<PAGE> 1
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Report of Independent Accountants........ 2
Management's Discussion of Fund
Performance............................ 3
Financial Statements..................... 10
</TABLE>
Investors are advised to read and retain
this Prospectus for future reference.
[THE RESERVE FUNDS LOGO]
FOUNDERS OF
"AMERICA'S FIRST
MONEY FUND"
810 Seventh Avenue, New York, NY 10019-5868
GENERAL INFORMATION AND 24 HOUR YIELD AND BALANCE INFORMATION
800-637-1700
Distribution -- Resrv Partners, Inc.
RPES/ANL 7/96
[THE RESERVE FUNDS LOGO]
FOUNDERS OF
"AMERICA'S FIRST
MONEY FUND"
-------------------------------------------------------------------------
ANNUAL REPORT
-------------------------------------------------------------------------
RESERVE PRIVATE EQUITY SERIES
FOR THE YEAR ENDED
MAY 31, 1996
<PAGE> 2
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and the Board of Trustees of The Reserve Private Equity
Series:
We have audited the accompanying statements of assets and liabilities of The
Reserve Private Equity Series (comprising, respectively, Reserve Blue Chip
Growth Fund, Reserve Emerging Growth Fund, Reserve Growth and Income Fund,
Reserve Informed Investors Growth Fund, Reserve International Equity Fund,
Reserve Large-Cap Value Fund, Reserve Mid-Cap Growth Fund, and Reserve North
American Growth Fund) (collectively the "Trust"), including the schedules of
portfolio investments, as of May 31, 1996, and the related statements of
operations for the period presented, and the statements of changes in net assets
and the financial highlights for each period presented. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of May
31, 1996 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the series constituting The Reserve Private Equity Series as of May 31,
1996, the results of their operations, the changes in their net assets, and
their financial highlights for the periods referred to above, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
June 28, 1996
2
<PAGE> 3
RESERVE BLUE CHIP GROWTH FUND
<TABLE>
<CAPTION>
MEASUREMENT PERIOD BLUE CHIP
(FISCAL YEAR COVERED) GROWTH S&P 500
<S> <C> <C>
10/28/94 10000 10000
05/31/96 14950 14120
</TABLE>
The performance of Reserve Blue Chip Growth Fund reflects the maximum
4.5% sales load.
The chart above reflects the performance of the Reserve Blue
Chip Growth Fund class A shares. The performance of the Reserve
Blue Chip Growth Fund class D shares will be greater or less
than the line shown based on the differences in original share
inception dates, fees, and sales charges.
Past performance is not indicative of future performance.
To the Shareholders of the Reserve Blue Chip Growth Fund:
A year ago we looked for higher stock prices against a background of rising
corporate profits, an accommodative Federal Reserve, modest economic growth and
little inflation which proved to be correct. While the economy has been stronger
than expected in the first half of 1996, leading to sharply higher bond yields,
we continue to look for moderate growth later this year and as a result believe
interest rates will be lower by year end.
Given our belief that earnings growth over the intermediate to long term
time horizon is moderate from the strong gains of recent years, we have been
emphasizing companies with relatively consistent and highly visible earnings
growth. We are continuing to focus investments in the following areas: consumer
non-durables, health care, and the financial sector. While we also like
technology stocks, some companies will see varying degrees of moderation in
earnings growth, while others will continue to experience strong results.
In summary, we all recognize the high valuations at which the market is
currently selling; so more than ever, stock selection will be the key to
superior performance.
CHARLES V. MOORE, PRESIDENT, TRAINER, WORTHAM & COMPANY, INC., SUB-ADVISER
3
<PAGE> 4
RESERVE EMERGING GROWTH FUND
<TABLE>
<CAPTION>
MEASUREMENT PERIOD EMERGING
(FISCAL YEAR COVERED) GROWTH S&P 500
<S> <C> <C>
11/14/94 10000 10000
05/31/96 19300 14360
</TABLE>
The performance of Reserve Emerging Growth Fund reflects the maximum
4.5% sales load.
The chart above reflects the performance of the Reserve Emerging
Growth Fund class A shares. The performance of the Reserve
Emerging Growth Fund class D shares will be greater or less than
the line shown based on the differences in original share
inception dates, fees, and sales charges.
Past performance is not indicative of future performance.
To the Shareholders of the Reserve Emerging Growth Fund:
The Fund's performance for the year ended May 31, 1996, as well as from its
inception on November 14, 1994 through May 31, 1996, has been outstanding. Our
Fund ranks among the very highest in its peer group as well as among other
mutual funds. During most of this period, we have experienced a positive
environment for stocks overall, but particularly for smaller companies with
above average growth rates. Our strategy in periods like the recent correction,
is to use price weakness as an opportunity to establish commitments to companies
with clear and visible growth prospects at somewhat distressed valuations.
Looking ahead, we are confident that the environment for our type of investments
continues to be excellent as major secular changes are occurring in
telecommunications, health care and technology that provide significant growth
paths for smaller companies who have a clear focus and a sound business plan.
EDWIN G. VROOM, PRESIDENT, ROANOKE ASSET MANAGEMENT, SUB-ADVISER
4
<PAGE> 5
RESERVE GROWTH AND INCOME FUND
<TABLE>
<CAPTION>
MEASUREMENT PERIOD GROWTH AND
(FISCAL YEAR COVERED) INCOME S&P 500
<S> <C> <C>
01/02/96 10000 10000
05/31/96 9710 10780
</TABLE>
The performance of Reserve Growth and Income Fund reflects the maximum
4.5% sales load.
The chart above reflects the performance of the Reserve Growth
and Income Fund class A shares. The performance of the Reserve
Growth and Income Fund class D shares will be greater or less
than the line shown based on the differences in original share
inception dates, fees, and sales charges.
Past performance is not predictive of future performance.
To the Shareholders of the Reserve Growth and Income Fund:
The Fund has just completed an abbreviated year ending May 31, 1996. The
return for the abbreviated period was 1.7%. During the same time period, the S&P
500 appreciated 7.8%. The 30-year Treasury Bond declined 13.1% over the period,
as rates rose from 5.95% to 7.05%.
The Fund's performance reflects these diverging trends, as gains in the
growth portion of the portfolio were offset by declines in our income producing
positions. The largest industry holding in the Fund is Utilities, representing
15.5% of net assets, followed by Banks at 5.4%.
Currently, our models reflect that the valuations in most sectors are
extremely high and that the market needs to digest or correct current excesses
so that we can become less defensive. Looking ahead, we see the current
overvaluation being resolved, and interest rates backing off from the 7% level.
This should set the stage for the next advance in the market as it benefits from
both declining interest rates and improved corporate profits. The Fund is well
positioned to benefit from a decline in rates; moreover, our high cash position
provides us with the opportunity to purchase additional growth-oriented
securities that have steady and predictable growth potential at reasonable
valuations.
RAYMOND C. BAKER, JR., PORTFOLIO MANAGER, KENNETH J. GERBINO AND COMPANY,
SUB-ADVISER
5
<PAGE> 6
RESERVE INFORMED INVESTORS GROWTH FUND
<TABLE>
<CAPTION>
MEASUREMENT PERIOD INFORMED
(FISCAL YEAR COVERED) INVESTORS S&P 500
<S> <C> <C>
12/28/94 10000 10000
05/31/96 14860 14520
</TABLE>
The performance of Reserve Informed Investors Growth Fund reflects the
maximum 4.5% sales load.
