<PAGE> 1
[THE RESERVE FUNDS LOGO]
Founders of
"America's First
Money Fund"
810 Seventh Avenue, New York, NY 10019-5868
GENERAL INFORMATION AND 24-HOUR YIELD AND BALANCE INFORMATION
800-637-1700
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]
Founders of
"America's First
Money Fund"
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
PRIMARY FUND
U.S. GOVERNMENT FUND
U.S. TREASURY FUND
FOR THE SIX MONTHS ENDED
NOVEMBER 30, 1996
(UNAUDITED)
<PAGE> 2
THE RESERVE FUND--PRIMARY FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1996--(UNAUDITED)
<TABLE>
<CAPTION>
% DAYS TO VALUE
RATE MATURITY (NOTE 1)
------------ --------- --------------
<S> <C> <C> <C>
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT -- 14.63%
Chase Manhattan Bank.......................................................... 5.68-5.70 67-108 $ 60,908,128
Banque Nationale de Paris(b).................................................. 5.37-5.38 82-91 98,114,056
Bayerische Hypothekenund Wechsel Bank(a)...................................... 5.375 88 35,036,987
Societe Generale(b)........................................................... 5.37-5.51 41-82 96,557,603
--------------
Total Negotiable Bank Certificates of Deposit................................. 290,616,774
--------------
PROMISSORY NOTES -- 3.73%
ABN Bank Canada(c)............................................................ 5.30 83 74,116,668
--------------
REPURCHASE AGREEMENTS -- 75.64%
FGPC 7.50% due 11/1/26, FGRA due from 9/15/98 to 7/15/08, FGRM 6.50%-8.875%
due from 7/15/18 to 12/15/23, FGSI due 8/1/23, FMAR due from 8/1/24 to
4/1/31, FNAR due from 7/1/18 to 7/1/26, FNMS 7.50%-9.50% due from 7/1/09 to
9/1/26, FNST due from 5/1/23 to 2/1/24, FNRM due 6/25/07, FNRA due from
8/25/08 to 2/25/24 and FRRA due 5/25/23 (Repo with Bear, Stearns & Co. Inc.
dated November 25, 1996 resale amount $317,329,768)......................... 5.35 3 317,329,768
GNMA 5.50%-16% due from 12/15/97 to 4/15/34 (Repo with DLJ Securities Corp.
dated November 18, 1996 resale amount $363,703,228)......................... 5.35 3-4 363,695,797
FGPC 9.50% due 4/1/21, FMAR due from 9/1/18 to 3/1/33, FMPC 9%-9.50% due from
4/1/04 to 12/7/04, FNAR due from 12/12/12 to 4/1/34 and FNMS 6%-11.75% due
from 5/1/99 to 11/1/24 (Repo with CS First Boston Corp. dated November 26,
1996 resale amount $250,260,069)............................................ 5.35 4 250,222,917
FNAR due 10/1/24, FNMS 7% due 3/1/09 and FMAR due from 12/1/22 to 10/1/26
(Repo with Goldman Sachs & Co. dated November 29, 1996 resale amount
$113,053,581)............................................................... 5.69 3 113,053,581
FNRM due from 5/25/03 to 3/25/24, FGRM due from 11/15/04 to 4/15/24 and FMRM
due from 7/15/21 to 9/15/22 (Repo with Prudential Securities dated November
29, 1996 resale amount $94,044,258)......................................... 5.65 3 94,044,258
FGPC 6%-8.50% due from 4/1/11 to 11/1/26, FNMS 6%-11% due from 8/1/06 to
11/1/26, FNAR due from 10/2/22 to 4/1/34, FNST due from 5/1/09 to 1/1/24,
FNCP 7.85%-8% due from 9/10/04 to 9/25/26, FNNT 7.125%-7.25% due from
3/21/11 to 4/30/26, FNSM 6.95% due 11/13/06, FNRA due 10/24/25, FNRM due
from 1/13/04 to 4/25/23, FMPC 6%-13.50% due from 1/1/04 to 5/1/20, FMAR due
from 1/1/18 to 10/1/23, FGRA due from 10/15/23 to 12/15/23 and FGRM due from
2/15/07 to 3/15/20 (Repo with Smith Barney Inc. dated November 18, 1996
resale amount $364,757,322)................................................. 5.35 3 364,757,322
--------------
Total Repurchase Agreements................................................... 1,503,103,643
--------------
TAXABLE MUNICIPAL BONDS -- 5.77%
Florida Housing Finance Agency Housing Revenue Bonds 1993 Series A(c)......... 5.42 7 40,989,777
