<PAGE> 1
[THE RESERVE FUNDS LOGO]
"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
This literature is not authorized for distribution to prospective investors
unless preceded or accompanied by an appropriate current prospectus.
Distributor -- Resrv Partners, Inc.
[THE RESERVE FUNDS LOGO]
"America's First
Money Fund"
ANNUAL REPORT
NEW YORK TAX-EXEMPT FUND
CONNECTICUT TAX-EXEMPT FUND
MASSACHUSETTS TAX-EXEMPT FUND
CALIFORNIA TAX-EXEMPT FUND
NEW JERSEY TAX-EXEMPT FUND
FOR THE YEAR ENDED
MAY 31, 1995
<PAGE> 2
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and the Board of Trustees of Reserve New York Tax-Exempt
Trust--New York Fund and Reserve Tax-Exempt Trust--Connecticut, Massachusetts,
California and New Jersey Funds:
We have audited the accompanying statements of net assets of Reserve New
York Tax-Exempt Trust--New York Fund and the Connecticut, Massachusetts,
California and New Jersey Funds (four of the series constituting Reserve
Tax-Exempt Trust) and the statements of assets and liabilities of the
Connecticut and California Funds, as of May 31, 1995, and the related statements
of operations, the statements of changes in net assets and the financial
highlights for each of the periods presented. These financial statements and
financial highlights are the responsibility of the respective Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of May
31, 1995 by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Reserve New York Tax-Exempt Trust--New York Fund and the Connecticut,
Massachusetts, California and New Jersey Funds of Reserve Tax-Exempt Trust as of
May 31, 1995, the results of their operations, the changes in their net assets
and their financial highlights for the periods referred to above, in conformity
with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
June 23, 1995
------------------------
RESERVE NEW YORK TAX-EXEMPT TRUST--NEW YORK FUND
STATEMENT OF NET ASSETS--MAY 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
MATURITY (IN VALUE
DESCRIPTION OF SECURITY DATE THOUSANDS) (NOTE 1)
----------------------------------------------------------------------------------- ---------- ------ ------------
<S> <C> <C> <C>
Akron Central School District BAN, 5%.............................................. 9/13/1995 $2,000 $ 2,072,815
Babylon IDA for General Microwave Corporation, 3.40%(a)............................ 10/1/1999 1,800 1,806,305
Bleecker HDC Terrace Apt Project S85, 4.40%(a)..................................... 7/1/2015 2,590 2,610,907
Buffalo RAN, 5%.................................................................... 7/12/1995 3,000 3,075,714
Cattaragus County IDR for Park Centre Development Project, 4.90%(a)................ 1/1/2000 665 670,931
Chautauqua County IDR for Greater Buffalo Press Project, 4.15%(a).................. 1/1/2000 1,700 1,713,003
Commack Union Free School District TAN, 4.25%...................................... 6/30/1995 1,800 1,866,405
Deer Park Union Free School District TAN, 4.25%.................................... 6/28/1995 2,000 2,078,933
Dutchess County IDR for M&R Associates Series 1984, 3.80%(a)....................... 12/1/2002 420 424,115
Eagle Tax-Exempt Trust Certificates of Participation Series 1994 C2, 4.20%(a)...... 6/15/2018 3,000 3,058,380
Guilderland IDA for North Eastern Industrial Park Series 1993 A, 3.40%(a).......... 12/1/2008 3,700 3,713,472
Hempstead BAN Series D, 4.50%...................................................... 8/17/1995 3,000 3,109,685
Islip BAN, 4.50%................................................................... 8/22/1995 2,000 2,071,506
Jefferson County IDA for Watertown Carthage, 4.22%(a).............................. 12/1/2012 3,500 3,512,544
Liverpool Central School District BAN, 3.65%....................................... 6/23/1995 900 930,147
Metropolitan Transportation Authority Commuter Facilities Revenue Bonds Series
1991, 3.35%(a)................................................................... 7/1/2021 5,500 5,519,386
Monroe County BAN Series B, 4.35%.................................................. 6/9/1995 860 884,354
Montgomery County IDR for Service Merchandise Co., 4.15%(a)........................ 12/31/2024 1,600 1,603,093
Nassau County BAN Series D, 4.75%.................................................. 8/15/1995 1,000 1,036,085
Nassau County GOB, 5.625%.......................................................... 10/15/1995 1,380 1,396,550
New York City Custodial Receipts Series A31, 4.85%(a).............................. 8/1/2001 4,000 4,062,208
New York City GOB Series A4, 4.20%(a).............................................. 8/1/2021 1,100 1,104,016
New York City GOB Series A7, 4.50%(a).............................................. 8/1/2020 1,900 1,907,158
New York City GOB Series A9, 4.10%(a).............................................. 8/1/2018 1,800 1,806,751
New York City GOB Series A10, 4.10%(a)............................................. 8/1/2016 2,000 2,007,501
New York City GOB Series B6, 4.45%(a).............................................. 8/15/2005 1,000 1,003,818
New York City GOB Series C, 4.20%(a)............................................... 8/1/1995 600 602,218
</TABLE>
2
<PAGE> 3
RESERVE NEW YORK TAX-EXEMPT TRUST--NEW YORK FUND
STATEMENT OF NET ASSETS--MAY 31, 1995--(CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
MATURITY (IN VALUE
DESCRIPTION OF SECURITY DATE THOUSANDS) (NOTE 1)
----------------------------------------------------------------------------------- ---------- ------ ------------
<S> <C> <C> <C>
New York City GOB Series C, 4.20%(a)............................................... 8/1/1996 $ 200 $ 200,739
New York City GOB Series C4, 4.20%(a).............................................. 8/1/1996 2,300 2,308,504
New York City GOB Series C4, 4.20%(a).............................................. 8/1/1997 2,400 2,408,873
New York City GOB Series C5, 4.20%(a).............................................. 8/1/1998 200 200,739
