officer of the Fund.
The Manager is a Delaware limited partnership with its principal office at 600
Fifth Avenue, New York, New York 10020. As of January 31, 1998, the Manager was
investment manager, advisor or supervisor with respect to assets aggregating
approximately $11 billion. The Manager acts as manager or administrator of
fifteen other investment companies and also advises pension trusts, profit
sharing trusts and endowments.
Effective January 1, 1998, NEICOP is the limited partner and owner of a 99.5%
interest in the Manager replacing New England Investment Companies, L.P.
("NEICLP") as the limited partner and owner of such interest in the Manager due
to a restructuring by New England Investment Companies, Inc. ("NEIC"). Reich &
Tang Asset Management, Inc. (a wholly-owned subsidiary of NEICOP) is the sole
general partner and owner of the remaining .5% interest of the Manager. NEIC, a
Massachusetts corporation, serves as the managing general partner of NEICOP.
Reich & Tang Asset Management, Inc. is an indirect subsidiary of Metropolitan
Life Insurance Company ("MetLife"). Also, MetLife directly and indirectly owns
approximately 47% of the outstanding partnership interests of NEICOP, and may be
deemed a "controlling person" of the Manager. Reich & Tang, Inc. owns directly
and indirectly approximately 13.7% of the outstanding partnership interests of
NEICOP.
MetLife is a mutual life insurance company with assets of $297.6 billion at
December 31, 1996. It is the second largest life insurance company in the United
States in terms of total assets. On August 30, 1996, The New England Mutual Life
Insurance Company ("The New England") and MetLife merged, with MetLife being the
continuing company. MetLife provides a wide range of insurance and investment
products and services to individuals and groups and is the leader among United
States life insurance companies in terms of total life insurance in force, which
exceeded $1.6 trillion at December 31, 1996 for MetLife and its insurance
affiliates. MetLife and its affiliates provide insurance or other financial
services to approximately 36 million people worldwide.
NEICOP is a holding company offering a broad array of investment styles across a
wide range of asset categories through thirteen subsidiaries, divisions and
affiliates offering a wide array of investment styles and products to
institutional clients. Its business units, in addition to the manager, include
AEW Capital Management, L.P., Back Bay Advisors, L.P., Capital Growth
Management, Limited Partnership, Greystone Partners, L.P., Harris Associates,
L.P., Jurika & Voyles, L.P., Loomis, Sayles & Company, L.P., New England Funds,
L.P., New England Investment Associates, Inc., Snyder Capital Management, L.P.,
Vaughan, Nelson, Scarborough & McCullough, L.P., and Westpeak Investment
Advisors, L.P. These affiliates in the aggregate are investment
18
<PAGE>
advisors or managers to 80 other registered investment companies.
The recent restructuring of NEICLP did not result in a change in control of the
manager and has no impact upon the Manager's performance of its responsibilities
and obligations. The merger between The New England and MetLife resulted in an
"assignment" of the Investment Management Contract relating to the Fund. Under
the 1940 Act, such an assignment caused the automatic termination of this
agreement. On November 28, 1995, the Board of Directors, including a majority of
the directors who are not interested persons (as defined in the 1940 Act) of the
Fund or the Manager, approved a new Investment Management Contract effective
August 30, 1996, which has a term which extends to July 31, 1998 and may be
continued in force thereafter for successive twelve-month periods beginning each
August 1, provided that such continuance is specifically approved annually by
majority vote of the Fund's outstanding voting securities or by its Board of
Directors, and in either case by a majority of the directors who are not parties
to the Investment Management Contract or interested persons of any such party,
by votes cast in person at a meeting called for the purpose of voting on such
matter.
The Investment Management Contract was approved by a majority of the
shareholders of the Fund on July 12, 1996 and contains the same terms and
conditions governing the Manager's investment management responsibilities as the
Fund's previous Investment Management Contract with the Manager, except as to
the date of execution and termination.
Pursuant to the Investment Management Contract, the Manager manages the Fund's
portfolio of securities and makes decisions with respect to the purchase and
sale of investments, subject to the general control of the Board of Directors of
the Fund. Pursuant to the Investment Management Contract, the Manager receives
from the Fund a fee equal to .30% per annum of the Fund's average daily net
assets for managing the Fund's investment portfolio and performing related
services.
Pursuant to the Administrative Services Contract for the Fund, the Manager
performs clerical, accounting supervision and office service functions for the
Fund and provides the Fund with the personnel to: (i) supervise the performance
of bookkeeping and related services by Investors Fiduciary Trust Company, the
Fund's bookkeeping agent; (ii) prepare reports to and filings with regulatory
authorities; and (iii) perform such other services as the Fund may from time to
time request of the Manager. The personnel rendering such services may be
employees of the Manager or its affiliates. The Manager, at its discretion, may
voluntarily waive all or a portion of the administrative services fee. For its
services under the Administrative Services Contract, the Manager receives a fee
equal to .21% per
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<PAGE>
annum of the Fund's average daily net assets. Any portion of the total fees
received by the Manager may be used to provide shareholder services and for
distribution of Fund shares. (See "Distribution and Service Plan" herein.) In
addition, Reich & Tang Distributors, Inc., the Distributor, receives a servicing
fee equal to .20% per annum of the average daily net assets of the Class A
shares of the Fund under the Shareholder Servicing Agreement. The fees are
accrued daily and paid monthly. Investment management fees and operating
expenses, which are attributable to both Classes of shares of the Fund, will be
allocated daily to each Class of shares based on the percentage of shares
outstanding for each Class at the end of the day.
DESCRIPTION OF
COMMON STOCK
The Fund was incorporated in Maryland on July 24, 1990. The authorized capital
stock of the Fund consists of twenty billion shares of stock having a par value
of one tenth of one cent ($.001) per share. The Fund's Board of Directors is
authorized to divide the unissued shares into separate series of stock, each
series representing a separate, additional investment portfolio. Shares of all
series will have identical voting rights, except where, by law, certain matters
must be approved by a majority of the shares of the affected series. Each share
of any series of shares when issued has equal dividend, distribution,
liquidation and voting rights within the series for which it was issued, and
each fractional share has those rights in proportion to the percentage that the
fractional share represents of a whole share. Generally, all shares will be
voted in the aggregate, except if voting by Class is required by law or the
matter involved affects only one Class, in which case shares will be voted
separately by Class. There are no conversion or preemptive rights in connection
with any shares of the Fund. All shares, when issued in accordance with the
terms of the offering, will be fully paid and nonassessable. Shares are
redeemable at net asset value, at the option of the shareholder. As of January
31, 1998, the amount of shares owned by all officers and directors as a group
was less than 1% of the outstanding shares of the Fund.
The Fund is subdivided into two classes of common stock, Class A and Class B.