Illinois Student Assistance(c)................................................ 5.39 7 25,216,101
Maricopa County Industrial Development Authority Revenue Bonds for Phoenix
Multi-Purpose Arena Project Series 1990(c).................................. 5.50 7 43,372,440
New Hampshire Business Finance Authority Revenue Bonds 1992 Series B(c)....... 5.60 7 5,019,444
--------------
Total Taxable Municipal Bonds................................................. 114,597,762
--------------
Total Primary Fund Investments -- (99.77%) (Cost $1,978,084,461)................ 1,982,434,847
Other assets, less liabilities -- (.23%)........................................ 4,614,304
--------------
NET ASSETS (100%) equivalent to $1.00 net asset value, offering and redemption
price per share based on 1,987,049,151 shares of beneficial interest $.001 par
value outstanding............................................................. $1,987,049,151
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
2
<PAGE> 3
THE RESERVE FUND--U.S. GOVERNMENT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1996--(UNAUDITED)
<TABLE>
<CAPTION>
% DAYS TO VALUE
RATE MATURITY (NOTE 1)
------------ ---------- ------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS
GNMA 6.50%-7.125% due from 11/15/23 to 10/20/24 (Repos with Bear, Stearns & Co.
Inc. dated November 25, 1996, resale amount $110,113,789).................... 5.32 3 $110,113,789
GNMA 6%-9.50% due from 11/15/04 to 10/15/26 (Repo with CS First Boston Corp.
dated November 18, 1996, resale amount $110,226,722)......................... 5.30 3 110,226,722
GNMA 6%-13.50% due from 12/15/97 to 4/15/29 (Repo with DLJ Securities Corp.
dated November 18, 1996, resale amount $112,233,022)......................... 5.35 3 112,233,022
GNMA 4.50%-11.50% due from 10/15/11 to 01/15/30 (Repo with Goldman Sachs & Co.
dated November 29, 1996, resale amount $105,049,670)......................... 5.66-5.95 3 105,049,670
GNMA 7% due from 11/15/23 to 1/15/24 (Repos with Merrill Lynch GSI dated
November 29, 1996 resale amount $4,001,917).................................. 5.75 3 4,001,917
GNMA 4%-12.25% due from 11/15/97 to 11/20/26 (Repo with Smith Barney Inc. dated
November 18, 1996, resale amount $110,228,006)............................... 5.33 3 110,228,006
------------
Total U.S. Government Fund Investments (99.70%) (Cost $566,000,000)............ 551,853,126
Other assets, less liabilities (.30%).......................................... 1,668,363
------------
NET ASSETS (100%) equivalent to $1.00 net asset value, offering and redemption
prices per share based on 553,521,489 shares of beneficial interest $.001 par
value outstanding.............................................................. $553,521,489
============
</TABLE>
THE RESERVE FUND--U.S. TREASURY FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1996--(UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
U.S. TREASURY BILLS -- 99.42%
U.S. Treasury Bills (Cost $148,430,599)........................................ 4.98-5.25 4-123 $149,707,961
Other assets, less liabilities (.58%).......................................... 877,874
------------
NET ASSETS (100%) equivalent to $1.00 net asset value, offering and redemption
prices per share based on 150,585,835 shares of beneficial interest $.001 par
value outstanding.............................................................. $150,585,835
============
</TABLE>
- ---------------
(a) Eurodollar Certificates of Deposit -- London Branch, United Kingdom.
(b) Yankee Certificates of Deposit.
(c) The interest rate is subject to change periodically. The rates shown were in
effect at November 30, 1996. Securities payable on demand are collateralized
by bank letter of credit, other bank credit agreements or financial guaranty
assurance agencies.
