--------------------------------------------------------------------------------
AUGUST 31, 2000
--------------------------------------------------------------------------------
TAX FREE INCOME FUND
NEW YORK TAX FREE
INCOME FUND
CALIFORNIA
INTERMEDIATE TAX
FREE FUND
Chase Vista
Tax Free Funds
ANNUAL REPORT
[CHASE LOGO]
THE RIGHT RELATIONSHIP IS EVERYTHING.[RegTM]
SATF-2-1000
<PAGE>
--------------------------------------------------------------------------------
Contents
--------------------------------------------------------------------------------
Chairman's Letter 1
Chase Vista Tax Free Income Fund 2
Fund Commentary
Chase Vista New York Tax Free Income Fund 4
Fund Commentary
Chase Vista California Intermediate
Tax Free Fund 6
Fund Commentary
Portfolio of Investments 8
Financial Statements 17
Notes to Financial Statements 20
Highlights
o The yield on the average AAA-rated municipal bond rose from 5.70% on
September 1, 1999 to 5.90% on February 29, 2000. A rally during the final
months of the reporting year pushed the yield down to 5.50% on August 31,
2000.
o Other than a bulge in new supply at the end of October 1999, there was very
little new issuance during the reporting year.
o With the U.S. economy slowing at the same time municipal yields became most
attractive relative to other fixed income securities, cross-over buyers such
as institutions and insurance companies entered the markets and led the rally
at the end of the reporting year.
-------------------------------|------------------------------------------------
NOT FDIC INSURED | May lose value / No bank guarantee
-------------------------------|------------------------------------------------
Chase Vista Funds are distributed by Vista Fund Distributors, Inc.
<PAGE>
--------------------------------------------------------------------------------
CHASE VISTA TAX FREE FUNDS
--------------------------------------------------------------------------------
Chairman's Letter
October 2, 2000
Dear Shareholder:
We are pleased to present this annual report for Chase Vista Tax Free Funds for
the year ended August 31, 2000. Inside, you will find information on the
performance of each Fund along with a report from the portfolio management team.
After Extended Burst of Growth, U.S. Economy Appears to Slow
For the great majority of the reporting year, the United States economy
continued to expand at a rapid pace, with GDP growth soaring well in excess of
the 3.5% that many analysts consider to be the Federal Reserve Board's maximum
non-inflationary trend rate. In response, the Fed continued its policy of
short-term interest rate increases, creating a generally negative backdrop for
the fixed-income markets. The exception was the long-term U.S. Treasury market,
which benefited from the February announcement and subsequent implementation of
a plan by the United States Treasury department to use proceeds of the budget
surplus to "buy back" longer-term Treasuries.
In June, with shifting economic data showing a slowing economy, investors
decided that the six Fed rate increases over the previous year had begun to take
effect. As evidence of a slowdown continued, the bullish view was that the Fed
would achieve another "soft landing" in which growth will moderate but not
disappear. However, with several potentially troubling issues on the
horizon--including the price of crude oil rising to all-time highs--investors
are eagerly awaiting the upcoming third quarter GDP figures to understand the
full extent of the economy's slowdown.
Municipal Bonds Rally at End of Reporting Year
Beyond the general issues facing the fixed-income markets, municipal bond
performance was driven by a variety of factors, especially supply and demand.
Specifically, there was a supply bulge at the end of October, followed by a
dearth of new supply at the end of 1999 and into 2000. Despite the lack of
supply, municipals generally underperformed Treasuries due to the dislocation
caused by the Treasury buyback program. However, as yields on municipals became
ever-more attractive, non-traditional and crossover buyers joined retail
investors in the market, with the resulting demand combining with the low new
supply to lead to four months of strong performance relative to other fixed
income securities at the end of the reporting period.
In this environment, your portfolio managers did an excellent job, maintaining
good relative performance while taking advantage of market tightness to upgrade
quality and call protection, moves which were continuing to pay off as the
reporting period ended.
All of us at Chase thank you for your continued investment and look forward to
helping you reach your financial goals for many years to come.
Sincerely yours,
/s/ Fergus Reid
---------------
Fergus Reid
Chairman
1
<PAGE>
--------------------------------------------------------------------------------
CHASE VISTA TAX FREE INCOME FUND
As of August 31, 2000 (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 6.00% (Class A Shares, without sales charges) for the year
ended August 31, 2000, as opposed to the Lehman Municipal Bond Index's return of
6.77%.
How the Fund Was Managed
As the reporting year began, management allowed the Fund's duration (a measure
of interest rate sensitivity) to shorten relative to its peer group, and this
proved beneficial in the rising interest rate environment of late 1999. As
supply began to shrink dramatically in early 2000, the Fund performed well as
the management team had built a portfolio overweight in better-structured,
non-callable bonds which were attractive to corporate purchasers looking for
longer-dated maturities in the wake of the U.S. Treasury's buyback program.
With the ongoing dearth of new supply causing the yield differential between
higher and lower quality municipal securities to compress--meaning that
investors were being paid very little in terms of extra yield for taking on
higher credit risk--the management team maintained its policy of focusing on
high-quality securities and improving security structure. Despite the lack of
supply, municipals lagged Treasuries due to the dislocation caused by the
Treasury buyback program.
As the reporting year progressed, the Fund's focus on high-quality, well-
structured and non-callable bonds began to pay off. For instance, the Fund was
able to take profits on its Puerto Rico holdings as these bonds, which enjoy
special tax-free status in all 50 states, began to trade in line with California
bonds given the extreme lack of California supply. At the end of the year, the
Fund's strategy involved buying what little new issuance there was and selling
to the retail market in specialty states which had the narrowest supply. The
Fund also benefited in the final months of the reporting year by having a
longer-than-benchmark duration as rates headed down.
Where the Fund May Be Headed
In the management team's view, the slowdown in the U.S. economy is real and
this, combined with a technical downturn in Treasuries as the buyback program
takes a breather until February, may create an opportunity in lower quality,
lower coupon bonds. The management team is therefore extending duration (and
interest rate sensitivity) a bit as new supply comes on the market and waiting
for the moment when spreads decompress sufficiently to make it worthwhile on a
yield basis to reverse the strategy that was so successful in the past reporting
year.
2
<PAGE>
CHASE VISTA TAX FREE INCOME FUND
As of August 31, 2000 (Unaudited)
Average Annual Total Returns
<TABLE>
<CAPTION>
1 Year 5 Years 10 Years
--------------------------------------------------------------------------------
<S> <C> <C> <C>
Class A Shares
Without Sales Charge 6.00% 5.54% 7.69%
With Sales Charge 1.26% 4.57% 7.19%
--------------------------------------------------------------------------------
Class B Shares
Without CDSC 5.16% 4.68% 7.08%
With CDSC 0.16% 4.35% 7.08%
--------------------------------------------------------------------------------
</TABLE>
10-Year Performance
<TABLE>
<CAPTION>
Chase Vista Lipper General
Tax Free Lehman Muni Muni Debt
Income Fund Bond Index Funds Avg.
<S> <C> <C> <C>
8/90 9550 10000 10000
8/91 10876.2 11179.7 11173.8
8/92 12517.4 12429.9 12447.4
8/93 14623.1 13902.9 13989.5
8/94 14359.3 13923.2 13824.5
8/95 15298 15158.1 14836.3
8/96 16044.1 15950.5 15532.5
8/97 17509.9 17428.3 16906.2
8/98 19148.9 18936.1 18291.3
8/99 18896.2 19030.4 17989.6
8/00 20027 20316 18892
</TABLE>
Source: Lipper Analytical Services. Past performance is not indicative of
future results. Investment return and principal value will fluctuate so that
shares, when redeemed, may be worth more or less than their original cost.
Sales charge for Class A Shares: 4.50%. Class B Shares CDSC: 5% for the
one-year period, 2% for the five-year period and 0% for the 10-year period.
The Fund commenced operations on 9/8/87. Class B Shares were introduced on
11/4/93. Performance for Class B Shares is based on historical expenses of the
predecessor Class A Shares, which are lower than the expenses for Class B
Shares. The Fund is currently waiving fees. The waiver may be terminated, which
would reduce performance.
The graph illustrates comparative performance of $10,000 (Class A), assumes
reinvestment of all distributions and includes a 4.50% sales charge. Performance
of the unmanaged average and index does not include sales charges, but includes
reinvestment of all distributions. The Lehman Municipal Bond Index is a
broad-based index that replicates the long-term, investment grade tax-exempt
bond market. The Lipper Average consists of funds that invest in municipal
bonds. Investors cannot invest directly in an index. Capital gains are subject
to federal income tax, 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.
