AUGUST 31, 1999
Chase Vista
Tax Free Funds
TAX FREE INCOME FUND ANNUAL REPORT
NEW YORK TAX FREE
INCOME FUND
CALIFORNIA
INTERMEDIATE TAX
FREE FUND
[Chase Vista Funds Logo]
ARTF-2-1099
<PAGE>
Highlights
o The US economy continued its record expansion during the reporting year as
unemployment fell to a 28-year low.
o After fears of a global economic downturn led the Fed to cut interest rates
three times early in the reporting period, the central bank subsequently
reversed course amid signs that a global recovery was underway.
o Although there were no sustained signs of inflationary pressures, long-term
interest rates began to rise in February and ended the reporting year higher.
Municipal bond yields were not immune to the effects of higher interest rates,
and prices fell as a result.
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 13
Fund Commentary o Portfolio of Investments
Chase Vista California Intermediate Tax Free
Fund 21
Fund Commentary o Portfolio of Investments
Financial Statements 28
Notes to Financial Statements 31
Financial Highlights 36
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 10, 1999
Dear Shareholder:
We are pleased to present this annual report for the Chase Vista Tax Free
Income Funds for the year ended August 31, 1999. Inside you will find
information on the performance of each fund along with a report from the
portfolio management team.
Fixed Income Markets Driven by Changing Perceptions
of Global Economy
One of the major economic and investing trends of the 1990s has been
globalization, and there is no doubt that the increasing interconnectedness of
economies around the world was a major factor in fixed income markets during
the reporting year.
The reporting year began with the Federal Reserve dramatically cutting interest
rates in order to avoid a global credit crunch created by a number of factors.
These included the ongoing effects of the Asian financial crisis, the breakdown
of the Russian financial system, continued sluggishness in Japan and Europe, and
currency and credit difficulties in Latin America. The combination of these
factors created a flight to the quality of U.S. Treasury securities and pushed
the yield on the benchmark 30-year bond to a low of 4.72% on October 5, 1998.
By the second half of the reporting period, signs of recovery in other parts of
the world, combined with ongoing strength in the U.S., drove interest rates
higher as bond market participants feared that the U.S. economy would overheat
and the Fed would begin hiking interest rates. Despite the fact that inflation
remained under control, the Fed did indeed begin to raise short-term rates
while the bond market pushed the benchmark 30-year Treasury to a reporting year
high of 6.28% on August 12, 1999. As the period ended with confirmation of
improvement in foreign economies, the fact that the U.S. growth showed no signs
of abating led to further negative sentiment in fixed income markets, which was
compounded by the fact that the Fed appeared likely to hike rates further.
As an investor in a Chase Vista Tax Free Fund, you enjoyed competitive dividend
yields during the reporting year. Our management team did an excellent job
protecting the overall value of your investment despite rising rates and
falling prices, and we are confident that our disciplined investment process
and experienced managers will continue to deliver strong relative performance
and competitive levels of tax-free income in the future. We appreciate the
confidence you have placed in us and look forward to serving your investment
needs well into the future.
Sincerely yours,
/s/ Fergus Reid
Fergus Reid
|
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<PAGE>
Chase Vista Tax Free Income Fund
as of August 31, 1999
(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 $56 Million $14 Million
Average maturity 23.8 years 23.8 years
Average duration 8.3 years 8.3 years
Average quality 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
|------|------|------|
| | | X | High
|------|------|------|
| | | | Med.
|------|------|------|
| | | | Low
|------|------|------|
Short Int. Long
|
4 |
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<PAGE>
Chase Vista Tax Free Income Fund
as of August 31, 1999
(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 -1.33% for the year ended August 31, 1999 (Class A
shares, without sales charges). This compares to a return of -1.73% for the
Lipper General Municipal Debt Funds Average and .50% for the unmanaged Lehman
Municipal Bond Index.
How the Fund Was Managed
With its longer-than-benchmark duration, the Fund benefited as interest rates
continued their sharp decline in September and early October of 1998 in
response to dramatic action by the Fed to loosen monetary policy in light of
global economic concerns. However, rates on municipal bonds fell less sharply
than those on Treasuries with comparable maturities and by early October the
average 30-year tax-exempt municipal bond was providing yields that were
actually higher than that of the taxable 30-year U.S. Treasury bond.
The management team took advantage of the unusually high relative rates of
municipal bonds by extending the Fund's duration (and hence its interest rate
sensitivity) and over-weighting New York bonds whose yields were higher (and
prices were lower) than those of other areas. By the end of October, with supply
increasing more than expected, the management team maintained duration levels
and focused on increasing quality, a move which began to pay off as 1998 ended.
When supply sputtered in early 1999, the Fund's long duration once again proved
beneficial.
In early February, the management team's relative value analysis led it to cut
duration to take advantage of steepness in the 10 to 15 year part of the yield
curve. While this area of the curve was subsequently hurt by unexpected selling
by crossover buyers (pensions, life insurance companies and arbitrage accounts
that move quickly among markets), the Fund maintained its disciplined investing
approach as the yield advantage in the middle part of the yield curve became
even more pronounced. This focus had the net affect of reducing duration.
As the reporting year came to a close, the management team's shorter relative
duration and continued focus on the 10-year part of the yield curve had begun
to be a positive factor in performance.
Where the Fund May Be Headed
Moving into the new reporting year, the Fund has begun to slowly lower duration
and concentrate purchases in the 10 to 15 years range, where greater than 90%
of the yield curve can be obtained without undertaking commensurate long bond
risk. Given that a higher interest rate environment is typically attractive to
retail investors, the Fund intends to remain focused on those securities most
attractive to these buyers in order to maintain maximum liquidity.
|
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<PAGE>
Chase Vista Tax Free Income Fund
as of August 31, 1999
(unaudited)
How Much of the Fund Was Invested
[Start 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>
1 Year 5 Years 10 Years
------ ------- --------
<S> <C> <C> <C>
Class A Shares
Without Sales Charge -1.33% 5.65% 7.59%
With Sales Charge* -5.77% 4.68% 7.10%
Class B Shares+
Without CDSC -2.23% 4.79% 7.06%
With CDSC** -6.95% 4.46% 7.06%
</TABLE>
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.
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6 |
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<PAGE>
Chase Vista Tax Free Income Fund
as of August 31, 1999
(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.
{Start Mountain Chart}
Chase Vista Tax Free Income Fund
Lehman Muni Bond Index
Lipper General Muni Debt Funds Avg.
