<PAGE>
AMERICAN EXPRESS
MONEY MARKET ACCOUNTS
offered by
THE RESERVE FUNDS
PRIMARY FUND
U.S. GOVERNMENT FUND
U.S. TREASURY FUND
INTERSTATE TAX-EXEMPT FUND
CALIFORNIA II FUND
CONNECTICUT TAX-EXEMPT FUND
FLORIDA TAX-EXEMPT FUND
MASSACHUSETTS TAX-EXEMPT FUND
MICHIGAN TAX-EXEMPT FUND
NEW JERSEY TAX-EXEMPT FUND
NEW YORK TAX-EXEMPT FUND
OHIO TAX-EXEMPT FUND
PENNSYLVANIA TAX-EXEMPT FUND
SEMI-ANNUAL REPORT
November 30, 1999
(R)[LOGO OF AMERICAN EXPRESS]
- --------------------------------------------------------------------------------
(R)[LOGO OF AMERICAN EXPRESS] BULKRATE
FINANCIAL U.S. POSTAGE
DIRECT PAID
PERMIT NO 8898
BRONX, NY
American Express Money Market Account is a cash management service offered by
The Reserve Funds through American Enterprise Investment Services Inc., a
subsidiary of American Express Financial Corporation. Shares offered are shares
of The Reserve Funds.
American Enterprise Investment Services Inc.
A subsidiary of American Express Financial Corporation
IDS Tower 10
Minneapolis, MN 55440
www.americanexpress.com
(C)1998 American Express Financial Corporation
All rights reserved.
This literature is not authorized for distribution to prospective investors
unless preceded or accompanied by an appropriate current prospectus.
Distributor - Resrv Partners, Inc.
AMEX/SEMI-ANNUAL 01/00
<PAGE>
THE RESERVE FUND--PRIMARY FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT NEGOTIABLE BANK CERTIFICATES OF DEPOSIT -- 81.6% (NOTE 1)
- ------------ ------------------------------------------------------------------------------------------- --------------
<S> <C> <C>
DOMESTIC--22.1%
$150,000,000 American Express Centurion Bank, 6.05%, 2/14/00............................................ $ 150,000,000
100,000,000 BankBoston, NA, 5.85%, 2/14/00............................................................. 100,000,000
50,000,000 Chase Manhattan Bank, 5.85%, 2/14/00....................................................... 50,000,000
150,000,000 Morgan Guaranty Trust Co., N.Y., 5.65%, 2/3/00............................................. 150,000,000
150,000,000 Regions Bank, 6.03%, 4/4/00................................................................ 150,000,000
50,000,000 Southtrust Bank NA, 5.93%, 2/15/00......................................................... 50,000,000
150,000,000 Wilmington Trust Co., 5.88%, 2/22/00....................................................... 150,000,000
--------------
800,000,000
--------------
EURO -- 12.5%
150,000,000 Bank of Scotland, 6.14%, 1/31/00........................................................... 150,000,000
150,000,000 ING Bank, NV, 5.87%, 3/27/00............................................................... 150,000,000
150,000,000 Norddeutsche Landesbank Girozentrale, 6.065%, 2/7/00....................................... 150,001,394
--------------
450,001,394
--------------
YANKEES -- 47.0%
50,000,000 Bank Austria, 6.08%, 2/22/00............................................................... 50,000,000
50,000,000 Banque Nationale de Paris, 5.25%, 12/8/99.................................................. 50,000,000
100,000,000 Banque Nationale de Paris, 6.00%, 2/29/00.................................................. 100,000,000
150,000,000 Bayerische Hypo-und Vereinsbank, AG, 6.04%, 2/8/00......................................... 150,005,634
150,000,000 Bayerische Landesbank Girozentrale, 6.01%, 2/7/00.......................................... 150,001,394
150,000,000 Commerzbank, AG, 5.79%, 2/10/00............................................................ 150,000,000
150,000,000 Credit Communal De Belgique SA, 6.03%, 2/4/00.............................................. 150,000,000
150,000,000 Credit Suisse First Boston, 5.73%, 2/7/00.................................................. 150,002,752
150,000,000 Deutsche Bank, AG, 6.00%, 3/2/00........................................................... 150,000,000
150,000,000 Landesbank Hessen-Thueringen Girozentrale, 6.025%, 2/3/00.................................. 150,001,313
150,000,000 Lloyds TSB Bank PLC, 5.90%, 2/15/00........................................................ 150,000,000
150,000,000 National Westminster Bank, PLC, 5.5425%, 11/22/00.......................................... 149,899,341
150,000,000 Westdeutsche Landesbank Girozentrale, 6.00%, 3/1/00........................................ 150,000,000
--------------
1,699,910,434
--------------
Total Negotiable Bank Certificates of Deposit (Cost $2,949,911,828)........................ 2,949,911,828
--------------
COLLATERALIZED PROMISSORY NOTES--1.4% (B)
50,000,000 ABN/AMRO, 5.73%, 2/23/00 (Cost $49,331,500)................................................ 49,331,500
--------------
REPURCHASE AGREEMENTS--19.7%
512,000,000 Bear, Stearns & Co. Inc., 5.74%, 12/1/99 (collateralized by FGPC 7.0% due 8/1/29 valued at
$9,294,133, FGSI 0% due 1/1/24 to 9/1/29 valued $208,581,038, FGRA 0% due 7/15/08 to
7/15/24 valued at $63,216,879, FGRM 6.0% to 7.0% due 8/15/14 to 3/15/26 valued at
$50,910,203, FNST 0% due 4/1/23 to 5/1/28 valued at $62,726,386, FNRA 0% due 8/25/21 to
7/25/26 valued at $77,151,181, FNRM 0% due 2/25/14 to 9/25/28 valued at $37,557, 053, FRRA
0% due 3/25/23 valued at $23,100,504)...................................................... 512,000,000
100,000,000 Prudential Securities Inc., 5.71%, 12/1/99 (collateralized by TPRN 6.375% due 8/15/02
valued at $33,324,323, RFIN 0% due 7/15/05 valued at $15,974,860, FNRM 0% due 12/25/21 TO
10/25/28 valued at $13,202,591, FXRM 0% due 7/18/28 valued at $5,140,839, FGRM 0% due
4/15/24 to 6/15/28 valued at $50,910,203).................................................. 100,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
2
<PAGE>
THE RESERVE FUND--PRIMARY FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1999 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT REPURCHASE AGREEMENTS -- CONTINUED (NOTE 1)
- ------------ ------------------------------------------------------------------------------------------- --------------
<S> <C> <C>
$100,000,000 Donaldson, Luftkin and Jenrette Securities Corp., 5.72%, 12/1/99 (collateralized by FGPC
9.50% due 8/1/26 valued at $6,270,990, FNMS 6.00% to 7.59% due 4/1/19 to 11/29/29 valued at
$96,731,599)............................................................................... $ 100,000,000
--------------
Total Repurchase Agreements (Cost $712,000,000)............................................ 712,000,000
--------------
TAXABLE MUNICIPAL BONDS--0.7% (A) (NOTE 1)
25,100,000 Illinois Student Assistance, 5.52% (LOC Sallie Mae), 12/1/22 (Cost $25,100,000)............ 25,100,000
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS (COST $3,736,343,328)...................................... 103.4% 3,736,343,328
LIABILITIES, LESS OTHER ASSETS............................................... (3.4) (122,840,656)
------ --------------
NET ASSETS................................................................... 100.0% $3,613,502,672
===== ==============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE BASED ON 3,613,502,672 SHARES
OF BENEFICIAL INTEREST $.001 PAR VALUE OUTSTANDING........................... $1.00
=====
</TABLE>
- ---------------
(a) The interest rates, as reported November 30, 1999, are subject to change
periodically. Securities are payable on demand and are collateralized by
letters of credit, other bank credit agreements or financial guaranty
assurance agencies.
(b) Collateralized by bank letters of credit.