<TABLE>
<S> <C> <C>
SECURITY TYPE ABBREVIATIONS:
FGPC -- FHLMC Gold Mortgage-Backed Pass-Through Participation Certificates
FGRA -- FHLMC Gold REMIC Mortgage-Backed Pass-Through Participation Certificates -- Adjustable Rate
FGRM -- FHLMC Gold REMIC Mortgage-Backed Pass-Through Participation Certificates
FGSI -- FHLMC Gold Mortgage-Backed Pass-Through Participation Certificates STRIPS
FHLB -- Federal Home Loan Bank Consolidated Bond
FHLMC -- Federal Home Loan Mortgage Corporation
FHOB -- Farmers Home Administrative Certificate of Beneficial Ownership Floating Rate
FMAR -- FHLMC Adjustable Rate Mortgage-Backed Pass-Through Participation Certificates
FMPC -- FHLMC Mortgage-Backed Pass-Through Participation Certificates
FMRM -- FHLMC REMIC Mortgage-Backed Pass-Through Participation Certificates
FNAR -- FNMA Adjustable Rate Mortgage-Backed Pass-Through Securities
FNCP -- FNMA Mortgage-Backed Pass-Through Securities Callable STRIPS
FNMA -- Federal National Mortgage Association ("FNMA")
FNMS -- FNMA Mortgage-Backed Pass-Through Securities
FNNT -- FNMA Medium Term Notes
FNRA -- FNMA REMIC Adjustable Rate Mortgage-Backed Pass-Through Securities
FNRM -- FNMA REMIC Mortgage-Backed Pass-Through Securities
FNSM -- FNMA Debenture
FNST -- FNMA Mortgage-Backed Pass-Through Securities STRIPS
FRRA -- FHLMC REMIC Adjustable Rate
GNMA -- Government National Mortgage Association Mortgage-Backed Pass-Through Securities
STRIP -- Separate Trading of Registered Interest and Principal
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 4
THE RESERVE FUND--STATEMENTS OF OPERATIONS--(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
NOVEMBER 30, 1996
-------------------------------------------------
PRIMARY U.S. GOVERNMENT U.S. TREASURY
FUND FUND FUND
----------- --------------- ---------------
<S> <C> <C> <C>
INTEREST INCOME (Note 1)......................................... $48,864,022 $15,034,491 $ 3,798,151
----------- ----------- ----------
EXPENSES (Note 2)
Management fee................................................. 4,203,313 1,395,173 --
Comprehensive fee.............................................. -- -- 594,188
Shareholder servicing, administration and general office
expenses..................................................... 2,081,274 565,748 --
Distribution assistance (Note 3)............................... 1,573,209 513,265 104,502
Equipment expense.............................................. 330,131 87,958 --
Professional fees.............................................. 213,965 51,457 --
Occupancy costs................................................ 130,665 35,175 --
Stationery, printing and supplies.............................. 176,812 48,339 --
Trustee Fees................................................... 51,257 14,479 --
Other expenses................................................. 72,159 40,332 --
----------- ----------- ----------
Total Expenses............................................... 8,832,785 2,751,926 698,690
Less: voluntary waiver......................................... -- -- (148,374)
----------- ----------- ----------
Net Expenses................................................... 8,832,785 2,751,926 550,316
----------- ----------- ----------
NET INVESTMENT INCOME............................................ $40,031,237 $12,282,565 $ 3,247,835
=========== =========== ==========
</TABLE>
THE RESERVE FUND--STATEMENTS OF CHANGES IN NET ASSETS--(UNAUDITED)
<TABLE>
<CAPTION>
PRIMARY FUND U.S. GOVERNMENT FUND U.S. TREASURY FUND
-------------------------------- -------------------------------- -----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
NOVEMBER 30, YEAR ENDED NOVEMBER 30, YEAR ENDED NOVEMBER 30, YEAR ENDED
1996 MAY 31, 1996 1996 MAY 31, 1996 1996 MAY 31, 1996
-------------- -------------- -------------- -------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM
INVESTMENT OPERATIONS:
Net investment income
paid to shareholder
as dividends (Note
1)................. $ (40,031,237) $ (82,535,957) $ (12,282,565) $ (33,256,499) $(3,247,835) $ (5,400,705)
-------------- -------------- -------------- -------------- ------------ ------------
FROM CAPITAL SHARE
TRANSACTIONS (at net
asset value of $1 per
share):
Net proceeds from the
sale of shares..... 4,123,500,088 7,548,966,022 1,275,568,350 3,341,970,451 283,995,651 595,400,649
Net asset value of
shares issued on
reinvestment of