Each share, regardless of class, will represent an interest in the same
portfolio of investments and will have identical voting, dividend, liquidation
and other rights, preferences, powers, restrictions, limitations,
qualifications, designations and terms and conditions, except that: (i) the
Class A and Class B shares will have different class designations; (ii) only the
Class A shares will be assessed a service fee of .20% of the average daily net
assets of the Class A shares of the Fund pursuant to the Rule 12b-1 Distribution
and Service Plan of the Fund; (iii) only the holders of the Class A shares would
be entitled to vote on matters pertaining to the Plan and any related agreements
in accordance with provisions of Rule 12b-1;and (iv) the exchange privilege will
permit shareholders to exchange their shares only for
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<PAGE>
shares of the same class of a Fund that participates in a exchange privilege
with the Fund. (See "Exchange Privilege" herein.) Payments that are made under
the Plans will be calculated and charged daily to the appropriate class prior to
determining daily net asset value per share and dividends/distributions.
Chase Vista Select shares have been created for the primary purpose of providing
a New Jersey tax-free money market fund product for investors who purchase
shares directly from VFD, through dealers with whom VFD has entered into
agreements for this purpose (see "Investments Through Participating
Organizations" herein) with whom they have accounts, or who acquire Chase Vista
Select shares through the exchange of shares of certain other investment
companies as hereinafter described. Chase Vista Select shares are identical to
other shares of the Fund, which are offered pursuant to a separate prospectus,
with respect to investment objectives and yield, but differ with respect to
certain other matters. For example, shareholders who hold other shares of the
Fund may not participate in the exchange privilege described herein and have
different arrangements for redemptions by check.
The shares of the Fund have non-cumulative voting rights, which means that the
holders of more than 50% of the shares outstanding voting for the election of
directors can elect 100% of the directors if such holders choose to do so, and,
in that event, the holders of the remaining shares will not be able to elect any
person or persons to the Board of Directors.
DIVIDENDS AND
DISTRIBUTIONS
The Fund declares dividends equal to all its net investment income (excluding
capital gains and losses, if any, and amortization of market discount) on each
Fund Business Day and pays dividends monthly. Fund Business Day means
weekdays (Monday through Friday) except customary business holidays and Good
Friday. There is no fixed dividend rate. In computing these dividends,
interest earned and expenses are accrued daily.
Net realized capital gains, if any, are distributed at least annually and in no
event later than within 60 days after the end of the Fund's fiscal year. All
dividends and distributions of capital gains are automatically invested in
additional Fund shares of the same Class of shares immediately upon payment
thereof unless a shareholder has elected by written notice to the Fund to
receive either of such distributions in cash.
The Class A shares will bear the service fee under the Plan. As a result, the
net income of and the dividends payable to the Class A shares will be lower than
the net income of and dividends payable to the Class B shares of the Fund.
Dividends paid to each Class of shares of the Fund will, however, be declared
and paid on the same days at the same times and, except as noted with respect to
the service fees payable under the Plan, will be
21
<PAGE>
determined in the same manner and paid in the same amounts.
HOW TO PURCHASE AND
REDEEM SHARES
Investors may invest in Chase Vista Select shares through VFD or through dealers
with whom VFD has entered into agreements for this purpose as described herein
and those who have accounts with Participating Organizations may invest in the
Chase Vista Select shares through their Participating Organizations in
accordance with the procedures established by the Participating Organizations.
(See "Investments Through Participating Organizations" herein.) Only Class A
shares are offered through this Prospectus. Certain Participating Organizations
are compensated by the Distributor from its shareholder servicing fee and by the
Manager from its management fee for the performance of these services. An
investor who purchases shares through a Participating Organization that receives
payment from the Manager or the Distributor will become a Class A shareholder.
All other investors, and investors who have accounts with Participating
Organizations but who do not wish to invest in the Fund through their
Participating Organizations, may invest in the Fund directly as Class B
shareholders of the Fund and not receive the benefit of the servicing functions
performed by a Participating Organization. Class B shares may also be offered to
investors who purchase their shares through Participating Organizations who do
not receive compensation from the Distributor or the Manager because they may
not be legally permitted to receive such as fiduciaries. The Manager pays the
expenses incurred in the distribution of Class B shares. Participating
Organizations whose clients become Class B shareholders will not receive
compensation from the Manager or Distributor for the servicing they may provide
to their clients. The minimum initial investment in the Chase Vista Select
shares is $2,500. Initial investments may be made in any amount in excess of the
applicable minimums. The minimum amount for subsequent investments is $100.
The Fund sells and redeems its shares on a continuing basis at their net asset
value and does not impose a charge for either sales or redemptions. All
transactions in Fund shares are effected through the Fund's transfer agent,
which accepts orders for purchases and redemptions from Participating
Organizations, VFD, and from dealers with whom VFD has entered into agreements
for this purpose.
In order to maximize earnings on its portfolio, the Fund normally has its assets
as fully invested as is practicable. Many securities in which the Fund invests
require immediate settlement in funds of Federal Reserve member banks on deposit
at a Federal Reserve Bank (commonly known as "Federal Funds"). Accordingly, the
Fund does not accept a subscription or invest an investor's payment in portfolio
securities until the payment has been converted into Federal Funds.
Shares will be issued as of the first determination of the Fund's net
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<PAGE>
asset value per share for each Class made after acceptance of the investor's
order at the net asset value per share first determined after receipt of the
order. Shares begin accruing income dividends on the day they are purchased. The
Fund reserves the right to reject any subscription for its shares. Certificates
for Fund shares will not be issued to an investor.
Shares are issued as of 12 noon, New York City time, on any Fund Business Day on
which an order for the shares and accompanying Federal Funds are received by the
Fund's transfer agent before 12 noon. Orders accompanied by Federal Funds and
received after 12 noon, New York City time, on a Fund Business Day will not
result in share issuance until the following Fund Business Day. Fund shares
begin accruing income on the day the shares are issued to an investor.
There is no redemption charge, no minimum period of investment, no minimum
amount for a redemption and no restriction on frequency of withdrawals. Proceeds
of redemptions are paid by check. Unless other instructions are given in proper
form to the Fund's transfer agent, a check for the proceeds of a redemption will
be sent to the shareholder's address of record. If a shareholder elects to
redeem all the shares of the Fund he owns, all dividends accrued to the date of
such redemption will be paid to the shareholder along with the proceeds of the
redemption.
The right of redemption may not be suspended or the date of payment upon
redemption postponed for more than seven days after the shares are tendered for
redemption, except for any period during which the New York Stock Exchange, Inc.
is closed (other than customary weekend and holiday closings) or during which
the SEC determines that trading thereon is restricted, or for any period during
which an emergency (as determined by the SEC) exists as a result of which
disposal by the Fund of its portfolio securities is not reasonably practicable
or as a result of which it is not reasonably practicable for the Fund fairly to
determine the value of its net assets, or for such other period as the SEC may
by order permit for the protection of the shareholders of the Fund.
Redemption requests received by the Fund's transfer agent before 12 noon, New
York City time, on any Fund Business Day become effective at 12 noon that day.
Shares redeemed are not entitled to participate in dividends declared on the day
a redemption becomes effective. A redemption request received after 12 noon, New
York City time, on any Fund Business Day becomes effective on the next Fund
Business Day.
The Fund has reserved the right to redeem the shares of any shareholder if the
net asset value of all the remaining shares in the shareholder's or his
Participating Organization's account after a withdrawal is less than $500.
