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CHASE VISTA TAX FREE FUNDS
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CHASE VISTA FUNDS(SM)
ANNUAL
REPORT
----------------------------------------
Chase Vista.(SM) Setting the Global Standard.
CHASE VISTA TAX FREE INCOME FUND
CHASE VISTA NEW YORK
TAX FREE INCOME FUND
CHASE VISTA CALIFORNIA INTERMEDIATE
TAX FREE FUND
August 31, 1998
<PAGE>
Highlights
During the reporting period, interest rates fell
dramatically even though the U.S. economy continued
to grow steadily.
o As interest rates declined, many municipal bond issuers
refinanced existing debt, creating a sharp increase in new
issuance.
o In the months ahead, the fundamentals for the municipal bond
market appear favorable and we expect the ratio between
Treasury and municipal bond yields to remain attractive.
CONTENTS
Chairman's Letter 3
Chase Vista Tax Free Income Fund 4
Fund Commentary o Portfolio of Investments
Chase Vista New York Tax Free Income Fund 14
Fund Commentary o Portfolio of Investments
Chase Vista California Intermediate Tax Free Fund 23
Fund Commentary o Portfolio of Investments
Financial Statements 30
Notes to Financial Statements 33
Financial Highlights 38
- --------------------------------------------------------------------------------
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>
Chase Vista Tax Free Funds
Chairman's Letter
October 1, 1998
Dear Shareholder:
We are pleased to present this annual report for Chase Vista Tax Free Income
Fund, Chase Vista New York Tax Free Income Fund and Chase Vista California
Intermediate Tax Free Fund for the year ended August 31, 1998. Inside you will
find information on the performance of each fund along with a report from the
portfolio management team.
Interest Rates Trend Lower Despite Strong Economy
During the period, interest rates fell dramatically even though the U.S. economy
continued to grow steadily, fueled by high employment, rising wages and strong
consumer confidence. In this environment most municipalities enjoyed
higher-than-expected tax revenues due to favorable economic conditions. Since
the economy did not overheat, the Federal Reserve maintained its neutral
monetary policy, as it has for more than a year and a half. The Fed has not
raised short-term interest rates since March, 1997 and has not lowered them
since December, 1996.
The decline in interest rates was largely due to two primary factors: benign
domestic inflation and concerns over a slowdown in global
economic growth brought on by economic and currency problems in southeast Asia
and Russia. As interest rates declined, many municipalities refinanced existing
debt, creating a sharp increase in new issuance. For 1998, the dollar amount of
new bonds on the market is expected to exceed the new issuance record of $290
billion set in 1993.
The increase in supply was largely responsible for the narrow difference in
yield between U.S. Treasuries and municipal bonds. Over the period, yields on
municipal bonds rose to approximately 90 percent of the yields on U.S.
Treasuries. The historical difference is usually around 80 percent. During the
flat tax scare in 1995, the ratio was 91%, which, in retrospect, proved to be an
excellent entry level for investors.
Looking ahead, our outlook for the tax-exempt fixed income market remains
positive. Economic and currency problems in Asia continue to pose a serious
threat to the global economy, which should keep interest rates trending lower.
Moreover, inflation does not appear to be a problem going forward, even though
the U.S. economy remains healthy. Given this backdrop, we would not be surprised
to see the Federal Reserve lower short-term interest rates in the months ahead.
Sincerely,
/s/ Fergus Reid
Fergus Reid
3
<PAGE>
Chase Vista Tax Free Income Fund
as of August 31, 1998
(unaudited)
Fund Facts
<TABLE>
<S> <C> <C>
Objective Federal tax exempt income*
Primary investments Municipal bonds
Suggested investment time frame 3-5 Years minimum
Market benchmark Lehman Municipal Bond Index
Lipper Funds category General Municipal Debt Funds Average
Class A Class B
------- -------
Inception date 9/8/87 11/4/93
Newspaper symbol TF Inc not listed
Net assets $61 Million $15 Million
Average maturity 26.3 years 26.3 years
Average duration 8.6 years 8.6 years
Average quality Aa/AA Aa/AA
</TABLE>
* A portion of the Fund's income may be subject to the Alternative Minimum Tax,
and some investors may be subject to certain state and local taxes.
Average Maturity/Quality
[Square Chart]
Average Maturity/Quality: Long/High
[End Square Chart]
Source: Morningstar
4
<PAGE>
Chase Vista Tax Free Income Fund
as of August 31, 1998
(unaudited)
How the Fund Performed
Chase Vista Tax Free Income Fund, which seeks to provide tax-exempt income
through a portfolio of higher-quality municipal bonds of varying maturities, had
a total return of 9.38% for the one-year period ended August 31, 1998 (Class A
shares, without sales charges). This compares to a return of 8.20% for the
Lipper General Municipal Debt Funds Average and 8.65% for the unmanaged Lehman
Municipal Bond Index.
How the Fund Was Managed
The Fund benefited from the sharp decline in interest rates during the period.
The drop in rates was largely due to a flight to quality among investors, as the
economic and currency problems in southeast Asia once again fanned fears of
economic uncertainty around the globe.
While falling interest rates helped ignite a rally, it also led to a wave of
refinancing and, in turn, a sharp increase in supply. This put some pressure on
prices and caused yields to rise. We used the increase in supply to increase our
investment in high quality issues with relatively attractive yields.
Finally, the Fund's slightly higher-than-average duration throughout the period
contributed significantly to performance due to the decline in rates. During the
reporting period, long-term interest rates, as measured by the benchmark 30-year
Treasury bond, declined from 6.61% to 5.26%.
Where the Fund May Be Headed
We continue to hold an optimistic outlook for the tax-exempt bond market. Fears
of a slowing global economy brought on by the economic turmoil in Asia and
Russia should prevent interest rates from rising significantly. In fact, we
intend to use any upturn in interest rates as a potential opportunity to further
extend duration.
Additionally, the ratio between Treasury and municipal bond yields is likely to
remain attractive since dealers are still having difficulty placing new issues.
As always, we will continue to strive to provide shareholders with a relatively
attractive yield while emphasizing a diversified portfolio among securities with
high credit quality.
5
<PAGE>
Chase Vista Tax Free Income Fund
as of August 31, 1998
(unaudited)
How Much of the Fund Was Invested
[Pie Chart]
Investments (91.9%)
Cash/Other (8.1%)
[End Pie Chart]
Average Annual Total Returns
This table shows the average annual total returns. This is where you can see the
Fund's short-term performance, which, as with the stock markets, tends to be
more volatile than the long-term trend.
<TABLE>
<CAPTION>
1 Year 5 Years 10 Years
------ ------- ---------
<S> <C> <C> <C>
Class A Shares
Without Sales Charge 9.38% 5.54% 8.92%
With Sales Charge* 4.46% 4.58% 8.42%
Class B Shares
Without CDSC 8.45% 4.70% 8.48%
With CDSC** 3.45% 4.37% 8.48%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less than
their original cost.
The Fund is currently waiving fees. This voluntary waiver may be modified or
terminated at any time, which would reduce performance.
* The maximum sales charge for A shares is 4.50%.
** Assumes a 5% CDSC for the one year period, a 2% CDSC for the five year period
and a 0% CDSC for the ten year period.
+ The Fund commenced operations on 9/8/87. Class B Shares were introduced on
11/4/93. Investors should note that the information presented for B Shares prior
to their introduction is based upon historical expenses of the predecessor Class
A Shares, which are lower than the actual expenses of the B Shares.
Additionally, annualized figures have been reinstated to reflect the maximum
contingent deferred sales charge that applies to the Fund's B Shares.
6
<PAGE>
Chase Vista Tax Free Income Fund
as of August 31, 1998
(unaudited)
10-Year Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Visa Tax Free Income Fund compared to its key
benchmarks. This is where you see the Fund's long-term trend. This chart is for
illustrative purposes only.
[Mountain Chart]
<TABLE>
<CAPTION>
Lipper
General
Chase Vista Lehman Muni
Tax Free Muni Bond Debt Funds
Income Fund Index Avg.
<S> <C> <C> <C>
1988 9550 10000 10000
1989 10657.8 11098.1 11124.2
1990 11195.8 11811.2 11655.2
1991 12748.1 13204.5 13023.3
1992 14672.1 14681.1 14507.8
1993 17142 16421 16305.1
1994 16833.3 16444.9 16112.8
1995 17933.1 17903.5 17292.1
1996 18808.5 18839.5 18103.5
1997 20528 20584.9 19704.6
1998 22454 22385.7 21319
</TABLE>
[End Mountain Chart]
Source: Lipper Analytical Services, Inc. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less than
their original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
shares of the Chase Vista Tax Free Income Fund, the Lehman Municipal Bond Index
and the Lipper General Municipal Debt Funds Average from August 31, 1988 to
August 31, 1998. The performance of the Fund assumes reinvestment of all
dividends and capital gains and includes a 4.50% sales charge. The performance
of the average and the index 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 unmanaged Lehman Municipal Bond Index is a broad-based 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. An individual cannot invest in the index.
The Lipper General Municipal Debt Funds Average represents the average
performance of a universe of 258 actively-managed municipal bond funds. Lipper
is an independent mutual fund performance monitor whose results are based on
total return and do not reflect a sales charge.
A portion of the Fund's income may be subject to the Alternative Minimum Tax,
and some investors may be subject to certain state and local taxes.
The Fund is currently waiving fees. This voluntary waiver may be modified or
terminated at any time, which would reduce performance.
