<PAGE> 1
VISTA
FAMILY OF MUTUAL FUNDS
MANAGED BY CHASE MANHATTAN
- ---------------------------------------------------------------
- - VISTA TAX FREE INCOME FUND
(Class A and Class B Shares)
- - VISTA NEW YORK TAX FREE INCOME FUND
(Class A and Class B Shares)
- - VISTA CALIFORNIA INTERMEDIATE TAX FREE FUND
(Class A Shares)
- ---------------------------------------------------------------
- --------------------------------------------------------------------------------
ANNUAL REPORT
AUGUST 31, 1996
<PAGE> 2
CONTENTS
Chairman's Letter 1
Fund Commentaries 2
Portfolio of Investments 8
Notes to Financial Statements 21
Per Share Data 27
<PAGE> 3
Vista is in the process of redesigning your Shareholder Reports to include even
more information about your fund, its current investment strategy and how it is
performing.
Watch for the completed redesign when you receive your next Semiannual Report.
October 28, 1996
Dear Shareholder:
We are pleased to present this annual report for Vista Tax-Free Income Fund,
Vista New York Tax Free Income Fund and Vista California Intermediate Tax Free
Income Fund for the year ended August 31, 1996. Inside, you'll find information
on the performance of each fund over the past year along with a market overview
and portfolio commentary.
SOLID TOTAL RETURNS DESPITE SHARPLY HIGHER INTEREST RATES
Despite a difficult year in the bond markets, each of the Vista tax free funds
provided its shareholders with a positive total return. In our semi-annual
report to you, we noted that stronger-than-expected economic growth was
beginning to upset bond market psychology in early 1996. This trend continued
over the following six months, leading to significant levels of volatility.
A YEAR OF PROTECTING OUR SHAREHOLDERS
In a rising-rate environment, our Fund management teams did an effective job of
protecting the value of your investment. This was achieved in several ways:
first, through an emphasis on current yield, which helped to cushion the effect
of higher interest rates. In addition, the management teams used extensive
resources to identify undervalued credits in harder-to-analyze sectors such as
hospitals, utilities and housing. Finally, the Funds active portfolio management
relied on relative value analysis to protect investment value.
IMPROVING STATE FINANCES ARE A POSITIVE SIGN
While the interest rate outlook remains uncertain, the improvement in state
finances is a very positive signal moving forward. California state general
obligation bonds received a credit upgrade from Standard & Poor's in July, 1996
and New York State's finances appear to be in much better shape following the
passage of its budget for the year.
The goal of Vista's tax free management team is to add value in any economic
environment, and we look forward to serving your investment needs for many years
to come. If you have any questions, please call your investment representative
or 1-800-34-VISTA. Thank you for the confidence you have placed in us.
Sincerely,
/s/ FERGUS REID
Fergus Reid
Chairman
INVESTMENTS IN THE FUNDS ARE NOT DEPOSITS OF, OR GUARANTEED OR ENDORSED BY, THE
CHASE MANHATTAN BANK, AND THE SHARES ARE NOT INSURED BY THE FDIC, FEDERAL
RESERVE BOARD OR ANY OTHER GOVERNMENT AGENCY. INVESTMENTS IN MUTUAL FUNDS
INVOLVE RISK, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED.
<PAGE> 4
Vista Tax Free Income Fund
Vista Tax Free Income Fund, which seeks to provide tax-exempt income through a
portfolio of higher-quality municipal bonds of varying maturities, finished the
year ended August 31, 1996 with a total return of 4.88% (Class A, without sales
charge). This performance was achieved despite a tremendously-challenging
environment in the bond markets.
INTEREST RATES FALL SHARPLY IN 1995
During the last four months of 1995, interest rates fell quite dramatically on
the long end. The year was capped on December 19(th) when the Federal Reserve
Board eased the Federal Funds rate by 25 basis points. Despite this favorable
environment, the Fund's management team maintained a shorter-than-average
maturity relative to its peers in an effort to reduce volatility.
The Fund's management team took March's rising rates as an opportunity to effect
tax swaps that created carry-forward losses, which served to offset capital
gains later in the year. The team also reduced exposure to insured bonds whose
prices were high relative to other groups, investing the proceeds in S&P
AAA-rated general obligation bonds.
SUPPLY TIGHT AS STATE FINANCES IMPROVE
With a limited supply of new bonds and significant retail demand, municipal
bonds ended the reporting period trading at high levels compared to treasuries.
In July, 1996, the Fund took advantage of New York's stronger outlook and new
supply to increase its allocation to the state. By the end of August, the Fund
had lengthened its average maturity, due in some measure to improving state
finances throughout the country and the management team's effort to find strong
relative values in the longer-term paper of low-cost electric utilities
providers.
Moving forward, the management team is looking to take a neutral position on the
markets, working to increase the yield as a hedge against volatility in the
market and managing election year risk. State general obligation bonds and
higher-yielding long term electric utilities bonds are favored in this
environment, especially given concerns about the effect of welfare reform on
county governments.
2
<PAGE> 5
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS A SHARES SALES CHARGE SALES CHARGE
------------ ------------
<S> <C> <C>
One Year.................... 4.88% 0.16%
Five Years.................. 7.64% 7.11%
Since Inception (9/8/87).... 8.92% 8.36%
</TABLE>
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS B SHARES CDSC CDSC*
------------ ------------
<S> <C> <C>
One Year.................... 4.10% -0.89%
Since Inception (11/4/93)... 2.58% 1.62%
</TABLE>
* Assumes a 5% CDSC for the one year period and a 3% CDSC for the period since
inception.
GROWTH OF $10,000
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
VISTA TAX FREE INCOME FUND AND THE LEHMAN MUNI BOND INDEX
<TABLE>
<CAPTION>
MEASUREMENT PERIOD LEHMAN
(FISCAL YEAR COVERED) TAX FREE INCOME - A MUNIBOND INDEX
<S> <C> <C>
09/07/87 9550.00 10000.00
09/30/87 9550.00 10000.00
10/31/87 9626.40 10036.00
11/30/87 9807.85 10297.94
12/31/87 9917.67 10447.26
01/31/88 10302.12 10819.18
02/29/88 10388.13 10933.87
03/31/88 10106.60 10805.94
04/30/88 10139.17 10888.06
05/31/88 10150.08 10856.49
06/30/88 10318.58 11014.99
07/31/88 10365.76 11086.59
08/31/88 10429.40 11095.46
09/30/88 10671.57 11296.29
10/31/88 10957.31 11495.10
11/30/88 10830.52 11390.50
12/31/88 10952.93 11506.68
01/31/89 11124.99 11744.87
02/28/89 11020.50 11610.98
03/31/89 11034.30 11583.11
04/30/89 11279.98 11858.79
05/31/89 11524.92 12104.27
06/30/89 11701.14 12268.88
07/31/89 11832.72 12435.74
08/31/89 11639.16 12313.87
09/30/89 11573.15 12276.93
10/31/89 11776.73 12427.94
11/30/89 11991.56 12645.42
12/31/89 12055.38 12749.12
01/31/90 11907.10 12689.20
02/28/90 12056.22 12802.13
03/31/90 12056.22 12805.97
04/30/90 11838.59 12713.77
05/31/90 12197.68 12990.93
06/30/90 12322.34 13105.25
07/31/90 12558.95 13297.89
08/31/90 12226.71 13105.08
09/30/90 12298.98 13112.94
10/31/90 12503.97 13351.59
11/30/90 12863.62 13619.96
12/31/90 12926.31 13678.53
01/31/91 13083.95 13861.82
02/28/91 13179.06 13982.42
03/31/91 13187.64 13986.61
04/30/91 13397.16 14174.03
05/31/91 13555.80 14300.18
06/30/91 13467.34 14285.88
07/31/91 13705.36 14460.17
08/31/91 13922.03 14651.04
09/30/91 14090.51 14841.51
10/31/91 14252.31 14975.08
11/30/91 14336.90 15017.01
12/31/91 14741.74 15339.88
01/31/92 14768.04 15375.16
02/29/92 14794.48 15379.77
03/31/92 14769.23 15385.92
04/30/92 14932.29 15522.86
05/31/92 15198.41 15706.03
06/30/92 15591.54 15969.89
07/31/92 16329.02 16448.98
08/31/92 16023.19 16289.43
09/30/92 16148.03 16395.31
10/31/92 15961.86 16234.64
11/30/92 16398.32 16525.24
12/31/92 16633.58 16693.79
01/31/93 16859.17 16887.44
02/28/93 17722.93 17498.77
03/31/93 17547.14 17313.28
04/30/93 17771.55 17488.14
05/31/93 17896.62 17586.08
06/30/93 18207.80 17879.77
07/31/93 18212.20 17903.01
08/31/93 18720.55 18275.39
09/30/93 18932.17 18483.73
10/31/93 18950.01 18518.85
11/30/93 18739.62 18355.88
12/31/93 19132.09 18743.19
01/31/94 19374.09 18956.87
02/28/94 18686.52 18465.88
03/31/94 17882.60 17714.32
04/30/94 17936.51 17864.89
05/31/94 18054.03 18020.32
06/30/94 18002.80 17910.39
07/31/94 18325.45 18238.15
08/31/94 18383.35 18301.99
09/30/94 18037.68 18032.95
10/31/94 17580.03 17711.96
11/30/94 17261.40 17391.38
12/31/94 17670.65 17773.99
01/31/95 18235.15 18282.32
02/28/95 18749.27 18814.34
03/31/95 18968.71 19030.70
04/30/95 18950.89 19053.54
05/31/95 19564.15 19661.35
06/30/95 19216.31 19490.29
07/31/95 19375.35 19675.45
08/31/95 19584.41 19925.33
09/30/95 19695.14 20050.86
10/31/95 20020.35 20341.60
11/30/95 20415.10 20679.27
12/31/95 20632.46 20877.79
01/31/96 20766.76 21036.46
02/29/96 20599.95 20893.41
03/31/96 20261.79 20625.98
04/30/96 20175.95 20568.22
05/31/96 20159.25 20560.00
06/30/96 20377.64 20784.10
07/31/96 20529.19 20971.16
08/31/96 20540.42 20966.96
</TABLE>
Past performance is not predictive of future performance. Investment return and
principal will fluctuate with market conditions. When shares are redeemed, they
may be worth more or less than their original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
shares of the Vista Tax Free Income Fund and the Lehman Municipal Bond Index
from September 30, 1987 to August 31, 1996. The Fund's performance includes a
4.50% sales charge and assumes the reinvestment of all dividends and capital
gains. The Index's performance does not include a sales charge and has been
adjusted to reflect reinvestment of all dividends and capital gains on
securities included in the benchmark.
The Lehman Municipal Bond Index is a total return performance benchmark for the
long-term, investment grade tax-exempt bond market. Bonds included in the Lehman
Municipal Bond Index are representative of the market.
3
<PAGE> 6
Vista New York Tax Free Income Fund
Vista New York Tax Free Income Fund, which seeks to provide tax-exempt income
through a portfolio of high-quality, longer-term municipal bonds, was a solid
performer during the one-year period ended August 31, 1996, providing
shareholders with a total return of 4.20% (Class A, without sales charge).
REPORTING YEAR KICKS OFF WELL, BUT VOLATILITY BEGINS AT END OF 1995
In December 1995, the Federal Reserve Board cut interest rates, sparking
volatility that continued in January as a result of a second rate cut and
uncertainty over the Federal budget. By March, unexpected signs of economic
growth put an end to hopes for any interest-rate driven resurgence in the
markets while the absence of a signed New York State budget agreement put
pressure on state finances, particularly among the state agencies that rely on
partial funding from Albany.