Written notice of a proposed mandatory redemption will be given at least 30 days
in advance to any shareholder whose account is to be redeemed. During the notice
period any shareholder who receives such a notice may (without regard to the
normal $100 requirement for an additional
23
<PAGE>
investment) make a purchase of additional shares to increase the total net asset
value at least to the minimum amount and thereby avoid such mandatory
redemption.
For Participant Investor accounts, notice of a proposed mandatory redemption
will be given only to the appropriate Participating Organization, and the
Participating Organization will be responsible for notifying the Participant
Investor of the proposed mandatory redemption. During the notice period a
shareholder or Participating Organization who receives such a notice may avoid
mandatory redemption by purchasing sufficient additional shares to increase the
total net asset value to at least $500.
The redemption of shares may result in the investor's receipt of more or less
than is paid for the shares and, thus, in a taxable gain or loss to the
investor.
INITIAL PURCHASE OF
CHASE VISTA SELECT SHARES
Investors may obtain a current prospectus and the order form necessary to open
an account by telephoning the Chase Vista Service Center at 1-800-34-VISTA.
Mail. To purchase shares of the "Chase Vista Select" shares send a check made
payable to "Vista Select Shares of New Jersey Daily Municipal Income Fund, Inc."
along with a completed subscription order form to:
New Jersey Daily Municipal Income Fund, Inc.
P.O. Box 419392
Kansas City, Missouri 64141-6392
Checks are accepted subject to collection at full value in United States
currency. Payment by a check drawn on any member bank of the Federal Reserve
System can normally be converted into Federal Funds within two business days
after receipt of the check. Checks drawn on a non-member bank may take
substantially longer to convert into Federal Funds and to be invested in Fund
shares. An investor's subscription will not be accepted until the Fund receives
Federal Funds.
Bank Wire. To purchase shares of the Chase Vista Select shares using the wire
system for transmittal of money among banks, investors should first telephone
the Fund at 1-800-34-VISTA to obtain a new account number. The investor should
then instruct a member commercial bank to wire the money immediately to:
DST Systems, Inc.
ABA #1010-0362-1
CHASE VISTA FUNDS
DDA #751-1-629
For New Jersey Daily Municipal Income Fund, Inc.
Account of
Fund Account #
SS#/Tax ID#
The investor should then promptly complete and mail the subscription order form.
Investors planning to wire funds should instruct their bank early in the day so
the wire transfer can be accomplished before 12 noon, New York City time, on
that same day. There may be a charge by the investor's bank for transmitting the
money by bank wire, and there also may be a charge for use of Federal
24
<PAGE>
Funds. The Fund does not charge investors in the Fund for its receipt of wire
transfers. Payment in the form of a "bank wire" received prior to 12 noon, New
York City time, on a Fund Business Day will be treated as a Federal Funds
payment received on that day.
SUBSEQUENT PURCHASES
OF SHARES
Subsequent purchases can be made either by bank wire or by mailing a check to:
Chase Vista Funds
P.O. Box 419392
Kansas City, Missouri 64141-6392
There is a $100 minimum for each subsequent purchase. All payments should
clearly indicate the shareholder's account number. Provided that the information
on the subscription order form on file with the Fund is still applicable, a
shareholder may re-open an account without filing a new subscription order form
at any time during the year the shareholder's account is closed or during the
following calendar year.
REDEMPTION OF SHARES
A redemption is effected immediately following, and at a price determined in
accordance with, the next determination of net asset value per share for each
Class following receipt by the Fund's transfer agent of the redemption order
(and any supporting documentation which it may require). Normally, payment for
redeemed shares is made on the same Fund Business Day after the redemption is
effected, provided the redemption request is received prior to 12 noon, New York
City time and on the next Fund Business Day if the redemption request is
received after 12 noon, New York City time. However, redemption payments will
not be effected unless the check (including a certified or cashier's check) used
for investment has been cleared for payment by the investor's bank, currently
considered by the Fund to occur 15 days after investment.
A shareholder's original subscription order form permits the shareholder to
redeem by written request and to elect one or more of the additional redemption
procedures described below. A shareholder may only change the instructions
indicated on his original subscription order form by transmitting a written
direction to the Fund's transfer agent. Requests to institute or change any of
the additional redemption procedures will require a signature guarantee. When a
signature guarantee is called for, the shareholder should have "Signature
Guaranteed" stamped under his signature and guaranteed by an eligible guarantor
institution which includes a domestic bank, a domestic savings and loan
institution, a domestic credit union, a member bank of the Federal Reserve
System or a member firm of a national securities exchange, pursuant to the
Fund's transfer agent's standards and procedures (signature guarantees by
notaries public are not acceptable).
Written Requests. Shareholders may make a redemption in any amount by sending
a written request to the Fund addressed to:
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Chase Vista Funds
P.O. Box 419392
Kansas City, Missouri 64141-6392
Normally the redemption proceeds are paid by check mailed to the shareholder of
record.
Checks. By making the appropriate election on their subscription form,
shareholders may request a supply of checks which may be used to effect
redemptions. The checks, which will be issued in the shareholder's name, are
drawn on a special account maintained by the Fund with the Fund's agent bank.
Checks may be drawn in any amount of $500 or more. When a check is presented to
the Fund's agent bank for payment, it instructs the Fund's transfer agent to
redeem a sufficient number of full and fractional shares in the shareholder's
account to cover the amount of the check. The use of a check to make a
withdrawal enables a shareholder in the Fund to receive dividends on the shares
to be redeemed up to the Fund Business Day on which the check clears. Checks
provided by the Fund may not be certified. Fund shares purchased by check may
not be redeemed by check until the check has cleared, which could take up to 15
days following the date of purchase.
There is no charge to the shareholder for checks provided by the Fund. The Fund
reserves the right to impose a charge or impose a different minimum check amount
in the future, if the Board of Directors determines that doing so is in the best
interests of the Fund and its shareholders.
Shareholders electing the checking option are subject to the procedures, rules
and regulations of the Fund's agent bank governing checking accounts. Checks
drawn on a jointly owned account may, at the shareholder's election, require
only one signature. The Fund's agent bank will not honor checks which are in
amounts exceeding the value of the shareholder's account at the time the check
is presented for payment. Since the dollar value of the account changes daily,
the total value of the account may not be determined in advance and the account
may not be entirely redeemed by check. In addition, the Fund reserves the right
to charge the shareholder's account a fee up to $20 for checks not honored as a
result of an insufficient account value, a check deemed not negotiable because
it has been held longer than six months, an unsigned check and a post-dated
check. The Fund reserves the right to terminate or modify the check redemption
procedure at any time or impose additional fees following notification to the
Fund's shareholders.
26
<PAGE>
Investors wishing to avail themselves of this method of redemption should elect
it on their subscription order form. Individuals and joint tenants are not
required to furnish any supporting documentation. Corporations and other
entities making this election, however, are required to furnish a certified
resolution or other evidence of authorization in accordance with the Fund's
normal practices. Appropriate authorization forms will be sent by the Fund or
its agents to corporations and other shareholders who select this option. As
soon as the authorization forms are filed in good order with the Fund's agent
bank, it will provide the shareholder with a supply of checks. This checking
service may be terminated or modified at any time or to impose additional fees
following notification to the Fund's shareholders.