<TABLE>
<S> <C> <C> <C>
1989 9,555 10,000 10,000
1990 10,032 10,642 10,477
1991 11,423 11,898 11,707
1992 13,147 13,228 13,041
1993 15,360 14,796 14,657
1994 15,083 14,817 14,484
1995 16,069 16,132 15,544
1996 16,853 16,975 16,273
1997 18,394 18,548 17,713
1998 20,120 20,152 19,164
1999 19,853 20,315 18,848
</TABLE>
[End End 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, 1989 to
August 31, 1999. 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 267 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.
|
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<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments August 31, 1999
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------
Long Term Municipal Bonds -- 95.4%
- ------------------------------------------------------------------
<S> <C> <C>
Alabama -- 10.3%
$ 7,000 Alabama State, Ser. A, GO, 5.50%,
10/01/01 $ 7,189
-------
California -- 8.3%
150 California Board of Regents, UCLA,
Educational Facilities Authority, Rev.,
7.00%, 09/01/00 - 158
150 California Educational Facilities Authority,
Pepperdine Univ., Rev., 7.20%,
11/01/15 159
2,500 San Francisco, California, City & County
Community International Airport, 2nd
Ser., Issue 18A, Rev., 5.25%, 05/01/12 2,498
2,800 South Orange County Public Financing
Authority, Senior Lien, Ser. A, Rev.,
6.20%, 09/01/13 @ 2,986
-------
5,801
-------
Connecticut -- 2.2%
1,700 Mashantucket Western Pequot Tribe
Connecticut, Special Rev., Ser. A, Rev.,
5.50%, 09/01/28 1,558
-------
Georgia -- 5.3%
2,000 Fulton County, Georgia, School District,
GO, 5.25%, 01/01/15 1,973
2,000 Georgia State, GO, 4.00%, 07/01/12 1,760
-------
3,733
-------
Illinois -- 0.3%
150 Chicago O'Hare International Airport,
Ser. A, Rev., 7.50%, 01/01/03 154
65 Illinois Housing Development Authority,
Ser. A, Rev., 8.00%, 06/01/26 68
-------
222
-------
</TABLE>
See notes to financial statements.
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<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
Kansas -- 3.5%
$ 2,355 Kansas City, Kansas, Utility System,
Rev., 6.38%, 09/01/23 $ 2,478
-------
Maryland -- 0.1%
75 Maryland State Community Development
Administration, Housing &
Community Development, Single
Family, 2nd Ser., Rev., 7.60%,
04/01/23 77
-------
Massachusetts -- 1.6%
35 Massachusetts State Housing Finance
Authority, Rev., 7.75%, 12/01/20 35
1,000 New England Education Loan Marketing
Corp., Massachusetts Student Loan,
Sub-Issue H, Rev., 6.90%, 11/01/09 1,085
-------
1,120
-------
Michigan -- 2.3%
1,000 Michigan State Housing Authority,
Rental Housing, Ser. B,
Rev., 7.55%, 04/01/23 1,051
500 Wayne County Building Authority,
Ser. A, GO, 8.00%, 03/01/02 - 552
-------
1,603
-------
Missouri -- 1.1%
720 Sikeston Missouri Electric, Rev., 6.00%,
06/01/16 766
-------
Montana -- 1.6%
1,100 Montana State, Long Range Building
Program, Ser. D, GO, 5.38%,
08/01/12 1,108
-------
Nevada -- 0.1%
100 Nevada Housing Division, Single Family,
Rev., 8.20%, 10/01/19 105
-------
</TABLE>
See notes to financial statements.
|
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<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
New Jersey -- 10.0%
$ 3,455 Middletown, New Jersey, Board of
Education, GO, 5.80%, 08/01/20 @ $3,518
1,500 New Jersey State, Educational Facilities
Authority, Fairleigh Dickinson
University, Ser. G, Rev., 5.70%,
07/01/28 1,404
2,000 New Jersey State, Transportation Trust
Fund Authority, Ser. A, Rev., 5.75%,
06/15/15* 2,083
------
7,005
------
New York -- 25.5%
2,000 Long Island Power Authority, New York,
Electric Systems, Ser. A, Rev., 5.50%,
12/01/13 2,035
2,450 New York City, New York, Ser. A, GO,
6.25%, 08/01/09 2,644
New York City, New York, IDA,
2,500 IDR, Brooklyn Navy Yard Cogen
Partners Project, Rev., 5.75%,
10/01/36 2,363
470 Mt. St. Vincent College, Rev., 7.00%,
05/01/08 502
1,700 New York State, Dorm Authority,
New York University Educational
Facilities, Ser. A, Rev., 5.75%,
07/01/27 1,738
Port Authority of New York & New Jersey,
5,000 Consolidated 93rd Ser., Rev., 6.13%,
06/01/2094 5,342
1,500 Consolidated 114th Ser., Rev., 4.75%,
08/01/33 1,293
2,000 Utica, New York, IDA, Civic Facility,
Munson-Williams-Proctor Institute
Project, Ser. A, Rev., 5.38%, 07/15/19 1,919
------
17,836
------
</TABLE>
See notes to financial statements.
|
10 |
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<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
Ohio -- 6.5%
$ 4,000 Cleveland, Ohio, Public Power System
First Mortgage, Ser. A, Rev., 7.00%,
11/15/04 - @ $ 4,529
-------
Oklahoma -- 6.7%
2,000 Oklahoma Housing Finance Agency,
Single Family, Ser. B-2, Rev., 6.80%,
09/01/26 2,164
2,500 Oklahoma State, Turnpike Authority,
Ser. A, Rev., 5.25%, 01/01/13 2,504
-------
4,668
-------
Pennsylvania -- 4.2%
3,000 Delaware Valley, Pennsylvania, Regional
Finance Authority, Local Government,
Ser. A, Rev., 5.50%, 08/01/28 2,961
-------
Puerto Rico -- 0.1%
75 Puerto Rico Urban Renewal & Housing,
Rev., 7.88%, 10/01/04 77
-------
South Carolina -- 0.7%
South Carolina Housing Finance &
Development Authority, Fairway Apts.
Project,
250 Rev., 7.63%, 04/01/33 259
235 Ser. B, Rev., 7.80%, 07/01/09 240
-------
499
-------
South Dakota -- 0.1%
100 South Dakota Housing Development
Authority, Ser. A, Rev., 5.88%,
05/01/12 102
-------
Utah -- 0.4%
250 Utah State Board of Regents, Student
Loan, Ser. F, Rev., 7.45%, 11/01/08 264
-------
Virgin Islands -- 4.1%
3,000 Virgin Islands Public Finance Authority,
Ser. A, Rev., 5.50%, 10/01/22 2,832
-------
</TABLE>
See notes to financial statements.
|
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<PAGE>
Chase Vista Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ------------------------------------------------------------------
<S> <C> <C>
Washington -- 0.4%
$ 250 Washington State Public Power Supply,
Nuclear Project, Ser. B, Rev., 7.25%,
07/01/09 $ 283
- ------------------------------------------------------------------
Total Long Term Municipal Bonds
(Cost $67,330) 66,816
- ------------------------------------------------------------------
Short Term Investments--7.7%
- ------------------------------------------------------------------
Floating Rate Demand Note -- 1.7%
1,200 Long Island Power Authority, New York
Electric System, Sub-Ser. 5,
Rev., 2.70%, 09/01/99
(Cost $1,200) 1,200
-------
Shares
Money Market Funds -- 6.0%
2,031 Provident Municipal Cash Money Market
Fund 2,031
2,190 Provident Municipal Money Market Fund 2,190
-------
Total Money Market Funds
(Cost $4,221) 4,221
- ------------------------------------------------------------------
Total Short Term Investments
(Cost $5,421) 5,421
- ------------------------------------------------------------------
Total Investments -- 103.1%
(Cost $72,751) $72,237
- ------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
Index:
- - -- The maturity date shown is the date of the prerefunded call.
* -- When Issued security.
@ -- All or a portion of this security is segregated for When Issued
securities.
Dorm -- Dormitory.
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, 1999.
GO -- General Obligation Bond.
IDA -- Industrial Development Authority.
IDR -- Industrial Development Revenue.
Rev. -- Revenue Bond.