dividends.......... 40,031,237 82,535,957 12,282,565 33,256,499 3,247,835 5,400,705
-------------- -------------- -------------- -------------- ------------ ------------
Subtotal........... 4,163,531,325 7,631,501,979 1,287,850,915 3,375,226,950 287,243,486 600,801,354
Cost of shares
redeemed......... (3,840,596,264) (7,569,851,461) (1,302,826,599) (3,528,514,569) (279,423,817) (553,261,868)
-------------- -------------- -------------- -------------- ------------ ------------
Net increase
(decrease) from
capital share
transactions....... 322,935,061 61,650,518 (14,975,684) (153,287,619) 7,819,669 47,539,486
NET ASSETS:
Beginning of
period............. 1,664,114,090 1,602,463,572 568,497,173 721,784,792 142,766,166 95,226,680
-------------- -------------- -------------- -------------- ------------ ------------
End of period........ $1,987,049,151 $1,664,114,090 $ 553,521,489 $ 568,497,173 $150,585,835 $142,766,166
============== ============== ============== ============== ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 5
THE RESERVE FUND (THE "FUND")
PRIMARY, U.S. GOVERNMENT AND U.S. TREASURY FUNDS (THE "FUNDS")
NOTES TO FINANCIAL STATEMENTS--(UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES:
------------------------------
The Fund is registered under the Investment Company Act of 1940 as a
non-diversified, open end investment company. The policies summarized below
are consistently followed in the preparation of its financial statements in
conformity with generally accepted accounting principles.
A. The Fund's authorized shares of beneficial interest are unlimited. The
Fund's shares are divided into four classes, Primary Fund, U.S. Government
Fund, U.S. Treasury Fund and the Strategist Money Market Fund. These
financial statements and notes apply only to the Primary, U.S. Government and
U.S. Treasury Funds.
B. Securities are stated at value which represents amortized cost plus
interest accrued to date. Under Securities and Exchange Commission Rule 2a-7,
the Fund uses amortized cost to value the portfolios, 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 days to maturity irrespective of intervening changes in interest rates or
market value of investments. The maturity of floating or variable rate
instruments in which the Fund 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 the portfolio's average weighted life
to maturity.
C. It is the Fund's policy to comply with Subchapter M of the Internal
Revenue Code and to distribute all of its taxable 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. The Fund's custodian holds the securities owned subject to repurchase
agreements. The Fund's investment adviser determines that the resale amount
of the repurchase agreement is fully collateralized.
F. Net investment income on investments is distributed to shareholders daily
and automatically reinvested in additional Fund shares.
G. The Primary and U.S. Government Fund's are charged only for their direct
or allocated (in proportion to net assets or number of shareholder accounts)
share of expenses.
2. MANAGEMENT FEE, SHAREHOLDER SERVICING COST AND TRANSACTIONS WITH AFFILIATES:
---------------------------------------------------------------------------
Under the Management Agreement, Reserve Management Company, Inc. ("RMCI"),
manages the Fund's investments, effects purchases and sales thereof, and
absorbs certain promotional expenses. RMCI receives management fees from the
Primary and U.S. Government Funds 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 net assets of Primary and U.S. Government Funds, subject to
reimbursement of Fund expenses (excluding brokerage fees and commissions,
interest charges, taxes and extraordinary legal fees and expenses) exceeding
1% of average daily closing net assets. For the U.S. Treasury Fund, RMCI
receives a comprehensive fee at an annual rate of .80% of the average daily
net assets. At November 30, 1996, the advisor waived a portion of its
comprehensive fee. Also, under the current Service Agreement, RMCI was
reimbursed $3,056,263 (Primary Fund) and $843,488 (U.S. Government Fund)
during the six months ended November 30, 1996 for expenditures made on behalf
of the Fund's respective Portfolios for personnel, office space and equipment
and shareholder accounting and administrative services, to carry out the
Fund's business. At November 30, 1996, the Primary, U.S. Government and U.S.
