TAX FREE FUNDS
[CHASE VISTA FUNDS LOGO]
SEMI-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
February 28, 1998
(Unaudited)
<PAGE>
HIGHLIGHTS
Supply and demand issues dominated the municipal
bond market during the reporting period.
o Municipal bond issuers took advantage of falling
interest rates to refund higher-rate bonds, creating
more supply than the market could comfortably absorb.
o Narrow interest rate spreads between municipal bonds
of lower and higher quality provided the opportunity
to upgrade quality and improve call protection.
|--------------------------------------------------------------------|
| 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 Funds
CHAIRMAN'S LETTER
April 10, 1998
Dear Shareholder:
We are pleased to present this semi-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 six months ended February 28,
1998. Inside, you'll find information on the performance of each fund along with
a report from the portfolio management team.
Falling Interest Rates Created Heavy New Supply
Entering the reporting period, most market participants assumed that the strong
U.S. economy would lead the Federal Reserve Board to raise interest rates as a
preemptive strike against inflation. However, the Asian crisis intervened, and
the resulting global flight to U.S. Treasury bonds led domestic interest rates
on a sharp downward path. Additionally, investors
began to assume that the Asian crisis would act as a damper on inflation,
because Asian goods would be cheaper in the U.S. and our exports to the region
would fall, curbing our strong economy.
These changing views on inflation had more positive effects in the taxable bond
market than in the municipal bond market, however, because many municipal
issuers chose to take advantage of the lower rates to refund and pre-refund
existing bonds. The resulting heavy supply was difficult for the market to
absorb, causing municipals to underperform Treasury securities. Additionally,
demand from property/casualty insurers, which had been a strong support in the
market in late 1997, fell as these companies shored up reserves in light of
damages caused by el nino related storms.
In this challenging environment, Chase Vista's portfolio management team was
able to provide positive total returns while upgrading the quality of the
portfolios in anticipation of a better supply/demand picture ahead. On behalf of
the management team and everyone at Chase Vista, I thank you for the confidence
you've placed in us and look forward to continuing to serve your investment
needs.
Sincerely,
/s/ Fergus Reid
Fergus Reid
Chairman
3
<PAGE>
About Your Fund
CHASE VISTA TAX FREE INCOME FUND
<TABLE>
<CAPTION>
FUND FACTS
<S> <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
</TABLE>
<TABLE>
<CAPTION>
Class A Class B
-------------- ---------------
<S> <C> <C>
Inception date: 9/8/87 11/4/93
Newspaper symbol: TF Inc not listed
As of February 28, 1998
Net assets: $60.4 Million $14.4 Million
Average maturity: 23.0 years 23.0 years
Average duration: 7.9 years 7.9 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.
4
<PAGE>
About Your Fund
CHASE VISTA TAX FREE INCOME FUND
PERFORMANCE
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 5.54% for the six month period ended February 28, 1998 (Class
A shares, without sales charges). This compares to a return of 4.99% for the
Lipper General Municipal Debt Funds Average and 5.04% for the unmanaged Lehman
Municipal Bond Index.
STRATEGY
In attempting to deliver high current tax-free income, your management team uses
a relative value analysis to select individual securities, identify points of
value on the yield curve and target sectors for investment. During this
reporting period, however, high new supply levels and the narrowing of quality
spreads that resulted, made it difficult to shift among securities and sectors.
Therefore, the management team focused on increasing coupon rates and call
protection, which resulted in a higher-quality, better--structured portfolio.
Overall, the management team tried to maintain its slightly-long duration, but
took more of a barbell approach. This strategy effectively shortened duration
when property casualty insurers slowed down their purchases in the intermediate
part of the yield curve, which put upward pressure on intermediate-term rates.
Additionally, in January and early February, the management team effectively cut
duration by moving out of some 30- and 40-year issues and into 20-year bonds,
thereby reducing risk without giving up much yield.
On a state level, the Fund was underweighted in New York due to extremely heavy
supply and also cut exposure to the Pacific Northwest given the potential
economic impact of weakening Pacific Rim economies on the region. The Fund did
take advantage of price-compression opportunities in states such as Kansas,
which normally trade at a price premium, buying these bonds at
relatively-attractive prices.
OUTLOOK
As the period ended, supply had begun to shrink to more manageable levels
creating a better supply and demand picture. That, combined with the expectation
that interest rates will fall later in the year, has led the management team to
begin carefully increasing the Fund's duration, with an eye on the potential for
volatility in rates over the short term. Given the shape of the yield curve,
15-year maturities have begun to look relatively attractive and the Fund expects
to continue selectively investing in this area. Overall, state finances continue
to improve and, with supply decreasing, the management team has a positive
outlook for the next six months.
5
<PAGE>
About Your Fund
CHASE VISTA TAX FREE INCOME FUND
CHASE VISTA TAX FREE INCOME FUND
COMPOSITION OF TOTAL ASSETS AS OF 2/28/98
[PIE CHART OMITTED}
<TABLE>
<CAPTION>
Composition of
Total Assets as of
2/28/98
<S> <C>
Cash/Other 6.2%
Investments 93.8%
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS AS OF 2/28/98+
<TABLE>
<CAPTION>
Without With
Class A Shares Sales Charge Sales Charge*
<S> <C> <C>
One Year 9.16% 4.24%
Five Years 5.95% 4.97%
Ten Years 8.57% 8.08%
Without With
Class B Shares CDSC CDSC**
One Year 8.37% 3.37%
Five Years+ 5.19% 4.86%
Ten Years+ 8.19% 8.19%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predictive of
future performance. Investment return and principal will fluctuate with market
conditions. When shares are redeemed, they may be worth more or less than their
original cost.
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>
About Your Fund
CHASE VISTA TAX FREE INCOME FUND
GROWTH OF HYPOTHETICAL $10,000 INVESTMENT
IN CHASE VISTA TAX FREE INCOME FUND
AND ITS KEY BENCHMARKS
[LINE CHART OMITTED]
<TABLE>
<CAPTION>
2/88 2/98
------- -------
<S> <C> <C>
Chase Vista Tax Free Income Fund $10,000 $21,751
Lehman Municipal Bond Index $10,000 $22,008
Lipper General Municipal Debt Funds Average $10,000 $20,794
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predictive of
future performance. Investment return and principal will fluctuate with market
conditions. When shares are redeemed, they may be worth more or less than their
original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
shares of the Chase Vista Tax Free Income Fund, the Lehman Municipal Bond Index
and the Lipper General Municipal Debt Funds Average from February 29, 1988 to
February 28, 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 249 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 February 28, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ----------------------------------------------------------------
Long Term Municipal Bonds -- 92.6%
- ----------------------------------------------------------------
<S> <C> <C>
Alaska -- 0.2%
$ 150,000 Alaska North Slope, GO, 8.35%,
06/30/98 $ 152,223
-----------
Arkansas -- 0.9%
1,530,000 Arkansas State, College Savings,
Capital Appreciation, Ser. A, GO,
0.00%, 06/01/14 684,675
-----------
California -- 14.5%
150,000 California Board of Regents, UCLA,
Educational Facilities Authority,
Rev., 7.00%, 09/01/15 163,875
150,000 California Educational Facilities
Authority, Pepperdine Univ., Rev.,
7.20%, 11/01/15 165,375
2,100,000 California State Department of Water
Resources Central Valley Project,
Ser. Q, Rev. 5.25%, 12/01/17 2,121,000
1,500,000 Contra Costa, California,
Transportation Authority, Sales Tax,
Ser. A, Rev., 6.00%, 03/01/09 1,702,500
1,960,000 Kern, California High School
District, Ser. A, GO, 6.20%,
02/01/08 2,254,000
1,000,000 Kern, California High School
District, Ser. A, GO, 6.20%,
02/01/09 1,157,500
150,000 Orange County Water District, COP,
5.75%, 08/15/14 157,125
2,800,000 South Orange County Public
Financing Authority, Senior Lien,
Ser. A, Special Tax, 6.20%,
09/01/13 3,062,500
-----------
10,783,875
-----------
</TABLE>
See notes to financial statements.