</TABLE>
See notes to financial statements.
|
12 |
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<PAGE>
Chase Vista New York Tax Free Income Fund
as of August 31, 1999
(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 $87 Million $15 Million
Average maturity 19.7 years 19.7 years
Average duration 8.2 years 8.2 years
Average quality 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
|------|------|------|
| | | | High
|------|------|------|
| | | X | Med.
|------|------|------|
| | | | Low
|------|------|------|
Short Int. Long
|
| 13
|
<PAGE>
Chase Vista New York Tax Free Income Fund
as of August 31, 1999
(unaudited)
How the Fund Performed
Chase Vista New York Tax Free Income Fund, which seeks to provide income exempt
from Federal as well as New York state and local taxes through a portfolio of
higher-quality and longer-term municipal bonds, had a total return of -1.60%
for the year ended August 31, 1999 (Class A shares, without sales charges).
This compares to a return of -1.64% for the Lipper New York Tax Exempt
Municipal Debt Funds Average and .50% for the unmanaged Lehman Municipal Bond
Index.
How the Fund Was Managed
With its longer-than-benchmark duration, the Fund benefited as interest rates
continued their sharp decline in September and early October of 1998 in
response to dramatic by the Fed to loosen monetary policy in light of global
economic concerns. The management team extended the Fund's duration (and hence
its interest rate sensitivity) when yields on New York issues moved higher in
expectation of a huge new issue from Long Island Power Authority and the
management team bought heavily with an eye on long-term yield.
When supply was subsequently even heavier than expected, the Fund initially
suffered from its aggressive duration, but the management team decided against
cutting duration by selling what were essentially irreplaceable, non-callable
higher yielding bonds and thereby realizing gains that would be taxable to
shareholders. Instead, the management team decided to ride through the difficult
period and focus on increasing quality and, by the end of the 1998, this focus
on quality began to pay off and the Fund ended the year strongly.
In early February, the management team's relative value analysis led it to cut
duration to take advantage of steepness in the 10 to 15 year part of the yield
curve. While this area of the curve was subsequently hurt by unexpected selling
by crossover buyers (pensions, life insurance companies and arbitrage accounts
that move quickly among markets), the Fund maintained its disciplined investing
approach as the yield advantage in the middle part of the yield curve became
even more pronounced.
As the reporting year came to a close, the management team's shorter relative
duration and continued focus on the 10-year part of the yield curve had begun
to be a positive factor in performance. In effect, the relative value approach
paid off, although it did take longer than anticipated. The Fund also began
investing in higher-yielding paper in an effort to increase income. This final
move proved doubly positive as the Fund not only had more income with which to
offset falling prices, but also benefited from the fact that high-yield
municipal bonds tend to have less principal erosion than municipal issues of
comparable maturity in a rising rate environment.
Where the Fund May Be Headed
Moving into the new reporting year, the Fund maintains its focus on high-yield
municipal bonds and has begun to slowly decrease duration. Given that a higher
interest rate environment is typically attractive to retail investors, the Fund
intends to remain focused on those securities most attractive to these buyers
in order to maintain maximum liquidity.
|
14 |
|
<PAGE>
Chase Vista New York Tax Free Income Fund
as of August 31, 1999
(unaudited)
How Much of the Fund Was Invested
[Start Pie Chart]
Investments (98.5%)
Chas/Other (1.5%)
[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 -1.60% 5.38% 6.94%
With Sales Charge* -6.03% 4.42% 6.45%
Class B Shares+
Without CDSC -2.47% 4.56% 6.46%
With CDSC** -7.14% 4.22% 6.46%
</TABLE>
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.
|
| 15
|
<PAGE>
Chase Vista New York Tax Free Income Fund
as of August 31, 1999
(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.
[Start Mountain Chart]
Chase Vista New York Tax Free Income Fund
Lehman Muni Bond Index
Lipper New York Tax Exempt
Muni Debt Funds Avg.
<TABLE>
<S> <C> <C> <C>
1989 9,555 10,000 10,000
1990 9,971 10,642 10,490
1991 11,160 11,898 11,709
1992 12,675 13,228 13,103
1993 14,500 14,796 14,775
1994 14,375 14,817 14,573
1995 15,355 16,132 15,490
1996 16,000 16,975 16,185
1997 17,416 18,548 17,605
1998 18,988 20,152 19,064
1999 18,688 20,315 18,744
</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, 1989 to August 31, 1999. 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 100 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.
|
16 |
|
<PAGE>
Chase Vista New York Tax Free Income Fund
Portfolio of Investments August 31, 1999
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ----------------------------------------------------------------------
Long Term Municipal Bonds -- 94.2%
- ----------------------------------------------------------------------
<S> <C> <C>
$ 1,825 Metropolitan Transportation Authority,
New York, Transit Facilities, Ser. A,
Rev., 4.75%, 07/01/24 $ 1,574
550 Monroe County, New York, IDA, Public
Improvement, Canal Ponds Park,
Ser. A, Rev., 7.00%, 06/15/13 588
6,925 Nassau County, New York, Ser. P, GO,
6.40%, 11/01/04 - 7,670
New York City, New York,
1,000 Ser. A, GO, 6.25%, 08/01/08 1,089
1,000 Ser. B, GO, 7.50%, 02/01/03 1,080
160 Ser. F, GO, 8.25%, 11/15/02 175
5,000 Ser. J, GO, 5.35%, 08/01/12 4,958
New York City, New York, IDA, Civic Facility,
475 Mt. St. Vincent College,
Rev., 7.00%, 05/01/08 507
1,430 New York Blood Center Inc. Project,
Rev., 7.20%, 05/01/04 - 1,582
1,500 YMCA Greater New York Project,
Rev., 5.80%, 08/01/16 1,493
New York City, New York, IDA, IDR,
3,000 Brooklyn Navy Yard Cogen Partners,
Rev., 5.65%, 10/01/28 2,798
3,010 Brooklyn Navy Yard Cogen Partners,
Rev., 6.20%, 10/01/22 3,051
New York City, New York, Municipal
Water Finance Authority, Water &
Sewer Systems,
130 Prerefunded, Ser. A, Rev., 7.00%,
06/15/01 - 138
605 Unrefunded Balance, Ser. A,
Rev., 7.00%, 06/15/09 638
2,550 New York State, Dorm Authority, Niagara
Nursing Home, Rev., 5.55%, 08/01/27 2,469
New York State, Environmental Facilities
Corp., PCR, State Water, Revolving Fund,
3,000 Rev., 5.75%, 06/15/12 3,132
705 Unrefunded Balance, Ser. A, Rev.,
7.25%, 06/15/10 753
</TABLE>
See notes to financial statements.
|
| 17
|
<PAGE>
Chase Vista New York Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ----------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ----------------------------------------------------------------------
<S> <C> <C>
New York State, Housing Finance
Authority,
$ 860 Unrefunded Balance, Rev., 8.00%,
11/01/08 $ 903
300 Rev., 6.95%, 08/15/12 319
4,005 New York State, Local Government
Assistance Corp., Ser. E, Rev., 5.25%,
04/01/16 3,922
745 New York State, Medical Care Facilities
Finance Agency, Unrefunded Balance,
Rev., 7.88%, 08/15/20 783
1,000 New York State, Municipal Bond Bank,
Buffalo Special Project, Rev., 6.88%,
03/15/06 1,057
2,000 New York State, Thruway Authority,
Service Contract, Local Highway &
Bridges, Rev., 6.00%, 04/01/11 2,095
2,205 New York State, Urban Development
Corp., Center for Individual
Innovation Project, Rev., 5.50%,
01/01/13 2,203
4,540 Niagara, New York, Frontier
Transportation Authority, Greater
Buffalo International Airport, Rev.,
5.75%, 04/01/04 4,753
Port Authority of New York & New Jersey,
5,000 Consolidated 93rd Ser.,
Rev., 6.13%, 06/01/2094 5,342
3,000 Special Obligation, 3rd Installment,
Special Project, KIAC-4,
Rev., 7.00%, 10/01/07 3,226
Puerto Rico Commonwealth,
2,000 GO, 6.00%, 07/01/16 2,136
3,500 Public Improvement, GO, 5.25%,
07/01/15 3,433
3,000 Puerto Rico Electric Power Authority,
Ser. EE, Rev., 4.75%, 07/01/24 2,599
</TABLE>
See notes to financial statements.