New York City GOB Series C5, 4.20%(a).............................................. 8/1/2000 300 301,109
New York City GOB Series C-99, 4.20%(a)............................................ 8/1/1999 300 301,109
New York City GOB Series D, 4.10%(a)............................................... 8/1/1995 1,100 1,104,010
New York City GOB Series E2, 4.10%(a).............................................. 8/1/2020 2,300 2,308,494
New York City GOB Series E2, 4.10%(a).............................................. 8/1/2021 300 301,108
New York City GOB Series E3, 4.20%(a).............................................. 5/15/1997 300 301,109
New York City GOB Series E4, 4%(a)................................................. 8/1/2022 600 602,165
New York City GOB Series E5, 4.10%(a).............................................. 8/1/2009 300 301,108
New York City GOB Series E5, 4.10%(a).............................................. 8/1/2010 700 702,585
New York City GOB Series E5, 4.10%(a).............................................. 8/1/2016 200 200,739
New York City GOB Series E5, 4.10%(a).............................................. 8/1/2017 600 602,216
New York City GOB Series E5, 4.10%(a).............................................. 8/1/2018 1,300 1,304,801
New York City GOB Series E5, 4.10%(a).............................................. 8/1/2019 300 301,108
New York City GOB Series 95B, 4.45%(a)............................................. 8/15/2022 1,100 1,104,200
New York City HDC for Carnegie Park Project, 4.50%(a).............................. 12/1/2016 1,410 1,426,507
New York City HDC for Columbus Green Project, 4.50%(a)............................. 12/1/2009 900 910,536
New York City HDC for Parkgate Tower, 3.50%(a)..................................... 12/1/2007 3,365 3,376,985
New York City HDC for 96th Street Project 1990 Series A, 3.70%(a).................. 8/1/2015 4,800 4,817,560
New York City IDR for Calhoun School, Inc. Project, 3.70%(a)....................... 5/1/2020 1,300 1,304,238
New York City RAN, 4.75%........................................................... 6/30/1995 2,000 2,075,771
New York State BAN Series Q, 4.10%................................................. 7/11/1995 2,000 2,005,167
New York State ERD/PCR for New York State Electric and Gas Series 85B, 4.10%(a).... 10/15/2015 2,000 2,010,082
New York State ERD/PCR for Orange Rockland Utilities, 3.35%(a)..................... 10/1/2014 1,000 1,003,578
New York State ERD/PCR for Rochester Gas and Electric Corporation, 3.90%(a)........ 10/1/2014 3,000 3,009,937
New York State ERD/PCR for LILCO Series 85B, 4.70%(a).............................. 3/1/2016 3,000 3,035,250
New York State HFR for Liberty View Apartments Project, 3.85%(a)................... 11/1/2005 3,350 3,362,698
New York State Job Development Authority Series F, 4.10%(a)........................ 3/1/1999 670 672,333
New York State Local Government Assistance Revenue Bonds Series 1993 A, 3.30%(a)... 4/1/2022 5,600 5,619,500
New York State Mortgage Agency Revenue Anticipation Warrants 12th Series,
4.50%(a)......................................................................... 10/1/2012 5,470 5,511,032
North Hempstead Solid Waste Management Authority Series 93 A, 3.35%(a)............. 2/1/2012 2,000 2,007,159
Oneida School District BAN Series 1994, 4%......................................... 6/16/1995 2,070 2,149,668
Onondaga County IDR for Edge Comb Metals Project, 3.90%(a)......................... 11/1/2009 1,100 1,104,139
Onondaga County IDR for McLane Co. Project, 4.40%(a)............................... 11/1/2004 3,260 3,273,669
Onondaga County IDR for Pass and Seymour, Inc. Project, 4.20%(a)................... 6/15/1997 1,900 1,903,717
Puerto Rico Government Development Bank, 4%........................................ 6/13/1995 3,000 3,004,932
Puerto Rico Municipal Finance Loan Repayment Revenue Bonds for Series A, 4.75%..... 7/1/1995 1,000 1,020,409
Rochester BAN Series 1, 5.25%...................................................... 3/12/1996 2,000 2,033,366
Sachem Central School District TAN, 4.375%......................................... 6/29/1995 2,000 2,080,181
Sachem Central School District TAN, 4.50%.......................................... 6/29/1995 2,000 2,082,586
Suffolk County TAN, 5.25%.......................................................... 8/15/1995 2,000 2,044,872
Suffolk County TAN, 4.50%.......................................................... 9/14/1995 2,000 2,064,435
Syracuse IDR for General Accident Insurance Co. Project, 4.25%(a).................. 12/1/2003 4,550 4,646,688
Triboro Bridge and Tunnel Authority Special Obligation Revenue Bonds Series 1994,
3.30%(a)......................................................................... 1/1/2024 2,200 2,207,781
Westchester County IDR for M and F Associates Project, 4.90%(a).................... 7/1/2000 2,000 2,017,839
Westchester County TAN, 5%......................................................... 12/14/1995 2,000 2,034,072
William Floyd Union Free School District TAN, 4.75%................................ 6/30/1995 4,000 4,108,450
Wyoming County IDR for KN Aronson Inc. Project, 4.58%.............................. 8/1/1995 1,000 1,004,111
Yonkers IDR for Consumers Union facility, 3.25%(a)................................. 7/1/2024 1,000 1,003,263
------------
Total New York Fund Investments (99.69%) (Cost $150,713,697)....................... 152,435,227
Other assets, less liabilities (.31%).............................................. 470,741
------------
NET ASSETS (100%) equivalent to $1.00 net asset value, offering and redemption
prices per share on 152,905,968 shares of beneficial interest of $.001 par value
outstanding...................................................................... $152,905,968
===========
</TABLE>
---------------
(a) The interest rate is subject to change periodically. The rates shown were in
effect at May 31, 1995. Securities payable on demand are collateralized by
bank letters of credit or other bank credit agreements.