3
<PAGE>
--------------------------------------------------------------------------------
CHASE VISTA NEW YORK TAX FREE INCOME FUND
As of August 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
How the Fund Performed
Chase Vista New York Tax Free Income Fund, which seeks to provide triple
tax-exempt income through a portfolio of higher-quality, longer-term municipal
bonds, had a total return of 5.68% (Class A shares, without sales charges) for
the year ended August 31, 2000. This compares to the 6.73% return of the Lehman
New York Municipal Bond Index and the 6.77% return of the Lehman Municipal Bond
Index.
How the Fund Was Managed
In the final four months of 1999, the Fund pursued a strategy of shortening its
relative duration--and therefore its sensitivity to rising interest rates--by
actively trading in the secondary market. Additionally, the management team took
advantage of heavy New York supply and widening spreads between securities based
on quality to add to its high yield positions and increase exposure to
non-callable hospital bonds.
In the first quarter of 2000, the Fund was hurt by having excess short-term cash
positions created by having to be prepared for redemptions from investors
looking to offset 1999 equity market capital gains. Specifically, as credit
spreads began to tighten in the new year given diminishing New York supply and
heavy demand, the management team did not want to chase the market and instead
chose to maintain its focus on non-callable, high-quality bonds, a strategy
which ultimately proved prescient as the reporting year progressed.
With low supply continuing in the second quarter of 2000, the Fund benefited
from its holdings in non-callable bonds. The Fund's holdings in Puerto Rico also
did quite well as these bonds, which enjoy special tax-free status in all 50
states, began to trade in line with California bonds given the extreme lack of
California supply. At the end of the year, the Fund's strategy involved buying
what little new issuance there was and selling into the retail market where
demand was highest. The Fund also benefited in the final months of the reporting
year by having a longer-than-benchmark duration as rates headed down.
Where the Fund May Be Headed
In the management team's view, the slowdown in the U.S. economy is real and
this, combined with a technical downturn in Treasuries as the buyback program
takes a breather until February, may create an opportunity in lower quality,
lower coupon bonds. The management team is therefore extending duration (and
interest-rate sensitivity) a bit as new supply comes on the market and waiting
for the moment when quality spreads decompress sufficiently to make it
worthwhile on a yield basis to reverse the strategy that was so successful in
the past reporting year.
4
<PAGE>
CHASE VISTA NEW YORK TAX FREE INCOME FUND
As of August 31, 2000 (Unaudited)
Average Annual Total Returns
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
1 Year 5 Years 10 Years
--------------------------------------------------------------------------------
<S> <C> <C> <C>
Class A Shares
Without Sales Charge 5.68% 5.16% 7.07%
With Sales Charge 0.88% 4.19% 6.58%
--------------------------------------------------------------------------------
Class B Shares
Without CDSC 4.66% 4.29% 6.48%
With CDSC -0.34% 3.95% 6.48%
--------------------------------------------------------------------------------
</TABLE>
10-Year Performance
<TABLE>
<CAPTION>
Chase Vista Lipper New York
New York Tax Free Lehman Muni Tax Exempt Muni Debt
Income Fund Bond Index Funds Average
<S> <C> <C> <C>
8/90 9550 10000 10000
8/91 10687.1 11179.7 11168.9
8/92 12136.9 12429.9 12559.3
8/93 13883.9 13902.9 14167.4
8/94 13763.5 13923.2 13982.7
8/95 14699.9 15158.1 14932.1
8/96 15316.4 15950.5 15599.1
8/97 16672.2 17428.3 17011.7
8/98 18178 18936.1 18470.6
8/99 17886.7 19030.4 18176.6
8/00 18914 20316 19156
</TABLE>
Source: Lipper Analytical Services. Past performance is not indicative of
future results. Investment return and principal value will fluctuate, so that
shares, when redeemed, may be worth more or less than their original cost.
Sales charge for Class A Shares: 4.50%. Class B Shares CDSC: 5% for the
one-year period, 2% for the five-year period and 0% for the 10-year period.
The Fund commenced operations on 9/8/87. Class B Shares were introduced on
11/4/93. Performance for Class B Shares is based on historical expenses of the
predecessor Class A Shares, which are lower than the expenses for Class B
Shares. The Fund is currently waiving fees. The waiver may be terminated, which
would reduce performance.
The graph illustrates comparative performance of $10,000 (Class A), assumes
reinvestment of all distributions and includes a 4.50% sales charge. Performance
of the unmanaged average and index does not include sales charges, but includes
reinvestment of all distributions. Comparison of Fund performance to the Lehman
New York Municipal Bond Index is not presented as the Index lacks 10 years of
history. The Lehman Municipal Bond Index is a broad-based index that replicates
the long-term, investment grade tax-exempt bond market. The Lipper Average
consists of funds that invest in New York tax-exempt municipal bonds. Investors
cannot invest directly in an index. Capital gains are subject to federal income
tax, 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.
5
<PAGE>
--------------------------------------------------------------------------------
CHASE VISTA CALIFORNIA INTERMEDIATE TAX FREE FUND
As of August 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
How the Fund Performed
Chase Vista California Intermediate Tax Free Fund, which seeks to provide double
tax-exempt income through a portfolio of higher quality, intermediate-term
municipal bonds, had a total return of 7.83% (Class A Shares, without sales
charges) for the year ended August 31, 2000. This compares to the return of
7.34% by the Lehman California Intermediate Municipal Bond Index.
How the Fund Was Managed
As the reporting year began, the management allowed the Fund's duration (a
measure of interest-rate sensitivity) to shorten relative to its peer group, and
this proved beneficial in the rising interest rate environment of late 1999. By
the beginning of 2000, the Fund had already begun lengthening duration through
its purchase of bonds in the 10- to 15-year range. As these bonds became the
focus of attention for non-traditional insurance buyers in early 2000, the Fund
performed very well.
In the spring, the management team had begun investing cash in higher-quality
bonds issued by Puerto Rico and the US Virgin Islands. These bonds, which enjoy
special tax-free status in all 50 states, began to trade in line with California
bonds given the extreme lack of California supply, and the management team took
the opportunity to book significant profits.
As the reporting year came to a close, the management team began to extend
duration again, moving out the curve to buy zero coupon bonds as spreads
relative to traditional municipals were wide. This helped performance
significantly in the summer as the lack of overall supply led to a generally
inactive market.
Where the Fund May Be Headed
In the management team's view, the slowdown in the U.S. economy is real and
this, combined with a technical downturn in Treasuries as the buyback program
takes a breather until February, may create an opportunity in lower quality,
lower coupon bonds. The management team is therefore extending duration (and
interest-rate sensitivity) a bit as new supply comes on the market and waiting
for the moment when quality spreads decompress sufficiently to make it
worthwhile on a yield basis to reverse the strategy that was so successful in
the past reporting year.
6
<PAGE>
CHASE VISTA CALIFORNIA INTERMEDIATE TAX FREE FUND
As of August 31, 2000 (Unaudited)
Average Annual Total Returns
<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Years 7/16/93
<S> <C> <C> <C>
--------------------------------------------------------------------------------
Class A Shares
Without Sales Charge 7.83% 5.63% 5.23%
With Sales Charge 2.99% 4.66% 4.55%
--------------------------------------------------------------------------------
</TABLE>
Life of Fund Performance
<TABLE>
<CAPTION>
Chase Vista Lehman California Lipper California
California Intermediate Lehman Muni Intermediate Intermediate Muni Debt
Tax Free Fund Bond Index Muni Bond Index Funds Avg.
<S> <C> <C> <C> <C>
7/93 9550 10000 10000 10000
8/94 9695.26 10205 10321 10253.1
8/95 10427.3 11110.2 11235.5 10911.1
8/96 10947.4 11691 11725.2 11379.9
8/97 11763.7 12774.2 12727.8 12215.7
8/98 12681.5 13879.2 13690.8 13051.6
8/99 12717.2 13948.4 13931.1 13132.3
8/00 13734 14890 14954 13989
</TABLE>
Source: Lipper Analytical Services. Past performance is not indicative of
future results. Investment return and principal value will fluctuate so that
shares, when redeemed, may be worth more or less than their original cost.
Sales charge for Class A Shares: 4.50%.
The graph illustrates comparative performance of $10,000 (Class A), assumes
reinvestment of all distributions and includes a 4.50% sales charge. Performance
of the unmanaged average and indices does not include sales charges, but
includes reinvestment of all distributions. The Fund is currently waiving fees.
The waiver may be terminated, which would reduce performance. The Lehman
Municipal Bond Index is a broad-based index that replicates the long-term,
investment grade tax-exempt bond market. The Lehman California Intermediate
Municipal Bond Index replicates the California intermediate-term, investment
grade tax-exempt bond market. The Lipper Average consists of funds that invest
in California intermediate-term, investment-grade municipal bonds. Investors
cannot invest directly in an index. Capital gains are subject to federal income
tax, 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.