8
<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments February 28, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- -------------------------------------------------------------------
<S> <C> <C>
Georgia -- 6.4%
$ 2,000,000 Georgia State, GO, 4.00%, 07/01/12 $ 1,845,000
2,700,000 Municipal Electric Authority of
Georgia, Project One, Sub-Ser. A,
Rev., 6.25%, 01/01/14 2,943,000
-----------
4,788,000
-----------
Illinois -- 0.4%
100,000 Chicago Illinois Public Building
Commission, Ser. A, Rev., 7.75%,
01/01/06 105,210
150,000 Chicago O'Hare Intl. Airport, Ser. A,
Rev., 7.50%, 01/01/03 159,937
65,000 Illinois Housing Development
Authority, Ser. A, Rev., 8.00%,
06/01/26 68,331
-----------
333,478
-----------
Kansas -- 6.0%
4,000,000 Kansas City, Kansas, Utility System,
Rev., 6.38%, 09/01/23 4,475,000
-----------
Maryland -- 0.2%
115,000 Maryland State Community
Development Administration,
Housing & Community
Development, Single Family
Program, 2nd Series, Rev., 7.60%,
04/01/23 121,900
-----------
Massachusetts -- 1.6%
90,000 Massachusetts State Housing Finance
Authority, Rev., 7.75%, 12/01/20 94,163
1,000,000 New England Education Loan
Marketing Corp., Mass. Student
Loan, Sub-Issue H, Rev., 6.90%,
11/01/09 1,125,000
-----------
1,219,163
------------
</TABLE>
See notes to financial statements.
9
<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments February 28, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- --------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- --------------------------------------------------------------------
<S> <C> <C>
Michigan -- 3.6%
$ 1,000,000 Michigan State Housing Authority,
Rental Housing, Ser. B, Rev.,
7.55%, 04/01/23 $ 1,082,500
1,000,000 Royal Oak, Michigan, Hospital
Financing Authority, William
Beaumont Hospital, Rev., 5.25%,
01/01/20 996,250
500,000 Wayne County Michigan, Building
Authority, Ser. A, GO, 8.00%,
03/01/17 579,375
-----------
2,658,125
-----------
Missouri -- 1.1%
720,000 Sikeston Missouri Electric, Rev.,
6.00%, 06/01/16 810,900
-----------
Montana -- 4.0%
1,800,000 Montana State, Long Range Building
Program, Ser. D, GO, 5.38%,
08/01/11 1,872,000
1,100,000 Montana State, Long Range Building
Program, Ser. D, GO, 5.38%,
08/01/12 1,144,000
-----------
3,016,000
-----------
Nevada -- 0.2%
150,000 Nevada Housing Division, Single
Family, Rev., 8.20%, 10/01/19 162,937
-----------
New Jersey -- 10.5%
1,000,000 Camden County, New Jersey IAR,
Health Systems, Catholic Health
East, Ser. A, Rev., 5.00%, 11/15/18 976,250
1,000,000 Camden County, New Jersey IAR,
Health Systems, Catholic Health
East, Ser. A, Rev., 5.00%, 11/15/28 965,000
2,000,000 Essex County, New Jersey, Utilities
Authority, Solid Waste, Ser. A,
Rev., 6.00%, 04/01/06 2,225,000
</TABLE>
See notes to financial statements.
10
<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments February 28, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ---------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ---------------------------------------------------------------
<S> <C> <C>
$ 3,455,000 Middletown Township, New Jersey,
Board of Education, GO, 5.80%,
08/01/20 $ 3,705,487
-----------
7,871,737
-----------
New York -- 15.5%
2,450,000 New York City, New York, Ser. A,
GO, 6.25%, 08/01/09 2,750,125
2,500,000 New York City, New York,
Transitional Finance Authority,
Future Tax, Ser. B, Rev., 4.75%,
11/15/16 2,387,500
500,000 New York State Dormitory Authority,
Mt. St. Vincent College, Rev.,
7.00%, 05/01/08 550,000
5,000,000 Port Authority, New York & New
Jersey, Consolidated-Ninety-Third
Ser., Rev., 6.13%, 06/01/94 5,787,500
-----------
11,475,125
-----------
Ohio -- 6.3%
4,000,000 Cleveland Ohio Public Power System
First Mortgage--Ser. A, Rev.,
7.00%, 11/15/24 4,720,000
-----------
Oklahoma -- 8.8%
6,000,000 Grand River Dam Authority,
Oklahoma, Rev., 5.50%, 06/01/09 6,547,500
-----------
Pennsylvania -- 0.3%
230,000 New Castle Pennsylvania Area
Hospital Authority Refunding,
St. Francis Hospital, Ser. A, Rev.,
6.50%, 11/15/17 242,075
-----------
Puerto Rico -- 5.0%
4,000,000 Puerto Rico Commonwealth,
Highway & Transportation
Authority, Ser. A, Rev., 4.75%,
07/01/38 3,692,240
</TABLE>
See notes to financial statements.
11
<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments February 28, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ---------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ---------------------------------------------------------------
<S> <C> <C>
$ 75,000 Puerto Rico Urban Renewal &
Housing, Rev., 7.88%, 10/01/04 $ 80,438
------------
3,772,678
------------
South Carolina -- 5.4%
3,500,000 Piedmont Municipal Power Agency,
South Carolina, Electric, Ser. A,
Rev., 6.60%, 01/01/21 3,517,710
250,000 South Carolina Housing Finance &
Development Authority, Fairway
Apts. Project, Rev., 7.63%,
04/01/33 265,313
250,000 South Carolina Housing Finance &
Development Authority, Ser. B,
Rev., 7.80%, 07/01/09 259,375
------------
4,042,398
------------
South Dakota -- 0.1%
100,000 South Dakota Housing Development
Authority, Ser. A, Rev., 5.88%,
05/01/12 104,875
------------
Utah -- 0.4%
250,000 Utah State Board of Regents, Student
Loan, Ser. F, Rev., 7.45%,
11/01/08 268,750
------------
Virgin Islands -- 0.7%
500,000 Virgin Islands, GO, 7.00%, 10/01/02 546,875
------------
Virginia -- 0.1%
100,000 Fairfax County Virginia, Ogden
Martin Sys. Project, Ser. A, Rev.,
7.75%, 02/01/11 105,986
------------
Washington -- 0.4%
250,000 Washington State Public Power
Supply, Nuclear Project, Ser. B,
Rev., 7.25%, 07/01/09 304,687
------------
Total Long Term Municipal Bonds--
(Cost $65,892,661) 69,208,962
------------
</TABLE>
See notes to financial statements.
12
<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments February 28, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------------
Short Term Investments -- 8.6%
- -----------------------------------------------------------------
<S> <C> <C>
Floating Rate Demand Notes -- 2.6%
Texas -- 1.3%
$ 1,000,000 Harris Country, Texas, Health
Facilities, Methodist Hospital,
FRDN, Rev., 3.65%, 03/02/98 $ 1,000,000
------------
Washington -- 1.3%
1,000,000 Washington State, Health Care
Facilities Authority, Virginia Mason
Medical Center, Ser. B, FRDN,
3.70%, 03/02/98 1,000,000
------------
Total Floating Rate Demand Notes
(Cost $2,000,000) 2,000,000
------------
Shares
- -----------------------------------------------------------------
Money Market Funds -- 6.0%
2,181,954 Provident Municipal Cash Money
Market Fund 2,181,954
2,287,177 Provident Municipal Money Market
Fund 2,287,177
---------
(Cost $4,469,131) 4,469,131
---------
Total Short Term Investments--
(Cost $6,469,131) 6,469,131
---------
Total Investments--
(Cost $72,361,792) 101.2% $75,678,093
-----------
</TABLE>
See notes to financial statements.
13
<PAGE>
About Your Fund
CHASE VISTA NEW YORK
TAX FREE INCOME FUND
FUND FACTS
<TABLE>
<S> <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 Municipal Debt Funds Average
<CAPTION>
Class A Class B
------------- -------------
<S> <C> <C>
Inception date: 9/8/87 11/4/93
Newspaper symbol: NY TF not listed
As of February 28, 1998
Net assets: $91.2 Million $14.2 Million
Average maturity: 21.1 years 21.1 years
Average duration: 8.5 years 8.5 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.
14
<PAGE>
About Your Fund
CHASE VISTA NEW YORK
TAX FREE INCOME FUND
PERFORMANCE
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 5.53% for the six month period ended February 28,
1998 (Class A shares, without sales charges). This compares to a return of 4.87%
for the Lipper New York Municipal Debt Funds Average and 5.04% for the unmanaged
Lehman Municipal Bond Index.
STRATEGY
In attempting to deliver high current tax-free income, your management team uses
a relative value analysis to select individual securities, identify points of
value on the yield curve and target sectors for investment. During this
reporting period, however, high new supply levels and the narrowing of quality
spreads that resulted made it difficult to shift among securities and sectors.
Therefore, the management team took advantage of the opportunity to upgrade the
portfolio from a credit and call protection standpoint without giving up
significant yield.