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 4
RESERVE TAX-EXEMPT TRUST--CONNECTICUT FUND
STATEMENT OF NET ASSETS--MAY 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
MATURITY (IN VALUE
DESCRIPTION OF SECURITY DATE THOUSANDS) (NOTE 1)
------------------------------------------------------------------------------------ ---------- ------ -----------
<S> <C> <C> <C>
Connecticut DAI for Allen Group Inc., 4.15%(a)...................................... 2/1/2013 $ 800 $ 802,820
Connecticut DAI for Conco Medical Co. Project Series 85, 3.90%(a)................... 11/1/2005 400 401,319
Connecticut DAI for General Accident Insurance Co., 4.25%(a)........................ 12/1/2013 1,700 1,736,125
Connecticut DAI for Jewish Community Center of Greater New Haven, 3.70%(a).......... 9/1/2017 300 300,882
Connecticut DAI for Martin Brower Corp. Series 1985, 3.20%(a)....................... 5/1/2005 370 371,284
Connecticut DAI for Rafferty Brown Steel Co. Project Series 85, 4.41%(a)............ 7/1/1995 700 702,622
Connecticut DAI for Regional YMCA Project, 4.40%(a)................................. 6/1/2008 462 463,726
Connecticut DAI for Trudy Corporation Project, 4.10%(a)............................. 9/1/2009 600 602,089
Connecticut DAI for Zotos International Project, 4.35%(a)........................... 12/1/2004 1,190 1,194,396
Connecticut Development Authority Airport Facilities Industrial Revenue Bonds for RK
Bradley Hotel Association, 4.05%(a)............................................... 12/1/2020 1,200 1,204,772
Connecticut Development Authority Health Care Revenue Bonds for Independent Living
Project 1990 Series, 3.45%(a)..................................................... 7/1/2015 1,145 1,149,210
Connecticut Development Authority PCR for Central Vermont Public Service,
3.85%(a).......................................................................... 12/1/2015 1,200 1,203,924
Connecticut Development Authority PCR for Connecticut Light and Power Project Series
1993a, 3.40%(a)................................................................... 9/1/2028 1,300 1,304,840
Connecticut Development Authority PCR for Western Massachusetts Electric Co.,
3.75%(a).......................................................................... 9/1/2028 1,200 1,204,396
Connecticut GOE Series B, 3.55%(a).................................................. 6/1/1996 1,300 1,304,828
Connecticut HEF for Bridgeport Hospital Series B, 3.45%(a).......................... 7/1/2025 1,000 1,003,249
Connecticut HEF for Charlotte Hospital Series B, 4.10%(a)........................... 7/1/2010 300 301,145
Connecticut HEF for Kingswood Oxford School Issue Series A, 4.40%(a)................ 2/1/2009 700 702,616
Connecticut HEF for Pomfret School Issue Series A, 3.55%(a)......................... 7/1/2024 1,385 1,389,756
Connecticut HEF for Yale New Haven Hospital Series E, 8.60%(a)...................... 7/1/1999 200 211,914
Connecticut State Special Assessment Unemployment Compensation RAW, Series C,
3.85%(a).......................................................................... 11/15/2001 2,000 2,032,119
Connecticut State Special Assessment Unemployment Compensation Revenue Bonds Series
1993B, 3.65%(a)................................................................... 11/1/2001 1,000 1,003,771
Connecticut State Special Tax Transportation Infrastructure Revenue Bonds,
3.40%(a).......................................................................... 12/1/2010 900 903,565
Glastonbury BAN, 4.25%.............................................................. 6/15/1995 1,000 1,020,535
Hartford Redevelopment Agency MHR for Underwood Towers Project, 4.10%(a)............ 6/1/2020 1,300 1,304,960
Norwich BAN, 4.65%.................................................................. 10/5/1995 210 216,680
Puerto Rico Industrial, Medical, Higher Education and Environmental RAW for Reynolds
Metals, 4%(a)..................................................................... 9/1/2013 700 707,171
Redding BAN, 4.32%.................................................................. 10/25/1995 500 513,225
Shelton BAN, 4.50%.................................................................. 8/15/1995 1,000 1,013,887
-----------
Total Connecticut Fund Investments (98.67%) (Cost $26,073,542)...................... 26,271,826
Other assets, less liabilities, (1.33%)............................................. 354,132
-----------
NET ASSETS (100%) equivalent to $1.00 net asset value, offering and redemption
prices per share on 26,625,958 shares of beneficial interest of $.001 par value
outstanding....................................................................... $26,625,958
==========
</TABLE>
---------------
(a) The interest rate is subject to change periodically. The rates shown were in
effect at May 31, 1995. Securities payable on demand are collateralized by
bank letters of credit or other bank credit agreements.