In the second quarter of 1996, anticipating the negative impact of New York City
budget problems, the Fund reduced its City positions, but as the quarter ended
it bid on a large issue of City bonds maturing in 2009-2010, a spot on the yield
curve the management team believed offered the greatest appreciation potential.
Throughout 1996, duration was slowly extended.
SIGNING OF STATE BUDGET LEADS TO NEW SUPPLY
With the state budget finally signed in July, a significant amount of new supply
entered the market from state agencies. The management team took advantage of
the better prices brought on by new supply to further extend the average
maturity of the Fund. With a relatively-flat yield curve, the Fund ended the
reporting period focused on issues maturing in the 15-18 year range. Since the
management team believes that welfare reform may create significant new demands
on city and county governments, it has taken a cautious approach to their debt
and is waiting for more information from municipalities regarding their
long-term plan to address the situation.
4
<PAGE> 7
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS A SHARES SALES CHARGE SALES CHARGE
------------ ------------
<S> <C> <C>
One Year.................... 4.20% -0.49%
Five Years.................. 7.48% 6.50%
Since Inception (9/8/87).... 8.36% 7.80%
</TABLE>
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS B SHARES CDSC CDSC*
------------ ------------
<S> <C> <C>
One Year.................... 3.46% -1.51%
Since Inception (11/4/93)... 2.92% 1.96%
</TABLE>
* Assumes a 5% CDSC for the one year period and a 3% CDSC for the period since
inception.
GROWTH OF $10,000
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
VISTA NY TAX FREE INCOME FUND AND THE LIPPER NY MUNI AVG
<TABLE>
<CAPTION>
MEASUREMENT PERIOD NEW YORK TAX LIPPER NY
(FISCAL YEAR COVERED) FREE INCOME - A MUNI AVERAGE
<S> <C> <C>
09/07/87 9550.00 10000.00
09/30/87 9550.00 10000.00
10/31/87 9626.40 10045.00
11/30/87 9846.05 10323.25
12/31/87 9947.28 10540.03
01/31/88 10253.57 10956.37
02/29/88 10442.22 11060.45
03/31/88 10170.37 10823.76
04/30/88 10190.08 10874.63
05/31/88 10201.96 10881.15
06/30/88 10357.07 11051.99
07/31/88 10409.11 11120.51
08/31/88 10448.37 11159.43
09/30/88 10649.03 11371.46
10/31/88 10900.97 11625.05
11/30/88 10738.79 11485.54
12/31/88 10889.55 11660.13
01/31/89 11049.44 11830.36
02/28/89 10956.93 11725.07
03/31/89 10949.52 11707.49
04/30/89 11279.39 12006.03
05/31/89 11555.49 12234.14
06/30/89 11720.26 12394.41
07/31/89 11841.58 12525.79
08/31/89 11703.23 12401.78
09/30/89 11627.62 12344.73
10/31/89 11738.93 12450.90
11/30/89 11959.32 12641.40
12/31/89 12047.28 12740.00
01/31/90 11896.97 12604.96
02/28/90 11984.93 12712.10
03/31/90 11957.72 12680.32
04/30/90 11736.58 12520.55
05/31/90 12066.67 12844.83
06/30/90 12219.95 12996.40
07/31/90 12448.13 13240.73
08/31/90 12219.90 12965.32
09/30/90 12249.16 12914.76
10/31/90 12391.54 13045.20
11/30/90 12675.31 13343.93
12/31/90 12747.78 13385.30
01/31/91 12928.01 13570.02
02/28/91 12989.17 13643.29
03/31/91 12966.28 13697.87
04/30/91 13197.52 13922.51
05/31/91 13320.37 14028.32
06/30/91 13261.71 14017.10
07/31/91 13450.82 14252.59
08/31/91 13676.64 14464.95
09/30/91 13912.23 14690.60
10/31/91 14086.76 14831.63
11/30/91 14123.10 14849.43
12/31/91 14427.99 15158.30
01/31/92 14328.85 15065.84
02/29/92 14369.49 15124.59
03/31/92 14374.75 15174.50
04/30/92 14525.65 15339.91
05/31/92 14782.38 15576.14
06/30/92 15200.72 15900.12
07/31/92 15853.33 16493.20
08/31/92 15533.57 16237.55
09/30/92 15578.30 16286.27
10/31/92 15293.69 16014.29
11/30/92 15708.18 16406.64
12/31/92 15907.45 16613.36
01/31/93 16146.14 16816.04
02/28/93 16880.82 17487.00
03/31/93 16715.13 17306.89
04/30/93 16915.71 17500.72
05/31/93 17020.00 17624.98
06/30/93 17328.29 17924.60
07/31/93 17370.02 17922.81
08/31/93 17770.31 18315.32
09/30/93 17926.98 18516.79
10/31/93 17941.55 18551.97
11/30/93 17761.69 18344.19
12/31/93 18102.25 18725.75
01/31/94 18308.91 18926.11
02/28/94 17775.85 18449.17
03/31/94 17112.87 17630.03
04/30/94 17210.57 17642.37
05/31/94 17356.16 17813.50
06/30/94 17233.07 17690.59
07/31/94 17526.72 17996.64
08/31/94 17616.76 18063.23
09/30/94 17334.58 17712.80
10/31/94 17002.61 17331.97
11/30/94 16592.10 16865.74
12/31/94 16999.79 17317.75
01/31/95 17422.00 17792.25
02/28/95 17882.66 18354.49
03/31/95 18069.97 18506.83
04/30/95 18097.30 18523.49
05/31/95 18623.59 19119.94
06/30/95 18456.64 18865.65
07/31/95 18564.06 18984.50
08/31/95 18817.36 19199.02
09/30/95 18891.18 19296.94
10/31/95 19199.17 19611.48
11/30/95 19506.76 19988.02
12/31/95 19651.19 20195.90
01/31/96 19796.20 20290.82
02/29/96 19600.77 20120.37
03/31/96 19397.50 19788.39
04/30/96 19374.22 19705.28
05/31/96 19379.98 19703.31
06/30/96 19580.58 19912.16
07/31/96 19716.47 20101.33
08/31/96 19604.94 20053.08
</TABLE>
Past performance is not predictive of future performance. Investment return and
principal will fluctuate with market conditions. When shares are redeemed, they
may be worth more or less than their original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
shares of the Vista New York Tax Free Income Fund and the Lipper New York
Municipal Average from September 30, 1987 to August 31, 1996. The Fund's
performance includes a 4.50% sales charge and assumes the reinvestment of all
dividends and capital gains. The average's performance does not include a sales
charge and has been adjusted to reflect reinvestment of all dividends and
capital gains on securities included in the benchmark.
The Lipper New York Municipal Average is a total return performance benchmark
for the long-term, investment grade tax-exempt bond market. Bonds included in
the Lipper New York Municipal Average are representative of the market.
5
<PAGE> 8
Vista California Intermediate Tax Free Income Fund
A strengthening state economy and strong investor interest provided a positive
backdrop for California municipal bonds, helping the Fund achieve a 5.0% total
return for the year ended August 31, 1996 (Class A, without sales charge). Vista
California Intermediate Tax Free Income Fund seeks to provide tax-exempt income
through a portfolio of high-quality, intermediate-term municipal bonds.
LOW SUPPLY AND INCREASED INVESTOR DEMAND
The Fund began the reporting year maintaining a lower-than-average duration as a
hedge against volatility despite a slightly-steepened yield curve. With
expectations of rate cuts starting in December, 1995, the management team
avoided general obligation bonds due to concerns over potential federal
government cutbacks.
Along with higher rates brought on by unexpected economic growth, the supply and
demand picture dominated the markets through most of 1996. The Fund began the
second quarter of 1996 with a relatively-short duration, but as valuations at
the long end of the curve became more attractive, the management team took the
opportunity to sell short positions of three years or less and go into
carefully-selected long-term bonds in the high-quality rating categories.
CREDIT UPGRADE CONFIRMS IMPROVING STATE ECONOMY
On July 1, 1996, Standard and Poor's upgraded its rating on California general
obligation bonds, signaling significant economic recovery in the state. The
brighter prospects gave the management team confidence to extend along the yield
curve, with specific interest in non-callable bonds in the 15-18 year range.
Moving forward, the Fund will continue to focus on managing a variety of market
uncertainties, including those brought on by welfare reform. The overriding goal
is to seek areas of value, using the management team's extensive resources to
find credits in more difficult to analyze sectors such as hospitals, utilities
and housing. Specific emphasis is being placed on low-cost providers of electric
power.
6
<PAGE> 9
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
WITHOUT WITH
CLASS A SHARES SALES CHARGE SALES CHARGE
------------ ------------
<S> <C> <C>
One Year.................... 5.00% 0.27%
Since Inception (7/16/93)... 4.48% 2.95%
</TABLE>
GROWTH OF $10,000
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
VISTA CA INT. TAX FREE INCOME FUND AND THE LIPPER CA INT. AVERAGE
<TABLE>
<CAPTION>
CALIFORNIA
MEASUREMENT PERIOD INTERMEDIATE LIPPER CA
(FISCAL YEAR COVERED) TAX FREE INT. AVERAGE
<S> <C> <C>
07/15/93 9550.00 10000.00
07/31/93 9485.52 10000.00
08/31/93 9645.02 10181.00
09/30/93 9750.52 10299.10
10/31/93 9780.78 10314.55
11/30/93 9706.71 10242.35
12/31/93 9810.64 10413.39
01/31/94 9936.54 10516.49
02/28/94 9742.09 10287.23
03/31/94 9457.05 10005.36
04/30/94 9475.67 10050.38
05/31/94 9554.39 10114.70
06/30/94 9535.62 10081.32
07/31/94 9655.68 10223.47
08/31/94 9697.53 10253.12
09/30/94 9619.47 10156.74
10/31/94 9490.81 10023.69
11/30/94 9391.86 9872.33
12/31/94 9494.30 9975.99
01/31/95 9700.08 10175.51
02/28/95 9937.47 10396.32
03/31/95 10032.01 10497.16
04/30/95 10045.43 10507.66
05/31/95 10306.67 10764.05
06/30/95 10204.65 10687.62
07/31/95 10300.84 10794.50
08/31/95 10429.99 10911.08
09/30/95 10482.72 10972.18
10/31/95 10620.37 11090.68
11/30/95 10790.47 11219.33
12/31/95 10855.57 11283.28
01/31/96 10943.15 11383.70
02/29/96 10888.89 11346.14
03/31/96 10768.99 11215.66
04/30/96 10755.96 11206.68
05/31/96 10754.25 11203.32
06/30/96 10852.42 11279.50
07/31/96 10930.26 11379.89
08/31/96 10951.11 11379.89
</TABLE>
Past performance is not predictive of future performance. Investment return and
principal will fluctuate with market conditions. When shares are redeemed, they
may be worth more or less than their original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
shares of the Vista California Intermediate Tax Free Income Fund and the Lipper
California Intermediate Average from July 31, 1993 to August 31, 1996. The
Fund's performance includes a 4.50% sales charge and assumes the reinvestment of
all dividends and capital gains. The average's performance does not include a
sales charge and has been adjusted to reflect reinvestment of all dividends and
capital gains on securities included in the benchmark.
The Lipper California Intermediate Average is a total return performance
benchmark for the long-term, investment grade tax-exempt bond market. Bonds
included in the Lipper California Intermediate Average are representative of the
market.
