<PAGE>
[LOGO] THE BULK RATE
RESERVE FUNDS U.S. POSTAGE
FUNDS PAID
Founders of PERMIT NO. 8898
"America's First Money Fund" BRONX, NY
Est. 1970
- --------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------
RESERVE TAX-EXEMPT TRUST
NEW YORK TAX-EXEMPT FUND
RESERVE TAX-EXEMPT TRUST
CALIFORNIA II 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, 1999
[LOGO] THE
RESERVE FUNDS
FUNDS
Founders of
America's First Money Fund"
Est. 1970
1250 BROADWAY, NEW YORK, NY 10001-3701
(212) 401-5500
GENERAL INFORMATION AND 24-HOUR YIELD AND BALANCE INFORMATION
800-637-1700
This literature is not authorized for distribution to prospective
investors unless preceded or accompanied by an appropriate
current prospectus.
Distributor--Resrv Partners, Inc.
RTET/SEMI-ANNUAL 01/00
<PAGE>
RESERVE NEW YORK TAX-EXEMPT TRUST--NEW YORK TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--100.5% (NOTE 1)
- ------------ ------------------------------ -----------
<S> <C> <C>
$ 2,365,000 Bleecker HDC Terrace Apt., Project S85, 3.85%, 7/1/15 (a)......................................... $ 2,365,000
2,000,000 Elmont UFSD, TAN, 3.90%, 6/29/00.................................................................. 2,003,894
2,000,000 Elmont UFSD, TAN, 4.00%, 6/29/00.................................................................. 2,005,011
3,200,000 Guilderland IDA for North Eastern Industrial Park, Ser. 1993 A, 3.85%, 12/1/08 (a)................ 3,200,000
2,000,000 Hempstead Town IDA Resource Recovery for Corp. Credit, 3.90%, 12/1/10 (a)......................... 2,000,000
3,500,000 Jefferson IDA for Watertown Carthage Project, 3.70%, 12/1/12 (a).................................. 3,500,000
6,700,000 Long Island Power Authority, NY Electric System, Series 1, 3.85%, 5/1/33 (a)...................... 6,700,000
3,800,000 Metropolitan Transit Authority, GOB, 7.50%, 7/1/16 (c)............................................ 3,953,901
2,295,000 Metropolitan Transit Authority, GOB, 6.00%, 7/1/19 (c)............................................ 2,323,063
2,240,000 Metropolitan Transit Authority, RAW, 7.50%, 7/1/19 (c)............................................ 2,320,693
600,000 New York City Cultural Resources for Soloman B. Guggenheim, 3.70%, 12/1/15 (a).................... 600,000
4,000,000 New York City GOB Custodial Receipts, Series A31, 4.09%, 7/2/00 (a)............................... 4,000,000
265,000 New York City GOB, Series A10, 4.00%, 8/1/16 (a).................................................. 265,000
500,000 New York City GOB, Series A7, 3.70%, 8/1/20 (a)................................................... 500,000
1,200,000 New York City GOB, Series A7, 7.75%, 3/15/02 (c).................................................. 1,231,910
2,595,000 New York City GOB, Series A9, 3.80%, 8/1/18 (a)................................................... 2,595,000
1,000,000 New York City GOB, Series B, 4.00%, 10/1/20 (a)................................................... 1,000,000
3,500,000 New York City GOB, Series B5, 3.90%, 2/15/16 (a).................................................. 3,500,000
3,950,000 New York City GOB, Series B8, 3.85%, 8/15/24 (a).................................................. 3,950,000
3,500,000 New York City GOB, Series D, 3.75%, 2/1/22 (a).................................................... 3,500,000
300,000 New York City GOB, Series D, 3.80%, 2/1/20 (a).................................................... 300,000
2,800,000 New York City GOB, Series D, 3.85%, 2/1/21 (a).................................................... 2,800,000
3,400,000 New York City GOB, Series E4, 3.70%, 8/1/21 (a)................................................... 3,400,000
500,000 New York City GOB, Series E5, 3.70%, 8/1/10 (a)................................................... 500,000
1,750,000 New York City GOB, Series F2, 3.70%, 2/15/12 (a).................................................. 1,750,000
2,000,000 New York City GOB, Series F4, 3.80%, 2/15/20 (a).................................................. 2,000,000
5,000,000 New York City HDC for Upper Fifth Avenue Project, 3.90%, 1/1/16 (a)............................... 5,000,000
3,000,000 New York City HDC MFH for Columbus Apartments, 3.80%, 3/15/25 (a)................................. 3,000,000
6,000,000 New York City HDC MFH for Monterey, Series A, 3.80%, 11/15/19 (a)................................. 6,000,000
5,900,000 New York City HDC Multifamily Mtg. for James Tower Proj., 3.70%, 7/1/05 (a)....................... 5,900,000
2,300,000 New York City Health & Hospital, Series A, 3.75%, 2/15/26 (b)..................................... 2,300,000
866,000 New York City IDA American Civil Liberties, 3.75%, 6/1/12 (a)..................................... 866,000
5,000,000 New York City IDA for Childrens Oncology Society, 3.80%, 5/1/21 (a)............................... 5,000,000
920,000 New York City IDA for Goodwill Project, 3.75%, 3/1/00 (a)......................................... 920,000
1,500,000 New York City IDA for Stroheim & Romann Inc. Project, 3.80%, 12/1/15 (a).......................... 1,500,000
1,200,000 New York State Dormitory Auth. for Oxford University Press, 3.85%, 7/1/25 (a)..................... 1,200,000
1,300,000 New York State Energy R & D Authority for New York Electric-Gas, 3.60%, 10/1/29 (a)............... 1,300,000
6,000,000 New York State HFA for Normandie Court, Series 91, 3.70%, 5/15/15 (a)............................. 6,000,000
1,700,000 New York State HFA for Mt. Sinai School, 3.85%, 11/1/14 (a)....................................... 1,700,000
11,200,000 New York State HFA Service Contract Rev. Bonds, Series A, 3.75%, 3/15/27 (a)...................... 11,200,000
2,835,000 New York State Local Government Assistance Corp., Series A, 3.75%, 4/1/22 (a)..................... 2,835,000
8,400,000 New York State Local Government Assistance Corp., Series B, 3.75%, 4/1/25 (a)..................... 8,400,000
7,880,000 New York State Local Government Assistance Corp., Series C, 3.75%, 4/1/25 (a)..................... 7,880,000
10,000,000 New York State Medical Care Facilities Finance Agency for St. Lukes Hospital, 7.45%,
2/15/29(c)...................................................................................... 10,285,740
7,000,000 North Shore CSD, BAN, 4.00%, 7/13/00.............................................................. 7,021,591
4,200,000 Onondaga County IDR for Edgecomb Metals Project, 3.90%, 11/1/09 (a)............................... 4,200,000
2,400,000 Onondaga County IDR for McLane Co. Project, 4.35%, 11/1/04 (a).................................... 2,400,000
1,000,000 Port Authority of New York & New Jersey, Series 2, 3.75%, 5/1/19 (a).............................. 1,000,000
1,200,000 St. Lawrence IDA for Reynolds Metals, 3.80%, 12/1/07 (a).......................................... 1,200,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
2
<PAGE>
RESERVE NEW YORK TAX-EXEMPT TRUST--NEW YORK TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1999 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS (CONTINUED)--100.5% (NOTE 1)
- ------------ ------------------------------------------ ------------
<S> <C> <C> <C>
$ 4,000,000 Suffolk County IDR for Target Rock Corporation Rev. Bonds, 3.85%, 2/1/07 (a)..................... $ 4,000,000
4,550,000 Syracuse IDA for General Accident Insurance Co., Project, 3.20%, 12/1/03 (a)..................... 4,550,000
5,000,000 Triborough Bridge & Tunnel Authority, Series C, 4.00%, 1/1/13 (a)................................ 5,000,000
1,300,000 Yonkers IDR for Civic Revenue Bonds for Consumers Union, 3.80%, 7/1/19 (a)....................... 1,300,000
4,400,000 Yonkers IDR for Consumers Union Facility, 3.80%, 7/1/21 (a)...................................... 4,400,000
------------
TOTAL INVESTMENTS (COST $178,621,803)................................................... 100.5% 178,621,803
OTHER ASSETS, LESS LIABILITIES.......................................................... (0.5) (932,949)
----- ------------
NET ASSETS.............................................................................. 100.0% $177,688,854
----- ------------
----- ------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE BASED ON 177,688,854 SHARES OF
BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING....................................... $1.00
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE>
RESERVE TAX-EXEMPT TRUST--CALIFORNIA II TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS--NOVEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--93.9% (NOTE 1)
- ----------- ----------------------------- ----------
<S> <C> <C>
$1,500,000 Alameda Contra Costa School Finance Authority, Series A, 3.65%, 6/1/22 (a)........................ $1,500,000
580,000 Alameda Contra Costa School Finance Authority, Series B, 3.65%, 7/1/23 (a)........................ 580,000
1,100,000 Alameda Contra Costa School Finance Authority, Series C, 3.65%, 7/1/25 (a)........................ 1,100,000
