<PAGE> 1
Founders of
"America's First
Money Fund"
810 Seventh Avenue, New York, NY 10019-5868
GENERAL INFORMATION AND 24-HOUR YIELD AND BALANCE INFORMATION
800-637-1700 M www.reservefunds.com
This literature is not authorized for distribution to prospective investors
unless
preceded or accompanied by an appropriate current prospectus.
Distributor -- Resrv Partners, Inc.
RTET/RNYTET SEMI-ANNUAL 01/99
Founders of
"America's First
Money Fund"
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SEMI-ANNUAL REPORT
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RESERVE NEW YORK TAX-EXEMPT TRUST
NEW YORK TAX-EXEMPT FUND
RESERVE TAX-EXEMPT TRUST
CALIFORNIA TAX-EXEMPT FUND
CONNECTICUT TAX-EXEMPT FUND
FLORIDA TAX-EXEMPT FUND
MASSACHUSETTS TAX-EXEMPT FUND
MICHIGAN TAX-EXEMPT FUND
NEW JERSEY TAX-EXEMPT FUND
OHIO TAX-EXEMPT FUND
PENNSYLVANIA TAX-EXEMPT FUND
NOVEMBER 30, 1998
<PAGE> 2
RESERVE NEW YORK TAX-EXEMPT TRUST--NEW YORK TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS -- 99.04% (NOTE 1)
--------- -------------------------------- --------
<C> <S> <C>
$ 2,000,000 Babylon UFSD TAN, 3.75%, 6/28/99............................ $ 2,001,324
2,470,000 Bleecker HDC Terrace Apt Project S85, 3.10%, 7/1/15 (a)..... 2,420,000
800,000 Buffalo GOB Series A, 3.70%, 2/1/99......................... 800,000
3,500,000 Deer Park UFSD TAN, 4.00%, 6/25/99.......................... 3,507,635
3,000,000 Eagle Tax-Exempt Trust NYS Med Care, 3.23%, 8/15/24 (a)..... 3,000,000
2,740,000 Greece CSD RAN, 4.00%, 6/25/99.............................. 2,744,619
Guilderland IDA for North Eastern Industrial Park Series
3,500,000 1993 A, 3.10%, 12/1/08 (a).................................. 3,300,000
3,165,000 Hempstead GOB, 4.00%, 8/15/99............................... 3,185,228
4,000,000 Ithaca CSD RAN, 3.87%, 6/29/99.............................. 4,404,634
Jefferson IDA for Watertown Carthage Project, 3.50%, 12/1/12
3,500,000 (a)......................................................... 3,500,000
2,000,000 Kendall CSD TAN, 4.00%, 6/30/99............................. 2,002,779
Long Island Power Authority, NY Electric System SER 1,
3,000,000 3.00%, 5/1/33............................................... 3,000,000
Montgomery County IDA for Service Merchandise Co., 3.40%,
1,600,000 12/31/24 (a)................................................ 1,600,000
Municipal Assistance Corp. for New York City Sub Series K-1,
2,000,000 2.70%, 7/1/08............................................... 2,000,000
1,060,000 Nassau County GOB, 4.50%, 9/1/99............................ 1,071,666
5,000,000 New York City COP, 3.15%, 9/22/98........................... 5,000,000
New York City GOB Custodial Receipts Series A31, 3.29%,
4,000,000 7/2/00 (a).................................................. 4,000,000
1,000,000 New York City GOB Fiscal 1994 Series A, 3.35%, 8/1/22....... 1,000,000
1,950,000 New York City GOB Series E5, 3.30%, 8/1/15.................. 1,950,000
1,500,000 New York City GOB Series E5, 3.30%, 8/1/16.................. 1,500,000
1,000,000 New York City GOB Series B7, 3.30%, 8/15/18................. 1,000,000
2,900,000 New York City GOB Fiscal 1993 Series A, 3.30%, 8/1/21....... 2,900,000
7,600,000 New York City GOB Series B8, 2.90%, 8/15/24................. 7,600,000
1,000,000 New York City GOB Series A7, 3.30%, 8/1/20 (a).............. 925,000
New York City GOB Fiscal 1993 Series E2, 3.30%, 8/1/21
2,275,000 (a)......................................................... 2,275,000
New York City GOB Fiscal 1993 Series E4, 3.30%, 8/1/21
4,100,000 (a)......................................................... 4,100,000
11,475,000 New York City GOB Series B1, 2.90%, 8/15/24 (a)............. 11,475,000
300,000 New York City GOB Series D, 3.05%, 2/1/20 (a)............... 300,000
3,000,000 New York City GOB Series D, 3.10%, 2/1/22 (a)............... 3,000,000
5,000,000 New York City GOB Series E4, 3.30%, 8/1/22 (a).............. 5,000,000
New York City HDC Multifamily Mortgage for James Tower
5,900,000 Project, 2.85%, 7/1/05 (a).................................. 5,900,000
966,000 New York City IDC Union Foundation, 3.40%, 6/1/12........... 966,000
1,045,000 New York City IDA for Goodwill Project, 3.00%, 3/1/00 (a)... 1,045,000
New York City IDA for Stroheim & Romann, 3.05%, 12/1/15
1,500,000 (a)......................................................... 1,500,000
New York State Dormitory Authority for Public Library
1,000,000 Revenue Bonds Series 1992B, 2.75%, 7/1/22 (a)............... 1,000,000
New York State ERD for Brooklyn Union Gas, 2.85%, 12/1/20
2,000,000 (a)......................................................... 2,000,000
New York State ERD/PCR for LILCO Project Series A, 3.58%,
3,000,000 3/1/16 (a).................................................. 3,000,000
NY State HFA Service Contract Rev. Bonds Series A, 2.90%
8,700,000 3/15/27 (a)................................................. 8,700,000
New York State HFA for Normandie Court Series 91, 2.85%,
7,300,000 5/15/15 (a)................................................. 7,300,000
New York State HFA for Mt. Sinai School, 2.85%, 11/1/14
1,700,000 (a)......................................................... 1,700,000
New York State Job Development Authority Series D, 3.00%,
1,055,000 3/1/99...................................................... 1,055,000
New York State Job Development Authority Series F, 3.00%,
1,355,000 3/1/99...................................................... 1,355,000
New York State Job Development Authority Series 84E, 3.00%,
2,485,000 3/1/99...................................................... 2,485,000
New York State Local Government Assistance 1993A, 2.90%,
5,120,000 4/1/22 (a).................................................. 5,120,000
New York State Local Government Assistance Series B, 2.80%,
3,900,000 4/1/25 (a).................................................. 3,900,000
3,000,000 North Hempstead RAN, 4.00%, 10/29/98........................ 3,002,401
4,000,000 North Hempstead BAN, 3.50%, 10/28/99........................ 4,015,130
Onondaga County IDR for Edgecomb Metals Project, 3.60%,
1,100,000 11/1/09 (a)................................................. 1,100,000
Onondaga County IDR for McLane Co. Project, 3.60%, 11/1/04
3,200,000 (a)......................................................... 3,200,000
3,000,000 Oyster Bay BAN, 4.00%, 4/30/99.............................. 3,003,919
3,050,000 Penfield CSD BAN, 3.90%, 5/19/99............................ 3,052,175
4,000,000 Riverhead CSD TAN, 3.75%, 6/25/99........................... 4,002,377
5,000,000 Rochester BAN, 3.75%, 3/9/99................................ 5,002,329
Suffolk County IDR for Target Rock Corporation Revenue
4,000,000 Bonds, 2.70%, 2/1/07 (a).................................... 4,000,000
Suffolk County IDR for Satellite Transmission Systems, Inc.,
1,330,000 3.10%, 11/1/07 (a).......................................... 1,330,000
</TABLE>
2
<PAGE> 3
RESERVE NEW YORK TAX-EXEMPT TRUST--NEW YORK TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1998 (Unaudited) (Continued)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS (CONTINUED) (NOTE 1)
--------- ---------------------------------- --------
<C> <S> <C>
Syracuse IDA for General Accident Insurance Co. Project,
$ 4,550,000 3.80%, 12/1/03 (a).......................................... $ 4,550,000
Yonkers IDR for Civic Revenue Bonds for Consumers Union,
1,300,000 2.85%, 7/1/19 (a)........................................... 1,300,000
Yonkers IDR for Consumers Union Facility, 2.85%, 7/1/21
4,500,000 (a)......................................................... 4,500,000
------------
TOTAL INVESTMENTS (COST $79,686,281)........................ 99.04% 179,647,216
OTHER ASSETS, LESS LIABILITIES.............................. .96 1,746,159
------ ---------
NET ASSETS.................................................. 100.00% $181,393,375
------ ---------
------ ---------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
BASED ON 181,393,375 SHARES OF BENEFICIAL INTEREST,
$.001 PAR VALUE OUTSTANDING................................. $1.00
---
---