Late in the reporting period, there was little incentive to invest in the
longest-term securities. This led the management team to shorten the Fund's
duration, taking advantage of relatively-attractive valuations in the 15-year
maturity range. In other major moves, the Fund increased its exposure to New
York City obligations, which proved beneficial when the City's bonds received
credit upgrades in February. The Fund also took an overweighted position in
Puerto Rico general obligation and power bonds, earning relatively-attractive
yields that are exempt from New York City and New York State taxes.
OUTLOOK
As the period ended, supply of new issues had begun to shrink to more manageable
levels, creating a better supply and demand picture. This, combined with the
expectation that interest rates will fall later in the year, has led the
management team to begin carefully increasing the Fund's duration, with an eye
on the potential for volatility in rates over the short term. The Fund expects
to continue to selectively invest in the 15-year area of the curve and is
considering reducing its overweight position in New York City obligations given
the recent compression in spreads. Overall, municipal finances throughout New
York continue to improve and, with supply decreasing, the management team has a
positive outlook for the next six months.
15
<PAGE>
About Your Fund
CHASE VISTA NEW YORK
TAX FREE INCOME FUND
CHASE VISTA NEW YORK TAX FREE INCOME FUND
COMPOSITION OF TOTAL ASSETS AS OF 2/28/98
[PIE CHART OMITTED]
<TABLE>
<CAPTION>
Composition of
Total Assets as of
2/28/98
<S> <C>
Cash/Other 1.4%
Investments 98.6%
</TABLE>
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF 2/28/98+
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Without With
Class A Shares Sales Charge Sales Charge*
<S> <C> <C>
One Year 9.41% 4.48%
Five Years 5.93% 4.96%
Ten Years 7.99% 7.49%
Without With
Class B Shares CDSC CDSC**
One Year 8.57% 3.57%
Five Years+ 5.26% 4.93%
Ten Years+ 7.64% 7.64%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predictive of
future performance. Investment return and principal will fluctuate with market
conditions. When shares are redeemed, they may be worth more or less than their
original cost.
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>
About Your Fund
CHASE VISTA NEW YORK
TAX FREE INCOME FUND
GROWTH OF HYPOTHETICAL $10,000 INVESTMENT
IN CHASE VISTA NEW YORK TAX FREE INCOME FUND
AND ITS KEY BENCHMARKS
[LINE CHART OMITTED]
<TABLE>
<CAPTION>
2/88 2/98
------- -------
<S> <C> <C>
Chase Vista New York Tax Free Income Fund $10,000 $20,599
Lehman Municipal Bond Index $10,000 $22,008
Lipper NY Municipal Debt Funds Average $10,000 $20,702
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predictive of
future performance. Investment return and principal will fluctuate with market
conditions. When shares are redeemed, they may be worth more or less than their
original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
shares of the Chase Vista New York Tax Free Income Fund, the Lehman Municipal
Bond Index and the Lipper New York Municipal Debt Funds Average from February
29, 1988 to February 28, 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 Municipal Debt Funds Average represents the average
performance of a universe of 101 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 February 28, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------------
Long Term Municipal Bonds -- 99.2%
- -----------------------------------------------------------------
<S> <C> <C>
$ 2,000,000 Metropolitan Transportation
Authority, New York City,
Commuter Facilities, Ser. C-1,
Rev., 6.00%, 07/01/06 $ 2,227,500
4,425,000 Metropolitan Transportation
Authority, New York City, Service
Contract, Transportation Facilities,
Ser. O, Rev., 5.50%, 07/01/17 4,651,781
550,000 Monroe County IDA, Public
Improvement, Canal Ponds Park,
Ser. A, Rev., 7.00%, 06/15/13 611,187
2,480,000 Monroe County, New York, Public
Improvement, Ser. A, GO, 6.00%,
03/01/08 2,802,400
3,260,000 Nassau County, New York, Ser. P,
GO, 6.40%, 11/01/08 3,732,700
3,665,000 Nassau County, New York, Ser. P,
GO, 6.40%, 11/01/09 4,210,168
390,000 New York City, GO, 3.00%,
08/01/01 377,325
610,000 New York City, GO, 3.00%,
08/01/01 593,987
3,010,000 New York City, GO, 6.20%,
10/01/22 3,337,338
1,000,000 New York City, GO, 7.50%,
02/01/03 1,120,000
250,000 New York City, New York IDA,
American Airlines, Rev., 8.00%,
07/01/20 261,323
1,430,000 New York City, New York IDA, Civil
Facility, New York Blood Center,
Inc., Rev., 7.20%, 05/01/12 1,660,588
1,500,000 New York City, New York IDA, Civil
Facility, YMCA Greater New York
Project, Rev., 5.80%, 08/01/16 1,554,375
</TABLE>
See notes to financial statements.
18
<PAGE>
Chase Vista New York Tax Free Income Fund
Portfolio of Investments February 28, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ----------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ----------------------------------------------------------------
<S> <C> <C>
$ 735,000 New York City, New York, City
Municipal Water Financing
Authority Water & Sewer Systems,
Ser. A, Rev., 7.00%, 06/15/09 $ 804,825
1,000,000 New York City, New York, Ser A,
GO, 6.25%, 08/01/08 1,133,750
5,000,000 New York City, New York, Ser D,
GO, 5.25%, 08/01/21 4,962,500
835,000 New York City, New York, Ser F,
GO, 8.25%, 11/15/02 955,031
165,000 New York City, New York, Ser F,
GO, 8.25%, 11/15/02 190,575
5,000,000 New York City, New York,
Transitional Financing Authority,
Future Tax Secured, Ser. A, Rev.,
5.00%, 08/15/27 4,818,750
2,000,000 New York State Dormitory Authority,
Brookdale Hospital & Medical
Center, Ser. J, Rev., 5.20%,
02/15/16 1,975,000
500,000 New York State Dormitory Authority,
Mt. St. Vincent College, Rev.,
7.00%, 05/01/08 550,000
2,500,000 New York State Dormitory Authority,
State Service Contract, Albany
County, Rev., 5.25%, 04/01/17 2,484,375
1,275,000 New York State Dormitory Authority,
State University Educational
Facilities, Ser. A, Rev., 6.00%,
05/15/10 1,380,188
795,000 New York State Environmental
Facilities Corp., Pollution Control,
State Water, Revolving Fund, Ser.
A, Rev., 7.25%, 06/15/10 888,413
705,000 New York State Environmental
Facilities Corp., Pollution Control,
State Water, Revolving Fund, Ser.
A, Rev., 7.25%, 06/15/10 784,313
</TABLE>
See notes to financial statements.
19
<PAGE>
Chase Vista New York Tax Free Income Fund
Portfolio of Investments February 28, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- -------------------------------------------------------------
<S> <C> <C>
$ 860,000 New York State Housing Finance
Agency, Rev., 8.00%, 11/01/08 $ 949,225
300,000 New York State Housing Finance
Authority, Rev., 6.95%, 08/15/12 323,625
4,005,000 New York State Local Government
Assistance Corp., Ser. A, Rev.,
5.25%, 04/01/16 4,130,156
745,000 New York State Medical Care
Facilities Financing Authority,
Insured Mortgage, Rev., 7.88%,
08/15/20 819,500
375,000 New York State Medical Care
Facilities Financing Authority,
Insured Mortgage, Rev., 8.00%,
02/15/28 389,325
65,000 New York State Mortgage Agency,
Ser. SS, Rev., 7.50%, 10/01/19 68,738
160,000 New York State Mortgage Agency,
Ser. E, Rev., 8.00%, 10/01/03 163,414
230,000 New York State Mortgage Agency,
Eighth Ser. F, Rev., 8.00%,
10/01/17 236,297
1,000,000 New York State Municipal Bond,
Buffalo Special Project, Rev.,
6.88%, 03/15/06 1,087,500
1,220,000 New York State Power Authority,
Revenue & General Purpose, Ser.
Z, Rev., 6.50%, 01/01/19 1,343,525
655,000 New York State Power Authority,
Revenue & General Purpose, Ser.
Z, Rev., 6.50%, 01/01/19 711,494
2,500,000 New York State Thruway Authority,
Service Contract, Local Highway &
Bridges, Rev., 6.00%, 04/01/11 2,706,250
2,205,000 New York State Urban Development
Corp., Center for Individual
Innovation, Rev., 5.50%, 01/01/13 2,337,300
</TABLE>
See notes to financial statements.