|
18 |
|
<PAGE>
Chase Vista New York Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ----------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ----------------------------------------------------------------------
<S> <C> <C>
$ 2,000 Puerto Rico Industrial, Medical &
Environmental PCFFA, Rev., 6.45%,
12/01/25 $ 2,081
5,000 Rensselaer, New York, Municipal Leasing
Corp., Rensselaer County Nursing
Home, Ser. A, Rev., 6.90%, 06/01/24 5,333
5,000 Suffolk County, New York, IDA, IDR,
Nissequogue Cogen Partners Facility,
Rev., 5.50%, 01/01/23 4,652
1,250 Triborough Bridge & Tunnel Authority,
New York, General Purpose, Ser. A,
Rev., 5.13%, 01/01/18 1,182
Virgin Islands, Public Finance Authority,
1,150 Senior Lien, Ser. A, Rev., 7.25%,
10/01/18 1,270
5,000 Matching Fund Lien Notes, Ser. B,
Rev., 5.50%, 10/01/22 4,719
1,150 Westchester County, New York, GO,
6.70%, 11/01/06 1,294
Westchester County, New York, IDA,
775 AGR Realty Co. Project, Rev., 5.75%,
01/01/02 788
2,000 Resource Recovery, Resco Co. Project,
Ser. A, Rev., 5.70%, 07/01/08 2,086
Westchester County, New York, IDA,
Civic Facility,
2,000 Children's Village Project, Ser. A,
Rev., 5.30%, 03/15/14 1,924
1,000 Rippowam-Cisqua School Project,
Rev., 5.75%, 06/01/29 959
Western Nassau County, New York,
Water Authority, Water Systems,
1,000 Rev., 5.50%, 05/01/16 999
2,000 Rev., 5.65%, 05/01/26 1,992
- ----------------------------------------------------------------------
Total Long Term Municipal Bonds
(Cost $95,721) 95,745
- ----------------------------------------------------------------------
</TABLE>
See notes to financial statements.
|
| 19
|
<PAGE>
Chase Vista New York Tax Free Income Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ----------------------------------------------------------------------
Short-Term Investments--4.6%
- ----------------------------------------------------------------------
<S> <C> <C>
Floating Rate Demand Notes -- 2.0%
$ 1,500 Long Island Power Authority, New York
Electric System, Sub-Ser. 5, Rev.,
2.70%, 09/01/99 $ 1,500
500 New York City, New York, Sub-Ser. A-8,
GO, 2.80%, 09/01/99 500
--------
Total Floating Rate Demand Notes
(Cost $2,000) 2,000
--------
Shares
Money Market Fund -- 2.6%
2,655 Provident New York Money Market Fund
(Cost $2,655) 2,655
- ----------------------------------------------------------------------
Total Short-Term Investments
(Cost $4,655) 4,655
- ----------------------------------------------------------------------
Total Investments -- 98.8%
(Cost $100,376) $100,400
- ----------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
Index:
- - -- The maturity date shown is the date of the prerefunded call.
Dorm -- Dormitory.
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, 1999.
GO -- General Obligation Bond.
IDA -- Industrial Development Authority.
IDR -- Industrial Development Revenue.
PCFFA -- Pollution Control Facilities Financing Authority.
PCR -- Pollution Control Revenue.
Rev. -- Revenue Bond.
</TABLE>
See notes to financial statements.
|
20 |
|
<PAGE>
Chase Vista California Intermediate Tax Free Fund
as of August 31, 1999
(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 $21 Million
Average maturity 9.5 years
Average duration 6.2 years
Average quality 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
|------|------|------|
| | X | | High
|------|------|------|
| | | | Med.
|------|------|------|
| | | | Low
|------|------|------|
Short Int. Long
|
| 21
|
<PAGE>
Chase Vista California Intermediate Tax Free Fund
as of August 31, 1999
(unaudited)
How the Fund Performed
Chase Vista California Intermediate Tax Free Fund, which seeks to provide
income that is exempt from Federal and California Franchise taxes through a
portfolio of higher-quality, intermediate-term municipal bonds, had a total
return of .28% for the year ended August 31, 1999 (Class A shares, without
sales charges). This compares to a return of .69% for the Lipper California
Intermediate Municipal Debt Funds Average and 1.76% for the unmanaged Lehman
California Intermediate Municipal Bond Index.
How the Fund Was Managed
With its longer-than-benchmark duration, the Fund benefited as interest rates
continued their sharp decline in September and early October of 1998 in
response to dramatic action by the Fed to loosen monetary policy in light of
global economic concerns. The management team extended the Fund's duration (and
hence its interest rate sensitivity) further in October to take advantage of
the fact that the yields on California municipal bonds were actually higher
than those on U.S. Treasuries of similar maturity.
When supply was subsequently even heavier than expected, the Fund initially
suffered from its aggressive duration, but the management team decided against
cutting duration by selling what were essentially irreplaceable, non-callable
higher yielding bonds and thereby realizing gains that would be taxable to
shareholders. Instead, the management team decided to ride through the difficult
period and focus on increasing quality and, by the end of the quarter, this
focus on quality began to pay off and the Fund ended the year strongly. When
supply sputtered in early 1999, the Fund's long duration once again proved
beneficial.
In early February, the management team's relative value analysis led it to
invest heavily in securities with maturities of 10 to 15 years to take
advantage of the steepness in this part of the yield curve. While the Fund was
hurt when this area of the curve was subsequently hurt by unexpected selling by
crossover buyers (pensions, life insurance companies and arbitrage accounts
that move quickly among markets), the Fund maintained its disciplined investing
approach as the yield advantage in the middle part of the yield curve became
even more pronounced.
In the final months of the reporting period, the management team sold bonds
with maturities of less than 10 years to take advantage of huge retail demand.
As the period ended, the management team's focus on the 10 to 15 year part of
the yield curve had begun to be a positive factor in performance. In effect,
the relative value approach paid off, although it did take longer than
anticipated.
Where the Fund May Be Headed
Moving into the new reporting year, the Fund has begun to decrease duration and
focus on those securities most attractive to investors in order to maintain
maximum liquidity.
|
22 |
|
<PAGE>
Chase Vista California Intermediate Tax Free Fund
as of August 31, 1999
(unaudited)
How Much of the Fund Was Invested
[Start Pie Chart]
Investments (98.1%)
Chas/Other (1.9%)
{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 0.28% 5.58% 4.79%
With Sales Charge* -4.23% 4.61% 4.01%
</TABLE>
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.
|
| 23
|
<PAGE>
Chase Vista California Intermediate Tax Free Fund
as of August 31, 1999
(unaudited)
Life of Fund 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.
[Start Mountain Chart]
Chase Vista California Intermediate Tax Free Fund
Lehman Muni Bond Index
Lehman California Intermediate Muni Bond Index
Lipper California Intermediate Muni Debt Funds Avg.