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 4
RESERVE TAX-EXEMPT TRUST--CALIFORNIA TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS -- 99.02% (NOTE 1)
--------- -------------------------------- --------
<C> <S> <C>
Alameda Contra Costa School Finance Authority Series A,
$ 1,500,000 2.50%, 6/1/22(a)............................................ $ 1,500,000
Alameda Contra Costa School Finance Authority Series B,
2,000,000 2.50%, 7/1/23(a)............................................ 1,900,000
Alameda Contra Costa School Finance Authority Series C,
3,400,000 2.50%, 7/1/25(a)............................................ 3,400,000
Alameda Contra Costa School Finance Authority Series D,
4,575,000 2.50%, 7/1/18(a)............................................ 4,575,000
250,000 Anaheim COP, 2.60%, 8/1/19(a)............................... 250,000
California CDA for N. Cal. Retired Officers Community,
4,300,000 3.20%, 6/7/26(a)............................................ 4,300,000
2,000,000 California EDA for ISO Corp., Series B, 3.20%, 4/1/08(a).... 2,000,000
600,000 California EDA for ISO Corp., Series D, 3.25%, 4/1/08(a).... 600,000
California PCR for Pacific Gas and Electric, A, 3.25%,
2,000,000 12/1/18..................................................... 2,000,000
California PCR for Pacific Gas and Electric, F, 3.25%,
10,275,000 11/1/26..................................................... 10,275,000
5,000,000 California RAN, 4.00%, 6/30/99.............................. 5,023,970
California Modesto Santa Clara Redding Public Power, 2.65%,
300,000 7/1/22(a)................................................... 300,000
California School Cash Reserve Program, GOB, 4.50%,
2,000,000 7/2/99...................................................... 2,008,543
1,500,000 Elk Grove USD Tran., 4.50%, 6/30/99......................... 1,507,530
Foothill/Eastern Trans. Toll Road Bonds, Series 95C, 2.55%,
1,000,000 1/2/35(a)................................................... 1,000,000
Foothill/Eastern Transportation Toll Road Revenue Bonds,
500,000 2.60%, 1/2/35(a)............................................ 500,000
Fremont Public Finance Authority for Family Resource Center,
1,500,000 2.55%, 8/1/28(a)............................................ 1,500,000
Grand Terrace HFA CRA for Mt. Vernon Villas, 4.70%, 12/1/11
5,300,000 (a)......................................................... 5,300,000
1,500,000 Hemet MHR for Sunwest Resort Village, 2.80%, 7/1/06(a)...... 1,500,000
Irvine Improvement Bond Assessment District 85, 2.50%,
1,800,000 9/2/11(a)................................................... 1,800,000
Irvine Public Finance Authority for Infrastructure Project,
1,900,000 2.50%, 11/1/10(a)........................................... 1,900,000
1,000,000 Irvine Ranch Water District Series A, 3.10%, 5/1/09(a)...... 1,000,000
1,100,000 Irvine Ranch Water District Series B, 3.10%, 10/1/04(a)..... 1,100,000
2,000,000 Irvine Ranch Water District Series B, 3.10%, 10/1/09(a)..... 2,000,000
Irvine Ranch Water District Election, #282, 3.10%,
1,900,000 11/15/13(a)................................................. 1,900,000
Irvine Ranch Water District, Cons. Impt. Districts 3.10%,
2,000,000 6/1/15(a)................................................... 2,000,000
Lancaster MHR for Westwood Park Apartments 1985, 2.55%,
500,000 12/1/07(a).................................................. 500,000
400,000 Los Angeles CRA for Baldwin Hills, 2.60%, 12/1/14(a)........ 400,000
Los Angeles CRA for Promenade Towers Series 1989, 2.65%,
3,095,000 4/1/09(a)................................................... 3,095,000
5,890,000 Los Angeles Custodial Receipts, 3.24%, 7/1/05(a)............ 5,890,000
3,500,000 Los Angeles Department of Water, COP, 3.00%, 3/8/99......... 3,500,000
Los Angeles IDA for International Airport Authority, 3.25%,
1,300,000 12/1/25(a).................................................. 1,300,000
1,000,000 Los Angeles IDA for Wastewater Project, 7.00%, 6/1/21(a).... 1,035,347
Los Angeles Multi Family Mortgage for Valencia Village
900,000 Project C, 2.50%, 10/1/14................................... 900,000
2,500,000 Millbrae School District TRAN, 3.75%, 6/30/99............... 2,502,087
Orange County Apartment Development Revenue Bonds Issue A of
1,000,000 1991, the Lakes Project 2.75%, 12/1/06(a)................... 1,000,000
Orange County HFA for Lantern Pines Apartments, 2.55%,
1,500,000 12/1/27(a).................................................. 1,500,000
Orange County Sanitation District, Series C 3.20%,
2,700,000 8/1/17(a)................................................... 2,700,000
Orange County Water District, 1990 Project B, 3.00%,
1,100,000 8/15/15(a).................................................. 1,100,000
Pasadena COP for Rose Bowl Improvement Project, 2.95%,
600,000 12/1/11(a).................................................. 600,000
Pico Rivera CRA for Rainer Fund Crossroads Plaza Project,
700,000 2.70%, 12/1/10(a)........................................... 700,000
3,000,000 Puerto Rico COP, 2.80% 12/17/98............................. 3,000,000
Redlands COP for Water Treatment Facility, 2.70%,
930,000 9/1/15(a)................................................... 930,000
Redondo Beach for MHR for McCandless Senior Housing Proj.,
2,000,000 2.95%, 12/1/25(a)........................................... 2,000,000
1,000,000 Sacramento GOB, 4.00%, 2/1/99............................... 1,000,856
4,000,000 San Bernadino MHR for Alta Park Project, 4.70%, 5/1/06(a)... 4,000,000
San Bernadino IDA for Gate City Beverage, 4.10%,
200,000 3/1/05(a)................................................... 200,000
San Francisco MHR for Bayside Village Series 85D, 4.60%,
5,700,000 12/1/05(a).................................................. 5,700,000
San Francisco HFR for Yerba Buena Gardens, 2.60%,
575,000 9/1/06(a)................................................... 575,000
3,000,000 San Jose HFR Redevelopment Agency, 2.50%, 7/1/26(a)......... 3,000,000
Santa Clara Electric Revenue Bonds Series 85C, 2.65%,
300,000 7/1/10(a)................................................... 300,000
100,000 Santa Clara El Camino Hospital District, 2.50%, 8/1/15(a)... 100,000
Santa Clara El Camino Hospital District, Series A, 2.50%,
500,000 8/1/15(a)................................................... 500,000
Southern California Public Power Authority, GOB, 5.30%,
1,000,000 7/1/99...................................................... 1,009,022
Southern California Public Power Authority, Southern
1,600,000 Transmission B, 2.65%, 7/1/23............................... 1,600,000
</TABLE>
4
<PAGE> 5
RESERVE TAX-EXEMPT TRUST--CALIFORNIA TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1998 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS (CONTINUED) (NOTE 1)
--------- ---------------------------------- --------
<C> <S> <C>
$ 925,000 Turlock Irrigation District Series 88A, 2.50%, 1/1/14(a).... $ 925,000
2,200,000 Union City MHR for Skylark Apartments, 2.500%, 11/1/07(a)... 2,200,000
Upland MHR CRA Bonds, Series A for Northwood Project, 2.85%,
150,000 3/1/14(a)................................................... 150,000
Upland MHR CRA Bonds Series B for Northwood Project, 2.85%,
2,100,000 3/1/14(a)................................................... 2,100,000
Upland Community Redevelopment Agency GOB, 3.10%,
485,000 9/1/99(a)................................................... 485,000
5,000,000 Watereuse Finance Authority, 2.60%, 5/1/28.................. 5,000,000
------------
TOTAL INVESTMENTS (COST $122,684,520)....................... 99.02% 122,637,355
OTHER ASSETS, LESS LIABILITIES.............................. .98 1,211,609
------ ------------
NET ASSETS.................................................. 100.00% $123,848,964
====== ============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE BASED ON
123,848,964 SHARES OF BENEFICIAL INTEREST, $.001 PAR VALUE
OUTSTANDING........................................................... $1.00
---
---
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE> 6
RESERVE TAX-EXEMPT TRUST--CONNECTICUT TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS -- 95.79% (NOTE 1)