7
<PAGE> 10
VISTA TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1996
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS -- 92.8%
- -----------------------------------------------------------------------------------------
<C> <S> <C>
ALASKA -- 2.4%
-----------------------------------------------------------
$ 150,000 Alaska, North Slope, GO, 8.350%, 06/30/98 $ 159,563
2,000,000 Anchorage, Alaska, Electric Utilities, Ser. B, Rev., 1,850,000
5.500%, 02/01/26
------------
2,009,563
------------
ARKANSAS -- 1.7%
-----------------------------------------------------------
Arkansas State, College Savings, Capital Appreciation,
Ser. A --
1,530,000 GO, 06/01/14 535,500
3,050,000 GO, 06/01/16 937,875
------------
1,473,375
------------
CALIFORNIA -- 24.1%
-----------------------------------------------------------
California --
150,000 Board of Regents, UCLA, Educational Facilities 165,750
Authority, Rev., 7.000%, 09/01/15
150,000 Educational Facilities Authority, Pepperdine Univ., 167,250
Rev., 7.200%, 11/01/15
Kern, California High School District, Ser. A,
1,500,000 GO, 6.100%, 02/01/06 1,605,000
1,720,000 GO, 6.100%, 02/01/07 1,836,100
1,960,000 GO, 6.200%, 02/01/08 2,102,100
2,200,000 GO, 6.200%, 02/01/09 2,348,500
150,000 Orange County, Water District, COP, 5.750%, 08/15/14 143,063
3,500,000 Pasadena, California, Electric, Rev., 5.375%, 08/01/12 3,333,750
2,800,000 South Orange County, Public Financing Authority, Senior 2,866,500
Lien, Ser. A, Special Tax, 6.200%, 09/01/13
6,000,000 Southern California, Public Water Authority Power 5,842,500
Project, San Juan Unit 3, Ser. A, Rev., 5.375%,
01/01/11
------------
20,410,513
------------
COLORADO -- 6.8%
-----------------------------------------------------------
5,500,000 Denver Colorado, City & County Airport, Ser. B, Rev., 5,740,625
7.500%, 11/15/25 ------------
GEORGIA -- 7.2%
-----------------------------------------------------------
1,500,000 Fayette County, School District, GO, 6.125%, 03/01/15 1,556,250
50,000 Fulton County, Water & Sewer, Rev., 8.250%, 01/01/14 53,562
2,000,000 Georgia State, GO, 4.000%, 07/01/12 1,670,000
2,700,000 Municipal Electric Authority of Georgia, Project One, 2,811,375
Sub-Ser. A, Rev., 6.250%, 01/01/14
------------
6,091,187
------------
</TABLE>
See notes to financial statements.
8
<PAGE> 11
VISTA TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1996 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS -- (CONTINUED)
- -----------------------------------------------------------------------------------------
<C> <S> <C>
ILLINOIS -- 6.8%
-----------------------------------------------------------
Chicago, Illinois, O'Hare International Airport --
$ 150,000 Ser. A, Rev., 7.500%, 01/01/03 $ 161,438
5,000,000 Special Facilities, United Air Lines, Ser. A, Rev., 5,425,000
8.400%, 05/01/18
100,000 Chicago, Illinois, Public Building Commission, Ser. A, 109,125
(FGIC Insured), Rev., 7.750%, 01/01/06
65,000 Illinois, Housing Development Authority, Ser. A, (FHA 67,275
Insured), Rev., 8.000%, 06/01/26
------------
5,762,838
------------
MARYLAND -- 0.2%
-----------------------------------------------------------
140,000 Maryland State, Community Development Administration, 146,300
Housing & Community Development, Single Family Program, ------------
2nd Series, Rev., 7.600%, 04/01/23
MASSACHUSETTS -- 2.0%
-----------------------------------------------------------
Massachusetts State --
130,000 Housing Finance Authority, Rev., 7.750%, 12/01/20 135,687
470,000 Water Authority, Ser. A, Rev., 6.500%, 07/15/19 505,250
1,000,000 New England Education Loan Marketing Corp., 1,061,250
Massachusetts, Student Loan, Sub-Issue H, Rev., 6.900%,
11/01/09
------------
1,702,187
------------
MICHIGAN -- 4.4%
-----------------------------------------------------------
Michigan State, Housing Development Authority, Rental
Housing --
2,000,000 Ser. A, Rev., 7.550%, 04/01/23 2,102,500
1,000,000 Ser. B, Rev., 7.550%, 04/01/23 1,047,500
500,000 Wayne County, Building Authority, Ser. A, GO, 8.000%, 581,250
03/01/17
------------
3,731,250
------------
MISSOURI -- 0.9%
-----------------------------------------------------------
720,000 Sikeston Missouri Electric, Rev., 6.000%, 06/01/16 745,200
------------
MONTANA -- 5.3%
-----------------------------------------------------------
Montana State, Long Range Building Program, Ser. D,
855,000 GO, 5.250%, 08/01/10 833,625
1,800,000 GO, 5.375%, 08/01/11 1,766,250
1,900,000 GO, 5.375%, 08/01/12 1,864,375
------------
4,464,250
------------
</TABLE>
See notes to financial statements.
9
<PAGE> 12
VISTA TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1996 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS -- (CONTINUED)
- -----------------------------------------------------------------------------------------
<C> <S> <C>
NEVADA -- 0.2%
-----------------------------------------------------------
$ 165,000 Nevada, Housing Division, Single Family (FHA Insured), $ 168,094
Rev., 8.200%, 10/01/19 ------------
NEW JERSEY -- 2.5%
-----------------------------------------------------------
2,000,000 Essex County, New Jersey, Utilities Authority, Solid 2,080,000
Waste, Ser. A, Rev., 6.000%, 04/01/06 ------------
NEW YORK -- 18.7%
-----------------------------------------------------------
New York City, New York, Ser. A,
3,000,000 GO, 6.250%, 08/01/08 2,988,750
2,450,000 GO, 6.250%, 08/01/09 2,431,625
New York State, Dormitory Authority --
2,500,000 University Systems Consolidations, Ser. A, Rev., 2,356,250
5.625%, 07/01/16
500,000 Mt. St. Vincent College, Rev., 7.000%, 05/01/08 509,375
New York State --
2,700,000 Environmental Facilities Corp., Pollution Control, 2,953,125
State Water, Revolving Fund, Ser. E, Rev., 6.875%,
06/15/14
5,000,000 Medical Care Facilities Financing Agency, Mental 4,575,000
Health, Ser. F, Rev., 5.250%, 02/15/19
------------
15,814,125
------------
OHIO -- 5.2%
-----------------------------------------------------------
4,000,000 Cleveland, Ohio, Public Power System First Mortgage -- 4,445,000
Ser. A, Rev., 7.000%, 11/15/24 ------------
PENNSYLVANIA -- 2.0%
-----------------------------------------------------------
1,500,000 Monroeville, Pennsylvania, Hospital Authority, Forbes 1,483,125
Health Systems, Rev., 5.750%, 10/01/05
230,000 New Castle, Pennsylvania, Area Hospital Authority 232,300
Refunding, St. Francis Hospital, Ser. A, Rev., 6.500%,
11/15/17
------------
1,715,425
------------
PUERTO RICO -- 0.4%
-----------------------------------------------------------
Puerto Rico --
250,000 Infrastructure Funding Authority, Ser. A, Special Tax, 267,812
7.900%, 07/01/07
75,000 Urban Renewal & Housing, Rev., 7.875%, 10/01/04 82,313
------------
350,125
------------
</TABLE>
See notes to financial statements.
10
<PAGE> 13
VISTA TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1996 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS -- (CONTINUED)
- -----------------------------------------------------------------------------------------
<C> <S> <C>
SOUTH CAROLINA -- 0.6%
-----------------------------------------------------------
South Carolina, Housing Finance & Development
Authority --
$ 250,000 Fairway Apts. Project, Rev., 7.625%, 04/01/33 $ 261,875
250,000 Ser. B (FHA Insured), Rev., 7.800%, 07/01/09 258,125
------------
520,000
------------
SOUTH DAKOTA -- 0.1%
-----------------------------------------------------------
100,000 South Dakota, Housing Development Authority, Ser. A, 100,000
Rev., 5.875%, 05/01/12 ------------
UTAH -- 0.3%
-----------------------------------------------------------
250,000 Utah State Board of Regents, Student Loan, Ser. F, (AMBAC 265,312
Insured), Rev., 7.450%, 11/01/08 ------------
VIRGIN ISLANDS -- 0.6%
-----------------------------------------------------------
500,000 Virgin Islands, GO, 7.000%, 10/01/02 539,375
------------
VIRGINIA -- 0.1%
-----------------------------------------------------------
100,000 Fairfax County, Economic, Ogden Martin Sys. Project, Ser. 107,750
A, Rev., 7.750%, 02/01/11 ------------
WASHINGTON -- 0.3%
-----------------------------------------------------------
250,000 Washington State, Public Power Supply, Nuclear Project, 281,250
Ser. B, Rev., 7.250%, 07/01/09
- -----------------------------------------------------------------------------------------
TOTAL LONG-TERM MUNICIPAL BONDS 78,663,744
(COST $77,749,468)
- -----------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 6.2%
- -----------------------------------------------------------------------------------------
FLOATING RATE DEMAND NOTES -- 1.5%
-----------------------------------------------------------
California -- 0.8%
700,000 California, PCFA, Resource Recovery, Burney Forest 700,000
Products Project, Ser. A, Rev., 3.700%, 09/03/96 ------------
Georgia -- 0.7%
600,000 Burke County, Georgia, Development Authority PCR, Georgia 600,000
Power Corp., Plant Vogtle-5Th, Rev., 3.700%, 09/03/96 ------------
TOTAL FLOATING RATE DEMAND NOTES (COST $1,300,000) 1,300,000
------------
</TABLE>
See notes to financial statements.
11
<PAGE> 14
VISTA TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS August 31, 1996 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- (CONTINUED)
- -----------------------------------------------------------------------------------------
<C> <S> <C>
MONEY MARKET MUTUAL FUNDS -- 4.7%
-----------------------------------------------------------
$ 4,001,000 Provident Municipal Money Market Fund $ 4,001,000
- -----------------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS -- 5,301,000
(COST $5,301,000)
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 99.0% $ 83,964,744
(COST $83,050,468)
- -----------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
12
<PAGE> 15
VISTA NEW YORK TAX FREE INCOME
PORTFOLIO OF INVESTMENTS August 31, 1996
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS -- 95.5%
- -----------------------------------------------------------------------------------------
<C> <S> <C>
$2,000,000 34th Street Partnership, Inc., Capital Improvement, $ 1,810,000
34th Street Business Improvement, Special Tax,
5.500%, 01/01/23
1,000,000 Local Government Assistance Corp., TAN, 7.250%, 04/01/07 1,103,750
550,000 Monroe County, New York, IDA, Public Improvement, Canal 594,687
Ponds Park, Ser. A, Rev., 7.000%, 06/15/13
1,000,000 Municipal Assistance Corp., City of New York, TAN, 7.750%, 1,046,040
07/01/06
New York City, New York --
1,000,000 GO, 3.000%, 08/01/01 923,900
1,000,000 GO, 7.500%, 02/01/03 1,092,500
1,000,000 GO, 8.250%, 11/15/02 1,140,000
New York City, New York, City Municipal Water Financing
Authority Water & Sewer Systems --
765,000 Prerefunded, Ser. A, Rev., 7.000%, 06/15/09 845,325
2,600,000 Ser. A, Rev., 6.000%, 06/15/25 2,544,750
735,000 Unrefunded Balance, Ser. A, Rev., 7.000%, 06/15/09 798,394
New York City, New York, IDA --
250,000 American Airlines, Rev., 8.000%, 07/01/20 265,938
1,430,000 Civil Facility Rev., New York Blood Center, Inc., Rev., 1,615,900
7.200%, 05/01/12
New York City, New York --
4,365,000 Power Authority, Rev., 5.125%, 01/01/11 4,190,400
4,000,000 Ser. A, GO, 6.250%, 08/01/08 3,985,000
2,000,000 Ser. B, GO, 6.000%, 08/15/26 1,860,000
New York State, Dormitory Authority --
6,875,000 City University Systems, Ser. C, Rev., 7.500%, 07/01/10 7,777,344
2,000,000 City University, Ser. F, Rev., 5.000%, 07/01/20 1,745,000
4,000,000 Court Facilities Lease, Ser. A, Rev., 5.250%, 05/15/21 3,440,000
500,000 Mt. St. Vincent College, Rev., 7.000%, 05/01/08 509,375
4,000,000 New York State, Energy Research & Development Authority, 3,790,000
Gas Facilities, Brooklyn Union Gas Co. Project Ser.,
Rev., 5.500%, 01/01/21
New York State, Environmental Facilities Corp. --
775,000 Pollution Control, State Water, Revolving Fund, Ser. E, 847,656
Rev., 6.875%, 06/15/14
1,500,000 Rev., 7.250%, 06/15/10 1,670,625
New York State, Housing Finance Agency --
4,140,000 Pre-Refunded, Rev., 8.000%, 11/01/08 4,724,775
300,000 Rev., 6.950%, 08/15/12 315,375
2,460,000 Rev., 7.550%, 11/01/29 2,567,625
860,000 Unrefunded Balance,Rev., 8.000%, 11/01/08 952,450
</TABLE>
See notes to financial statements.