Telephone. The Fund accepts telephone requests for redemption from shareholders
who elect this option. The proceeds of a telephone redemption may be sent to the
shareholders at their address or, to their bank accounts, both as set forth in
the subscription order form or in a subsequent written authorization. However,
all telephone redemption instructions in excess of $25,000 will be wired
directly to such previously designated bank account, for the protection of
shareholders. The Fund may accept telephone redemption instructions from any
person with respect to accounts of shareholders who elect this service and thus
such shareholders risk possible loss of principal and interest in the event of a
telephone redemption not authorized by them. To provide evidence of telephone
instructions, for Chase Vista Select Shares, the transfer agent will record
telephone conversations with shareholders. The Fund will employ reasonable
procedures to confirm that telephone redemption instructions are genuine, and
will require that shareholders electing such option provide a form of personal
identification. The failure by the Fund to employ such reasonable procedures may
cause the Fund to be liable for the losses incurred by investors due to
telephone redemptions based upon unauthorized or fraudulent instructions.
A shareholder making a telephone withdrawal should call the Fund at
1-800-34-VISTA and state (i) the name of the shareholder appearing on the Fund's
records, (ii) the shareholder's account number with the Fund, (iii) the amount
to be withdrawn, (iv) whether such amount is to be forwarded to the
shareholder's designated bank account or address, and (v) the name of the person
requesting the redemption. Usually the proceeds are sent to the designated bank
account or address on the same Fund Business Day the redemption is effected,
provided the redemption request is received before 12 noon, New York City time
and on the next Fund Business Day if the redemption request is received after 12
noon, New York City time and on the next Fund Business Day of the redemption
request is received after 12 noon, New York City time. The Fund reserves the
right to terminate or modify the telephone redemption service in whole or in
part at any time and will notify shareholders accordingly.
EXCHANGE PRIVILEGE
Shareholders of the Chase Vista Select shares may exchange at relative net asset
value for Vista Shares of the Chase Vista U.S. Government Money Market Fund, the
Chase Vista 100% U.S. Treasury Securities Money Market Fund, the Chase Vista
Treasury Plus Money Market Fund, the Chase Vista Federal Money Market Fund, the
Chase Vista Prime
27
<PAGE>
Money Market Fund, the Chase Vista Cash Management Fund, the Chase Vista Tax
Free Money Market Fund, the Chase Vista New York Tax Free Money Market Fund, the
Chase Vista California Tax Free Money Market Fund, and the Chase Vista Select
shares of any Reich & Tang Asset Management L.P. sponsored fund and may exchange
at relative net asset value plus any applicable sales charges, the Chase Vista
Select shares of the Fund for the shares of the non-money market Chase Vista
Funds, in accordance with the terms of the then-current prospectus of the fund
being acquired. The prospectus of the Chase Vista Fund into which shares are
being exchanged should be read carefully prior to any exchange and retained for
future reference. With respect to exchanges into a fund which charges a
front-end sales charge, such sales charge will not be applicable if the
shareholder previously acquired his Chase Vista Select shares by exchange from
such fund. Under the exchange privilege, Chase Vista Select shares may be
exchanged for shares of other funds only if those funds are registered in the
states where the exchange may legally be made. In addition, the account
registration for the Chase Vista Funds into which Chase Vista Select shares are
being exchanged must be identical to that of the account registration for the
Fund from which shares are being redeemed. Any such exchange may create a gain
or loss to be recognized for Federal income tax purposes. Normally, shares of
the fund to be acquired are purchased on the redemption date, but such purchase
may be delayed by either Fund up to five business days if the Fund determined
that it would be disadvantaged by an immediate transfer of the proceeds. (This
privilege may be amended or terminated at any time following 60 days' written
notice.) Arrangements have been made for the acceptance of instructions by
telephone to exchange shares if certain preauthorizations or indemnifications
are accepted and on file. Further information is available from the Transfer
Agent.
SPECIFIED AMOUNT AUTOMATIC WITHDRAWAL PLAN
Shareholders who own $10,000 or more shares of the Fund may elect to withdraw
shares and receive payment from the Fund of a specified amount of $100 or more
automatically on a monthly or quarterly basis in an amount approved and
confirmed by the Manager. In order to make a payment, a number of shares equal
in aggregate net asset value to the payment amount are redeemed at their net
asset value so that the designated payment is received on approximately the
first or fifteenth day of the month following the end of the selected payment
period. To the extent that the redemptions to make plan payments exceed the
number of shares purchased through reinvestment of dividends and distributions,
the redemptions reduce the number of shares purchased on original investment,
and may ultimately liquidate a shareholder's investment.
The election to receive automatic withdrawal payments may be made
28
<PAGE>
at the time of the original subscription by so indicating on the subscription
order form. The election may also be made, changed or terminated at any later
time by the participant. Because the withdrawal plan involves the redemption of
Fund shares, such withdrawals may constitute taxable events to the shareholder,
but the Fund does not expect that there will be any realizable capital gains.
INVESTMENTS THROUGH
PARTICIPATING ORGANIZATIONS
Participant Investors may, if they wish, invest in the Fund through the
Participating Organizations with which they have accounts. "Participating
Organizations" are securities brokers, banks and financial institutions or other
industry professionals or organizations which have entered into shareholder
servicing agreements with the Fund. When instructed by its customer to purchase
or redeem Fund shares, the Participating Organization, on behalf of the
customer, transmits to the transfer agent a purchase or redemption order, and in
the case of a purchase order, payment for the shares being purchased. No
certificates are issued with respect to investments in the Fund.
Participating Organizations may confirm to their customers who are shareholders
in the Fund each purchase and redemption of Chase Vista Select shares for the
customers' accounts. Also, Participating Organizations may send their customers
periodic account statements showing the total number of Chase Vista Select
shares owned by each customer as of the statement closing date, purchases and
redemptions of Chase Vista Select shares by each customer during the period
covered by the statement and the income earned by Chase Vista Select shares of
each customer during the statement period (including dividends paid in cash or
reinvested in additional Chase Vista Select shares).
Participating Organizations may charge Participant Investors a fee in connection
with their use of specialized purchase and redemption procedures offered to
Participant Investors by the Participating Organizations. In addition,
Participating Organizations offering purchase and redemption procedures similar
to those offered to shareholders who invest in the Fund directly may impose
charges, limitations, minimums and restrictions in addition to or different from
those applicable to shareholders who invest in the Fund directly. Accordingly,
the net yield to investors who invest through Participating Organizations may be
less than by investing in the Fund directly. A Participant Investor should read
this Prospectus in conjunction with the materials provided by the Participating
Organization describing the procedures under which Chase Vista Select shares may
be purchased and redeemed through the Participating Organization.