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE>
THE RESERVE FUND--U.S. GOVERNMENT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT REPURCHASE AGREEMENTS -- 100.8% (NOTE 1)
- ------------ ----------------------------------------------------------------------------------- ------------
<S> <C> <C>
$190,000,000 Bear, Stearns & Co. Inc., 5.72%, 12/1/99 (collateralized by GNMA, 5.50%-9.50%, due from 8/14/15
to 8/15/29 valued at $198,149,361)............................................................. $190,000,000
200,000,000 DLJ Securities Corporation, 5.72%, 12/1/99 (collateralized by GNMA, 5.50%-15.00%, due from
4/15/01 to 12/15/31 valued at $200,004,524).................................................... 200,000,000
165,000,000 Prudential Securities Inc., 5.68%, 12/1/99 (collateralized by GNMA, 5.00%-6.625%, due from
5/20/28 to 8/24/20 valued at $165,000,000)..................................................... 165,000,000
173,000,000 Lehman Brothers Inc., 5.68%, 12/1/99 (collateralized by GNMA, 6.00%-9.50% due from 11/15/06 to
12/20/28 valued at $173,000,257)............................................................... 173,000,000
------------
TOTAL REPURCHASE AGREEMENTS (COST $728,000,000).................................... 100.8% 728,000,000
LIABILITIES, LESS OTHER ASSETS..................................................... (0.8) (5,436,021)
------ ------------
NET ASSETS......................................................................... 100.0% $722,563,979
====== ============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICES PER SHARE BASED ON 722,563,979 SHARES OF
BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING............................................... $1.00
=====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
THE RESERVE FUND--U.S. TREASURY FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT U.S. TREASURY BILLS -- 99.7% (NOTE 1)
- ------------ ----------------------------------------------------------------------------------- ------------
<S> <C> <C>
$ 31,500,000 4.57%-4.86%, 12/2/99........................................................................... $ 31,495,888
16,500,000 4.58%-4.83%, 12/9/99........................................................................... 16,482,651
13,000,000 4.68%, 12/23/99................................................................................ 12,962,820
27,500,000 4.76%-4.88%, 1/6/00............................................................................ 27,368,365
35,000,000 4.93%-5.25%, 1/13/00........................................................................... 34,787,538
40,500,000 4.96%-5.20%, 1/20/00........................................................................... 40,213,115
25,000,000 4.70%, 1/27/00................................................................................. 24,813,958
24,500,000 4.83%, 2/3/00.................................................................................. 24,289,844
25,900,000 4.65%-4.84%, 2/10/00........................................................................... 25,657,682
40,000,000 4.89%-4.91%, 2/17/00........................................................................... 39,575,767
13,000,000 5.13%-5.14%, 2/24/00........................................................................... 12,842,502
22,500,000 5.11%-5.12%, 4/27/00........................................................................... 22,027,633
------------
TOTAL U.S. TREASURY BILLS (COST $312,517,763)...................................... 99.7% 312,517,763
OTHER ASSETS, LESS LIABILITIES..................................................... 0.3 939,926
------ ------------
NET ASSETS......................................................................... 100.0% $313,457,689
====== ============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICES PER SHARE BASED ON 313,457,689 SHARES OF
BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING................................... $1.00
=====
</TABLE>
<TABLE>
<S> <C>
SECURITY TYPE ABBREVIATIONS
FGPC -- FHLMC Gold Mortgage-Backed Pass-Through Participation Certificates
FGRA -- Federal Home Loan Mortgage Corp. ("FHLMC") Gold Adjustable Rate REMIC
FGRM -- FHLMC Gold REMIC Mortgage-Backed Pass-Through Participation Certificates
FGSI -- Freddie MAC Gold Strip Interest Portion
FNMS -- FNMA Mortgage-Backed Pass-Through Securities
FNRA -- FNMA REMIC Adjustable Rate Mortgage-Backed Pass-Through Securities
FNRM -- Federal National Mortgage Association ("FNMA") REMIC Mortgage-Backed Pass-Through Securities
FRRA -- FHLMC REMIC Adjustable Rate
FNST -- FNMA Stripped Mortgage-Backed Pass-Through Securities
FXRM -- FNMA REMIC Fixed Rate
RFIN -- Resolution Funding Corp. STRIPS
TPRN -- U.S. Treasury Principal STRIPS
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
RESERVE TAX-EXEMPT TRUST--INTERSTATE TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--102.0% (NOTE 1)
- ------------ ---------------------------------------------------------------------------------------- ------------
<S> <C> <C>
ALABAMA -- .2%
$ 500,000 Montgomery BMC Spl Care Fac. Fing. Auth., Series H, 3.95%, 12/1/30 (a)........................... $ 500,000
------------
ARIZONA -- 4.9%
2,600,000 Apache County IDA for Tucson Electric Power Company, 4.00%, 2,600,000 12/1/20 (a)
900,000 Apache County IDA for Tucson Electric Power Company, Series 83A, 3.90%, 12/15/18 (a)............. 900,000
2,200,000 Apache County IDA for Tucson Electric Power Company, Series 83B, 3.95%, 12/15/18 (a)............. 2,200,000
1,100,000 Arizona HFA for Pooled Loan Program, 3.90%, 10/1/15 (a).......................................... 1,100,000
550,000 Avondale IDA for National Health INVS, 3.90%, 12/1/14 (a)........................................ 550,000
3,500,000 Pima County IDA PCR for Tucson Electric Project, 3.90%, 12/1/22 (a).............................. 3,500,000
2,225,000 Yavapai IDA for Regional Medical Center, Series B, 3.90%, 12/1/26 (a)............................ 2,225,000
------------
13,075,000
------------
CALIFORNIA -- 2.8%
1,200,000 Anaheim UHSD for School Fac. Brdg. Fdg., 3.60%, 9/1/13 (a)....................................... 1,200,000
700,000 California School Financing Corp. for Capital Improvement Fing., 3.80%, 7/1/24 (a)............... 700,000
400,000 Fremont Public Finance Authority for Family Res. Center, 3.65%, 8/1/28 (a)....................... 400,000
700,000 Irvine Ranch Water District, Series B, 3.85%, 10/1/04 (a)........................................ 700,000
1,500,000 Los Angeles Community Development for Willowbrook Proj., 3.65%, 11/1/15 (a)...................... 1,500,000
400,000 Los Angeles CRA for Promenade Towers, Series 1989, 3.65%, 4/1/09 (a)............................. 400,000
600,000 Los Angeles USD for Belmont Learning Complex A, 3.60%, 12/1/17 (a)............................... 600,000
1,000,000 Orange County Apartment Development Revenue Bonds for Lakes Project A, 3.55%,
12/1/06 (a)
1,000,000 Watereuse Finance Authority, 3.60%, 5/1/28 (a)................................................... 1,000,000
------------
7,500,000
------------
COLORADO -- 1.4%
2,800,000 Arapahoe School District #5 for Cherry Creek TAN, 4.25%, 6/30/00................................. 2,808,375
1,000,000 Denver Airport, Series B, 3.90%, 12/1/20 (a)..................................................... 1,000,000
------------
3,808,375
------------
CONNECTICUT -- 3.3%
1,200,000 Connecticut HEF for Bradley Health Care, Series B, 3.50%, 7/1/29 (a)............................. 1,200,000
1,440,000 Connecticut HEF for Charlotte Hospital, Series C, 3.70%, 7/1/13 (a).............................. 1,440,000
2,400,000 Connecticut HEF for Yale University, Series T-1, 3.75%, 7/1/29 (a)............................... 2,400,000
300,000 Connecticut HEF for Yale University, Series U, 3.85%, 7/1/33 (a)................................. 300,000
700,000 Connecticut Special Tax Transportation Infrastructure Second Lien Revenue Bonds, 3.80%,
12/1/10 (a)..................................................................................... 700,000
700,000 Connecticut State HEFA for St. Raphael, Series J, 3.60%, 7/1/22 (a).............................. 700,000
900,000 Connecticut State HEFA for Stamford Hospital, Series H, 3.60% 7/1/24 (a)......................... 900,000
1,200,000 Hartford Redev. Agency MHR for Underwood Towers Project, 3.80%, 6/1/20 (a)....................... 1,200,000
------------
8,840,000
------------
DISTRICT OF COLUMBIA -- 4.4%
8,200,000 Washington, D.C. George Washington University, 3.90%, 3/1/06 (a)................................. 8,200,000