<TABLE>
<S> <C> <C> <C> <C>
1993 9,555 10,000 10,000 10,000
1994 9,697 10,205 10,321 10,253
1995 10,430 11,110 11,235 10,911
1996 10,951 11,691 11,725 11,379
1997 11,768 12,774 12,727 12,215
1998 12,687 13,879 13,690 13,051
1999 12,723 13,948 13,931 13,132
</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, 1999. 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 29 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.
|
24 |
|
<PAGE>
Chase Vista California Intermediate Tax Free Fund
Portfolio of Investments August 31, 1999
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ----------------------------------------------------------------------
Long Term Municipal Bonds -- 90.1%
- ----------------------------------------------------------------------
<S> <C> <C>
$ 1,000 California Educational Facilities Authority,
Stanford University, Ser. P, Rev.,
5.25%, 12/01/13 $ 1,007
1,000 California State, GO, 6.40%, 09/01/08 1,117
250 California State, Public Works Board,
Lease Revenue, Ser. A, Rev., 6.00%,
09/01/01 259
1,850 Contra Costa, California, Water District,
Ser. G, Rev., 5.75%, 10/01/14 1,899
1,995 Fallbrook, California, Unified High
School District, San Diego County,
GO, 5.38%, 09/01/12 2,041
1,000 Foothill/Eastern Corridor Agency,
California Toll Road, Rev., 5.00%,
01/15/06 1,009
1,000 Franklin-McKinley, California, School
District, GO, 6.00%, 07/01/16 1,068
375 Los Angeles, California, Unified School
District, Ser. A, GO, 6.00%, 07/01/15 400
1,000 Los Angeles County, California,
Transportation Commission, Sales Tax,
Proposition C, Second Ser., Ser. A,
Rev., 5.88%, 07/01/02 1,049
Northern California Power Agency,
Public Power,
340 Escrowed to Maturity, Ser. A,
Rev., 5.80%, 07/01/09 366
660 Unrefunded Balance, Rev., 5.80%,
07/01/09 709
1,000 Paramount, California, Unified School
District, TRAN, 4.25%, 09/29/00 1,006
1,000 Puerto Rico Electric Power Authority,
Ser. AA, Rev., 6.25%, 07/01/10 1,105
1,000 Redwood City, California, Elementary
School District, GO, 5.00%, 08/01/16 956
265 San Diego, California, Unified School
District, Ser. A, GO, 0.00%, 07/01/09 162
</TABLE>
See notes to financial statements.
|
| 25
|
<PAGE>
Chase Vista California Intermediate Tax Free Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ----------------------------------------------------------------------
Long Term Municipal Bonds -- (continued)
- ----------------------------------------------------------------------
<S> <C> <C>
$ 1,000 San Francisco, California, City & County
Airport Commission, International
Airport, Second Ser., Issue 18A,
Rev., 6.00%, 05/01/04 $ 1,067
1,000 Santa Clara County, California,
Financing Authority, Lease, Ser. A,
Rev., 5.75%, 11/15/13 1,053
75 South Pasadena, California, Unified
School District, Ser. C, GO, 0.00%,
11/01/07 51
1,200 South Orange County Public Financing
Authority, Senior Lien, Ser. A,
Rev., 6.20%, 09/01/13 1,280
1,000 University of California, UC Medical
Center, Rev., 10.00%, 07/01/06 1,305
- ----------------------------------------------------------------------
Total Long Term Municipal Bonds
(Cost $18,888) 18,909
- ----------------------------------------------------------------------
Short Term Investments--8.5%
- ----------------------------------------------------------------------
Floating Rate Demand Notes--4.3%
400 California State, Floating Rate Receipts,
3.10%, 09/01/99 400
300 Irvine Ranch, California Water District,
Capital Improvement Project, COP,
2.60%, 09/01/99 300
100 Orange County, California, Water
District, Project B, COP, 2.85%,
09/01/99 100
</TABLE>
See notes to financial statements.
|
26 |
|
<PAGE>
Chase Vista California Intermediate Tax Free Fund
Portfolio of Investments August 31, 1999 (continued)
(amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
- ----------------------------------------------------------------------
Short Term Investments -- (continued)
- ----------------------------------------------------------------------
<S> <C> <C>
$ 100 Regional Airports Improvement Corp.,
Los Angeles, California, Terminal
Facilities, Los Angeles International
Airport, Rev., 3.20%, 09/01/99 $ 100
-------
Total Floating Rate Demand Notes
(Cost $900) 900
-------
Shares
Money Market Fund--4.2%
876 Provident California Money Market Fund
(Cost $876) 876
- ----------------------------------------------------------------------
Total Short Term Investments
(Cost $1,776) 1,776
- ----------------------------------------------------------------------
Total Investments--98.6%
(Cost $20,664) $20,685
- ----------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
Index:
COP -- Certificates of Participation.
Floating Rate
Demand Notes -- The maturity date shown is the next interest reset date; the rate
shown is the rate in effect at August 31, 1999.
GO -- General Obligation Bond.
Rev. -- Revenue Bond.
TRAN -- Tax & Revenue Anticipation Notes.
</TABLE>
See notes to financial statements.
|
| 27
|
<PAGE>
Chase Vista Funds
Statement of Assets and Liabilities August 31, 1999
- --------------------------------------------------------------------------------
(amounts in thousands, except per share amounts)
<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) $72,237 $100,400 $ 20,685
Other assets ........................... 1 1 --
Receivables:
Investment securities sold ............ -- -- 59
Interest .............................. 971 1,522 316
Fund shares sold ...................... 20 4 31
------- -------- --------
Total Assets ........................ 73,229 101,927 21,091
------- -------- --------
LIABILITIES:
Payables:
Investment securities purchased ....... 2,088 -- --
Fund shares redeemed .................. 918 89 21
Dividends ............................. 81 105 36
Accrued liabilities: (Note 2)
Investment advisory fees .............. 3 19 --
Administration fees ................... 9 13 --
Shareholder servicing fees ............ 8 11 --
Distribution fees ..................... 9 10 --
Custody fees .......................... 12 17 8
Other ................................. 50 46 37
------- -------- --------
Total Liabilities ................... 3,178 310 102
------- -------- --------
NET ASSETS:
Paid in capital ......................... 70,580 101,746 20,562
Accumulated undistributed/
(overdistributed) net
investment income ...................... (96) (52) 189
Accumulated net realized gain (loss)
on investment transactions ............. 81 (101) 217
Net unrealized appreciation
(depreciation) of investments .......... (514) 24 21
------- -------- --------
Total Net Assets .................... $70,051 $101,617 $ 20,989
======= ======== ========
Shares of beneficial interest
outstanding ($.001 par value;
unlimited number of shares
authorized)
Class A Shares ......................... 4,642 7,615 2,144
Class B Shares ......................... 1,122 1,331 --
Class A:
Net asset value and redemption
price per share (net assets/shares
outstanding) ........................... $ 12.17 $ 11.36 $ 9.79
Maximum offering price per share
(net asset value per share/95.5%)....... $ 12.74 $ 11.90 $ 10.25
Class B:
Net asset value and maximum
offering price per share (net
assets/shares outstanding)* ............ $ 12.10 $ 11.34 $ --
======= ======== ========
Cost of investments ..................... $72,751 $100,376 $ 20,664
======= ======== ========
</TABLE>
- --------------
*Redemption may be subject to contingent deferred sales charge.