RESERVE TAX-EXEMPT TRUST--MASSACHUSETTS FUND
STATEMENT OF NET ASSETS--MAY 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
MATURITY (IN VALUE
DESCRIPTION OF SECURITY DATE THOUSANDS) (NOTE 1)
------------------------------------------------------------------------------------ --------- ---- -----------
<S> <C> <C> <C>
Billerica Federal Aid RAN, 4.48%.................................................... 7/24/1995 $324 $ 329,317
Framingham IDA for Perini Corp., 3.60%(a)........................................... 9/30/2005 300 301,141
Lincoln BAN, 4%..................................................................... 7/6/1995 400 414,577
Massachusetts Bay Transit Authority 1995 Series A GOB, 5.50%........................ 3/1/1996 700 714,429
Massachusetts Bay Transportation Authority General Transit System 84-A RAW,
4.40%(a).......................................................................... 3/1/2014 500 505,500
Massachusetts Dedicated Income Tax Bonds Series B, 4.15%(a)......................... 12/1/1997 200 200,726
Massachusetts Dedicated Income Tax Bonds Series D, 4.15%............................ 6/1/1995 100 100,363
Massachusetts Dedicated Income Tax Bonds Series E, 4.15%(a)......................... 12/1/1997 300 301,090
Massachusetts GOB, 5%............................................................... 6/15/1995 700 718,645
Massachusetts HEF for Capital Asset Program Series G-1, 3.20%(a).................... 1/1/2019 300 300,961
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 5
RESERVE TAX-EXEMPT TRUST--MASSACHUSETTS FUND
STATEMENT OF NET ASSETS--MAY 31, 1995--(CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
MATURITY (IN VALUE
DESCRIPTION OF SECURITY DATE THOUSANDS) (NOTE 1)
------------------------------------------------------------------------------------ --------- ---- -----------
<S> <C> <C> <C>
Massachusetts HEF for Boston University Series H, 4.10%(a).......................... 12/1/2015 $400 $ 402,471
Massachusetts HEF for Capital Asset Program Series E, 3.60%(a)...................... 1/1/2035 400 401,437
Massachusetts HEF for Harvard University, 3.50%(a).................................. 8/1/2017 200 200,696
Massachusetts HEF for Harvard University, 3.50%(a).................................. 2/1/2016 187 187,651
Massachusetts HEF for Mount IDA College Series A, 3.75%(a).......................... 7/1/2018 500 501,611
Massachusetts HEF for Wellesley College Series E, 3.10%(a).......................... 7/1/2022 400 401,388
Massachusetts HEF for Williams College Series E, 3.40%(a)........................... 8/1/2014 800 802,907
Massachusetts IDA for KRH Rolls Inc. Project Series 1988, 4.15%(a).................. 5/1/2006 400 402,937
Massachusetts Municipal Wholesale Electric Series 1994 C, 3.45%(a).................. 7/1/2019 400 401,439
Puerto Rico Municipal Finance Agency Series A RAW, 4.75%............................ 7/1/1995 750 765,307
Saugus BAN, 4.50%................................................................... 8/24/1995 535 548,030
Winchester GOB, 5.75%............................................................... 7/1/1995 400 410,380
Yarmouth RAN, 4.24%................................................................. 9/5/1995 700 707,343
-----------
Total Massachusetts Fund Investments (98.54%) (Cost $9,919,550)..................... 10,020,346
Other assets, less liabilities (1.46%).............................................. 148,639
-----------
NET ASSETS (100%) equivalent to $1.00 net asset value, offering and redemption price
per share on 10,168,985 shares of beneficial interest of $.001 par value
outstanding....................................................................... $10,168,985
==========
</TABLE>
---------------
(a) The interest rate is subject to change periodically. The rates shown were in
effect at May 31, 1995. Securities payable on demand are collateralized by
bank letters of credit or other bank credit agreements.
RESERVE TAX-EXEMPT TRUST--CALIFORNIA FUND
STATEMENT OF NET ASSETS--MAY 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
MATURITY (IN VALUE
DESCRIPTION OF SECURITY DATE THOUSANDS) (NOTE 1)
------------------------------------------------------------------------------------ ---------- ------ -----------
<S> <C> <C> <C>
Anaheim Certificate of Participation, 3.50%(a)...................................... 8/1/2019 $ 350 $ 354,507
California HFA for Sutter Health Series 1990 B, 4.20%(a)............................ 3/1/2020 600 602,181
California PCR for Pacific G&E, 4.05%(a)............................................ 11/1/2008 400 401,331
California RAN Series A, 5%......................................................... 6/28/1995 1,000 1,041,513
California State RAW Series C, 5.75%................................................ 4/25/1996 600 635,750
Irvine Ranch Water District Waterworks Bonds Elections 1988, 4.25%(a)............... 11/15/2013 200 200,754
Lancaster MHR for Westwood Park Apartments 1985, 4%(a).............................. 12/1/2007 500 501,915
Los Angeles Community Redevelopment Agency for Baldwin Hills, 3.60%(a).............. 12/1/2014 400 401,382
Los Angeles for Promenade Towers Series 1989, 4.30%(a).............................. 4/1/2009 400 403,106
Los Angeles Metropolitan Transportation Authority IDA for General Revenue Union
Station Gateway Series 1995A, 4.30%(a)............................................ 7/1/2025 700 702,647
Los Angeles TRAN, 4.50%............................................................. 6/30/1995 400 416,635
Orange County Apartment Development Revenue Bonds Issue A of 1991, the Lakes Project
3.85%, Letter of Credit with Citibank(a).......................................... 12/1/2006 500 501,877
Orange County Sanitation District Capital Improvement Program 1990-92, 4.50% Letter
of Credit with National Westminster(a)............................................ 8/1/2015 200 200,805
Pico Rivera Community Redevelopment Agency for Rainer Fund Crossroads Plaza Project,
3.55%(a).......................................................................... 12/1/2010 500 501,737
Puerto Rico Development Bank, 4%.................................................... 6/13/1995 1,000 1,001,644
San Diego MHR for Series 88A, 5.85%(a).............................................. 12/1/2007 790 801,649
Santa Ana HDC for Mercury S&L, 4.275%(a)............................................ 11/1/2005 500 503,930
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE> 6
RESERVE TAX-EXEMPT TRUST--CALIFORNIA FUND
STATEMENT OF NET ASSETS--MAY 31, 1995--(CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
MATURITY (IN VALUE
DESCRIPTION OF SECURITY DATE THOUSANDS) (NOTE 1)
------------------------------------------------------------------------------------ ---------- ------ -----------
<S> <C> <C> <C>
Santa Clara Power Electric Revenue Bonds Series 85C, 3.40%(a)....................... 7/1/2010 $ 300 $ 301,081
Upland MHR Community Redevelopment Bonds, 4.40%(a).................................. 3/1/2014 200 202,277
Upland MHR Community Redevelopment Bonds Series B, 4.40%(a)......................... 3/1/2014 100 101,139
West Covina TRAN, 4.50%............................................................. 8/31/1995 500 518,685
-----------
Total California Fund Investments (92.87%) (Cost $10,149,136)....................... 10,296,545
Other assets, less liabilities (7.13%).............................................. 791,067
-----------
NET ASSETS (100%) equivalent to $1.00 net asset value, offering and redemption
prices per share on 11,087,612 shares of beneficial interest of $.001 par value
outstanding....................................................................... $11,087,612
==========
</TABLE>
---------------
(a) The interest rate is subject to change periodically. The rates shown were in
effect at May 31, 1995. Securities payable on demand are collateralized by
bank letters of credit or other bank credit agreements.