7
<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments August 31, 1998
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ----------------------------------------------------------------
Long Term Municipal Bonds -- 100.9%
- ----------------------------------------------------------------
<S> <C> <C>
California -- 13.4%
$ 150,000 California Board of Regents, UCLA,
Educational Facilities Authority,
Prerefunded, Rev., 7.00%,
09/01/00 $ 162,793
150,000 California Educational Facilities
Authority, Pepperdine Univ., Rev.,
7.20%, 11/01/15 164,130
4,000,000 California Statewide Community
Development Authority, Sherman
Oaks Project, Series A, Insured,
Rev., 5.00%, 08/01/22 4,027,680
150,000 Orange County Water District, COP,
5.75%, 08/15/14 156,291
2,500,000 San Francisco, California, City &
County Community International
Airport, 2nd Series, Issue 18A,
Rev., 5.25%, 05/01/12 2,633,600
2,800,000 South Orange County Public
Financing Authority, Senior Lien,
Series A, Insured, +, Special Tax
Rev., 6.20%, 09/01/13 3,111,808
----------
10,256,302
----------
Colorado -- 2.0%
1,500,000 Denver Colorado, Health & Hospital,
Series A, Rev., 5.38%, 12/01/18 1,496,190
----------
Georgia -- 9.2%
2,000,000 Fulton County, Georgia, School
District, GO, 5.25%, 01/01/15 2,126,680
2,000,000 Georgia State, GO, 4.00%, 07/01/12 1,895,780
2,700,000 Municipal Electric Authority of
Georgia, Project One, Sub-Series A,
Rev., 6.25%, 01/01/14 2,983,203
----------
7,005,663
----------
</TABLE>
See notes to financial statements.
8
<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments August 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- -----------------------------------------------------------------
<S> <C> <C>
Illinois -- 0.4%
$ 100,000 Chicago Illinois Public Building
Commission, Series A, Rev.,
7.75%, 01/01/06 $ 103,397
150,000 Chicago O'Hare Intl. Airport, Series
A, Rev., 7.50%, 01/01/03 159,421
65,000 Illinois Housing Development
Authority, Series A, Rev.,
8.00%, 06/01/26 68,433
-----------
331,251
-----------
Kansas -- 5.2%
3,500,000 Kansas City, Kansas, Utility System,
Rev., 6.38%, 09/01/23 3,942,680
-----------
Maryland -- 0.2%
115,000 Maryland State Community
Development Administration,
Housing & Community
Development, Single Family
Housing Program, 2nd Series,
Rev.,7.60%, 04/01/23 120,491
-----------
Massachusetts -- 6.3%
2,500,000 Massachusetts State Consolidated
Loan, Series C, GO, 5.25%,
08/01/12 2,627,725
70,000 Massachusetts State Housing Finance
Authority, Series H, Rev., 7.75%,
12/01/20 72,917
1,000,000 Massachusetts State Port Authority,
Series A, Rev., 5.00%, 07/01/27 981,950
1,000,000 New England Education Loan
Marketing Corp., Massachusetts
Student Loan, Sub-Issue H, Rev.,
6.90%, 11/01/09 1,120,890
-----------
4,803,482
-----------
Michigan -- 2.2%
1,000,000 Michigan State Housing Authority,
Rental Housing, Series B, Rev.,
7.55%, 04/01/23 1,079,130
</TABLE>
See notes to financial statements.
9
<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments August 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- --------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- --------------------------------------------------------------
<S> <C> <C>
$ 500,000 Wayne County, Michigan, Building
Authority, Series A, GO, 8.00%,
03/01/17 $ 574,310
---------
1,653,440
---------
Montana -- 1.5%
1,100,000 Montana State, Long Range Building
Program, Series D, GO, 5.38%,
08/01/12 1,166,473
---------
Missouri -- 1.1%
720,000 Sikeston Missouri Electric, Rev.,
6.00%, 06/01/16 826,121
---------
Nevada -- 0.2%
130,000 Nevada Housing Division, Single
Family Housing Rev., 8.20%,
10/01/19 142,508
---------
New Jersey -- 12.3%
1,000,000 Camden County, New Jersey IAR,
Health Systems, Catholic Health
East, Series A, Insured, Rev.,
5.00%, 11/15/28 989,160
2,000,000 Essex County, New Jersey, Utilities
Authority, Solid Waste, Series A,
Insured, Rev., 6.00%, 04/01/06 2,228,900
3,455,000 Middletown Township, New Jersey,
Board of Education, Insured, GO,
5.8%, 08/01/20 3,696,366
1,500,000 New Jersey State, Educational
Facilities Authority, Fairleigh
Dickinson University, Series G,
Rev., 5.75%, 07/01/27 1,495,590
1,000,000 Ocean County, New Jersey, GO,
4.60%, 10/01/14 984,330
---------
9,394,346
---------
</TABLE>
See notes to financial statements.
10
<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments August 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ---------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ---------------------------------------------------------------------
<S> <C> <C>
New York -- 17.5%
$2,000,000 Long Island Power Authority, New
York, Electric Systems, Series A,
Insured, Rev., 5.50%, 12/01/13 $2,193,260
2,450,000 New York City, New York, Series A,
Insured, GO, 6.25%, 08/01/09 2,767,373
500,000 New York State, Dorm Authority,
IDA, Mt. St. Vincent College,
Rev., +, 7.00%, 05/01/08 549,460
1,700,000 New York University Educational
Facilities, Series A, Insured, Rev., +,
5.75%, 07/01/27 1,939,003
5,000,000 Port Authority, New York & New
Jersey, Consolidated 93rd Series,
Rev., 6.13%, 06/01/2094 5,882,000
----------
13,331,096
----------
Ohio -- 6.2%
4,000,000 Cleveland Ohio Public Power System
First Mortgage -- Series A,
Prerefunded, +, Rev., 7.00%,
11/15/04 4,713,520
----------
Pennsylvania -- 4.6%
3,000,000 Delaware Valley, Pennsylvania,
Regional Finance Authority, Local
Government, Series A, Insured,
GO, 5.50%, 08/01/28 3,290,910
230,000 New Castle Pennsylvania Area
Hospital Authority Refunding,
St. Francis Hospital, Series A,
6.50%, 11/15/17 244,260
----------
3,535,170
----------
Puerto Rico -- 3.9%
3,000,000 Puerto Rico Commonwealth,
Highway & Transportation
Authority, Series A, Rev.,
4.75%, 07/01/38 2,900,940
75,000 Puerto Rico Urban Renewal &
Housing, Rev., 7.88%, 10/01/04 79,295
----------
2,980,235
----------
</TABLE>
See notes to financial statements.
11
<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments August 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- --------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- --------------------------------------------------------------------
<S> <C> <C>
South Carolina -- 5.3%
$3,500,000 Piedmont Municipal Power Agency,
South Carolina, Electric, Series A,
Rev., 6.60%, 01/01/21 $ 3,505,040
South Carolina Housing Finance &
Development Authority, Fairway
Apts. Project, Rev.,
250,000 7.63%, 04/01/33 263,433
250,000 Series B, Rev., 7.80%, 07/01/09 258,308
-----------
4,026,781
-----------
South Dakota -- 0.1%
100,000 South Dakota Housing Development
Authority, Series A, Rev., 5.88%,
05/01/12 104,728
-----------
Utah -- 0.3%
250,000 Utah State Board of Regents, Student
Loan, Series F, Rev., 7.45%, 11/01/08 267,118
-----------
Virgin Islands -- 4.7%
500,000 Virgin Islands, Escrowed to Maturity,
GO, 7.00%, 10/01/02 559,565
3,000,000 Virgin Islands, Public Finance
Authority, Series A, Rev.,
5.50%, 10/01/22 3,063,900
-----------
3,623,465
-----------
Virginia -- 3.9%
100,000 Fairfax County Economic, Ogden
Martin Sys. Project, Series A, Rev.,
7.75%, 02/01/11 104,555
17,000,000 Pocahontas Parkway Association,
Virginia, Toll Road, Series B, Rev.,
Zero coupon, 08/15/29 2,849,710
-----------
2,954,265
-----------
</TABLE>
See notes to financial statements.
12
<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments August 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- --------------------------------------------------------------------------------------
Long Term Investments (continued)
- --------------------------------------------------------------------------------------
<S> <C> <C>
Washington -- 0.4%
$ 250,000 Washington State Public Power
Supply, Nuclear Project, Series B, $ 298,185
Rev., 7.25%, 07/01/09
- --------------------------------------------------------------------------------------
Total Long Term Municipal Bonds --
(Cost $72,943,850) 76,973,510
- --------------------------------------------------------------------------------------
Short Term Investments--1.7%
- --------------------------------------------------------------------------------------
Shares
Money Market Funds -- 1.7%
130,155 Provident Municipal Cash Money
Market Fund 130,155
1,197,717 Provident Municipal Money Market
Fund 1,197,717
- --------------------------------------------------------------------------------------
Total Short Term Investments
(Cost $1,327,872) 1,327,872
- --------------------------------------------------------------------------------------
Total Investments -- 102.6%
(Cost $74,271,722) $78,301,382
- -------------------------------------------------------------------------------------
Short Municipal Futures
- -----------------------
</TABLE>
<TABLE>
<CAPTION>
Expiration Number of Original Value at Unrealized
Description Date Contracts Cost 08/31/98 Depreciation
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Municipal September 20 $2,478,587 $2,532,500 ($ 53,913)
Bond 1998
Future
- -------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
13
<PAGE>
Chase Vista New York Tax Free Income Fund
as of August 31, 1998
(unaudited)
Fund Facts
<TABLE>
<S> <C> <C>
Objective Income exempt from federal and
New York state and city taxes*
Primary investments New York municipal bonds
Suggested investment time frame 3-5 years minimum
Market benchmark Lehman Municipal Bond Index
Lipper Funds category NY Tax Exempt Municipal Debt
Funds Average
Class A Class B
------- -------
Inception date 9/8/87 11/4/93
Newspaper symbol NY TF not listed
Net assets $111 Million $15 Million
Average maturity 20.8 years 20.8 years
Average duration 8.2 years 8.2 years
Average quality A/A A/A
</TABLE>
* A portion of the Fund's income may be subject to the Alternative Minimum Tax,
and some investors may be subject to certain state and local taxes.