20
<PAGE>
Chase Vista New York Tax Free Income Fund
Portfolio of Investments February 28, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
$ 5,000,000 Niagara New York Frontier
Transportation Authority, Greater
Buffalo International Airport, Rev.,
5.75%, 04/01/04 $ 5,343,750
3,000,000 Port Authority of New York & New
Jersey, Special Obligation, 3rd
Installment, Special Project,
KIAC-4, Rev., 7.00%, 10/01/07 3,498,750
5,000,000 Port Authority, New York & New
Jersey, Consolidated-Ninety-Third
Ser., Rev., 6.13%, 06/01/94 5,787,500
5,000,000 Puerto Rico Commonwealth,
Highway & Transportation
Authority, Ser. A, Rev., 4.75%,
07/01/38 4,615,300
4,000,000 Puerto Rico Commonwealth,
Infrastructure Financing Authority
Special, Ser. A, Rev., 5.00%,
07/01/28 3,910,000
2,000,000 Puerto Rico Industrial Med &
Environmental Pollution Facilities
Financing Authority, Rev., 6.45%,
12/01/25 2,185,000
5,000,000 Rensselaer New York Municipal
Leasing Corp., Rensselaer County
Nursing Home, Rev., 6.90%,
06/01/24 5,550,000
1,000,000 Triborough Bridge & Tunnel
Authority of New York, Special
Obligation, Ser. A, Rev., 6.60%,
01/01/05 1,083,750
1,150,000 Virgin Islands, Public Finance
Authority, Ser. A, Rev., 7.25%,
10/01/18 1,296,625
1,150,000 Westchester County, GO, 6.70%,
11/01/06 1,351,250
</TABLE>
See notes to financial statements.
21
<PAGE>
Chase Vista New York Tax Free Income Fund
Portfolio of Investments February 28, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
$ 1,310,000 Westchester County, New York IDA, AGR
Realty Co., Rev., 5.75%, 01/01/02 $ 1,355,850
2,000,000 Westchester County, New York IDA,
Resource Recovery, Resco Co.
Project, Ser. A, Rev., 5.70%,
07/01/08 2,140,000
1,000,000 Western Nassau County, New York,
Water Authority Water Systems,
Rev., 5.50%, 05/01/16 1,040,000
2,000,000 Western Nassau County, New York,
Water Authority Water Systems,
Rev., 5.65%, 05/01/26 2,080,000
------------
Total Long Term Municipal Bonds 104,572,516
------------
(Cost $98,796,227)
- ------------------------------------------------------------------
Short Term Investments -- 4.1%
- ------------------------------------------------------------------
Floating Rate Demand Notes -- 2.2%
300,000 New York City, New York, Ser. B--Sub.
Ser. B-7, FRDN, GO, 3.65%, 03/05/98 300,000
1,400,000 New York State Dormitory Authority,
Cornell University, Ser B, FRDN,
3.65%, 03/05/98 1,400,000
600,000 New York State Research &
Development Authority, PCR,
Niagara Mohawk Power Corp.,
FRDN, Rev., 3.95%, 03/05/98 600,000
------------
Total Floating Rate Demand Notes 2,300,000
------------
(Cost $2,300,000)
Shares
- ------------------------------------------------------------------
Money Market Funds -- 1.9%
1,980,518 Provident New York Money Market
Fund 1,980,518
---------
(Cost $1,980,518)
- ------------------------------------------------------------------
Total Short Term Investments 4,280,518
---------
(Cost $4,280,518)
- ------------------------------------------------------------------
Total Investments
(Cost $103,076,745)--103.3% $108,853,034
------------
</TABLE>
See notes to financial statements.
22
<PAGE>
About Your Fund
CHASE VISTA CALIFORNIA
INTERMEDIATE TAX FREE FUND
- --------------------------------------------------------------------------------
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
As of February 28, 1998
Net assets: $24.3 Million
Average maturity: 9.3 years
Average duration: 6.0 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.
23
<PAGE>
About Your Fund
CHASE VISTA CALIFORNIA
INTERMEDIATE TAX FREE FUND
PERFORMANCE
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 4.57% for the six month period ended
February 28, 1998 (Class A shares, without sales charges). This compares to a
return of 3.99% for the Lipper California Intermediate Municipal Debt Funds
Average and 4.33% for the unmanaged Lehman California Intermediate Municipal
Bond Index.
STRATEGY
In attempting to deliver high current tax-free income, your management team uses
a relative value analysis to select individual securities, identify points of
value on the yield curve and target sectors for investment. During this
reporting period, however, high new supply levels and the narrowing of quality
spreads that resulted made it difficult to shift among securities and sectors.
Therefore, the management team focused on increasing coupon rates and call
protection, which resulted in a higher-quality, better--structured portfolio.
During the period, property-casualty companies cut back their purchases of
15-year bonds, which put pressure on intermediate term securities. As a result,
the management team allowed the Fund's duration to shorten before moving back
into the 15-year maturity range late in the reporting period. Concerned about
the potential effects el nino-related storms may have on California's economy
and the disproportionate impact the Asian crisis may have on the state, the
management team focused on essential services bonds.
OUTLOOK
As the period ended, the supply of new issues had begun to shrink to more
manageable levels, creating a better supply and demand picture. This, combined
with the expectation that interest rates will fall later in the year, has led
the management team to begin carefully increasing the Fund's duration. The
management team expects to continue doing so through select investments in the
15-year area of the curve, with an eye on the potential for volatility in rates
over the short term.
24
<PAGE>
About Your Fund
CHASE VISTA CALIFORNIA
INTERMEDIATE TAX FREE FUND
CHASE VISTA CALIFORNIA INTERMEDIATE TAX FREE INCOME FUND
COMPOSITION OF TOTAL ASSETS AS OF 2/28/98
[PIE CHART OMITTED]
<TABLE>
<CAPTION>
Composition Of
Total Assets As Of
2/28/98
<S> <C>
Investments 98.4%
Cash/Other 1.6%
</TABLE>
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF 2/28/98
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Without With
Class A Shares Sales Charge Sales Charge*
<S> <C> <C>
One Year 7.66% 2.81%
Three Years 7.38% 5.74%
Since Inception (7/16/93) 5.63% 4.59%
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predictive of
future performance. Investment return and principal will fluctuate with market
conditions. When shares are redeemed, they may be worth more or less than their
original cost.
*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>
About Your Fund
CHASE VISTA CALIFORNIA
INTERMEDIATE TAX FREE FUND
GROWTH OF HYPOTHETICAL $10,000 INVESTMENT IN
CHASE VISTA CALIFORNIA TAX FREE INCOME FUND
AND ITS KEY BENCHMARKS
[LINE CHART OMITTED]
<TABLE>
<CAPTION>
7/93 2/98
------- -------
<S> <C> <C>
Chase Vista California Tax Free Income Fund $10,000 $12,306
Lehman California Intermediate Municipal Bond Index $10,000 $13,279
Lehman Municipal Bond Index $10,000 $13,458
Lipper California Intermediate Municipal Debt Funds Average $10,000 $12,707
</TABLE>
Source: Lipper Analytical Services, Inc. Past performance is not predictive of
future performance. Investment return and principal will fluctuate with market
conditions. When shares are redeemed, they may be worth more or less than their
original cost.
This chart illustrates comparative performance for $10,000 invested in Class A
shares of the 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 February 28, 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 February 28, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- --------------------------------------------------------------------
Long Term Municipal Bonds -- 98.6%
- --------------------------------------------------------------------
<S> <C> <C>
$ 1,400,000 California State, GO, 6.20%, 09/01/05 $ 1,583,750
1,050,000 California State, Department of Water
Resources Central Valley Project,
Ser. T, Rev., 5.38%, 12/01/07 1,136,625
1,500,000 California State, GO, 6.50%, 02/01/07 1,741,875
750,000 California State, Public Works Board,
Lease Revenue, Ser. A, Rev.,
6.00%, 09/01/01 797,813
1,000,000 Contra Costa California Transition
Authority, Ser. A, Rev., 6.00%,
03/01/08 1,133,750
1,850,000 Contra Costa California Water
District, Ser. G, Rev., 5.75%,
10/01/14 1,993,375
200,000 Irvine Ranch Water District, Issue
#11, Rev., 7.60%, 08/15/99 203,058
1,010,000 La Mesa-Spring Valley, California,
School Districts, Capital Projects
Refinancing, COP, 5.50%, 09/01/11 1,097,112
800,000 Los Angeles, California Unified
School District, Capital Facilities
Project, Ser. A, COP, 7.00%,
05/01/99 829,000
1,000,000 Los Angeles, California, Transition
Community, Sales Tax, Proposition
C, Second Sr., Ser. A, Rev., 5.88%,
07/01/02 1,075,000
375,000 Los Angeles, California, Union School
District, Ser. A, GO, 6.00%,
07/01/15 425,625
1,000,000 M-S-R Public Power Agency,
California, San Juan Project, Ser.