See notes to financial statements.
|
28 |
|
<PAGE>
Chase Vista Funds
Statement of Operations For the year ended August 31, 1999
- --------------------------------------------------------------------------------
(amounts in thousands)
<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) .......................... $ 3,778 $ 6,324 $ 1,092
-------- -------- --------
EXPENSES: (Note 2)
Investment advisory fees .......................... 220 364 71
Administration fees ............................... 110 182 36
Shareholder servicing fees ........................ 183 304 59
Distribution fees ................................. 257 379 59
Custodian fees .................................... 67 86 40
Printing and postage .............................. 22 39 6
Professional fees ................................. 37 36 33
Registration costs ................................ 37 1 10
Transfer agent fees ............................... 117 125 33
Trustees' fees and expenses ....................... 4 6 1
Other ............................................. 23 6 --
-------- -------- --------
Total expenses .................................. 1,077 1,528 348
Less amounts waived (Note 2E) ..................... 396 483 205
-------- -------- --------
Net expenses .................................... 681 1,045 143
-------- -------- --------
Net investment income .......................... 3,097 5,279 949
-------- -------- --------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments ..................................... 466 108 256
Futures transactions ............................ (74) (179) (37)
Change in net unrealized appreciation/
depreciation of investments and futures ......... (4,490) (6,828) (1,056)
-------- -------- --------
Net realized and unrealized loss on
investments and futures transactions ............ (4,098) (6,899) (837)
-------- -------- --------
Net increase (decrease) in net assets from
operations ...................................... $ (1,001) $ (1,620) $ 112
======== ======== ========
</TABLE>
See notes to financial statements.
|
| 29
|
<PAGE>
Chase Vista Funds
Statement of Changes in Net Assets For the year ended August 31,
- --------------------------------------------------------------------------------
(amounts in thousands)
<TABLE>
<CAPTION>
California
New York Intermediate
Tax Free Tax Free Tax Free
Income Fund Income Fund Fund
-------------------- -------------------- --------------------
1999 1998 1999 1998 1999 1998
-------- -------- --------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income ....................................... $ 3,097 $ 3,230 $ 5,279 $ 4,750 $ 949 $ 1,056
Net realized gain (loss) on investments and futures
transactions ............................................... 392 1,721 (71) 1,444 219 318
Change in net unrealized appreciation/depreciation of
investments and futures .................................... (4,490) 1,732 (6,828) 3,152 (1,056) 453
-------- -------- --------- -------- -------- --------
Increase (decrease) in net assets from operations ........... (1,001) 6,683 (1,620) 9,346 112 1,827
-------- -------- --------- -------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A .................................................... (2,576) (2,723) (4,734) (4,223) (949) (1,054)
Class B .................................................... (520) (510) (542) (514) -- --
Net realized gain on investment transactions:
Class A .................................................... -- -- (960) (847) (316) (238)
Class B .................................................... -- -- (134) (137) -- --
-------- -------- --------- -------- -------- --------
Total distributions to shareholders ....................... (3,096) (3,233) (6,370) (5,721) (1,265) (1,292)
-------- -------- --------- -------- -------- --------
Increase (decrease) from capital share transactions (Note 5) . (2,228) (3,413) (16,066) 25,339 (1,854) (2,064)
-------- -------- --------- -------- -------- --------
Total increase (decrease) in net assets .................... (6,325) 37 (24,056) 28,964 (3,007) (1,529)
NET ASSETS:
Beginning of period ........................................ 76,376 76,339 125,673 96,709 23,996 25,525
-------- -------- --------- -------- -------- --------
End of period .............................................. $ 70,051 $ 76,376 $ 101,617 $125,673 $ 20,989 $ 23,996
======== ======== ========= ======== ======== ========
</TABLE>
See notes to financial statements.
|
30 |
|
<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 (the "1940 Act"), as an
open-end, non-diversified management investment company. 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.
CVTFI and CVNYTFI 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 Fund's policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government agency
securities. All collateral is held by the Fund'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 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 (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.
|
| 31
|
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
As of August 31, 1999, 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 Fund'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 Fund 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 and distributions paid to
shareholders are recorded on the ex-dividend date. 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
income 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 of the Funds 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
(e.g. transfer agent fees), 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 "Adviser" ) 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.
|
32 |
|
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
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.
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, 1999, the Adviser,
Administrator, Shareholder Servicing Agents and Distributor voluntarily
waived fees for each of the Funds as follows (amounts in thousands):
<TABLE>
<CAPTION>
CVTFI CVNYTFI CVCITF
----- ------- ------
<S> <C> <C> <C>
Investment Advisory ........... $168 $ 69 $ 71
Administration ................ -- -- 16
Shareholder Servicing ......... 82 149 59
Distribution .................. 146 265 59
---- ---- ----
$396 $483 $205
==== ==== ====
</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 (amounts in
thousands):
<TABLE>
<CAPTION>
CVTFI CVNYTFI CVCITF
----- ------- ------
<S> <C> <C> <C>
Purchases ......... $70,839 $76,588 $23,601
Sales ............. 76,916 92,985 25,026
</TABLE>
|
| 33
|
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
4. Federal Income Tax Matters -- For Federal income tax purposes, the cost and
unrealized appreciation/(depreciation) in value of the investment securities at
August 31, 1999, are as follows (amounts in thousands):
<TABLE>
<CAPTION>
CVTFI CVNYTFI CVCITF
----- ------- ------
<S> <C> <C> <C>
Aggregate cost ........................ $72,751 $100,376 $20,664
------- -------- -------
Gross unrealized appreciation ......... $ 1,256 $ 2,243 $ 264
Gross unrealized depreciation ......... (1,770) (2,219) (243)
------- -------- -------
Net unrealized appreciation/
(depreciation) ....................... $ (514) $ 24 $ 21
======= ======== =======
</TABLE>
5. Transactions in Shares of Beneficial Interest -- Transactions in Shares of
Beneficial Interest were as follows (amounts in thousands):
<TABLE>
<CAPTION>
Tax Free Income Fund
--------------------------------------------
Class A
--------------------------------------------
Year Ended August 31,
1999 1998
------------------- -------------------
Amount Shares Amount Shares
------- ------ ------- ------
<S> <C> <C> <C> <C>
Shares sold ........................ $49,991 3,930 $38,661 3,059
Shares issued in reinvestment
of distributions ................. 1,705 134 1,779 140
Shares redeemed .................... (52,915) (4,152) (45,007) (3,560)
------- ------ ------- -------
Net decrease in Trust shares