2,180,000 Alameda Contra Costa School Finance Authority, Series D, 3.65%, 7/1/18 (a)........................ 2,180,000
1,800,000 California EDA for ISO Corp., Series A, 3.70%, 4/1/08 (a)......................................... 1,800,000
1,900,000 California EDA for ISO Corp., Series B, 3.60%, 4/1/08 (a)......................................... 1,900,000
1,500,000 California RAN, 4.00%, 6/30/00.................................................................... 1,505,941
1,500,000 California School Facilities Capital Improvement Financing Projects, Series C, 3.85%,
7/1/22(a)....................................................................................... 1,500,000
1,800,000 California School Facilities Capital Improvement Financing Projects, Series B, 3.80%,
7/1/24(a)....................................................................................... 1,800,000
1,500,000 Contra Costa MFH, Delta Square Apartments, Project H, 3.55% 10/15/29 (a).......................... 1,500,000
1,100,000 Fremont Public Finance Auth. for Family Resource Center, 3.65%, 8/1/28 (a)........................ 1,100,000
1,500,000 Hemet MHR for Sunwest Resort Village, 3.55%, 7/1/06 (a)........................................... 1,500,000
1,500,000 Huntington Beach TAN, 4.25%, 10/3/00.............................................................. 1,510,585
500,000 Irvine Ranch Water District, Series B, 3.85%, 10/1/04 (a)......................................... 500,000
3,900,000 Los Angeles Community Redevelopment Agency, Baldwin Hills, 3.55% 12/1/14 (a)...................... 3,900,000
2,675,000 Los Angeles CRA for Promenade Towers, Series 1989, 3.65%, 4/1/09 (a).............................. 2,675,000
2,400,000 Los Angeles Custodial Receipts, 3.82%, 7/1/05 (a)................................................. 2,400,000
1,420,000 Los Angeles MTA, RAW, 5.50%, 7/1/00 (b)........................................................... 1,437,117
2,680,000 Los Angeles USD, Belmont Learning Complex-A, 3.60%, 12/1/17 (a)................................... 2,680,000
1,200,000 Los Angeles Wastewater System, Series A, RAW, 7.00%, 2/1/20 (c)................................... 1,231,124
3,500,000 Orange County Apartment Development Revenue Bonds, Aliso Creek Project B, 3.60%, 11/1/25 (a)...... 3,500,000
700,000 Orange County Water District, 3.55%, 8/15/15 (a).................................................. 700,000
2,000,000 Riverside County Housing Authority MFH, Tyler Springs Apartments-C, 3.50%, 1/15/27 (a)............ 2,000,000
200,000 San Bernadino IDA for Gate City Beverage, 4.80%, 3/1/05 (a)....................................... 200,000
1,500,000 San Francisco Bay Area Rapid Transit, 3.10%, 12/8/99 (a).......................................... 1,500,000
1,000,000 San Francisco Bay Area Rapid Transit, 3.55%, 3/8/00 (a)........................................... 1,000,000
2,500,000 San Francisco MHR for Bayside Village, Series 85D, 3.52%, 12/1/05 (a)............................. 2,500,000
2,000,000 San Joaquin County, CP, 3.40%, 12/14/99 (a)....................................................... 2,000,000
1,920,000 San Jose Redevelopment Agency, Tax Allocation Merged Area, RAW, 4.75%, 8/1/00 (b)................. 1,934,329
1,810,000 South Orange County Public Financing Authority, GOB, 4.50%, 9/1/00 (b)............................ 1,824,567
1,000,000 Southern California Public Power Authority, RAW, 6.00%, 7/1/18 (c)................................ 1,014,910
700,000 Watereuse Finance Authority, 3.60%, 5/1/28 (a).................................................... 700,000
----------
<CAPTION>
<S> <C> <C> <C>
TOTAL INVESTMENTS (COST $53,173,573)..................................................... 93.9% 53,173,573
OTHER ASSETS, LESS LIABILITIES........................................................... 6.1 3,464,284
----- -----------
NET ASSETS............................................................................... 100.0% $56,637,857
----- -----------
----- -----------
</TABLE>
4
<PAGE>
RESERVE TAX-EXEMPT TRUST--CALIFORNIA II TAX-EXEMPT FUND
STATEMENT OF ASSETS AND LIABILITIES--NOVEMBER 30, 1999 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investments in securities, at value (cost $53,173,573).................................................... $53,173,573
Cash...................................................................................................... 3,126,676
Accrued interest receivable............................................................................... 339,155
-----------
Total Assets.......................................................................................... 56,639,404
-----------
LIABILITIES
Other payables and accrued expenses....................................................................... 1,547
-----------
NET ASSETS................................................................................................ $56,637,857
-----------
-----------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE, BASED ON 56,637,857 SHARES
OF BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING..................................................... $1.00
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
RESERVE TAX-EXEMPT TRUST--CONNECTICUT TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS--NOVEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--89.6% (NOTE 1)
- ----------- ----------------------------- -----------
<S> <C> <C> <C>
$1,400,000 Connecticut DAI for Allen Group Inc., 3.75%, 2/1/13 (a)................................... $ 1,400,000
700,000 Connecticut DAI for Conco Medical Co. Project, Series 85, 3.80%,11/1/05 (a)............... 700,000
1,700,000 Connecticut DAI for General Accident Insurance Co., 3.20%, 12/1/13 (a).................... 1,700,000
450,500 Connecticut DAI for Regional YMCA Project, 3.75%, 6/1/08 (a).............................. 450,500
3,705,000 Connecticut Development Authority Health Care Revenue Bonds for Independent Living
Project, 3.75%, 7/1/15 (a).............................................................. 3,705,000
1,400,000 Connecticut Development Authority PCR for Central Vermont Public Service, 3.30%,
12/1/15(a).............................................................................. 1,400,000
1,500,000 Connecticut HEFA for Bradley Health Care, Series B, 3.50%, 7/1/29 (a)..................... 1,500,000
1,405,000 Connecticut HEFA for Charlotte Hospital, Series C, 3.70%, 7/1/13 (a)...................... 1,405,000
2,200,000 Connecticut HEFA for Housing Mortgage Finance Program, Series G, 3.75%, 5/15/18 (a)....... 2,200,000
350,000 Connecticut HEFA for Kingswood Oxford School Issue, Series A, 3.75%, 2/1/09 (a)........... 350,000
1,100,000 Connecticut HEFA for Pomfret School Issue, Series A, 3.90%, 7/1/24 (a).................... 1,100,000
950,000 Connecticut HEFA for Sharon Hospital, Series A, 3.75%, 7/1/27 (a)......................... 950,000
2,000,000 Connecticut HEFA for Yale University, Series U, 3.85%, 7/1/33 (a)......................... 2,000,000
1,500,000 Connecticut Special Asmt. Unemployment Comp. RAW, Series C, 3.38%, 11/15/01 (b)........... 1,500,000
2,010,000 Connecticut Special Tax Obligation RAW, Series C, 6.80%, 12/1/09 (c)...................... 2,050,200
4,280,000 Connecticut State GOB, Series B, 3.70%, 5/15/14 (a)....................................... 4,280,000
2,300,000 Connecticut State HEFA for St. Raphael, Series J, 3.60%, 7/1/22 (a)....................... 2,300,000
800,000 Connecticut State HEFA for Stamford Hospital, Series H, 3.60%, 7/1/24 (a)................. 800,000
4,770,000 Connecticut State Special Tax Transportation Infrastructure Second Lien Revenue Bonds,
3.80%, 12/1/10 (a)....................................................................... 4,770,000
2,300,000 Hartford Redev. Agency MHR for Underwood Towers Project, 3.80%, 6/1/20 (a)................ 2,300,000
3,000,000 New Britain BAN, 3.15%, 4/12/00........................................................... 3,001,366
1,600,000 Puerto Rico Electric Power Authority, 3.65%, 7/1/22 (a)................................... 1,600,000
200,000 Puerto Rico Highway & Transportation, Series A, 3.65%, 7/1/28 (a)......................... 200,000
1,200,000 Puerto Rico Ind. Med. & Envir. RAW for Reynolds Metals, 3.50, 9/1/13 (b).................. 1,200,000
500,000 Shelton, Connecticut HFA for Crosby Commons Project, 3.75%, 1/1/31 (a).................... 500,000
3,000,000 South Windsor, BAN, 2.89%, 3/22/00........................................................ 3,000,129
-----------
TOTAL INVESTMENTS (COST $46,362,195)...................................................... 89.6% 46,362,195
OTHER ASSETS, LESS LIABILITIES............................................................ 10.4 5,386,203
----- -----------
NET ASSETS................................................................................ 100.0% $51,748,398..