G, Rev., 5.30%, 07/01/12 1,045,000
1,000,000 Northern California, Power Agency,
Public Power, Geothermal Project,
Ser. A, Rev., 5.80%, 07/01/09 1,120,000
250,000 Port of Oakland, California, Ser. D,
Rev., 7.00%, 11/01/99 263,437
</TABLE>
See notes to financial statements.
27
<PAGE>
Chase Vista California Intermediate Tax Free Fund
Portfolio of Investments February 28, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- -----------------------------------------------------------------
<S> <C> <C>
$ 1,000,000 Redwood City, California, Elementary
School District, GO, 5.00%,
08/01/16 $ 1,015,000
1,000,000 Riverside County, California Trans.
Common Sales Tax Rev., Ser. A,
Rev., 6.00%, 06/01/08 1,136,250
1,000,000 San Francisco, California City &
County, Ser. E, GO, 6.25%,
06/15/03 1,068,750
500,000 San Francisco, California, State
Building Authority, San Francisco
Civic Center Complex, Ser. A,
Rev., 5.25%, 12/01/11 521,250
1,000,000 Santa Clara County, California,
Financing Authority, Lease, Ser. A,
Rev., 5.75%, 11/15/13 1,108,750
500,000 Santa Cruz California Public
Financing Authority, Ser. C, Rev.,
7.00%, 08/01/99 522,500
1,200,000 South Orange County Public
Financing Authority, Senior Lien,
Ser. A, Special Tax, 6.20%,
09/01/13 1,312,500
1,000,000 University of California, UC Medical
Center, Rev., 10.00%, 07/01/06 1,392,500
705,000 Valley Health Systems California
Hospital, Improvement Project, Ser.
A, Rev., 5.25%, 05/15/99 710,288
670,000 Valley Health Systems, California
Hospital, Improvement Project, Ser.
A, Rev., 5.13%, 05/15/98 670,871
----------
Total Long Term Municipal Bonds 23,904,079
----------
(Cost $22,849,109)
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
28
<PAGE>
Chase Vista California Intermediate Tax Free Fund
Portfolio of Investments February 28, 1998 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- -----------------------------------------------------------------------
Short Term Investments -- 5.1%
- -----------------------------------------------------------------------
<S> <C> <C>
Floating Rate Demand Notes -- 4.1%
$ 1,000,000 Orange County California Water
District, Project B, FRDN, 3.10%,
03/02/98
(Cost $1,000,000) $ 1,000,000
------------
Shares
- -----------------------------------------------------------------------
Money Market Funds -- 1.0%
237,218 Provident California Money Market
Fund
(Cost $237,218) 237,218
- -----------------------------------------------------------------------
Total Short Term Investments
(Cost $1,237,218) 1,237,218
- -----------------------------------------------------------------------
Total Investments
(Cost $24,086,327)--103.7% $25,141,297
- -----------------------------------------------------------------------
</TABLE>
Abbreviation Definition
COP -- Certificate of Participation
FRDN -- Floating Rate Demand Note: The maturity date shown is the
next interest reset date; the rate shown is the rate in
effect at February 28, 1998.
GO -- General Obligation
IAR -- Improvement Authority Revenue
IDA -- Industrial Development Authority
PCR -- Pollution Control Revenue
Rev. -- Revenue Bond
Special Tax -- Special Tax Assessment
See notes to financial statements.
29
<PAGE>
Chase Vista Mutual Funds
Statement of Assets and Liabilities February 28, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
New York California
Tax Free Tax Free Intermediate
Income Fund Income Fund Tax Free
--------------- --------------- ----------------
<S> <C> <C> <C>
ASSETS:
Investment securities, at value (Note 1) $75,678,093 $108,853,034 $25,141,297
Cash ................................... 75,475 -- 40,888
Other assets ........................... 1,528 1,959 496
Receivables:
Investment securities sold ............ 3,875,524 -- --
Interest .............................. 967,417 1,497,284 372,192
Fund shares sold ...................... 95,268 51,854 37
----------- ------------ -----------
Total Assets ........................ 80,693,305 110,404,131 25,554,910
----------- ------------ -----------
LIABILITIES:
Payable for investment
securities purchased .................. 5,678,432 4,628,330 1,142,552
Payable for Fund shares redeemed ....... 68,730 158,556 25,005
Dividends payable ...................... 96,765 87,831 41,245
Other payables ......................... -- -- 37,687
Accrued liabilities: (Note 2)
Administration fees ................... 5,852 12,050 934
Investment advisory fees .............. 11,119 19,279 --
Distribution fees ..................... 8,288 8,218 --
Shareholder servicing fees ............ 7,985 10,370 --
Custody fees .......................... 12,968 13,309 --
Other ................................. 52,395 54,242 51,916
----------- ------------ -----------
Total Liabilities ................... 5,942,534 4,992,185 1,299,339
----------- ------------ -----------
NET ASSETS:
Paid in capital ........................ 72,199,186 98,987,258 22,880,392
Accumulated undistributed net
investment income ..................... (104,044) (64,842) 186,847
Accumulated net realized gain (loss)
on investment transactions ............ (660,672) 713,241 133,362
Net unrealized appreciation of
investments ........................... 3,316,301 5,776,289 1,054,970
----------- ------------ -----------
Net Assets: ............................ $74,750,771 $105,411,946 $24,255,571
=========== ============ ===========
Class A Shares ........................ $60,337,149 $ 91,227,257 $24,255,571
Class B Shares ........................ $14,413,622 $ 14,184,689 --
Shares of beneficial interest
outstanding ($.001 par value;
unlimited number of shares
authorized)
Class A Shares ........................ 4,743,144 7,565,442 2,377,039
Class B Shares ........................ 1,139,263 1,179,000 --
Class A:
Net asset value and redemption
price per share (net assets/shares
outstanding) .......................... $ 12.72 $ 12.06 $ 10.20
Maximum offering price per share
(net asset value per share/95.5%)...... $ 13.32 $ 12.63 $ 10.68
Class B:
Net asset value and maximum
offering price per share (net
assets/shares outstanding) ............ $ 12.65 $ 12.03 $ --
=========== ============ ===========
Cost of investments .................... $72,361,792 $103,076,745 $24,086,327
=========== ============ ===========
</TABLE>
See notes to financial statements.
30
<PAGE>
Chase Vista Mutual Funds
Statement of Operations For the six months ended February 28, 1998
- --------------------------------------------------------------------------------
(unaudited)
<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) ............. $2,009,702 $2,680,055 $ 611,264
---------- ---------- ----------
EXPENSES: (Note 2)
Shareholder servicing fees ........... 94,998 124,352 30,278
Distribution fees .................... 129,787 158,958 30,278
Investment advisory fees ............. 113,997 149,223 36,333
Administration fees .................. 56,998 74,615 18,166
Custodian fees ....................... 31,602 31,579 22,011
Printing and postage ................. 7,809 6,575 4,959
Professional fees .................... 8,579 11,409 9,694
Registration costs ................... 19,069 4,000 3,000
Transfer agent fees .................. 61,397 63,962 15,166
Trustees fees and expenses ........... 1,900 2,487 606
Other ................................ 1,021 1,036 2,782
---------- ---------- ----------
Total expenses ..................... 527,157 628,196 173,273
Less amounts waived (Note 2E) .......... 149,088 150,840 100,607
---------- ---------- ----------
Net expenses ....................... 378,069 477,356 72,666
---------- ---------- ----------
Net investment income ............. 1,631,633 2,202,699 538,598
---------- ---------- ----------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on:
Investments ......................... 1,509,079 1,231,254 137,667
Futures transactions ................ (138,255) (138,224) --
Change in net unrealized
appreciation on investments ......... 1,072,877 2,076,108 430,809
---------- ---------- ----------
Net realized and unrealized gain on
investments and futures
transactions ........................ 2,443,701 3,169,138 568,476
---------- ---------- ----------
Net increase in net assets from
operations .......................... $4,075,334 $5,371,837 $1,107,074
========== ========== ==========
</TABLE>
See notes to financial statements.