2,200,000 Washington, D.C. Housing Finance Agency RAW, 3.50%, 7/1/27 (a)................................... 2,200,000
1,220,000 Washington, D.C. National Children's Center Inc., 3.90%, 2/1/20 (a).............................. 1,220,000
------------
11,620,000
------------
FLORIDA -- 7.7%
500,000 Brevard County MHR for Malabar Lakes Proj., 3.85%, 12/1/10 (a)................................... 500,000
100,000 Dade County HFA for Miami Children's Hospital, 4.10%, 9/1/25 (a)................................. 100,000
500,000 Dade County IDA for Dolphin Stadium Project, Series A, 3.80%, 1/1/16 (a)......................... 500,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
RESERVE TAX-EXEMPT TRUST--INTERSTATE TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1999 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS (CONTINUED) (NOTE 1)
- ------------ ------------
<S> <C> <C>
FLORIDA -- 7.7% (CONTINUED)
$1,000,000 Dade County IDA for Dolphin Stadium Project, Series B, 3.80%, 1/1/16 (a)......................... $ 1,000,000
1,500,000 Dade County IDA for Dolphin Stadium Project, Series D, 3.80%, 1/1/16 (a)......................... 1,500,000
100,000 Florida Gulf Coast for University of Florida, Certificate Participation, 3.75%, 8/1/27 (a)....... 100,000
1,715,000 Florida Housing Finance Agency for Multifamily Lake 3.80%, 6/1/07 (a)............................ 1,715,000
1,300,000 Florida Local Gov't Financial Auth. for Lake Wales Medical Centers, Series A, 4.05%,
3/1/15 (a)...................................................................................... 1,300,000
10,000 Gulf Breeze, Series 85 A Revenue Bonds, 3.85%, 12/1/15 (a)....................................... 10,000
2,000,000 Orange IDA for Lake Highland Prep School, 3.95%, 10/1/18 (a)..................................... 2,000,000
960,000 Orange IDA for Trinity Prep School, 3.95%, 10/1/23 (a)........................................... 960,000
10,000,000 Pinellas School District TAN, 4.25%, 6/30/00..................................................... 10,033,844
200,000 Polk IDA IDR for Florida Conv. Ctrs. Project, 3.70%, 1/1/11 (a).................................. 200,000
400,000 University of N. Florida HEF for Capital Improvement Project, 3.30%, 11/1/24 (a)................. 400,000
------------
20,318,844
------------
GEORGIA -- 4.5%
400,000 Clayton Housing Auth. Multifamily for Rainwood Development, 3.975%, 5/1/06 (a)................... 400,000
1,800,000 Elbert County IDR for Seaboard Farms of Elberton, 3.90%, 7/1/05 (a).............................. 1,800,000
9,656,880 Georgia Muni. Assoc. Pool Bd. Ctf., Series B4, 3.85%, 12/15/00 (a)............................... 9,656,880
------------
11,856,880
------------
ILLINOIS -- 3.7%
1,500,000 Chicago Emergency Telephone System GOB, 4.50%, 1/1/00 (b)........................................ 1,501,481
100,000 Illinois Development Finance Authority PCR for Commonwealth Edison-C, 3.90%, 3/1/09 (a).......... 100,000
1,000,000 Illinois Health Facs. Authority for Pooled Financing, Series F, 3.90%, 8/1/15 (a)................ 1,000,000
700,000 Illinois Health Facs. Authority for Swedish Convenant Hospital, 3.90%, 8/1/25 (a)................ 700,000
900,000 Illinois Health Facs. Authority for Swedish Convenant Hospital, Series A, 3.90%, 8/1/25 (a)...... 900,000
850,000 Illinois HFA for Community Hospital Center-B, 3.90%, 10/1/15 (a)................................. 850,000
465,000 Illinois HFA for Community Hospital Center-C, 3.90%, 10/1/15 (a)................................. 465,000
2,000,000 McCook Illinois for St Andrew Society-B, 3.95%, 12/1/21 (a)...................................... 2,000,000
800,000 Naperville Illinois for Heritage YMCA Group, 3.80%, 12/1/29 (a).................................. 800,000
1,580,000 Streamwood IDA for Olde Church Centre Project, 4.15%, 12/1/14 (a)................................ 1,580,000
------------
9,896,481
------------
IOWA -- .4%
1,000,000 Des Moines HFR for Iowa Methodist Med. Center Project, 3.40%, 8/1/15 (a)......................... 1,000,000
------------
KANSAS -- 1.4%
3,800,000 Overland Parks Temp Notes, 3.50%, 4/29/00........................................................ 3,804,828
------------
KENTUCKY -- 3.8%
8,800,000 Kentucky Asset/Liability COP, 3.85%, 6/30/01 (b)................................................. 8,800,000
1,210,000 Lexington Fayette RAW for Richmond Place Assoc. Project, 3.30%, 4/1/15 (a)....................... 1,210,000
------------
10,010,000
------------
LOUISIANA -- 1.1%
1,000,000 Lake Charles Harbor & Terminal for Citgo Pete Corp., 3.90%, 8/1/07 (a)........................... 1,000,000
1,000,000 Louisiana Offshore Terminal Authority 1st Stage A-Loop Inc., 3.60%, 9/1/08 (a)................... 1,000,000
1,000,000 Louisiana Public Facilities Authority W. Kingston Med. Center, 4.00%, 9/1/25 (a)................. 1,000,000
------------
3,000,000
------------
MARYLAND -- 2.4%
300,000 Baltimore IDA for Baltimore Cap Acquisition, 3.90%, 8/1/16 (a)................................... 300,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
RESERVE TAX-EXEMPT TRUST--INTERSTATE TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1999 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS (CONTINUED) (NOTE 1)
- ------------ ------------
<S> <C> <C>
MARYLAND -- 2.4% (CONTINUED)
$1,000,000 Baltimore Sheppard & Enoch Pratt Hospital, 3.90%, 7/1/21 (a)..................................... $ 1,000,000
2,000,000 Maryland Health & Higher Education Authority for John Hopkins Hospital, Series A, 3.85%,
7/1/27 (a)...................................................................................... 2,000,000
1,000,000 Maryland Health & Higher Education Authority for Pooled Loan Program, Series A, 3.85%,
4/1/35 (a)...................................................................................... 1,000,000
200,000 Montgomery County IDA for Info Systems and Network Corp., 3.85%, 4/1/14 (a)...................... 200,000
2,000,000 Prince George's County IDA for Frank Parsons Paper Co., 4.10%, 1/1/13 (a)........................ 2,000,000
------------
6,500,000
------------
MASSACHUSETTS -- 5.0%
300,000 Massachusetts HEF Brigham & Women's Hospital, 3.80%, 7/1/17 (a).................................. 300,000
100,000 Massachusetts HEF for Capital Asset Program, 3.55%, 1/1/19 (a)................................... 100,000
500,000 Massachusetts HEF for Harvard University, 3.71%, 8/1/17 (a)...................................... 500,000
200,000 Massachusetts HEF for Partners Health Care Systems, 3.85%, 7/1/27 (a)............................ 200,000
400,000 Massachusetts HEF for Williams College, 3.75%, 8/1/14 (a)........................................ 400,000
400,000 Massachusetts HEF for Wellesley College, Issue B, 3.75%, 7/1/22 (a).............................. 400,000
200,000 Massachusetts IFA for Governor Dummer Academy, 3.80%, 7/1/26 (a)................................. 200,000
400,000 Massachusetts Muni Wholesale Electric Co., Series C, 3.80%, 7/1/19 (a)........................... 400,000
700,000 Massachusetts State GOB, Series B, 3.75%, 8/1/15 (a)............................................. 700,000
400,000 Massachusetts Water Resource Authority, Series A, 3.80%, 4/1/28 (a).............................. 400,000
600,000 Massachusetts Water Resource Authority, Series D, 3.80%, 11/1/26 (a)............................. 600,000
9,063,000 Triton Regional School District BAN, 3.50%, 4/12/00.............................................. 9,074,155
------------
13,274,155
------------
MICHIGAN -- 4.7%
1,675,000 Garden City HFA for Garden City Hospital, 3.90%, 9/1/26 (a)...................................... 1,675,000
3,600,000 Grand Rapids Water Supply System, 3.80%, 1/1/20 (a).............................................. 3,600,000
2,600,000 Jackson EDC for Thrifty Leoni Inc. Project, 3.825%, 12/1/14 (a).................................. 2,600,000
1,900,000 Michigan HDA for Fairlane Meadows Harbortown Ltd., 3.975%, 6/1/04 (a)............................ 1,900,000
200,000 Michigan HFA for St. Mary Hosp. of Livonia, 3.90%, 7/1/17 (a).................................... 200,000
2,400,000 Michigan Job Development Authority for Gordon Food Service, 3.85%, 8/1/15 (a).................... 2,400,000
------------
12,375,000
------------
MISSOURI -- .4%
1,000,000 Kansas City IDA Hospital Revenue for Insd. Resh. Health Services System, 3.65%, 10/15/14 (a)..... 1,000,000
------------
MISSISSIPPI -- .8%
2,000,000 Canton IDR for Levi Strauss & Co. Project, 3.90%, 6/1/03 (a)..................................... 2,000,000
------------
NORTH CAROLINA -- 1.0%
2,600,000 Wake County Industrial Facilities & Pollution Control for Carolina Power & Light, Series C,