outstanding ...................... $(1,219) (88) $(4,567) (361)
======= ====== ======= =======
</TABLE>
<TABLE>
<CAPTION>
Tax Free Income Fund
--------------------------------------------
Class B
--------------------------------------------
Year Ended August 31,
1999 1998
------------------- -------------------
Amount Shares Amount Shares
------- ------ ------- ------
<S> <C> <C> <C> <C>
Shares sold ........................ $ 4,030 316 $3,265 259
Shares issued in reinvestment
of distributions ................. 360 28 362 29
Shares redeemed .................... (5,399) (425) (2,473) (197)
------- ---- ------ ----
Net increase (decrease) in
Trust shares outstanding ......... $(1,009) (81) $1,154 91
======= ==== ====== ====
</TABLE>
<TABLE>
<CAPTION>
New York Tax Free Income Fund
--------------------------------------------
Class A
--------------------------------------------
Year Ended August 31,
1999 1998
------------------- -------------------
Amount Shares Amount Shares
------- ------ ------- ------
<S> <C> <C> <C> <C>
Shares sold ........................ $ 40,533 3,372 $45,437 3,787
Shares issued in reinvestment
of distributions ................. 4,452 373 4,132 344
Shares redeemed .................... (62,404) (5,230) (25,061) (2,084)
-------- ------ ------- ------
Net increase (decrease) in
Trust shares outstanding ......... $(17,419) (1,485) $24,508 2,047
======== ====== ======= ======
</TABLE>
|
34 |
|
<PAGE>
Chase Vista Funds
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
New York Tax Free Income Fund
--------------------------------------------
Class B
--------------------------------------------
Year Ended August 31,
1999 1998
------------------- -------------------
Amount Shares Amount Shares
------- ------ ------- ------
<S> <C> <C> <C> <C>
Shares sold ........................ $3,825 321 $2,898 242
Shares issued in reinvestment
of distributions ................. 503 42 498 42
Shares redeemed .................... (2,975) (249) (2,565) (214)
------ ---- ------ ----
Net increase in Trust shares
outstanding ...................... $1,353 114 $ 831 70
====== ==== ====== ====
</TABLE>
<TABLE>
<CAPTION>
California Intermediate Tax Free Fund
--------------------------------------------
Year Ended August 31,
1999 1998
------------------- -------------------
Amount Shares Amount Shares
------- ------ ------- ------
<S> <C> <C> <C> <C>
Shares sold ........................ $ 4,457 435 $ 2,222 219
Shares issued in reinvestment
of distributions ................. 490 48 564 56
Shares redeemed .................... (6,801) (671) (4,850) (478)
------- ---- ------- ----
Net decrease in Trust shares
outstanding ...................... $(1,854) (188) $(2,064) (203)
======= ==== ======= ====
</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, 1999, CVTFI invested
approximately 25.5% of its net 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, 1999, 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 (amounts in thousands):
<TABLE>
<CAPTION>
Pension Accrued
Expenses Pension Liability
-------- -----------------
<S> <C> <C>
CVTFI ........... $ 1.3 $ 7.3
CVNYTFI ......... 2.2 9.9
CVCITF .......... 0.4 2.4
</TABLE>
8. Bank Borrowings -- The Funds may borrow money for temporary or emergency
purposes. Any borrowings representing more than 5% of a Fund's total assets
must be repaid before the Fund may make additional investments. The Funds have
entered into an agreement, enabling them to participate with other Chase Vista
Funds in an unsecured line of credit with a syndicate of banks, which permits
borrowings up to $350 million, collectively. Interest is charged to each fund
based on its borrowings at an annual rate equal to the sum of the Federal Funds
Rate plus 0.35%. The Funds also pay a commitment fee of 0.075% per annum on the
average daily amount of the available commitment, which is allocated on a
pro-rata basis to the Funds. The commitment fee is included in Other expenses
on the Statement of Operations. Borrowings are payable on demand.
The Funds had no borrowings outstanding at August 31, 1999, nor at any time
during the year then ended.
|
| 35
|
<PAGE>
Chase Vista Funds
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Tax Free Income Fund
-------------------------------------------------------
Class A
-------------------------------------------------------
Year Ended August 31,
-------------------------------------------------------
1999 1998 1997 1996 1995
-------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ....... $ 12.89 $ 12.32 $ 11.84 $ 11.85 $ 11.70
-------- ------- -------- -------- --------
Income from Investment Operations:
Net Investment Income .................... 0.56 0.56 0.58 0.58 0.58
Net Gains or Losses in Securities
(both realized and unrealized) .......... (0.72) 0.57 0.48 (0.01) 0.15
-------- ------- -------- -------- -------
Total from Investment Operations ......... (0.16) 1.13 1.06 0.57 0.73
-------- ------- -------- -------- -------
Less Distributions:
Dividends from Net Investment Income ..... 0.56 0.56 0.58 0.58 0.58
Distributions from Capital Gains ......... -- -- -- -- --
-------- ------- -------- -------- --------
Total Distributions ...................... 0.56 0.56 0.58 0.58 0.58
-------- ------- -------- -------- --------
Net Asset Value, End of Period ............. $ 12.17 $ 12.89 $ 12.32 $ 11.84 $ 11.85
======== ======= ======== ======== ========
Total Return (1) ........................... (1.33%) 9.38% 9.14% 4.88% 6.53%
Ratios/Supplemental Data:
Net Assets, End of Period (millions) ....... $ 56 $ 61 $ 63 $ 70 $ 89
Ratios to Average Net Assets:
Expenses .................................. 0.75% 0.80% 0.90% 0.90% 0.85%
Net Investment Income ..................... 4.41% 4.44% 4.78% 4.83% 5.07%
Expenses Without Waivers and Assumption
of Expenses .............................. 1.37% 1.31% 1.29% 1.46% 1.47%
Net Investment Income Without Waivers
and Assumption of Expenses .............. 3.79% 3.93% 4.39% 4.27% 4.45%
Portfolio turnover rate .................... 102% 172% 147% 210% 233%
</TABLE>
<TABLE>
<CAPTION>
Tax Free Income Fund
-------------------------------------------------------
Class B
-------------------------------------------------------
Year Ended August 31,
-------------------------------------------------------
1999 1998 1997 1996 1995
-------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ....... $ 12.82 $ 12.25 $ 11.76 $ 11.77 $ 11.65
-------- -------- -------- -------- --------
Income from Investment Operations:
Net Investment Income .................... 0.45 0.45 0.48 0.49 0.50
Net Gains or Losses in Securities
(both realized and unrealized) .......... (0.72) 0.57 0.48 (0.01) 0.14
-------- ------- -------- -------- --------
Total from Investment Operations ......... (0.27) 1.02 0.96 0.48 0.64
-------- ------- -------- -------- --------
Less Distributions:
Dividends from Net Investment Income ..... 0.45 0.45 0.47 0.49 0.52
Distributions from Capital Gains ......... -- -- -- -- --
-------- ------- -------- -------- --------
Total Distributions ...................... 0.45 0.45 0.47 0.49 0.52
-------- ------- -------- -------- --------
Net Asset Value, End of Period ............. $ 12.10 $ 12.82 $ 12.25 $ 11.76 $ 11.77
======== ======= ======== ======== ========
Total Return (1) ........................... (2.23%) 8.45% 8.30% 4.10% 5.70%
Ratios/Supplemental Data:
Net Assets, End of Period (millions) ....... $ 14 $ 15 $ 14 $ 14 $ 14
Ratios to Average Net Assets:
Expenses .................................. 1.64% 1.64% 1.64% 1.65% 1.61%
Net Investment Income ..................... 3.52% 3.60% 4.04% 4.08% 4.31%
Expenses Without Waivers and Assumption
of Expenses .............................. 1.87% 1.81% 1.79% 1.95% 1.97%
Net Investment Income Without Waivers
and Assumption of Expenses .............. 3.29% 3.43% 3.89% 3.78% 3.95%
Portfolio turnover rate .................... 102% 172% 147% 210% 233%
</TABLE>
- -------
(1) Total return figures do not include the effect of any sales load.