The chart above reflects the performance of the Reserve Informed
Investors Growth Fund class A shares. The performance of the
Reserve Informed Investors Growth Fund class D shares will be
greater or less than the line shown based on the differences in
original share inception dates, fees, and sales charges.
Past performance is not predictive of future performance.
To the Shareholders of the Reserve Informed Investors Fund:
A significant weighting in the broadly-defined technology sector of the
market materially affected the Fund's performance in the most recently completed
fiscal year. Market conditions rewarded the Fund's concentration in technology
stocks during part of the fiscal year, while exerting downward pressure at other
times. Despite an erratic and, at times, reason-defying market action, the
Sub-Adviser held steadfast to the Fund's stated informed investor strategy and
analytical techniques. Furthermore, no changes are in any way contemplated. The
longer-term performance record stands as a testament to the eminent success of
the Fund's investment approach.
THOMAS H. FITZGERALD, JR., PRESIDENT, T.H. FITZGERALD & CO., SUB-ADVISER
6
<PAGE> 7
RESERVE INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
INTERNA-
MEASUREMENT PERIOD TIONAL EQ-
(FISCAL YEAR COVERED) UITY EAFE
<S> <C> <C>
07/13/95 10000 10000
05/31/96 10750 10530
</TABLE>
The performance of Reserve International Equity Fund reflects the
maximum 4.5% sales load.
The chart above reflects the performance of the Reserve
International Equity Fund class A shares. The performance of the
Reserve International Equity Fund class D shares will be greater
or less than the line shown based on the differences in original
share inception dates, fees, and sales charges.
Past performance is not predictive of future performance.
To the Shareholders of the Reserve International Equity Fund:
The Reserve International Equity Fund started in mid-1995, which was a
relatively good and tranquil time to start an international portfolio. The
European markets were in the early stages of resuming their bull runs while the
Far East markets were recovering from their 1994 declines.
Our portfolios are structured by combining a top-down country weighting
process with a bottom-up individual company selection procedure. We emphasize
economies which have the best prospects for growth. We then focus on quality,
unique companies with high visibility growth characteristics. All our
international portfolios, including the Reserve International Equity Fund, have
their investments split between the Far East and Europe, with a minor position
in Latin America. We continue to believe that the strongest economic growth will
come from the smaller economies of the Far East, and we have allocated a
significant percentage of the Fund's investments to these "tiger" economies.
Europe is a developed region; therefore, good portfolio gains will come
primarily from having superior stock picks, which we have been doing
successfully for years. We expect 1996 to be a good year for the Fund, since it
is well positioned to continue the strong advance it has already experienced
this year.
NICHOLAS REITCHBACH, SENIOR VICE PRESIDENT, PINNACLE ASSOCIATES LTD.,
SUB-ADVISER
7
<PAGE> 8
RESERVE LARGE-CAP VALUE FUND
<TABLE>
<CAPTION>
MEASUREMENT PERIOD LARGE-CAP
(FISCAL YEAR COVERED) VALUE S&P 500
<S> <C> <C>
01/02/96 10000 10000
05/31/96 10460 10780
</TABLE>
The performance of Reserve Large-Cap Value Fund reflects the maximum
4.5% sales load.
Past performance is not predictive of future performance.
To the Shareholders of the Reserve Large-Cap Value Fund:
After a very strong performance in 1995, the stock market continues to rise
amidst an environment of tame interest rates and modest corporate earnings
growth. Key contributors to your Fund's year-to-date performance are the
positions in both the Technology and the Food and Beverage sectors. Your
portfolio is invested in the highest quality growth companies that we feel are
selling at attractive prices. It is important to note that this relative
valuation process has nothing to do with the price level of the broader stock
indices.
We do not attempt to "time the market," but instead apply a combination of
fundamental and technical analysis to each current and prospective holding in
your portfolio. This "bottoms-up" approach is designed to select a concentrated
portfolio of businesses that should generate above-average earnings growth as a
result of their market leadership, management prowess and product
differentiation.
DAVID C. SIPHRON, PRESIDENT, SIPHRON CAPITAL MANAGEMENT, SUB-ADVISER
8
<PAGE> 9
RESERVE NORTH AMERICAN GROWTH FUND
<TABLE>
<CAPTION>
NORTH
MEASUREMENT PERIOD AMERICAN
(FISCAL YEAR COVERED) GROWTH S&P 500
<S> <C> <C>
06/01/95 10000 10000
05/31/96 12270 12540
</TABLE>
The chart above reflects the performance of the Reserve North
American Growth Fund class D shares. The performance of the
Reserve North American Growth Fund class A shares will be
greater or less than the line shown based on the differences in
original share inception dates, fees, and sales charges.
Past performance is not predictive of future performance.
RESERVE MID-CAP GROWTH FUND
<TABLE>
<CAPTION>
MEASUREMENT PERIOD MID-CAP
(FISCAL YEAR COVERED) GROWTH S&P 500
<S> <C> <C>
06/01/95 10000 10000
05/31/96 11540 12540
</TABLE>
The performance of Reserve Mid-Cap Growth Fund reflects the maximum 4.5%
sales load.
The chart above reflects the performance of the Reserve Mid-Cap
Growth Fund class A shares. The performance of the Reserve
Mid-Cap Growth Fund class D shares will be greater or less than
the line shown based on the differences in original share
inception, fees, and sales charges.
Past performance is not predictive of future performance.
To the Shareholders of the Reserve North American Growth Fund and the Reserve
Mid-Cap Growth Fund:
The most significant macroeconomic factor relating to the performance of the
Reserve North American Growth Fund over the past fiscal year has been the strong
comparative earning results of the large capitalization companies. Earnings per
share of the Standard & Poor's 500 index companies over the past four years have
grown in such magnitude and for a duration that is unprecedented. Given their
very strong earnings patterns, these large capitalization stocks have
outperformed the "mid-cap" universe in which we invested for the past several
years.
However, in recent months, earnings momentum has swung significantly toward
the "mid-cap" stocks, and performance of the Fund has benefited accordingly. We
are of the opinion, that the factors which caused the extraordinary run of
profit growth for the "large cap" companies were in essence nonrecurring in
nature, and we are likely to embark on a multi-year period of better relative
earnings performance for the "mid-cap" stocks which should enhance the Fund's
relative performance.