----- -----------
----- -----------
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES--NOVEMBER 30, 1999 (UNAUDITED)
<S> <C> <C>
ASSETS
Investments in securities, at value (cost $46,362,195).................................... $46,362,195
Cash...................................................................................... 5,029,836
Accrued interest receivable............................................................... 357,783
-----------
Total Assets.............................................................................. 51,749,814
-----------
LIABILITIES
Other payables and accrued expenses....................................................... 1,416
-----------
NET ASSETS................................................................................ $51,748,398
-----------
-----------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE, BASED ON 51,748,398 SHARES OF BENEFICIAL
INTEREST,
$.001 PAR VALUE OUTSTANDING.......................................................................
$1.00
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
RESERVE TAX-EXEMPT TRUST--FLORIDA TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--95.8% (NOTE 1)
- ------------ ----------------------------- -----------
<S> <C> <C>
FLORIDA--46.8%
$ 925,000 Brevard County MHR for Malabar Lakes Proj., 3.85%, 12/1/10 $ 925,000
(a).......................................................
800,000 Broward MHR for Welleby Apt. Project, Series 1984, 3.65%, 800,000
12/1/06 (a)...............................................
400,000 Dade HFAR Rev. Bonds for Miami Children's Hospital, 4.10%, 400,000
9/1/25 (a)................................................
95,000 Dade IDA for Aviation Authority Facilities, Series 84A, 95,000
3.75%, 10/1/09 (a)........................................
900,000 Dade IDA for Dolphin Stadium Project, Series C, 3.80%, 900,000
1/1/16 (a)................................................
400,000 Florida Local Gov Auth for Lake Wales Medical Center, 400,000
Series A, 4.05%, 3/1/15 (a)...............................
840,000 Florida Municipal Power Agency, COP, 3.70%, 3/9/00 (b)..... 840,000
225,000 Gulf Breeze IDA Revenue Bonds, Series 85, 3.85%, 12/1/15
(a)....................................................... 225,000
300,000 Hillsborough County IDA PCR for Gannon Coal, 3.80%, 5/15/18
(a)....................................................... 300,000
1,000,000 Orange HFAR for Adventist Health System, 3.70%, 11/15/14
(a)....................................................... 1,000,000
500,000 Palm Beach PCR for Water and Sewer Project, 3.70%, 10/1/11
(a)....................................................... 500,000
400,000 Pinnellas County--Chi Chi Rodriguez Foundation, 3.95%,
8/1/16 (a)................................................ 400,000
500,000 Pinnellas School District, TAN, 4.25%, 6/30/00............. 501,692
200,000 Port St. Lucie PCR for Florida Power and Light, 3.70%,
1/1/11 (a)................................................ 200,000
590,000 Port St. Lucie PCR for Florida Power and Light, 3.70%,
1/1/26 (a)................................................ 590,000
400,000 Port St. Lucie PCR for Florida Power and Light, 3.80%,
3/1/27 (a)................................................ 400,000
700,000 Sarasota Bay Village Project, 3.95%, 12/1/23 (a)........... 700,000
200,000 Tampa Occupational License Tax Bonds, 3.75%, 5/1/27 (a).... 200,000
-----------
9,376,692
ALABAMA--2.5%
500,000 Montgomery Special Care Facilities Hospital VHA, Series H,
3.95%, 12/1/30 (a)........................................ 500,000
-----------
ARIZONA--6.5%
300,000 Apache IDA for Tucson Electric Power Company, Series, 83A,
3.90%, 12/15/18 (a)....................................... 300,000
500,000 Apache IDA for Tucson Electric Power Company, Series, 83B,
3.95%, 12/15/18 (a)....................................... 500,000
500,000 Apache IDA for Tucson Electric Power Company, 4.00%,
12/1/20 (a)............................................... 500,000
-----------
1,300,000
DISTRICT OF COLUMBIA--4.5%
900,000 Washington, D.C., George Washington University, 3.90%,
3/1/06 (a)................................................ 900,000
-----------
GEORGIA--4.5%
900,000 Clayton Housing Authority MFH for Welleby Apartments
Project, 3.975%, 5/1/06 (a)............................... 900,000
-----------
ILLINOIS--7.5%
900,000 Illinois Dev. Fin. Auth. PCR for Commonwealth Edison,
Series C, 3.90%, 3/1/09 (a)............................... 900,000
400,000 Illinois HFA for Southern Illinois Healthcare, Series B,
3.85%, 3/1/21 (a)......................................... 400,000
200,000 Naperville Heritage YMCA Group, 3.80%, 12/1/29 (a)......... 200,000
-----------
1,500,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
RESERVE TAX-EXEMPT TRUST--FLORIDA TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1999 (UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--95.8%--(CONTINUED) (NOTE 1)
- ------------ ------------------------------------------ -----------
<S> <C> <C>
MARYLAND--4.5%
$ 900,000 Baltimore IDA for Cap. Acquisition, 3.90%, 8/1/16 (a)...... $ 900,000
-----------
NEW JERSEY--2.0%
400,000 New Jersey EDA for Volvo of American Corp., 4.07%, 12/1/04
(a)....................................................... 400,000
-----------
NEW YORK--3.0%
500,000 New York City GOB, Series B, 4.00%, 10/1/20 (a)............ 500,000
100,000 New York City GOB, Series B5, 3.65%, 8/15/09 (a)........... 100,000
-----------
600,000
OHIO--4.0%
800,000 Franklin County for US Health Corp., Series A, 3.90%,
12/1/21 (a)............................................... 800,000
-----------
PENNSYLVANIA--3.5%
700,000 Delaware Valley Fin. Authority Rev. Bonds, Series 85B,
3.80%, 12/1/20 (a)........................................ 700,000
-----------
TEXAS--4.0%
800,000 Harris County HCF for Greater Houston Project, 3.90%,
11/1/25 (a)............................................... 800,000
-----------
WISCONSIN--2.5%
500,000 Green Bay IDA for St. Mary's Holdings, Inc., 4.00%,
11/1/00(a)....................................... 500,000
-----------
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS (COST $19,176,692).............. 95.8% 19,176,692
OTHER ASSETS, LESS LIABILITIES.................... 4.2 850,787
----- -----------
NET ASSETS........................................ 100.0% $20,027,479
===== ===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
SHARE BASED ON 20,027,479 SHARES
OF BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING.. $1.00
=====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
RESERVE TAX-EXEMPT TRUST--MASSACHUSETTS TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS--NOVEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--93.7% (NOTE 1)
- ----------- ----------------------------- ----------
<S> <C> <C> <C>
$495,000 Dartmouth GOB, 6.50%, 8/1/00 (b).......................................................... $ 503,188
500,000 Massachusetts DFA for New Bedford Whaling Museum, 3.80%, 9/1/29 (a)....................... 500,000
500,000 Massachusetts HEFA for Capital Asset Program, 3.55%, 1/1/01 (a)........................... 500,000
300,000 Massachusetts HEFA for Harvard University, Series Q, 3.71%, 9/1/40 (a).................... 300,000
500,000 Massachusetts HEFA for Partnership Healthcare System, 3.85%, 7/1/27 (a)................... 500,000
200,000 Massachusetts HEFA Capital Assist, Series D, 3.80%, 1/1/35 (a)............................ 200,000
300,000 Massachusetts HEFA for Berklee College of Music, 3.80%, 10/1/27 (a)....................... 300,000
500,000 Massachusetts HEFA for Boston University, COP, 3.75% 12/1/15 (b).......................... 500,000
485,000 Massachusetts HEFA for Endicott College, Series B, 3.80%, 10/1/18 (a)..................... 485,000
95,000 Massachusetts HEFA for Harvard University, 3.71%, 8/1/17 (a).............................. 95,000
400,000 Massachusetts HEFA for Wellesley College, Series B, 3.60%, 7/1/39 (a)..................... 400,000
1,000,000 Massachusetts Housing Fin. Agency for Multifamily Housing, 3.75%, 1/15/10 (a)............. 1,000,000
300,000 Massachusetts IDA for KRH Rolls Project, Series 1988, 4.25%, 5/1/06 (a)................... 300,000
500,000 Massachusetts IFA for Governor Dummer Academy, 3.75%, 7/1/26 (a).......................... 500,000
300,000 Massachusetts IFA for Holyoke Water Power Project, 3.65%, 5/1/22 (a)...................... 300,000
140,000 Massachusetts IFA for Quemco, Series B, 3.85%, 9/1/01 (a)................................. 140,000
500,000 Massachusetts Water Resource Authority, Series A, 3.80%, 11/1/26 (a)...................... 500,000
300,000 Massachusetts Water Resource Authority, 3.80%, 4/1/28 (a)................................. 300,000
1,500,000 Triton Regional School District, BAN, 3.50%, 4/12/00...................................... 1,501,846