Average Maturity/Quality
[Square Chart]
Average Maturity/Quality: Long/Med.
[End Square Chart]
Source: Morningstar
14
<PAGE>
Chase Vista New York Tax Free Income Fund
as of August 31, 1998
(unaudited)
How the Fund Performed
Chase Vista New York Tax Free Income Fund, which seeks to provide triple tax
exempt income through a portfolio of higher quality longer term municipal bonds,
had a total return of 9.03% for the year ended August 31, 1998. (Class A shares,
without a sales charge). This compares to a return of 8.27% for the Lipper New
York Tax Exempt Municipal Debt Funds Average and 8.65% for the unmanaged Lehman
Municipal Bond Index.
How the Fund Was Managed
Early in the period, management shortened the Fund's duration to take advantage
of relatively attractive valuations in the 15-year maturity range. As the period
progressed and the impact of the economic problems in Asia became a concern
among investors, management extended the Fund's duration in anticipation of
falling interest rates.
This strategy proved successful as interest rates tumbled sharply, particularly
in the final four months of the period. While the drop in interest rates fueled
higher bond prices, it also led to a sharp increase in new issuance, which kept
prices from rising even more.
Finally, the Fund also benefitted from its investments in New York City
obligations, which have performed well since receiving a credit upgrade last
February. The Fund's exposure to Puerto Rico general obligation bonds and U.S.
territorial paper as well as electric utility bonds also proved beneficial to
shareholders.
Where the Fund May Be Headed
Looking ahead, the New York calendar remains heavy, which should provide an
opportunity to purchase securities with attractive yields compared with other
tax-exempt bonds. As more supply emerges, we expect municipal/Treasury ratios to
increase.
Finally, if the current crisis in Asia remains a factor in the global economy,
we do not anticipate a significant increase in interest rates anytime soon.
Given this belief, we intend to maintain the Fund's above-average duration
compared to the benchmark in the months ahead.
15
<PAGE>
Chase Vista New York Tax Free Income Fund
as of August 31, 1998
(unaudited)
How Much of the Fund Was Invested
[Pie Chart]
Investments (98.2%)
Cash/Other (1.8%)
[End Pie Chart]
Average Annual Total Returns
This table shows the average annual total returns. This is where you can see the
Fund's short-term performance, which, as with the stock markets, tends to be
more volatile than the long-term trend.
<TABLE>
<CAPTION>
1 Year 5 Years 10 Years
------ ------- --------
<S> <C> <C> <C>
Class A Shares
Without Sales Charge 9.03% 5.54% 8.33%
With Sales Charge* 4.12% 4.57% 7.83%
Class B Shares
Without CDSC 8.27% 4.79% 7.95%
With CDSC** 3.27% 4.46% 7.95%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less than
their original cost.
The Fund is currently waiving fees. This voluntary waiver may be modified or
terminated at any time, which would reduce performance.
* The maximum sales charge for A shares is 4.50%.
** Assumes a 5% CDSC for the one year period, a 2% CDSC for the five year period
and a 0% CDSC for the ten year period.
+ The Fund commenced operations on 9/8/87. Class B Shares were introduced on
11/4/93. Investors should note that the information presented for B Shares prior
to their introduction is based upon historical expenses of the predecessor Class
A Shares, which are lower than the actual expenses of the B Shares.
Additionally, annualized figures have been restated to reflect the maximum
contingent deferred sales charge that applies to the Fund's B Shares.
16
<PAGE>
Chase Vista New York Tax Free Income Fund
as of August 31, 1998
(unaudited)
10-Year Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Vista New York Tax Free Income Fund compared to
its key benchmarks. This is where you see the Fund's long-term trend. This chart
is for illustrative purposes only.
[Mountain Chart]
<TABLE>
<CAPTION>
Lipper
Chase Vista New York
New York Lehman Tax Exempt
Tax Free Muni Bond Muni Debt
Income Fund Index Funds Avg.
<S> <C> <C> <C>
1988 9550 10000 10000
1989 10697 11098.1 11113.2
1990 11169.2 11811.2 11658.4
1991 12500.7 13204.5 13013.3
1992 14198 14681.2 14562.2
1993 16242.4 16421 16420.7
1994 16102 16444.9 16196.1
1995 17199.4 17903.6 17214.3
1996 17922.4 18839.5 17987.1
1997 19507.7 20585 19565.8
1998 21268.7 22365.8 21186.8
</TABLE>
[End Mountain Chart]
Source: Lipper Analytical Services, Inc. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less than
their original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
shares of the Chase Vista New York Tax Free Income Fund, the Lehman Municipal
Bond Index and the Lipper New York Tax Exempt Municipal Debt Funds Average from
August 31, 1988 to August 31, 1998. The performance of the Fund assumes
reinvestment of all dividends and capital gains and includes a 4.50% sales
charge. The performance of the average and the index does not include a sales
charge and has been adjusted to reflect investment of all dividends and capital
gains on securities included in the benchmark.
A portion of the Fund's income may be subject to the Alternative Minimum Tax,
and some investors may be subject to certain state and local taxes.
The Fund is currently waiving fees. This voluntary waiver may be modified or
terminated at any time, which would reduce performance. The unmanaged Lehman
Municipal Bond Index is a broad-based 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. An individual cannot
invest in the index.
The Lipper New York Tax Exempt Municipal Debt Funds Average represents the
average performance of a universe of 98 actively-managed New York tax-exempt
municipal bond mutual funds. Lipper is an independent mutual fund performance
monitor whose results are based on total return and do not reflect a sales
charge.
17
<PAGE>
Chase Vista New York Tax Free Income Fund
Portfolio of Investments August 31, 1998
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------------------
Long Term Municipal Bonds -- 94.8%
- -----------------------------------------------------------------------
<S> <C> <C>
$4,000,000 Long Island Power Authority, New
York, Electric Systems, Series A,
Insured, Rev., 5.50%, 12/01/13 $ 4,386,520
550,000 Monroe County, New York, IDA,
Public Improvement, Canal Ponds
Park, Series A, Rev., 7.00%, 06/15/13 605,435
2,480,000 Monroe County, New York, Public
Improvement, Series A, GO,
6.00%, 03/01/08 2,814,254
Nassau County, New York,
3,260,000 Series P, Insured, Prerefunded, GO,
6.40%, 11/01/04 3,740,491
3,665,000 Series P, Insured, Prerefunded, GO,
6.40%, 11/01/04 4,219,551
New York City IDA,
3,010,000 Brooklyn Navy Yard Cogeneration
Partners, Rev., 6.20%, 10/01/22 3,375,956
500,000 Civil Facility, College of
Mt. St. Vincent, Rev., +, 7.00%,
05/01/08 549,460
1,430,000 Civil Facility, New York Blood
Center, Inc., Prerefunded, Rev.,
7.20%, 05/01/04 1,650,620
1,500,000 Civil Facility, YMCA Greater New
York Project, Rev., 5.80%,
08/01/16 1,585,635
New York City, New York,
1,000,000 Series A, Insured, GO, 6.25%,
08/01/08 1,141,790
1,000,000 Series B, GO, 7.50%, 02/01/03 1,118,340
390,000 Series D, Escrowed to Maturity,
GO, 3.00%, 08/01/01 380,823
610,000 Series D, GO, 3.00%, 08/01/01 596,964
160,000 Series F, GO, 8.25%, 11/15/02 183,323
840,000 Series F, Prerefunded, GO, 8.25%,
11/15/01 962,449
5,000,000 Series J, GO, 5.35%, 08/01/12 5,218,500
</TABLE>
See notes to financial statements.
18
<PAGE>
Chase Vista New York Tax Free Income Fund
Portfolio of Investments August 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ---------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ---------------------------------------------------------------------
<S> <C> <C>
$5,000,000 New York City, New York,
Transitional Financing Authority,
Future Tax Secured, Series A, Rev.,
5.00%, 08/15/27 $ 4,909,800
New York State, Dorm Authority,
2,000,000 Fordham University, Rev., 5.00%,
07/01/28 1,972,400
5,000,000 Mental Health Services Facilities,
Series B, Insured, Rev., 5.00%,
02/15/28 4,909,100
2,550,000 Niagara Nursing Home, Insured,
Rev., 5.55%, 08/01/27 2,673,344
1,275,000 State University Educational
Facilities, Series A, Prerefunded,
Rev., 6.00%, 05/15/05 1,440,725
New York State, Environmental
Facilities Corp., Pollution Control,
State Water Revolving Fund,
3,000,000 New York City Municipal Water
Authority, Rev., 5.75%, 06/15/12 3,352,410
735,000 Series A, Insured, Rev., 7.00%,
06/15/09 802,017
1,500,000 Series A, Rev., 7.25%, 06/15/10 1,659,035
New York State, Housing Finance
Agency, Series A, Rev.
300,000 6.95%, 08/15/12 325,911
860,000 8.00%, 11/01/08 936,996
4,005,000 New York State, Local Government
Assistance Corp., Series A, Insured,
Rev., 5.25%, 04/01/16 4,241,736
New York State, Medical Care
Facilities Financing Authority,
745,000 Insured Mortgage, +, Rev., 7.88%,
08/15/20 813,883
375,000 Series 64, Rev., 8.00%, 02/15/28 383,805
1,000,000 New York State, Municipal Bond
Bank, Buffalo Special Project, Rev.,
6.88%, 03/15/06 1,104,980
</TABLE>
See notes to financial statements.