13
<PAGE> 16
VISTA NEW YORK TAX FREE INCOME
PORTFOLIO OF INVESTMENTS August 31, 1996 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS -- (CONTINUED)
- -----------------------------------------------------------------------------------------
<C> <S> <C>
$2,800,000 New York State, Local Assistance Corp., Ser. C, Rev., $ 2,670,500
5.500%, 04/01/17
New York State, Medical Care Facilities Financing
Agency --
2,035,000 Insured Mortgage, Rev., 7.875%, 08/15/20 2,238,500
3,000,000 Mental Health, Ser. F, Rev., 5.250%, 02/15/19 2,745,000
375,000 New York State, Medical Care Facilities Financing 403,594
Authority, Insured Mortgage, Rev., 8.000%, 02/15/28
New York State, Mortgage Agency (FHA insured),
305,000 Rev., 7.500%, 10/01/19 319,106
160,000 Rev., 8.000%, 10/01/03 166,200
750,000 Rev., 8.000%, 10/01/17 786,562
415,000 Rev., 8.050%, 04/01/16 440,938
1,000,000 New York State, Municipal Bond, Buffalo Special Project, 1,063,750
Rev., 6.875%, 03/15/06
2,500,000 New York State, Ser. C, GO, 6.000%, 10/01/03 2,653,125
New York State, Urban Development Corp. --
2,205,000 Center for Individual Innovation, Rev., 5.500%, 01/01/13 2,067,188
1,550,000 Correctional Capital Facilities, Ser. A, Rev., 6.300%, 1,613,937
01/01/03
5,000,000 Niagara, New York, Frontier Transportation Authority, 5,156,250
Greater Buffalo International Airport, Rev., 5.750%,
04/01/04
3,000,000 Port Authority of New York & New Jersey, Special 3,150,000
Obligation, 3rd Installment, Special Project, Rev.,
7.000%, 10/01/07
Puerto Rico --
5,100,000 Commonwealth Highway & Transportation Authority, Ser. W, 5,068,125
Rev., 5.500%, 07/01/13
3,250,000 Electrical Power Authority Power, Ser. Z, Rev., 5.500%, 3,120,000
07/01/11
2,000,000 Industrial Med. & Environmental Pollution Facilities 2,035,000
Financing Authority, Rev., 6.450%, 12/01/25
1,750,000 Infrastructure Funding Authority, Ser. A, Special Tax, 1,874,687
7.900%, 07/01/07
5,000,000 Rensselaer, New York, Municipal Leasing Corp., Rensselaer 5,031,250
County Nursing Home, Rev., 6.900%, 06/01/24
1,000,000 Triborough Bridge & Tunnel Authority of New York, Special 1,080,000
Obligation, Ser. A, Rev., 6.600%, 01/01/05
1,150,000 Virgin Islands, Public Finance Authority, Ser. A, Rev., 1,210,375
7.250%, 10/01/18
Westchester County, New York --
1,150,000 GO, 6.700%, 11/01/06 1,293,750
1,560,000 IDA, AGR Realty Co., Rev., 5.750%, 01/01/02 1,581,450
2,000,000 IDA, Resource Recovery, Resco Co. Project, Ser. A, Rev., 2,035,000
5.700%, 07/01/08
</TABLE>
See notes to financial statements.
14
<PAGE> 17
VISTA NEW YORK TAX FREE INCOME
PORTFOLIO OF INVESTMENTS August 31, 1996 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS -- (CONTINUED)
- -----------------------------------------------------------------------------------------
<C> <S> <C>
Western Nassau County, New York, Water Authority Water
Systems --
$1,000,000 Rev., 5.500%, 05/01/16 $ 958,750
2,000,000 Rev., 5.650%, 05/01/26 1,927,500
- -----------------------------------------------------------------------------------------
TOTAL LONG-TERM MUNICIPAL BONDS 104,847,346
(COST $103,673,947)
- -----------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 3.2%
- -----------------------------------------------------------------------------------------
FLOATING RATE DEMAND NOTES -- 1.7%
----------------------------------------------------------
800,000 Babylon, New York, IDA, Resource Recovery, Equity 800,000
Babylon Project, Rev., 3.700%, 09/03/96
1,000,000 New York City, New York, Ser. B, Sub. Ser. B-3, GO, 1,000,000
3.800%, 09/03/96 -------------
TOTAL FLOATING RATE DEMAND NOTES (COST $1,800,000) 1,800,000
-------------
MONEY MARKET MUTUAL FUNDS -- 1.5%
----------------------------------------------------------
1,658,500 Provident New York Money Market Fund 1,658,500
- -----------------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS 3,458,500
(COST $3,458,500)
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 98.7% $ 108,305,846
(COST $107,132,447)
- -----------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
15
<PAGE> 18
VISTA CALIFORNIA INTERMEDIATE TAX FREE FUND
PORTFOLIO OF INVESTMENTS August 31, 1996
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS -- 91.2%
- -----------------------------------------------------------------------------------------
<C> <S> <C>
California State --
$ 2,000,000 GO, 5.250%, 10/01/10 $ 1,922,500
1,250,000 Department of Water Resources, Central Valley Project, 1,500,000
Ser. P, Rev., 9.250%, 12/01/01
1,000,000 MBIA-IBC, GO, 6.500%, 02/01/07 1,100,000
750,000 Public Works Board, Lease Revenue, Ser. A, Rev., 6.000%, 784,687
09/01/01
Contra Costa, California --
1,000,000 Transition Authority, Ser. A, Rev., 6.000%, 03/01/08 1,056,250
1,850,000 Water District, Ser. G, Rev., 5.750%, 10/01/14 1,850,000
200,000 Irvine Ranch Water District, Issue #11, Rev., 7.600%, 210,750
08/15/99
800,000 Los Angeles, California, Unified School District, Capital 840,000
Facilities Project, Ser. A, COP, 7.000%, 05/01/99
Los Angeles County, California, Metropolitan Transportation
Authority --
1,000,000 Project A, 2nd Tier, Sales Tax Rev., Rev., 5.625%, 981,250
07/01/14
1,000,000 Proposal C, Ser. B, Rev., 8.000%, 07/01/97 1,031,290
1,500,000 Orange County, California, Municipal Water District, Water 1,483,125
Facilities Corp., COP, Allen-McColloch Pipeline,
4.800%, 07/01/03
300,000 Pasadena, California, Electric, Rev., 5.375%, 08/01/12 285,750
250,000 Port of Oakland, Ser. D, Rev., 7.000%, 11/01/99 269,063
Puerto Rico Commonwealth --
1,000,000 GO, 6.500%, 07/01/13 1,085,000
1,500,000 Highway & Transportation Authority, Ser. W, Rev., 5.500%, 1,490,625
07/01/13
Riverside County, California --
350,000 Capital Projects, Lease Financing, COP, 7.250%, 12/01/96 352,670
1,000,000 Common Sales Tax Rev., Ser. A, Rev., 6.000%, 1,056,250
06/01/08
1,000,000 San Diego, California, Open Space Park Facilities District 1,020,000
No. 1, GO, 5.125%, 01/01/00
1,000,000 San Francisco, California, City & County, Ser. E, GO, 1,055,000
6.250%, 06/15/03
500,000 Santa Cruz, California, Public Financing Authority, Ser. C, 534,375
Rev., 7.000%, 08/01/99
1,200,000 South Orange County, Public Financing Authority, Senior 1,228,500
Lien, Ser. A, Special Tax, 6.200% 09/01/13
2,000,000 Southern California, Public Water Authority Power Project, 1,947,500
San Juan Unit 3, Ser. A, Rev., 5.375%, 01/01/11
1,000,000 University of California, UC Medical Center, Rev., 10.000%, 1,348,750
07/01/06
</TABLE>
See notes to financial statements.
16
<PAGE> 19
VISTA CALIFORNIA INTERMEDIATE TAX FREE FUND
PORTFOLIO OF INVESTMENTS August 31, 1996 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS -- (CONTINUED)
- -----------------------------------------------------------------------------------------
<C> <S> <C>
Valley Health Systems, California Hospital, Improvement
Project --
$ 670,000 Ser. A, Rev., 5.125%, 05/15/98 $ 666,650
705,000 Ser. A, Rev., 5.250%, 05/15/99 697,950
- -----------------------------------------------------------------------------------------
TOTAL LONG-TERM MUNICIPAL BONDS 25,797,935
(COST $25,625,634)
- -----------------------------------------------------------------------------------------
<CAPTION>
SHORT-TERM INVESTMENTS -- 7.4%
- -----------------------------------------------------------------------------------------
<C> <S> <C>
600,000 California PCFA, Resource Recovery, Burney Forest Products 600,000
Project, Ser. A, FRN, 3.700%, 09/03/96
200,000 Los Angeles County, California, TRAN, 4.500%, 06/30/97 201,117
1,290,600 Provident California Money Market Fund 1,290,600
- -----------------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS 2,091,717
(COST $2,091,717)
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 98.6% $ 27,889,652
(COST $27,717,351)
- -----------------------------------------------------------------------------------------
COP = Certificates of Participation
FHA = Federal Housing Authority
FRN = Floating Rate Note: The maturity date shown is the next interest
reset date; the rate shown is the rate in effect at August 31, 1996.
GO = General Obligation
IDA = Industrial Development Authority
PCFA = Pollution Control Financing Authority
PCR = Pollution Control Revenue
Rev. = Revenue Bond
Special Tax = Special Tax Assessment
TAN = Tax Anticipation Note
TRAN = Tax & Revenue Anticipation Note
</TABLE>
See notes to financial statements.