31
<PAGE>
Chase Vista Mutual Funds
Statement of Changes in Net Assets (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
California
New York Intermediate
Tax Free Tax Free Tax Free
Income Fund Income Fund Fund
------------------------------ ------------------------------- -----------------------------
Six months Six months Six months
ended Year ended ended Year ended ended Year ended
February 28, August 31, February 28, August 31, February 28, August 31,
1998 1997 1998 1997 1998 1997
--------------- ---------- ------------ ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income ............. $ 1,631,633 $ 3,844,936 $ 2,202,699 $ 4,988,170 $ 538,598 $ 1,225,622
Net realized gain on
investments and futures
transactions ..................... 1,370,824 2,059,306 1,093,030 1,462,096 137,667 233,438
Change in net unrealized
appreciation on investments
and futures ...................... 1,072,877 1,329,149 2,076,108 2,526,782 430,809 451,860
----------- ----------- ------------ ------------ ----------- -----------
Increase in net assets
from operations ................. 4,075,334 7,233,391 5,371,837 8,977,048 1,107,074 1,910,920
----------- ----------- ------------ ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A .......................... (1,377,992) (3,281,406) (1,946,287) (4,449,039) (539,131) (990,238)
Class B .......................... (248,842) (564,009) (252,998) (507,112) -- --
Net realized gain on
investment transactions:
Class A .......................... -- -- (847,131) (190,592) (237,743) (224,564)
Class B .......................... -- -- (137,119) (26,031) -- --
----------- ----------- ------------ ------------ ----------- -----------
Total dividends and
distributions .................. (1,626,834) (3,845,415) (3,183,535) (5,172,774) (776,874) (1,214,802)
----------- ----------- ------------ ------------ ----------- -----------
Increase (decrease) from
capital share transactions
(Note 5) (4,036,643) 11,857,780) 6,514,754 (16,854,581) (1,599,875) (3,468,572)
----------- ----------- ------------ ------------ ----------- -----------
Total increase (decrease) ........ (1,588,143) (8,469,804) 8,703,056 (13,050,307) (1,269,675) (2,772,454)
NET ASSETS:
Beginning of period ............... 76,338,914 84,808,718 96,708,890 109,759,197 25,525,246 28,297,700
----------- ----------- ------------ ------------ ----------- -----------
End of period ..................... $74,750,771 $76,338,914 $105,411,946 $ 96,708,890 $24,255,571 $25,525,246
=========== =========== ============ ============ =========== ===========
</TABLE>
See notes to financial statements.
32
<PAGE>
Chase Vista Mutual Funds
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
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 Family of
Mutual Funds. Tax Free income Fund ("TFI"), New York Tax Free Income Fund
("NYTFI"), and California Intermediate Tax Free Fund ("CITF") (collectively the
"Funds"), are three separate portfolios of the Trust.
The TFI and NYTFI Funds offer two classes of shares, referred to as Class A
Shares and Class B Shares. Class B Shares were first available on November 4,
1993. Class A Shares generally provide for a front-end sales charge while Class
B Shares provide for a contingent deferred sales charge. All classes of shares
have equal rights as to earnings, assets and voting privileges, except that each
class may bear different distribution expenses and each class has exclusive
voting rights with respect to its distribution plan.
The following is a summary of significant accounting policies followed by the
Funds:
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. In connection with transactions in repurchase agreements, if the
seller defaults and the value of the collateral declines, or if the seller
enters into an insolvency proceeding, realization of the collateral by the
Trust may be delayed or limited.
C. Security transactions and investment income -- Investment transactions are
ac- counted for on the trade date (the date the order to buy or sell is
executed). Securities gains and losses are calculated on the identified cost
basis. Interest income is determined on the basis of coupon interest accrued,
adjusted for amortization of premiums and accretion of discount.
D. Futures contracts -- When a Fund enters into a futures contract, it makes
an initial margin deposit in a segregated account, either in cash or liquid
securities. Thereafter, the futures contract is marked to market and the fund
makes (or receives) additional cash payments daily to the broker. Changes in
the value of the contract are recorded as unrealized
appreciation/depreciation until the contract is closed or settled.
The Funds may enter into futures contracts only on exchanges or boards of
trade. The exchange or board of trade acts as the counterparty to each
futures transaction, therefore, the Fund's credit risk is limited to failure
of the exchange or board of trade.
33
<PAGE>
Chase Vista Mutual Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
The Funds invest in U.S. Treasury futures contracts as a hedge against market
volatility while maintaining a tax exempt income stream.
As of February 28, 1998, the Funds had no outstanding futures contracts.
E. Federal income taxes -- Each Fund is treated as a separate taxable entity
for Federal income tax purposes. The Trust's policy is to comply with the
provisions of the Internal Revenue Code applicable to regulated investment
companies and to distribute to shareholders all of its distributable net
investment income, and net realized gain on 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 distributed in the form of
additional shares of the Fund or, at the election of the shareholder, in cash
(subject to the policies of the Shareholder Servicing Agent) on the last
business day of the month. The net investment income of each Fund is
determined daily and (substantially all) is declared as a dividend to
shareholders of record at the time of such declaration. The amount of
dividends and distributions from net investment income and net realized
capital gains is determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
To the extent these "book/tax" differences are permanent in nature, (i.e.,
that they will result from other than timing of recognition -- "temporary
differences") such amounts are reclassified within the capital accounts based
on their Federal tax-basis treatment. Dividends and distributions which
exceed net investment income or net realized capital gains for financial
reporting purposes but not for tax purposes are reported as distributions in
excess of net investment income or net realized capital gains.
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. Except as described below, since
inception of the Trust, Chase and certain affiliates have been the only
Shareholder Servicing Agents. In 1996, certain Class A Shareholders of TFI
entered into a Shareholder Servicing arrangement with Charles
34
<PAGE>
Chase Vista Mutual Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
Schwab & Co. Chase's Shareholder Servicing charges amounted to $94,998 for
TFI. The Shareholder Servicing Agents voluntarily waived all or a portion
of their fees as outlined in Note 2.E. below.
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 TFI and NYTFI in accordance with Rule
12b-1 under the 1940 Act.
The Distribution Plans provide that each Fund shall pay distribution fees at
annual rates not to exceed 0.25% of each Fund's average daily net assets for
Class A Shares and 0.75% for Class B Shares.
The Distributor voluntarily waived all or a portion of distribution fees as
outlined in Note 2.E. below.
D. Administration fee -- Pursuant to an Administration Agreement, Chase (the
"Administrator") provides certain administration services to the Trust at a
fee computed at an annual rate equal to 0.10% of the respective Fund's
average daily net assets. The Administrator voluntarily waived all or a
portion of its administration fees as outlined in Note 2.E. below.
E. Waivers of fees -- For the six month period ended February 28, 1998, the
Adviser, Shareholder Servicing Agents, Distributor and Administrator
voluntarily waived fees for each of the Funds as follows:
<TABLE>
<CAPTION>
TFI NYTFI CITF
----------- ----------- ----------
<S> <C> <C> <C>
Administration ................ $ -- $ -- $ 10,046
Advisory ...................... 59,428 26,603 34,266
Distribution .................. 25,131 35,894 26,147
Shareholder Servicing ......... 64,529 88,343 30,148
-------- -------- --------
$149,088 $150,840 $100,607
======== ======== ========
</TABLE>
F. Other -- Certain officers of the Trust are officers of VFD or of its
parent corporation, BISYS.
Chase provides portfolio accounting and custody services for the Funds.
Compensation for such services are presented in the Statement of Operations
as custodian fees.