19
<PAGE>
Chase Vista New York Tax Free Income Fund
Portfolio of Investments August 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ---------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ---------------------------------------------------------------------
<S> <C> <C>
New York State, Thruway Authority,
Service Contract, Local Highway &
Bridges,
$4,615,000 Transportation Fund, Series C,
Insured, Rev., 5.25%, 04/01/10 $ 4,905,330
2,500,000 Transportation Fund, Series C,
Insured, Rev., 6.00%, 04/01/11 2,762,700
2,205,000 New York State, Urban Development
Corp., Center for Individual
Innovation, Rev., 5.50%, 01/01/13 2,354,014
5,000,000 Niagara, New York, Frontier
Transportation Authority, Greater
Buffalo International Airport,
Insured, +, Rev., 5.75%, 04/01/04 5,394,850
Port Authority of New York & New
Jersey,
5,000,000 Consolidated 93rd Series, Rev.,
6.13%, 06/01/2094 5,882,000
3,000,000 Special Obligation, 3rd Installment,
Special Project KIAC-4, Rev.,
7.00%, 10/01/07 3,407,760
2,500,000 Puerto Rico Commonwealth, GO,
5.00%, 07/01/27 2,462,275
5,000,000 Puerto Rico Commonwealth,
Highway & Transportation
Authority, Series A, Rev., 4.75%,
07/01/38 4,834,900
2,000,000 Puerto Rico Industrial Med &
Environmental Pollution Facilities
Financing Authority, Rev., 6.45%,
12/01/25 2,217,300
5,000,000 Rensselaer New York Municipal
Leasing Corp., Rensselaer County
Nursing Home Rev., +, 6.90%,
06/01/24 5,556,400
1,000,000 Triborough Bridge & Tunnel
Authority of New York, Special
Obligation, Series A, Insured, Rev.,
6.60%, 01/01/05 1,077,640
</TABLE>
See notes to financial statements.
20
<PAGE>
Chase Vista New York Tax Free Income Fund
Portfolio of Investments August 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- -----------------------------------------------------------------
<S> <C> <C>
$5,000,000 Virgin Islands, Public Finance
Authority, Series A, Rev., 5.50%,
10/01/22 $ 5,106,500
1,150,000 Virgin Islands, Public Finance
Authority, Series A, Prerefunded,
Rev., 7.25%, 10/01/02 1,317,014
1,000,000 Virgin Islands, Water & Power
Authority Electric System, Rev.,
5.30%, 07/01/18 1,008,680
1,000,000 Virgin Islands, Water & Power
Authority Electric System, Rev.,
5.30%, 07/01/21 1,006,040
Westchester County, New York IDA,
1,050,000 AGR Realty Co., Rev., 5.75%,
01/01/02 1,094,425
2,000,000 Resource Recovery, Resco Co.
Project, Series A, Rev., 5.70%,
07/01/08 2,169,360
1,150,000 Westchester County, New York, GO,
6.70%, 11/01/06 1,356,528
1,000,000 Western Nassau County, New York,
Water Authority Water
Systems,Insured, Rev., 5.50%,
05/01/16 1,057,530
2,000,000 Western Nassau County, New York,
Water Authority Water Systems,
Insured, Rev., 5.65%, 05/01/26 2,123,740
- -------------------------------------------------------------
Total Long Term Municipal Bonds
(Cost $112,212,450) 119,151,239
- -------------------------------------------------------------
Short Term Investments -- 3.9%
- -------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares
- -------------------------------------------------------------
<S> <C> <C>
Money Market Funds -- 3.9%
4,954,774 Provident New York Money Market
Fund
(Cost $4,954,774) 4,954,774
=============================================================
</TABLE>
See notes to financial statements.
21
<PAGE>
Chase Vista New York Tax Free Income Fund
Portfolio of Investments August 31, 1998 (continued)
<TABLE>
<CAPTION>
Shares
- -------------------------------------------------------------
<S> <C> <C>
Total Short Term Investments
(Cost $4,954,774) $ 4,954,774
- -------------------------------------------------------------
Total Investments -- 98.7%
(Cost $117,167,224) $124,106,013
- -------------------------------------------------------------
Short Municipal Futures
- -----------------------
</TABLE>
<TABLE>
<CAPTION>
Expiration Number Original Value at Unrealized
Description Date of Contracts Cost 08/31/98 Depreciation
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Municipal September 32 $3,965,742 $4,052,000 ($ 86,258)
Bond 1998
Future
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
22
<PAGE>
Chase Vista California Intermediate Tax Free Fund
as of August 31, 1998
(unaudited)
Fund Facts
<TABLE>
<S> <C>
Objective Income exempt from federal and
California state taxes*
Primary investments California municipal bonds
Suggested investment time frame 3-5 years minimum
Market benchmark Lehman Municipal Bond Index
Lehman California Intermediate
Municipal Bond Index
Lipper Funds category California Intermediate Municipal Debt
Funds Average
Class A
-------
Inception date 7/16/93
Newspaper symbol CA TF Int
Net assets $24 Million
Average maturity 9.7 years
Average duration 6.2 years
Average quality Aa/AA
</TABLE>
* A portion of the Fund's income may be subject to the Alternative Minimum Tax,
and some investors may be subject to certain state and local taxes.
Average Maturity/Quality
[Square Chart]
Average Maturity/Quality: Int./High
[End Square Chart]
Source: Morningstar
23
<PAGE>
Chase Vista California Intermediate Tax Free Fund
as of August 31, 1998
(unaudited)
How the Fund Performed
Chase Vista California Intermediate Tax Free Fund, which seeks to provide double
tax-exempt income through a portfolio of higher-quality, intermediate-term
municipal bonds, had a total return of 7.81% for the year ended August 31, 1998.
(Class A Shares without a sales charge). This compares to a return of 6.79% for
the Lipper California Intermediate Municipal Debt Funds Average and 7.56% for
the Lehman California Municipal Bond Index.
How the Fund Was Managed
Management's decision to extend the Fund's average duration proved rewarding to
shareholders as interest rates trended lower. The yield on the 30-year Treasury
bond, the key benchmark of long-term interest rate activity, declined from 6.61%
at the start of the period to a historic low of 5.26% on August 31, 1998.
Management's decision to extend the Fund's duration was motivated by two primary
factors: concerns that the currency and economic crisis in Asia and Russia would
have a spillover effect on other global economies and the growing lack of supply
in California bonds.
The Fund's investment in non-callable bonds also proved beneficial. This enabled
us to avoid having to reinvest proceeds from bonds called prior to maturity at
lower interest rates. We continued to upgrade credit quality during the period.
Where the Fund May Be Headed
Looking ahead, our outlook remains positive. We expect a further slowdown in
economic activity (and further pressure on interest rates) due to the degree of
the financial meltdown in Asia and Russia and its subsequent impact on many
markets around the world.
Additionally, high-quality California bonds with relatively attractive yields
remain in short supply, which should help raise their values going forward.
Given this outlook, management plans to maintain the Fund's slightly
higher-than-average duration in the months ahead.
24
<PAGE>
Chase Vista California Intermediate Tax Free Fund
as of August 31, 1998
(unaudited)
How Much of the Fund Was Invested
[Pie Chart]
Investments (98.6%)
Cash/Other (1.4%)
[End Pie Chart]
Average Annual Total Returns
This table shows the average annual total returns. This is where you can see the
Fund's short-term performance, which, as with the stock markets, tends to be
more volatile than the long-term trend.
<TABLE>
<CAPTION>
Since
1 Year 5 Years Inception (7/16/93)
----- ------- -------------------
<S> <C> <C> <C>
Class A Shares
Without Sales Charge 7.81% 5.63% 5.69%
With Sales Charge* 2.96% 4.67% 4.75%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less
than their original cost.
*The maximum sales charge for A shares is 4.50%.
The Fund is currently waiving certain fees. This voluntary waiver may be
modified or terminated at any time, which would reduce performance.
25
<PAGE>
Chase Vista California Intermediate Tax Free Fund
as of August 31, 1998
(unaudited)
5-Year Performance
This chart shows what the long-term growth would have been of a hypothetical
$10,000 investment in the Chase Vista California Intermediate Tax Free Fund
compared to its key benchmarks. This is where you see the Fund's long-term
trend. This chart is for illustrative purposes only.
[Mountain Chart]
<TABLE>
<CAPTION>
Lehman Lipper
Chase Vista California California
California Lehman Intermediate Intermediate
Tax Free Muni Bond Muni Bond Muni Debt
Income Fund Index Index Funds Avg.
<S> <C> <C> <C> <C>
1993 9550 10000 10000 10000
1994 9763.45 10191.8 10311.7 10253.1
1995 10500.9 11095.8 11225.4 10911.1
1996 11025.5 11675.8 11714.7 11379.9
1997 11848.1 12757.6 12716.4 12215.7
1998 12773.9 13861.3 13678.5 13051.6
</TABLE>
[End Mountain Chart]
Source: Lipper Analytical Services, Inc. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate with
market conditions. When shares are redeemed, they may be worth more or less than
their original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
shares of the Chase Vista California Intermediate Tax Free Fund, the Lehman
Municipal Bond Index, the Lehman California Intermediate Municipal Bond Index
and the Lipper California Intermediate Municipal Debt Funds Average from July
16, 1993 to August 31, 1998. The Fund's performance includes a 4.50% sales
charge and assumes the reinvestment of all dividends and capital gains. The
performance of the average and the index 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.
A portion of the Fund's income may be subject to the Alternative Minimum Tax,
and some investors may be subject to certain state and local taxes. The Fund is
currently waiving fees. This voluntary waiver may be modified or terminated at
any time, which would reduce performance.