RESERVE TAX-EXEMPT TRUST--NEW JERSEY FUND
STATEMENT OF NET ASSETS--MAY 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
MATURITY (IN VALUE
DESCRIPTION OF SECURITY DATE THOUSANDS) (NOTE 1)
----------------------------------------------------------------------------------- ---------- ------ -----------
<S> <C> <C> <C>
Bayonne Temporary Notes, 4.35%..................................................... 9/15/1995 $ 900 $ 926,196
Bloomingdale GOB, 5.50%............................................................ 3/22/1995 110 112,115
Brick Township General Improvement Bonds, 5.35%.................................... 3/1/1996 330 336,410
Clifton BAN, 3.68%................................................................. 6/30/1995 500 516,752
Dover General Improvement Bonds Series A, 5.40%.................................... 3/15/1996 400 407,288
Engelwood RAN, 3.87%............................................................... 7/19/1995 300 309,723
Ewing Township BAN, 5.04%.......................................................... 10/27/1995 695 707,404
Jersey City School Promissory Notes, 5.125%........................................ 3/8/1996 500 507,551
Montvale TAN, 4.40%................................................................ 1/9/1996 500 503,350
New Jersey EDA for Economic Growth Bond Series F, 4%(a)............................ 8/1/2014 840 843,090
New Jersey EDA for IMTT Dock, 4.10%(a)............................................. 12/1/2027 1,700 1,706,160
New Jersey EDA for IMTT Dock, 4.15%(a)............................................. 12/1/2027 700 702,566
New Jersey EDA for St. Peters School Series 1995, 4.10%(a)......................... 1/1/2010 1,375 1,380,159
New Jersey EDA for Volvo of American Corp, 4.708%(a)............................... 12/1/2004 1,700 1,719,981
New Jersey Economic Recovery Notes, 4.45%(a)....................................... 8/1/2008 1,000 1,004,044
New Jersey GOB Series D, 4.20%..................................................... 2/15/1996 170 172,102
New Jersey TRAN Series A, 5%....................................................... 6/15/1995 1,600 1,639,088
New Jersey TRAN, 4.35%............................................................. 6/14/1995 1,000 1,001,788
New Jersey Turnpike Authority Series 91D, 3.25%(a)................................. 1/1/2018 700 710,459
Newark State Aid School Bonds, 8.50%............................................... 10/1/1995 435 447,558
North Brunswick BAN, 4.50%......................................................... 8/16/1995 500 503,742
Puerto Rico Building Authority Public Education and Health Facilities Series E & F,
8.60%(a)......................................................................... 7/1/1997 250 264,856
Puerto Rico Industrial, Medical, Higher Education and Environmental PCR Facilities
Finance Authority, 3.50%(a)...................................................... 12/1/2015 800 802,915
Puerto Rico Pre-Refunded Electrical Power Authority Series J, 9%(a)................ 7/1/2005 205 219,580
Saddle Brook BAN, 4.30%............................................................ 6/16/1995 500 504,538
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 7
RESERVE TAX-EXEMPT TRUST--NEW JERSEY FUND
STATEMENT OF NET ASSETS--MAY 31, 1995--(CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
MATURITY (IN VALUE
DESCRIPTION OF SECURITY DATE THOUSANDS) (NOTE 1)
----------------------------------------------------------------------------------- ---------- ------ -----------
<S> <C> <C> <C>
Union County BAN, 4.71%............................................................ 6/30/1995 $ 500 $ 511,801
Voorhees BAN Series D, 4.30%....................................................... 6/1/1995 300 307,920
-----------
Total New Jersey Fund Investments (86.86%) (Cost $18,541,798)...................... 18,769,136
Other assets, less liabilities, (13.14%)........................................... 2,838,114
-----------
NET ASSETS (100%) equivalent to $1.00 net asset value, offering and redemption
prices per share on 21,607,250 shares of beneficial interest of $.001 par value
outstanding...................................................................... $21,607,250
==========
</TABLE>
---------------
(a) The interest rate is subject to change periodically. The rates shown were in
effect at May 31, 1995. Securities payable on demand are collateralized by
bank letters of credit or other bank credit agreements.