17
<PAGE> 20
STATEMENT OF ASSETS AND LIABILITIES August 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Vista
New York California
Vista Tax Free Intermediate
Tax Free Income Tax Free
Income Fund Fund Fund
------------ ------------- ------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value (Note 1)................ $ 83,964,744 $ 108,305,846 $ 27,889,652
Cash.................................................... 4,642,227 2,792,381 114,120
Other assets............................................ 80,683 6,353 2,342
Receivables:
Interest.............................................. 1,123,459 1,636,083 417,350
Trust shares sold..................................... 2,949 121,734 28,360
------------ ------------- ------------
Total Assets...................................... 89,814,062 112,862,397 28,451,824
------------ ------------- ------------
LIABILITIES:
Payable for investment securities purchased............. 4,637,658 2,782,595 --
Payable for Trust shares redeemed....................... 98,163 14,484 36,408
Dividends payable....................................... 108,693 101,366 47,428
Accrued liabilities: (Note 2)
Administration fees................................... 7,423 9,406 --
Investment advisory fees.............................. 11,134 24,455 970
Distribution fees..................................... 24,800 28,915 2,425
Custody fees.......................................... 14,554 14,554 6,684
Other................................................. 102,919 127,425 60,209
------------ ------------- ------------
Total Liabilities................................. 5,005,344 3,103,200 154,124
------------ ------------- ------------
NET ASSETS:
Paid in capital......................................... 88,095,664 109,327,086 27,948,841
Accumulated over distributed net investment income...... (110,420) (100,275) (48,004)
Accumulated net realized gain (loss) on income
transactions.......................................... (4,090,802) (641,013) 224,562
Net unrealized appreciation of investments.............. 914,276 1,173,399 172,301
------------ ------------- ------------
Net Assets:........................................... $ 84,808,718 $ 109,759,197 $ 28,297,700
============ ============= ============
Class A Shares...................................... $ 70,479,662 $ 96,102,405 $ 28,297,700
Class B Shares...................................... $ 14,329,056 $ 13,656,792
Shares of beneficial interest outstanding ($.001 par
value; unlimited number of shares authorized)
Class A Shares...................................... 5,950,807 8,439,969 2,884,431
Class B Shares...................................... 1,218,922 1,205,261
Class A:
Net asset value and redemption price per share (net
assets/shares outstanding)............................ $11.84 $11.39 $9.81
Maximum offering price per share (net asset value per
share/95.5%).......................................... $12.40 $11.93 $10.27
Class B:
Net asset value and maximum offering price per share
(net assets/shares outstanding)....................... $11.76 $11.33
============ ============= ============
Cost of investments...................................... $ 83,050,468 $ 107,132,447 $ 27,717,351
============ ============= ============
</TABLE>
See notes to financial statements.
18
<PAGE> 21
STATEMENT OF OPERATIONS For the year ended August 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista
Vista California
Vista New York Intermediate
Tax Free Tax Free Tax Free
Income Fund Income Fund Fund
------------ ------------ -----------
<S> <C> <C> <C>
INTEREST INCOME: (Note 1C)................................. $ 5,464,676 $ 6,194,695 $ 1,656,786
------------ ------------ -----------
EXPENSES: (Note 2)
Shareholder servicing fees:
Class A Shares.......................................... 201,911 241,773 77,293
Class B Shares.......................................... 37,015 32,078 --
Distribution fees:
Class A Shares.......................................... 201,911 241,773 77,294
Class B Shares.......................................... 111,045 96,234 --
Investment advisory fees.................................. 286,711 328,622 92,752
Administration fees....................................... 143,355 164,311 46,376
Custodian fees............................................ 63,589 66,352 30,059
Printing and postage...................................... 19,209 20,841 4,048
Professional fees......................................... 35,864 34,578 31,791
Registration costs........................................ 59,965 10,503 20,016
Transfer agent fees....................................... 199,467 185,498 56,905
Trustees fees and expenses................................ 7,168 9,864 2,763
Other..................................................... 81,577 15,339 14,885
------------ ------------ -----------
Total expenses...................................... 1,448,787 1,447,766 454,182
Less amounts waived (Note 2E)............................. 477,445 365,301 268,669
------------ ------------ -----------
Net expenses............................................ 971,342 1,082,465 185,513
------------ ------------ -----------
Net investment income................................... 4,493,334 5,112,230 1,471,273
------------ ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investment transactions.............. 1,638,415 1,108,749 1,036,164
Net realized loss on futures.............................. (235,577) (204,301) (105,484)
Change in net unrealized appreciation/depreciation on
investments............................................. (1,070,107) (1,708,648) (861,965)
------------ ------------ -----------
Net realized and unrealized gain (loss) on investments.... 332,731 (804,200) 68,715
------------ ------------ -----------
Net increase in net assets from operations................ $ 4,826,065 $ 4,308,030 $ 1,539,988
============ ============ ===========
</TABLE>
See notes to financial statements.
19
<PAGE> 22
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista
Vista New York
Tax Free Tax Free
Income Fund Income Fund
------------------------------ ------------------------------
Year Year Year Year
Ended Ended Ended Ended
08/31/96 08/31/95 08/31/96 08/31/95
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income.................................... $ 4,493,334 $ 5,092,217 $ 5,112,230 $ 5,622,439
Net realized gain (loss) on investment transactions...... 1,402,838 (1,080,168) 904,448 (165,999)
Change in net unrealized appreciation/depreciation on
investments............................................ (1,070,107) 2,105,846 (1,708,648) 2,575,739
------------ ------------ ------------ -----------
Net increase in net assets from operations............... 4,826,065 6,117,895 4,308,030 8,032,179
------------ ------------ ------------ -----------
NET EQUALIZATION CREDITS (DEBITS) (Note 1E)............... -- (18,277) -- 17,037
------------ ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A................................................ (3,913,322) (4,499,790) (4,629,077) (5,232,229)
Class B................................................ (608,401) (577,023) (516,793) (403,226)
Net realized gain on investment transactions:
Class A................................................ -- -- -- --
------------ ------------ ------------ -----------
Total dividends and distributions.................. (4,521,723) (5,076,813) (5,145,870) (5,635,455)
------------ ------------ ------------ -----------
Net increase (decrease) from trust share transactions
(Note 4)................................................. (18,543,690) (7,680,499) (4,204,046) 2,040,208
------------ ------------ ------------ -----------
Total increase (decrease).............................. (18,239,348) (6,657,694) (5,041,886) 4,453,969
NET ASSETS:
Beginning of period...................................... 103,048,066 109,705,760 114,801,083 110,347,114
------------ ------------ ------------ -----------
End of period............................................ $ 84,808,718 $ 103,048,066 $ 109,759,197 $ 114,801,083
============ ============ ============ ===========
<CAPTION>
Vista
California
Intermediate
Tax Free Fund
----------------------------
Year Year
Ended Ended
08/31/96 08/31/95
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income.................................... $ 1,471,273 $ 1,782,183
Net realized gain (loss) on investment transactions...... 930,680 (62,516)
Change in net unrealized appreciation/depreciation on
investments............................................ (861,965) 675,943
----------- -----------
Net increase in net assets from operations............... 1,539,988 2,395,610
----------- -----------
NET EQUALIZATION CREDITS (DEBITS) (Note 1E)............... -- (9,235)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A................................................ (1,480,990) (1,773,535)
Class B................................................ -- --
Net realized gain on investment transactions:
Class A................................................ (288,579) --
----------- -----------
Total dividends and distributions.................. (1,769,569) (1,773,535)
----------- -----------
Net increase (decrease) from trust share transactions
(Note 4)................................................. (4,219,121) (4,129,959)
----------- -----------
Total increase (decrease).............................. (4,448,702) (3,517,119)
NET ASSETS:
Beginning of period...................................... 32,746,402 36,263,521
----------- -----------
End of period............................................ $ 28,297,700 $ 32,746,402
=========== ===========
</TABLE>
See notes to financial statements.
20
<PAGE> 23
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES -- Mutual Fund Trust (the
"Trust") was organized as a Massachusetts business trust, and is registered
under the Investment Company Act of 1940, as amended, as an open-end,
non-diversified management investment company. Vista Tax Free Income Fund
("TFI"), Vista New York Tax Free Income Fund ("NYTFI"), and Vista California
Intermediate Tax Free Fund ("CITF")(collectively the "Funds"), are three
separate portfolios of the Trust.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
The TFI and NYTFI Funds offer two classes of shares, referred to as Class A
Shares and Class B Shares. Class B Shares were first available on November 4,
1993. Class A shares generally provide for a front-end sales charge while Class
B shares provide for a contingent deferred sales charge. All classes of shares
have equal rights as to earnings, assets and voting privileges, except that each
class may bear different distribution expenses and each class has exclusive
voting rights with respect to its distribution plan.
The following is a summary of significant accounting policies followed by
the Funds:
A. Valuation of investments -- Fixed income securities (other than
short-term obligations), including listed issues, are valued using matrix
pricing systems of a major dealer in bonds which take into account factors
such as institutional-size trading in similar groups of securities, yield,
quality, coupon rate, maturity, type of issue, trading characteristics and
other market data, without exclusive reliance upon quoted exchange or
over-the-counter prices. Short-term debt securities with 61 days or more to
maturity at time of purchase are valued, through the 61st day prior to
maturity, at market value based on quotations obtained from market makers or
other appropriate sources; thereafter, the value on the 61st day is
amortized on a straight-line basis over the remaining number of days to
maturity. Short-term investments with 60 days or less to maturity at time of
purchase are valued at amortized cost, which approximates market.
B. Repurchase agreements -- It is the Trust's policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government agency
securities. All collateral is held by the Trust's custodian bank,
sub-custodian or a bank with which the custodian bank has entered into a
sub-custodian agreement or is segregated in the Federal Reserve Book Entry
System. In connection with transactions in repurchase agreements, if the
seller defaults and the value of the collateral declines, or if the seller
enters into an insolvency proceeding, realization of the collateral by the
Trust may be delayed or limited.
C. Security transactions and investment income -- Investment transactions
are accounted for on the trade date (the date the order to buy or sell is
executed). Securities gains and losses are calculated on the identified cost
basis. Interest income is determined on the basis of coupon interest
accrued, adjusted for amortization of premiums and accretion of discount.
D. Futures contracts -- When a Fund enters into a futures contract, it
makes an initial margin deposit in a segregated account, either in cash or
liquid securities. Thereafter, the futures contract is marked to market and
the fund makes (or receives) additional cash payments daily to the broker.
Changes in the value of the contract are recorded as unrealized
appreciation/depreciation until the contract is closed or settled.
The Funds may enter into futures contracts only on exchanges or boards of
trade. The exchange or board of trade acts as the counterparty to each
futures transaction, therefore, the Fund's credit risk is limited to failure
of the exchange or board of trade.
As of August 31, 1996, the Funds had no outstanding futures contracts.
E. Federal income taxes -- Each Fund is treated as a separate taxable
entity for Federal income tax purposes. The Trust's policy is to comply with
the provisions of the Internal Revenue Code applicable to regulated
investment companies and to distribute to shareholders all of its
distributable net investment income, and net realized gain on
21
<PAGE> 24
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
investments. In addition, the Trust intends to make distributions as
required to avoid excise taxes. Accordingly, no provision for Federal income
or excise tax is necessary.
F. Equalization -- In prior years, the Funds followed the practice of
equalization by which a portion of proceeds from sales and cost of
redemptions of Fund shares is credited or charged to undistributed net
investment income. In the current fiscal year ending August 31, 1996, the
Funds discontinued the practice of equalization, resulting in
reclassifications from undistributed net investment income of $3,881,
$18,670 and $2,367 to accumulated paid-in capital for TFI, NYFTI and CITF
respectively.