The unmanaged Lehman Municipal Bond Index is a broad-based 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. An individual cannot invest in the index.
The unmanaged Lehman California Intermediate Municipal Bond Index is a total
return performance benchmark for the California investment grade tax exempt bond
market. Bonds included in the Lehman California Intermediate Municipal Bond
Index are representative of the market. An individual cannot invest in the
index.
The Lipper California Intermediate Municipal Debt Funds Average represents the
average performance of a universe of 34 actively-managed California tax-exempt
municipal bond funds. Lipper is an independent mutual fund performance monitor
whose results are based on total return and do not reflect a sales charge.
26
<PAGE>
Chase Vista California Intermediate Tax Free Fund
Portfolio of Investments August 31, 1998
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ----------------------------------------------------------------------
Long Term Municipal Bonds -- 88.5%
- ----------------------------------------------------------------------
<S> <C> <C>
$1,500,000 California State, Insured, +, GO,
6.50%, 02/01/07 $ 1,748,205
1,400,000 California State, Insured, +, GO,
6.20%, 09/01/05 1,589,182
250,000 California State, Public Works Board,
Lease Revenue, Series A, Rev.,
6.00%, 09/01/01 265,675
1,000,000 Contra Costa California Transition
Authority, Series A, Insured, Rev.,
6.00%, 03/01/08 1,139,810
1,850,000 Contra Costa California Water
District, Series G, Insured, Rev.,
5.75%, 10/01/14 2,002,089
1,995,000 Fallbrook California, United High
School District, San Diego County,
Insured, GO, t, 5.38%, 09/01/12 2,161,902
200,000 Irvine Ranch Water District, Issue 11,
Rev., 7.60%, 08/15/99 200,348
1,010,000 La Mesa-Spring Valley, California,
School Districts, Capital Projects
Refinancing, Insured, COP, 5.50%,
09/01/11 1,105,465
1,000,000 Los Angeles County, California,
Transition Community, Sales Tax,
Proposition C, 2nd Series, Series A,
Insured, Rev., 5.88%, 07/01/02 1,074,790
375,000 Los Angeles County, California,
Union School District, Series A,
Insured, GO, 6.00%, 07/01/15 431,006
1,000,000 Northern California, Power Agency,
Public Power, Geothermal Project,
Series A, Insured, Rev., 5.80%,
07/01/09 1,125,980
1,000,000 Redwood City, California, Elementary
School District, Insured, GO,
5.00%, 08/01/16 1,029,890
</TABLE>
See notes to financial statements.
27
<PAGE>
Chase Vista California Intermediate Tax Free Fund
Portfolio of Investments August 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ---------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ---------------------------------------------------------------------
<S> <C> <C>
$ 1,000,000 Riverside County, California Trans.
Common Sales Tax Rev., Series A,
Insured, +, Rev., 6.00%, 06/01/08 $ 1,142,720
1,000,000 San Francisco California, City &
County Airport Community
International Airport, 2nd Series,
Issue 18A, Insured, Rev., 6.00%,
05/01/04 1,099,380
1,000,000 Santa Clara County, California,
Financing Authority, Lease, Series
A, Insured, Rev., 5.75%, 11/15/13 1,122,380
1,200,000 South Orange County Public
Financing Authority, Special Tax,
Senior Lien, Series A, Insured,
Special Tax, 6.20%, 09/01/13 1,333,632
1,000,000 University of California, UC Medical
Center, Insured, Rev., 10.00%,
07/01/06 1,383,650
705,000 Valley Health Systems California
Hospital, Improvement Project,
Series A, Rev., 5.25%, 05/15/99 711,888
1,000,000 Victor Valley California, High School
District Capital Appreciation Bond,
Insured, GO, 0.00%, 09/01/10 576,700
-----------
Total Long Term Municipal Bonds
(Cost $20,149,300) 21,244,692
- -----------------------------------------------------------------
Short Term Investments -- 10.5%
- -----------------------------------------------------------------
Floating Rate Demand Notes -- 8.3%
1,000,000 California State, Economic
Development Financing Authority,
California Independent Systems
Project, Series A, Rev., 2.70%,
09/03/98 1,000,000
</TABLE>
See notes to financial statements.
28
<PAGE>
Chase Vista California Intermediate Tax Free Fund
Portfolio of Investments August 31, 1998 (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------------
Short Term Investments -- (continued)
- -----------------------------------------------------------------
<S> <C> <C>
$ 1,000,000 California State, Pollution Control
Financing PCR, Pacific Gas &
Electric, Series F, Rev., 3.50%,
09/03/98 $1,000,000
----------
Total Floating Rate Demand Notes
(Cost $2,000,000) 2,000,000
=================================================================
</TABLE>
<TABLE>
<CAPTION>
Shares
<S> <C> <C>
Money Market Fund -- 2.2%
518,565 Provident California Money Market
Fund
(Cost $518,565) 518,565
- ---------------------------------------------------------------
Total Short Term Investments
(Cost $2,518,565) 2,518,565
- ---------------------------------------------------------------
Total Investments -- 99.0%
(Cost $22,667,865) $23,763,257
- ---------------------------------------------------------------
Short Municipal Futures
- -----------------------
</TABLE>
<TABLE>
<CAPTION>
Expiration Number Original Value at Unrealized
Description Date of Contracts Cost 08/31/98 Depreciation
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Municipal September 7 $868,164 $886,375 ($18,211)
Bond 1998
Future
- -----------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
Abbreviation Definition
+ --All or a portion of this security is pledged.
COP --Certificate of Participation
Dorm --Dormitory
FRDN --Floating Rate Demand Note:The maturity date shown is the
next interest reset date; the rate shown is the rate in
effect at August 31, 1998.
GO --General Obligation
IDA --Industrial Development Authority
IDR --Industrial Development Revenue
Rev. --Revenue Bond
Prerefunded --The maturity date shown is the date of the prerefunded call.
</TABLE>
See notes to financial statements.
29
<PAGE>
Chase Vista Funds
Statement of Assets and Liabilities August 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
California
New York Intermediate
Tax Free Tax Free Tax Free
Income Fund Income Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value (Note 1) $78,301,382 $124,106,013 $23,763,257
Cash ................................... 27,760 1 --
Other assets ........................... 889 1,498 288
Receivables:
Investment securities sold ............ 5,663,792 -- --
Interest .............................. 1,015,515 1,715,355 345,098
Fund shares sold ...................... 120,273 226,590 --
----------- ------------ -----------
Total Assets ........................ 85,129,611 126,049,457 24,108,643
----------- ------------ -----------
LIABILITIES:
Payables
Investment securities purchased ....... 8,299,667 -- --
Fund shares redeemed .................. 256,544 134,603 20,000
Dividends ............................. 92,661 81,120 37,097
Variation margin ...................... 9,375 15,000 3,281
Accrued liabilities: (Note 2)
Investment advisory fees .............. 6,407 20,863 --
Administration fees ................... 9,611 15,647 2,014
Shareholder servicing fees ............ 8,836 13,198 --
Distribution fees ..................... 9,579 9,234 --
Custody fees .......................... 13,405 18,631 11,646
Other ................................. 47,791 67,914 38,331
----------- ------------ -----------
Total Liabilities ................... 8,753,876 376,210 112,369
----------- ------------ -----------
NET ASSETS:
Paid in capital ........................ 72,808,318 117,811,817 22,415,863
Accumulated undistributed net
investment income ..................... (97,364) (55,183) 189,080
Accumulated net realized gain (loss)
on investment transactions ............ (310,966) 1,064,082 314,150
Net unrealized appreciation of
investments and futures ............... 3,975,747 6,852,531 1,077,181
----------- ------------ -----------
Net Assets: ............................ $76,375,735 $125,673,247 $23,996,274
=========== ============ ===========
Class A Shares ........................ $60,960,718 $110,877,188 $23,996,274
Class B Shares ........................ $15,415,017 $ 14,796,059 $ --
Shares of beneficial interest
outstanding ($.001 par value;
unlimited number of shares
authorized) .............................
Class A Shares ........................ 4,730,240 9,100,310 2,331,985
Class B Shares ........................ 1,202,548 1,217,227 --
Class A:
Net asset value and redemption
price per share (net assets/shares
outstanding) .......................... $ 12.89 $ 12.18 $ 10.29
Maximum offering price per share
(net asset value per share/95.5%) $ 13.50 $ 12.75 $ 10.77
Class B:
Net asset value and maximum
offering price per share (net
assets/shares outstanding) ............ $ 12.82 $ 12.16 $ --
=========== ============ ===========
Cost of investments .................... $74,271,722 $117,167,224 $22,667,865
=========== ============ ===========
</TABLE>
See notes to financial statements.