SECURITY TYPE ABBREVIATIONS:
BAN -- Bond Anticipation Notes
DAI -- Development Authority Industrial Development Refunding Bonds
EDA -- Economic Development Authority Revenue Bonds
ERD -- Energy Research and Development Authority
GOB -- General Obligation Bonds
GOE -- General Obligation Economic Recovery Notes
HDC -- Housing Development Corporation Bonds
HEF -- Health and Educational Facilities Revenue Bonds
HFA -- Health Facilities Authority Revenue Bonds
HFH -- Housing Finance Authority Housing Mortgage Finance Program Bonds
HFR -- Housing Finance Agency Revenue Bonds
IDA -- Industrial Development Authority Revenue Bonds
IDR -- Industrial Development Agency Revenue Bonds
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
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 8
RESERVE TAX-EXEMPT TRUST ("TRUST")
STATEMENT OF ASSETS AND LIABILITIES--MAY 31, 1995
<TABLE>
<CAPTION>
CALIFORNIA
FUND
-----------
<S> <C>
ASSETS:
Investments, at value (identified cost--$10,149,136).......................................... $10,296,545
Cash.......................................................................................... 791,380
-----------
Total Assets................................................................................ 11,087,925
-----------
LIABILITIES:
Accrued expenses.............................................................................. 313
-----------
Total Liabilities........................................................................... 313
-----------
NET ASSETS...................................................................................... $11,087,612
============
NET ASSETS CONSIST OF:
Shares of beneficial interest, $.001 par value, unlimited number of shares authorized......... $ 11,088
Paid-in capital in excess of par.............................................................. 11,076,524
-----------
NET ASSETS--Equivalent to $1.00 per share based on 11,087,612 shares of beneficial interest
outstanding................................................................................... $11,087,612
============
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES--MAY 31, 1995
<TABLE>
<CAPTION>
NEW JERSEY
FUND
-----------
<S> <C>
ASSETS:
Investments, at value (identified cost--$18,541,798).......................................... $18,769,136
Cash.......................................................................................... 2,838,724
-----------
Total Assets................................................................................ 21,607,860
-----------
LIABILITIES:
Accrued expenses.............................................................................. 610
-----------
Total Liabilities........................................................................... 610
-----------
NET ASSETS...................................................................................... $21,607,250
============
NET ASSETS CONSIST OF:
Shares of beneficial interest, $.001 par value, unlimited number of shares authorized......... $ 21,607
Paid-in capital in excess of par.............................................................. 21,585,643
-----------
NET ASSETS--Equivalent to $1.00 per share based on 21,607,250 shares of beneficial interest
outstanding................................................................................... $21,607,250
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 9
STATEMENTS OF OPERATIONS--YEAR ENDED MAY 31, 1995
<TABLE>
<CAPTION>
RESERVE
NEW YORK
TAX-EXEMPT
TRUST RESERVE TAX-EXEMPT TRUST
--------- ---------------------------------------------
NEW
NEW YORK CONNECTICUT MASSACHUSETTS CALIFORNIA JERSEY
FUND FUND FUND FUND* FUND*
--------- --------- ----------- ---------- --------
<S> <C> <C> <C> <C> <C>
INTEREST INCOME (Note 1)....................... $5,286,200 $1,344,159 $445,351 $191,243 $402,202
--------- --------- -------- -------- --------
EXPENSES (Note 2)
Management fee............................... 763,741 208,094 67,161 24,072 52,442
Shareholder servicing, administration and
general office expenses.................... 320,023 72,705 22,763 9,618 22,497
Distribution assistance (Note 3)............. 269,772 63,147 3,476 9,469 19,207
Equipment expense............................ 36,832 8,953 3,052 1,270 2,988
Professional fees............................ 32,168 10,845 5,275 2,277 4,308
Occupancy costs.............................. 35,143 9,005 2,945 1,016 2,408
Stationery, printing and supplies............ 26,131 3,900 998 438 2,097
Trustee fees................................. 3,306 1,021 282 83 204
Other expenses............................... 6,286 2,643 1,994 714 338
--------- --------- -------- -------- --------
Total Expenses............................. 1,493,402 380,313 107,946 48,957 106,489
--------- --------- -------- -------- --------
Less: Management fees and other expenses
voluntarily waived by Investment Manager... (7,311) (14,913) (494)
--------- --------- -------- -------- --------
Net Expenses................................. 1,493,402 373,002 93,033 48,957 105,995
--------- --------- -------- -------- --------
NET INVESTMENT INCOME.......................... $3,792,798 $ 971,157 $352,318 $142,286 $296,207
========= ========= ======== ======== ========
</TABLE>
---------------
* The California Fund commenced operations on October 17, 1994 and the New
Jersey Fund commenced operations on June 21, 1994.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
RESERVE NEW YORK
TAX-EXEMPT TRUST RESERVE TAX-EXEMPT TRUST
------------------------------ --------------------------------------------------------------
NEW YORK FUND CONNECTICUT FUND MASSACHUSETTS FUND
------------------------------ ------------------------------ ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
1995 1994 1995 1994 1995 1994
------------- ------------- ------------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM INVESTMENT
OPERATIONS:
Net investment income (Note
1)........................ $ 3,792,798 $ 2,383,343 $ 971,157 $ 2,341,947 $ 352,318 $ 207,245
Dividends to shareholders... (3,792,798) (2,383,343) (971,157) (2,341,947) (352,318) (207,245)
------------- ------------- ------------- ------------- ------------ ------------
FROM CAPITAL SHARE
TRANSACTIONS
(at net asset value of
$1 per share):
Net proceeds from sale of
shares................... 592,052,007 620,779,329 114,340,212 263,061,550 58,983,470 54,742,682
Net asset value of shares
issued on reinvestment
of dividends............. 3,792,798 2,383,343 971,157 2,341,947 352,318 207,245