400,000 Watertown BAN, 4.25%, 11/16/00............................................................ 401,400
781,000 Westwood GOB, 4.00%, 12/15/99............................................................. 781,266
-----------
TOTAL INVESTMENTS (COST $10,007,700)..................................................... 93.7% 10,007,700
OTHER ASSETS, LESS LIABILITIES........................................................... 6.3 674,382
----- -----------
NET ASSETS............................................................................... 100.0% $10,682,082
===== ===========
<CAPTION>
STATEMENT OF ASSETS AND LIABILIITIES
NOVEMBER 30, 1999 (UNAUDITED)
<S> <C> <C>
ASSETS
Investments in securities, at value (cost $10,007,700).................................. $10,007,700
Cash.................................................................................... 1,096,346
Accrued interest receivable............................................................. 82,681
-----------
Total Assets............................................................................ 11,186,727
-----------
LIABILITIES
Other payables and accrued expenses..................................................... 504,645
-----------
NET ASSETS.............................................................................. $10,682,082
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE, BASED ON 10,682,082 SHARES OF
BENEFICIAL INTEREST,
$.001 PAR VALUE OUTSTANDING............................................................
$1.00
=====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
RESERVE TAX-EXEMPT TRUST--MICHIGAN TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS--NOVEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--56.0% (NOTE 1)
- ----------- ----------------------------- ----------
<S> <C> <C> <C>
$100,000 Bruce Catholic Health Initiatives, 3.90%, 5/1/18 (a)..................................... $ 100,000
100,000 Delta EDC for Mead-Escanaba Paper Series E, 3.75%, 12/1/23 (a)........................... 100,000
95,000 Garden City Hospital Finance Authority, 3.90%, 9/1/26 (a)................................ 95,000
100,000 Grand Rapids Water Supply System, 3.80%, 1/1/20 (a)...................................... 100,000
100,000 Jackson EDC for Thrifty Leoni Inc. Project, 3.975%, 12/1/14 (a).......................... 100,000
100,000 Michigan Hospital Finance Authority St. Mary Hospital of Livonia, 3.90%, 7/1/17 (a)...... 100,000
100,000 Michigan Housing Development Authority Harbortown Ltd., 3.975%, 6/1/04 (a)............... 100,000
100,000 Michigan Housing Development Authority for Fairlane Meadow, 3.90%, 12/1/07 (a)........... 100,000
100,000 Michigan Job Development Authority for Gordon Food Service, 3.85%, 8/1/15 (a)............ 100,000
100,000 Michigan Strategic Fund for Allen Group Inc., 3.90%, 11/1/25 (a)......................... 100,000
100,000 Michigan Strategic Fund for Detroit Edison, Series 95C, 3.80%, 9/1/30(a)................. 100,000
100,000 Royal Oak HFA for William Beaumont Hospital, Series L, 3.75%, 1/1/27 (a)................. 100,000
-----------
TOTAL INVESTMENTS (COST $1,195,000)..................................................... 56.0% 1,195,000
OTHER ASSETS, LESS LIABILITIES.......................................................... 44.0 939,431
----- -----------
NET ASSETS.............................................................................. 100.0% $ 2,134,431
===== ===========
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999 (UNAUDITED)
<S> <C> <C>
ASSETS
Investment in securities, at value (cost $1,195,000).................................... $ 1,195,000
Cash.................................................................................... 933,696
Accrued Interest Receivable 5,793
-----------
Total Assets............................................................................ 2,134,489
LIABILITIES
Other payables and accrued expenses..................................................... 58
-----------
NET ASSETS.............................................................................. $ 2,134,431
===========
NET ASSET VALUE OFFERING AND REDEMPTION PRICE PER SHARE, BASED ON 2,134,431 SHARES OF
BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING....................................... $1.00
=====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
RESERVE TAX-EXEMPT TRUST--NEW JERSEY TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS--NOVEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--88.6% (NOTE 1)
- ----------- ----------------------------- ----------
<S> <C> <C> <C>
$700,000 Atlantic City Pooled Loan Program, 3.70%, 7/1/26 (a)...................................... $ 700,000
500,000 Bergen County GOB, 4.50%, 7/15/00......................................................... 502,253
1,800,000 Camden Improvement Authority Pooled Government Loan Program, 3.75%, 6/1/29 (a)............ 1,800,000
500,000 Essex County Improvement Authority, 3.75%, 12/01/25 (a)................................... 500,000
1,400,000 Essex Improvement Authority for the Children's Institute, 3.80%, 2/1/20 (a)............... 1,400,000
2,073,340 Fairfield BAN, 3.25%, 1/26/00............................................................. 2,073,632
1,500,000 Freehold Township BAN, 4.25%, 11/10/00.................................................... 1,506,128
200,000 Monmouth Improvement Authority Pooled Government Loan Program, 3.55%, 8/1/16 (a).......... 200,000
400,000 New Jersey EDA for 400 Int'l. DR Partners, 3.30%, 9/1/05 (a).............................. 400,000
1,800,000 New Jersey EDA for Bayonne IMTT Docking Revenue Bonds, 3.65%, 12/1/27 (a)................. 1,800,000
680,000 New Jersey EDA for Economic Growth Bond, Series F, 3.80%, 8/1/14 (a)...................... 680,000
1,100,000 New Jersey EDA for Foreign Trade Zone, 3.65%, 12/1/07 (a)................................. 1,100,000
500,000 New Jersey EDA for NJ Natural Gas Co. Project, 3.65%, 1/1/28 (a).......................... 500,000
800,000 New Jersey EDA for RJB Assoc. Project, 3.80%, 8/1/08 (a).................................. 800,000
900,000 New Jersey EDA for St. James Preparatory School, 3.75%, 12/1/27 (a)....................... 900,000
1,005,000 New Jersey EDA for St. Peters School, Series 1995, 3.80%, 1/1/10 (a)...................... 1,005,000
300,000 New Jersey EDA for Stolthaven Proj., Series A, 3.75%, 1/15/18 (a)......................... 300,000
400,000 New Jersey EDA for Trailer Marine Corps Project, 3.60%, 2/1/02 (a)........................ 400,000
3,700,000 New Jersey EDA for Volvo of American Corp., 4.07%, 12/1/04 (a)............................ 3,700,000
850,000 New Jersey EDA, Series CC, 3.75%, 12/1/09 (a)............................................. 850,000
1,000,000 New Jersey EFA for College of NJ, Series A, 3.75%, 7/1/29 (a)............................. 1,000,000
1,200,000 New Jersey EFA for Higher Education, Series A, 5.125%, 9/1/00 (b)......................... 1,212,893
400,000 New Jersey HCF Hospital Capital Asset, Series C, 3.65%, 7/1/35 (a)........................ 400,000
1,810,000 New Jersey Sports Expo Authority, Series 92C, 3.85%, 9/01/24 (a).......................... 1,810,000
2,150,000 New Jersey Transportation, Series A, GOB, 6.00%, 6/15/00 (c).............................. 2,176,645
3,400,000 New Jersey Turnpike Authority General, Series 91D, 3.65%, 1/1/18 (a)...................... 3,400,000
1,900,000 Port Authority NY and NJ, Liq. Facility, Series 5, 3.65%, 8/1/24 (a)...................... 1,900,000
1,000,000 Port Authority NY and NJ, Series 2, 3.75%, 5/1/19 (a)..................................... 1,000,000
500,000 Somerset County GOB, 4.70%, 9/1/00........................................................ 503,373
1,000,000 Vernon Board of Education Temporary Note, 3.20%, 12/3/99.................................. 1,000,006
-----------
TOTAL INVESTMENTS (COST $35,519,930)..................................................... 88.6% 35,519,930
OTHER ASSETS, LESS LIABILITIES........................................................... 11.4 4,561,101
----- -----------
NET ASSETS............................................................................... 100.0% $40,081,031
===== ===========
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999 (UNAUDITED)
<S> <C>
ASSETS
Investments in securities, at value (cost $35,519,930)................................... $35,519,930
Cash..................................................................................... 4,247,816
Accrued Interest receivable.............................................................. 314,458
-----------
Total Assets............................................................................. 40,082,204
-----------
LIABILITIES
Other payables and accrued expenses...................................................... 1,173