RICHARD A. MCSTAY, PRESIDENT, SOUTHERN CAPITAL ADVISORS, SUB-ADVISER
9
<PAGE> 10
THE RESERVE PRIVATE EQUITY SERIES--RESERVE BLUE CHIP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--MAY 31, 1996
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- --------------------------------------------------------------------------------------- ------ ----------
<S> <C> <C>
BANKS (3.5%)
Banc One Corporation................................................................. 4,850 $ 179,450
----------
BUSINESS EQUIPMENT (3.0%)
Xerox Corporation.................................................................... 1,000 157,375
----------
COMPUTER NETWORKING (3.4%)
Cisco Systems, Inc.*................................................................. 3,200 175,200
----------
COMPUTER SOFTWARE (11.8%)
CUC International, Inc.*............................................................. 5,000 203,500
Microsoft Corporation*............................................................... 1,500 178,125
National Data Corporation............................................................ 6,000 226,500
----------
608,125
----------
ELECTRICAL EQUIPMENT (1.9%)
American Superconductor Corporation*................................................. 7,000 98,000
----------
ELECTRONICS (3.5%)
Perceptron, Inc.*.................................................................... 5,000 180,625
----------
FINANCIAL SERVICES (3.6%)
Citicorp............................................................................. 2,200 184,800
----------
MEDICAL SUPPLIES (2.2%)
LaserSight Corporation*.............................................................. 10,000 115,000
----------
MISCELLANEOUS MANUFACTURING (4.4%)
Warnaco Group, Inc. ................................................................. 8,000 227,000
----------
MULTI-LINE INSURANCE (4.5%)
American International Group, Inc. .................................................. 2,500 235,625
----------
OIL/GAS EQUIPMENT SERVICES (9.0%)
Petroleum Geo-Services--ADR*......................................................... 7,000 214,375
Schlumberger, Ltd. .................................................................. 3,000 250,125
----------
464,500
----------
PACKAGED SOFTWARE (2.8%)
Computer Associates International, Inc. ............................................. 2,000 145,500
----------
PHARMACEUTICALS (8.8%)
Johnson & Johnson.................................................................... 2,000 194,750
Eli Lilly & Company.................................................................. 1,000 64,250
Merck & Company, Inc. ............................................................... 3,000 193,875
----------
452,875
----------
PUBLISHING (5.3%)
Harte-Hanks Communications........................................................... 10,500 276,938
----------
PUBLISHING--NEWSPAPERS (2.8%)
Tribune Company...................................................................... 2,000 148,250
----------
REAL ESTATE (4.5%)
Insignia Financial Group, Inc. Class A*.............................................. 9,000 234,000
----------
RETAIL SPECIALTY (3.0%)
Home Depot, Inc. .................................................................... 3,000 153,375
----------
</TABLE>
10
<PAGE> 11
THE RESERVE PRIVATE EQUITY SERIES--RESERVE BLUE CHIP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--MAY 31, 1996--(CONTINUED)
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- --------------------------------------------------------------------------------------- ------ ----------
<S> <C> <C>
SPECIAL INDUSTRIAL MACHINERY (6.2%)
Thermo Electron Corporation*......................................................... 5,000 $ 318,750
----------
TELECOMMUNICATIONS (4.0%)
CommNet Cellular, Inc.*.............................................................. 6,000 206,250
----------
TELECOMMUNICATIONS EQUIPMENT (6.7%)
Glenayre Technologies, Inc.*......................................................... 7,075 348,443
----------
TOTAL COMMON STOCKS (Cost $3,765,486) (94.9%).......................................... 4,910,081
Other assets, less liabilities (5.1%).................................................. 262,077
----------
NET ASSETS (100%)...................................................................... $5,172,158
==========
</TABLE>
- ------------
Value of investments are shown as a percentage of Net Assets.
* Non-income producing security.
For federal income tax purposes the tax basis for investments owned at May 31,
1996 was $3,765,486, the aggregate gross unrealized appreciation for all
investments was $1,159,820 and aggregate gross unrealized depreciation for all
investments was $15,225.
THE RESERVE PRIVATE EQUITY SERIES--RESERVE EMERGING GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--MAY 31, 1996
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- ---------------------------------------------------------------------------------------- ------ ----------
<S> <C> <C>
BIO-TECHNOLOGY (3.3%)
Alliance Pharmaceutical Corporation*.................................................. 4,000 $ 86,500
Genzyme Corporation*.................................................................. 2,400 139,800
----------
226,300
----------
CAPITAL GOODS -- DIVERSIFIED (1.8%)
Danaher Corporation................................................................... 3,000 124,500
----------
CAPITAL GOODS/INDUSTRIAL (1.5%)
Vishay Intertechnology, Inc.*......................................................... 3,654 100,943
----------
COMMUNICATION -- EQUIPMENT (5.1%)
ANADIGICS, Inc.*...................................................................... 3,000 79,500
ECI Telecommunications Ltd. Designs................................................... 5,000 132,500
FORE Systems, Inc.*................................................................... 1,700 137,700
----------
349,700
----------
COMMUNICATION -- NETWORK (8.8%)
Heartland Wireless Communications, Inc.*.............................................. 3,500 94,500
IntelCom Group Inc.*.................................................................. 5,000 132,500
Pairgain Technologies, Inc.*.......................................................... 1,500 152,625
People's Choice TV Corporation*....................................................... 4,000 68,000
Wireless One, Inc.*................................................................... 8,500 157,250
----------
604,875
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 12
THE RESERVE PRIVATE EQUITY SERIES--RESERVE EMERGING GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--MAY 31, 1996--(CONTINUED)
<TABLE>
<S> <C> <C>
COMPUTER NETWORKING (8.7%)
Ascend Communications, Inc.*.......................................................... 3,600 $ 240,750
Bay Networks Inc.*.................................................................... 1,950 56,550
Shiva Corporation*.................................................................... 2,400 179,400
3Com Corporation*..................................................................... 2,500 123,125
----------
599,825
----------
COMPUTER SOFTWARE (11.0%)
Business Objects S. A. -- ADR*........................................................ 2,000 93,000
Data Translation, Inc.*............................................................... 8,000 212,000
Dendrite International, Inc.*......................................................... 3,500 95,375
Edify Corporation*.................................................................... 1,000 42,000
EPIC Design Technology, Inc.*......................................................... 3,000 88,500
Fractal Design Corp.*................................................................. 5,000 77,500
Oacis Healthcare Holding Corp.*....................................................... 3,000 49,500
Sapient Corporation*.................................................................. 2,000 100,000
----------
757,875
----------
CONSUMER GROWTH (3.8%)
Activision, Inc.*..................................................................... 5,000 68,125
Conso Products Company*............................................................... 5,750 100,625
Electronic Arts, Inc.*................................................................ 1,200 37,950
Lin Television Corporation*........................................................... 1,700 54,400
----------
261,100
----------
ELECTRIC MEASUREMENT & TESTING INSTRUMENTS (1.4%)
Opal, Inc.*........................................................................... 5,500 100,375
----------
ENERGY (1.8%)
Cross Timbers Oil Company............................................................. 5,500 123,062
----------
HEALTH (5.6%)
HCIA, Inc.*........................................................................... 2,300 148,925
National Dentex Corporation*.......................................................... 6,000 138,000
PacifiCare Health Systems, Inc.*...................................................... 1,200 99,300
----------
386,225
----------
MANAGED CARE (4.8%)
Healthsource, Inc.*................................................................... 4,000 90,500
MedPartners/Mullikin, Inc.*........................................................... 4,500 105,188
PhyCor, Inc.*......................................................................... 2,525 136,981