3.85%, 10/1/15 (a).............................................................................. 2,600,000
------------
NEBRASKA -- .4%
1,000,000 Buffalo County IDR for AgRex Inc. Project, 4.20%, 2/1/15 (a)..................................... 1,000,000
------------
NEW HAMPSHIRE -- 1.6%
4,300,000 Strafford TAN, 3.18%, 12/31/99................................................................... 4,300,102
------------
NEW JERSEY--4.6%
700,000 Camden Improvement Authority Pooled Government Loan Program, 3.75%, 6/1/29 (a)................... 700,000
1,000,000 Essex Improvement Authority, 3.75%, 12/1/25 (a).................................................. 1,000,000
1,100,000 Monmouth Improvement Authority Pooled Government Loan Program, 3.55%, 8/1/16 (a)................. 1,100,000
600,000 New Jersey EDA for 400 Int'l. Dr. Partners, 3.30%, 9/1/05 (a).................................... 600,000
700,000 New Jersey EDA for Bayonne IMTT Docking Revenue Bonds, 3.65%, 12/1/27 (a)........................ 700,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
RESERVE TAX-EXEMPT TRUST--INTERSTATE TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1999 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS (CONTINUED) (NOTE 1)
- ------------ ------------
<S> <C> <C>
NEW JERSEY--4.6% (CONTINUED)
$200,000 New Jersey EDA for Foreign Trade Zone, 3.65%, 12/1/07 (a)........................................ $ 200,000
800,000 New Jersey EDA for Public Service Electric and Gas Co., 3.55%, 9/1/12 (a)........................ 800,000
1,200,000 New Jersey EDA for Volvo of America Corp., 4.07%, 12/1/04 (a).................................... 1,200,000
1,000,000 New Jersey EFA for College of New Jersey, Series A, 3.75%, 7/1/29 (a)............................ 1,000,000
1,000,000 New Jersey Sports Exposition Authority, Series C, 3.85%, 9/1/24 (a).............................. 1,000,000
600,000 New Jersey Turnpike Authority General, Series 91D, 3.65%, 1/1/08 (a)............................. 600,000
200,000 Port Authority NY and NJ, Series 2, 3.75%, 5/1/19 (a)............................................ 200,000
300,000 Port Authority NY and NJ, Series 5, 3.65%, 8/1/24 (a)............................................ 300,000
2,800,000 Vernon School District Temp Notes, Series, B, 3.20%, 12/3/99..................................... 2,800,018
------------
12,200,018
------------
NEW YORK -- 6.8%
2,000,000 Long Island Power Authority, Series 1, 3.85%, 5/1/33 (a)......................................... 2,000,000
2,000,000 New York City Cultural Resources for Soloman B. Guggeheim, 3.70%, 12/1/15 (a).................... 2,000,000
800,000 New York City GOB, Series A4, 3.75%, 8/1/22 (a).................................................. 800,000
1,500,000 New York City GOB, Series A4, 3.80%, 8/1/15 (a).................................................. 1,500,000
1,600,000 New York City GOB, Series E5, 3.70%, 8/1/09 (a).................................................. 1,600,000
3,700,000 New York City GOB, Series E5, 3.70%, 8/1/10 (a).................................................. 3,700,000
450,000 New York City GOB, Series E5, 3.70%, 8/1/15 (a).................................................. 450,000
1,400,000 New York City GOB, Series E6, 3.70%, 8/1/19 (a).................................................. 1,400,000
4,600,000 Tarrytown UFSD TAN, 4.00%, 6/26/00............................................................... 4,611,360
------------
18,061,360
------------
NORTH DAKOTA -- .4%
1,100,000 Minot IDR for Nash Finch Co. Project, 3.70%, 12/1/02 (a)......................................... 1,100,000
------------
OHIO -- 6.3%
425,000 Brunswick IDR for Kinder-Care Learning Centers Project, Series A, 4.00%, 6/1/02 (a).............. 425,000
800,000 Columbus ERD for Electric Systems Revenue Bonds, 3.60%, 9/1/09 (a)............................... 800,000
1,310,000 Cuyahoga IDA for Cleveland Clinic, Series A, 3.90%, 1/1/16 (a)................................... 1,310,000
980,000 Franklin County Bonds for Kinder-Care Project, Series A, 4.00%, 6/1/02 (a)....................... 980,000
2,665,000 Franklin County Bonds for US Health Corp.-A, 3.90%, 12/1/21 (a).................................. 2,665,000
3,150,000 Franklin County HRB for US Health Corp., Series A, 3.90%, 12/1/21 (a)............................ 3,150,000
900,000 Lucas County HFR for Lutheran Homes Society Project, 3.85%, 11/1/19 (a).......................... 900,000
3,000,000 Mahoning HFR for Forum Health Group, Series B, 3.90%, 12/1/27 (a)................................ 3,000,000
900,000 Ohio Air Quality Dev. Auth., Series A, 3.95%, 12/1/15 (a)........................................ 900,000
1,630,000 Ottawa Hospital Facilities Luther Home of Mercy Project, 3.95%, 10/1/17 (a)...................... 1,630,000
1,010,000 Sharonville IDA for Edgecomb Metals Inc., 3.90%, 11/1/09 (a)..................................... 1,010,000
------------
16,770,000
------------
OREGON -- 1.2%
3,100,000 Portland Multifamily Revenue Housing for South Park Block Project A, 3.70%, 12/1/11 (a).......... 3,100,000
------------
PENNSYLVANIA -- 9.3%
1,600,000 Allegheny HDA for Allegheny General Hospital, Series B, 4.85%, 9/1/20 (a)........................ 1,600,000
1,000,000 Allegheny HDA for Allegheny General Hospital, Series B, 4.85%, 9/1/10 (a)........................ 1,000,000
400,000 Allegheny HDA for St Francis Health System, 3.85%, 11/1/27 (a)................................... 400,000
1,200,000 Allegheny IDA for Longwood At Oakmont Project, 3.70 (a).......................................... 1,200,000
700,000 Allegheny University of Pittsburgh Project, Series 85, 3.75%, 7/1/15 (a)......................... 700,000
700,000 Allegheny University of Pittsburgh Project, Series C, 4.05%, 3/1/13 (a).......................... 700,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
RESERVE TAX-EXEMPT TRUST--INTERSTATE TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1999 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS (CONTINUED) (NOTE 1)
- ------------ ------------
<S> <C> <C>
PENNSYLVANIA -- 9.3% (CONTINUED)
$400,000 Bucks IDA for Edgecomb Metals Co., 3.90%, 10/1/09 (a)............................................ $ 400,000
1,264,000 Chartier Valley IDR Bonds for 1133 Penn Ave. Assoc., Series A, 4.00%, 8/1/07 (a)................. 1,264,000
1,425,000 Clarion County Special Development Revenue IDA Bonds for Meritcare Project, Series A, 4.00%,
12/1/12 (a)..................................................................................... 1,425,000
1,400,000 Dallastown Area School District GOB, 3.95%, 2/1/18 (a)........................................... 1,400,000
500,000 Dauphin General Authority Revenue Bonds, 3.95%, 11/1/17 (a)...................................... 500,000
2,200,000 Delaware Valley Finance Authority Rev. Bonds, Series B, 3.80%, 12/1/20 (a)....................... 2,200,000
1,500,000 Emmaus GOB Local Government Revenue Bonds, 3.90%, 12/1/28 (a).................................... 1,500,000
1,285,000 Lehigh IDA for Allentown Airport, 3.95%, 12/1/05 (a)............................................. 1,285,000
855,000 Mercersburg General Purpose Authority, 3.95%, 11/1/27 (a)........................................ 855,000
1,100,000 Northeastern HEF for Wyoming Valley HCF, 3.90%, 1/1/24 (a)....................................... 1,100,000
555,000 Pennsylvania HEFA for Temple University, 3.70%, 10/1/09 (a)...................................... 555,000
675,000 Pennsylvania HEFA for University of Philadelphia, Series C, 3.85%, 1/1/26 (a).................... 675,000
2,340,000 Philadelphia MHR for Harbor View Tower Project, 4.00%, 11/1/27 (a)............................... 2,340,000
2,000,000 Sayre HCF for Cap Financing Project, Series L, 3.90%, 12/1/20 (a)................................ 2,000,000
1,425,000 York General Authority Pooled Financing, Series A, 3.90%, 9/1/26 (a)............................. 1,425,000
200,000 York General Authority Pooled Financing, 3.95%, 9/1/26 (a)....................................... 200,000
------------
24,724,000
------------
PUERTO RICO -- .4%
1,000,000 Puerto Rico Commonwealth Highway & Transportation, Series A, 3.65%, 7/1/28 (a)................... 1,000,000
------------
TENNESSEE -- 2.3%
335,000 Chattanooga IDA for Baylor School Project, 3.95%, 11/1/16 (a).................................... 335,000
5,000,000 Clarksville Public Building Authority Pooled Financing, 3.90%, 7/1/11 (a)........................ 5,000,000
765,000 Franklin HEF for Franklin Health Care Center Inc., 4.15%, 6/1/05 (a)............................. 765,000
------------
6,100,000
------------
TEXAS -- 5.3%