-----------
NET ASSETS............................................................................... $40,081,031
-----------
-----------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE, BASED ON 40,081,031 SHARES OF
BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING........................................ $1.00
=====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
RESERVE TAX-EXEMPT TRUST--OHIO TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS--NOVEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--50.7% (NOTE 1)
- ----------- ----------------------------- -----------
<S> <C> <C> <C>
$ 90,000 Cuyahoga HFA for Cleveland Clinic, Series A, 3.90%, 1/1/16 (a)............................ $ 90,000
100,000 Cuyahoga IDA for Allen Group Project, 3.80%, 12/1/15 (a).................................. 100,000
100,000 Franklin County Hosp. Revenue for US Health Corp., Series 96A, 3.90%, 12/1/21 (a)......... 100,000
100,000 Franklin County Industrial Development Refunding Revenue Bonds for Kinder-Care Learning
Centers Project, Series A, 4.00%, 6/1/02 (a)............................................. 100,000
100,000 Lucas County EDA for Lutheran Home Society Project, 3.85%, 11/1/19 (a).................... 100,000
100,000 Ohio State Air Quality Dev. Auth. for Cincinnati Gas & Elec., 3.60%, 9/1/30 (a)........... 100,000
100,000 Ohio State Air Quality Dev. Auth. for Mead Corp., 3.60%, 10/1/01 (a)...................... 100,000
100,000 Ohio State Air Quality, Series A, 3.95%, 12/1/15 (a)...................................... 100,000
100,000 Ottawa County, HFR for Luther Home of Mercy, 3.95%, 10/1/17 (a)........................... 100,000
100,000 Port Authority of Cincinnati and Hamilton Counties for Kenwood Office Association, 3.95%,
9/1/25 (a)............................................................................... 100,000
100,000 Puerto Rico Electric Power Authority, Series SGA 43, 3.65%, 7/1/2 (a)..................... 100,000
100,000 Sharonville IDA for Edgecomb Metals Inc., 3.90%, 11/1/09 (a).............................. 100,000
-----------
TOTAL INVESTMENTS (COST $1,190,000)....................................................... 50.7% 1,190,000
OTHER ASSETS, LESS LIABILITIES............................................................ 49.3 1,158,284
----- -----------
NET ASSETS................................................................................ 100.0% $ 2,348,284
===== ===========
<CAPTION>
------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES--NOVEMBER 30, 1999 (UNAUDITED)
<S> <C> <C>
ASSETS
Investments in securities, at value (cost $1,190,000)..................................... $ 1,190,000
Cash...................................................................................... 1,153,805
Accrued interest receivable............................................................... 4,543
-----------
Total Assets.............................................................................. 2,348,348
-----------
LIABILITIES
Other payables and accrued expenses....................................................... 64
-----------
NET ASSETS................................................................................ $ 2,348,284
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE, BASED ON 2,348,284 SHARES OF
BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING......................................... $1.00
=====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
RESERVE TAX-EXEMPT TRUST--PENNSYLVANIA TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS--NOVEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--74.8% (NOTE 1)
- ----------- ----------------------------- -----------
<S> <C> <C> <C>
$1,200,000 Allegheny HAD for Allegheny Hosp., Series B, 4.85%, 9/1/10 (a)............................ $ 1,200,000
200,000 Allegheny Hosp. Dev. Auth. for Allegheny Hosp., Series B, 4.85%, 9/1/20 (a)............... 200,000
600,000 Allegheny Hosp. Dev. Auth. for Allegheny Hosp., Series B, 3.85% 11/1/27 (a)............... 600,000
500,000 Allegheny GOB Series C38, 6.10%, 9/1/00 (b)............................................... 508,202
500,000 Allegheny Hosp. Dev. Auth., Childrens' Hosp. Pitt., Series B, 4.00%, 12/1/15 (a).......... 500,000
600,000 Allegheny University of Pittsburgh Project, Series 85, 3.75%, 7/1/15 (a).................. 600,000
200,000 Allegheny IDA for Longwood at Oakmont, 3.70%, 7/1/27 (a).................................. 200,000
400,000 Allegheny IDA for Environmental Improvements, 3.85% 12/1/32 (a)........................... 400,000
1,000,000 Beaver IDA, Ohio Edison Co., RAW, 3.10%, 10/1/23 (b)...................................... 1,000,000
600,000 Beaver PCR, COP, 3.90%, 8/1/25 (b)........................................................ 600,000
630,000 Bucks IDA for Edgecomb Metals Co., 3.90%, 10/1/09 (a)..................................... 630,000
100,000 Chartier Valley IDA Bonds for 1133 Penn Ave. Associates Project, Series A, 4.00%, 8/1/07
(a)...................................................................................... 100,000
600,000 Dallastown Area School District GOB, 3.95%, 2/1/18 (a).................................... 600,000
600,000 Delaware Valley Regional Finance Authority, Series 85, 3.80%, 12/1/20 (a)................. 600,000
15,000 Lehigh IDA for Allentown Airport, 3.95%, 12/1/05 (a)...................................... 15,000
400,000 Mercersburg General Purpose Authority, 3.95%, 11/1/27 (a)................................. 400,000
1,000,000 Montgomery County COP, 3.40%, 12/15/99 (b)................................................ 1,000,000
500,000 Pennsylvania Turnpike Authority, RAW, 7.50%, 12/1/19 (c).................................. 510,000
200,000 Philadelphia Gas, RAW, 4.25%, 8/1/00 (b).................................................. 200,447
500,000 Philadelphia MHR for Harbor View Tower Project, 4.00%, 11/1/27 (a)........................ 500,000
500,000 Washington Authority for Higher Education Pooled Equipment Lease, 3.90%, 11/1/05 (a)...... 500,000
300,000 York for Philadelphia Electric Corp., 3.65%, 8/1/16 (a)................................... 300,000
500,000 York IDA Pollution Control for Public Service Electric & Gas, Series A, 3.85%, 9/1/20 (a). 500,000
100,000 York County General Auth. For Pooled Financing Prog., 3.95%, 9/1/26 (a)................... 100,000
-----------
TOTAL INVESTMENTS (COST $11,763,649)...................................................... 74.8% 11,763,649
OTHER ASSETS, LESS LIABILITIES............................................................ 25.2 3,954,588
----- -----------
NET ASSETS................................................................................ 100.0% $15,718,237
===== ===========
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES--NOVEMBER 30, 1999 (UNAUDITED)
<S> <C>
ASSETS
Investments in securities, at value (cost $11,763,649).................................... $11,763,649
Cash...................................................................................... 3,873,752
Accrued interest receivable............................................................... 82,947
-----------
Total Assets.............................................................................. 15,720,348
-----------
LIABILITIES
Other payables and accrued expenses....................................................... 2,111
-----------
NET ASSETS................................................................................ $15,718,237
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE, BASED ON 15,718,237 SHARES OF
BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING......................................... $1.00
=====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
SECURITY TYPE ABBREVIATIONS:
<TABLE>
<S> <C> <C>
BAN -- Bond Anticipation Notes
COP -- Certificate of Participation
CRA -- Community Redevelopment Agency
DAI -- Development Authority Industrial Development
Refunding Bonds
DFA -- Development Finance Agency
EDA -- Economic Development Authority Revenue Bonds
EDC -- Economic Development Corporation
EFA -- Education Facilities 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 -- Housing Finance Authority
HFAR -- Health Facilities Authority Revenue
HFR -- Housing Finance Revenue Bonds
IDA -- Industrial Development Authority Revenue Bonds
IDR -- Industrial Development Agency Revenue Bonds
IFA -- Industrial Finance Authority
MFH -- Multifamily Housing
MHR -- Multifamily Housing Revenue Bonds
PCR -- Pollution Control Revenue Bonds
RAN -- Revenue Anticipation Notes
RAW -- Revenue Anticipation Warrants
TAN -- Tax Anticipation Notes
</TABLE>
- ---------------
(a) The interest rates, as reported on May 31, 1999, are subject to change
periodically. Securities payable on demand, are collateralized by bank
letters of credit or other credit agreements.