The Glass-Steagall Act limits the ability of a depository institution to become
an underwriter or distributor of securities. It is the Fund management's
position, however, that banks are not
29
<PAGE>
prohibited from acting in other capacities for investment companies, such as
providing administrative and shareholder account maintenance services and
receiving compensation from the Manager for providing such services. This is an
unsettled area of the law, however, and if a determination contrary to the Fund
management's position is made by a bank regulatory agency or court concerning
shareholder servicing and administration payments to banks from the Manager, any
such payments will be terminated and any shares registered in the banks' names,
for their underlying customers, will be re-registered in the name of the
customers at no cost to the Fund or its shareholders. In addition, state
securities laws may differ on this issue from the interpretations of Federal law
expressed herein and banks and financial institutions may be required to
register as underwriters, distributors or dealers pursuant to state law.
In the case of qualified Participating Organizations, orders received by the
transfer agent before 12 noon, New York City time, on a Fund Business Day,
without accompanying Federal Funds will result in the issuance of shares on that
day provided that the Federal Funds required in connection with the orders are
received by the Fund's transfer agent before 4:00 p.m., New York City time, on
that day. Orders for which Federal Funds are received after 4:00 p.m., New York
City time, will not result in share issuance until the following Fund Business
Day. Participating Organizations are responsible for instituting procedures to
insure that purchase orders by their respective clients are processed
expeditiously.
DISTRIBUTION AND
SERVICE PLAN
Pursuant to Rule 12b-1 under the 1940 Act, the SEC has required that an
investment company which bears any direct or indirect expense of distributing
its shares must do so only in accordance with a plan permitted by Rule 12b-1.
The Fund's Board of Directors has adopted a distribution and service plan (the
"Plan") and, pursuant to the Plan, the Fund and Reich & Tang Distributors, Inc.
(the "Distributor") have entered into a Distribution Agreement and a Shareholder
Servicing Agreement (with respect to Class A shares only).
Under the Shareholder Servicing Agreement, the Distributor receives with respect
only to Class A shares a service fee equal to .20% per annum of the Fund's
average daily net assets (the "Shareholder Servicing Fee") for providing
personal shareholders services and for the maintenance of shareholder accounts.
The fee is accrued daily and paid monthly and any portion of the fee may be
deemed to be used by the Distributor for payments to participating organizations
with respect to their provision of such services to their clients or customers
who are shareholders of the Class A shares of the Fund. The Class B shareholders
will not receive the benefit of such services from Participating Organizations
and, therefore, will not be assessed a Shareholder Servicing Fee.
30
<PAGE>
The Plan provides that the Manager may make payments from time to time from its
own resources, which may include the management fee and past profits for the
following purposes: (i) to defray the costs of, and to compensate others,
including Participating Organizations with whom the Distributor has entered into
written agreements, for performing shareholder servicing and related
administrative functions on behalf of the Class A shares of the Fund; (ii) to
compensate certain Participating Organizations for providing assistance in
distributing the Class A Shares of the Fund; and (iii) to pay the costs of
printing and distributing the Fund's prospectus to prospective investors, and to
defray the cost of the preparation and printing of brochures and other
promotional materials, mailings to prospective shareholders, advertising, and
other promotional activities, including the salaries and/or commissions of sales
personnel in connection with the distribution of the Fund's shares. The
Distributor may also make payments from time to time from its own resources,
which may include the Shareholding Servicing Fee and past profits, for the
purposes enumerated in (i) above. The Distributor will determine the amount of
such payments made pursuant to the Plan, provided that such payments will not
increase the amount which the Fund is required to pay to the Manager and
Distributor for any fiscal year under either the Investment Management Contract
in effect for that year or under the Shareholder Servicing Agreement in effect
for that year.
Under the Distribution Agreement, the Distributor serves as distributor of the
Fund's shares for nominal consideration and as agent for the Fund, will solicit
orders for the purchase of the Fund's shares, provided that any subscriptions
and orders will not be binding on the Fund until accepted by the Fund as
principal.
The Plan and the Shareholder Servicing Agreement provide that, in addition to
the Shareholder Servicing Fee, the Fund will pay for (i) telecommunications
expenses, including the cost of dedicated lines and CRT terminals, incurred by
the Manager and Distributor in carrying out their obligations under the
Shareholder Servicing Agreement with respect to Class A shares, and (ii)
preparing, printing and delivering the Fund's prospectus to existing
shareholders of the Fund and preparing and printing subscription application
forms for shareholder accounts.
For the fiscal year ended October 31, 1997, the total amount spent pursuant to
the Plan for Class A shares was .43% of the average daily net assets of the
Fund, of which .20% of the average daily net assets was paid by the Fund to the
Distributor, pursuant to the Shareholder Servicing Agreement and an amount
representing .23% was paid by the Manager (which may be deemed an indirect
payment by the Fund). Of the total amount paid by the Manager, $789,345 was
utilized for Broker assistance payments, $11,728 for compensation to sales
personnel, $3,054 for travel and expenses, $21,109 for Prospectus printing,
31
<PAGE>
and $819 on miscellaneous expenses.
FEDERAL INCOME TAXES
The Fund has elected to qualify under the Code as a regulated investment company
that distributes "exempt-interest dividends" as defined in the Code. The Fund's
policy is to distribute as dividends each year 100% (and in no event less than
90%) of its tax-exempt interest income, net of certain deductions, and its
investment company taxable income (if any). If distributions are made in this
manner, dividends derived from the interest earned on Municipal Obligations are
"exempt-interest dividends" and are not subject to regular Federal income tax,
although as described below, such "exempt-interest dividends" may be subject to
Federal alternative minimum tax. Dividends paid from taxable income, if any, and
distributions of any realized short-term capital gains (whether from tax-exempt
or taxable obligations) are taxable to shareholders as ordinary income for
Federal income tax purposes, whether received in cash or reinvested in
additional shares of the Fund. Although it is not intended, it is possible that
the Fund may realize short-term or long-term capital gains or losses. The Fund
informs shareholders of the amount and nature of its income and gains in a
written notice mailed to shareholders not later than 60 days after the close of
the Fund's taxable year. For Social Security recipients, interest on tax-exempt
bonds, including "exempt interest dividends" paid by the Fund, is to be added to
adjusted gross income for purposes of computing the amount of Social Security
benefits includible in gross income. Interest on certain "private activity
bonds" (generally, a bond issue in which more than 10% of the proceeds are used
for a non-governmental trade or business and which meets the private security or
payment test, or bond issue which meets the private loan financing test) issued
after August 7, 1986 will constitute an item of tax preference subject to the
individual alternative minimum tax. Corporations will be required to include in
alternative minimum taxable income, 75% of the amount by which their adjusted
current earnings (including generally, tax-exempt interest) exceeds their
alternative minimum taxable income (determined without this item). In addition,
in certain cases Subchapter S corporations with accumulated earnings and profits
from Subchapter C years will be subject to a tax on "passive investment income",
including tax-exempt interest. Although the Fund intends to maintain a $1.00 per
share net asset value, a Shareholder may realize a taxable gain or loss upon the
disposition of shares.