----------
332,669
----------
MISCELLANEOUS CONSUMER (1.4%)
On Assignment, Inc.*.................................................................. 2,500 100,625
----------
OFFICE-BUSINESS EQUIPMENT (1.3%)
HPR Inc.*............................................................................. 4,000 93,000
----------
PAPER (1.1%)
Data Documents, Inc.*................................................................. 6,000 76,500
----------
</TABLE>
12
<PAGE> 13
THE RESERVE PRIVATE EQUITY SERIES--RESERVE EMERGING GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--MAY 31, 1996--(CONTINUED)
<TABLE>
<S> <C> <C>
PHARMACEUTICALS (3.4%)
Centocor, Inc.*....................................................................... 3,200 $ 113,200
Dura Pharmaceuticals, Inc.*........................................................... 2,000 123,250
----------
236,450
----------
RADIO, TV & BROADCAST COMM. EQUIP. (1.5%)
American Telecasting, Inc.*........................................................... 7,500 105,937
----------
RESTAURANTS (3.2%)
Cheesecake Factory (The)*............................................................. 2,500 66,250
Outback Steakhouse, Inc.*............................................................. 3,000 113,625
Volunteer Capital Corporation*........................................................ 4,000 43,500
----------
223,375
----------
RETAIL -- SPECIALTY (8.1%)
Borders Group, Inc.*.................................................................. 4,500 147,375
PetSmart, Inc.*....................................................................... 3,000 133,500
Staples, Inc.*........................................................................ 6,325 126,500
The Sports Authority, Inc.*........................................................... 5,000 148,750
----------
556,125
----------
SEMICONDUCTOR-RELATED DEVICE (5.2%)
Credence Systems Corporation*......................................................... 2,500 50,625
Intel Corporation..................................................................... 1,800 135,900
KLA Instruments Corporation*.......................................................... 3,000 81,000
LSI Logic Corporation*................................................................ 3,000 93,375
----------
360,900
----------
SYSTEM SOFTWARE/CLIENT SERVER (4.0%)
Hummingbird Communications Ltd.*...................................................... 3,400 138,125
Informix Corporation*................................................................. 6,000 136,500
----------
274,625
----------
TELECOMMUNICATIONS (2.5%)
Cascade Communications Corp.*......................................................... 3,000 169,125
----------
TELECOMMUNICATIONS EQUIPMENT (6.2%)
Comverse Technology, Inc.*............................................................ 4,000 117,500
DSC Communications Corporation*....................................................... 2,000 60,250
Newbridge Networks Corporation*....................................................... 1,800 128,025
P-COM, Inc.*.......................................................................... 4,000 119,500
----------
425,275
----------
TOTAL COMMON STOCKS (Cost $4,765,851) (95.5%)........................................... 6,589,386
Other assets, less liabilities (4.5%)................................................... 310,054
----------
NET ASSETS (100%)....................................................................... $6,899,440
==========
</TABLE>
- ---------------
Value of investments are shown as a percentage of Net Assets
* Non-income producing security.
For Federal income tax purposes the tax basis of investments owned at May 31,
1996 was $4,765,851, the aggregate gross unrealized appreciation for all
investments was $1,941,417 and aggregate gross unrealized depreciation for all
investments was $117,882.
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 14
THE RESERVE PRIVATE EQUITY SERIES--RESERVE GROWTH AND INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--MAY 31, 1996
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- -------------------------------------------------------------------------------------- --------- ----------
<S> <C> <C>
AUTO (1.9%)
Chrysler Corporation................................................................ 300 $ 19,988
----------
BANKS (5.3%)
Bankers Trust New York Corporation.................................................. 500 37,563
First of America Bank Corporation................................................... 400 18,300
----------
55,863
----------
COMPUTER NETWORKING (3.1%)
Cisco Systems, Inc. ................................................................ 600 32,850
----------
COMPUTERS (3.0%)
Hewlett-Packard Company............................................................. 300 32,025
----------
ELECTRIC UTILITIES (15.5%)
Consolidated Edison Company of New York, Inc. ...................................... 1,400 39,025
Hawaiian Electric Industries, Inc. ................................................. 1,300 44,200
Minnesota Power and Light Company................................................... 1,500 40,313
Southwestern Public Service Company................................................. 1,300 39,812
----------
163,350
----------
FERTILIZERS (1.9%)
Freeport McMoran Resource Partners Ltd. ............................................ 1,000 20,000
----------
MISCELLANEOUS ENERGY (2.0%)
LL & E Royalty Trust................................................................ 4,500 21,375
----------
OIL-INTERNATIONAL (2.3%)
Chevron Corporation................................................................. 400 23,900
----------
PHARMACEUTICALS (1.2%)
Merck & Company Inc. ............................................................... 200 12,925
----------
REAL ESTATE (1.9%)
Commercial Net Lease Realty Inc. ................................................... 1,500 20,063
----------
RESTAURANTS (1.9%)
Lone Star Steakhouse & Saloon....................................................... 500 20,188
----------
RETAIL-SPECIALTY (3.6%)
Home Depot, Inc. ................................................................... 300 15,338
Tiffany & Company................................................................... 300 22,762
----------
38,100
----------
SEMICONDUCTOR-RELATED DEVICE (3.2%)
Texas Instruments, Inc. ............................................................ 600 33,750
----------
TELECOMMUNICATIONS (3.5%)
GTE Corporation..................................................................... 400 17,100
Telecom Corporation of New Zealand, Ltd. (ADR)...................................... 300 19,688
----------
36,788
----------
TELEPHONE (3.0%)
AT & T Corporation.................................................................. 500 31,188
----------
</TABLE>
14
<PAGE> 15
THE RESERVE PRIVATE EQUITY SERIES--RESERVE GROWTH AND INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--MAY 31, 1996--(CONTINUED)
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL VALUE
COMMON STOCKS AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------------- --------- ----------
<S> <C> <C>
UTILITIES-TELECOMMUNICATION (1.8%)
NYNEX Corporation................................................................... 400 $ 18,450
----------
TOTAL COMMON STOCKS (Cost $576,535) (55.1%)........................................... $ 580,803
==========
<CAPTION>
PREFERRED STOCKS
- --------------------------------------------------------------------------------------
<S> <C> <C>
FINANCIAL SERVICES (4.0%)
Lehman Brothers Holdings, Inc. Series A 8.30%....................................... 1,000 24,625
Sunamerica Capital Trust, 8.35%..................................................... 700 17,500
----------
42,125
----------
GOLD MINING (1.5%)
Battle Mountain Gold Company, $3.25................................................. 300 15,525
----------
LIFE INSURANCE (2.2%)
Conseco Inc., 6.50% Series D........................................................ 400 23,100
----------
PROPERTY-LIABILITY INSURANCE (3.5%)
Travelers/P&C Cap I Preferred Trust, 8.08%.......................................... 1,500 36,938
----------
TOTAL PREFERRED STOCKS (Cost $117,775) (11.2%)........................................ $ 117,688
==========
<CAPTION>
CONVERTIBLE BONDS
- --------------------------------------------------------------------------------------
<S> <C> <C>
HOTEL-MOTEL (2.4%)
Hilton Hotels Corp. 5.00%, 05/15/06................................................. 25,000 25,062
----------
STEEL (2.4%)
USX Corp. 7.00%, 06/15/17........................................................... 25,000 24,125
----------
TOTAL CONVERTIBLE BONDS (Cost $49,045) (4.8%)......................................... $ 49,187
==========
US TREASURY NOTES
- --------------------------------------------------------------------------------------
US Treasury Notes, 7.375%, 11/15/97 (Cost $50,913)(4.9%)............................ 50,000 50,867
----------
TOTAL INVESTMENT SECURITIES (Cost $794,268) (76.0%)................................... 798,545
Other assets, less liabilities (24.0%)................................................ 253,611
----------
NET ASSETS (100%)..................................................................... $1,052,156
==========
</TABLE>
- ---------------
Value of investments are shown as a percentage of Net Assets.