30
<PAGE>
Chase Vista Funds
Statement of Operations For the year ended August 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
California
New York Intermediate
Tax Free Tax Free Tax Free
Income Fund Income Fund Fund
------------- ------------- -------------
<S> <C> <C> <C>
INTEREST INCOME: (Note 1C) .............. $3,952,851 $5,723,338 $1,199,803
---------- ---------- ----------
EXPENSES: (Note 2)
Investment advisory fees .............. 225,980 322,126 72,053
Administration fees ................... 112,990 161,063 36,026
Shareholder servicing fees ............ 188,317 268,439 60,045
Distribution fees ..................... 259,619 338,977 60,044
Custodian fees ........................ 68,310 70,949 43,443
Printing and postage .................. 22,438 24,986 9,974
Professional fees ..................... 21,411 27,357 23,419
Registration costs .................... 33,314 -- 1,217
Transfer agent fees ................... 122,622 147,887 36,027
Trustees fees and expenses ............ 3,766 5,369 1,201
Other ................................. 237 8,223 4,428
---------- ---------- ----------
Total expenses ...................... 1,059,004 1,375,376 347,877
Less amounts waived (Note 2E) ......... 335,939 401,809 203,770
---------- ---------- ----------
Net expenses ........................ 723,065 973,567 144,107
---------- ---------- ----------
Net investment income .............. 3,229,786 4,749,771 1,055,696
---------- ---------- ----------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on:
Investments .......................... 2,012,394 1,995,448 321,395
Futures transactions ................. (291,864) (551,577) (2,940)
Change in net unrealized
appreciation on investments
and futures .......................... 1,732,323 3,152,350 453,020
---------- ---------- ----------
Net realized and unrealized gain
on investments and futures
transactions ......................... 3,452,853 4,596,221 771,475
---------- ---------- ----------
Net increase in net assets from
operations ........................... $6,682,639 $9,345,992 $1,827,171
========== ========== ==========
</TABLE>
See notes to financial statements.
31
<PAGE>
Chase Vista Funds
Statement of Changes in Net Assets For the year ended August 31,
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Tax Free
Income Fund
--------------------------------
1998 1997
--------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income ............................................ $ 3,229,786 $ 3,844,936
Net realized gain on investments and futures transactions ........ 1,720,530 2,059,306
Change in net unrealized appreciation on investments and
futures ......................................................... 1,732,323 1,329,149
------------ --------------
Increase in net assets from operations ........................... 6,682,639 7,233,391
------------ --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income: ...........................................
Class A ......................................................... (2,722,932) (3,281,406)
Class B ......................................................... (510,149) (564,009)
Net realized gain on investment transactions: ....................
Class A ......................................................... -- --
Class B ......................................................... -- --
------------ --------------
Total dividends and distributions .............................. (3,233,081) (3,845,415)
------------ --------------
Increase (decrease) from capital share transactions (Note 5) ..... (3,412,737) (11,857,780)
------------ --------------
Total increase (decrease) ....................................... 36,821 (8,469,804)
NET ASSETS:
Beginning of period ............................................. 76,338,914 84,808,718
------------ --------------
End of period ................................................... $ 76,375,735 $ 76,338,914
============ ==============
<CAPTION>
California
New York Intermediate
Tax Free Tax Free
Income Fund Fund
-------------------------------- ---------------
1998 1997 1998
--------------- ---------------- ---------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income ............................................ $ 4,749,771 $ 4,988,170 $ 1,055,696
Net realized gain on investments and futures transactions ........ 1,443,871 1,462,096 318,455
Change in net unrealized appreciation on investments and
futures ......................................................... 3,152,350 2,526,782 453,020
------------ -------------- ------------
Increase in net assets from operations ........................... 9,345,992 8,977,048 1,827,171
------------ -------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income: ...........................................
Class A ......................................................... (4,223,224) (4,449,039) (1,053,996)
Class B ......................................................... (513,474) (507,112) --
Net realized gain on investment transactions: ....................
Class A ......................................................... (847,131) (190,592) (237,743)
Class B ......................................................... (137,119) (26,031) --
------------ -------------- ------------
Total dividends and distributions .............................. (5,720,948) (5,172,774) (1,291,739)
------------ -------------- ------------
Increase (decrease) from capital share transactions (Note 5) ..... 25,339,313 (16,854,581) (2,064,404)
------------ -------------- ------------
Total increase (decrease) ....................................... 28,964,357 (13,050,307) (1,528,972)
NET ASSETS:
Beginning of period ............................................. 96,708,890 109,759,197 25,525,246
------------ -------------- ------------
End of period ................................................... $125,673,247 $ 96,708,890 $ 23,996,274
============ ============== ============
<CAPTION>
California
Intermediate
Tax Free
Fund
---------------
1997
---------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income ............................................ $ 1,225,622
Net realized gain on investments and futures transactions ........ 233,438
Change in net unrealized appreciation on investments and
futures ......................................................... 451,860
------------
Increase in net assets from operations ........................... 1,910,920
------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income: ...........................................
Class A ......................................................... (990,238)
Class B ......................................................... --
Net realized gain on investment transactions: ....................
Class A ......................................................... (224,564)
Class B ......................................................... --
------------
Total dividends and distributions .............................. (1,214,802)
------------
Increase (decrease) from capital share transactions (Note 5) ..... (3,468,572)
------------
Total increase (decrease) ....................................... (2,772,454)
NET ASSETS:
Beginning of period ............................................. 28,297,700
------------
End of period ................................................... $ 25,525,246
============
</TABLE>
See notes to financial statements.
32
<PAGE>
Chase Vista 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. Effective March 16, 1998, the
Vista Family of Mutual Funds changed it's name to the Chase Vista Funds. Chase
Vista Tax Free income Fund ("CVTFI"), Chase Vista New York Tax Free Income Fund
("CVNYTFI"), and Chase Vista California Intermediate Tax Free Fund ("CVCITF")
(collectively the "Funds"), are three separate portfolios of the Trust.
The CVTFI and CVNYTFI Funds offer two classes of shares, referred to as Class A
Shares and Class B Shares. 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:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
A. Valuation of investments -- 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. If the seller of a repurchase agreement defaults and the value of the
collateral declines, or if the seller enters into an insolvency proceeding,
realization of the collateral 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 (from) 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. The Funds invest in U.S. Treasury and/or
Municipal Bond futures contracts as a hedge to modify the duration of the
portfolio holdings, while maintaining a tax exempt income stream.
33
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
As of August 31, 1998, the Funds held futures positions as listed on the
respective Portfolio of Investments.
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 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. Distributions to shareholders -- Dividends are declared daily and
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 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.
G. 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 0.15% 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 receives a fee.
The fee is computed daily and paid monthly at an annual rate of 0.25% of the
average daily net assets of each Fund.
Chase and certain affiliates are the only Shareholder Servicing Agents. The
Shareholder Servicing Agents voluntarily waived all or a portion of their
fees as outlined in Note 2.E. below.
34
<PAGE>
Chase Vista 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, computed daily and paid
monthly, 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 CVTFI and CVNYTFI 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 year ended August 31, 1998, the Adviser,
Administrator, Shareholder Servicing Agents and Distributor voluntarily
waived fees for each of the Funds as follows:
<TABLE>
<CAPTION>
CVTFI CVNYTFI CVCITF
-------- --------- ---------
<S> <C> <C> <C>
Investment Advisory ............ $128,813 $ 79,555 $ 69,045
Administration ................. -- -- 18,591
Shareholder Servicing .......... 106,509 159,478 60,045
Distribution ................... 100,617 162,776 56,089
-------- -------- --------
$335,939 $401,809 $203,770
======== ======== ========
</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 -- The cost of purchases and proceeds from sales of
investments (excluding short-term investments) were as follows:
<TABLE>
<CAPTION>
CVTFI CVNYTFI CVCITF
------------ ------------ -----------
<S> <C> <C> <C>
Purchases ......... $126,874,849 $114,291,085 $10,069,791
Sales ............. 131,995,095 93,903,117 11,662,171
</TABLE>
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, 1998, are as follows:
<TABLE>
<CAPTION>
CVTFI CVNYTFI CVCITF
----------- ------------ -----------
<S> <C> <C> <C>
Aggregate cost ........................ $74,271,722 $117,167,224 $22,667,865
----------- ------------ -----------
Gross unrealized appreciation ........ . 4,034,199 6,938,789 1,095,392
Gross unrealized depreciation ......... (4,540) -- --
----------- ------------ -----------
Net unrealized appreciation/
(depreciation) ....................... $4,029,659 $ 6,938,789 $ 1,095,392
=========== ============ ===========
</TABLE>
35
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
At August 31, 1998, Tax Free Income Fund had a net capital loss carryover of
approximately $364,877 which will be available through August 31, 2003 to offset
future capital gains to the extent provided by regulations. During the fiscal
year ended August 31, 1998, CVTFI utilized capital loss carryovers of
approximately $1,667,000, 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>
Tax Free Income Fund
-------------------------------------------------------------
Class A
-------------------------------------------------------------
Year Ended August 31,
-------------------------------------------------------------
1998 1997
---------------------------- ----------------------------
Amount Shares Amount Shares
------------ ---------- ------------ -----------
<S> <C> <C> <C> <C>
Shares sold ........................ $ 38,661,303 3,058,581 $ 31,436,949 2,592,275
Shares issued in reinvestment
of distributions ................. 1,778,424 140,477 2,112,003 173,448
Shares redeemed .................... (45,006,803) (3,560,463) (44,098,460) (3,624,885)
------------ ---------- ------------ ----------
Net increase (decrease) in
Trust shares outstanding ......... $ (4,567,076) (361,405) $(10,549,508) (859,162)
============ ========== ============ ==========
</TABLE>
<TABLE>
<CAPTION>
Tax Free Income Fund
---------------------------------------------------------------
Class B
---------------------------------------------------------------
Year Ended August 31,
---------------------------------------------------------------
1998 1997
------------------------------- -----------------------------
Amount Shares Amount Shares
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Shares sold ........................ $3,265,302 259,396 $ 3,749,421 311,222
Shares issued in reinvestment
of distributions ................. 361,911 28,751 402,547 33,284
Shares redeemed .................... (2,472,874) (196,924) (5,460,240) (452,103)
---------- -------- ----------- --------
Net increase (decrease) in
Trust shares outstanding ......... $1,154,339 91,223 $(1,308,272) (107,597)
========== ======== =========== ========
</TABLE>
<TABLE>
<CAPTION>
New York Tax Free Income Fund
---------------------------------------------------------------
Class A
---------------------------------------------------------------
Year Ended August 31,
---------------------------------------------------------------
1998 1997
------------------------------ ------------------------------
Amount Shares Amount Shares
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
Shares sold ........................ $ 45,436,533 3,787,138 $ 17,264,175 1,483,392
Shares issued in reinvestment
of distributions ................. 4,132,506 343,672 3,617,170 310,254
Shares redeemed .................... (25,061,227) (2,084,277) (37,063,699) (3,179,838)
------------- ---------- ------------ ----------
Net increase (decrease) in
Trust shares outstanding ......... $ 24,507,812 2,046,533 $(16,182,354) (1,386,192)
============ ========== ============ ==========
</TABLE>
36
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
New York Tax Free Income Fund
--------------------------------------------------------------
Class B
--------------------------------------------------------------
Year Ended August 31,
--------------------------------------------------------------
1998 1997
----------------------------- ----------------------------
Amount Shares Amount Shares
----------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
Shares sold ........................ $2,898,301 242,047 $2,559,149 221,319
Shares issued in reinvestment
of distributions ................. 498,497 41,571 407,098 35,058
Shares redeemed .................... (2,565,297) (214,046) (3,638,474) (313,983)
---------- -------- ---------- --------
Net increase (decrease) in
Trust shares outstanding ......... $ 831,501 69,572 $ (672,227) (57,606)
========== ======== ========== ========
</TABLE>
<TABLE>
<CAPTION>
California Intermediate Tax Free Fund
---------------------------------------------------------------
Year Ended August 31,
---------------------------------------------------------------
1998 1997
----------------------------- -----------------------------
Amount Shares Amount Shares
------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
Shares sold ........................ $ 2,221,587 219,375 $ 884,434 88,861
Shares issued in reinvestment
of distributions ................. 563,768 55,491 686,979 68,858
Shares redeemed .................... (4,849,759) (478,036) (5,039,985) (506,995)
----------- -------- ----------- --------
Net increase (decrease) in
Trust shares outstanding ......... $(2,064,404) (203,170) $(3,468,572) (349,276)
=========== ======== =========== ========
</TABLE>
6. Concentration of Credit Risk -- CVTFI, CVNYTFI and CVCITF 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, CVNYTFI and CVCITF primarily investing in issuers in the States of
New York and California, respectively. As of August 31, 1998, TFI invested
approximately 17.5% of its assets in issuers in New York State. The issuer's
abilities to meet their obligations may be affected by economic or political
developments in a specific state or region.