3. Investment Transactions -- Purchases and sales of investments (excluding
short-term investments) were as follows:
<TABLE>
<CAPTION>
TFI NYTFI CITF
-------------- -------------- -------------
<S> <C> <C> <C>
Purchases ......... $67,247,892 $61,017,728 $3,264,498
Sales ............. 79,338,107 53,794,744 3,591,495
</TABLE>
4. Federal Income Tax Matters -- For Federal income tax purposes, the cost and
unrealized appreciation/(depreciation) in value of the investment securities at
February 28, 1998, are as follows:
35
<PAGE>
Chase Vista Mutual Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TFI NYTFI CITF
------------ ------------ -----------
<S> <C> <C> <C>
Aggregate cost ........................ $72,361,792 $103,076,745 $24,086,327
----------- ------------ -----------
Gross unrealized appreciation ......... 3,377,965 5,776,289 1,057,333
Gross unrealized depreciation ......... (61,664) -- (2,363)
----------- ------------ -----------
Net unrealized appreciation/
(depreciation) ....................... $3,316,301 $ 5,776,289 $ 1,054,970
=========== ============ ===========
</TABLE>
5. Transactions in Shares of Beneficial Interest -- Transactions in Shares of
Beneficial Interest were as follows:
<TABLE>
<CAPTION>
Tax Free Income Fund
-----------------------------------------------------------------
Class A
-----------------------------------------------------------------
09/01/97
Through Year Ended
02/28/98 August 31, 1997
-------------------------------- --------------------------------
Amount Shares Amount Shares
---------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Shares sold ........................ $ 17,984,555 1,429,038 $ 31,436,949 2,592,275
Shares issued in reinvestment
of distributions ................. 892,466 70,749 2,112,003 173,448
Shares redeemed .................... (23,265,786) (1,848,288) (44,098,460) (3,624,885)
------------- ---------- ------------- ----------
Net increase (decrease) in
Trust shares outstanding ......... $ (4,388,765) (348,501) $ (10,549,508) (859,162)
============= ========== ============= ==========
<CAPTION>
Tax Free Income Fund
-----------------------------------------------------------------
Class B
-----------------------------------------------------------------
09/01/97
Through Year Ended
02/28/98 August 31, 1997
-------------------------------- --------------------------------
Amount Shares Amount Shares
---------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Shares sold ........................ $ 1,441,452 115,263 $ 3,749,421 311,222
Shares issued in reinvestment
of distributions ................. 178,847 14,266 402,547 33,284
Shares redeemed .................... (1,268,177) (101,591) (5,460,240) (452,103)
------------- ---------- ------------- ----------
Net increase (decrease) in
Trust shares outstanding ......... $ 352,122 27,938 $ (1,308,272) (107,597)
============= ========== ============= ==========
<CAPTION>
New York Tax Free Income Fund
---------------------------------------------------------------
Class A
---------------------------------------------------------------
09/01/97
Through Year Ended
02/28/98 August 31, 1997
-------------------------------- --------------------------------
Amount Shares Amount Shares
---------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Shares sold ........................ $ 14,780,126 1,229,528 $ 17,264,175 1,483,392
Shares issued in reinvestment
of distributions ................. 2,260,710 188,249 3,617,170 310,254
Shares redeemed .................... (10,899,879) (906,112) (37,063,699) (3,179,838)
------------- ---------- ------------- ----------
Net increase (decrease) in
Trust shares outstanding ......... $ 6,140,957 511,665 $ (16,182,354) (1,386,192)
============= ========= ============= ==========
</TABLE>
36
<PAGE>
Chase Vista Mutual Funds
Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
New York Tax Free Income Fund
----------------------------------------------------------------
Class B
----------------------------------------------------------------
09/01/97
Through Year Ended
02/28/98 August 31, 1997
------------------------------ -------------------------------
Amount Shares Amount Shares
--------------- ------------ --------------- -------------
<S> <C> <C> <C> <C>
Shares sold ........................ $1,193,755 99,849 $2,559,149 221,319
Shares issued in reinvestment
of distributions ................. 305,099 25,467 407,098 35,058
Shares redeemed .................... (1,125,057) (93,971) (3,638,474) (313,983)
---------- ------- ---------- --------
Net increase (decrease) in
Trust shares outstanding ......... $ 373,797 31,345 $ (672,227) (57,606)
========== ======= ========== ========
</TABLE>
<TABLE>
<CAPTION>
California Intermediate Tax Free Fund
-----------------------------------------------------------------
09/01/97
Through Year Ended
02/28/98 August 31,
------------------------------- -------------------------------
Amount Shares Amount Shares
--------------- ------------- --------------- -------------
<S> <C> <C> <C> <C>
Shares sold ........................ $ 320,969 31,591 $ 884,434 88,861
Shares issued in reinvestment
of distributions ................. 291,073 28,632 686,979 68,858
Shares redeemed .................... (2,211,917) (218,339) (5,039,985) (506,995)
----------- -------- ----------- --------
Net increase (decrease) in
Trust shares outstanding ......... $(1,599,875) (158,116) $(3,468,572) (349,276)
=========== ======== =========== ========
</TABLE>
6. Concentration of Credit Risk -- TFI, NYTFI and CITF invest substantially all
of their assets in a diversified portfolio of debt obligations issued by states,
territories and possessions of the United States and by the District of
Columbia, and by their political subdivisions and duly constituted authorities,
NYTFI and CITF primarily investing in issuers in the States of New York and
California, respectively. The issuer's abilities to meet their obligations may
be affected by economic or political developments in a specific state of 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 six months ended February 28, 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>
TFI ........... $ 797 $4,774
NYTFI ......... 1,040 6,140
CITF .......... 259 1,551
</TABLE>
37
<PAGE>
Chase Vista Mutual Funds
Financial Highlights (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Tax Free Income Fund
-----------------------------------------------------------------------
Class A
----------------------------------------------------------------------
09/01/97 Year Ended August 31, 11/1/93 Year
Through ----------------------------------- Through Ended
02/28/98 1997 1996 1995 8/31/94++ 10/31/93
---------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ...................... $ 12.32 $ 11.84 $ 11.85 $ 11.70 $ 12.70 $ 11.52
------- ------- ------- ------- ------- -------
Income from Investment Operations:
Net Investment Income ................................... 0.277 0.579 0.580 0.585 0.475 0.662
Net Gains or Losses in Securities
(both realized and unrealized) ......................... 0.400 0.484 (0.007) 0.147 (0.847) 1.412
------- ------- -------- ------- -------- -------
Total from Investment Operations ........................ 0.677 1.063 0.573 0.732 (0.372) 2.074
------- ------- -------- ------- -------- -------
Less Distributions:
Dividends from Net Investment Income .................... 0.277 0.583 0.583 0.582 0.475 0.662
Distributions from Capital Gains ........................ -- -- -- -- 0.153 0.237
------- ------- -------- ------- -------- -------
Total Distributions ..................................... 0.277 0.583 0.583 0.582 0.628 0.899
------- ------- -------- ------- -------- -------
Net Asset Value, End of Period ............................ $ 12.72 $ 12.32 $ 11.84 $ 11.85 $ 11.70 $ 12.70
======= ======= ======== ======= ======== =======
Total Return (1) .......................................... 5.54% 9.14% 4.88% 6.53% (2.99%) 18.72%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) .................. $60,337 $62,729 $ 70,480 $88,783 $98,054 $83,672
Ratios to average net assets:#
Ratio of expenses ........................................ 0.85% 0.90% 0.90% 0.85% 0.58% 0.23%
Ratio of net investment income ........................... 4.44% 4.78% 4.83% 5.07% 4.75% 5.25%
Ratio of expenses without waivers
and assumption of expenses .............................. 1.30% 1.29% 1.46% 1.47% 1.29% 1.20%
Ratio of net investment income
without waivers and assumption of
expenses to average net assets .......................... 3.99% 4.39% 4.27% 4.45% 4.04% 4.28%
Portfolio turnover rate ................................... 89% 147% 210% 233% 258% 149%
<CAPTION>
Tax Free Income Fund
-------------------------------------------------------------
Class B
-------------------------------------------------------------
09/01/97 Year Ended August 31, 11/4/93*
Through ------------------------------------- Through
02/28/98 1997 1996 1995 8/31/94++
--------- ------------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ............................... $ 12.25 $ 11.76 $ 11.77 $ 11.65 $ 12.51
------- ------- -------- ------- -------
Income from Investment Operations:
Net Investment Income ............................................ 0.228 0.484 0.486 0.498 0.423
Net Gains or Losses in Securities
(both realized and unrealized) .................................. 0.394 0.478 (0.006) 0.140 (0.707)
------- ------- -------- ------- --------
Total from Investment Operations ................................. 0.622 0.962 0.480 0.638 (0.284)
------- ------- -------- ------- --------
Less Distributions:
Dividends from Net Investment Income ............................. 0.222 0.472 0.490 0.518 0.423
Distributions from Capital Gains ................................. -- -- -- -- 0.153
------- ------- -------- ------- --------
Total Distributions .............................................. 0.222 0.472 0.490 0.518 0.576
------- ------- -------- ------- --------
Net Asset Value, End of Period ..................................... 12.65 $ 12.25 $ 11.76 $ 11.77 $ 11.65
======= ======= ======== ======= ========
Total Return (1) ................................................... 5.11% 8.30% 4.10% 5.70% (2.35%)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) ........................... $14,414 $13,610 $ 14,329 $14,265 $11,652
Ratios to average net assets:#
Ratio of expenses ................................................. 1.64% 1.64% 1.65% 1.61% 1.47%
Ratio of net investment income .................................... 3.67% 4.04% 4.08% 4.31% 3.95%
Ratio of expenses without waivers
and assumption of expenses ....................................... 1.80% 1.79% 1.95% 1.97% 1.81%
Ratio of net investment income
without waivers and assumption of
expenses to average net assets ................................... 3.51% 3.89% 3.78% 3.95% 3.61%
Portfolio turnover rate ............................................ 89% 147% 210% 233% 258%
</TABLE>
- -------
(1) Total return figures do not include the effect of any sales load.