--------- -------------------------------- --------
<C> <S> <C>
$ 1,400,000 Connecticut DAI for Allen Group Inc., 3.25%, 2/1/13 (a)..... $ 1,400,000
Connecticut DAI for Conco Medical Co. Project Series 85,
700,000 3.00%, 11/1/05 (a).......................................... 700,000
Connecticut DAI for General Accident Insurance Co., 3.80%,
1,700,000 12/1/13 (a)................................................. 1,700,000
Connecticut DAI for Regional YMCA Project, 3.20%, 6/1/08
487,000 (a)......................................................... 487,000
Connecticut DAI for Trudy Corporation Project, 3.60%, 9/1/09
500,000 (a)......................................................... 500,000
Connecticut DAI for Zotos International Project, 4.35%,
1,450,000 12/1/04 (a)................................................. 1,450,000
Connecticut Development Authority Health Care Revenue Bonds
1,865,000 for Independent Living Project, 2.90%, 7/1/15 (a)........... 1,865,000
Connecticut Development Authority PCR for Central Vermont
1,400,000 Public Service, 2.95%, 12/1/15 (a).......................... 1,400,000
Connecticut HEF for Bradley Health Care Series B, 2.70%,
1,000,000 7/1/29 (a).................................................. 1,000,000
Connecticut HEF for Charlotte Hospital Series B, 2.90%,
1,500,000 7/1/13 (a).................................................. 1,500,000
Connecticut HEF for Kingswood Oxford School Issue Series A,
350,000 3.20%, 2/1/09 (a)........................................... 350,000
Connecticut HEF for New Haven Hospital RAW Series E, 3.70%,
365,000 6/1/12 (a).................................................. 365,000
Connecticut HEF for Pomfret School Issue Series A, 3.05%,
1,200,000 7/1/24 (a).................................................. 1,200,000
Connecticut HEF for Yale University Series T, 2.90%, 7/1/29
1,000,000 (a)......................................................... 1,000,000
1,000,000 Connecticut State GOB Series C, 3.50%, 10/15/99............. 1,004,249
Connecticut State GOB Economic Recovery Notes, 4.75%,
1,900,000 6/15/99..................................................... 1,910,409
Conn. Special Asmt Unemployment Comp Series A, 4.50%,
1,650,000 5/15/99..................................................... 1,656,453
Connecticut State HEFA for Quinnipiac College Series B,
500,000 7.25%, 7/1/19............................................... 519,655
Connecticut State HEFA for Yale University Series T-2,
1,000,000 2.80%, 7/1/29............................................... 1,000,000
1,980,000 Connecticut State GOB Series 97B, 2.85%, 5/15/14 (a)........ 1,980,000
Conn. Special Asmt Unemployment Comp RAW Series C, 3.60%,
1,500,000 11/15/01 (a)................................................ 1,500,000
Connecticut State Special Tax Transportation Infrastructure
2,000,000 Second Lien Revenue Bonds, 3.10%, 12/1/10 (a)............... 2,000,000
Hartford Redev. Agency MHR for Underwood Towers, 3.05%,
2,100,000 6/1/20 (a).................................................. 2,100,000
1,500,000 Ledyard BAN, 4%, 2/4/99..................................... 1,501,020
1,200,000 Puerto Rico Electric Power Authority, 3.03%, 7/1/22 (a)..... 1,200,000
Puerto Rico Government Development Bank COP, 2.95%,
3,400,000 12/10/98.................................................... 3,400,000
Puerto Rico Highway & Transportation Series A, 2.75%,
500,000 7/1/28...................................................... 500,000
Puerto Rico Ind. Med. and Envir. RAW for Reynolds Metals,
1,200,000 3.60%, 9/1/13 (a)........................................... 1,200,000
1,000,000 Shelton BAN, 3.75%, 12/8/98................................. 1,000,022
500,000 Shelton HFA for Crosby Commons Project, 3%, 1/1/11 (a)...... 500,000
-----------
</TABLE>
<TABLE>
<C> <S> <C> <C>
TOTAL INVESTMENTS (COST $37,917,154)........................ 95.79% $37,888,808
OTHER ASSETS, LESS LIABILITIES.............................. 4.21 1,665,057
------ -----------
NET ASSETS.................................................. 100.00% $39,553,865
====== ===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE BASED ON
39,553,865 SHARES OF BENEFICIAL INTEREST, $.001 PAR VALUE
OUTSTANDING........................................................... $1.00
---
---
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 7
RESERVE TAX-EXEMPT TRUST--FLORIDA TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS -- 102.38% (NOTE 1)
--------- --------------------------------- --------
<C> <S> <C>
FLORIDA -- 75.17%
Boca Raton IDA for Parking Garage Project, 3.775%, 12/1/14
$ 1,300.000 (a)......................................................... $ 1,300.000
Brevard County MHR for Malabar Lakes Proj., 3.30%,
925,000 12/1/10..................................................... 925,000
Broward MHR for Welleby Apartment Project Series 1984,
800,000 3.10%, 12/1/06 (a).......................................... 800,000
Collier IDA HFA for Retirement Rental Housing Revenue Bonds,
300,000 3.20%, 12/1/15 (a).......................................... 300,000
Dade County for HFA -- Miami Children's Hospital, 3.85%,
200,000 3/1/25...................................................... 200,000
Dade IDA for Aviation Authority Facilities Series 84A,
100,000 3.15%, 10/1/09 (a).......................................... 100,000
1,000,000 Dade IDA for Dolphin Stadium Project, 2.90%, 1/1/16 (a)..... 1,000,000
Dade HFA Rev. Bonds for Miami Children's Hospital, 3%,
200,000 9/1/25 (a).................................................. 200,000
Duval HFA for Lakes of Mayport Apartment Project, 3.15%,
900,000 12/1/09 (a)................................................. 900,000
Florida Local Gov. Authority for Lake Wales Medical Center,
1,500,000 3.10%, 3/1/15 (a)........................................... 1,500,000
100,000 Florida Gulf Coast GOB, Series 97, 3.10%, 8/1/27 (a)........ 100,000
500,000 Florida Inland GOB, 4.25%, 1/1/99........................... 500,268
Gulf Breeze IDA Revenue Bonds Series 85, 3.10%, 12/1/15
305,000 (a)......................................................... 305,000
Jacksonville IDR for Coastal Islands Project, 3.35%, 8/1/08
130,000 (a)......................................................... 130,000
Jacksonville IDR for University Medical Center, 4.60%,
900,000 2/1/19 (a).................................................. 900,000
Manatee PCR for Florida Power and Light, 3.95%, 9/1/24
100,000 (a)......................................................... 100,000
700,000 Martin PCR for Florida Power & Light, 3.35%, 9/1/24......... 700,000
605,000 Miami-Dade County GOB, 6.00%, 11/1/99....................... 620,391
Florida State Turnpike Auth -- Turnpike Revenue Bonds,
1,015,000 7.50%, 7/1/19............................................... 1,061,104
Palm Beach PCR for Water and Sewer Project, 4.20%, 10/1/11
500,000 (a)......................................................... 500,000
100,000 Putnam PCR for Florida Power and Light, 3.35%, 9/1/24 (a)... 100,000
Port St. Lucie PCR for Florida Power and Light, 3.45%,
200,000 1/1/11 (a).................................................. 200,000
500,000 Sea Coast RAW, 7.25%, 3/1/09 (a)............................ 514,110
200,000 Tampa Occupational License Tax Bonds, 3.15%, 10/1/18 (a).... 200,000
University of North Florida Capital Improvement Project,
300,000 3.15%, 11/1/24 (a).......................................... 300,000
Pinnellas County -- Chi Chi Rodriguez Foundation , 3.25%,
900,000 8/1/16...................................................... 900,000
Hillsborough County IDA PCR for Gannon Coal, 3,25%,
300,000 5/15/18..................................................... 300,000
Palm Beach County -- Florida Airport System, 5.50%,
200,000 10/1/99..................................................... 203,911
Palm Beach County HFA for Hospital Ser. 1985, 3.01%,
1,000,000 1/7/99...................................................... 1,000,000
-----------
15,859,784
-----------
CALIFORNIA -- 4.74%
Grand Terrace HFA Community Redevelopment Agency for Mt.