* Non-income producing security.
For federal income tax purposes the tax basis for investments owned at May 31,
1996 was $794,268, the aggregate gross unrealized appreciation for all
investments was $30,992, and aggregate gross unrealized depreciation for all
investments was $26,715.
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 16
THE RESERVE PRIVATE EQUITY SERIES--RESERVE INFORMED INVESTORS GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--MAY 31, 1996
<TABLE>
<CAPTION>
SHARES/ VALUE
COMMON STOCKS UNITS (NOTE 1)
- --------------------------------------------------------------------------------------- ------- ----------
<S> <C> <C>
AIR TRANSPORT (4.0%)
Comair Holdings, Inc. ............................................................... 9,750 $ 255,938
----------
BUSINESS EQUIPMENT/SERVICES (2.6%)
Equifax, Inc......................................................................... 6,700 165,825
----------
COMPUTER NETWORKING (4.4%)
Cisco Systems, Inc.*................................................................. 5,200 284,700
----------
COMPUTER SOFTWARE (3.9%)
CompUSA, Inc.*....................................................................... 5,700 249,375
----------
COMPUTERS (9.6%)
Sun Microsystems, Inc.*.............................................................. 9,800 613,725
----------
FOOD (3.7%)
Safeway, Inc.*....................................................................... 7,000 236,250
----------
MACHINERY-CONSTRUCTION (3.7%)
JLG Industries, Inc.................................................................. 3,000 237,375
----------
MAGNETIC OPTICAL RECORDING MEDIA (5.5%)
Komag, Inc.*......................................................................... 10,200 353,175
----------
PACKAGED SOFTWARE (11.2%)
Cadence Design Systems, Inc.*........................................................ 12,700 720,725
----------
SEMICONDUCTOR, RELATED DEVICE (9.1%)
Analog Devices, Inc.*................................................................ 1,100 30,387
Atmel Corporation*................................................................... 15,500 550,250
----------
580,637
----------
SHOES (5.3%)
Nike, Inc. .......................................................................... 3,400 341,275
----------
SPECIAL INDUSTRIAL MACHINERY (5.1%)
Applied Materials, Inc.*............................................................. 8,700 324,075
----------
TELEPHONE & TELGRAPH APPARATUS (29.0%)
Aspect Telecommunications Corporation*............................................... 7,500 425,625
Tellabs, Inc.*....................................................................... 1,200 77,400
U.S. Robotics Corporation*........................................................... 14,800 1,357,900
----------
1,860,925
----------
TOTAL COMMON STOCKS (Cost $3,783,862) (97.1%).......................................... 6,224,000
Other assets, less liabilities (2.9%).................................................. 184,063
----------
NET ASSETS (100%)...................................................................... $6,408,063
==========
</TABLE>
- ---------------
Value of investments are shown as a percentage of Net Assets.
* Non-income producing security.
For Federal income tax purposes the tax basis of investments owned at May 31,
1996 was $3,783,862, the aggregated gross unrealized appreciation for all
investments was $2,494,427 and aggregate gross unrealized depreciation for all
investments was $54,289.
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 17
THE RESERVE PRIVATE EQUITY SERIES--RESERVE INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--MAY 31, 1996
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- --------------------------------------------------------------------------------------- ------ ----------
<S> <C> <C>
AUSTRALIA (1.2%)
Coca Cola Amatil Ltd. ............................................................... 4,074 $ 44,377
----------
FRANCE (4.7%)
Altran Technologies.................................................................. 120 34,918
Axime................................................................................ 260 35,305
Carrefour............................................................................ 120 65,777
Carrefour (Rights expiring 7/2/96)................................................... 120 33,040
----------
169,040
----------
GERMANY (3.7%)
Altana AG............................................................................ 50 31,550
Fresenius AG......................................................................... 350 61,244
Gehe AG.............................................................................. 65 41,825
----------
134,619
----------
HONG KONG (10.1%)
CDL Hotels International Limited..................................................... 68,000 38,676
Giordano International Ltd. ......................................................... 24,000 21,562
Goldlion Holdings Ltd. .............................................................. 25,000 20,521
Hang Seng Bank Ltd. ................................................................. 7,000 73,067
Hong Kong & China Gas Company........................................................ 31,800 50,561
Hong Kong & China Gas Company (Warrants -- expires 9/30/97).......................... 1,900 87
Manhattan Card Company Ltd. ......................................................... 68,000 32,743
National Mutual Asia Ltd. ........................................................... 44,000 39,814
Sun Hung Kai Properties Ltd. ........................................................ 6,000 61,272
Wing Hang Bank Ltd. ................................................................. 6,000 23,423
----------
361,726
----------
INDONESIA (5.6%)
PT Bank Internasional Indonesia...................................................... 10,000 52,220
PT Darya Varia Laboratoria........................................................... 20,000 42,033
PT Darya Varia Laboratoria (Rights expiring 6/3/96).................................. 2,400 0
PT Gudang Garam...................................................................... 4,000 32,597
PT Steady Safe....................................................................... 11,000 14,626
PT Telekomunikasi Indonesia.......................................................... 38,000 57,860
----------
199,336
----------
ITALY (1.4%)
Telecom Italia SpA................................................................... 8,000 16,145
Telecom Italia Mobile SpA............................................................ 25,000 33,041
----------
49,186
----------
JAPAN (1.0%)
Paris Miki, Inc. .................................................................... 800 35,057
----------
</TABLE>
17
<PAGE> 18
THE RESERVE PRIVATE EQUITY SERIES--RESERVE INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--MAY 31, 1996--(CONTINUED)
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- --------------------------------------------------------------------------------------- ------ ----------
<S> <C> <C>
MALAYSIA (8.3%)
Arab-Malaysian Merchant Bank Berhad.................................................. 2,000 $ 27,043
Commerce Asset Holding Berhad........................................................ 10,000 67,308
DCB Holdings Berhad.................................................................. 8,000 26,603
Malayan Banking Berhad............................................................... 4,000 37,981
Malaysian Assurance Alliance Berhad.................................................. 11,625 57,287
O.Y.L. Industries Berhad............................................................. 6,000 59,615
United Engineers (Malaysia) Ltd. .................................................... 3,000 20,913
----------
296,750
----------
NETHERLANDS (4.4%)
Elsevier............................................................................. 4,000 62,207
Heineken............................................................................. 200 40,786
Wolters Kluwer....................................................................... 502 56,239
----------
159,232
----------
NORWAY (1.4%)
Tomra Systems........................................................................ 5,000 48,779
----------
PHILIPPINES (1.6%)
Bankard, Inc. ....................................................................... 60,000 29,221
DMCI Holdings Inc. .................................................................. 37,000 27,206
----------
56,427
----------
SINGAPORE (5.6%)
City Developments Limited............................................................ 6,000 46,055
DBS Land Limited..................................................................... 12,000 39,915
Development Bank of Singapore Limited................................................ 3,000 35,608
Oversea-Chinese Banking Corporation Ltd. ............................................ 3,000 38,380
Overseas Union Bank Ltd. ............................................................ 6,000 42,644
----------
202,602
----------
SOUTH KOREA (3.1%)
Seoul City Gas Co. Ltd. ............................................................. 500 41,476
Sungmi Telecom Electronics........................................................... 300 68,807
----------
110,283
----------
SPAIN (7.5%)
Centros Comerciales Pryca............................................................ 1,000 23,579