------------- ------------- ------------- ------------- ------------ ------------
Subtotal................. 595,844,805 623,162,672 115,311,369 265,403,497 59,335,788 54,949,927
Cost of shares
redeemed............... (591,325,629) (624,560,694) (217,378,001) (293,826,203) (63,991,145) (53,430,161)
------------- ------------- ------------- ------------- ------------ ------------
Increase (decrease) in net
assets derived from
capital share transactions
and from investment
operations................ 4,519,176 (1,398,022) (102,066,632) (28,422,706) (4,655,357) 1,519,766
NET ASSETS:
Beginning of year........... 148,386,792 149,784,814 128,692,590 157,115,296 14,824,342 13,304,576
------------- ------------- ------------- ------------- ------------ ------------
End of year................. $ 152,905,968 $ 148,386,792 $ 26,625,958 $ 128,692,590 $ 10,168,985 $ 14,824,342
============= ============= ============= ============= ============ ============
<CAPTION>
RESERVE TAX-EXEMPT TRUST
---------------------------------
CALIFORNIA NEW JERSEY
FUND FUND
------------ ------------
OCTOBER 17, JUNE 21,
1994 1994
(COMMENCEMENT (COMMENCEMENT
OF OF
OPERATIONS) OPERATIONS)
THROUGH THROUGH
MAY 31, 1995 MAY 31, 1995
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM INVESTMENT
OPERATIONS:
Net investment income (Note
1)........................ $ 142,286 $ 296,207
Dividends to shareholders... (142,286) (296,207)
------------ ------------
FROM CAPITAL SHARE
TRANSACTIONS
(at net asset value of
$1 per share):
Net proceeds from sale of
shares................... 29,447,705 74,669,862
Net asset value of shares
issued on reinvestment
of dividends............. 142,286 296,207
------------ ------------
Subtotal................. 29,589,991 74,966,069
Cost of shares
redeemed............... (18,502,379) (53,358,819)
------------ ------------
Increase (decrease) in net
assets derived from
capital share transactions
and from investment
operations................ 11,087,612 21,607,250
NET ASSETS:
Beginning of year........... 0 0
------------ ------------
End of year................. $ 11,087,612 $ 21,607,250
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 10
RESERVE NEW YORK TAX-EXEMPT TRUST ("NY TRUST")
RESERVE TAX-EXEMPT TRUST (CONNECTICUT, MASSACHUSETTS,
CALIFORNIA AND NEW JERSEY FUNDS) ("TRUST")
(THE NY TRUST AND TRUST ARE COLLECTIVELY REFERRED TO AS "TRUSTS")
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES:
------------------------------
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 Trust and NY Trust shares of beneficial interest authorized are
unlimited. The Trust's shares are divided into five series, Connecticut Fund,
Interstate Fund, Massachusetts Fund, California Fund and New Jersey Fund.
These financial statements and notes apply only to the Connecticut,
Massachusetts, California and New Jersey Funds of Reserve Tax-Exempt Trust
and to the New York Fund of Reserve New York Tax-Exempt Trust.
B. Securities are stated at value which represents amortized cost plus
interest accrued to date. Under Securities and Exchange Commission Rule 2a-7,
the Trusts use amortized cost to value each fund, by which investments are
valued at cost and the difference between the cost of each instrument and its
value at maturity is accrued into income on a straight line basis over the
number of days to maturity, irrespective of intervening changes in interest
rates or market values of investments. The maturity of floating or variable
rate instruments in which the Trusts may invest will be deemed to be, for
floating rate instruments (1) following, and for variable rate instruments
the longer of (1) or (2) following: (1) the notice period required before the
fund is entitled to receive payment of the principal amount of the
instrument; (2) the period remaining until the instrument's next rate
adjustment, for purposes of Rule 2a-7 and for computing each fund's weighted
average life.
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. Investments are recorded as of the date of their purchase and sale.
Interest income is determined on the basis of interest accrued, premium
amortized, and discount accreted.
E. Net investment income on investments is distributed to shareholders daily
and automatically reinvested in additional 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, SHAREHOLDER SERVICING COSTS AND TRANSACTIONS WITH AFFILIATES:
----------------------------------------------------------------------------
Reserve Management Company, Inc. ("RMCI") manages the Trusts' investments,
effects purchases and sales thereof, and absorbs certain promotional
expenses. For such services 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% of any excess over $2 billion of the average daily closing net assets.
Also, under the current Service Agreement, RMCI was reimbursed $459,889 (New
York Fund), $109,072 (Connecticut Fund), $37,309 (Massachusetts Fund),
$15,416 (California Fund) and $34,840 (New Jersey Fund) during the year ended
May 31, 1995 for expenditures made on behalf of the Trusts' for personnel,
office space and equipment and shareholder accounting and administrative
services, to conduct the Trusts' business. The manager waived management fees
and expenses of $7,311, $14,913 and $494 on the Connecticut, Massachusetts
and New Jersey Funds, respectively. At May 31, 1995 the New York,
Connecticut, Massachusetts, California and New Jersey Funds, had accrued
expenses of $4,315, $729, $237, $313 and $610, respectively, due to RMCI.
3. 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.
10
<PAGE> 11
RESERVE NEW YORK TAX-EXEMPT TRUST ("NY TRUST")
RESERVE TAX-EXEMPT TRUST (CONNECTICUT, MASSACHUSETTS,
CALIFORNIA AND NEW JERSEY FUNDS) ("TRUST")
(THE NY TRUST AND TRUST ARE COLLECTIVELY REFERRED TO AS "TRUSTS")
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
4. INVESTMENT CONCENTRATION:
-------------------------
The New York, Connecticut, Massachusetts, California and New Jersey Funds
invest substantially all of their assets in portfolios of tax-exempt debt
obligations primarily consisting of issuers of each of the respective states.
The issuers' abilities to meet their obligations may be affected by economic,
regional or political developments. In order to reduce the credit risk
associated with such factors, 72.88%, 86.95%, 41.17%, 65.36% and 49.34% of
the New York, Connecticut, Massachusetts, California and New Jersey Funds'
investments, respectively, were backed by letters of credit, bond insurance
of financial institutions and financial guaranty assurance agencies.