Treasury Funds had accrued expenses of $162,077, $45,369, and $55,781,
respectively, due to RMCI.
3. DISTRIBUTION ASSISTANCE:
-----------------------
Pursuant to a Plan of Distribution, subject to the Fund's expense
limitations, the Fund will make payments of up to .20% per annum of the
average net asset value of shareholder accounts as to which the payee has
rendered assistance in distributing shares of the portfolios. The Plan
requires RMCI to pay an equivalent amount from its own resources.
5
<PAGE> 6
THE RESERVE FUND (THE "FUND")
PRIMARY, U.S. GOVERNMENT AND U.S. TREASURY FUNDS (THE "FUNDS")
NOTES TO FINANCIAL STATEMENTS--(UNAUDITED)--(CONTINUED)
4. 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 at 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.
5. COMPONENTS OF NET ASSETS:
---------------------------
At 11/30/96, the following funds had these components of net assets:
<TABLE>
<CAPTION>
PRIMARY U.S. GOVERNMENT U.S. TREASURY
-------------- --------------- -------------
<S> <C> <C> <C>
Par Value................................................... $ 1,987,049 $ 553,521 $ 150,586
Paid-in-Capital............................................. 1,985,062,102 552,967,968 150,435,249
-------------- ------------ ------------
Net Assets.................................................. $1,987,049,151 $ 553,521,489 $ 150,585,835
============== ============ ============
</TABLE>
------------------------
FEDERAL TAX INFORMATION
The dividends distributed by the Primary, U.S. Government and U.S. Treasury
Funds in each of the periods are treated for Federal tax purposes as ordinary
income.
6
<PAGE> 7
THE RESERVE FUND
PRIMARY, U.S. GOVERNMENT AND U.S. TREASURY FUND
NOTES TO FINANCIAL STATEMENTS--(UNAUDITED)--(CONTINUED)
SUPPLEMENTARY INFORMATION (UNAUDITED) (FOR ONE SHARE OUTSTANDING DURING EACH
PERIOD):
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS FOR FISCAL YEARS ENDED MAY 31,
ENDED -------------------------------------------------------------
PRIMARY FUND NOVEMBER 30, 1996 1996 1995 1994
- -------------------------------------- ----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period.............................. $1.0000 $1.0000 $1.0000 $1.0000
---------- ------ ------ ------
Income from investment operations..... .0273 .0591 .0549 .0345
Expenses.............................. .0049 .0101 .0099 .0099
---------- ------ ------ ------
Net investment income(1).............. .0224 .0490 .0450 .0246
Dividends from net investment
income(1)........................... (.0224) (.0490) (.0450) (.0246)
---------- ------ ------ ------
Net asset value, end of period........ $1.0000 $1.0000 $1.0000 $1.0000
========== ====== ====== ======
---------- ------ ------ ------
Total Return.......................... 4.49%(2) 4.90% 4.50% 2.46%
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------
<S> <C> <C> <C> <C>
Net assets in thousands, end of
period.............................. 1,710,436 1,664,114 1,602,464 1,415,378
Ratio of expenses to average net
assets.............................. .98%(2) %.98 %.97 %.97
Ratio of net investment income to
average net assets.................. 4.45%(2) 4.79% 4.42% 2.44%
<CAPTION>
U.S. GOVERNMENT FUND
<S> <C> <C> <C> <C>
Net asset value, beginning of
period.............................. $1.0000 $1.0000 $1.0000 $1.0000
---------- ------ ------ ------
Income from investment operations..... .0270 .0586 .0542 .0337
Expenses.............................. .0049 .0102 .0101 .0100
---------- ------ ------ ------
Net investment income(1).............. .0221 .0484 .0441 .0237
Dividends from net investment
income(1)........................... (.0221) (.0484) (.0441) (.0237)
---------- ------ ------ ------
Net asset value, end of period........ $1.0000 $1.0000 $1.0000 $1.0000
========== ====== ====== ======
Total Return.......................... 4.42%(2) 4.84% 4.41% 2.37%
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
<S> <C> <C> <C> <C>
Net assets in thousands, end of
period.............................. 746,601 586,497 721,785 740,698
Ratio of expenses to average net
assets.............................. .98%(2) 1.00% %.99 %.99
Ratio of net investment income to
average net assets.................. 4.38%(2) 4.75% 4.31% 2.35%
<CAPTION>
FOR FISCAL YEARS ENDED MAY 31,
---------------------------------------
PRIMARY FUND 1993 1992