Empresa Nacional de Electridad....................................................... 2,300 142,529
Gas Natural.......................................................................... 360 63,699
Iberdrola............................................................................ 3,900 39,672
----------
269,479
----------
SWEDEN (4.5%)
Astra AB Series A.................................................................... 1,400 64,215
Elekta Instrument AB Series B........................................................ 500 18,496
Ericsson Telefonaktiebolaget......................................................... 1,200 26,939
Frontec AB Series B.................................................................. 400 19,690
Wm Data AB Series B.................................................................. 500 30,280
----------
159,620
----------
</TABLE>
18
<PAGE> 19
THE RESERVE PRIVATE EQUITY SERIES--RESERVE INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--MAY 31, 1996--(CONTINUED)
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- --------------------------------------------------------------------------------------- ------ ----------
<S> <C> <C>
SWITZERLAND (6.2%)
Nestle SA............................................................................ 70 $ 79,087
Roche Holding AG..................................................................... 8 61,538
Sandoz AG............................................................................ 60 62,596
Zurich Versicherungs................................................................. 70 18,510
----------
221,731
----------
THAILAND (5.1%)
Bangkok Bank Public Company Ltd. .................................................... 4,000 58,113
Central Pattana Public Company Ltd. ................................................. 7,000 29,017
Grammy Entertainment Public Company Ltd. ............................................ 1,500 20,371
Krung Thai Bank Public Company Ltd. ................................................. 6,000 29,135
Thai Farmers Bank Public Company Ltd. ............................................... 4,000 45,795
----------
182,431
----------
UNITED KINGDOM (10.5%)
Dixons Group plc..................................................................... 6,800 52,787
HSBC Holdings plc.................................................................... 3,726 56,779
J.D. Wetherspoon plc................................................................. 1,000 14,486
Logica plc........................................................................... 2,900 27,775
Reed International plc............................................................... 3,700 64,044
Reuters Holding plc.................................................................. 7,500 87,302
Standard Chartered plc............................................................... 7,343 73,572
----------
376,745
----------
UNITED STATES (5.5%)
Embotelladora Andina ADR............................................................. 1,000 35,500
Larsen & Toubro Ltd. ................................................................ 2,000 39,260
Santa Isabel ADR..................................................................... 1,300 34,450
Tata Engineering and Locomotive Company Ltd. ........................................ 3,000 52,260
Total Access Communication plc....................................................... 4,000 36,400
----------
197,870
----------
TOTAL COMMON STOCKS (Cost $2,944,304) (91.4%).......................................... 3,275,290
Other assets, less liabilities (8.6%).................................................. 309,234
----------
NET ASSETS (100%)...................................................................... $3,584,524
==========
</TABLE>
19
<PAGE> 20
THE RESERVE PRIVATE EQUITY SERIES--RESERVE INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--MAY 31, 1996--(CONTINUED)
INDUSTRY COMPOSITION
<TABLE>
<CAPTION>
INDUSTRY PERCENT
- ------------------------------------------- -------
<S> <C>
Auto/Truck Manufacturers................... 1.5%
Beverages.................................. 3.4
Biotechnology & Medical Devices............ 2.2
Commercial Banks........................... 16.6
Computer Software.......................... 3.6
Computers & Peripherals.................... 0.5
Construction............................... 2.4
Drugs & Health Care........................ 7.6
Financial Services......................... 10.9
Food Processing............................ 2.2
Lodging & Restaurants...................... 1.5
Machinery.................................. 3.0
<CAPTION>
INDUSTRY PERCENT
- ------------------------------------------- -------
<S> <C>
Public Utilities........................... 9.4%
Publishing................................. 5.1
Real Estate Development.................... 2.8
Real Estate Investment..................... 2.1
Retailing.................................. 9.5
Telecommunications......................... 6.7
Transportation............................. 0.4
-------
Industry percent of net assets............. 91.4%
-------
Other assets, less liabilities............. 8.6
-------
PERCENT OF NET ASSETS...................... 100.0%
======
</TABLE>
- ---------------
Value of investments are shown as a percentage of Net Assets.
For federal income tax purposes the tax basis for investments owned at May 31,
1996 was $2,944,304, the aggregate gross unrealized appreciation for all
investments was $371,871 and aggregate gross unrealized depreciation for all
investments was $40,885.
THE RESERVE PRIVATE EQUITY SERIES--RESERVE LARGE-CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--MAY 31, 1996
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- ---------------------------------------------------------------------------------------- ------ ----------
<S> <C> <C>
BANKS (2.0%)
Wells Fargo & Company................................................................. 100 $ 24,100
----------
BEVERAGES (14.0%)
Anheuser-Busch Companies, Inc. ....................................................... 800 57,000
Coca-Cola Company..................................................................... 1,200 55,200
Earthgrains Company................................................................... 20 720
PepsiCo, Inc. ........................................................................ 1,800 59,850
----------
172,770
----------
COMPUTER SOFTWARE (4.8%)
Microsoft Corporation................................................................. 500 59,375
----------
COMPUTER-PERIPHERAL EQUIPMENT (3.8%)
Motorola, Inc. ....................................................................... 700 46,725
----------
COSMETICS (11.5%)
Clorox Company........................................................................ 600 51,075
Gillette Company...................................................................... 900 53,213
Tambrands, Inc. ...................................................................... 800 36,900
----------
141,188
----------
DRUGS (1.8%)
Warner Lambert Company................................................................ 400 22,400
----------
ENTERTAINMENT (3.9%)
Walt Disney Company (Holding Co.)..................................................... 800 48,600
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE> 21
THE RESERVE PRIVATE EQUITY SERIES--RESERVE LARGE-CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--MAY 31, 1996--(CONTINUED)
<TABLE>
<S> <C> <C>
FINANCIAL/BUSINESS SERVICES (8.2%)
American Express Company.............................................................. 1,100 $ 50,325
Charles Schwab Corporation............................................................ 2,100 50,925
----------
101,250
----------
FOOD (21.5%)
CPC International, Inc. .............................................................. 800 55,300
Campbell Soup Company................................................................. 900 58,050
Hershey Foods Corporation............................................................. 700 50,925
Quaker Oats Company................................................................... 1,500 52,687
Wrigley (WM) Jr. Company.............................................................. 900 47,138
----------
264,100
----------
PHARMACEUTICALS (7.4%)
Johnson & Johnson..................................................................... 400 38,950
Merck & Company, Inc. ................................................................ 800 51,700
----------
90,650
----------
PUBLISHING (4.5%)
Gannett Company, Inc. ................................................................ 800 55,800
----------
PUBLISHING -- NEWSPAPERS (3.8%)
New York Times Company Class A........................................................ 1,400 46,025
----------
RETAIL STORES -- GENERAL MERCHANDISING (4.2%)
Wal-Mart Stores, Inc. ................................................................ 2,000 51,750
----------
SEMICONDUCTOR -- RELATED DEVICE (4.9%)
Intel Corporation..................................................................... 800 60,400
----------
TOTAL COMMON STOCKS (Cost $1,115,010)(96.3%)............................................ 1,185,133
Other assets, less liabilities (3.7%)................................................... 45,927
----------
NET ASSETS (100%)....................................................................... $1,231,060
==========
</TABLE>
- ---------------
Value of investments are shown as a percentage of Net Assets.