7
<PAGE>
--------------------------------------------------------------------------------
CHASE VISTA TAX FREE INCOME FUND
Portfolio of Investments
--------------------------------------------------------------------------------
As of August 31, 2000
(Amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
----------------------------------------------------------------------------------------
Long-Term Municipal Securities -- 100.8%
----------------------------------------------------------------------------------------
<S> <C> <C>
California -- 7.1%
$ 150 California Educational Facilities Authority, Pepperdine
University, Rev., -, 7.20%, 11/01/00 $ 154
150 California State, Public Works Board, Regents of The
University of California, Ser. A, Rev., -, 7.00%, 09/01/00 153
1,000 Fullerton University Foundation, California, Auxiliary
Organization, Ser. A, Rev., 5.75%, 07/01/30 1,029
2,800 South Orange County, California, Public Financing
Authority, Special Tax, Senior Lien, Ser. A, *,
6.20%, 09/01/13 2,993
-------
4,329
Colorado -- 3.5%
2,000 Denver, Colorado, City & County Airport, Ser. A, Rev.,
6.00%, 11/15/17 2,091
Connecticut -- 2.5%
1,700 Mashantucket Western Pequot Tribe, Connecticut,
Special Obligation, Sub. Ser. A, Rev., 5.50%, 09/01/28 1,531
Illinois -- 4.6%
75 Chicago, Illinois, O'Hare International Airport, Ser. A,
Rev., 7.50%, 01/01/03 77
2,425 Regional Transportation Authority, Illinois, Rev.,
6.25%, 07/01/15 2,686
-------
2,763
Louisiana -- 5.2%
3,000 Louisiana Local Government Environment Facilities,
Community Development Authority, Capital Projects &
Equipment Acquisition Program, Rev., +, 6.55%, 09/01/25 3,125
Maryland -- 0.1%
50 Maryland State, Community Development
Administration, Department of Housing & Community
Development, Single Family Program, Second Ser.,
Rev., 7.60%, 04/01/23 51
Massachusetts -- 1.8%
1,000 New England Education Loan Marketing Corp.,
Massachusetts Student Loan, Sub-Issue H, Rev.,
6.90%, 11/01/09 1,111
Michigan -- 2.6%
1,000 Michigan State, Housing Development Authority, Rental
Housing, Ser. B, Rev., 7.55%, 04/01/23 1,031
500 Wayne County, Michigan, Building Authority, Ser. A,
GO, -, 8.00%, 03/01/02 535
-------
1,566
Missouri -- 1.3%
720 Sikeston, Missouri, Electric, Rev., 6.00%, 06/01/16 781
Nevada -- 0.1%
70 Nevada Housing Division, Single Family Housing,
Ser. A-3, Rev., 8.20%, 10/01/19 73
New Hampshire -- 5.7%
3,240 Manchester, New Hampshire, Housing & Redevelopment
Authority, Ser. A, Rev., 6.75%, 01/01/15 3,450
</TABLE>
See notes to financial statements.
8
<PAGE>
CHASE VISTA TAX FREE INCOME FUND
Portfolio of Investments (Continued)
As of August 31, 2000
(Amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
------------------------------------------------------------------------------------
Long-Term Municipal Securities -- Continued
------------------------------------------------------------------------------------
<S> <C> <C>
New Jersey -- 9.9%
$3,455 Middletown Township, New Jersey, Board of Education,
GO, *, 5.80%, 08/01/20 $ 3,563
1,500 New Jersey State, Educational Facilities Authority,
Fairleigh Dickinson University, Ser. G, Rev., 5.70%,
07/01/28 1,381
1,000 New Jersey State, Transportation Trust Fund Authority,
Transportation Systems, Ser. A, Rev., 5.75%, 06/15/15 1,061
-------
6,005
New York -- 26.3%
440 New York City, New York, IDA, Civic Facility, Mt. St.
Vincent College, Rev., @ 7.00%, 05/01/08 470
2,500 New York City, New York, IDA, IDR, Brooklyn Navy Yard
Cogen Partners Project, Rev., 5.75%, 10/01/36 2,288
2,450 New York City, New York, Ser. A, GO, 6.25%, 08/01/09 2,672
2,000 New York State, Dorm Authority, City University System,
3rd General Reserve, Ser. 2, Rev., 5.00%, 07/01/18 1,907
5,000 Port Authority of New York & New Jersey, Consolidated
Bonds 93rd Ser., Rev., 6.13%, 06/01/94 5,404
1,500 Port Authority of New York & New Jersey, Consolidated
Bonds 114th Ser., Rev., 4.75%, 08/01/33 1,305
2,000 Utica, New York, IDA, Civic Facility, Munson-Williams-
Proctor Institute Project, Ser. A, Rev., 5.38%, 07/15/19 1,948
-------
15,994
Ohio -- 7.4%
4,000 Cleveland, Ohio, Public Power System, First Mortgage,
Ser. A, Rev., *, -, 7.00%, 11/15/04 4,460
Oklahoma -- 3.5%
1,995 Oklahoma Housing Finance Agency, Single Family
Housing, Ser. B-2, Rev., 6.80%, 09/01/26 2,118
Pennsylvania -- 4.9%
3,000 Delaware Valley, Pennsylvania, Regional Finance
Authority, Local Government, Ser. A, Rev., 5.50%,
08/01/28 2,989
Puerto Rico -- 6.4%
1,000 Puerto Rico Commonwealth, Highway & Transportation
Authority, Ser. B, Rev., 6.00%, 07/01/39 1,052
75 Puerto Rico Commonwealth, Urban Renewal & Housing
Corp., Rev., 7.88%, 10/01/04 77
2,500 Puerto Rico Municipal Finance Agency, Ser. A, GO,
6.00%, 08/01/15 2,724
------
3,853
South Carolina -- 0.4%
250 South Carolina State, Housing Finance & Development
Authority, Multi-Family Housing, Fairway Apartments
Project, Rev., 7.63%, 04/01/33 257
South Dakota -- 0.2%
100 South Dakota Housing Development Authority,
Homeownership Mortgage, Ser. A, Rev., 5.88%,
05/01/12 103
</TABLE>
See notes to financial statements.
9
<PAGE>
CHASE VISTA TAX FREE INCOME FUND
Portfolio of Investments (Continued)
As of August 31, 2000
(Amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
---------------------------------------------------------------------------------------
Long-Term Municipal Securities -- Continued
---------------------------------------------------------------------------------------
<S> <C> <C>
Texas -- 1.7%
$ 1,000 Dallas County, Texas, Utilities & Reclamation District,
Ser. B, GO, 5.88%, 02/15/29 $ 1,010
Utah -- 0.4%
250 Utah State, Board of Regents, Student Loan, Ser. F, Rev.,
7.45%, 11/01/08 256
Virgin Islands -- 4.7%
3,000 Virgin Islands Public Finance Authority, Senior Lien,
Ser. A, Rev., 5.50%, 10/01/22 2,825
Washington -- 0.5%
250 Washington State, Public Power Supply System, Nuclear
Project No. 1, Ser. B, Rev., 7.25%, 07/01/09 283
---------------------------------------------------------------------------------------
Total Long-Term Municipal Securities 61,024
(Cost $60,500)
---------------------------------------------------------------------------------------
Short-Term Investments -- 1.6%
---------------------------------------------------------------------------------------
Shares
Money Market Funds -- 1.6%
--------------------------
311 Provident Municipal Cash Money Market Fund 311
657 Provident Municipal Money Market Fund 657
---------------------------------------------------------------------
Total Money Market Funds 968
(Cost $968)
---------------------------------------------------------------------------------------
Total Investments -- 102.4% $61,992
(Cost $61,468)
---------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
10
<PAGE>
--------------------------------------------------------------------------------
CHASE VISTA NEW YORK TAX FREE INCOME FUND
Portfolio of Investments
--------------------------------------------------------------------------------
As of August 31, 2000
(Amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
-----------------------------------------------------------------------------------------
Long-Term Municipal Securities -- 96.1%
-----------------------------------------------------------------------------------------