1,000,000 Harris County HFDC for Greater Houston Project, 3.90%, 11/1/25 (a)............................... 1,000,000
1,000,000 Harris County Industrial Development Corp. for Baytank Houston Inc. Project, 3.90%, 2/1/20 (a)... 1,000,000
1,600,000 Midlothian IDC for Box-Crow Cement Co. Project, 3.85%, 12/1/09 (a)............................... 1,600,000
10,500,000 Texas TRAN, Series A, 4.50%, 8/31/00............................................................. 10,560,772
------------
14,160,772
------------
UTAH -- 2.3%
5,975,000 Salt Lake City IDR for Parkview Plaza Project, 3.90%, 12/1/14 (a)................................ 5,975,000
------------
VIRGINIA -- 4.1%
2,040,000 Alexandria IDA for Pooled Loan Project, Series A, 3.90%, 7/1/26 (a).............................. 2,040,000
365,000 Bristol IDA for Healthcare Center Inc., 4.15%, 3/1/10 (a)........................................ 365,000
1,000,000 Capital Region Airport Comm. for Richmond International Airport, 3.90%, 7/1/25 (a)............... 1,000,000
500,000 Hampton MHR for Avalon at Hampton I-A Project, 3.80%, 6/15/26 (a)................................ 500,000
1,000,000 Lynchburg IDA HRB for VHA Mid Atlantic States Inc., 3.95%, 12/1/25 (a)........................... 1,000,000
1,500,000 Newport News MHR for Newport--Oxford Project, 3.95%, 11/1/06 (a)................................. 1,500,000
4,390,000 Norfolk IDA for Children's Project, 3.90%, 6/1/20 (a)............................................ 4,390,000
------------
10,795,000
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
RESERVE TAX-EXEMPT TRUST--INTERSTATE TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 1999 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS (CONTINUED) (NOTE 1)
- ------------ ------------
<S> <C> <C>
WASHINGTON -- 1.0%
$2,700,000 Port of Seattle IDC for Douglas Management Corp., 4.10%, 12/1/05 (a)............................. $ 2,700,000
------------
WISCONSIN -- 1.1%
3,000,000 Green Bay IDA for St. Mary's Holdings, Inc., 4.10%, 11/1/00 (a).................................. 3,000,000
------------
WYOMING -- 1.0%
2,600,000 Sweetwater PCR for Pacificorp Project B, 3.90%, 1/1/14 (a)....................................... 2,600,000
------------
TOTAL INVESTMENTS (COST $270,565,815)................................................... 102.0% 270,565,815
OTHER ASSETS, LESS LIABILITIES.......................................................... (2.0) (5,401,230)
----- ------------
NET ASSETS.............................................................................. 100.0% $265,164,585
===== ============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE, BASED ON 265,164,585 SHARES OF
BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING................................................ $1.00
=====
</TABLE>
- ------------------
(a) The interest rates, as reported on November 30, 1999, are subject to change
periodically. Securities payable on demand are collateralized by bank
letters of credit or other credit agreements.
(b) Securites are collateralized by bank letters of credit or other credit
agreements.
SECURITY TYPE ABBREVIATIONS:
BAN -- Bond Anticipation Notes
COP -- Certificate of Participation
CRA -- Community Redevelopment Agency
EDC -- Economic Development Corporation
EFA -- Economic Finance Authority
ERD -- Energy Research and Development Authority
GOB -- General Obligation Bonds
HCF -- Health Care Facility
HDA -- Housing Development Authority
HEFA -- Health & Education Facilities Authority
HFA -- Housing Finance Authority
HFDC -- Health Facilities Development Corp.
HFR -- Health Facilities Revenue Bonds
HRB -- Hospital Revenue Bonds
IDA -- Industrial Development Authority Revenue Bonds
IDC -- Industrial Development Corporation Revenue Bonds
IDR -- Industrial Development Agency Revenue Bonds
MFHR -- Multi-family Housing Revenue Bonds
MFMR -- Multi-Family Mortgage Revenue Bonds
PCR -- Pollution Control Revenue Bonds
RAW -- Revenue Anticipation Warrants
TAN -- Tax Anticipation Notes
TRAN -- Tax & Revenue Anticipation Notes
UFSD -- Union Free School District
UHSD -- Unified High School District
USD -- Unified School District Bonds
SEE NOTES TO FINANCIAL STATEMENTS.
11
<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.
12
<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) (NOTE 1)
- ----------- ------------------------------------------------------------------------------------------------ ------------
<S> <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.
13
<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)....................................... 3,500,000
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
-----------
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
===== ===========
STATEMENT OF ASSETS AND LIABILITIES--NOVEMBER 30, 1999 (UNAUDITED)
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.
14
<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>
$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).................... 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
===== ===========
STATEMENT OF ASSETS AND LIABILITIES--NOVEMBER 30, 1999 (UNAUDITED)
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.
15
<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 (a)................................... $ 925,000
800,000 Broward MHR for Welleby Apt. Project, Series 1984, 3.65%, 12/1/06 (a)............................ 800,000
400,000 Dade HFAR Rev. Bonds for Miami Children's Hospital, 4.10%, 9/1/25 (a)............................ 400,000
95,000 Dade IDA for Aviation Authority Facilities, Series 84A, 3.75%, 10/1/09 (a)....................... 95,000
900,000 Dade IDA for Dolphin Stadium Project, Series C, 3.80%, 1/1/16 (a)................................ 900,000
400,000 Florida Local Gov Auth for Lake Wales Medical Center, Series A, 4.05%, 3/1/15 (a)................ 400,000
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
------------
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
------------
</TABLE>
16
<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 (CONTINUED) (NOTE 1)
- ----------- ------------------------------------------------------------------------------------------ ------------
<S> <C> <C>
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
------------
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.
17
<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>
$ 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
===== ===========
STATEMENT OF ASSETS AND LIABILITIES--NOVEMBER 30, 1999 (UNAUDITED)
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.
18
<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>
$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
===== ==========
STATEMENT OF ASSETS AND LIABILITIES--NOVEMBER 30, 1999 (UNAUDITED)
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.
19
<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>
$ 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
300,00 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
3,700,00 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
1,000,00 New Jersey EFA for College of NJ, Series A, 3.75%, 7/1/29 (a)...................................... 1,000,000
1,200,00 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 Somrset 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 INVESMENTS (COST $35,519,930)....................................................... 88.6% 35,519,300
OTHER ASSETS, LESS LIABILITIES............................................................ 11.4 4,561,10
NET ASSETS................................................................................ 100.0% $40,081,031
===== ===========
STATEMENT OF ASSETS AND LIABILITIES--NOVEMBER 30, 1999 (UNAUDITED)
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 payable 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.
20
<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>
$ 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
===== ===========
STATEMENT OF ASSETS AND LIABILITIES--NOVEMBER 30, 1999 (UNAUDITED)
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.
21
<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>
$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
===== ===========
STATEMENT OF ASSETS AND LIABILITIES--NOVEMBER 30, 1999
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>
- ------------------
(a) The interest rates, as reported on November 30, 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.
22
<PAGE>
SECURITY TYPE ABBREVIATIONS
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
SEE NOTES TO FINANCIAL STATEMENTS
23
<PAGE>
THE RESERVE FUND
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
U.S. U.S.