(b) Securities are collateralized by bank letters of credit or other credit
agreements.
(c) Securities are collateralized by U.S. Government Obligations.
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
RESERVE NEW YORK RESERVE TAX-EXEMPT TRUST
TAX-EXEMPT TRUST ---------------------------------------------------------
---------------- CALIFORNIA II CONNECTICUT FLORIDA MASSACHUSETTS
NEW YORK FUND FUND* FUND FUND FUND
---------------- ------------- ----------- -------- -------------
<S> <C> <C> <C> <C> <C>
INTEREST INCOME (Note 1)................. $2,885,594 $ 574,292 $ 769,627 $357,614 $ 180,968
---------- ----------- ---------- -------- ---------
EXPENSES (Note 2)
Comprehensive management fee........... 675,725 138,624 184,989 77,239 42,451
Distribution (12b-1) Fees.............. 217,065 28,656 59,572 29,447 14,376
Tax expense............................ 674 -- 674 674 674
---------- ----------- ---------- -------- ---------
Total Expenses....................... 893,464 167,280 245,235 107,360 57,501
---------- ----------- ---------- -------- ---------
NET INVESTMENT INCOME.................... $1,992,130 $ 407,012 $ 524,392 $250,254 $ 123,467
========== =========== ========== ======== =========
<CAPTION>
RESERVE TAX-EXEMPT TRUST
-----------------------------------------------------------
MICHIGAN NEW JERSEY OHIO PENNSYLVANIA
FUND FUND FUND FUND
---------------- ---------- ------- -------------
<S> <C> <C> <C> <C>
INTEREST INCOME (Note 1)................. $ 20,040 $ 634,730 $19,842 $ 283,015
-------- ---------- ------- ---------
EXPENSES (Note 2)
Comprehensive management fee........... 4,947 160,529 4,710 63,887
Distribution (12b-1) Fees.............. 1,237 48,554 1,517 20,459
Tax expense............................ -- 674 -- 674
-------- ---------- ------- ---------
Total Expenses....................... 6,184 209,757 6,227 85,020
-------- ---------- ------- ---------
NET INVESTMENT INCOME.................... $ 13,856 $ 424,973 $13,615 $ 197,995
======== ========== ======= =========
</TABLE>
- ---------------
* For the period July 2, 1999 (Commencement of Operations) to November 30, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
<TABLE>
<CAPTION>
RESERVE TAX-EXEMPT
TRUST
RESERVE NEW YORK TAX-EXEMPT TRUST ------------------
-----------------------------------
CALIFORNIA II FUND
NEW YORK FUND ------------------
----------------------------------- FOR THE PERIOD
SIX MONTHS JULY 2, 1999
ENDED (COMMENCEMENT OF
NOVEMBER 30, YEAR ENDED OPERATIONS) TO
1999 MAY 31, 1999 NOVEMBER 30, 1999
------------- ------------- ------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
INVESTMENT OPERATIONS:
Net investment income.............. $ 1,992,130 $ 4,121,961 $ 407,012
------------- ------------- --------------
DIVIDENDS PAID TO SHAREHOLDERS FROM:
Net investment income (Note 1)..... (1,992,130) (4,121,961) (407,012)
------------- ------------- --------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00 per
share):
Net proceeds from sale of shares... 325,450,929 727,809,717 183,550,732
Dividends reinvested............... 1,992,130 4,121,961 407,012
Cost of shares redeemed............ (335,735,563) (717,162,559) (127,319,887)
------------- ------------- --------------
Net increase (decrease) in net assets
derived from capital share
transactions and from investment
operations......................... (8,292,504) 14,769,119 56,637,857
NET ASSETS:
Beginning of period................ 185,981,358 171,212,239 --
------------- ------------- --------------
End of period...................... $ 177,688,854 $ 185,981,358 $ 56,637,857
============= ============= ==============
<CAPTION>
CONNECTICUT FUND
-------------------------------
SIX MONTHS
ENDED NOVEMBER YEAR ENDED
30, 1999 MAY 31, 1999
--------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
INVESTMENT OPERATIONS:
Net investment income.............. $ 524,392 $ 1,006,967
--------------- -------------
DIVIDENDS PAID TO SHAREHOLDERS FROM:
Net investment income (Note 1)..... (524,392) (1,006,967)
--------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00 per
share):
Net proceeds from sale of shares... 44,670,085 169,702,015
Dividends reinvested............... 524,392 1,006,967
Cost of shares redeemed............ (48,884,757) (152,056,981)
--------------- -------------
Net increase (decrease) in net assets
derived from capital share
transactions and from investment
operations......................... (3,690,280) 18,652,001
NET ASSETS:
Beginning of period................ 55,438,678 36,786,677
--------------- -------------
End of period...................... $ 51,748,398 $ 55,438,678
=============== =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)--(CONTINUED)
<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,
1999 1999 1999 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income.................... $ 250,254 $ 509,841 $ 123,467 $ 569,377
------------ ------------ ----------- ------------
DIVIDENDS PAID TO SHAREHOLDERS FROM:
Net investment income (Note 1)........... (250,254) (509,841) (123,467) (569,377)
------------ ------------ ----------- ------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00 per share):
Net proceeds from sale of shares......... 65,884,440 141,741,605 22,980,863 76,638,806
Dividends reinvested..................... 250,254 509,841 123,467 569,377
Cost of shares redeemed.................. (68,737,305) (130,438,595) (32,350,539) (82,662,880)
------------ ------------ ----------- ------------
Net increase (decrease) in net assets
derived from capital share transactions
and from investment operations........... (2,602,611) 11,812,851 (9,246,209) (5,454,697)
NET ASSETS:
Beginning of period........................ 22,630,090 10,817,239 19,928,291 25,382,988
------------ ------------ ----------- ------------
End of period.............................. $ 20,027,479 $ 22,630,090 $10,682,082 $ 19,928,291
============ ============ =========== ============
<CAPTION>
MICHIGAN FUND
---------------------------------
SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, MAY 31,
1999 1999 (A)
---------------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income.................... $ 13,856 $ 14,305
---------------- ------------
DIVIDENDS PAID TO SHAREHOLDERS FROM:
Net investment income (Note 1)........... (13,856) (14,305)
---------------- ------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00 per share):
Net proceeds from sale of shares......... 3,752,586 2,100,000
Dividends reinvested..................... 13,856 14,305
Cost of shares redeemed.................. (2,846,316) (900,000)
---------------- ------------
Net increase (decrease) in net assets
derived from capital share transactions
and from investment operations........... 920,126 1,214,305
NET ASSETS:
Beginning of period........................ 1,214,305 --
---------------- ------------
End of period.............................. $ 2,134,431 $ 1,214,305
================ ============
<CAPTION>
RESERVE TAX-EXEMPT TRUST
----------------------------------------------------------------
NEW JERSEY FUND OHIO FUND
------------------------------ -----------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1999 1999 1999 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income.................... $ 424,973 $ 978,333 $ 13,615 $ 41,205
------------ ------------ ----------- ------------
DIVIDENDS PAID TO SHAREHOLDERS FROM:
Net investment income (Note 1)........... (424,973) (978,333) (13,615) (41,205)
------------ ------------ ----------- ------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00 per share):
Net proceeds from sale of shares......... 90,798,787 223,758,247 4,412,369 2,750,308
Dividends reinvested..................... 424,973 978,333 13,615 41,205
Cost of shares redeemed.................. (92,459,225) (221,020,524) (3,300,186) (4,075,632)
------------ ------------ ----------- ------------
Net increase (decrease) in net assets
derived from capital share transactions
and from investment operations........... (1,235,465) 3,716,056 1,125,798 (1,284,119)
NET ASSETS:
Beginning of period...................... 41,316,496 37,600,440 1,222,486 2,506,605
------------ ------------ ----------- ------------
End of period............................ $ 40,081,031 $ 41,316,496 $ 2,348,284 $ 1,222,486
============ ============ =========== ============
<CAPTION>
PENNSYLVANIA FUND
---------------------------------
SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, MAY 31,
1999 1999
---------------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income.................... $ 197,995 $ 428,975
---------------- ------------
DIVIDENDS PAID TO SHAREHOLDERS FROM:
Net investment income (Note 1)........... (197,995) (428,975)
---------------- ------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00 per share):
Net proceeds from sale of shares......... 29,384,987 79,111,957
Dividends reinvested..................... 197,995 428,975
Cost of shares redeemed.................. (30,814,034) (75,778,781)
---------------- ------------
Net increase (decrease) in net assets
derived from capital share transactions
and from investment operations........... (1,231,052) 3,762,151
NET ASSETS:
Beginning of period...................... 16,949,289 13,187,138
---------------- ------------
End of period............................ $ 15,718,237 $ 16,949,289
================ ============
</TABLE>
- ------------------
(a) For the period December 14, 1998 (Commencement of Operations) to May 31,
1999.