With respect to variable rate demand instruments, including Participation
Certificates therein, the Fund is relying on the opinion of Battle Fowler LLP,
counsel to the Fund, that it will be treated for Federal income tax purposes as
the owner of the underlying Municipal Obligation and that the interest thereon
will be tax-exempt to the Fund to the same extent as the interest on the
underlying Municipal Obligations. Counsel has pointed out that the Internal
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<PAGE>
Revenue Service has announced that it will not ordinarily issue advance rulings
on the question of the ownership of securities or participation interests
therein subject to a put and could reach a conclusion different from that
reached by counsel.
In South Carolina v. Baker, the U.S. Supreme Court held that the Federal
government may constitutionally require states to register bonds they issue and
may subject the interest on such bonds to Federal tax if not registered, and the
Court further held that there is no constitutional prohibition against the
Federal Government's taxing the interest earned on state or other municipal
bonds. The Supreme Court decision affirms the authority of the Federal
government to regulate and control bonds such as the Municipal Obligations and
to tax such bonds in the future. The decision does not, however, affect the
current exemption from regular income tax of the interest earned on the
Municipal Obligations.
NEW JERSEY INCOME TAXES
The designation of all or a portion of a dividend paid by the Fund as an
"exempt-interest dividend" under the Code does not necessarily result in the
exemption of such amount from tax under the laws of any state or local taxing
authority.
The Fund intends to be a "qualified investment fund" within the meaning of the
New Jersey gross income tax. The primary criteria for constituting a "qualified
investment fund" are that (1) such fund is an investment company registered with
the SEC which, for the calendar year in which the distribution is paid, has no
investments other than interest bearing obligations, obligations issued at a
discount, cash and cash items, including receivables and financial options,
futures, forward contracts, or other similar financial instruments relating to
interest-bearing obligations, obligations issued at a discount or bond indexes
related thereto and (2) at the close of each quarter of the taxable year, such
fund has not less than 80% of the aggregate principal amount of all of its
investments, excluding financial options, futures, forward contracts, or other
similar financial instruments relating to interest-bearing obligations,
obligations issued at a discount or bond indexes related thereto to the extent
such instruments are authorized under the regulated investment company rules
under the Code, cash and cash items, which cash items shall include receivables,
in New Jersey Municipal Obligations, Territorial Municipal Obligations and
certain other specified securities. Additionally, a qualified investment fund
must comply with certain continuing reporting requirements. In the opinion of
Sills Cummis Zuckerman Radin Tischman Epstein & Gross, P.A., special New Jersey
tax counsel to the Fund, assuming that the Fund constitutes a qualified
investment fund and that the Fund complies with the reporting obligations under
New Jersey law with respect to qualified investment funds, (a) distributions
paid by the Fund to a New Jersey resident individual shareholder will not be
subject to
33
<PAGE>
the New Jersey gross income tax to the extent that the distributions are
attributable to income received as interest on or gain from New Jersey Municipal
Obligations or Territorial Municipal Obligations, and (b) gain from the sale of
shares in the Fund by a New Jersey resident individual shareholder will not be
subject to the New Jersey gross income tax.
Shareholders are urged to consult with their tax advisors the treatment of
distributions from the Fund and ownership of shares of the Fund in their own
states and localities.
GENERAL INFORMATION
The Fund was incorporated under the laws of the State of Maryland on July 24,
1990 and it is registered with the SEC as an open-end management investment
company.
The Fund prepares semi-annual unaudited and annual audited reports which include
a list of investment securities held by the Fund and which are sent to
shareholders.
As a general matter, the Fund will not hold annual or other meetings of the
Fund's shareholders. This is because the By-Laws of the Fund provide for annual
meetings only (a) for the election of directors, (b) for approval of revised
investment advisory contracts with respect to a particular class or series of
stock, (c) for approval of revisions to the Fund's distribution agreement with
respect to a particular class or series of stock, and (d) upon the written
request of holders or shares entitled to cast not less than 25% of all the votes
entitled to be cast at such meeting. Annual and other meetings may be required
with respect to such additional matters relating to the Fund as may be required
by the 1940 Act including the removal of Fund director(s) and communication
among shareholders, any registration of the Fund with the SEC or any state, or
as the Directors may consider necessary or desirable. Each Director serves until
the next meeting of the shareholders called for the purpose of considering the
election or reelection of such Director or of a successor to such Director, and
until the election and qualification of his or her successor, elected at such a
meeting, or until such Director sooner dies, resigns, retires or is removed by
the vote of the shareholders.
For further information with respect to the Fund and the shares offered hereby,
reference is made to the Fund's registration statement filed with the SEC,
including the exhibits thereto. The Registration Statement and the exhibits
thereto may be examined at the Commission and copies thereof may be obtained
upon payment of certain duplicating fees.
NET ASSET VALUE
- ----------------------
The net asset value of each Class the Fund's shares is determined as of 12 noon,
New York City time, on each Fund Business Day. The net asset value of a Class is
computed by dividing the value of the Fund's net assets for such Class (i.e.,
the value of its securities and other assets less its liabilities, including
expenses payable or accrued but excluding capital stock
34
<PAGE>
and surplus) by the total number of shares outstanding for such Class.
The Fund's portfolio securities are valued at their amortized cost in compliance
with the provisions of Rule 2a-7 under the 1940 Act. Amortized cost valuation
involves valuing an instrument at its cost and thereafter assuming a constant
amortization to maturity of any discount or premium, except that if fluctuating
interest rates cause the market value of the Fund's portfolio to deviate more
than 1/2 of 1% from the value determined on the basis of amortized cost, the
Board of Directors will consider whether any action should be initiated.
Although the amortized cost method provides certainty in valuation, it may
result in periods during which the value of an instrument is higher or lower
than the price an investment company would receive if the instrument were sold.
The Fund intends to maintain a stable net asset value at $1.00 per share
although there can be no assurance that this will be achieved.
CUSTODIAN TRANSFER AGENT
AND DIVIDEND AGENT
Investors Fiduciary Trust Company, 801 Pennsylvania Street, Kansas City,
Missouri 64105 is custodian for the Fund's cash and securities. DST Systems,
Inc., 127 West 10th Street, Kansas City, Missouri 64105, is the transfer agent
and dividend agent for the Chase Vista Select shares of the Fund. The Fund's
custodian and transfer agents do not assist in, and are not responsible for,
investment decisions involving assets of the Fund.
35
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<PAGE>
CHASE VISTA FUNDS
Vista Service Center
P.O. Box 419392
Kaansas City, Missouri 64141-6392
NEW ACCOUNT APPLICATION (FOR INITIAL INVESTMENT ONLY.)
CHASE VISTA MONEY MARKET FUNDS (VISTA SHARES)
1. Account Registration
For Individual: Use line 1
Note: To establish an account beneficiary, check TOD box below and designate
beneficiaries in the space provided, or include on a separate page:
TOD
For Joint Account: Use lines 1 & 2
In the case of joint registration, this account will be registered joint tenants
with rights of survivorship and not tenants in common, unless otherwise stated
by the investor.