1,000,000 Vernon Villas, 4.70%, 12/1/11............................... 1,000,000
-----------
ILLINOIS -- 2.37%
Illinois HFC for Central Healthcare Corp. & Northwest Comm.
500,000 Hosp., 3.15%, 10/1/15 (a)................................... 500,000
-----------
MARYLAND -- 2.37%
Baltimore IDA for Mayor and City Counsel Project, 3.15%,
500,000 8/1/16 (a).................................................. 500,000
-----------
MISSOURI -- 2.09%
Cole IDA for Mobine Manufacturing Series 85, 4.85%, 12/1/15
440,000 (a)......................................................... 440,000
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 8
RESERVE TAX-EXEMPT TRUST--FLORIDA TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1998 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS (CONTINUED) (NOTE 1)
--------- ---------------------------------- --------
<C> <S> <C>
NEW JERSEY -- 1.42%
New Jersey EDA for Volvo of America Corp., 3.69%, 12/1/04
$ 300,000 (a)......................................................... $ 300,000
-----------
NEW YORK -- 2.37%
500,000 New York City GOB Series B1, 3.30%, 8/15/18................. 500,000
-----------
PENNSYLVANIA -- 7.11%
Allegheny Hospital Development Authority for St. Francis
500,000 Health Systems, 3.10%, 11/1/27.............................. 500,000
Clarion County IDA for Special Development Revenue Bonds for
500,000 Meritcare Project, Series A, 3.30%, 12/1/12................. 500,000
500,000 Emmaus General Authority Revenue Bonds, 3.15%, 3/1/24 (a)... 500,000
-----------
1,500,000
-----------
TEXAS -- 4.74%
Harris County HCF for Greater Houston Project 3.20%,
1,000,000 11/1/25..................................................... 1,000,000
-----------
</TABLE>
<TABLE>
<C> <S> <C> <C>
TOTAL INVESTMENTS (COST $21,615,847)........................ 102.38% $21,599,784
LIABILITIES, NET OF OTHER ASSETS............................ (2.38) (503,111)
------ -----------
NET ASSETS.................................................. 100.00% $21,096,673
====== ===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
BASED ON 21,096,673 SHARES OF BENEFICIAL INTEREST $.001 PAR
VALUE OUTSTANDING........................................... $1.00
---
---
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 9
RESERVE TAX-EXEMPT TRUST--MASSACHUSETTS TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS -- 98.24% (NOTE 1)
- --------- -------------------------------- --------
<C> <S> <C>
$ 327,000 Greenfield GOB, 5.00%, 11/15/99............................. $ 332,725
300,000 Framingham IDA for Perrini Corp., 3.35%, 9/30/05 (a)........ 300,000
Massachusetts HEF for Capital Asset Program A, 2.75%,
1,000,000 1/1/01...................................................... 1,000,000
Massachusetts HEF for Partnership Healthcare System, P1,
400,000 3.00%, 7/1/27............................................... 400,000
Massachusetts HEF for Partnership Healthcare System, P2,
1,000,000 3.00%, 7/1/27............................................... 1,000,000
1,700,000 Massachusetts HEF for Harvard University, 3.00%, 9/1/40..... 1,700,000
500,000 Massachusetts IFA for Milton Academy, 3.00%, 3/1/27......... 500,000
1,490,000 Massachusetts Turnpike Authority BAN, 5.00%, 6/11/99........ 1,503,832
Massachusetts, Municipal Wholesale Electric Series 1994 C,
900,000 3%, 7/1/19 (a).............................................. 900,000
4,215,000 Massachusetts GOB, 7.50%, 4/1/09 (a)........................ 4,352,608
900,000 Massachusetts GOB Series 97, 3.05%, 8/1/15 (a).............. 900,000
Massachusetts HEFA for Endicott College Series A, 3.80%,
500,000 10/1/18 (a)................................................. 500,000
Massachusetts HEFA for Clark University, 3.05%, 12/1/04
100,000 (a)......................................................... 100,000
Massachusetts HEFA for Boston University Series H, 3.40%,
1,000,000 12/1/15 (a)................................................. 1,000,000
Massachusetts HEFA for Hallmark Health Systems, 3.05%,
500,000 7/1/27 (a).................................................. 500,000
Massachusetts HEFA for Brigham and Women's Hospital, 3%,
1,100,000 7/1/17 (a).................................................. 1,100,000
Massachusetts HEFA for Eastern Nazarene College Series 97,
1,000,000 3.05%, 10/1/27 (a).......................................... 1,000,000
500,000 Massachusetts HEFA for Harvard University, 3%, 2/1/16 (a)... 500,000
100,000 Massachusetts HEFA for Harvard University, 3%, 8/1/17 (a)... 100,000
Massachusetts HEFA Capital Assistance Program Series G-1,
300,000 2.75%, 1/1/19 (a)........................................... 300,000
Massachusetts HEFA Capital Asset Series D, 2.95%, 1/1/35
400,000 (a)......................................................... 400,000
Massachusetts HEFA for Williams College Series E, 2.85%,
400,000 8/1/14 (a).................................................. 400,000
Massachusetts HEFA for Wellesley College Series B, 2.90%,
400,000 7/1/22 (a).................................................. 400,000
Massachusetts IDA for KRH Rolls Inc. Project Series 1988,
400,000 3.85%, 5/1/06 (a)........................................... 400,000
Massachusetts IFA for Composite Easy Day, 3.05%, 7/1/06
150,000 (a)......................................................... 140,000
500,000 Massachusetts IFA for Emerson College, 3.05%, 11/1/25 (a)... 500,000
Massachusetts IFA for Governor Dummer Academy, 3.05%, 7/1/26
800,000 (a)......................................................... 800,000
Massachusetts IFA for Holyoke Water Power Project, 2.80%,
300,000 5/1/22 (a).................................................. 300,000
1,000,000 Massachusetts IFA for Quamco Series B, 2.90%, 9/1/01 (a).... 1,000,000
Massachusetts IFA for Whitehead Bio-Medical, 3%, 7/1/26
1,000,000 (a)......................................................... 1,000,000
Massachusetts Showa Women's Institute of Boston, 3.30%,
100,000 3/15/04 (a)................................................. 100,000
1,500,000 Massachusetts Water Resource Authority, 6.50%, 4/1/28....... 1,500,000
1,040,000 Quincy GOB, 6.00%, 3/1/99................................... 1,046,036
230,000 Southborough GOB, 6.50%, 11/15/99........................... 237,021
475,000 Tewksbury GOB, 6.00%, 3/15/99............................... 478,161
500,000 Ware BAN, 4.00%, 12/18/98................................... 500,057
-----------
</TABLE>
<TABLE>
<C> <S> <C> <C>
TOTAL INVESTMENTS (COST $27,337,933)........................ 98.24% $27,190,440
OTHER ASSETS, LESS LIABILITIES.............................. 1.76 488,244
------ --------
NET ASSETS.................................................. 100.00% $27,678,684
------ --------
------ --------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE BASED ON
27,678,684 SHARES OF BENEFICIAL INTEREST, $.001 PAR VALUE
OUTSTANDING........................................................... $1.00
---
---
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 10
RESERVE TAX-EXEMPT TRUST--NEW JERSEY TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS -- 103.50% (NOTE 1)
- --------- --------------------------------- --------
<C> <S> <C>
Essex County Improvement Authority -- Children's Institute,
$3,000,000 3.15%, 2/1/20............................................... $ 3,000,000
2,000,000 Atlantic City Pooled Loan Program, 2.65%, 7/1/26 (a)........ 2,000,000
277,000 Berkley GOB, 4.40%, 4/1/99.................................. 277,579
420,000 East Rutherford GOB, 4.20%, 1/15/99......................... 420,175
2,000,000 Essex County Improvement Authority, 3.15%, 12/01/25 (a)..... 2,000,000
1,560,000 East Orange County BAN, 4.375%, 7/1/99...................... 1,563,262
700,000 New Jersey EDA for Market Transition Bonds, 5.00%, 7/1/99... 707,163
New Jersey State EFA for Princeton University Series E,
385,000 4.00%, 7/1/95............................................... 385,636
100,000 Monmouth BAN, 2.65%, 8/1/16 (a)............................. 100,000
Englewood School Qualified Temporary Notes, 3.70%,
2,000,000 7/16/99..................................................... 2,001,194
Wharton Board of Education Temporary Notes, 3.70%,
2.000,000 8/30/99..................................................... 2,005,037
New Jersey EDA for Bayonne IMTT Docking Revenue Bonds,
1,700,000 3.20%, 12/1/27 (a).......................................... 1,700,000