PRIMARY GOVERNMENT TREASURY
FUND FUND FUND
------------ ----------- -----------
<S> <C> <C> <C>
INTEREST INCOME (Note 1)..................................................... $ 89,696,064 $19,238,089 $ 7,557,123
------------ ----------- -----------
EXPENSES (Note 2)
Management fee............................................................. 11,759,709 2,652,920 --
Comprehensive fee.......................................................... 4,995,594 1,065,920 1,536,148
Other...................................................................... 674 674 674
------------ ----------- -----------
Total Expenses before waiver............................................. 16,755,977 3,719,514 1,536,822
Less: expenses waived (Note 2)........................................... -- -- (227,097)
------------ ----------- -----------
Net Expenses............................................................. 16,755,977 3,719,514 1,309,725
------------ ----------- -----------
NET INVESTMENT INCOME, representing net increase in
Net Assets from Investment Operations...................................... $ 72,940,087 $15,518,575 $ 6,247,398
============ =========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
RESERVE NEW YORK TAX-EXEMPT TRUST--INTERSTATE TAX-EXEMPT TRUST
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999 (UNAUDITED)
<TABLE>
<S> <C>
INTEREST INCOME (Note 1).................................................................................... $4,698,726
----------
EXPENSES (Note 2)
Management fee............................................................................................ 1,117,191
Distribution assistance................................................................................... 279,298
Tax expense............................................................................................... 674
----------
Total Expenses.......................................................................................... 1,397,163
----------
NET INVESTMENT INCOME,
representing net increase in Net Assets from Investment Operations........................................ $3,301,563
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
RESERVE NEW YORK TAX-EXEMPT TRUST--RESERVE TAX-EXEMPT TRUST
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
RESERVE NEW YORK
TAX-EXEMPT TRUST RESERVE TAX-EXEMPT TRUST
---------------- -------------------------------------------------------------
NEW YORK CALIFORNIA II CONNECTICUT FLORIDA MASSACHUSETTS
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.
26
<PAGE>
THE RESERVE FUND
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
<TABLE>
<CAPTION>
PRIMARY FUND U.S. GOVERNMENT FUND
------------------------------------ -----------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
NOVEMBER 30, YEAR ENDED NOVEMBER 30, YEAR ENDED
1999 MAY 31, 1999 1999 MAY 31, 1999
--------------- ---------------- --------------- ---------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS FROM
INVESTMENT OPERATIONS:
Net investment income........ $ 72,940,087 $ 134,365,969 $ 15,518,576 $ 29,798,286
-------------- ---------------- -------------- ---------------
DIVIDENDS PAID TO SHAREHOLDERS
FROM:
Net investment income
(Note 1)................... (72,940,087) (134,365,969) (15,518,576) (29,798,286)
-------------- ---------------- -------------- ---------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00
per share):
Net proceeds from sale of
shares..................... 8,680,401,351 16,224,681,639 1,771,942,718 3,450,382,930
Dividends reinvested......... 72,940,086 134,365,969 15,518,576 29,798,286
Cost of shares redeemed...... (8,469,901,856) (15,736,604,580) (1,781,091,243) (3,416,454,910)
-------------- ---------------- -------------- ---------------
Net increase derived from
capital share transactions and
from investment operations..... 283,439,581 622,443,028 6,370,051 63,726,306
NET ASSETS:
Beginning of period............ 3,330,063,091 2,707,620,063 716,193,928 652,467,622
-------------- ---------------- -------------- ---------------
End of period.................. $3,613,502,672 $ 3,330,063,091 $ 722,563,979 $ 716,193,928
============== ================ ============== ===============
<CAPTION>
U.S. TREASURY FUND
------------------------------------
SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, 1999 MAY 31, 1999
----------------- ---------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM
INVESTMENT OPERATIONS:
Net investment income........ $ 6,247,399 $ 11,017,000
---------------- ---------------
DIVIDENDS PAID TO SHAREHOLDERS
FROM:
Net investment income (Note
1)......................... (6,247,399) (11,017,000)
---------------- ---------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00
per share):
Net proceeds from sale of
shares..................... 624,360,658 1,315,560,422
Dividends reinvested......... 6,247,399 11,017,000
Cost of shares redeemed...... (603,852,433) (1,279,635,650)
---------------- ---------------
Net increase derived from
capital share transactions and
from investment operations..... 26,755,624 46,941,772
NET ASSETS:
Beginning of period............ 286,702,065 239,760,293
---------------- ---------------
End of period.................. $ 313,457,689 $ 286,702,065
================ ===============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE>
RESERVE TAX-EXEMPT TRUST--INTERSTATE TAX-EXEMPT FUND
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
NOVEMBER 30, YEAR ENDED
1999 MAY 31, 1999
------------ --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income............................................................... $ 3,301,563 $ 8,590,706
------------ --------------
DIVIDENDS PAID TO SHAREHOLDERS FROM:
Net investment income (Note 1)...................................................... (3,301,563) (8,590,706)
------------ --------------
FROM CAPITAL SHARE TRANSACTIONS (at net asset value of $1.00 per share):
Net proceeds from sale of shares.................................................... 633,562,934 1,500,543,145
Dividends reinvested................................................................ 3,301,563 8,590,706
Cost of shares redeemed............................................................. (664,328,830) (1,569,373,790)
------------ --------------
Net decrease in net assets derived from capital share transactions and
from Investment Operations............................................................ (27,464,333) (60,239,939)
NET ASSETS:
Beginning of period................................................................... 292,628,918 352,868,857
------------ --------------
End of period......................................................................... $265,164,585 $ 292,628,918
============ ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
RESERVE NEW YORK TAX-EXEMPT TRUST
-------------------------------------
NEW YORK FUND
-------------------------------------
SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, 1999 MAY 31, 1999
----------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM
INVESTMENT OPERATIONS:
Net investment income...... $ 1,992,130 $ 4,121,961
------------- ----------------
DIVIDENDS PAID TO
SHAREHOLDERS FROM:
Net investment income
(Note 1)................. (1,992,130) (4,121,961)
------------- ----------------
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
Dividends reinvested....... 1,992,130 4,121,961
Cost of shares redeemed.... (335,735,563) (717,162,559)
------------- ----------------
Net increase (decrease) in net
assets derived from capital
share transactions and from
investment operations........ (8,292,504) 14,769,119
NET ASSETS:
Beginning of period.......... 185,981,358 171,212,239
------------- ----------------
End of period................ $ 77,688,854 $ 185,981,358
============= ================
<CAPTION>
RESERVE TAX-EXEMPT TRUST
------------------------------------------------------
CALIFORNIA II FUND
------------------
FOR THE PERIOD CONNECTICUT FUND
JULY 2, 1999 ---------------------------------
(COMMENCEMENT OF SIX MONTHS YEAR
OPERATIONS) TO ENDED ENDED
NOVEMBER 30, 1999 NOVEMBER 30, 1999 MAY 31, 1999
------------------ ----------------- ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM
INVESTMENT OPERATIONS:
Net investment income...... $ 407,012 $ 524,392 $ 1,006,967
--------------- ------------- ------------
DIVIDENDS PAID TO
SHAREHOLDERS FROM:
Net investment income
(Note 1)................. (407,012) (524,392) (1,006,967)
--------------- ------------- ------------
FROM CAPITAL SHARE
TRANSACTIONS (at net asset
value of $1.00 per share):
Net proceeds from sale of
shares................... 183,550,732 44,670,085 169,702,015
Dividends reinvested....... 407,012 524,392 1,006,967
Cost of shares redeemed.... (127,319,887) (48,884,757) (152,056,981)
--------------- ------------- ------------
Net increase (decrease) in net
assets derived from capital
share transactions and from
investment operations........ 56,637,857 (3,690,280) 18,652,001
NET ASSETS:
Beginning of period.......... -- 55,438,678 36,786,677
--------------- ------------- ------------
End of period................ $ 56,637,857 $ 51,748,398 $ 55,438,678
=============== ============= ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<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
---------------------------------
PERIOD ENDED
SIX MONTHS ENDED MAY 31,
NOVEMBER 30, 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
================ ============
</TABLE>
- ------------------
(a) For the period December 14, 1998 (Commencement of Operations) to May 31,
1999.
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS--(UNAUDITED) (CONTINUED)
<TABLE>
<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>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE>
THE RESERVE FUND (THE "FUND")
PRIMARY, U.S. GOVERNMENT AND U.S. TREASURY FUNDS (THE "FUNDS")
RESERVE NEW YORK TAX-EXEMPT TRUST ("NY TRUST")
RESERVE TAX-EXEMPT TRUST (CALIFORNIA II, CONNECTICUT, FLORIDA, INTERSTATE,
MASSACHUSETTS, NEW JERSEY, OHIO AND PENNSYLVANIA FUNDS) ("TRUST")
(THE NY TRUST AND TRUST ARE COLLECTIVELY REFERRED TO AS "TRUSTS")
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) SIGNIFICANT ACCOUNTING POLICIES:
The Funds/Trusts are registered under the Investment Company Act of 1940
as non-diversified, open-end Management investment companies. The policies
summarized below are consistently followed in the preparation of its
financial statements in conformity with generally accepted accounting
principles.