* Non-income producing security.
For federal income tax purposes the tax basis for investments owned at May 31,
1996 was $1,115,010, the aggregate gross unrealized appreciation for all
investments was $84,608 and aggregate gross unrealized depreciation for all
investments was $14,485.
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE> 22
THE RESERVE PRIVATE EQUITY SERIES--RESERVE MID-CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--MAY 31, 1996
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- ---------------------------------------------------------------------------------------- ------ ----------
<S> <C> <C>
AIR TRANSPORT (3.0%)
Delta Air Lines, Inc. ................................................................ 550 $ 45,581
----------
AUTO PARTS (3.6%)
Gentex Corporation*................................................................... 1,200 54,300
----------
BANKS (2.7%)
Cole Taylor Financial Group, Inc. .................................................... 1,500 39,750
----------
BUSINESS EQUIPMENT/SERVICE (8.4%)
Equifax, Inc. ........................................................................ 2,800 69,300
Interim Services, Inc.*............................................................... 1,200 57,000
----------
126,300
----------
CHEMICAL SPECIALTY (4.5%)
Raychem Corporation................................................................... 900 67,275
----------
COMMUNICATION -- NETWORK (4.0%)
LCI International, Inc.*.............................................................. 1,900 60,563
----------
COMPUTER SERVICES (2.7%)
Acxiom Corporation*................................................................... 1,300 40,625
----------
COMPUTER SOFTWARE (2.1%)
Black Box Corporation*................................................................ 1,500 31,125
----------
COMPUTER -- PERIPHERAL EQUIPMENT (2.9%)
Dialogic Corporation*................................................................. 800 43,200
----------
COMPUTERS (4.3%)
Gateway 2000, Inc.*................................................................... 1,700 64,387
----------
ELECTRIC MEASUREMENT & TESTING INST. (5.1%)
Input/Output, Inc. ................................................................... 1,900 76,713
----------
FINANCE-PERSONAL LOANS (4.1%)
MBNA Corporation...................................................................... 2,000 61,250
----------
FOOD CHAINS (2.0%)
Whole Foods Market, Inc.*............................................................. 1,200 29,550
----------
HEALTH (2.7%)
American Medical Response, Inc.*...................................................... 1,100 40,012
----------
HOME BUILDINGS (4.5%)
Oakwood Homes Corp. .................................................................. 1,400 67,900
----------
HOSPITAL SUPPLIES (5.4%)
Advanced Technology Laboratories, Inc.*............................................... 1,400 49,350
Sofamor Danek Group, Inc.*............................................................ 900 32,175
----------
81,525
----------
HOUSEHOLD FURNISHINGS & APPLIANCES (5.2%)
Heilig-Meyers Company................................................................. 2,000 41,250
Herman Miller, Inc. .................................................................. 1,200 37,050
----------
78,300
----------
LIFE INSURANCE (3.3%)
Protective Life Corporation........................................................... 1,300 48,588
----------
</TABLE>
22
<PAGE> 23
THE RESERVE PRIVATE EQUITY SERIES--RESERVE MID-CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--MAY 31, 1996--(CONTINUED)
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- ---------------------------------------------------------------------------------------- ------ ----------
<S> <C> <C>
MISCELLANEOUS METALS (3.4%)
Wolverine Tube Inc.*.................................................................. 1,400 $ 51,100
----------
MOBIL HOMES (2.2%)
Palm Harbor Homes, Inc.*.............................................................. 1,200 33,300
----------
OIL/GAS EQUIPMENT SERVICES (6.5%)
Rowan Companies, Inc.*................................................................ 2,600 39,325
Tidewater, Inc. ...................................................................... 1,400 57,750
----------
97,075
----------
POLLUTION CONTROL (4.4%)
Newpark Resources, Inc.*.............................................................. 1,800 65,250
----------
RESTAURANTS (2.1%)
Sonic Corporation*.................................................................... 1,300 31,200
----------
RETAIL (3.8%)
Casey's General Stores, Inc. ......................................................... 2,400 56,700
----------
SPECIAL INDUSTRIAL MACHINERY (3.8%)
Black & Decker Corp. ................................................................. 1,400 57,575
----------
TOTAL COMMON STOCK (Cost $1,284,178) (96.7%)............................................ 1,449,144
Other assets, less liabilities (3.3%)................................................... 49,980
----------
NET ASSETS (100%)....................................................................... $1,499,124
==========
</TABLE>
- ---------------
Value of investments are shown as a percentage of Net Assets.
* Non-income producing security.
For federal income tax purposes the tax basis for investments owned at May 31,
1996 was $1,284,178, the aggregate gross unrealized appreciation for all
investments was $181,516 and aggregate gross unrealized depreciation for all
investments was $16,550.
THE RESERVE PRIVATE EQUITY SERIES--RESERVE NORTH AMERICAN GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--MAY 31, 1996
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- ---------------------------------------------------------------------------------------- ------ ----------
<S> <C> <C>
AIR TRANSPORTATION (3.1%)
Delta Air Lines, Inc. ................................................................ 950 $ 78,731
----------
AUTO PARTS (4.3%)
Gentex Corporation*................................................................... 2,400 108,600
----------
BANKS (2.3%)
Cole Taylor Financial Group, Inc. .................................................... 2,200 58,300
----------
BUSINESS EQUIPMENT/SERVICE (8.0%)
Equifax Inc. ......................................................................... 4,400 108,900
Interim Services, Inc.*............................................................... 2,000 95,000
----------
203,900
----------
CHEMICAL SPECIALTY (4.0%)
Raychem Corporation................................................................... 1,350 100,913
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE> 24
THE RESERVE PRIVATE EQUITY SERIES--RESERVE NORTH AMERICAN GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--MAY 31, 1996--(CONTINUED)
<TABLE>
<S> <C> <C>
COMMUNICATION -- NETWORK (3.6%)
LCI International, Inc.*.............................................................. 2,900 $ 92,438
----------
COMPUTER SERVICES (2.9%)
Acxiom Corporation*................................................................... 2,400 75,000
----------
COMPUTER SOFTWARE (2.3%)
Black Box Corporation*................................................................ 2,800 58,100
----------
COMPUTERS (3.9%)
Gateway 2000, Inc.*................................................................... 2,600 98,475
----------
COMPUTERS -- PERIPHERAL EQUIPMENT (3.4%)
Dialogic Corporation*................................................................. 1,600 86,400
----------
ELECTRIC MEASUREMENT & TESTING INSTRUMENT (4.8%)
Input/Output, Inc.*................................................................... 3,000 121,125
----------
FINANCE -- PERSONAL LOANS (3.5%)
MBNA Corporation...................................................................... 2,900 88,812
----------
FOOD CHAINS (1.9%)
Whole Foods Market, Inc.*............................................................. 2,000 49,250
----------
HEALTH (2.5%)
American Medical Response, Inc.*...................................................... 1,750 63,656
----------
HOME BUILDINGS (4.4%)
Oakwood Homes Corp. .................................................................. 2,300 111,550
----------
HOSPITAL SUPPLIES (5.2%)
Advanced Technology Laboratories, Inc.*............................................... 2,300 81,075
Sofamor Danek Group, Inc.*............................................................ 1,400 50,050
----------
131,125
----------
HOUSEHOLD FURNISHINGS APPLIANCE (5.3%)
Heilig-Meyers Company................................................................. 3,300 68,063
Herman Miller, Inc. .................................................................. 2,200 67,925
----------
135,988
----------
LIFE INSURANCE (4.8%)
American Bankers Insurance Group, Inc. ............................................... 1,200 46,500
Protective Life Corporation........................................................... 2,000 74,750
----------
121,250
----------
MISCELLANEOUS METALS (3.0%)
Wolverine Tube, Inc.*................................................................. 2,100 76,650
----------
MOBIL HOMES (2.0%)
Palm Harbor Homes, Inc.*.............................................................. 1,800 49,950
----------
OIL/GAS EQUIPMENT SERVICES (5.9%)
Rowan Companies, Inc.*................................................................ 4,000 60,500
Tidewater Inc. ....................................................................... 2,150 88,687
----------
149,187
----------
POLLUTION CONTROL (4.1%)
Newpark Resources, Inc.*.............................................................. 2,870 104,037
----------
</TABLE>
24
<PAGE> 25
THE RESERVE PRIVATE EQUITY SERIES--RESERVE NORTH AMERICAN GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--MAY 31, 1996--(CONTINUED)
<TABLE>
<S> <C> <C>
RESTAURANTS (2.1%)
Sonic Corporation*.................................................................... 2,200 $ 52,800
----------
RETAIL (3.3%)
Casey's General Stores, Inc. ......................................................... 3,500 82,688
----------
SPECIAL INDUSTRIAL MACHINERY (3.5%)
Black & Decker Corporation............................................................ 2,200 90,475
----------
TOTAL COMMON STOCKS (Cost $1,935,729) (94.1%)........................................... 2,389,400
Other assets, less liabilities (5.9%)................................................... 150,155
----------
NET ASSETS (100%)....................................................................... $2,539,555
==========
</TABLE>
- ---------------
Value of investments are shown as a percentage of Net Assets.