<S> <C> <C>
New York -- 72.3%
$ 550 Monroe County, New York, IDA, Public Improvement,
Canal Ponds Park, Ser. A, Rev., 7.00%, 06/15/13 $ 580
1,000 Nassau County, New York, Ser. E, GO, 7.00%, 03/01/04 1,063
450 New York City, New York, IDA, Civic Facility, Mt. St.
Vincent College, Rev., @, 7.00%, 05/01/08 481
1,430 New York City, New York, IDA, Civic Facility, New York
Blood Center Inc. Project, Rev., -, 7.20%, 05/01/04 1,561
1,500 New York City, New York, IDA, Civic Facility, YMCA
Greater New York Project, Rev., 5.80%, 08/01/16 1,515
3,010 New York City, New York, IDA, IDR, Brooklyn Navy Yard
Cogen Partners Project, Rev., 6.20%, 10/01/22 3,016
3,000 New York City, New York, Municipal Water Finance
Authority, Water & Sewer Systems, Ser. A, Rev.,
5.75%, 06/15/31 3,041
130 New York City, New York, Municipal Water Finance
Authority, Water & Sewer Systems, Ser. A, Rev., -,
7.00%, 06/15/01 134
605 New York City, New York, Municipal Water Finance
Authority, Water & Sewer Systems, Ser. A, Rev.,
7.00%, 06/15/09 623
160 New York City, New York, Ser. F, GO, 8.25%, 11/15/02 169
1,000 New York Convention Center, Operating Corp., Yale
Building Acquisition Project, COP, 6.50%, 12/01/04 1,013
3,000 New York State, Dorm Authority, City University System,
3rd General Reserve, Ser. 2, Rev., 5.00%, 07/01/17 2,805
3,000 New York State, Dorm Authority, City University System,
3rd General Reserve, Ser. 2, Rev., 5.00%, 07/01/18 2,860
3,565 New York State, Dorm Authority, City University System,
Ser. A, Rev., 5.75%, 07/01/13 3,823
3,500 New York State, Dorm Authority, New York University,
Ser. A, Rev., 5.75%, 07/01/16 3,694
2,400 New York State, Dorm Authority, Niagara Nursing
Home, Rev., 5.60%, 08/01/37 2,375
2,500 New York State, Energy Research & Development
Authority, Electric Facilities, Lilco Project, Ser. B, Rev.,
5.30%, 11/01/23 2,315
705 New York State, Environmental Facilities Corp., PCR,
State Water Revolving Fund, Ser. A, Rev., 7.25%,
06/15/10 734
300 New York State, Housing Finance Agency, Multi-Family
Housing, Ser. A, Rev., 6.95%, 08/15/12 314
655 New York State, Housing Finance Agency, Rev., 8.00%,
11/01/08 671
690 New York State, Medical Care Facilities Finance Agency,
Rev., 7.88%, 08/15/20 706
1,000 New York State, Municipal Bond Bank Agency, Special
Program, Buffalo, Ser. A, Rev., 6.88%, 03/15/06 1,038
3,035 Niagara, New York, Frontier Transportation Authority,
Greater Buffalo International Airport, Ser. B, Rev.,
5.75%, 04/01/04 3,151
1,000 Oneida-Herkimer, New York, Solid Waste Management
Authority, Solid Waste Systems, Rev., 5.50%, 04/01/11 1,046
</TABLE>
See notes to financial statements.
11
<PAGE>
CHASE VISTA NEW YORK TAX FREE INCOME FUND
Portfolio of Investments (Continued)
As of August 31, 2000
(Amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
-------------------------------------------------------------------------------------
Long-Term Municipal Securities -- Continued
-------------------------------------------------------------------------------------
<S> <C> <C>
New York -- Continued
$ 5,000 Port Authority of New York & New Jersey, Consolidated
Bonds 93rd Ser., Rev., 6.13%, 06/01/94 $ 5,403
3,000 Port Authority of New York & New Jersey, Special
Obligation, 3rd Installment, Special Project, KIAC-4,
Rev., 7.00%, 10/01/07 3,133
4,500 Suffolk County, New York, IDA, IDR, Nissequogue Cogen
Partners Facility, Rev., 5.50%, 01/01/23 3,853
700 Utica, New York, Public Improvement, GO, 6.00%,
01/15/11 735
675 Utica, New York, Public Improvement, GO, 6.00%,
01/15/12 703
295 Utica, New York, Public Improvement, GO, 6.10%,
01/15/13 307
295 Utica, New York, Public Improvement, GO, 6.20%,
01/15/14 307
320 Utica, New York, Public Improvement, GO, 6.25%,
01/15/15 332
1,150 Westchester County, New York, GO, -, 6.70%, 11/01/06 1,293
480 Westchester County, New York, IDA, AGR Realty Co.
Project, Rev., -, 5.75%, 01/01/02 484
2,000 Westchester County, New York, IDA, Civic Facility,
Children's Village Project, Ser. A, Rev., 5.30%, 03/15/14 1,966
1,000 Westchester County, New York, IDA, Civic Facility,
Rippowam-Cisqua School Project, Rev., 5.75%,
06/01/29 989
2,000 Westchester County, New York, IDA, Resource Recovery,
Resco Co. Project, Ser. A, Rev., 5.70%, 07/01/08 2,086
------
60,319
Puerto Rico -- 11.7%
3,500 Puerto Rico Commonwealth, Public Improvement, GO,
6.00%, 07/01/29 3,618
2,500 Puerto Rico Electric Power Authority, Ser. HH, Rev.,
5.25%, 07/01/29 2,435
2,000 Puerto Rico Industrial, Medical & Environmental PCFFA,
Special Facilities, American Airlines, Ser. A, Rev.,
6.45%, 12/01/25 2,089
1,500 Puerto Rico Municipal Finance Agency, Ser. A, GO,
6.00%, 08/01/15 1,635
------
9,777
Virgin Islands -- 12.1%
4,000 Virgin Islands Public Finance Authority, Gross Receipts,
Taxes Lien Notes, Ser. A, Rev., 6.38%, 10/01/19 4,117
1,150 Virgin Islands Public Finance Authority, Matching Fund
Lien Notes, Ser. A, Rev., -, 7.25%, 10/01/02 1,242
5,000 Virgin Islands Public Finance Authority, Senior Lien,
Ser. A, Rev., 5.50%, 10/01/22 4,707
------
10,066
-------------------------------------------------------------------------------------
Total Long-Term Municipal Securities 80,162
(Cost $78,993)
-------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
12
<PAGE>
CHASE VISTA NEW YORK TAX FREE INCOME FUND
Portfolio of Investments (Continued)
As of August 31, 2000
(Amounts in thousands)
<TABLE>
<CAPTION>
Shares Issuer Value
---------------------------------------------------------------
Short-Term Investment -- 0.4%
---------------------------------------------------------------
<S> <C> <C>
Money Market Fund -- 0.4%
-------------------------
368 Provident New York Money Market Fund $ 368
(Cost $368)
---------------------------------------------------------------
Total Investments -- 96.5% $80,530
(Cost $79,361)
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Original Notional
Notional Value at Unrealized
Number of Expiration Value 08/31/00 Appreciation
Contracts Description Date (USD) (USD) (USD)
------------------------------------------------------------------------------------------------------
Long Futures Outstanding
------------------------
<S> <C> <C> <C> <C> <C>
53 U.S. Treasury Bonds December, 2000 $5,281 $5,323 $ 42
</TABLE>
See notes to financial statements.
13
<PAGE>
--------------------------------------------------------------------------------
CHASE VISTA CALIFORNIA INTERMEDIATE TAX FREE FUND
Portfolio of Investments
--------------------------------------------------------------------------------
As of August 31, 2000
(Amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
--------------------------------------------------------------------------------------
Long-Term Municipal Securities -- 98.1%
--------------------------------------------------------------------------------------