A. The Fund and Trusts' authorized shares of beneficial interest are
unlimited. The Funds' shares are divided into four series: Primary, U.S.
Government, U.S. Treasury and the Strategist Money-Market. The Trusts'
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 Primary, U.S. Government, U.S. Treasury Funds of the
Reserve Fund; Connecticut, Florida, Interstate, Massachusetts, Michigan,
New Jersey, Ohio, and Pennsylvania of Reserve Tax-Exempt Trust and to the
New York Fund of Reserve New York Tax-Exempt Trust. These financial
statements and notes apply to all funds mentioned above except Strategist
Money-Market Fund and California II 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. 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 of payment of principal
amount of the instruments; and for variable rate instruments the longer of
(1) above or (2) the period remaining until the instrument's next rate
adjustment, for purpose 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. Security transactions are recorded on a trade date basis; interest
income is accrued daily and security premium or discount is amortized or
accreted daily. Net investment income is distributed to shareholders daily
and automatically reinvested in additional Fund shares.
E. Funds may enter into repurchase agreements with financial institutions
and securities dealers who are deemed creditworthy pursuant to guidelines
established by the Funds' Board of Trustees. The Investment Adviser will
follow procedures intended to provide that all repurchase agreements are
at least 100% collateralized as to principal and interest. The Funds'
custodian holds the securities subject to repurchase agreements.
(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 Fund's Investment Adviser subject to the policies adopted by the Board
of Trustees. Under the Agreement, RMCI is responsible for the supervision
of the day-to-day operations, 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, except for U.S.
Treasury Fund and Michigan, RMCI received a management fee 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 of both
Primary Fund and U.S. Government Fund. Effective June 26, 1999, the
Funds/Trusts 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 U.S. Treasury Fund and Michigan, since
inception, has been subject to a comprehensive management fee. The
Agreement provides that RMCI will furnish continuous investment advisory
and management services to the Funds.
32
<PAGE>
THE RESERVE FUND (THE "FUND")
PRIMARY, U.S. GOVERNMENT AND U.S. TREASURY FUNDS (THE "FUNDS")
RESERVE NEW YORK TAX-EXEMPT TRUST ("NY TRUST")
RESERVE TAX-EXEMPT TRUST (CALIFORNIA II, CONNECTICUT, FLORIDA, INTERSTATE,
MASSACHUSETTS, NEW JERSEY, OHIO AND PENNSYLVANIA FUNDS) ("TRUST")
(THE NY TRUST AND TRUST ARE COLLECTIVELY REFERRED TO AS "TRUSTS")
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
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.
During the six months ending November 30, 1999, RMCI voluntarily waived
$179,459, its Management fee for the U.S. Treasury Fund.
DISTRIBUTION ASSISTANCE:
Pursuant to a Plan of Distribution, each Fund may make assistance
payments, at a rate of .20% per annum of the average net asset value, to
firms for distribution assistance and administrative services provided to
Fund shareholders. The Plan requires RMCI to pay an equivalent amount from
its own resources. RMCI also has voluntarily agreed to reduce the payments
made by U.S. Treasury Fund to an annual rate of .17%. During the six
months ended November 30, 1999, RMCI voluntarily reimbursed the Fund a
total of $47,638 pursuant to the undertaking.
(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 at
the dates of the financial statements and the reported amounts of income
and expenses during the reporting periods. Actual results could differ
from these estimates.
(4) INVESTMENT CONCENTRATION:
The Trusts invest substantially all of their assets in portfolios for
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:
Interstate 82% Massachusetts 69%
New York 97% Michigan 100%
California II 90% New Jersey 78%
Connecticut 79% Ohio 100%
Florida 97% Pennsylvania 100%
33
<PAGE>
THE RESERVE FUND (THE "FUND")
PRIMARY, U.S. GOVERNMENT AND U.S. TREASURY FUNDS (THE "FUNDS")
RESERVE NEW YORK TAX-EXEMPT TRUST ("NY TRUST")
RESERVE TAX-EXEMPT TRUST (CALIFORNIA II, CONNECTICUT, FLORIDA, INTERSTATE,
MASSACHUSETTS, NEW JERSEY, OHIO AND PENNSYLVANIA FUNDS) ("TRUST")
(THE NY TRUST AND TRUST ARE COLLECTIVELY REFERRED TO AS "TRUSTS")
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
(5) COMPOSITION OF NET ASSETS:
At November 30, 1999, the composition of each Fund's net assets was as
follows:
<TABLE>
<CAPTION>
PRIMARY U.S. GOVERNMENT U.S. TREASURY INTERSTATE
-------------- --------------- ------------- ------------
<S> <C> <C> <C> <C>
Par Value............................ $ 3,613,503 $ 722,564 $ 313,458 $ 265,165
Paid-in-Capital...................... 3,609,889,169 721,841,415 313,144,231 264,899,420
-------------- ------------- ------------- ------------
Net Assets........................... $3,613,502,672 $ 722,563,979 $ 313,457,689 $265,164,585
============== ============= ============= ============
<CAPTION>
NEW YORK CALIFORNIA II CONNECTICUT FLORIDA
-------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
Par Value............................ $ 177,689 $ 56,638 $ 51,748 $ 20,027
Paid-in-Capital...................... 177,511,165 56,581,219 51,696,650 20,007,452
-------------- ------------- ------------- ------------
Net Assets........................... $ 177,688,854 $ 56,637,857 $ 51,748,398 $ 20,027,479
============== ============= ============= ============
<CAPTION>
MASSACHUSETTS MICHIGAN NEW JERSEY OHIO PENNSYLVANIA
-------------- ------------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Par Value............................ $ 10,682 $ 2,134 $ 40,081 $ 2,348 $ 15,718
Paid-in-Capital...................... 10,671,400 2,132,297 40,040,950 2,345,936 15,702,519
-------------- ------------- ------------- ------------ ------------
Net Assets........................... $ 10,682,082 $ 2,134,431 $ 40,081,031 $ 2,348,284 $ 15,718,237
============== ============= ============= ============ ============
</TABLE>
34
<PAGE>
THE RESERVE FUND (THE "FUND")
PRIMARY, U.S. GOVERNMENT AND U.S. TREASURY FUNDS (THE "FUNDS")
RESERVE NEW YORK TAX-EXEMPT TRUST ("NY TRUST")
RESERVE TAX-EXEMPT TRUST (CALIFORNIA II, CONNECTICUT, FLORIDA, INTERSTATE,
MASSACHUSETTS, NEW JERSEY, OHIO AND PENNSYLVANIA FUNDS) ("TRUST")
(THE NY TRUST AND TRUST ARE COLLECTIVELY REFERRED TO AS "TRUSTS")
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
(6) FINANCIAL HIGHLIGHTS:
Contained below is per share operating performance data for a share of
beneficial interest outstanding for each of the periods as indicated.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED FOR FISCAL YEARS ENDED MAY 31,
NOVEMBER 30, --------------------------------------------------------
1999 1999 1998 1997 1996 1995
------------ -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
PRIMARY FUND
Net asset value beginning of period............ $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
-------- -------- -------- -------- -------- --------
Net investment income from investment
operations................................... .0219 .0438 .0483 .0457 .0490 .0450
Less dividends from net investment income...... (.0219) (.0438) (.0483) (.0457) (.0490) (.0450)
-------- -------- -------- -------- -------- --------
Net asset value at end of period............... $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
======== ======== ======== ======== ======== ========
Total Return................................... 4.38%(b) 4.38% 4.83% 4.57% 4.90% 4.50%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (millions)............ $3,613.5 $3,330.1 $2,707.6 $2,104.1 $1,664.1 $1,602.5
Ratio of expenses to average net assets........ 1.00%(b) 1.00% .94% .98% .98% .97%
Ratio of net investment income to average net
assets....................................... 4.34%(b) 4.26% 4.71% 4.47% 4.79% 4.42%
U.S. GOVERNMENT FUND
Net asset value beginning of period............ $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