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, 1998, included in
Trustees Fees and Expenses in the Statement of Operations, and accrued pension
liability included in other accrued liabilities in the Statement of Assets and
Liabilities were as follows:
<TABLE>
<CAPTION>
Accrued
Pension Pension
Expenses Liability
---------- ----------
<S> <C> <C>
CVTFI ........... $1,529 $6,324
CVNYTFI ......... 2,031 8,325
CVCITF .......... 495 2,066
</TABLE>
37
<PAGE>
Chase Vista Funds
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Tax Free Income Fund
-----------------------------------------------
Class A
-----------------------------------------------
Year Ended August 31,
-----------------------------------------------
1998 1997 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ............................. $ 12.32 $ 11.84 $ 11.85 $ 11.70
------- ------- ------- -------
Income from Investment Operations:
Net Investment Income .......................................... 0.562 0.579 0.580 0.585
Net Gains or Losses in Securities (both realized and unrealized) 0.572 0.484 (0.007) 0.147
------- ------- ------- -------
Total from Investment Operations ............................... 1.134 1.063 0.573 0.732
------- ------- ------- -------
Less Distributions:
Dividends from Net Investment Income ........................... 0.564 0.583 0.583 0.582
Distributions from Capital Gains ............................... -- -- -- --
------- ------- ------- -------
Total Distributions ............................................ 0.564 0.583 0.583 0.582
------- ------- ------- -------
Net Asset Value, End of Period ................................... $ 12.89 $ 12.32 $ 11.84 $ 11.85
======= ======= ======= =======
Total Return (1) ................................................. 9.38% 9.14% 4.88% 6.53%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) .......................... $60,961 $62,729 $70,480 $88,783
Ratios to Average Net Assets#:
Expenses ........................................................ 0.80% 0.90% 0.90% 0.85%
Net Investment Income ........................................... 4.44% 4.78% 4.83% 5.07%
Expenses Without Waivers and Assumption of Expenses ............. 1.31% 1.29% 1.46% 1.47%
Net Investment Income Without Waivers and Assumption
of Expenses .................................................... 3.93% 4.39% 4.27% 4.45%
Portfolio turnover rate .......................................... 172% 147% 210% 233%
<CAPTION>
Tax Free Income
Fund
----------------
Class A
---------------
11/1/93
Through
8/31/94++
--------
<S> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ............................. $ 12.70
-------
Income from Investment Operations:
Net Investment Income .......................................... 0.475
Net Gains or Losses in Securities (both realized and unrealized) (0.847)
--------
Total from Investment Operations ............................... (0.372)
--------
Less Distributions:
Dividends from Net Investment Income ........................... 0.475
Distributions from Capital Gains ............................... 0.153
--------
Total Distributions ............................................ 0.628
--------
Net Asset Value, End of Period ................................... $ 11.70
========
Total Return (1) ................................................. (2.99%)
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) .......................... $98,054
Ratios to Average Net Assets#:
Expenses ........................................................ 0.58%
Net Investment Income ........................................... 4.75%
Expenses Without Waivers and Assumption of Expenses ............. 1.29%
Net Investment Income Without Waivers and Assumption
of Expenses .................................................... 4.04%
Portfolio turnover rate .......................................... 258%
<CAPTION>
Tax Free Income Fund
------------------------------------------------
Class B
------------------------------------------------
Year Ended August 31,
------------------------------------------------
<S> <C> <C> <C> <C>
1998 1997 1996 1995
----- ----- ----- -----
Per Share Operating Performance
Net Asset Value, Beginning of Period ............................. $ 12.25 $ 11.76 $ 11.77 $ 11.65
------- ------- ------- -------
Income from Investment Operations:
Net Investment Income .......................................... 0.446 0.484 0.486 0.498
Net Gains or Losses in Securities (both realized and unrealized) 0.573 0.478 (0.006) 0.140
------- ------- ------- -------
Total from Investment Operations ............................... 1.019 0.962 0.480 0.638
------- ------- ------- -------
Less Distributions:
Dividends from Net Investment Income ........................... 0.450 0.472 0.490 0.518
Distributions from Capital Gains ............................... -- -- -- --
------- ------- ------- -------
Total Distributions ............................................ 0.450 0.472 0.490 0.518
------- ------- ------- -------
Net Asset Value, End of Period ................................... $ 12.82 $ 12.25 $ 11.76 $ 11.77
======= ======= ======= =======
Total Return (1) ................................................. 8.45% 8.30% 4.10% 5.70%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) .......................... $15,415 $13,610 $14,329 $14,265
Ratios to Average Net Assets#:
Expenses ........................................................ 1.64% 1.64% 1.65% 1.61%
Net Investment Income ........................................... 3.60% 4.04% 4.08% 4.31%
Expenses Without Waivers and Assumption of Expenses ............. 1.81% 1.79% 1.95% 1.97%
Net Investment Income Without Waivers and Assumption
of Expenses .................................................... 3.43% 3.89% 3.78% 3.95%
Portfolio turnover rate .......................................... 172% 147% 210% 233%
<CAPTION>
Tax Free Income Fund
--------------------
Class B
-------------------
11/14/93*
Through
8/31/94++
--------
<S> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ............................. $ 12.51
-------
Income from Investment Operations:
Net Investment Income .......................................... 0.423
Net Gains or Losses in Securities (both realized and unrealized) (0.707)
--------
Total from Investment Operations ............................... (0.284)
--------
Less Distributions:
Dividends from Net Investment Income ........................... 0.423
Distributions from Capital Gains ............................... 0.153
--------
Total Distributions ............................................ 0.576
--------
Net Asset Value, End of Period ................................... $ 11.65
========
Total Return (1) ................................................. (2.35%)
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) .......................... $11,652
Ratios to Average Net Assets#:
Expenses ........................................................ 1.47%
Net Investment Income ........................................... 3.95%
Expenses Without Waivers and Assumption of Expenses ............. 1.81%
Net Investment Income Without Waivers and Assumption
of Expenses .................................................... 3.61%
Portfolio turnover rate .......................................... 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 the Fund changed its fiscal year-end from October 31 to August 31.
38
See notes to financial statements.