New Jersey EDA for Economic Growth Bond Series F2.70%,
710,000 8/1/14 (a).................................................. 710,000
New Jersey EDA for Lawrenceville School Series B, 3.00%,
1,000,000 7/1/26 (a).................................................. 1,000,000
New Jersey EDA for Natural Gas Project Series A, 2.75%,
1,000,000 1/1/28 (a).................................................. 1,000,000
800,000 New Jersey EDA PCR for PSE&G Co., 3.00%, 9/1/12 (a)......... 800,000
New Jersey EDA for A.R.C. -- Monmouth Unit Project, 3.10%,
900,000 12/1/09 (a)................................................. 900,000
New Jersey EDA for St. James Preparatory School, 3.00%,
900,000 12/1/27 (a)................................................. 900,000
New Jersey EDA for St. Peters School Series 1995, 3.05,
1,125,000 1/1/10 (a).................................................. 1,125,000
2,200,000 New Jersey EDA for Stolthaven Proj., 3.25%, 1/15/18 (a)..... 2,200,000
New Jersey EDA for Trailer Marine Corps Project, 3.30%,
400,000 2/1/02 (a).................................................. 400,000
New Jersey EDA for Volvo of American Corp, 3.685%, 12/1/04
3,400,000 (a)......................................................... 3,400,000
New Jersey EDA for RJB Associate Project, 3.15%, 8/1/08
900,000 (a)......................................................... 900,000
1,000,000 New Jersey GOB Series C, 6.50%, 1/15/05..................... 1,018,278
New Jersey HCF Hospital Capital Asset Ser. C, 2.95%, 7/01/35
400,000 (a)......................................................... 400,000
New Jersey Sports Expo Authority Series, 3.15%, 9/01/24
1,700,000 (a)......................................................... 1,700,000
New Jersey Turnpike Authority General Series 91D, 2.90%,
3,700,000 1/01/18 (a)................................................. 3,700,000
2,000,000 Vernon Board of Education Temporary Note, 3.50%, 5/4/99..... 2,003,700
1,000,000 Vernon Board of Education Temporary Note, 3.20%, 12/3/99.... 1,001,160
Port Authority NY and NJ Special Obligation Rev. Bonds,
1,800,000 3.25%, 5/1/19 (a)........................................... 1,800,000
500,000 Rutgers University GOB, 7.00%, 5/1/99....................... 516,532
400,000 Sayerville GOB, 4.45%, 12/15/98............................. 400,082
1,675,000 Trenton School Temp Notes, 3.70%, 3/10/98................... 1,675,523
550,000 Willingboro Township GOB, 4/40%, 1/15/99.................... 550,406
-----------
</TABLE>
<TABLE>
<C> <S> <C> <C>
TOTAL INVESTMENTS (COST $44,300,842)........................ 103.50% $44,260,727
LIABILITIES LESS OTHER ASSET................................ (3.50) (1,494,886)
------ --------
NET ASSETS.................................................. 100.00% $42,765,841
------ --------
------ --------
NET ASSET VALUE PER SHARE, OFFERING AND REDEMPTION PRICE PER SHARE
BASED ON 42,765,841 SHARES OF BENEFICIAL INTEREST $.001 PAR VALUE
OUTSTANDING............................................................ $1.00
---
---
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 11
RESERVE TAX-EXEMPT TRUST--OHIO TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS--NOVEMBER 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS -- 75.71% (NOTE 1)
- --------- -------------------------------- --------
<C> <S> <C>
$ 100,000 Brunswick IDA for Kinder-Care Learning Centers Project $ 100,000
Series A, 3.45% 6/1/02(a)..................................
100,000 Claremont HEF for Mercy Health Systems, 3.10% 12/1/21(a).... 100,000
200,000 Columbus ERD Electric Systems Revenue Bonds, 3.75% 200,000
9/1/09(a)..................................................
100,000 Cuyahoga IDA for Allen Group Project, 3.10% 12/1/15(a)...... 100,000
100,000 Cuyahoga HFA for Cleveland Clinic Series A, 3.15% 100,000
1/1/16(a)..................................................
100,000 Cuyahoga IDA for Edgecomb Metals Co., 3.40% 9/1/09(a)....... 100,000
195,000 Franklin County Industrial Development Refunding Revenue 195,000
Bonds for Kinder-Care Learning Centers Project Series 96A,
3.15% 12/1/21(a)...........................................
100,000 Lucas County EDA for Lutheran Home's Project, 3.15% 100,000
11/1/19(a).................................................
200,000 Mahoning County Forum Health Obligation Group, 3.15% 200,000
12/1/28(a).................................................
200,000 Port Authority of Cincinnati and Hamilton Counties for 200,000
Kenwood Office Association, 3.30% 9/1/25(a)................
200,000 Ottawa County, HFR Luther Home of Mercy 3.30%, 10/1/17...... 200,000
100,000 Toledo Special Obligation Assessment Notes, 3.15%, 100,000
12/1/98....................................................
----------
</TABLE>
<TABLE>
<C> <S> <C> <C>
TOTAL INVESTMENTS (COST $1,695,000)......................... 75.71% 1,695,000
OTHER ASSETS, LESS LIABILITIES.............................. 24.29 543,921
------ ----------
NET ASSETS.................................................. 100.00% $2,238,921
====== ==========
</TABLE>
------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1998 (UNAUDITED)
<TABLE>
<C> <S> <C>
ASSETS:
Investments in securities, at value (cost $1,695,000)....... $1,695,000
Cash........................................................ 538,993
Interest receivable......................................... 4,989
----------
Total Assets................................................ 2,238,982
----------
LIABILITIES
Other payable and accrued expenses.......................... 61
----------
NET ASSETS.................................................. $2,238,921
==========
NET ASSET VALUE, offering and redemption prices per share,
based on 2,238,921 shares of beneficial interest, $.001 par
value outstanding.......................................... $1.00
---
---
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 12
RESERVE TAX-EXEMPT TRUST--PENNSYLVANIA TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS -- 97.92% (NOTE 1)
- --------- -------------------------------- --------
<C> <S> <C>
$ 210,000 Allegheny GOB for Presbyterian Hospital, 4.35%, 4/1/99...... $ 210,437
1,000,000 Allegheny Hospital Dev. Auth. for Allegheny Hospital Series 1,000,000
B, 4.00%, 9/1/10...........................................
700,000 Allegheny Hospital Dev. Auth., Childrens' Hospital Pitt. 700,000
Series B, 3.35%, 12/1/15...................................
600,000 Allegheny IDA for Longwood at Oakmont, 3.25%, 7/1/27(a)..... 600,000
500,000 Allegheny IDA for St. Francis Health Systems, 3.10%, 500,000
11/1/27(a).................................................
700,000 Allegheny University of Pittsburgh Project Series 85, 3.60%, 700,000
3/1/13(a)..................................................
500,000 Allegheny University Project Series 85, 3.00%, 7/1/15(a).... 500,000
1,000,000 Beaver COP, 3.20%, 1/8/99................................... 1,000,000
1,030,000 Bucks IDA for Edgecomb Metals Co., 3.70%, 10/1/09(a)........ 1,030,000
1,000,000 Chartier Valley Industrial and Commercial Development 1,000,000
Authority Revenue Bonds for 1133 Penn Ave. Associates
Project Series A, 3.30%, 10/1/09...........................
400,000 Chester IDA for Archdiocese of Philadelphia, 7/1/27......... 400,000
300,000 Clarion IDA for Meritcare Project Series A, 3.30%, 300,000
12/01/12...................................................
400,000 Dauphin General Authority Revenue Bonds, 3.29%, 400,000
11/1/17(a).................................................
1,000,000 Delaware County COP, 3.10%, 3/11/99......................... 1,000,000
1,000,000 Delaware Valley Regional Finance Authority Series 85, 3.05%, 1,000,000
12/1/20(a).................................................
100,000 Delaware County PCR for Philadelphia Electric Co., 3.30%, 100,000
8/1/16(a)..................................................
500,000 Emmaus GOB Local Government Revenue Bonds, 3.95%, 500,000
3/1/24(a)..................................................
1,000,000 Emmaus GOB Local Government Revenue Bonds, 3.15%, 12/1/28... 1,000,000
1,255,000 Mercersburg General Purpose Authority Series 97, 3.20%, 1,255,000
11/1/27(a).................................................
1,000,000 Montgomery County COP, 3.00%, 2/16/99....................... 1,000,000
800,000 Northeastern HEF Wyoming Valley HCS Revenue Bonds, 3.10%, 800,000
11/1/24....................................................