- -------------------------------------- ----------------- -----------------
<S> <C> <C>
Net asset value, beginning of
period.............................. $1.0000 $1.0000
------ ------
Income from investment operations..... .0361 .0541
Expenses.............................. .0100 .0100
------ ------
Net investment income(1).............. .0261 .0441
Dividends from net investment
income(1)........................... (.0261) (.0441)
------ ------
Net asset value, end of period........ $1.0000 $1.0000
====== ======
Total Return.......................... 2.61% 4.41%
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------
<S> <<C> <C>
Net assets in thousands, end of
period.............................. 1,389,136 1,553,828
Ratio of expenses to average net
assets.............................. %.99 %.99
Ratio of net investment income to
average net assets.................. 2.58% 4.34%
U.S. GOVERNMENT FUND
<S> <<C> <C>
Net asset value, beginning of
period.............................. $1.0000 $1.0000
------ ------
Income from investment operations..... .0353 .0533
Expenses.............................. .0100 .0101
------ ------
Net investment income(1).............. .0253 .0432
Dividends from net investment
income(1)........................... (.0253) (.0432)
------ ------
Net asset value, end of period........ $1.0000 $1.0000
======= =======
Total Return.......................... 2.53% 4.32%
RATIOS/SUPPLEMENTAL DATA
<S> <<C> <C>
Net assets in thousands, end of
period.............................. 728,138 853,823
Ratio of expenses to average net
assets.............................. %.99 %.99
Ratio of net investment income to
average net assets.................. 2.50% 4.21%
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS FOR FISCAL YEARS ENDED MAY 31,
ENDED ----------------------------------------------------
U.S. TREASURY FUND NOVEMBER 30, 1996 1996 1995 1994 1993
- -------------------------------------- ----------------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.............................. $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
----------- ------- ------- ------- -------
Income from investment operations..... .0257 .0547 .0523 .0313 .0330
Expenses.............................. .0037 .0081 .0067 .0073 .0092
----------- ------- ------- ------- -------
Net investment income(1).............. .0220 .0466 .0456 .0240 .0238
Dividends from net investment
income(1)........................... (.0220) (.0466) (.0456) (.0240) (.0238)
----------- ------- ------- ------- -------
Net asset value, end of period........ $1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
=========== ======= ======= ======= =======
Total Return.......................... 4.42%(2) 4.66% 4.56% 2.40% 2.38%
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------
<S> <C> <C> <C> <C> <C>
Net assets in thousands, end of
period.............................. 106,517 142,766 95,227 7,350 32,325
Ratio of expenses to average net
assets(3)........................... .74%(2) .79% .68% .73% .80%
Ratio of net investment income to
average net assets.................. 4.37%(2) 4.53% 4.64% 2.38% 2.07%
<CAPTION>
FEBRUARY 3, 1992
(COMMENCEMENT
OF OPERATIONS)
U.S. TREASURY FUND THROUGH MAY 31, 1992
- -------------------------------------- --------------------
<S> <C>
Net asset value, beginning of
period.............................. $1.0000
------------
Income from investment operations..... .0121
Expenses.............................. .0031
------------
Net investment income(1).............. .0090
Dividends from net investment
income(1)........................... (.0090)
------------
Net asset value, end of period........ $ 1.0000
============
Total Return.......................... 2.75%(2)
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------
<S> <C>
Net assets in thousands, end of
period.............................. 512
Ratio of expenses to average net
assets(3)........................... .97(2)
Ratio of net investment income to
average net assets.................. 2.74%(2)
</TABLE>
- ---------------
(1) Based on compounding of daily dividends. Not indicative of future results.
(2) Annualized.
(3) During this period the manager waived a portion of fees and expenses. If
there were no reduction in expenses, the actual expenses would have been
1.00%.
7