For a Minor: Use line 3
For Trust, Corporation, Partnership or other legal entity: Use line 4
The Registered owner is a:
Corporation Trust
Partnership Non-Profit or Charitable Org.
Other
Please Print name clearly and exactly as account is to be registered
1. [ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ] [ ] [ ] [ ][ ] [ ] [ ][ ]
First Name M.I. Last Name
[ ] [ ] [ ]-[ ] [ ]-[ ] [ ] [ ][ ]
Social Security Number
2. [ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ]
First Name M.I. Last Name
[ ] [ ] [ ]-[ ] [ ]-[ ] [ ] [ ][ ]
Social Security Number
3. [ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ] [ ] [ ] [ ][ ] [ ] [ ][ ]
Custodian First Name M.I. Last Name
Custodian for
[ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ] [ ] [ ] [ ][ ] [ ] [ ][ ]
Minor's First Name M.I. Last Name
[ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ]
Minor's Social Security Number
Under the [ ] [ ] [ ][ ] [ ] [ ] [ ][ ] Uniform Gifts/Transfers to Minors Act.
Name of State
4. [ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ]
Name of Entity (If a Trust, include date of agreement and type)
[ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ]
Authorized Individual
[ ] [ ]-[ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ] [ ][ ] [ ] [ ][ ] [ ]
Tax I.D. Number Title
2. Mailing Address
[ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ]
Street Apt. No.
[ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ] [ ] [ ]
City State Zip
[ ] [ ] [ ] [ ] [ ] [ ]-[ ] [ ] [ ][ ] [ ] [ ] [ ] [ ] [ ] [ ]-[ ] [ ] [ ][ ]
Daytime Phone Number Evening Phone Number Country
3. Initial Investment $2,500 minimum initial investment per fund/account or $250
initial investment with a $200 systematic monthly purchase
A. Please indicate the name of the Fund you wish to invest in and make your
check payable to the Fund(s).
Chase Vista Fund Name (Fund Number) Amount
U.S. Government Money Market Fund (220) $________________
100% Treasury Money Market Fund (677) $________________
Treasury Plus Money Market Fund (678) $________________
Federal Money Market Fund (353) $________________
Cash Management Fund (223) $________________
Tax Free Money Market Fund (2) $________________
California Tax Free Money Market Fund (99) $________________
New York Tax Free Money Market Fund (3) $________________
Select Shares of Connecticut Daily
Tax Free Income Fund (140) $________________
Select Shares of New Jersey Daily
Municipal Income Fund (141) $________________
B. Please have your representative fill in this information if he/she opened
your account. This will avoid a duplicate order.
Trade Date _________ Confirm Number __________ Account Number ________________
<PAGE>
4. For Dealer Use Only
When opening your account through a representative, have him/her complete this
section
We guarantee the signature and legal capacity of the applicant.
________________________________________________________________________________
Dealer/Company Name Dealer Number Branch and Region Number (if applicable)
________________________________________________________________________________
Address
________________________________________________________________________________
Representative Name Rep. # Daytime Phone Number
Authorized Signature ____________________________________________
5. Distributions
Please indicate how you would like to receive distributions (check only one)
1. [ ] Dividends reinvested in additional shares
2. [ ] Dividends automatically deposited to your checking account (Please
complete Section 7)
3. [ ] Dividends mailed to your address in Section 2
6. Telephone Privileges
You will be able to execute telephone transactions by calling 1-800-34-VISTA
(800-348-4782) 24 hours a day for automated service, 9 am - 6 pm EST to speak
with a service representative
Telephone privileges will be provided to you automatically unless you elect not
to by checking the box associated with each privilege.
[] Telephone Purchases ($100 minimum)-Your purchase will be deducted from the
account you designate by completing Section 7.
[] Telephone Exchanges-Permits exchanges into established Chase Vista Funds
($100 minimum) or to new Chase Vista Funds ($2,500 minimum).
[] Telephone Redemptions-Permits redemptions by telephone with proceeds
deposited in the bank account you designate in Section 7 or mailed to your
address (maximum check amount $25,000).
7. Bank Account Designation
This section must be completed to permit certain options chosen in Sections 5,
6, 8 and 9
Account name must match the name in Section 1. A blank/voided check is required
for account and bank routing information.
_______________________________________________________________________________
Name of Bank Branch
_______________________________________________________________________________
Bank Address City State Zip
___________________________ [ ] [ ][ ] [ ] [ ][ ] [ ] [ ][ ] [ ] [ ]
Type of Account (Checking/Savings) Account Number
[ ] Please check this Box to confirm voided check is attached.
8. Systematic Investment Plan
Amounts (minimum $100) will be automatically drawn on your bank account and
invested in your Chase Vista Fund account
Authorization Form
Invest automatically the amount of $_______________ on or about the _________
day. Purchases will be made monthly unless you wish to elect quarterly by
checking this box n. If the day you selected for your automatic purchase falls
on a holiday or a weekend, the purchase could be delayed. Funds will be drawn
from (check one):
1. [ ] my/our bank account indicated in Section 7.
2. [ ] my/our Chase Vista money market account and invested in another Chase
Vista Fund, subject to applicable sales charges.
Fund Name: ______________________________________ Class of Shares: [] A [] B
Your first automatic monthly investment will occur no sooner than two weeks
after the receipt of your application.
9. Systematic Redemption Plan
This is a convenient way to receive payments from your fund account. This Plan
is subject to minimum account balances, minimum monthly or quarterly
redemptions, and any applicable sales charges dependent upon the class of shares
you own.
Please make payments of $_______________ prior to the first day of every: n
month or n quarter beginning with the month of __________________________. Your
Application must be received in good order at least two weeks prior to first
actual redemption date.
Check One: [ ] Redemption proceeds automatically deposited to the account you
designate in Section 7, or
[ ] Mail check payable to:
________________________________________________________________________________
Individual or Company Name
________________________________________________________________________________
Street Address City State Zip
<PAGE>
10. Checkwriting Authorization & Signature (For A Shares Only)
[ ] Check here if you would like checkwriting privileges. ($500 minimum per
check.) Only one signature will be required on joint accounts.
CHECKWRITING DRAFTS WILL BE ISSUED 15 DAYS AFTER ACCOUNT IS FUNDED BY CHECK, 7
DAYS IF FUNDED BY AUTOMATED CLEARING HOUSE PURCHASE.
11. Acknowledgment, Certification & Signatures
This section must be signed in order to open a Chasse Vista account
UNDER THE PENALTIES OF PERJURY, THE UNDERSIGNED CERTIFIES THAT (1) HE/SHE IS A
CITIZEN OR RESIDENT OF N THE UNITED STATES OR N (STATE COUNTRY) __________, (2)
THE SOCIAL SECURITY NUMBER OR TAXPAYER IDENTIFICATION NUMBER SHOWN IN SECTION 1
IS CORRECT, AND (3) HE/SHE IS NOT SUBJECT TO BACKUP WITHHOLDING EITHER BECAUSE
HE/SHE HAS NOT BEEN NOTIFIED THAT HE/SHE IS SUBJECT TO BACKUP WITHHOLDING AS A
RESULT OF A FAILURE TO REPORT ALL INTEREST AND DIVIDENDS, OR THE INTERNAL
REVENUE SERVICE HAS NOTIFIED HIM/HER THAT HE/SHE IS NO LONGER SUBJECT TO BACKUP
WITHHOLDING. (IF THE UNDERSIGNED IS SUBJECT TO BACKUP WITHHOLDING, CROSS OUT THE
WORDS AFTER (3) ABOVE.)