585,000 Philadelphia Higher Education for Temple University, 3.30%, 585,000
10/1/09(a).................................................
260,000 Philadelphia IDR for Educational Foreign MED Graduates, 260,123
3.90%, 6/1/99..............................................
590,000 Philadelphia MHR for Harbor View Tower Project, 3.30%, 590,000
11/1/27(a).................................................
500,000 Philadelphia TRAN, 4.25%, 6/30/99........................... 501,713
500,000 University of Pittsburgh Higher Education Capital Project 500,000
Bonds, 3.00%, 1/1/19.......................................
1,000,000 York County for Philadelphia Electric Corp., 3.30%, 1,000,000
8/1/16.....................................................
1,325,000 York County General Auth. For Pooled Financing Prog. Ser. A, 1,325,000
3.40%, 9/1/26..............................................
500,000 York County General Auth. For Pooled Financing Prog., 3.20%, 500,000
9/1/26(a)..................................................
-----------
</TABLE>
<TABLE>
<C> <S> <C> <C>
TOTAL FUND INVESTMENTS (COST $20,259,584)................... 97.92% 20,257,273
OTHER ASSETS, LESS LIABILITIES.............................. 2.08 430,794
------ -----------
NET ASSETS.................................................. 100.00% $20,688,067
====== ===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICES PER SHARE, BASED ON
20,688,067 SHARES OF BENEFICIAL INTEREST, $.001 PAR VALUE
OUTSTANDING......................................................... $1.00
---
---
</TABLE>
12
<PAGE> 13
SECURITY TYPE ABBREVIATIONS:
<TABLE>
<S> <C> <C>
BAN = Bond Anticipation Notes
CDA = Community Development Authority
COP = Certificate of Participation
CSD = Central School District
CRA = Community Redevelopment Authority
DAI = Development Authority Industrial Development
Refunding Bonds
EDA = Economic Development Authority Revenue Bonds
EFA = Education Facilities Authority
ERD = Energy Research and Development Authority
GOB = General Obligation Bonds
HCF = Health Care Facilities Revenue Bonds
HDC = Housing Development Corporation Bonds
HEF = Health and Educational Facilities Revenue Bonds
HEFA = Health & Education Facilities Authority
HFA = (also) Housing Finance Authority
HFA = Health Facilities Authority Revenue Bonds
HFC = Hospital Finance Corp.
HFR = Housing Finance Revenue Bonds
IDA = Industrial Development Authority Revenue Bonds
IDR = Industrial Development Agency Revenue Bonds
IFA = Industrial Finance Authority
MHR = Multifamily Housing Revenue Bonds
PCR = Pollution Control Revenue Bonds
RAN = Revenue Anticipation Notes
RAW = Revenue Anticipation Warrants
TAN = Tax Anticipation Notes
TRAN = Tax & Revenue Anticipation Notes
UFSD = Union Free School District
USD = Unified School District
</TABLE>
- ---------------
(a) The interest rate is subject to change periodically. The rates shown were in
effect at November 30, 1998. Securities payable on demand are collateralized
by bank letters of credit or other bank credit agreements.
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 14
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED NOVEMBER 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
RESERVE NEW YORK
TAX-EXEMPT TRUST RESERVE TAX-EXEMPT TRUST
---------------- -------------------------------------
NEW YORK CALIFORNIA CONNECTICUT FLORIDA
FUND FUND FUND FUND
---------------- ---------- ----------- --------
<S> <C> <C> <C> <C>
INTEREST INCOME (Note 1).............................. $3,096,333 $1,641,131 $754,493 $305,916
---------- ---------- -------- --------
EXPENSES (Note 2)
Management fee...................................... 466,306 257,780 112,082 44,026
Shareholder servicing, administration and general
office expenses................................... 222,457 108,041 56,894 18,759
Distribution assistance (Note 3).................... 161,995 102,192 35,107 17,090
Equipment expense................................... 27,309 14,978 6,575 2,481
Professional fees................................... 28,059 16,010 6,759 2,669
Occupancy costs..................................... 10,016 5,502 2,397 931
Stationery, printing and supplies................... 9,676 5,393 2,324 896
Trustee fees........................................ 1,330 703 335 117
Other expenses...................................... 5,463 3,328 1,691 1,082
---------- ---------- -------- --------
Total Expenses.................................... 932,611 513,927 224,164 88,051
---------- ---------- -------- --------
NET INVESTMENT INCOME................................. $2,163,722 $1,127,204 $530,329 $217,865
========== ========== ======== ========
</TABLE>
<TABLE>
<CAPTION>
RESERVE TAX-EXEMPT TRUST
------------------------------------------------------
MASSACHUSETTS NEW JERSEY OHIO PENNSYLVANIA
FUND FUND FUND FUND
------------- ---------- ------- ------------
<S> <C> <C> <C> <C>
INTEREST INCOME (Note 1)............................... $428,336 $716,639 $37,353 $287,408
-------- -------- ------- --------
EXPENSES (Note 2)
Management fee....................................... 64,915 108,315 5,608 41,887
Shareholder servicing, administration and general
office expenses.................................... 49,317 47,599 3,561 17,194
Distribution assistance (Note 3)..................... 3,220 41,122 54 16,776
Equipment expense.................................... 3,795 6,369 325 2,352
Professional fees.................................... 3,953 6,564 656 2,609
Occupancy costs...................................... 1,398 2,316 119 856
Stationery, printing and supplies.................... 1,349 2,254 116 879
Trustee fees......................................... 188 306 16 115
Other expenses....................................... 1,694 1,784 730 1,106
-------- -------- ------- --------
Total Expenses................................ 129,829 216,629 11,185 83,774
-------- -------- ------- --------
NET INVESTMENT INCOME.................................. $298,507 $500,010 $26,168 $203,634
======== ======== ======= ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 15
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
RESERVE NEW YORK
TAX-EXEMPT TRUST RESERVE TAX-EXEMPT TRUST
--------------------------------- ---------------------------------
NEW YORK FUND CALIFORNIA FUND
--------------------------------- ---------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1998* 1998 1998* 1998
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income paid to
shareholders as dividends (Note
1)............................. $ (2,163,722) $ (4,696,211) $ (1,127,204) $ (1,260,626)
------------- ------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00 per
share):
Net proceeds from sale of
shares......................... 355,277,979 748,322,717 438,083,016 332,373,143
Dividends reinvested............. 2,163,722 4,696,211 1,127,204 1,260,626
Cost of shares redeemed.......... (347,260,565) (734,986,773) (382,293,968) (297,653,453)
------------- ------------- ------------- -------------
Net increase in net assets derived
from capital share transactions and
from investment operations......... 10,181,136 18,032,155 56,916,252 35,980,316
NET ASSETS:
Beginning of period................ 171,212,239 153,180,084 66,932,712 30,952,396
------------- ------------- ------------- -------------
End of period...................... $ 181,393,375 $ 171,212,239 $ 123,848,964 $ 66,932,712
============= ============= ============= =============
<CAPTION>
RESERVE TAX-EXEMPT TRUST
---------------------------------
CONNECTICUT FUND
---------------------------------
SIX MONTHS
ENDED YEAR ENDED
NOVEMBER 30, MAY 31,
1998* 1998
------------ ----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income paid to
shareholders as dividends (Note
1)............................. $ (530,329) $ (981,381)
------------ -------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00 per
share):
Net proceeds from sale of
shares......................... 90,242,774 141,307,597
Dividends reinvested............. 530,329 981,381
Cost of shares redeemed.......... (88,005,915) (138,998,804)
------------ -------------
Net increase in net assets derived
from capital share transactions and
from investment operations......... 2,767,188 3,290,174
NET ASSETS:
Beginning of period................ 36,786,677 33,496,503
------------ -------------
End of period...................... $ 39,553,865 $ 36,786,677
============ =============
</TABLE>
<TABLE>
<CAPTION>
RESERVE TAX-EXEMPT TRUST
---------------------------------------------------------------------
FLORIDA FUND MASSACHUSETTS FUND
--------------------------------- ---------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1998* 1998 1998* 1998
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM INVESTMENT
OPERATIONS:
Net investment income paid to shareholders as dividends
(Note 1)............................................. $ (217,865) $ (266,695) $ (298,507) $ (507,543)
------------ ------------ ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS(at net asset value of
$1.00 per share):
Net proceeds from sale of shares....................... 51,187,570 99,350,457 34,282,194 72,967,159
Dividends reinvested................................... 217,865 266,695 298,507 507,543
Cost of shares redeemed................................ (41,126,001) (92,909,297) (32,285,005) (61,126,323)
------------ ------------ ------------ ------------
Net increase in net assets derived from capital share
transactions and from investment operations.............. 10,279,434 6,707,855 2,295,696 12,348,379
NET ASSETS:
Beginning of period...................................... 10,817,239 4,109,384 25,382,988 13,034,609
------------ ------------ ------------ ------------
End of period............................................ $ 21,096,673 $ 10,817,239 $ 27,678,684 $ 25,382,988
============ ============ ============ ============
</TABLE>
- ---------------
* Unaudited.
