PSTFI-1-199
Chase Vista New York Tax Free Income Fund
Supplement Dated November 4, 1999
Effective December 1, 1999
Class A and B Shares
Prospectus Dated December 29, 1998
The following replaces the third paragraph under the heading "The Fund's main
investment strategy" on page 9 of the prospectus in its entirety:
The Fund invests primarily in securities that are rated Baa or higher by
Moody's Investors Service, Inc. BBB or higher by Standard and Poor's
Corporation or the equivalent rating by another national rating organization or
unrated securities of comparable quality.
The Fund may invest up to 25% of Fund assets in lower-rated high yield municipal
obligations. Lower-rated securities are those which are rated Ba or lower by
Moody's, BB or lower by S&P or the equivalent by another national rating
organization or unrated securities of comparable quality at the time of
purchase. High yield securities in the Fund's portfolio may be rated as low as C
by Moody's or D by S&P, or the equivalent.
The following will be inserted after the third paragraph under the heading "The
Fund's main investment risks" on page 11 of the prospectus:
High yield debt securities may carry greater risks than securities which have a
higher credit rating, including a high risk of default. The yields of
lower-rated securities will move up and down over time. The credit rating of a
high yield security evaluates the ability of the issuer to make principal and
interest or dividend payments; it does not necessarily address its market value
risk. Ratings and market value may change, positively or negatively, from time
to time to reflect new developments regarding the issuer. However, since
ratings may not always change quickly and frequently enough to reflect these
new developments, the advisers perform their own analysis of high yield
issuers. Because of this, the Fund's performance may depend more on subjective
credit analysis than other funds which invest in investment-grade securities.
High yield securities are considered speculative, meaning there is a significant
risk that the issuer may not be able to repay principal or pay interest or
dividends on time. In addition, the issuer's other creditors may have the right
to be paid before holders of the high yield security.
During an economic downturn, a period of rising interest rates or a recession,
issuers of high yield securities that have a lot of debt may experience
financial problems. They may not have enough cash to make
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their payments. An economic downturn could also hurt the market for lower-rated
securities and the Fund.
The market for high yield securities is not as liquid as the markets for higher
rated securities. This means that it may be harder to sell high yield
securities, especially on short notice. The market could also be hurt by legal
or tax changes.
Securities which are rated C or D may not pay interest, may be in default or
may be considered to have an extremely poor chance of ever achieving any real
investment standing.
The cost of investing in high yield markets is usually higher than investing in
investment grade securities. That's because the Fund has to spend more money
for investment research and commissions.
Securities which are rated Baa by Moody's or BBB by S&P may have fewer
protective provisions and are generally more risky than higher rated
securities. The issuer may have trouble making principal and interest payments
when difficult economic conditions arise.
PSTF-36-1099