<S> <C> <C>
California -- 86.0%
$ 250 Bell Community Redevelopment Agency, California, Bell
Redevelopment Project Area, Ser. B, Tax Allocation,
6.30%, 11/01/13 $ 269
750 California Educational Facilities Authority, Stanford
University, Ser. P, Rev., 5.25%, 12/01/13 796
600 California State, GO, -, 6.25%, 10/01/02 636
250 California State, Public Works Board, Ser. A, Rev.,
6.00%, 09/01/01 255
1,850 Contra Costa, California, Water District, Ser. G, Rev., *,
5.75%, 10/01/14 1,949
1,000 Fallbrook, California, Unified High School District, San
Diego County, GO, @, 5.38%, 09/01/12 1,074
750 Foothill/Eastern Corridor Agency, California Toll Road,
Rev., 5.00%, 01/15/06 764
100 Fullerton University Foundation, California, Auxiliary
Organization, Ser. A, Rev., 5.50%, 07/01/10 109
100 Fullerton University Foundation, California, Auxiliary
Organization, Ser. A, Rev., 5.50%, 07/01/11 109
200 Glendora, California, Unified School District, Capital
Appreciation, Ser. A, +, GO, 0.00%, 09/01/15 92
570 Golden West Schools Financing Authority, California,
Ser. A, Rev., 5.80%, 02/01/16 622
475 Los Angeles County, California, Transportation
Commission, Sales Tax, Proposition C, 2nd Ser., Ser. A,
Rev., 5.88%, 07/01/02 491
300 Los Angeles, California, American Academy of Dramatic
Arts, Ser. A, COP, 4.70%, 11/01/30 303
125 Los Angeles, California, Unified School District, Ser. A,
GO, 6.00%, 07/01/15 140
25 Los Angeles, California, Unified School District, Ser. B,
GO, 5.38%, 07/01/12 26
560 Northern California Power Agency, Public Power, Ser. A,
5.80%, 07/01/09 622
340 Northern California Power Agency, Public Power, Ser. A,
-, 5.80%, 07/01/09 378
250 Oakland, California, State Building Authority, Elihu M.
Harris, Ser. A, Rev., 5.25%, 04/01/09 267
250 Orange County, California, Local Transportation
Authority, Sales Tax, First Ser., Measure M, Rev.,
5.60%, 02/15/02 256
500 Port Oakland, California, Ser. K, Rev., 5.25%, 11/01/07 525
35 Richmond, California, Wastewater, Rev., 5.20%, 08/01/11 37
250 Sacramento County, California, Sanitation District,
Financing Authority, Ser. A, Rev., 5.25%, 12/01/12 265
150 Sacramento County, California, Sanitation District,
Financing Authority, Ser. A, Rev., 5.75%, 12/01/10 167
110 Sacramento, California, City Financing Authority, Capital
Improvements, Rev., 4.95%, 06/01/13 112
20 Sacramento, California, City Unified School District,
Ser. A, GO, 5.00%, 07/01/02 20
900 Sacramento, California, Public Facilities Project, COP,
6.00%, 07/01/12 927
</TABLE>
See notes to financial statements.
14
<PAGE>
CHASE VISTA CALIFORNIA INTERMEDIATE TAX FREE FUND
Portfolio of Investments (Continued)
As of August 31, 2000
(Amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
--------------------------------------------------------------------------------------
Long-Term Municipal Securities -- Continued
--------------------------------------------------------------------------------------
<S> <C> <C>
California -- Continued
$ 515 San Bruno Park, California, School District, Capital
Appreciation, Ser. B., GO, 0.00%, 08/01/14 $ 255
600 San Bruno Park, California, School District, Capital
Appreciation, Ser. B., GO, 0.00%, 08/01/15 279
500 San Francisco, California, City & County Public Utilities
Commission, Ser. A, Rev., 6.25%, 11/01/07 563
105 San Francisco, California, City & County Redevelopment
Agency, Hotel Tax, Rev., -, 6.75%, 07/01/04 117
145 San Jose, California, Unified School District, Santa Clara
County, Capital Appreciation, Ser. A, GO, 0.00%,
08/01/13 77
110 San Marcos, California, Public Facilities Authority,
Custody Receipts, Rev., -, 0.00%, 07/01/13 59
250 San Mateo County, California, Joint Powers Authority,
Capital Projects Program, Rev., 6.50%, 07/01/15 293
1,000 Santa Clara County, California, Financing Authority,
Ser. A, Rev., 5.75%, 11/15/13 1,104
1,200 South Orange County, California, Public Financing
Authority, Special Tax, Senior Lien, Ser. A, 6.20%,
09/01/13 1,282
135 Southern California Public Power Authority,
Transmission Project, Capital Appreciation, Rev.,
0.00%, 07/01/06 105
1,000 University of California, UC Medical Center, Rev.,
10.00%, 07/01/06 1,290
-------
16,635
Puerto Rico -- 10.0%
405 Puerto Rico Commonwealth, GO, 5.30%, 07/01/04 420
100 Puerto Rico Commonwealth, GO, 5.50%, 07/01/01 101
420 Puerto Rico Commonwealth, Highway & Transportation
Authority, Ser. W, Rev., 5.50%, 07/01/15 442
115 Puerto Rico Commonwealth, Public Improvement, GO,
5.00%, 07/01/07 119
300 Puerto Rico Electric Power Authority, Ser. AA, Rev.,
4.80%, 07/01/01 302
500 Puerto Rico Municipal Finance Agency, Ser. A, GO,
5.75%, 08/01/13 541
-------
1,925
Virgin Islands -- 2.1%
400 Virgin Islands Public Finance Authority, Gross Receipts,
Taxes Lien Notes, Ser. A, Rev., 5.63%, 10/01/10 409
---------------------------------------------------------------------------------------
Total Long-Term Municipal Securities 18,969
(Cost $18,211)
---------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
15
<PAGE>
CHASE VISTA CALIFORNIA INTERMEDIATE TAX FREE FUND
Portfolio of Investments (Continued)
As of August 31, 2000
(Amounts in thousands)
<TABLE>
<CAPTION>
Principal
Amount Issuer Value
----------------------------------------------------------------------------------------
Short-Term Investments -- 1.6%
----------------------------------------------------------------------------------------
<S> <C> <C>
Municipal Securities--1.0%
--------------------------
California -- 1.0%
$100 California PCFA, PCR, Pacific Gas & Electric, Ser. F, Rev.,
FRDO, 3.40%, 09/01/00 $ 100
100 Los Angeles, California, Regional Airports Improvement
Corp., Terminal Facility, Los Angeles International
Airport, Rev., FRDO, 4.45%, 09/01/00 100
-----------------------------------------------------------------------
Total Municipal Securities 200
(Cost $200)
-----------------------------------------------------------------------
Shares
Money Market Fund -- 0.6%
-------------------------
109 Provident California Money Market Fund 109
(Cost $109)
-----------------------------------------------------------------------
Total Short-Term Investments 309
(Cost $309)
-----------------------------------------------------------------------------------------
Total Investments -- 99.7% $19,278
(Cost $18,520)
-----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Original Notional
Notional Value at Unrealized
Number of Expiration Value 08/31/00 Appreciation
Contracts Description Date (USD) (USD) (USD)
------------------------------------------------------------------------------------------------
Long Futures Outstanding
------------------------
<S> <C> <C> <C> <C> <C>
2 U.S. Treasury Bonds December, 2000 $199 $201 $ 2
</TABLE>
INDEX:
+ -- When issued or delayed delivery security.
* -- All or portion of this security is segregated for when issued or delayed
delivery securities.
- -- Security is prerefunded or escrowed to maturity. The maturity date shown
is the date of the prerefunded call.
@ -- All or a portion of the security is segregated for futures.
COP -- Certificates of Participation.
Dorm -- Dormitory.
FRDO -- Floating Rate Demand Obligation. The maturity date shown is the next
interest reset date. The interest rate shown is the rate in effect at
August 31, 2000.
GO -- General Obligation.
IDA -- Industrial Development Authority.
IDR -- Industrial Development Revenue.
PCFA -- Pollution Control Financing Authority.
PCFFA -- Pollution Control Facilities Financing Authority.
PCR -- Pollution Control Revenue.
Rev. -- Revenue Bond.
Ser. -- Series.
See notes to financial statements.
16
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES August 31, 2000
--------------------------------------------------------------------------------
(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) ..... $61,992 $80,530 $19,278
Other assets ................................. -- 1 --
Receivables:
Interest .................................... 867 1,245 280
Fund shares sold ............................ 1,114 2,078 --
Margin account for futures contracts ........ 23 38 1
--------------------------------------------------------------------------------------------
Total Assets .............................. 63,996 83,892 19,559
--------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased ............. 3,120 -- 90
Fund shares redeemed ........................ 163 249 72
Dividends ................................... 70 89 34
Accrued liabilities: (Note 2)
Investment advisory fees .................... 3 7 --
Administration fees ......................... 8 10 --
Shareholder servicing fees .................. 7 9 --
Distribution fees ........................... 7 8 --
Custody fees ................................ 6 14 7
Other ....................................... 54 47 27
--------------------------------------------------------------------------------------------
Total Liabilities ......................... 3,438 433 230
--------------------------------------------------------------------------------------------
NET ASSETS:
Paid in capital .............................. 60,627 83,851 18,531
Accumulated undistributed
(distributions in excess of)
net investment income ........................ (78) (53) 186
Accumulated net realized loss on
investment and futures transactions .......... (515) (1,550) (148)
Net unrealized appreciation
of investments and futures contracts ......... 524 1,211 760
--------------------------------------------------------------------------------------------
Net Assets ................................ $60,558 $83,459 $19,329
--------------------------------------------------------------------------------------------
Shares of beneficial interest outstanding
($.001 par value; unlimited number of
shares authorized)
Class A Shares ............................... 4,047 6,237 1,934
Class B Shares ............................... 890 1,095 --
Class A:
Net asset value and redemption
price per share (net assets/ shares
outstanding) ................................. $ 12.28 $ 11.39 $ 10.00
Maximum offering price per share
(net asset value per share/95.5%) ............ $ 12.86 $ 11.93 $ 10.47
Class B:
Net asset value and maximum
offering price per share (net assets/
shares outstanding)* ......................... $ 12.22 $ 11.36 $ --
Cost of investments ........................... $61,468 $79,361 $18,520
--------------------------------------------------------------------------------------------
</TABLE>
*Redemption may be subject to contingent deferred sales charge.