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 16
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
RESERVE TAX-EXEMPT TRUST
----------------------------------------------------------------------------------------
NEW JERSEY FUND OHIO FUND PENNSYLVANIA FUND
----------------------------- -------------------------- ---------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1998* 1998 1998* 1998 (A) 1998* 1998 (B)
------------- ------------- ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
INVESTMENT OPERATIONS:
Net investment income paid to
shareholders as dividends (Note
1)................................ $ (500,010) $ (991,619) $ (26,168) $ (10,949) $ (203,634) $ (239,733)
------------- ------------- ----------- ----------- ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS (AT
NET ASSET VALUE OF $1.00 PER SHARE):
Net proceeds from sale of shares.... 119,084,351 234,261,239 1,850,308 4,357,301 33,850,248 56,580,287
Dividends reinvested................ 500,010 991,619 26,168 10,949 203,634 239,733
Cost of shares redeemed............. (114,418,960) (237,104,518) (2,144,160) (1,861,645) (26,552,953) (43,632,882)
------------- ------------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets
derived from capital share
transactions and from investment
operations............................ 5,165,401 (1,851,660) (267,684) 2,506,605 7,500,929 13,187,138
NET ASSETS:
Beginning of period................... 37,600,440 39,452,100 2,506,605 -- 13,187,138 --
------------- ------------- ----------- ----------- ------------ ------------
End of period......................... $ 42,765,841 $ 37,600,440 $ 2,238,921 $2,506,605 $20,688,067 $ 13,187,138
============= ============= =========== =========== ============ ============
</TABLE>
- ---------------
* Unaudited.
(a) For the period April 1, 1998 (Commencement of Operations) to May 31, 1998.
(b) For the period September 12, 1997 (Commencement of Operations) to May 31,
1998.
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 17
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) SIGNIFICANT ACCOUNTING POLICIES:
--------------------------------
Reserve New York Tax-Exempt Trust and Reserve Tax-Exempt Trust (collectively
the "Trusts") are registered under the Investment Company Act of 1940 as
nondiversified, open-end management investment companies. The policies
summarized below are consistently followed in the preparation of their
financial statements in conformity with generally accepted accounting
principles.
A. The Trusts' authorized shares of beneficial interest are unlimited.
Reserve Tax-Exempt Trust shares are divided into nine (9) series:
California, Connecticut, Florida, Interstate, Massachusetts, Michigan, New
Jersey, Ohio and Pennsylvania Tax-Exempt Funds (collectively the "Funds").
These financial statements and notes apply to Reserve New York Tax-Exempt
Trust and to all above-mentioned Funds except Interstate and Michigan
Tax-Exempt Funds.
B. Securities are valued at amortized cost which approximates market value.
The amortized cost method values a security at cost plus accrued interest at
the time of purchase and thereafter assumes a constant amortization to
maturity of any discount or premium, irrespective of intervening changes in
interest rates or market values. Pursuant to Rule 2a-7, for the purpose of
computing the average-weighted life to maturity, floating or variable rate
instruments, in which the Fund may invest, will be deemed to be: (1) the
notice period required before the Fund is entitled to receive payment of
principal or, (2) the period remaining until the instrument's next interest
rate adjustment.
C. It is the Trusts' policy to comply with the requirements of Subchapter M
of the Internal Revenue Code and to distribute all income to its
shareholders. Accordingly, no Federal income tax provision is required.
D. Security transactions are recorded on a trade date basis; interest income
is accrued daily and security premium or discount is amortized or accreted
daily.
E. Net investment income is distributed to shareholders daily and
automatically reinvested in additional Fund shares.
F. Each Fund is charged only for its direct or allocated (in proportion to
net assets or number of shareholder accounts) share of expenses.
(2) MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
--------------------------------------------------------
Pursuant to an Investment Management Agreement (the "Agreement") between
Reserve Management Company, Inc. ("RMCI") and the Funds, RMCI serves as the
Funds' Investment Adviser subject to the direction of the Board of Trustees.
Under the Agreement, RMCI is responsible for the supervision of the
day-to-day operations of each Fund. RMCI manages the Funds' investments,
effects purchases and sales thereof, and absorbs certain promotional
expenses. For its services as Investment Adviser, RMCI receives management
fees from each Fund at an annual rate of .50% of the first $500 million,
.475% of the next $500 million, .45% of the next $500 million, .425% of the
next $500 million and .40% in excess of $2 billion of the average daily net
assets.
Under the current Service Agreement, each Fund reimburses RMCI for
expenditures made by RMCI on behalf of the Trust. During the six months
ended November 30, 1998, RMCI was reimbursed the following amounts:
<TABLE>
<S> <C> <C> <C> <C>
New York $304,310 Massachusetts $61,694
California 153,955 New Jersey 67,192
Connecticut 76,975 Ohio 5,523
Florida 26,935 Pennsylvania 25,111
</TABLE>
DISTRIBUTION ASSISTANCE:
-------------------------
Pursuant to a Distribution Plan, each Trust will make payments of up to .20%
per annum of the average net asset value of the Trust qualified shareholder
accounts as to which the payee or RMCI has rendered assistance in
distributing its shares.
(3) MANAGEMENT'S USE OF ESTIMATES:
----------------------------------
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities on
the dates of the financial statements and the reported amounts of income and
expenses during the reporting periods. Actual results could differ from
those estimates.