G. Distributions to shareholders -- Dividends are distributed in the form
of additional shares of the Fund or, at the election of the shareholder, in
cash (subject to the policies of the Shareholder Servicing Agent) on the
last business day of the month. The net investment income of each Fund is
determined daily and (substantially all) is declared as a dividend to
shareholders of record at the time of such declaration. The amount of
dividends and distributions from net investment income and net realized
capital gains is determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
To the extent these "book/tax" differences are permanent in nature, (i.e.,
that they will result from other than timing of recognition -- "temporary
differences") such amounts are reclassified within the capital accounts
based on their federal tax-basis treatment. Dividends and distributions
which exceed net investment income or net realized capital gains for
financial reporting purposes but not for tax purposes are reported as
distributions in excess of net investment income or net realized capital
gains.
H. Allocation of income and expenses -- Expenses directly attributable to
a Fund are charged to that Fund; expenses directly attributable to a
particular class are charged directly to such class, other expenses are
allocated proportionately among each Fund within the Trust in relation to
the net assets of each Fund or on another reasonable basis. In calculating
net asset value per share of each class investment income, realized and
unrealized gains and losses and expenses other than class specific expenses,
are allocated daily to each class of shares based upon the proportion of net
assets of each class at the beginning of each day.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A. Investment advisory fee -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank, ("Chase" or "Advisor") acts as the
investment adviser to the Funds. Chase is a direct wholly-owned subsidiary
of The Chase Manhattan Corporation. As investment adviser, Chase supervises
the investments of the Funds and for such services is paid a fee. The fee is
accrued daily and paid monthly at an annual rate equal to 0.30% of each
Fund's average daily net assets. The Adviser voluntarily waived all or a
portion of its fees as outlined in Note 2.E. below.
Chase Asset Management, Inc. ("CAM"), a registered investment adviser, is
the sub-investment adviser to each Fund, pursuant to a Sub-Investment
Advisory Agreement between CAM and Chase. CAM is a wholly owned subsidiary
of Chase and is entitled to receive a fee, payable by Chase from its
advisory fee, at an annual rate equal to 0.03% of each Fund's average daily
net assets.
B. Shareholder servicing fees -- The Trust has adopted an Administrative
Services Plan which, among other things, provides that the Trust on behalf
of the Funds may obtain the services of one or more Shareholder Servicing
Agents. For its services, each Shareholder Servicing Agent will receive fees
determined by a formula based upon the number of accounts serviced and the
number of transactions processed by such Shareholder Servicing Agent during
the period for which payment is being made, and any out-of-pocket expenses
incurred, provided that such fees will not exceed, on an annualized basis,
0.25% of the average daily net assets of each Fund.
Since inception of the Trust, Chase and certain affiliates have been the
only Shareholder Servicing Agents. In 1996, certain Class A Shareholders of
TFI entered into a Shareholder Servicing arrangement with Charles Schwab &
Co.. Chase's Shareholder Servicing charges amounted to $201,444 for TFI. The
Shareholder Servicing Agents voluntarily waived all or a portion of their
fees as outlined in Note 2.E. below.
22
<PAGE> 25
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
C. Distribution and Sub-administration fees -- Pursuant to a Distribution
and Sub-administration Agreement, Vista Fund Distributors, Inc. ("VFD" or
the "Distributor"), a wholly-owned subsidiary of the BISYS Group Inc.
(BISYS), acts as the Trust's exclusive underwriter and promotes and arranges
for the sale of each Fund's shares. In addition, the Distributor provides
certain sub-administration services to the Trust, including providing
officers, clerical staff and office space for an annual fee of 0.05% of the
average daily net assets of each Fund.
The Trustees have adopted Distribution Plans (the "Distribution Plans") for
Class A for all Funds and Class B for TFI and NYTFI in accordance with Rule
12b-1 under the 1940 Act.
The Distribution Plans provide that each Fund shall pay distribution fees at
annual rates not to exceed 0.25% of each Fund's average daily net assets for
Class A shares and 0.75% for Class B shares.
The Distributor voluntarily waived all or a portion of distribution fees as
outlined in Note 2.E. below.
D. Administration fee -- Pursuant to an Administration Agreement, Chase
(the "Administrator") provides certain administration services to the Trust
at a fee computed at an annual rate equal to 0.10% of the respective Fund's
average daily net assets. The Administrator voluntarily waived all or a
portion of its administration fees as outlined in Note 2.E. below.
E. Waivers of fees -- For the period ended August 31, 1996, the Adviser,
Shareholder Servicing Agents, Distributor and Administrator voluntarily
waived fees for each of the Funds as follows:
<TABLE>
<CAPTION>
TFI NYTFI CITF
--------- --------- ---------
<S> <C> <C> <C>
Administration............................. $ 52,872 $ 17,606 $ 30,917
Advisory................................... 222,662 105,922 90,355
Distribution............................... 28,105 32,880 70,104
Shareholder Servicing...................... 173,806 208,893 77,293
--------- --------- ---------
$ 477,445 $ 365,301 $ 268,669
========= ========= =========
</TABLE>
F. Other -- Certain officers of the Trust are officers of VFD or of its
parent corporation, BISYS.
Chase provides portfolio accounting and custody services for the Funds.
Compensation for such services are presented in the Statement of Operations
as custodian fees.
3. INVESTMENT TRANSACTIONS -- Purchases and sales of investments (excluding
short-term investments) were as follows:
<TABLE>
<CAPTION>
TFI NYTFI CITF
------------- ------------- ------------
<S> <C> <C> <C>
Purchases............................... $ 195,590,319 $ 165,192,603 $ 53,831,508
Sales................................... 218,854,750 170,977,012 52,403,232
</TABLE>
23
<PAGE> 26
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
4. FEDERAL INCOME TAX MATTERS -- For Federal income tax purposes, the cost and
unrealized appreciation/(depreciation) in value of the investment securities at
August 31, 1996, are as follows:
<TABLE>
<CAPTION>
TFI NYTFI CITF
----------- ------------ -----------
<S> <C> <C> <C>
Aggregate cost.......................... $83,050,468 $107,132,447 $27,717,351
----------- ------------ -----------
Gross unrealized appreciation........... 1,661,211 2,074,074 322,648
Gross unrealized depreciation........... (746,935) (900,675) (150,347)
----------- ------------ -----------
Net unrealized
appreciation/(depreciation)........... $ 914,276 $ 1,173,399 $ 172,301
=========== ============= ===========
</TABLE>
At August 31, 1996, Tax Free Income Fund had a net capital loss carryover of
approximately $4,091,000 which will be available through August 31, 2003 to
offset future capital gains to the extent provided by regulations. At August 31,
1996, New York Tax Free Income Fund had a net capital loss carryover of
approximately $641,000 which will be available through August 31, 2003. During
the fiscal year ended August 31, 1996, TFI, NYTFI and CITF utilized capital loss
carryovers of approximately $820,000, $185,000 and $289,000, respectively. To
the extent that any net capital loss carryovers are used to offset future
capital gains, it is probable that the gains so offset will not be distributed
to shareholders.
5. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST -- Transactions in Shares of
Beneficial Interest were as follows:
<TABLE>
<CAPTION>
Vista Tax Free Income Fund
-----------------------------------------------------------
Years Ended August 31,
-----------------------------------------------------------
1996 1995
--------------------------- ----------------------------
Amount Shares Amount Shares
------------ ------------ ------------- ------------
<S> <C> <C> <C> <C>
Class A
Shares sold................. $ 47,061,471 3,923,256 $ 77,438,814 6,653,409
Shares issued in
reinvestment of
distributions............. 2,672,938 222,637 3,168,136 275,789
Shares redeemed............. (68,392,091) (5,689,713) (90,750,870) (7,817,258)
------------ ------------ ------------- ------------
Net increase (decrease) in
Trust shares
outstanding............... ($18,657,682) (1,543,820) ($ 10,143,920) (888,060)
============= ============= ============== =============
</TABLE>
<TABLE>
<CAPTION>
Vista Tax Free Income Fund
----------------------------------------------------------
Years Ended August 31,
----------------------------------------------------------
1996 1995
--------------------------- ---------------------------
Amount Shares Amount Shares
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Class B
Shares sold.................. $ 4,046,461 339,716 $ 4,667,357 407,478
Shares issued in reinvestment
of distributions........... 424,202 35,612 425,745 37,193
Shares redeemed.............. (4,356,671) (366,602) (2,629,681) (232,844)
------------ ------------ ------------ ------------
Net increase (decrease) in
Trust shares outstanding... $ 113,992 8,726 $ 2,463,421 211,827
============= ============= ============= =============
</TABLE>
24
<PAGE> 27
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista New York Tax Free Income Fund
----------------------------------------------------------
Years Ended August 31,
----------------------------------------------------------
1996 1995
--------------------------- ---------------------------
Amount Shares Amount Shares
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Class A
Shares sold.................. $ 42,163,283 3,631,644 $111,020,668 10,003,441
Shares issued in reinvestment
of distributions........... 3,747,799 323,930 4,309,823 388,429
Shares redeemed.............. (53,291,302) (4,593,977) (116,498,122) (10,440,003)
------------ ------------ ------------ ------------
Net increase (decrease) in
Trust shares outstanding... ($ 7,380,220) (638,403) ($ 1,167,631) (48,133)
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
Vista New York Tax Free Income Fund
----------------------------------------------------------
Years Ended August 31,
----------------------------------------------------------
1996 1995
--------------------------- ---------------------------
Amount Shares Amount Shares
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Class B
Shares sold.................. $ 4,063,318 351,502 $ 4,746,789 428,827
Shares issued in reinvestment
of distributions........... 400,096 34,785 304,133 27,471
Shares redeemed.............. (1,287,240) (112,550) (1,843,083) (166,365)
------------ ------------ ------------ ------------
Net increase (decrease) in
Trust shares outstanding... $ 3,176,174 273,737 $ 3,207,839 289,933
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
Vista California Intermediate Tax Free Income Fund
----------------------------------------------------------
Years Ended August 31,
----------------------------------------------------------
1996 1995
--------------------------- ---------------------------
Amount Shares Amount Shares
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Shares sold.................. $ 1,153,501 116,473 $ 1,522,350 158,764
Shares issued in reinvestment
of distributions........... 1,007,276 101,364 972,993 101,274
Shares redeemed.............. (6,379,898) (644,656) (6,625,302) (690,473)
------------ ------------ ------------ ------------
Net increase (decrease) in
Trust shares outstanding... ($ 4,219,121) (426,819) ($ 4,129,959) (430,435)
============= ============= ============= =============
</TABLE>
6. CONCENTRATION OF CREDIT RISK -- TFI, NYTFI and CITF invest substantially
all of their assets in a diversified portfolio of debt obligations issued by
states, territories and possessions of the United States and by the District of
Columbia, and by their political subdivisions and duly constituted authorities,
NYTFI and CITF primarily investing in issuers in the States of New York and
California, respectively. The issuer's abilities to meet their obligations may
be affected by economic or political developments in a specific state or region.