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
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. As
of November 30, 1999, Reserve Tax-Exempt Trust shares are divided into
nine series: California II, 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 the Reserve Tax-Exempt
Trust except for Interstate 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, the maturity of floating or variable rate instruments in which the
Fund may invest, will be deemed to be for floating rate instruments (1)
the notice period required before the Fund is entitled to receive payment
of principal amount of the instrument; and for variable rate instruments
the longer of (1) above or, (2) the period remaining until the
instrument's next rate adjustment, for purposes of Rule 2a-7 and for
computing the portfolio's average weighted life to maturity.
C. It is the Trusts' policy to comply with 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, manages the Fund's investments,
effects purchases and sales thereof, and absorbs certain promotional
expenses. For its services as Investment Adviser prior to June 26, 1999,
RMCI receives a management fee from each Fund, except Michigan, calculated
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 average daily net assets.
Effective June 26, 1999, Reserve New York Tax-Exempt Trust and Reserve
Tax-Exempt Trust entered into a new Investment Management Agreement with
RMCI, which is substantially similar to the Investment Management
Agreement previously in effect with regard to each Fund, except for a new
comprehensive management fee. The Agreement provides that RMCI will
furnish continuous investment advisory and management services to the
Funds.
For its services, RMCI receives a fee of 0.80% per year of the average
daily net assets of each Fund. RMCI pays all employee and customary
operating expenses of the Fund. Excluded from the definition of customary
operating expenses are interest, taxes, brokerage fees, extraordinary
legal and accounting fees and expenses, and the fees of the disinterested
Trustees, for which each Fund pays its direct or allocated share.
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.
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
(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.
(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, 1999, the percentage invested in such obligations amounted
to:
New York 97% Michigan 100%
California II 90% New Jersey 78%
Connecticut 79% Ohio 100%
Florida 97% Pennsylvania 100%
Massachusetts 69%
(5) COMPONENTS OF NET ASSETS
At November 30, 1999, the components of each Fund's net
assets was as follows:
<TABLE>
<CAPTION>
NEW YORK CALIFORNIA II CONNECTICUT FLORIDA MASSACHUSETTS
---------- ------------- ------------ ---------- --------------
<S> <C> <C> <C> <C> <C>
Par Value....................... $ 177,689 $ 56,638 $ 51,748 $ 20,027 $ 10,682
Paid-in-Capital................. 177,511,165 56,581,219 51,696,650 20,007,452 10,671,400
------------ ------------ ------------ ------------ -------------
Net Assets...................... $177,688,854 $ 56,637,857 $ 51,748,398 $ 20,027,479 $ 10,682,082
============ ============ ============ ============ =============
<CAPTION>
MICHIGAN NEW JERSEY OHIO PENNSYLVANIA
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
Par Value....................... $ 2,134 $ 40,081 $ 2,348 $ 15,718
Paid-in-Capital................. 2,132,297 40,040,950 2,345,936 15,702,519
------------ ------------ ------------ ------------
Net Assets...................... $ 2,134,431 $ 40,081,031 $ 2,348,284 $ 15,718,237
============ ============ ============ ============-
</TABLE>
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
(7) FINANCIAL HIGHLIGHTS:
Contained below is per share operating performance data for a share of
beneficial interest outstanding for each of the periods as indicated.
<TABLE>
<CAPTION>
SIX MONTHS
ENDING FISCAL YEARS ENDED MAY 31,
NOVEMBER 30, ---------------------------------------------------
NEW YORK TAX-EXEMPT FUND 1999 1999 1998 1997 1996 1995
----------------------------------- ------------ ------- ------- ------- ------- -------
<S> <C> <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.............. .0112 .0222 .0268 .0247 .0276 .0253
Dividends from net investment
income............................. (.0112) (.0222) (.0268) (.0247) (.0276) (.0253)
-------- ------- ------- ------- ------- -------
Net asset value, end of period..... $ 1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
-------- ------- ------- ------- ------- -------
-------- ------- ------- ------- ------- -------
Total Return....................... 2.23%(b) 2.22% 2.68% 2.47% 2.76% 2.53%
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
-----------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net assets end of period
(millions)......................... $ 177.7 $ 186.0 $ 171.2 $ 153.2 $ 125.5 $ 152.9
Ratio of expenses to average net
assets............................. 1.00%(b) 1.00% .94% 1.04% 1.04% .98%
Ratio of net investment income to
average net assets................. 2.20%(b) 2.19% 2.63% 2.43% 2.72% 2.48%
<CAPTION>
FOR THE PERIOD
JULY 2, 1999
(COMMENCEMENT OF
OPERATIONS) TO
NOVEMBER 30,
CALIFORNIA II TAX-EXEMPT FUND 1999
----------------------------------- -----------------
<S> <C> <C>
Net asset value, beginning of period............................................................... $1.0000
-------
Net investment income.............................................................................. .0087
Dividends from net investment income............................................................... (.0087)
-------
Net asset value, end of period..................................................................... $1.0000
-------
-------
Total Return....................................................................................... 2.09%(b)
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
------------------------------------
<S> <C> <C>
Net assets at end of period (millions)............................................................. $ 56.6
Ratio of expenses to average net assets............................................................ 1.00%(b)
Ratio of net investment income to average net assets............................................... 2.12%(b)
</TABLE>
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
SIX MONTHS
ENDING FISCAL YEARS ENDED MAY 31,
NOVEMBER 30, ---------------------------------------------------
CONNECTICUT TAX-EXEMPT FUND 1999 1999 1998 1997 1996 1995
--------------------------- ------------ ------- ------- ------- ------- -------
<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.............. .0107 .0221 .0267 .0243 .0266 .0254
Dividends from net investment
income............................. (.0107) (.0221) (.0267) (.0243) (.0266) (.0254)
-------- ------- ------- ------- ------- -------
Net asset value, end of period..... $ 1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======== ======= ======= ======= ======= =======
Total Return....................... 2.13%(b) 2.21% 2.67% 2.43% 2.66% 2.54%
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
---------------------------
<S> <C> <C> <C> <C> <C> <C>
Net assets end of period
(millions)......................... $ 51.7 $ 55.4 $ 36.8 $ 33.5 $ 34.8 $ 26.6
Ratio of expenses to average net
assets............................. 1.00%(b) 1.00% .89% .97% 1.01% .99%(c)
Ratio of net investment income to
average net assets................. 2.14%(b) 2.17% 2.64% 2.39% 2.61% 2.23%(c)
<CAPTION>
SIX MONTHS
ENDING FISCAL YEARS ENDED MAY 31,
NOVEMBER 30, -----------------------------
FLORIDA TAX-EXEMPT FUND 1999 1999 1998 1997(A)
--------------------------- ------------ ------- ------- -------
<S> <C> <C> <C> <C>
Net asset value, beginning of period............................. $ 1.0000 $1.0000 $1.0000 $1.0000
-------- ------- ------- -------