By signing this Application, the undersigned (1) appoints his/her broker-dealer
or shareholder servicing agent, and/or authorized sub-agent, as his/her agent
for all transactions on his/her behalf with any Chase Vista Fund; (2) certifies
that he/she has received, reviewed and accepts this Application (including the
services described herein) and the current prospectus(es) of the Chase Vista
Fund(s) in which he/she is investing and accepts the related statement(s) of
additional information; and (3) agrees that all statements in this Application
apply to shares of any Chase Vista Fund or Chase Vista Select Shares of other
funds into which his/her shares are transferred.
Subject to the terms and conditions herein and in the applicable Fund's
prospectus and statement of additional information, the undersigned releases and
agrees to hold harmless the Chase Vista Funds and its agents and/or sub-agents
against any claim, liability, loss, damage, and expense for any act or failure
to act in connection with Fund shares, any related investment account,
privileges or services, and oral and written instructions relating thereto.
Shareholders should be aware that Chase and its affiliates may exchange among
themselves certain information about the shareholder and his account.
THE UNDERSIGNED CERTIFIES THAT HE/SHE (1) WAS NOT OFFERED ANY ADVICE OR
RECOMMENDATION ON INVESTING IN ANY FUND BY ANY COMMERCIAL BANK; AND (2)
UNDERSTANDS THAT (I) NO INVESTMENT ACCOUNT ESTABLISHED WITH RESPECT TO THE CHASE
VISTA FUNDS IS A DEPOSIT ACCOUNT AND NEITHER SUCH ACCOUNT NOR FUND SHARES ARE
FDIC INSURED OR INSURED BY THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY; (II)
FUND SHARES ARE NOT OBLIGATIONS OF, ENDORSED BY, NOR GUARANTEED BY, CHASE OR ANY
COMMERCIAL BANK; AND (III) THE UNDERSIGNED MUST MAKE HIS/HER OWN INVESTMENT
DECISIONS AND ASSUME ALL RISK OF LOSS - INCLUDING POSSIBLE LOSS OF PRINCIPAL -
RESULTING FROM DECISIONS TO PURCHASE, EXCHANGE OR SELL SHARES OF ANY FUND(S).
Check One: [] U.S. Citizen [] Resident Alien
[] Non-Resident Alien; Country of Tax Residency
The Internal Revenue Service does not require your consent to any provision of
this document other than the certifications required to avoid backup
withholding.
Individual or Custodial Accounts
____________________________________________
Signature of Individual or Custodian Date
____________________________________________
Signature of Joint Tenant (if any) Date
Corporations, Partnerships, Trusts, etc.
____________________________________________
Signature of Corporate Officer, General Partner, Trustee, etc. Date
____________________________________________
Signature of Corporate Officer, General Partner, Trustee, etc. Date
PLEASE COMPLETE THE FOLLOWING SECTIONS IF YOU ARE AN INSTITUTIONAL INVESTOR ONLY
12. PERSON(S) AUTHORIZED TO CONDUCT TRANSACTIONS
The following persons ("Authorized Person(s)") are currently officers, trustees,
general partners, or other authorized agents of the Shareholder. Any _____* of
the Authorized Person(s) is, by lawful and appropriate action of the
Shareholder, a person entitled to give instructions regarding purchases and
redemptions or to make inquiries, regarding your Account.
____________________________________________
Name/Title Signature Date
____________________________________________
Name/Title Signature Date
____________________________________________
Name/Title Signature Date
____________________________________________
Name/Title Signature Date
DST Systems, Inc. ("DST") may, without inquiry, act upon the instructions
(whether verbal, written, or provided by wire, telecommunication, or any other
process) of any person claiming to be an Authorized Person. Neither DST nor any
entity on behalf of which DST is acting shall be liable for any claims or
expenses (including legal fees) or for any losses, resulting from actions taken
upon any instructions believed to be genuine. DST may continue to rely on the
instructions made by any person claiming to be an Authorized Person until it is
informed through an amended Application that the person is no longer an
Authorized Person and it has a reasonable period (not to exceed one week) to
process the amended Application. Provisions of this Application shall be equally
applicable to any successor of DST.
*If this space is left blank, any one Authorized Person is authorized to give
instructions and make inquiries. Verbal instructions will be accepted from any
one Authorized Person. Written instructions will require signatures of the
number of Authorized Persons indicated in this space.
<PAGE>
13. Certificate of Authority Institutional investors must complete one of the
following two Certificates of Authority.
A. FOR CORPORATIONS AND UNINCORPORATED ASSOCIATIONS (With a Board of Directors
or Board of Trustees).
I, ____________________________________, Secretary of the above-named
Shareholder, do hereby certify that a meeting on _______________, at which a
quorum was present throughout, the Board of Directors (Board of Trustees) of the
shareholder duly adopted a resolution which is in full force and effect and in
accordance with the Shareholder's charter and by-laws, which resolution did the
following: (1) empowered the officer/trustee executing this Application to do
so, on behalf of the Shareholder; (2) empowered the above-named Authorized
Person(s) to effect securities transactions for the Shareholder on the terms
described above; (3) authorized the Secretary to certify, from time to time, the
names and titles of the officers of the Shareholder and to notify DST when
changes in officers occur; and (4) authorized the Secretary to certify that such
a resolution has been duly adopted and will remain in full force and effect
until DST receives a duly enacted amendment to the Certification form.
Witness my hand and seal on behalf of the Shareholder this ____ day of
___________________, 19___ Secretary_________________________________________
The undersigned officer (other than the Secretary) hereby certifies that the
foregoing instrument has been signed by the Secretary of the Shareholder.
_______________________________________________________
Certifying Officer of the Corporation or Unincorporated Association
B. PARTNERSHIPS AND TRUSTS (Even if you are the sole trustee)
The undersigned certify that they are all the general partners/trustees of the
Shareholder and that they have done the following under the authority of the
Shareholder's partnership agreement/trust instrument: (1) empowered the general
partner/trustee executing this Application to do so on behalf of the
shareholder; (2) empowered the above-named Authorized Person(s) to effect
securities transactions for the Shareholder on the terms described above; and
(3) authorized the Secretary to certify, from time to time, the names of the
general partners/trustees of the shareholder and to notify DST when changes in
general partners/trustees occur. This authorization will remain in full force
and effect until DST receives a further duly executed certification. If there
are not enough spaces here for all the necessary signatures, complete a separate
certificate containing the language of Certificate B and attach it to the
Application.
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
VMMV - 8
<PAGE>
[GRAPHIC OMITTED]
P.O. Box 419392
Kansas City, Missouri 64141-6392
VSNJ-1-398
<PAGE>