17
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
(4) INVESTMENT CONCENTRATION:
---------------------------
The Trusts invest substantially all of their assets in portfolios of
tax-exempt debt obligations primarily consisting of issuers in each of the
respective states. The issuers' ability to meet their obligations may be
affected by economic, regional or political developments. In order to reduce
the credit risk associated with such factors, the Trusts invest
substantially in obligations backed by letters of credit, bond insurance of
financial institutions, or financial guaranty assurance agencies. At
November 30, 1998, the percentage invested in such obligations amounted to:
<TABLE>
<S> <C> <C> <C> <C>
New York 76% Massachusetts 71%
California 91% New Jersey 74%
Connecticut 75% Ohio 100%
Florida 95% Pennsylvania 98%
</TABLE>
(5) COMPONENTS OF NET ASSETS:
----------------------------
At November 30, 1998, the components of each Fund's net assets was as
follows:
<TABLE>
<CAPTION>
NEW YORK CALIFORNIA CONNECTICUT FLORIDA
------------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Par Value......................................... $ 181,393 $ 123,849 $ 39,554 $ 21,097
Paid-in-Capital................................... 181,211,982 123,725,115 39,514,311 21,075,576
------------ ------------ ----------- -----------
Net Assets........................................ $181,393,375 $123,848,964 $39,553,865 $21,096,673
============ ============ =========== ===========
</TABLE>
<TABLE>
<CAPTION>
MASSACHUSETTS NEW JERSEY OHIO PENNSYLVANIA
------------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Par Value......................................... $ 27,679 $ 42,766 $ 2,239 $ 20,688
Paid-in-Capital................................... 27,651,005 42,723,075 2,236,682 20,667,379
------------ ------------ ----------- -----------
Net Assets........................................ $ 27,678,684 $ 42,765,841 $ 2,238,921 $20,688,067
============ ============ =========== ===========
</TABLE>
(6) FINANCIAL HIGHLIGHTS
----------------------
Contained below is per share operating performance data for a share of
beneficial interest outstanding for each of the periods as indicated. The
information should be read in conjunction with the accompanying financial
data and related notes.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED FISCAL YEARS ENDED MAY 31,
NOVEMBER 30, ---------------------------------------------------
NEW YORK TAX-EXEMPT FUND 1998(+) 1998 1997 1996 1995 1994
------------------------ ------------ ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.......... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- ------- -------
Net investment income......................... .0117 .0268 .0247 .0276 .0253 .0150
Dividends from net investment income.......... (.0117) (.0268) (.0247) (.0276) (.0253) (.0150)
------- ------- ------- ------- ------- -------
Net asset value, end of period................ $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= ======= =======
Total Return.................................. 2.36%(a) 2.68% 2.47% 2.76% 2.53% 1.50%
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------
Net assets end of period (millions)........... $ 181.4 $ 171.2 $ 153.2 $ 125.5 $ 152.9 $ 148.4
Ratio of expenses to average net assets....... 1.00%(a) .94% 1.04% 1.04% .98% .98%
Ratio of net investment income to average net
assets...................................... 2.32%(a) 2.63% 2.43% 2.72% 2.48% 1.48%
</TABLE>
18
<PAGE> 19
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
(6) FINANCIAL HIGHLIGHTS (CONTINUED)
---------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED FISCAL YEARS ENDED MAY 31,
NOVEMBER 30, ----------------------------------------
CALIFORNIA TAX-EXEMPT FUND 1998(+) 1998 1997 1996 1995(B)
-------------------------- ------------ ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period................... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- -------
Net investment income.................................. .0110 .0260 .0239 .0273 .0181
Dividends from net investment income................... (.0110) (.0260) (.0239) (.0273) (.0181)
------- ------- ------- ------- -------
Net asset value, end of period......................... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= =======
Total Return........................................... 2.24%(a) 2.60% 2.39% 2.73% 1.81%(a)
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------
Net assets end of period (millions).................... $ 123.8 $ 66.9 $ 31.0 $ 12.6 $ 11.1
Ratio of expenses to average net assets................ 1.00%(a) .96% 1.03% 1.04% 1.02%(a)
Ratio of net investment income to average net assets... 2.19%(a) 2.55% 2.40% 2.67% 2.95%(a)
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED FISCAL YEARS ENDED MAY 31,
NOVEMBER 30, ---------------------------------------------------
CONNECTICUT TAX-EXEMPT FUND 1998(+) 1998 1997 1996 1995 1994
--------------------------- ------------ ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.......... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- ------- -------
Net investment income......................... .0119 .0267 .0243 .0266 .0254 .0164
Dividends from net investment income.......... (.0119) (.0267) (.0243) (.0266) (.0254) (.0164)
------- ------- ------- ------- ------- -------
Net asset value, end of period................ $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= ======= =======
Total Return.................................. 2.41%(a) 2.67% 2.43% 2.66% 2.54% 1.64%
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------
Net assets end of period (millions)........... $ 39.6 $ 36.8 $ 33.5 $ 34.8 $ 26.6 $ 128.7
Ratio of expenses to average net assets....... 1.00%(a) .89% .97% 1.01% .89%(d) .85%(d)
Ratio of net investment income to average net
assets...................................... 2.37%(a) 2.64% 2.39% 2.61% 2.33% 1.62%
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS FISCAL YEARS ENDED
ENDED MAY 31,
NOVEMBER 30, ------------------
FLORIDA TAX-EXEMPT FUND 1998(+) 1998 1997(C)
----------------------- ------------ ------- -------
<S> <C> <C> <C>
Net asset value, beginning of period........................ $1.0000 $1.0000 $1.0000
------- ------- -------
Net investment income....................................... .0125 .0269 .0228
Dividends from net investment income........................ (.0125) (.0269) (.0228)
------- ------- -------
Net asset value, end of period.............................. $1.0000 $1.0000 $1.0000
======= ======= =======
Total Return................................................ 2.53%(a) 2.69% 2.42%(a)
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------
Net assets end of period (millions)......................... $ 21.1 $ 10.8 $ 4.1
Ratio of expenses to average net assets..................... 1.00%(a) .94% 1.04%(a)
Ratio of net investment income to average net assets........ 2.47%(a) 2.62% 2.39%(a)
</TABLE>
19
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
(6) FINANCIAL HIGHLIGHTS (CONTINUED)
---------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED FISCAL YEARS ENDED MAY 31,
NOVEMBER 30, ---------------------------------------------------
MASSACHUSETTS TAX-EXEMPT FUND 1998(+) 1998 1997 1996 1995 1994
----------------------------- ------------ ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.......... $ 1.000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- ------- -------
Net investment income......................... .0115 .0284 .0259 .0276 .0265 .0175
Dividends from net investment income.......... (.0115) (.0284) (.0259) (.0276) (.0265) (.0175)
------- ------- ------- ------- ------- -------
Net asset value, end of period................ $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= ======= =======
Total Return.................................. 2.34%(a) 2.84% 2.59% 2.76% 2.65% 1.75%
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------
Net assets end of period (millions)........... $ 27.7 $ 25.4 $ 13.0 $ 9.0 $ 10.2 $ 14.8
Ratio of expenses to average net assets....... 1.00%(a) .75% .79%(d) .84%(d) .69%(d) .61%(d)
Ratio of net investment income to average net
assets...................................... 2.30%(a) 2.78% 2.58% 2.71% 2.60% 1.73%
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED FISCAL YEARS ENDED MAY 31,
NOVEMBER 30, ----------------------------------------
NEW JERSEY TAX-EXEMPT FUND 1998(+) 1998 1997 1996 1995(B)
-------------------------- ------------ ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period................... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- -------
Net investment income.................................. .0116 .0254 .0236 .0263 .0243
Dividends from net investment income................... (.0116) (.0254) (.0236) (.0263) (.0243)
------- ------- ------- ------- -------
Net asset value, end of period......................... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= =======
Total Return........................................... 2.35%(a) 2.54% 2.36% 2.63% 2.43%(a)(d)
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------
Net assets end of period (millions).................... $ 42.8 $ 37.6 $ 39.5 $ 41.0 $ 21.6
Ratio of expenses to average net assets................ 1.00%(a) .99% 1.06% 1.04% 1.01%(a)(d)
Ratio of net investment income to average net assets... 2.31%(a) 2.50% 2.33% 2.59% 2.82%(a)(d)
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD
NOVEMBER 30, ENDED MAY 31,
OHIO TAX-EXEMPT FUND 1998(+) 1998(E)
-------------------- ------------ -------------
<S> <C> <C>
Net asset value, beginning of period........................ $1.0000 $1.0000
------- -------
Net investment income....................................... .0117 .0048
Dividends from net investment income........................ (.0117) (.0048)
------- -------
Net asset value, end of period.............................. $1.0000 $1.0000
------- -------
Total Return................................................ 2.37%(a) 2.87%(a)
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------
Net assets end of period (millions)......................... $ 2.2 $ 2.5
Ratio of expenses to average net assets..................... 1.00%(a) 1.00%(a)
Ratio of net investment income to average net assets........ 2.33%(a) 2.86%(a)
</TABLE>
20
<PAGE> 21
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
(6) FINANCIAL HIGHLIGHTS (CONTINUED)
---------------------
<TABLE>
<CAPTION>
SIX MONTHS PERIOD
ENDED ENDED
NOVEMBER 30, MAY 31,
PENNSYLVANIA TAX-EXEMPT FUND 1998(+) 1998(F)
---------------------------- ------------ -------
<S> <C> <C>
Net asset value, beginning of period........................ $ 1.000 $1.0000
------- -------
Net investment income(1).................................... .0123 .0189
Dividends from net investment income........................ (.0123) (.0189)
------- -------
Net asset value, end of period.............................. $1.0000 $1.0000
======= =======
Total Return................................................ 2.39%(a) 2.64%(a)
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------
Net asset, end of period (millions)......................... $ 20.7 $ 13.2
Ratio of expenses to average net assets..................... 1.00%(a) 1.00%(a)
Ratio of net investment income to average net assets........ 2.43%(a) 2.62%(a)
</TABLE>
- ---------------
(+) Unaudited.
(a) Annualized.
(b) From October 17, 1994 (Commencement of Operations) to May 31, 1996
(c) From June 24, 1996 (Commencement of Operations) to May 31, 1997
(d) RMCI waived a portion of its fee or reimbursed the Funds for other
expenses. Had RMCI not pursued such undertaking, the following Fund expense
ratios would have been higher: Connecticut Fund: 0.10% higher for each of
the two years ended May 31, 1994 and May 31, 1995; Massachusetts Fund:
0.04%, 0.05%, 0.11% and 0.43% higher for fiscal years ended May 31, 1997,
1996, 1995 and 1994, respectively; New Jersey Fund: .01% higher for the
period ended May 31, 1996.
(e) From April 1, 1998 (Commencement of Operations) to May 31, 1998.
(f) From September 12, 1997 (Commencement of Operations) to May 31, 1998.
21