25
<PAGE> 28
VISTA MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
7. TRUSTEE COMPENSATION -- The Funds have adopted an unfunded noncontributory
defined benefit pension plan covering all independent trustees of the Funds who
will have served as an independent trustee for at least five years at the time
of retirement. Benefits under this plan are based on compensation and years of
service. Pension expenses for the year ended August 31, 1996, included in
Trustees Fees and Expenses in the Statement of Operations, prepaid pension costs
and accrued pension liability included in other assets, and other accrued
liabilities, respectively, in the Statement of Assets and Liabilities were as
follows:
<TABLE>
<CAPTION>
Prepaid Accrued
Pension Pension Pension
Expenses Costs Liability
-------- ------- ---------
<S> <C> <C> <C>
TFI................................................ $1,727 $5,353 $7,080
NYTFI.............................................. 2,050 6,353 8,403
CITF............................................... 576 1,783 2,359
</TABLE>
26
<PAGE> 29
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OF BENEFICIAL INTEREST
OUTSTANDING
Throughout each period indicated
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista Tax Free Income Fund
-------------------------------------------------------------
Class A
-------------------------------------------------------------
Year Ended 11/1/93 Year Ended
------------------- Through -----------------------
8/31/96 8/31/95 8/31/94++ 10/31/93 10/31/92
------- ------- --------- -------- ----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period....................... $ 11.85 $ 11.70 $ 12.70 $ 11.52 $ 11.12
------- ------- ------- ------- --------
Income from Investment Operations
Net Investment Income................................... 0.580 0.585 0.475 0.662 0.731
Net Gains or Losses on Securities (both realized and
unrealized)........................................... (0.007) 0.147 (0.847) 1.412 0.556
------- ------- ------- ------- --------
Total from Investment Operations........................ 0.573 0.732 (0.372) 2.074 1.287
------- ------- ------- ------- --------
Less Distributions
Dividends from Net Investment Income.................... 0.583 0.582 0.475 0.662 0.731
Distributions from Capital Gains........................ -- -- 0.153 0.237 0.156
------- ------- ------- ------- --------
Total Distributions..................................... 0.583 0.582 0.628 0.899 0.887
------- ------- ------- ------- --------
Net Asset Value, End of Period............................. $ 11.84 $ 11.85 $ 11.70 $ 12.70 $ 11.52
======= ======= ======= ======= ========
Total Return (1)........................................... 4.88% 6.53% (2.99%) 18.72% 11.99%
Ratios/Supplemental Data
Net Assets, End of Period (000 omitted)................... $70,480 $88,783 $98,054 $83,672 $ 17,548
Ratio of Expenses to Average Net Assets #................. 0.90% 0.85% 0.58% 0.23% --
Ratio of Net Investment Income to Average Net Assets #.... 4.83% 5.07% 4.75% 5.25% 6.26%
Ratio of Expenses Without Waivers and Assumption of
Expenses to Average Net Assets #........................ 1.46% 1.47% 1.29% 1.20% 2.34%
Ratio of Net Investment Income Without Waivers and
Assumption of Expenses to Average Net Assets #.......... 4.27% 4.45% 4.04% 4.28% 3.92%
Portfolio Turnover Rate.................................... 210% 233% 258% 149% 266%
<CAPTION>
Class B
---------------------------------
Year Ended 11/4/93*
------------------- Through
8/31/96 8/31/95 8/31/94++
------- ------- ---------
<S> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period....................... $ 11.77 $ 11.65 $ 12.51
------- ------- -------
Income from Investment Operations
Net Investment Income................................... 0.486 0.498 0.423
Net Gains or Losses on Securities (both realized and
unrealized)........................................... (0.006) 0.140 (0.707)
------- ------- -------
Total from Investment Operations........................ 0.480 0.638 (0.284)
------- ------- -------
Less Distributions
Dividends from Net Investment Income.................... 0.490 0.518 0.423
Distributions from Capital Gains........................ -- -- 0.153
------- ------- -------
Total Distributions..................................... 0.490 0.518 0.576
------- ------- -------
Net Asset Value, End of Period............................. $ 11.76 $ 11.77 $ 11.65
======= ======= =======
Total Return (1)........................................... 4.10% 5.70% (2.35%)
Ratios/Supplemental Data
Net Assets, End of Period (000 omitted)................... $14,329 $14,265 $11,652
Ratio of Expenses to Average Net Assets #................. 1.65% 1.61% 1.47%
Ratio of Net Investment Income to Average Net Assets #.... 4.08% 4.31% 3.95%
Ratio of Expenses Without Waivers and Assumption of
Expenses to Average Net Assets #........................ 1.95% 1.97% 1.81%
Ratio of Net Investment Income Without Waivers and
Assumption of Expenses to Average Net Assets #.......... 3.78% 3.95% 3.61%
Portfolio Turnover Rate.................................... 210% 233% 258%
</TABLE>
- ---------------
(1) Total return figures do not include the effect of any sales load.
# Short periods have been annualized.
* Commencement of offering of class of shares.
++ In 1994 TFI changed its fiscal year-end from October 31 to August 31.
See notes to financial statements.
27
<PAGE> 30
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OF BENEFICIAL INTEREST
OUTSTANDING
Throughout each period indicated (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista New York Tax Free Income Fund
--------------------------------------------------------------
Class A
--------------------------------------------------------------
Year Ended 11/1/93 Year Ended
-------------------- Through -----------------------
8/31/96 8/31/95 8/31/94++ 10/31/93 10/31/92
------- -------- --------- -------- ----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period....................... $ 11.47 $ 11.30 $ 12.27 $ 11.18 $ 11.24
------- -------- -------- -------- --------
Income from Investment Operations
Net Investment Income................................... 0.555 0.570 0.473 0.592 0.473
Net Gains or Losses on Securities (both realized and
unrealized)........................................... (0.077) 0.167 (0.688) 1.281 0.274
------- -------- -------- -------- --------
Total from Investment Operations........................ 0.478 0.737 (0.215) 1.873 0.747
------- -------- -------- -------- --------
Less Distributions
Dividends from Net Investment Income.................... 0.558 0.567 0.472 0.591 0.473
Distributions from Capital Gains........................ -- -- 0.283 0.194 0.334
------- -------- -------- -------- --------
Total Distributions..................................... 0.558 0.567 0.755 0.785 0.807
------- -------- -------- -------- --------
Net Asset Value, End of Period............................. $ 11.39 $ 11.47 $ 11.30 $ 12.27 $ 11.18
======= ======== ======== ======== ========
Total Return (1)........................................... 4.20% 6.82% (1.81%) 17.31% 8.57%
Ratios/Supplemental Data
Net Assets, End of Period (000 omitted)................... $96,102 $104,168 $103,113 $120,809 $ 48,420
Ratio of Expenses to Average Net Assets #................. 0.90% 0.85% 0.76% 0.75% 0.75%
Ratio of Net Investment Income to Average Net Assets #.... 4.76% 5.11% 4.89% 4.86% 5.74%
Ratio of Expenses Without Waivers and Assumption of
Expenses to Average Net Assets #........................ 1.27% 1.37% 1.25% 1.11% 1.41%
Ratio of Net Investment Income Without Waivers and
Assumption of Expenses to Average Net Assets #.......... 4.39% 4.59% 4.40% 4.50% 5.08%
Portfolio Turnover Rate.................................... 156% 122% 162% 150% 280%
<CAPTION>
Class B
---------------------------------
Year Ended 11/4/93*
------------------- Through
8/31/96 8/31/95 8/31/94++
------- ------- ---------
<S> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period....................... $ 11.41 $ 11.27 $ 12.11
------- ------- -------
Income from Investment Operations
Net Investment Income................................... 0.469 0.485 0.419
Net Gains or Losses on Securities (both realized and
unrealized)........................................... (0.086) 0.162 (0.543)
------- ------- -------
Total from Investment Operations........................ 0.383 0.647 (0.124)
------- ------- -------
Less Distributions
Dividends from Net Investment Income.................... 0.463 0.507 0.433
Distributions from Capital Gains........................ -- -- 0.283
------- ------- -------
Total Distributions..................................... 0.463 0.507 0.716
------- ------- -------
Net Asset Value, End of Period............................. $ 11.33 $ 11.41 $ 11.27
======= ======= =======
Total Return (1)........................................... 3.46% 5.99% (1.11%)
Ratios/Supplemental Data
Net Assets, End of Period (000 omitted)................... $13,667 $10,633 $ 7,234
Ratio of Expenses to Average Net Assets #................. 1.65% 1.61% 1.51%
Ratio of Net Investment Income to Average Net Assets #.... 4.01% 4.35% 4.28%
Ratio of Expenses Without Waivers and Assumption of
Expenses to Average Net Assets #........................ 1.76% 1.87% 1.76%
Ratio of Net Investment Income Without Waivers and
Assumption of Expenses to Average Net Assets #.......... 3.90% 4.09% 4.03%
Portfolio Turnover Rate.................................... 156% 122% 162%
</TABLE>
- ---------------
(1) Total return figures do not include the effect of any sales load.
# Short periods have been annualized.
* Commencement of offering of class of shares.
++ In 1994 NYTFI changed its fiscal year-end from October 31 to August 31.
See notes to financial statements.
28
<PAGE> 31
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OF BENEFICIAL INTEREST
OUTSTANDING
Throughout each period indicated (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Vista California
Intermediate Tax Free Fund
----------------------------------------------------
Year Ended 11/1/94 7/15/93*
------------------------- Through Through
8/31/96 8/31/95 8/31/94++ 10/31/93
---------- ---------- --------- --------
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period.................................. $ 9.89 $ 9.69 $ 10.30 $ 10.22
-------- -------- ------- -------
Income from Investment Operations
Net Investment Income.............................................. 0.473 0.505 0.320 0.166
Net Gains or Losses on Securities (both realized and unrealized)... 0.013 0.200 (0.408) 0.081
-------- -------- ------- -------
Total from Investment Operations............................... 0.486 0.705 (0.088) 0.247
-------- -------- ------- -------
Less Distributions
Dividends from Net Investment Income............................... 0.476 0.505 0.404 0.165
Distributions from Capital Gains................................... 0.090 -- 0.118 --
-------- -------- ------- -------
Total Distributions................................................ 0.566 0.505 0.522 0.165
-------- -------- ------- -------
Net Asset Value, End of Period........................................ $ 9.81 $ 9.89 $ 9.69 $ 10.30
======== ======== ======= =======
Total Return (1)...................................................... 5.00% 7.55% (0.86%) 2.42%
Ratios/Supplemental Data
Net Assets, End of Period (000 omitted).............................. $ 28,298 $ 32,746 $36,264 $41,728
Ratio of Expenses to Average Net Assets #............................ 0.60% 0.52% 0.52% 0.52%
Ratio of Net Investment Income to Average Net Assets #............... 4.77% 5.24% 4.88% 4.83%
Ratio of Expenses Without Waivers and Assumption of Expenses to
Average Net Assets #............................................... 1.47% 1.40% 1.37% 1.33%
Ratio of Net Investment Income Without Waivers and Assumption of
Expenses to Average Net Assets #................................... 3.90% 4.36% 4.03% 4.02%
Portfolio Turnover Rate............................................... 188% 94% 93% 40%
</TABLE>
- ---------------
(1) Total return figures do not include the effect of any sales load.
# Short periods have been annualized.
* Commencement of operations.
++ In 1994 CITF changed its fiscal year end from October 31 to August 31.
See notes to financial statements.
29
<PAGE> 32
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Trustees and Shareholders of
Mutual Fund Trust
In our opinion, the accompanying statements of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets and the selected per share data and ratios for a share of
beneficial interest outstanding present fairly, in all material respects, the
financial position of Vista Tax Free Income Fund, Vista New York Tax Free Income
Fund and Vista California Intermediate Tax Free Fund (separate portfolios of
Mutual Fund Trust, hereafter referred to as the "Trust") at August 31, 1996, the
results of each of their operations for the year then ended, the changes in each
of their net assets for each of the two years then ended and the selected per
share data and ratios for a share of beneficial interest outstanding for each of
the periods presented, in conformity with generally accepted accounting
principles. These financial statements and selected per share data and ratios
for a share of beneficial interest outstanding (hereafter referred to as
"financial statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at August
31, 1996 by correspondence with the custodian and brokers and the application of
alternative auditing procedures where confirmations from brokers were not
received, provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
October 18, 1996
30
<PAGE> 33
SHAREHOLDER MEETING RESULTS (unaudited)
- --------------------------------------------------------------------------------
Vista Tax Free Income Fund, Vista New York Tax Free Income Fund and Vista
California Intermediate Tax Free Fund are separate series of Mutual Fund Trust,
a Massachusetts business trust (the "Trust"). A special meeting of shareholders
of the Trust (the "Meeting") was convened on April 2, 1996, and was adjourned as
to certain matters to April 16, 1996 and April 25, 1996.