See notes to financial statements.
17
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the year ended August 31, 2000
--------------------------------------------------------------------------------
(Amounts in Thousands)
<TABLE>
<CAPTION>
New York California
Tax Free Intermediate
Tax Free Income Tax Free
Income Fund Fund Fund
<S> <C> <C> <C>
-----------------------------------------------------------------------------------
INTEREST INCOME: (Note 1C) ............... $3,525 $5,202 $ 985
-----------------------------------------------------------------------------------
EXPENSES: (Note 2)
Investment advisory fees ................ 190 270 59
Administration fees ..................... 95 135 30
Shareholder servicing fees .............. 159 225 50
Distribution fees ....................... 218 291 50
Custodian fees .......................... 67 115 47
Printing and postage .................... 24 27 2
Professional fees ....................... 33 32 19
Registration expenses ................... 25 3 3
Transfer agent fees ..................... 125 121 30
Trustees' fees .......................... 3 5 1
Other ................................... 3 16 18
-----------------------------------------------------------------------------------
Total expenses ....................... 942 1,240 309
-----------------------------------------------------------------------------------
Less amounts waived (Note 2E) ........... 360 445 189
Less earnings credits (Note 2F) ......... 1 1 --
-----------------------------------------------------------------------------------
Net expenses ......................... 581 794 120
-----------------------------------------------------------------------------------
Net investment income ............... 2,944 4,408 865
-----------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments ............................ (585) (1,296) (148)
Futures transactions ................... 70 54 --
Change in net unrealized appreciation/
depreciation of:
Investments ............................ 1,038 1,145 737
Futures contracts ...................... -- 42 2
-----------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments and futures
transactions ............................ 523 (55) 591
-----------------------------------------------------------------------------------
Net increase in net assets
from operations ......................... $3,467 $4,353 $1,456
-----------------------------------------------------------------------------------
</TABLE>
18
See notes to financial statements.
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS For the periods indicated (unaudited)
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS For the year ended August 31,
(Amounts in Thousands)
See notes to financial statements.
<TABLE>
<CAPTION>
Tax Free
Income Fund
-----------------------
2000 1999
-------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income .................................... $ 2,944 $ 3,097
Net realized gain (loss) on investments and
futures transactions ..................................... (515) 392
Change in net unrealized appreciation/
depreciation of investments and futures
contracts ................................................ 1,038 (4,490)
-------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations ............................................. 3,467 (1,001)
-------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A ................................................. (2,485) (2,576)
Class B ................................................. (460) (520)
Net realized gain on investment transactions:
Class A ................................................. (66) --
Class B ................................................. (15) --
-------------------------------------------------------------------------------------
Total distributions to shareholders .................... (3,026) (3,096)
-------------------------------------------------------------------------------------
Decrease from capital share transactions (Note 8) ......... (9,934) (2,228)
-------------------------------------------------------------------------------------
Total decrease in net assets ........................... (9,493) (6,325)
NET ASSETS:
Beginning of period ...................................... 70,051 76,376
-------------------------------------------------------------------------------------
End of period ............................................ $60,558 $70,051
-------------------------------------------------------------------------------------
<CAPTION>
New York California
Tax Free Intermediate
Income Fund Tax Free Fund
------------------------------------------------
2000 1999 2000 1999
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income .................................... $ 4,408 $ 5,279 $ 865 $ 949
Net realized gain (loss) on investments and
futures transactions ..................................... (1,242) (71) (148) 219
Change in net unrealized appreciation/
depreciation of investments and futures
contracts ................................................ 1,187 (6,828) 739 (1,056)
--------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations ............................................. 4,353 (1,620) 1,456 112
--------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A ................................................. (3,858) (4,734) (868) (949)
Class B ................................................. (543) (542) -- --
Net realized gain on investment transactions:
Class A ................................................. (180) (960) (217) (316)
Class B ................................................. (33) (134) -- --
--------------------------------------------------------------------------------------------------------------
Total distributions to shareholders .................... (4,614) (6,370) (1,085) (1,265)
--------------------------------------------------------------------------------------------------------------
Decrease from capital share transactions (Note 8) ......... (17,897) (16,066) (2,031) (1,854)
--------------------------------------------------------------------------------------------------------------
Total decrease in net assets ........................... (18,158) (24,056) (1,660) (3,007)
NET ASSETS:
Beginning of period ...................................... 101,617 125,673 20,989 23,996
--------------------------------------------------------------------------------------------------------------
End of period ............................................ $83,459 $101,617 $19,329 $20,989
--------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
19
<PAGE>
--------------------------------------------------------------------------------
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 ("TFI"), Chase Vista New York Tax
Free Income Fund ("NYTFI") and Chase Vista California Intermediate Tax Free
Fund ("CITF") (collectively, the "Funds") are three separate portfolios of the
Trust.
TFI and NYTFI 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 each 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 accounted for on the trade date (the date the order to buy or sell is
executed). Securities gains and losses are calculated on the identified
cost basis. Interest income is determined on the basis of coupon interest
accrued, adjusted for amortization of premiums and accretion of discount.
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
Purchases of when-issued or delayed delivery securities may be settled a
month or more after the trade date; interest income is not accrued until
settlement date. Each Fund segregates assets with a current value at least
equal to the amount of its when-issued or delayed delivery purchase
commitments.
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 (or 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.
As of August 31, 2000, the Funds had outstanding futures contracts as shown
on their Portfolios of Investments.
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 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; 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. Expenses directly attributable to
a particular class are charged directly to such class. 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
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
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 fees as
outlined in Note 2.E. below.
Chase Asset Management, Inc. ("CAM"), a registered investment adviser, is
the sub-investment adviser to each Fund, pursuant to a Sub-Investment
Advisory Agreement between CAM and Chase. CAM is a wholly owned subsidiary
of Chase and is entitled to receive a fee, payable by Chase from its
advisory fee, at an annual rate equal to 0.15% of each Fund's average daily
net assets.
B. Shareholder servicing fees -- The Trust has adopted an Administrative
Services Plan which, among other things, provides that the Trust on behalf
of the Funds may obtain the services of one or more Shareholder Servicing
Agents. For its services, each Shareholder Servicing Agent receives a fee.
The fee is computed daily and paid monthly at an annual rate of 0.25% of
the average daily net assets of each Fund.
Chase and certain affiliates are the only Shareholder Servicing Agents. The
Shareholder Servicing Agents voluntarily waived 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 fees as outlined in Note 2.E. below.
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
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 fees as
outlined in Note 2.E. below.
E. Waivers of fees -- For the year ended August 31, 2000, the Funds'
vendors voluntarily waived fees for each of the Funds as follows (amounts
in thousands):
<TABLE>
<CAPTION>
TFI NYTFI CITF
---------------------------------------------------------------------
<S> <C> <C> <C>
Investment Advisory ............ $159 $ 145 $ 59
Administration ................. -- -- 30
Shareholder Servicing........... 72 108 50
Distribution ................... 129 192 50
---- ----- -----
$360 $ 445 $ 189
==== ===== =====
</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 is presented in the Statement of Operations
as custodian fees. Custodian fees are subject to reduction by credits
earned by each Fund, based on cash balances held by Chase as custodian.
Such earnings credits are presented separately in the Statement of
Operations. The Funds could have invested the cash balances utilized in
connection with the earnings credit arrangements in income producing assets
if they had not entered into such arrangements.
3. Investment Transactions
The cost of purchases and proceeds from sales of investments (excluding
short-term investments) for the year ended August 31, 2000, were as follows
(amounts in thousands):
<TABLE>
<CAPTION>
TFI NYTFI CITF
---------------------------------------------------------------------
<S> <C> <C> <C>
Purchases ................ $26,980 $60,894 $21,411
Sales .................... 33,064 76,211 21,852
</TABLE>
4. Federal Income Tax Matters
For Federal income tax purposes, the cost and unrealized appreciation/
(depreciation) in value of the investment securities at August 31, 2000, are as
follows (amounts in thousands):
<TABLE>
<CAPTION>
TFI NYTFI CITF
--------------------------------------------------------------------------------
<S> <C> <C> <C>
Aggregate cost ......................... $ 61,468 $ 79,361 $18,520
-------- -------- -------
Gross unrealized appreciation.......... $ 1,616 $ 2,254 $ 758
Gross unrealized depreciation.......... (1,092) (1,085) --
-------- -------- -------
Net unrealized appreciation/
(depreciation) ......................... $ 524 $ 1,169 $ 758
======== ======== =======
</TABLE>
At August 31, 2000, TFI, NYTFI and CITF had capital loss carryovers of $3,265,
$683,958 and $103,805, respectively, which will be available to
23
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
offset capital gains arising through August 31, 2008. To the extent that any
net capital loss carryovers are used to offset future capital gains, it is
probable that the gains so offset will not be distributed to shareholders.