<PAGE>
Chase Vista Funds
Financial Highlights (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
New York Tax Free Income Fund
-------------------------------------------------
Class A
-------------------------------------------------
Year Ended August 31,
-------------------------------------------------
<S> <C> <C> <C> <C>
1998 1997 1996 1995
---- ---- ---- ----
Per Share Operating Performance
Net Asset Value, Beginning of Period ............................. $ 11.80 $ 11.39 $ 11.47 $ 11.30
-------- ------- -------- --------
Income from Investment Operations:
Net Investment Income .......................................... 0.544 0.555 0.555 0.570
Net Gains or Losses on Securities (both realized and unrealized) 0.497 0.432 (0.077) 0.167
-------- ------- -------- --------
Total from Investment Operations ............................... 1.041 0.987 0.478 0.737
-------- ------- -------- --------
Less Distributions:
Dividends from Net Investment Income ........................... 0.544 0.554 0.558 0.567
Distributions from Capital Gains ............................... 0.117 0.023 -- --
-------- ------- -------- --------
Total Distributions ............................................ 0.661 0.577 0.558 0.567
-------- ------- -------- --------
Net Asset Value, End of Period ................................... $ 12.18 $ 11.80 $ 11.39 $ 11.47
======== ======= ======== ========
Total Return (1) ................................................. 9.03% 8.85% 4.20% 6.82%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) .......................... $110,877 $83,208 $96,102 $104,168
Ratios to Average Net Assets#:
Expenses ........................................................ 0.79% 0.90% 0.90% 0.85%
Net Investment Income ........................................... 4.52% 4.77% 4.76% 5.11%
Expenses Without Waivers and Assumption of Expenses ............. 1.21% 1.18% 1.27% 1.37%
Net Investment Income Without Waivers and Assumption
of Expenses .................................................... 4.10% 4.49% 4.39% 4.59%
Portfolio turnover rate .......................................... 91% 107% 156% 122%
<CAPTION>
New York Tax Free
Income Fund
----------------
Class A
---------------
11/1/93
Through
8/31/94++
-------
<S> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ............................. $ 12.27
--------
Income from Investment Operations:
Net Investment Income .......................................... 0.473
Net Gains or Losses on Securities (both realized and unrealized) (0.688)
--------
Total from Investment Operations ............................... (0.215)
--------
Less Distributions:
Dividends from Net Investment Income ........................... 0.472
Distributions from Capital Gains ............................... 0.283
--------
Total Distributions ............................................ 0.755
--------
Net Asset Value, End of Period ................................... $ 11.30
========
Total Return (1) ................................................. (1.81%)
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) .......................... $103,113
Ratios to Average Net Assets#:
Expenses ........................................................ 0.76%
Net Investment Income ........................................... 4.89%
Expenses Without Waivers and Assumption of Expenses ............. 1.25%
Net Investment Income Without Waivers and Assumption
of Expenses .................................................... 4.40%
Portfolio turnover rate .......................................... 162%
<CAPTION>
New York Tax Free Income Fund
----------------------------------------------------
Class B
---------------------------------------------------
Year Ended August 31,
---------------------------------------------------
<S> <C> <C> <C> <C>
1998 1997 1996 1995
----- ----- ----- -----
Per Share Operating Performance
Net Asset Value, Beginning of Period ............................. $ 11.76 $ 11.33 $ 11.41 $ 11.27
-------- -------- --------- --------
Income from Investment Operations:
Net Investment Income .......................................... 0.443 0.465 0.469 0.485
Net Gains or Losses on Securities (both realized and unrealized) 0.510 0.430 (0.086) 0.162
-------- -------- --------- --------
Total from Investment Operations ............................... 0.953 0.895 0.383 0.647
-------- -------- --------- --------
Less Distributions:
Dividends from Net Investment Income ........................... 0.436 0.442 0.463 0.507
Distributions from Capital Gains ............................... 0.117 0.023 -- --
-------- -------- --------- --------
Total Distributions ............................................ 0.553 0.465 0.463 0.507
-------- -------- --------- --------
Net Asset Value, End of Period ................................... $ 12.16 $ 11.76 $ 11.33 $ 11.41
======== ======== ========= ========
Total Return (1) ................................................. 8.27% 8.03% 3.46% 5.99%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) .......................... $ 14,796 $ 13,501 $ 13,667 $ 10,633
Ratios to Average Net Assets#:
Expenses ........................................................ 1.64% 1.64% 1.65% 1.61%
Net Investment Income ........................................... 3.68% 4.03% 4.01% 4.35%
Expenses Without Waivers and Assumption of Expenses ............. 1.71% 1.68% 1.76% 1.87%
Net Investment Income Without Waivers and Assumption
of Expenses .................................................... 3.61% 3.99% 3.90% 4.09%
Portfolio turnover rate .......................................... 91% 107% 156% 122%
<CAPTION>
New York Tax Free
Income Fund
-------------------
Class B
-------------------
11/14/93*
Through
8/31/94++
--------
<S> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ............................. $12.11
------
Income from Investment Operations:
Net Investment Income .......................................... 0.419
Net Gains or Losses on Securities (both realized and unrealized) (0.543)
-------
Total from Investment Operations ............................... (0.124)
-------
Less Distributions:
Dividends from Net Investment Income ........................... 0.433
Distributions from Capital Gains ............................... 0.283
-------
Total Distributions ............................................ 0.716
-------
Net Asset Value, End of Period ................................... $11.27
=======
Total Return (1) ................................................. (1.11%)
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) .......................... $7,234
Ratios to Average Net Assets#:
Expenses ........................................................ 1.51%
Net Investment Income ........................................... 4.28%
Expenses Without Waivers and Assumption of Expenses ............. 1.76%
Net Investment Income Without Waivers and Assumption
of Expenses .................................................... 4.03%
Portfolio turnover rate .......................................... 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 the Fund changed its fiscal year-end from October 31 to August 31.
See notes to financial statements.
39
<PAGE>
Chase Vista Funds
Financial Highlights (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
California Intermediate Tax Free Fund
-----------------------------------------------
Year Ended August 31,
-----------------------------------------------
1998 1997 1996 1995
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ..................................... $ 10.07 $ 9.81 $ 9.89 $ 9.69
------- ------- ------ -------
Income from Investment Operations:
Net Investment Income .................................................. 0.447 0.461 0.473 0.505
Net Gains or Losses on Securities (both realized and unrealized) ....... 0.319 0.256 0.013 0.200
------- ------- ------- -------
Total from Investment Operations ....................................... 0.766 0.717 0.486 0.705
------- ------- ------- -------
Less Distributions:
Dividends from Net Investment Income ................................... 0.446 0.324 0.476 0.505
Distributions from Capital Gains ....................................... 0.100 0.134 0.090 --
------- ------- ------- -------
Total Distributions .................................................... 0.546 0.458 0.566 0.505
------- ------- ------- -------
Net Asset Value, End of Period ........................................... $ 10.29 $ 10.07 $ 9.81 $ 9.89
======= ======= ======= =======
Total Return (1) ......................................................... 7.81% 7.46% 5.00% 7.55%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) .................................. $23,996 $25,525 $28,298 $32,746
Ratios to Average Net Assets#:
Expenses ................................................................ 0.60% 0.60% 0.60% 0.52%
Net Investment Income ................................................... 4.38% 4.65% 4.77% 5.24%
Expenses Without Waivers and Assumption of Expenses ..................... 1.44% 1.33% 1.47% 1.40%
Net Investment Income Without Waivers and Assumption of Expenses ........ 3.54% 3.92% 3.90% 4.36%
Portfolio turnover rate .................................................. 44% 66% 188% 94%
<CAPTION>
California
Intermediate
Tax Free Fund
-------------
11/1/94
Through
8/31/94++
------------
<S> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ..................................... $ 10.30
--------
Income from Investment Operations:
Net Investment Income .................................................. 0.320
Net Gains or Losses on Securities (both realized and unrealized) ....... (0.408)
--------
Total from Investment Operations ....................................... (0.088)
--------
Less Distributions:
Dividends from Net Investment Income ................................... 0.404
Distributions from Capital Gains ....................................... 0.118
--------
Total Distributions .................................................... 0.522
--------
Net Asset Value, End of Period ........................................... $ 9.69
========
Total Return (1) ......................................................... (0.86%)
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) .................................. $ 36,264
Ratios to Average Net Assets#:
Expenses ................................................................ 0.52%
Net Investment Income ................................................... 4.88%
Expenses Without Waivers and Assumption of Expenses ..................... 1.37%
Net Investment Income Without Waivers and Assumption of Expenses ........ 4.03%
Portfolio turnover rate .................................................. 93%
</TABLE>
- -------
(1) Total return figures do not include the effect of any sales load.
# Short periods have been annualized.
* Commencement of operations.
++ In 1994 the Fund changed its fiscal year-end from October 31 to August 31.
See notes to financial statements.
40
<PAGE>
Report of Independent Accountants
- --------------------------------------------------------------------------------
To the Trustees and Shareholders of
Mutual Fund Trust
In our opinion, the accompanying statement of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Chase Vista Tax Free Income Fund,
Chase Vista New York Tax Free Income Fund and Chase Vista California
Intermediate Tax Free Fund (separate portfolios of Mutual Fund Trust, hereafter
referred to as the "Trust") at August 31, 1998, the results of each of their
operations for the year then ended, the changes in each of their net assets for
each of the two years in the period then ended and the financial highlights for
each of the periods presented, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Trust's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with 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, 1998 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
October 9, 1998
41
<PAGE>
Unaudited
Chase Vista Tax Free Income Fund (CVTFI)
Chase Vista New York Tax Free Income Fund (CVNYTFI)
Chase Vista California Intermediate Tax Free Fund (CVCITF)
- --------------------------------------------------------------------------------
Certain tax information regarding the Chase Vista Mutual Funds is required to be
provided to shareholders based upon the Funds income and distributions for the
taxable year ended August 31, 1998. 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, 1998. The information
necessary to complete your income tax returns for the calendar year ending
December 31, 1998 will be received under separate cover.
FOR THE FISCAL YEAR ENDED AUGUST 31, 1998
o The dividends paid from net investment income are
100.00% exempt from Federal income tax for CVTFI,
CVNYTFI and CVCITF, respectively.
o 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 4.39%, 10.36% and 2.21% for
CVTFI, CVNYTFI and CVCITF, respectively.
o Long-term capital gains distributions were $0.044 and
$0.049 per share for the CVNYTFI and CVCITF,
respectively.
42
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
Chase Vista Funds 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
PricewaterhouseCoopers LLP
Chase Vista Funds are distributed by Vista Fund Distributors, Inc., which is
unaffiliated with The Chase Manhattan Bank. Chase and its respective affiliates
receive compensation from Chase Vista Funds for providing investment advisory
and other services.
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 accompanied by a prospectus.
To obtain a prospectus for any of the Chase 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.
October 1998 (unaudited) CVIS-2-1098