Net investment income............................................ .0118 .0237 .0269 .0228
Dividends from net investment income............................. (.0118) (.0237) (.0269) (.0228)
-------- ------- ------- -------
Net asset value, end of period................................... $ 1.0000 $1.0000 $1.0000 $1.0000
-------- ------- ------- -------
-------- ------- ------- -------
Total Return..................................................... 2.35%(b) 2.37% 2.69% 2.42%(b)
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
----------------------------
<S> <C> <C> <C> <C>
Net assets end of period (millions).............................. $ 20.0 $ 22.6 $ 10.8 $ 4.1
Ratio of expenses to average net assets.......................... 1.00%(b) 1.00% .94% 1.04%(b)
Ratio of net investment income to average net assets............. 2.34%(b) 2.30% 2.62% 2.39%(b)
<CAPTION>
SIX MONTHS
ENDING FISCAL YEARS ENDED MAY 31,
NOVEMBER 30, ---------------------------------------------------
MASSACHUSETTS TAX-EXEMPT FUND 1999 1999 1998 1997 1996 1995
----------------------------- ------------ ------- ------- ------- ------- -------
<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.............. .0109 .0220 .0284 .0259 .0276 .0265
Dividends from net investment
income............................. (.0109) (.0220) (.0284) (.0259) (.0276) (.0265)
-------- ------- ------- ------- ------- -------
Net asset value, end of period..... $ 1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
-------- ------- ------- ------- ------- -------
-------- ------- ------- ------- ------- -------
Total Return....................... 2.17%(b) 2.20% 2.84% 2.59% 2.76% 2.65%
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
---------------------------
<S> <C> <C> <C> <C> <C> <C>
Net assets end of period
(millions)......................... $ 10.7 $ 19.9 $ 25.4 $ 13.0 $ 9.0 $ 10.2
Ratio of expenses to average net
assets............................. 1.00%(b) 1.00% .75% .83%(c) .90%(c) .80%(c)
Ratio of net investment income to
average net assets................. 2.17%(b) 2.17% 2.78% 2.54%(c) 2.66%(c) 2.71%(c)
</TABLE>
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED
NOVEMBER 30, MAY 31,
MICHIGAN TAX-EXEMPT FUND 1999 1999(D)
--------------------------- ------------ ------------
<S> <C> <C>
Net asset value, beginning of period................................................. $ 1.0000 $ 1.0000
-------- --------
Net investment income................................................................ .0113 .0118
Dividends from net investment income................................................. (.0113) (.0118)
-------- --------
Net asset value, end of period....................................................... $ 1.0000 $ 1.0000
-------- --------
-------- --------
Total Return......................................................................... 2.25%(b) 2.55%(b)
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
---------------------------
<S> <C> <C>
Net assets end of period (millions).................................................. $ 2.1 $ 1.2
Ratio of expenses to average net assets.............................................. 1.00%(b) 1.00%(b,c)
Ratio of net investment income to average net assets................................. 2.23%(b) 2.02%(b,c)
<CAPTION>
SIX MONTHS
ENDED FISCAL YEARS ENDED MAY 31,
NOVEMBER 30, ---------------------------------------------------
NEW JERSEY TAX-EXEMPT FUND 1999 1999 1998 1997 1996 1995(E)
--------------------------- ------------ ------- ------- ------- ------- -------
<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.............. .0110 .0223 .0254 .0236 .0263 .0243
Dividends from net investment
income............................. (.0110) (.0223) (.0254) (.0236) (.0263) (.0243)
-------- ------- ------- ------- ------- -------
Net asset value, end of period..... $ 1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
-------- ------- ------- ------- ------- -------
-------- ------- ------- ------- ------- -------
Total Return....................... 2.19%(b) 2.23% 2.54% 2.36% 2.63% 2.43%(b)
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
-----------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net assets end of period
(millions)......................... $ 2.3 $ 41.3 $ 37.6 $ 39.5 $ 41.0 $ 21.6
Ratio of expenses to average net
assets............................. 1.00%(b) 1.00% .99% 1.06% 1.05%(c) 1.01%(b,c)
Ratio of net investment income to
average net assets................. 2.12%(b) 2.17% 2.50% 2.33% 2.58%(c) 2.82%(b,c)
</TABLE>
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
SIX MONTHS FISCAL YEARS ENDED
ENDED MAY 31,
NOVEMBER 30, ------------------
OHIO TAX-EXEMPT FUND 1999 1999 1998(F)
--------------------------- ------------ ------- -------
<S> <C> <C> <C>
Net asset value, beginning of period......................................... $ 1.0000 $1.0000 $1.0000
-------- ------- -------
Net investment income........................................................ .0110 .0236 .0048
Dividends from net investment income......................................... (.0110) (.0236) (.0048)
-------- ------- -------
Net asset value, end of period............................................... $ 1.0000 $1.0000 $1.0000
======== ======= =======
Total Return................................................................. 2.19%(b) 2.36% 2.87%(b)
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
----------------------------
<S> <C> <C> <C>
Net assets end of period (millions).......................................... $ 2.3 $ 1.2 $ 2.5
Ratio of expenses to average net assets...................................... 1.00%(b) 1.00%(c) 1.00%(b)
Ratio of net investment income to average net assets......................... 2.18%(b) 2.16%(c) 2.86%(b)
<CAPTION>
SIX MONTHS FISCAL YEARS ENDED
ENDED MAY 31,
NOVEMBER 30, ------------------
PENNSYLVANIA TAX-EXEMPT FUND 1999 1999 1998(G)
---------------------------- ------------ ------- -------
<S> <C> <C> <C>
Net asset value, beginning of period......................................... $ 1.0000 $1.0000 $1.0000
-------- ------- -------
Net investment income........................................................ .0117 .0234 .0189
Dividends from net investment income......................................... (.0117) (.0234) (.0189)
-------- ------- -------
Net asset value, end of period............................................... $ 1.0000 $1.0000 $1.0000
======== ======= =======
Total Return................................................................. 2.33%(b) 2.34% 2.64%(b)
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
----------------------------
<S> <C> <C> <C>
Net asset, end of period (millions).......................................... $ 15.7 $ 16.9 $ 13.2
Ratio of expenses to average net assets...................................... 1.00%(b) 1.00% 1.00%(b)
Ratio of net investment income to average net assets......................... 2.34%(b) 2.28% 2.62%(b)
</TABLE>
- ---------------------------------
(a) From June 24, 1996 (Commencement of Operations) to May 31, 1997.
(b) Annualized.
(c) Due to the voluntary waiver of certain expenses by RMCI for certain
funds, the actual expense ratios and net investment income amounted to:
NET
FISCAL EXPENSE INVESTMENT
FUND YEAR RATIO INCOME
--------------------------- ------ ------- ----------
Connecticut.......................... 1995 .89% 2.33%
Massachusetts........................ 1997 .79% 2.58%
1996 .84% 2.71%
1995 .69% 2.80%
Michigan............................. 1999 .49% 2.53%
New Jersey........................... 1996 1.04% 2.59%
Ohio................................. 1999 .83% 2.32%
(d) From December 14, 1998 (Commencement of Operations) to May 31, 1999.
(e) From October 17, 1994 (Commencement of Operations) to May 31, 1995.
(f) From April 1, 1998 (Commencement of Operations) to May 31, 1998.
(g) From September 12, 1997 (Commencement of Operations) to May 31, 1998.
23
<PAGE>
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