5. 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 invest
in issuers in the States of New York and California, respectively. As of August
31, 2000, TFI invested approximately 26.3% of its net assets in issuers in New
York State. The issuers' abilities to meet their obligations may be affected by
economic or political developments in a specific state or region.
6. 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, 2000, included in Trustees Fees 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>
TFI ................. $1 $ 8
NYTFI ............... 2 11
CITF ................ 1 3
</TABLE>
7. 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 0.50%. The
Funds also pay a commitment fee of 0.10% 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, 2000, nor at any time
during the year then ended.
8. Subsequent Event
Effective September 5, 2000, CAM changed its name to Chase Fleming Asset
Management (USA) Inc.
24
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
9. Capital Share Transactions
Capital share transactions were as follows for the periods presented (amounts
in thousands):
Tax Free Income Fund
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
Class A Class B
-------------------------------------------------------------------------------------------------------
Amount Shares Amount Shares
-------------------------------------------------------------------------------------------------------
Year Ended August 31, 2000
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 40,997 3,449 $ 2,065 174
Shares issued in reinvestment of distributions 1,748 146 329 28
Shares redeemed (49,923) (4,190) (5,150) (434)
-------------------------------------------------------------------------------------------------------
Net decrease in Fund shares outstanding $ (7,178) (595) $(2,756) (232)
=======================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Year Ended August 31, 1999
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 49,991 3,930 $ 4,030 316
Shares issued in reinvestment of distributions 1,705 134 360 28
Shares redeemed (52,915) (4,152) (5,399) (425)
-------------------------------------------------------------------------------------------------------
Net decrease in Fund shares outstanding $ (1,219) (88) $(1,009) (81)
=======================================================================================================
</TABLE>
New York Tax Free Income Fund
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
Class A Class B
-------------------------------------------------------------------------------------------------------
Amount Shares Amount Shares
-------------------------------------------------------------------------------------------------------
Year Ended August 31, 2000
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 26,202 2,373 $ 1,573 141
Shares issued in reinvestment of distributions 2,935 265 413 37
Shares redeemed (44,450) (4,016) (4,570) (414)
-------------------------------------------------------------------------------------------------------
Net decrease in Fund shares outstanding $(15,313) (1,378) $(2,584) (236)
=======================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Year Ended August 31, 1999
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold $ 40,533 3,372 $ 3,825 321
Shares issued in reinvestment of distributions 4,452 373 503 42
Shares redeemed (62,404) (5,230) (2,975) (249)
-------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares
outstanding $(17,419) (1,485) $ 1,353 114
=======================================================================================================
</TABLE>
California Intermediate Tax Free Fund
<TABLE>
<CAPTION>
--------------------------------------------------------------------------
Amount Shares
--------------------------------------------------------------------------
Year Ended August 31,
2000
--------------------------------------------------------------------------
<S> <C> <C>
Shares sold $ 653 67
Shares issued in reinvestment of distributions 591 61
Shares redeemed (3,275) (338)
--------------------------------------------------------------------------
Net decrease in Fund shares outstanding $(2,031) (210)
==========================================================================
</TABLE>
<TABLE>
<CAPTION>
Year Ended August 31,
1999
--------------------------------------------------------------------------
<S> <C> <C>
Shares sold $ 4,457 435
Shares issued in reinvestment of distributions 490 48
Shares redeemed (6,801) (671)
--------------------------------------------------------------------------
Net decrease in Fund shares outstanding $(1,854) (188)
==========================================================================
</TABLE>
25
<PAGE>
-------------------------------------------------------------------------------
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS
-------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Tax Free Income Fund
---------------------------------------------------------
Class A
---------------------------------------------------------
Year Ended August 31,
---------------------------------------------------------
2000 1999 1998 1997 1996
--------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period ..................................... $12.17 $12.89 $12.32 $11.84 $11.85
--------- -------- -------- -------- --------
Income from investment operations:
Net investment income ................................................... 0.57 0.56 0.56 0.58 0.58
Net gains or losses on securities (both realized and unrealized) ........ 0.13 (0.72) 0.57 0.48 (0.01)
--------- -------- -------- -------- --------
Total from investment operations ....................................... 0.70 (0.16) 1.13 1.06 0.57
--------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income .................................... 0.57 0.56 0.56 0.58 0.58
Distributions from capital gains ........................................ 0.02 -- -- -- --
--------- -------- -------- -------- --------
Total distributions .................................................... 0.59 0.56 0.56 0.58 0.58
--------- -------- -------- -------- --------
Net asset value, end of period .......................................... . $12.28 $12.17 $12.89 $12.32 $11.84
========= ======== ======== ======== ========
Total return (1) ......................................................... 6.00% (1.33%) 9.38% 9.14% 4.88%
Ratios/supplemental data:
Net assets, end of period (millions) ..................................... $ 50 $ 56 $ 61 $ 63 $ 70
Ratios to average net assets:
Expenses ................................................................ 0.75% 0.75% 0.80% 0.90% 0.90%
Net investment income ................................................... 4.81% 4.41% 4.44% 4.78% 4.83%
Expenses without waivers, reimbursements and earnings credits ........... 1.39% 1.37% 1.31% 1.29% 1.46%
Net investment income without waivers, reimbursements and
earnings credits ........................................................ 4.17% 3.79% 3.93% 4.39% 4.27%
Portfolio turnover rate .................................................. 44% 102% 172% 147% 210%
<CAPTION>
Tax Free Income Fund
---------------------------------------------
Class B
---------------------------------------------
Year Ended August 31,
---------------------------------------------
2000 1999
--------- --------
<S> <C> <C>
Per share operating performance
Net asset value, beginning of period ..................................... $12.10 $12.82
--------- --------
Income from investment operations:
Net investment income ................................................... 0.46 0.45
Net gains or losses on securities (both realized and unrealized) ........ 0.14 (0.72)
--------- --------
Total from investment operations ....................................... 0.60 (0.27)
--------- --------
Less distributions:
Dividends from net investment income .................................... 0.46 0.45
Distributions from capital gains ........................................ 0.02 --
--------- --------
Total distributions .................................................... 0.48 0.45
--------- --------
Net asset value, end of period ........................................... $12.22 $12.10
========= ========
Total return (1) ......................................................... 5.16% (2.23%)
Ratios/supplemental data:
Net assets, end of period (millions) ..................................... $ 11 $ 14
Ratios to average net assets:
Expenses ................................................................ 1.64% 1.64%
Net investment income ................................................... 3.92% 3.52%
Expenses without waivers, reimbursements and earnings credits ........... 1.89% 1.87%
Net investment income without waivers, reimbursements and
earnings credits ........................................................ 3.67% 3.29%
Portfolio turnover rate .................................................. 44% 102%
<CAPTION>
Tax Free Income Fund
---------------------------------------------
Class B
---------------------------------------------
Year Ended August 31,
---------------------------------------------
1998 1997 1996
-------- -------- --------
<S> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period ..................................... $12.25 $11.76 $11.77
-------- -------- --------
Income from investment operations:
Net investment income ................................................... 0.45 0.48 0.49
Net gains or losses on securities (both realized and unrealized) ........ 0.57 0.48 (0.01)
-------- -------- --------
Total from investment operations ....................................... 1.02 0.96 0.48
-------- -------- --------
Less distributions:
Dividends from net investment income .................................... 0.45 0.47 0.49
Distributions from capital gains ........................................ -- -- --
-------- -------- --------
Total distributions .................................................... 0.45 0.47 0.49
-------- -------- --------
Net asset value, end of period ........................................... $12.82 $12.25 $11.76
======== ======== ========
Total return (1) ......................................................... 8.45% 8.30% 4.10%
Ratios/supplemental data:
Net assets, end of period (millions) ..................................... $ 15 $ 14 $ 14
Ratios to average net assets:
Expenses ................................................................ 1.64% 1.64% 1.65%
Net investment income ................................................... 3.60% 4.04% 4.08%
Expenses without waivers, reimbursements and earnings credits ........... 1.81% 1.79% 1.95%
Net investment income without waivers, reimbursements and
earnings credits ........................................................ 3.43% 3.89% 3.78%
Portfolio turnover rate .................................................. 172% 147% 210%
</TABLE>
(1) Total return figures do not include the effect of any sales load.