See notes to financial statements.
|
36 |
|
<PAGE>
Chase Vista Funds
Financial Highlights (continued)
<TABLE>
<CAPTION>
New York Tax Free Income Fund
-------------------------------------------------------
Class A
-------------------------------------------------------
Year Ended August 31,
-------------------------------------------------------
1999 1998 1997 1996 1995
-------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ....... $ 12.18 $ 11.80 $ 11.39 $ 11.47 $ 11.30
-------- ------- ------- ------- -------
Income from Investment Operations:
Net Investment Income .................... 0.53 0.54 0.56 0.56 0.57
Net Gains or Losses on Securities
(both realized and unrealized) .......... (0.71) 0.50 0.43 (0.08) 0.17
-------- ------- ------- -------- -------
Total from Investment Operations ......... (0.18) 1.04 0.99 0.48 0.74
-------- ------- ------- -------- -------
Less Distributions:
Dividends from Net Investment Income ..... 0.53 0.54 0.56 0.56 0.57
Distributions from Capital Gains ......... 0.11 0.12 0.02 -- --
-------- ------- ------- ------- --------
Total Distributions ...................... 0.64 0.66 0.58 0.56 0.57
-------- ------- ------- ------- --------
Net Asset Value, End of Period ............. $ 11.36 $ 12.18 $ 11.80 $ 11.39 $ 11.47
======== ======= ======= ======= ========
Total Return (1) ........................... (1.60%) 9.03% 8.85% 4.20% 6.82%
Ratios/Supplemental Data:
Net Assets, End of Period (millions) ....... $ 87 $ 111 $ 83 $ 96 $ 104
Ratios to Average Net Assets:
Expenses .................................. 0.75% 0.79% 0.90% 0.90% 0.85%
Net Investment Income ..................... 4.46% 4.52% 4.77% 4.76% 5.11%
Expenses Without Waivers and Assumption
of Expenses .............................. 1.20% 1.21% 1.18% 1.27% 1.37%
Net Investment Income Without Waivers
and Assumption of Expenses ............... 4.01% 4.10% 4.49% 4.39% 4.59%
Portfolio turnover rate .................... 65% 91% 107% 156% 122%
</TABLE>
<TABLE>
<CAPTION>
New York Tax Free Income Fund
-------------------------------------------------------
Class B
-------------------------------------------------------
Year Ended August 31,
-------------------------------------------------------
1999 1998 1997 1996 1995
-------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ....... $ 12.16 $ 11.76 $ 11.33 $ 11.41 $ 11.27
-------- -------- ------- -------- --------
Income from Investment Operations:
Net Investment Income .................... 0.43 0.44 0.46 0.47 0.49
Net Gains or Losses on Securities
(both realized and unrealized) .......... (0.71) 0.51 0.43 (0.09) 0.16
-------- ------- ------- -------- -------
Total from Investment Operations ......... (0.28) 0.95 0.89 0.38 0.65
-------- ------- ------- -------- -------
Less Distributions:
Dividends from Net Investment Income ..... 0.43 0.43 0.44 0.46 0.51
Distributions from Capital Gains ......... 0.11 0.12 0.02 -- --
-------- ------- ------- -------- -------
Total Distributions ...................... 0.54 0.55 0.46 0.46 0.51
-------- ------- ------- -------- --------
Net Asset Value, End of Period ............. $ 11.34 $ 12.16 $ 11.76 $ 11.33 $ 11.41
======== ======= ======= ======== =======
Total Return (1) ........................... (2.47%) 8.27% 8.03% 3.46% 5.99%
Ratios/Supplemental Data:
Net Assets, End of Period (millions) ....... $ 15 $ 15 $ 14 $ 14 $ 11
Ratios to Average Net Assets:
Expenses .................................. 1.64% 1.64% 1.64% 1.65% 1.61%
Net Investment Income ..................... 3.58% 3.68% 4.03% 4.01% 4.35%
Expenses Without Waivers and Assumption
of Expenses .............................. 1.70% 1.71% 1.68% 1.76% 1.87%
Net Investment Income Without Waivers
and Assumption of Expenses ............... 3.52% 3.61% 3.99% 3.90% 4.09%
Portfolio turnover rate .................... 65% 91% 107% 156% 122%
</TABLE>
- -------
(1) Total return figures do not include the effect of any sales load.
See notes to financial statements.
|
| 37
|
<PAGE>
Chase Vista Funds
Financial Highlights (continued)
<TABLE>
<CAPTION>
California Intermediate Tax Free Fund
--------------------------------------------------------
Year Ended August 31,
--------------------------------------------------------
1999 1998 1997 1996 1995
------- ------- ------ ------ ------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net Asset Value, Beginning of Period ..................................... $ 10.29 $ 10.07 $ 9.81 $ 9.89 $ 9.69
------- ------- ------ ------ ------
Income from Investment Operations:
Net Investment Income .................................................. 0.41 0.45 0.46 0.48 0.51
Net Gains or Losses on Securities (both realized and unrealized) ....... (0.37) 0.32 0.26 0.01 0.20
------- ------- ------ ------ ------
Total from Investment Operations ....................................... 0.04 0.77 0.72 0.49 0.71
------- ------- ------ ------ ------
Less Distributions:
Dividends from Net Investment Income ................................... 0.41 0.45 0.33 0.48 0.51
Distributions from Capital Gains ....................................... 0.13 0.10 0.13 0.09 --
------- ------- ------ ------ ------
Total Distributions .................................................... 0.54 0.55 0.46 0.57 0.51
------- ------- ------ ------ ------
Net Asset Value, End of Period ........................................... $ 9.79 $ 10.29 $10.07 $ 9.81 $ 9.89
======= ======= ====== ====== ======
Total Return (1) ......................................................... 0.28% 7.81% 7.46% 5.00% 7.55%
Ratios/Supplemental Data:
Net Assets, End of Period (millions) ..................................... $ 21 $ 24 $ 26 $ 28 $ 33
Ratios to Average Net Assets:
Expenses ................................................................ 0.60% 0.60% 0.60% 0.60% 0.52%
Net Investment Income ................................................... 3.99% 4.38% 4.65% 4.77% 5.24%
Expenses Without Waivers and Assumption of Expenses ..................... 1.46% 1.44% 1.33% 1.47% 1.40%
Net Investment Income Without Waivers and Assumption of Expenses ........ 3.13% 3.54% 3.92% 3.90% 4.36%
Portfolio turnover rate .................................................. 111% 44% 66% 188% 94%
</TABLE>
- -------
(1) Total return figures do not include the effect of any sales load.
See notes to financial statements.
|
38 |
|
<PAGE>
Report of Independent Accountants
- --------------------------------------------------------------------------------
To the Trustees and Shareholders of
Mutual Fund Trust
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets and the 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, 1999, 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 five years in the period then ended, 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, 1999 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 11, 1999
|
| 39
|
<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, 1999. 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, 1999. The
information necessary to complete your income tax returns for the calendar year
ending December 31, 1999 will be received under separate cover.
FOR THE FISCAL YEAR ENDED AUGUST 31, 1999
o The dividends paid from net investment income are 92.10%, 86.81% and
94.35% 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 bond issued after August
7, 1986, which may be considered a tax preference item,
was 7.90%, 13.19% and 5.65% for CVTFI, CVNYTFI and
CVCITF, respectively.
o Long-term capital gain distributions were $0.002 and $0.090 per share
for CVNYTFI and CVCITF, respectively.
|
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CHASE VISTA TAX FREE FUNDS ANNUAL REPORT
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.
(C) The Chase Manhattan Corporation, 1999, 2000. All Rights Reserved.
October 1999
[Chase Vista Funds Logo]
Chase Vista Funds Fulfillment Center
393 Manley Street
West Bridgewater, MA 02379-1039