-------- -------- -------- -------- -------- --------
Net investment income from investment
operations................................... .0210 .0426 .0471 .0449 .0484 .0441
Less dividends from net investment income...... (.0210) (.0426) (.0471) (.0449) (.0484) (.0441)
-------- -------- -------- -------- -------- --------
Net asset value at end of period............... $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
======== ======== ======== ======== ======== ========
Total Return................................... 4.20%(b) 4.26% 4.71% 4.49% 4.84% 4.41%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (millions)............ $ 722.6 $ 716.2 $ 652.5 $ 611.8 $ 568.5 $ 721.8
Ratio of expenses to average net assets........ 1.00%(b) 1.00% .99% .99% 1.00% .99%
Ratio of net investment income to average net
assets....................................... 4.16%(b) 4.16% 4.63% 4.40% 4.75% 4.31%
U.S. TREASURY FUND
Net asset value beginning of period............ $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
Net investment income from investment
operations................................... .0199 .0410 .0456 .0443 .0466 .0456
Less dividends from net investment income...... (.0199) (.0410) (.0456) (.0443) (.0466) (.0456)
-------- -------- -------- -------- -------- --------
Net asset value at end of period............... $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
======== ======== ======== ======== ======== ========
Total Return................................... 3.97%(b) 4.10% 4.56% 4.43% 4.66% 4.56%
</TABLE>
35
<PAGE>
THE RESERVE FUND (THE "FUND")
PRIMARY, U.S. GOVERNMENT AND U.S. TREASURY FUNDS (THE "FUNDS")
RESERVE NEW YORK TAX-EXEMPT TRUST ("NY TRUST")
RESERVE TAX-EXEMPT TRUST (CALIFORNIA II, CONNECTICUT, FLORIDA, INTERSTATE,
MASSACHUSETTS, NEW JERSEY, OHIO AND PENNSYLVANIA FUNDS) ("TRUST")
(THE NY TRUST AND TRUST ARE COLLECTIVELY REFERRED TO AS "TRUSTS")
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
(6) FINANCIAL HIGHLIGHTS:--(CONTINUED)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED FOR FISCAL YEARS ENDED MAY 31,
NOVEMBER 30, --------------------------------------------------------
1999 1999 1998 1997 1996 1995
------------ -------- -------- -------- -------- --------
RATIOS/SUPPLEMENTAL DATA
<S> <C> <C> <C> <C> <C> <C> <C>
Net assets end of period (millions)............ $ 313.5 $ 286.7 $ 239.8 $ 169.2 $ 142.8 $ 95.2
Ratio of expenses to average net assets (c).... 1.00%(b) 1.00% .97% .97% .99% .93%
Ratio of net investment income to average net
assets (c)................................... 4.08%(b) 3.76% 4.26% 4.13% 4.33% 4.44%
INTERSTATE TAX-EXEMPT FUND
Net asset value, beginning of period........... $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
-------- -------- -------- -------- -------- --------
Net investment income from investment
operations................................... .0119 .0245 .0279 .0256 .0285 .0265
Less dividends from net investment income...... (.0119) (.0245) (.0279) (.0256) (.0285) (.0265)
-------- -------- -------- -------- -------- --------
Net asset value, end of period................. $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
======== ======== ======== ======== ======== ========
Total Return................................... 2.37%(b) 2.45% 2.79% 2.56% 2.85% 2.65%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (millions)............ $ 265.2 $ 292.6 $ 352.9 $ 306.2 $ 292.1 $ 315.2
Ratio of expenses to average net assets........ 1.00%(b) 1.00% .97% 1.04% 1.04% 1.00%
Ratio of net investment income to average net
assets....................................... 2.36%(b) 2.38% 2.75% 2.52% 2.80% 2.59%
NEW YORK TAX-EXEMPT FUND
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%
RATIOS/SUPPLEMENTAL DATA
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%
</TABLE>
36
<PAGE>
THE RESERVE FUND (THE "FUND")
PRIMARY, U.S. GOVERNMENT AND U.S. TREASURY FUNDS (THE "FUNDS")
RESERVE NEW YORK TAX-EXEMPT TRUST ("NY TRUST")
RESERVE TAX-EXEMPT TRUST (CALIFORNIA II, CONNECTICUT, FLORIDA, INTERSTATE,
MASSACHUSETTS, NEW JERSEY, OHIO AND PENNSYLVANIA FUNDS) ("TRUST")
(THE NY TRUST AND TRUST ARE COLLECTIVELY REFERRED TO AS "TRUSTS")
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
FOR THE PERIOD
JULY 2, 1999
(COMMENCEMENT
OF OPERATIONS) TO
NOVEMBER 30,
1999
-----------------
<S> <C>
CALIFORNIA II TAX-EXEMPT FUND
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)
RATIOS/SUPPLEMENTAL DATA
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)
<CAPTION>
SIX MONTHS
ENDING FISCAL YEARS ENDED MAY 31,
NOVEMBER 30, ---------------------------------------------------
1999 1999 1998 1997 1996 1995
----------------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
CONNECTICUT TAX-EXEMPT FUND
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%
RATIOS/SUPPLEMENTAL DATA
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)
</TABLE>
37
<PAGE>
THE RESERVE FUND (THE "FUND")
PRIMARY, U.S. GOVERNMENT AND U.S. TREASURY FUNDS (THE "FUNDS")
RESERVE NEW YORK TAX-EXEMPT TRUST ("NY TRUST")
RESERVE TAX-EXEMPT TRUST (CALIFORNIA II, CONNECTICUT, FLORIDA, INTERSTATE,
MASSACHUSETTS, NEW JERSEY, OHIO AND PENNSYLVANIA FUNDS) ("TRUST")
(THE NY TRUST AND TRUST ARE COLLECTIVELY REFERRED TO AS "TRUSTS")
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
<TABLE>
<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)
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED FISCAL YEAR 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%(d)
Ratio of net investment income to
average net assets.................... 2.17%(b) 2.17% 2.78% 2.54%(c) 2.66%(c) 2.71%(d)
</TABLE>
38
<PAGE>
THE RESERVE FUND (THE "FUND")
PRIMARY, U.S. GOVERNMENT AND U.S. TREASURY FUNDS (THE "FUNDS")
RESERVE NEW YORK TAX-EXEMPT TRUST ("NY TRUST")
RESERVE TAX-EXEMPT TRUST (CALIFORNIA II, CONNECTICUT, FLORIDA, INTERSTATE,
MASSACHUSETTS, NEW JERSEY, OHIO AND PENNSYLVANIA FUNDS) ("TRUST")
(THE NY TRUST AND TRUST ARE COLLECTIVELY REFERRED TO AS "TRUSTS")
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
SIX MONTHS PERIOD
ENDED 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)
RATIOS/SUPPLEMENTAL DATA
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)
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED FISCAL YEAR 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)
RATIOS/SUPPLEMENTAL DATA
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>
39
<PAGE>
THE RESERVE FUND (THE "FUND")
PRIMARY, U.S. GOVERNMENT AND U.S. TREASURY FUNDS (THE "FUNDS")
RESERVE NEW YORK TAX-EXEMPT TRUST ("NY TRUST")
RESERVE TAX-EXEMPT TRUST (CALIFORNIA II, CONNECTICUT, FLORIDA, INTERSTATE,
MASSACHUSETTS, NEW JERSEY, OHIO AND PENNSYLVANIA FUNDS) ("TRUST")
(THE NY TRUST AND TRUST ARE COLLECTIVELY REFERRED TO AS "TRUSTS")
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
SIX MONTHS FISCAL YEAR 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)
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------------------
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)
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD 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)
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------------------
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:
40
<PAGE>
THE RESERVE FUND (THE "FUND")
PRIMARY, U.S. GOVERNMENT AND U.S. TREASURY FUNDS (THE "FUNDS")
RESERVE NEW YORK TAX-EXEMPT TRUST ("NY TRUST")
RESERVE TAX-EXEMPT TRUST (CALIFORNIA II, CONNECTICUT, FLORIDA, INTERSTATE,
MASSACHUSETTS, NEW JERSEY, OHIO AND PENNSYLVANIA FUNDS) ("TRUST")
(THE NY TRUST AND TRUST ARE COLLECTIVELY REFERRED TO AS "TRUSTS")
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
NET
EXPENSE INVESTMENT
FUND FISCAL YEAR RATIO INCOME
- -------------- ----------- ------- ----------
<S> <C> <C> <C>
U.S. Treasury 11/99(h) .82% 3.93%
1999 .77% 3.99%
1998 .77% 4.46%
1997 .77% 4.33%
1996 .79% 4.53%
1995 .68% 4.64%
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%
</TABLE>
(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.
(h) From June 1, 1999 to November 30, 1999.
41
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<PAGE>
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