# Short periods have been annualized.
* Commencement of offering of class of shares.
++ In 1994 TFI changed its fiscal year-end from October 31 to August 31.
See notes to financial statements.
38
<PAGE>
Chase Vista Mutual Funds
Financial Highlights (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
New York Tax Free Income Fund
--------------------------------------------------------------------------
Class A
--------------------------------------------------------------------------
09/01/97 Year Ended August 31, 11/1/93 Year
Through ------------------------------------ Through Ended
02/28/98 1997 1996 1995 8/31/94++ 10/31/93
----------- ----------- ----------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period .................... $ 11.80 $ 11.39 $ 11.47 $ 11.30 $ 12.27 $ 11.18
------- ------- -------- ------- ------- -------
Income from Investment Operations:
Net Investment Income ................................. 0.270 0.555 0.555 0.570 0.473 0.592
Net Gains or Losses on Securities
(both realized and unrealized) ....................... 0.378 0.432 (0.077) 0.167 (0.688) 1.281
------- ------- -------- ------- ------- -------
Total from Investment Operations ...................... 0.648 0.987 0.478 0.737 (0.215) 1.873
------- ------- -------- ------- ------- -------
Less Distributions:
Dividends from Net Investment Income .................. 0.270 0.554 0.558 0.567 0.472 0.591
Distributions from Capital Gains ...................... 0.117 0.023 -- -- 0.283 0.194
------- ------- -------- ------- ------- -------
Total Distributions ................................... 0.387 0.577 0.558 0.567 0.755 0.785
------- ------- -------- ------- ------- -------
Net Asset Value, End of Period .......................... $ 12.06 $ 11.80 $ 11.39 $ 11.47 $ 11.30 $ 12.27
======= ======= ======== ======= ======= =======
Total Return (1) ........................................ 5.53% 8.85% 4.20% 6.82% (1.81%) 17.31%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) ................ $91,227 $83,208 $ 96,102 $104,168 $103,113 $120,809
Ratios to average net assets:#
Ratio of expenses ...................................... 0.85% 0.90% 0.90% 0.85% 0.76% 0.75%
Ratio of net investment Income ......................... 4.54% 4.77% 4.76% 5.11% 4.89% 4.86%
Ratio of expenses without waivers
and assumption of expenses ............................ 1.19% 1.18% 1.27% 1.37% 1.25% 1.11%
Ratio of net investment income without
waivers and assumption of expenses .................... 4.20% 4.49% 4.39% 4.59% 4.40% 4.50%
Portfolio turnover rate ................................. 54% 107% 156% 122% 162% 150%
<CAPTION>
New York Tax Free Income Fund
--------------------------------------------------------------------
Class B
--------------------------------------------------------------------
09/01/97 Year Ended August 31, 11/41/93*
Through ---------------------------------------- Through
02/28/98 1997 1996 1995 8/31/94++
--------- ------------ ------------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ......................... $ 11.76 $ 11.33 $ 11.41 $ 11.27 $ 12.11
------- ------- ------- ------- --------
Net Investment Income ...................................... 0.223 0.465 0.469 0.485 0.419
Net Gains or Losses on Securities
(both realized and unrealized) ............................ 0.381 0.430 (0.086) 0.162 (0.543)
------- ------- ------- ------- --------
Total from Investment Operations ........................... 0.604 0.895 0.383 0.647 (0.124)
------- ------- ------- ------- --------
Less Distributions:
Dividends from Net Investment Income ....................... 0.217 0.442 0.463 0.507 0.433
Distributions from Capital Gains ........................... 0.117 0.023 -- -- 0.283
------- ------- ------- ------- --------
Total Distributions ........................................ 0.334 0.465 0.463 0.507 0.716
------- ------- ------- ------- --------
Net Asset Value, End of Period ............................... $ 12.03 $ 11.76 11.33 $ 11.41 $ 11.27
======= ======= ===== ======= ========
Total Return (1) ............................................. 5.18% 8.03% 3.46% 5.99% (1.11%)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) ..................... $14,185 $13,501 13,667 $10,633 $ 7,234
Ratios to average net assets:#
Ratio of expenses ........................................... 1.64% 1.64% 1.65% 1.61% 1.51%
Ratio of net investment Income .............................. 3.75% 4.03% 4.01% 4.35% 4.28%
Ratio of expenses without waivers
and assumption of expenses ................................. 1.69% 1.68% 1.76% 1.87% 1.76%
Ratio of net investment income without
waivers and assumption of expenses ......................... 3.70% 3.99% 3.90% 4.09% 4.03%
Portfolio turnover rate ...................................... 54% 107% 156% 122% 162%
</TABLE>
- -------
(1) Total return figures do not include the effect of any sales load.
# Short periods have been annualized.
* Commencement of offering of class of shares.
++ In 1994 NYTFI changed its fiscal year-end from October 31 to August 31.
See notes to financial statements.
39
<PAGE>
Chase Vista Mutual Funds
Financial Highlights (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
California Intermediate Tax Free Fund
--------------------------------------------------------------------
09/01/97 Year Ended August 31, 11/1/94 7/15/93*
Through ----------------------------------- Through Through
02/28/98 1997 1996 1995 8/31/94++ 10/31/93
---------- ----------- ----------- ----------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ....................... $ 10.07 $ 9.81 $ 9.89 $ 9.69 $ 10.30 $ 10.22
------- ------- ------ ------ ------- -------
Income from Investment Operations:
Net Investment Income .................................... 0.224 0.461 0.473 0.505 0.320 0.166
Net Gains or Losses on Securities
(both realized and unrealized) .......................... 0.230 0.256 0.013 0.200 (0.408) 0.081
------- ------- ------ ------ ------- -------
Total from Investment Operations ......................... 0.454 0.717 0.486 0.705 (0.088) 0.247
------- ------- ------ ------ ------- -------
Less Distributions:
Dividends from Net Investment Income ..................... 0.225 0.324 0.476 0.505 0.404 0.165
Distributions from Capital Gains ......................... 0.100 0.134 0.090 -- 0.118 --
------- ------- ------ ------ ------- -------
Total Distributions ...................................... 0.325 0.458 0.566 0.505 0.522 0.165
------- ------- ------ ------ ------- -------
Net Asset Value, End of Period ............................. $ 10.20 $ 10.07 $ 9.81 $ 9.89 $ 9.69 $ 10.30
======= ======= ====== ====== ======= =======
Total Return (1) ........................................... 4.57% 7.46% 5.00% 7.55% (0.86%) 2.42%
Ratios/Supplemental Data:
Net Assets, End of Period (000 omitted) ................... $24,256 $25,525 $28,298 $32,746 $36,264 $41,728
Ratios to average net assets:#
Ratio of expenses ......................................... 0.60% 0.60% 0.60% 0.52% 0.52% 0.52%
Ratio of net investment income ............................ 4.45% 4.65% 4.77% 5.24% 4.88% 4.83%
Ratio of expenses without waivers
and assumption of expenses ............................... 1.43% 1.33% 1.47% 1.40% 1.37% 1.33%
Ratio of net investment income
without waivers and assumption
of expenses .............................................. 3.62% 3.92% 3.90% 4.36% 4.03% 4.02%
Portfolio turnover rate .................................... 14% 66% 188% 94% 93% 40%
</TABLE>
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(1) Total return figures do not include the effect of any sales load.
# Short periods have been annualized.
+ Commencement of operations.
++ In 1994 CITF changed its fiscal year-end from October 31 to August 31.
See notes to financial statements.
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Chase Vista Service Center
P.O. Box 419392
Kansas City, MO 64179
Investment Adviser, Administrator,
Shareholder and Fund Servicing Agent
and Custodian
The Chase Manhattan Bank
Distributor
Vista Fund Distributors, Inc.
Transfer Agent
DST Systems, Inc.
Legal Counsel
Simpson Thacher & Bartlett
Independent Accountants
Price Waterhouse LLP
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.
The financial information in this report has
been taken from the books and records of the
Funds without examination by independent
accountants, who express no opinion thereto.
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.
April 1998 CVIS-3-498