See notes to financial statements.
26
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
New York Tax Free Income Fund
-----------------------------------------------------------
Class A
-----------------------------------------------------------
Year Ended August 31,
-----------------------------------------------------------
2000 1999 1998 1997 1996
--------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period ................................... $11.36 $12.18 $11.80 $11.39 $11.47
--------- -------- -------- -------- --------
Income from investment operations:
Net investment income ................................................. 0.56 0.53 0.54 0.56 0.56
Net gains or losses on securities
(both realized and unrealized) ........................................ 0.06 (0.71) 0.50 0.43 (0.08)
--------- -------- -------- -------- --------
Total from investment operations ..................................... 0.62 (0.18) 1.04 0.99 0.48
--------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income .................................. 0.56 0.53 0.54 0.56 0.56
Distributions from capital gains ...................................... 0.03 0.11 0.12 0.02 --
--------- -------- -------- -------- --------
Total distributions .................................................. 0.59 0.64 0.66 0.58 0.56
--------- -------- -------- -------- --------
Net asset value, end of period ......................................... $11.39 $11.36 $12.18 $11.80 $11.39
========= ======== ======== ======== ========
Total return (1) ....................................................... 5.68% (1.60%) 9.03% 8.85% 4.20%
Ratios/Supplemental Data:
Net assets, end of period (millions) ................................... $ 71 $ 87 $ 111 $ 83 $ 96
Ratios to average net assets:
Expenses .............................................................. 0.75% 0.75% 0.79% 0.90% 0.90%
Net investment income ................................................. 5.03% 4.46% 4.52% 4.77% 4.76%
Expenses without waivers, reimbursements and earnings credits ......... 1.30% 1.20% 1.21% 1.18% 1.27%
Net investment income without waivers, reimbursements and
earnings credits ...................................................... 4.48% 4.01% 4.10% 4.49% 4.39%
Portfolio turnover rate ................................................ 70% 65% 91% 107% 156%
<CAPTION>
New York Tax Free Income Fund
----------------------------------------------------------
Class B
----------------------------------------------------------
Year Ended August 31,
----------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- ------- -------- ------
<S> <C> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period ................................... $11.34 $12.16 $11.76 $11.33 $11.41
------ ------ ------ ------ ------
Income from investment operations:
Net investment income ................................................. 0.46 0.43 0.44 0.46 0.47
Net gains or losses on securities
(both realized and unrealized) ........................................ 0.05 (0.71) 0.51 0.43 (0.09)
------ ------ ------ ------ ------
Total from investment operations ..................................... 0.51 (0.28) 0.95 0.89 0.38
------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income .................................. 0.46 0.43 0.43 0.44 0.46
Distributions from capital gains ...................................... 0.03 0.11 0.12 0.02 --
------ ------ ------ ------ ------
Total distributions .................................................. 0.49 0.54 0.55 0.46 0.46
------ ------ ------ ------ ------
Net asset value, end of period ......................................... $11.36 $11.34 $12.16 $11.76 $11.33
====== ====== ====== ====== ======
Total return (1) ....................................................... 4.66% (2.47%) 8.27% 8.03 3.46%
Ratios/Supplemental Data:
Net assets, end of period (millions) ................................... $ 12 $ 15 $ 15 $ 14 $ 14
Ratios to average net assets:
Expenses .............................................................. 1.64% 1.64% 1.64% 1.64% 1.65%
Net investment income ................................................. 4.13% 3.58% 3.68% 4.03% 4.01%
Expenses without waivers, reimbursements and earnings credits ......... 1.80% 1.70% 1.71% 1.68% 1.76%
Net investment income without waivers, reimbursements and
earnings credits ...................................................... 3.97% 3.52% 3.61% 3.99% 3.90%
Portfolio turnover rate ................................................ 70% 65% 91% 107% 156%
</TABLE>
(1) Total return figures do not include the effect of any sales load.
See notes to financial statements.
27
<PAGE>
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (continued)
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
California Intermediate Tax Free Fund
--------------------------------------
Year Ended August 31,
--------------------------------------
2000 1999
-------- --------
<S> <C> <C>
Per share operating performance
Net asset value, beginning of period ............................................ $ 9.79 $10.29
-------- --------
Income from investment operations:
Net investment income .......................................................... 0.42 0.41
Net gains or losses on securities (both realized and unrealized) ............... 0.31 (0.37)
-------- --------
Total from investment operations .............................................. 0.73 0.04
-------- --------
Less distributions:
Dividends from net investment income ........................................... 0.42 0.41
Distributions from capital gains ............................................... 0.10 0.13
-------- --------
Total distributions ........................................................... 0.52 0.54
-------- --------
Net asset value, end of period .................................................. $10.00 $ 9.79
======== ========
Total return (1) ................................................................ 7.83% 0.28%
Ratios/supplemental data:
Net assets, end of period (millions) ............................................ $ 19 $ 21
Ratios to average net assets:
Expenses ....................................................................... 0.60% 0.60%
Net investment income .......................................................... 4.35% 3.99%
Expenses without waivers, reimbursements and earnings credits .................. 1.55% 1.46%
Net investment income without waivers, reimbursements and earnings credits ..... 3.40% 3.13%
Portfolio turnover rate ......................................................... 116% 111%
<CAPTION>
California Intermediate Tax Free Fund
--------------------------------------
Year Ended August 31,
--------------------------------------
1998 1997 1996
-------- ------- -------
<S> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period ............................................ $10.07 $ 9.81 $9.89
-------- ------- -------
Income from investment operations:
Net investment income .......................................................... 0.45 0.46 0.48
Net gains or losses on securities (both realized and unrealized) ............... 0.32 0.26 0.01
-------- ------- -------
Total from investment operations .............................................. 0.77 0.72 0.49
-------- ------- -------
Less distributions:
Dividends from net investment income ........................................... 0.45 0.33 0.48
Distributions from capital gains ............................................... 0.10 0.13 0.09
-------- ------- -------
Total distributions ........................................................... 0.55 0.46 0.57
-------- ------- -------
Net asset value, end of period .................................................. $10.29 $10.07 $9.81
======== ======= =======
Total return (1) ................................................................ 7.81% 7.46% 5.00%
Ratios/supplemental data:
Net assets, end of period (millions) ............................................ $ 24 $ 26 $ 28
Ratios to average net assets:
Expenses ....................................................................... 0.60% 0.60% 0.60%
Net investment income .......................................................... 4.38% 4.65% 4.77%
Expenses without waivers, reimbursements and earnings credits .................. 1.44% 1.33% 1.47%
Net investment income without waivers, reimbursements and earnings credits ..... 3.54% 3.92% 3.90%
Portfolio turnover rate ......................................................... 44% 66% 188%
</TABLE>
(1) Total return figures do not include the effect of any sales load.
See notes to financial statements.
28
<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, 2000, 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 accounting principles generally accepted in the United States of America.
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 auditing standards generally accepted in the United States of America,
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, 2000 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
October 11, 2000
29
<PAGE>
--------------------------------------------------------------------------------
TAX LETTER (UNAUDITED)
--------------------------------------------------------------------------------
Chase Vista Tax Free Income Fund (TFI)
Chase Vista New York Tax Free Income Fund (NYTFI)
Chase Vista California Intermediate Tax Free Fund (CITF)
--------------------------------------------------------------------------------
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, 2000. 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, 2000. The
information necessary to complete your income tax returns for the calendar year
ending December 31, 2000 will be received under separate cover.
FOR THE FISCAL YEAR ENDED AUGUST 31, 2000:
o The dividends paid from net investment income are 100.00%, 100.00% and
100.00% exempt from Federal income tax for TFI, NYTFI and CITF,
respectively.
o For shareholders who are subject to the Alternative Minimum Tax, the
percentage of income from private activity bonds issued after August 7,
1986, which may be considered a tax preference item, was 13.57%, 20.04% and
4.79% for TFI, NYTFI and CITF, respectively.
o Long-term capital gain distributions were $0.015 and $0.102 per share for TFI
and CITF, respectively.
30
<PAGE>
[This page intentionally left blank]
<PAGE>
[This page intentionally left blank]
<PAGE>
[This page intentionally left blank]
<PAGE>
--------------------------------------------------------------------------------
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, 2000. All Rights Reserved. October 2000
[CHASE VISTA LOGO]
CHASE VISTA FUNDS(SM)
Chase Vista Funds Fulfillment Center
393 Manley Street
West Bridgewater, MA 02379-1039