At the Meeting, the shareholders of the Trust elected all of the Trustees then
in office and three additional Trustees. The Trustees elected were Fergus Reid,
III, Richard E. Ten Haken, William J. Armstrong, John R.H. Blum, Joseph J.
Harkins, H. Richard Vartebedian, Stuart W. Cragin, Jr., Irving L. Thode, W.
Perry Neff, Roland R. Eppley, Jr. and W.D. MacCallan.
Except as indicated, the shareholders of the Funds present at the Meeting,
in person or by proxy, each cast their votes on the following matters as follows
(all fractional shares rounded):
Approval or disapproval of an Interim Advisory Agreement between the Trust and
The Chase Manhattan Bank, N.A. (and the successor entity thereto) with respect
to each Fund:
<TABLE>
<CAPTION>
Fund For Against Abstained
---------------------------------------------- --------- ------- ---------
<S> <C> <C> <C>
Vista Tax Free Income Fund 4,769,068 39,389 166,036
Vista New York Tax Free Income Fund 5,533,457 70,368 171,616
Vista California Intermediate Tax Free Fund 1,891,507 18,526 107,842
</TABLE>
Election of Trustees (results for shareholders of all series of the Trust
voting together):
<TABLE>
<CAPTION>
For Withhold
------------- -----------
<S> <C> <C>
Fergus Reid, III 4,106,927,676 87,636,502
Richard E. Ten Haken 4,107,275,222 87,285,956
William J. Armstrong 4,041,177,525 153,383,653
John R.H. Blum 4,106,989,252 87,571,671
Joseph J. Harkins 4,106,848,024 87,713,154
H. Richard Vartebedian 4,106,654,874 87,906,304
Stuart W. Cragin, Jr. 4,106,995,988 87,565,190
Irving L. Thode 4,040,626,095 153,945,083
W. Perry Neff 4,106,668,847 87,892,331
Roland R. Epply, Jr. 4,107,386,860 87,174,318
W.D. MacCallan 4,040,194,182 154,366,996
</TABLE>
Ratification of Price Waterhouse LLP as independent public accountants for each
Fund:
<TABLE>
<CAPTION>
For Against Abstain
--------- ------- -------
<S> <C> <C> <C>
Vista Tax Free Income Fund 4,801,166 31,309 142,018
Vista New York Tax Free Income Fund 5,542,647 50,209 182,585
Vista California Intermediate Tax Free Fund 1,924,816 35,231 50,021
</TABLE>
Approval or disapproval of an amendment to the Trust's Declaration of Trust
(results for shareholders of all series of the Trust voting together):
<TABLE>
<CAPTION>
For Against Abstain
-------------- ------------ ------------
<S> <C> <C> <C>
3,694,238,094 309,837,044 190,486,040
</TABLE>
Approve or disapprove an amendment to each Fund's fundamental investment
restriction concerning borrowing:
<TABLE>
<CAPTION>
For Against Abstain
--------- ------- -------
<S> <C> <C> <C>
Vista Tax Free Income Fund 4,454,860 122,958 264,705
Vista New York Tax Free Income Fund 5,220,102 178,461 336,662
Vista California Intermediate Tax Free Fund 1,648,896 72,678 116,796
</TABLE>
31
<PAGE> 34
Approve or disapprove an amendment to each Fund's fundamental investment
restriction concerning investment for the purpose of exercising control:
<TABLE>
<CAPTION>
For Against Abstain
--------- ------- -------
<S> <C> <C> <C>
Vista Tax Free Income Fund 3,884,403 109,725 297,124
Vista New York Tax Free Income Fund 4,618,974 151,071 336,200
Vista California Intermediate Tax Free Fund 1,526,704 71,470 240,196
</TABLE>
Approve or disapprove an amendment to each Fund's fundamental investment
restriction concerning the making of loans:
<TABLE>
<CAPTION>
For Against Abstain
--------- ------- -------
<S> <C> <C> <C>
Vista Tax Free Income Fund 3,894,384 107,893 288,974
Vista New York Tax Free Income Fund 4,544,360 218,382 343,502
Vista California Intermediate Tax Free Fund 1,632,339 83,322 122,709
</TABLE>
Approve or disapprove an amendment to each Fund's fundamental investment
restriction concerning purchases of securities on margin:
<TABLE>
<CAPTION>
For Against Abstain
--------- ------- -------
<S> <C> <C> <C>
Vista Tax Free Income Fund 3,837,577 163,422 290,253
Vista New York Tax Free Income Fund 4,626,584 175,490 304,170
Vista California Intermediate Tax Free Fund 1,621,330 87,443 129,598
</TABLE>
Approve or disapprove an amendment to each Fund's fundamental investment
restriction concerning concentration of investment:
<TABLE>
<CAPTION>
For Against Abstain
--------- ------- -------
<S> <C> <C> <C>
Vista Tax Free Income Fund 3,900,424 87,471 303,356
Vista New York Tax Free Income Fund 4,621,151 149,174 335,940
Vista California Intermediate Tax Free Fund 1,665,738 62,102 110,531
</TABLE>
Approve or disapprove an amendment to each Fund's fundamental investment
restriction concerning commodities and real estate:
<TABLE>
<CAPTION>
For Against Abstain
--------- ------- -------
<S> <C> <C> <C>
Vista Tax Free Income Fund 3,879,455 117,295 294,510
Vista New York Tax Free Income Fund 4,561,310 194,412 350,522
Vista California Intermediate Tax Free Fund 1,527,567 82,304 228,499
</TABLE>
Approve or disapprove an amendment to each Fund's fundamental investment
restriction regarding investments in restricted and illiquid securities:
<TABLE>
<CAPTION>
For Against Abstain
--------- ------- -------
<S> <C> <C> <C>
Vista Tax Free Income Fund 3,861,656 129,627 299,969
Vista New York Tax Free Income Fund 4,566,942 184,505 354,798
Vista California Intermediate Tax Free Fund 1,633,369 79,896 125,105
</TABLE>
Approve or disapprove of a reclassification, as nonfundamental, of each Fund's
fundamental restriction concerning the use of options:
<TABLE>
<CAPTION>
For Against Abstain
--------- ------- -------
<S> <C> <C> <C>
Vista Tax Free Income Fund 3,857,936 135,034 298,290
Vista New York Tax Free Income Fund 4,576,044 171,090 359,111
Vista California Intermediate Tax Free Fund 1,617,264 68,914 152,191
</TABLE>
32
<PAGE> 35
Approve or disapprove an amendment to each Fund's fundamental investment
restriction concerning senior securities:
<TABLE>
<CAPTION>
For Against Abstain
--------- ------- -------
<S> <C> <C> <C>
Vista Tax Free Income Fund 3,890,698 100,896 299,667
Vista New York Tax Free Income Fund 4,589,762 151,983 364,499
Vista California Intermediate Tax Free Fund 1,651,354 58,445 128,572
</TABLE>
Approve or disapprove an amendment to each Fund's fundamental investment
restriction regarding short sales of securities:
<TABLE>
<CAPTION>
For Against Abstain
--------- ------- -------
<S> <C> <C> <C>
Vista Tax Free Income Fund 3,868,582 124,047 298,631
Vista New York Tax Free Income Fund 4,563,901 197,867 344,477
Vista California Intermediate Tax Free Fund 1,530,539 180,929 126,902
</TABLE>
Approve or disapprove a proposal to adopt new investment policy that authorizes
each Fund to invest all of investable assets in another open-end investment
company having substantially the same investment objective and policies as the
Fund:
<TABLE>
<CAPTION>
For Against Abstain
--------- ------- -------
<S> <C> <C> <C>
Vista Tax Free Income Fund 3,876,503 140,020 274,737
Vista New York Tax Free Income Fund 4,585,441 198,239 322,564
Vista California Intermediate Tax Free Fund 1,542,270 66,839 229,261
</TABLE>
Approve or disapprove a change in the status of the Vista California
Intermediate Tax Free Fund from a diversified Fund to a non-diversified Fund:
<TABLE>
<CAPTION>
For Against Abstain
--------- ------- -------
<S> <C> <C> <C>
Vista California Intermediate Tax Free Fund 1,528,186 79,570 122,305
</TABLE>
Approve or disapprove an amendment to the Class A Shares Rule 12b-1 Distribution
Plan of each Fund:
<TABLE>
<CAPTION>
For Against Abstain
--------- ------- -------
<S> <C> <C> <C>
Vista Tax Free Income Fund 3,382,387 106,669 250,349
Vista New York Tax Free Income Fund 4,153,616 145,573 349,984
Vista California Intermediate Tax Free Fund 1,622,095 30,482 122,823
</TABLE>
Approve or disapprove a new investment advisory agreement between each of the
Funds and the Adviser and a subadvisory agreement between the Adviser and Chase
Asset Management, Inc. to take effect as soon as practicable after the approval
by shareholders (to be voted on separately by shareholders of each such Fund):
<TABLE>
<CAPTION>
For Against Abstain
--------- ------- -------
<S> <C> <C> <C>
Vista Tax Free Income Fund 4,608,476 65,757 251,266
Vista New York Tax Free Income Fund 5,368,151 71,244 327,320
Vista California Intermediate Tax Free Fund 1,780,047 14,855 106,856
</TABLE>
33
<PAGE> 36
(unaudited)
VISTA TAX FREE INCOME FUND (TFI)
VISTA NEW YORK TAX FREE INCOME FUND (NYTFI)
VISTA CALIFORNIA INTERMEDIATE TAX FREE FUND (CITF)
- --------------------------------------------------------------------------------
Certain tax information regarding the Vista Mutual Funds is required to be
provided to shareholders based upon the Funds income and distributions for the
taxable year ended August 31, 1996. The information and distributions reported
in this letter may differ from the information and distributions taxable to the
shareholders for the calendar year ending December 31, 1996. The information
necessary to complete your income tax returns for the calendar year ending
December 31, 1996 will be received under separate cover.
FOR THE FISCAL YEAR ENDED AUGUST 31, 1996.
- All of the dividends paid from net investment income are 100% exempt
from Federal income tax for TFI, NYTFI and CITF, respectively.
- For shareholders who are subject to the Alternative Minimum Tax, the
income from private activities bonds issued after August 7, 1986, which
may be considered a tax preference item, was 13.51%, 9.39% and 2.79%
for TFI, NYTFI and CITF, respectively.
34
<PAGE> 37
VISTA SERVICE CENTER
P.O. BOX 419392
KANSAS CITY, MO 64179
Investment Adviser, Administrator,
Shareholder and Fund Servicing Agent and Custodian
The Chase Manhattan Bank
Distributor
Vista Fund Distributors, Inc.
Transfer Agent
DST Systems, Inc.
Legal Counsel
Simpson Thacher & Bartlett
Independent Accountants
Price Waterhouse LLP
Vista Fund Distributors, Inc. is the funds' distributor and is unaffiliated with
Chase. The Chase Manhattan Bank is the funds' adviser.
This report is submitted for the general information of the shareholders of the
funds. It is not authorized for distribution to prospective investors in the
funds unless preceded or accompanies by a prospectus.
To obtain a prospectus for any of the Vista funds, call 1-800-34-VISTA. The
prospectus contains more complete information, including charges and expenses.
Please read it carefully before you invest or send money.
8/96 VIS-2