5. FINANCIAL HIGHLIGHTS (FOR ONE SHARE OUTSTANDING THROUGHOUT EACH YEAR):
--------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR FISCAL YEARS ENDED MAY 31,
---------------------------------------------------
NEW YORK FUND 1995 1994 1993 1992 1991
------------------------------------------------------------ ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......................... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- -------
Income from investment operations........................... .0352 .0249 .0281 .0421 .0563
Expenses.................................................... .0099 .0099 .0103 .0104 .0105
------- ------- ------- ------- -------
Net investment income(1).................................... .0253 .0150 .0178 .0317 .0458
Dividends from net investment income(1)..................... (.0253) (.0150) (.0178) (.0317) (.0458)
------- ------- ------- ------- -------
Net asset value, end of year................................ $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======== ======== ======== ======== ========
Total Return................................................ 2.53% 1.50% 1.78% 3.17% 4.58%
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net assets in thousands, end of year........................ 152,906 148,387 149,785 156,567 148,079
Ratio of expenses to average net assets..................... .98% .98% 1.02% 1.03% 1.01%
Ratio of net investment income to average net assets........ 2.48% 1.48% 1.76% 3.09% 4.43%
<CAPTION>
CONNECTICUT FUND
------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......................... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- -------
Income from investment operations........................... .0352 .0250 .0269 .0400 .0534
Expenses(3)................................................. .0098 .0086 .0087 .0091 .0086
------- ------- ------- ------- -------
Net investment income(1).................................... .0254 .0164 .0182 .0309 .0448
Dividends from net investment income(1)..................... (.0254) (.0164) (.0182) (.0309) (.0448)
------- ------- ------- ------- -------
Net asset value, end of year................................ $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======== ======== ======== ======== ========
Total Return................................................ 2.54% 1.64% 1.82% 3.09% 4.48%
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net assets in thousands, end of year........................ 26,626 128,693 157,115 191,101 241,790
Ratio of expenses to average net assets(3).................. .89% .85% .86% .90% .85%
Ratio of net investment income to average net assets........ 2.33% 1.62% 1.81% 3.05% 4.41%
<CAPTION>
MASSACHUSETTS FUND
------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......................... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- -------
Income from investment operations........................... .0335 .0227 .0257 .0386 .0551
Expenses(3)................................................. .0070 .0052 .0048 .0045 .0032
------- ------- ------- ------- -------
Net investment income(1).................................... .0265 .0175 .0209 .0341 .0519
Dividends from net investment income(1)..................... (.0265) (.0175) (.0209) (.0341) (.0519)
------- ------- ------- ------- -------
Net asset value, end of year................................ $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======== ======== ======== ======== ========
Total Return................................................ 2.65% 1.75% 2.09% 3.41% 5.19%
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net assets in thousands, end of year........................ 10,169 14,824 13,305 7,186 4,652
Ratio of expenses to average net assets(3).................. .69% .51% .46% .44% .30%
Ratio of net investment income to average net assets........ 2.60% 1.73% 2.04% 3.28% 4.79%
</TABLE>
11
<PAGE> 12
RESERVE NEW YORK TAX-EXEMPT TRUST ("NY TRUST")
RESERVE TAX-EXEMPT TRUST (CONNECTICUT, MASSACHUSETTS,
CALIFORNIA AND NEW JERSEY FUNDS) ("TRUST")
(THE NY TRUST AND TRUST ARE COLLECTIVELY REFERRED TO AS "TRUSTS")
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
FINANCIAL HIGHLIGHTS (FOR ONE SHARE OUTSTANDING THROUGHOUT EACH PERIOD):
<TABLE>
<CAPTION>
OCTOBER
17,
1994
(COMMENCEMENT
OF
OPERATIONS)
THROUGH
MAY 31,
CALIFORNIA FUND 1995
--------------------------------------------------------------------------------------- -------
<S> <C>
Net asset value, beginning of period................................................... $1.0000
-------
Income from investment operations...................................................... .0243
Expenses(2)............................................................................ .0062
-------
Net investment income(1)............................................................... .0181
Dividends from net investment income(1)................................................ (.0181)
-------
Net asset value, end of period......................................................... $1.0000
========
Total Return........................................................................... 1.81%
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------
<S> <C>
Net assets in thousands, end of period................................................. 11,088
Ratio of expenses to average net assets(2)............................................. 1.02%
Ratio of net investment income to average net assets(2)................................ 2.95%
<CAPTION>
JUNE
21,
1994
(COMMENCEMENT
OF
OPERATIONS)
THROUGH
MAY 31,
NEW JERSEY FUND 1995
--------------------------------------------------------------------------------------- -------
<S> <C>
Net asset value, beginning of period................................................... $1.0000
-------
Income from investment operations...................................................... .0330
Expenses(2)(3)......................................................................... .0087
-------
Net investment income(1)............................................................... .0243
Dividends from net investment income(1)................................................ (.0243)
-------
Net asset value, end of period......................................................... $1.0000
========
Total Return........................................................................... 2.43%
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------
<S> <C>
Net assets in thousands, end of period................................................. 21,607
Ratio of expenses to average net assets(2)(3).......................................... 1.01%
Ratio of net investment income to average net assets(2)................................ 2.82%
</TABLE>
---------------
(1) Based on compounding of daily dividends. Not indicative of future results.
(2) Annualized.
(3) During these periods the Manager waived all or a portion of fees and
expenses. If there were no reductions in expenses, the actual expenses would
have been .91%, .95%, .96%, 1.00% and .95% for the Connecticut Fund, .80%,
1.01%, .96%, .94%, and .80% for the Massachusetts Fund and 1.01% for the New
Jersey Fund.
------------------------
FEDERAL TAX INFORMATION
The dividends distributed by each Fund are exempt interest dividends for
Federal tax purposes.
12