* Non-income producing security.
For federal income tax purposes the tax basis for investments owned at May 31,
1996 was $1,935,729, the aggregate gross unrealized appreciation for all
investments was $472,445 and aggregate gross unrealized depreciation for all
investments was $18,774.
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE> 26
THE RESERVE PRIVATE EQUITY SERIES
STATEMENTS OF ASSETS AND LIABILITIES--MAY 31, 1996
<TABLE>
<CAPTION>
RESERVE RESERVE RESERVE
BLUE CHIP EMERGING GROWTH AND
GROWTH FUND GROWTH FUND INCOME FUND
----------- ----------- -----------
<S> <C> <C> <C>
ASSETS:
Investment in securities, at value (cost $3,765,486, $4,765,851,
$794,268, respectively)............................................ $4,910,081 $6,589,386 $ 798,545
Cash................................................................. 201,401 756,193 255,213
Receivable for investment securities sold............................ 271,837 99,208 --
Dividends receivable................................................. 2,620 120 3,376
Interest receivable.................................................. -- -- 1,041
----------- ----------- -----------
Total assets....................................................... 5,385,939 7,444,907 1,058,175
----------- ----------- -----------
LIABILITIES
Accrued comprehensive fee............................................ -- 10,836 4,527
Payable for investment securities purchased.......................... 213,700 518,939 --
Other payables and accrued expenses.................................. 81 15,692 1,492
----------- ----------- -----------
Total liabilities.................................................. 213,781 545,467 6,019
----------- ----------- -----------
NET ASSETS............................................................. $5,172,158 $6,899,440 $1,052,156
=========== =========== ===========
NET ASSETS CONSIST OF (NOTE 1):
Capital stock (Par Value $.001 per share)............................ $ 347 $ 353 $ 103
Additional paid in capital........................................... 4,141,875 5,086,032 1,038,372
Accumulated net realized loss on investments......................... (114,659) (10,480) (111)
Accumulated undistributed net investment income...................... -- -- 9,515
Net unrealized appreciation on investments........................... 1,144,595 1,823,535 4,277
----------- ----------- -----------
NET ASSETS, at value, applicable to Shares of Beneficial Interest
outstanding (Note 5)................................................. $5,172,158 $6,899,440 $1,052,156
=========== =========== ===========
CLASS A:
Net Assets........................................................... $5,129,524 $6,656,511 $1,050,657
----------- ----------- -----------
Shares Outstanding................................................... 344,082 340,243 103,341
----------- ----------- -----------
Net Asset Value and redemption value per share (net assets/shares
outstanding)....................................................... $ 14.91 $ 19.56 $ 10.17
=========== =========== ===========
Maximum offering price per share (net asset value plus sales charge
of 4.50% of offering price)........................................ $ 15.61 $ 20.48 $ 10.65
=========== =========== ===========
CLASS D:
Net Assets........................................................... $ 42,634 $ 242,929 $ 1,499
----------- ----------- -----------
Shares Outstanding................................................... 2,865 12,448 147*
----------- ----------- -----------
Net Asset Value, offering and redemption value per share (net
assets/shares outstanding)......................................... $ 14.88 $ 19.52 $ 10.17
=========== =========== ===========
</TABLE>
- ---------------
* Calculated net asset value differs from actual net asset value due to rounding
of fractional shares.
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE> 27
THE RESERVE PRIVATE EQUITY SERIES
STATEMENTS OF ASSETS AND LIABILITIES--MAY 31, 1996--(CONTINUED)
<TABLE>
<CAPTION>
RESERVE RESERVE RESERVE
INFORMED INVESTORS INTERNATIONAL LARGE-CAP
GROWTH FUND EQUITY FUND VALUE FUND
------------------ ------------- ---------------
<S> <C> <C> <C>
ASSETS:
Investment in securities, at value (cost $3,783,862, $2,944,304,
$1,115,010, respectively)........................................ $6,224,000 $ 3,275,290 $ 1,185,133
Cash............................................................... 188,426 224,557 50,557
Receivable for investment securities sold.......................... -- 152,147 --
Dividends receivable............................................... 553 4,256 1,583
--------------- ------------ ------------
Total assets..................................................... 6,412,979 3,656,250 1,237,273
--------------- ------------ ------------
LIABILITIES:
Accrued comprehensive fee.......................................... -- -- 5,046
Payable for investment securities purchased........................ -- 69,961 --
Payable for fund shares redeemed................................... 3,684 -- --
Other payables and accrued expenses................................ 1,232 1,765 1,167
--------------- ------------ ------------
Total liabilities................................................ 4,916 71,726 6,213
--------------- ------------ ------------
NET ASSETS........................................................... $6,408,063 $ 3,584,524 $ 1,231,060
=============== ============ ============
NET ASSETS CONSIST OF (NOTE 1):
Capital Stock (Par Value $.001 per share).......................... $ 446 $ 318 $ 112
Additional paid in capital......................................... 4,281,103 3,325,152 1,160,825
Accumulated net realized loss on investments and foreign currency
transactions..................................................... (313,624) (71,968) --
Net unrealized appreciation on investments and foreign currency
transactions..................................................... 2,440,138 331,022 70,123
--------------- ------------ ------------
NET ASSETS, at value, applicable to Shares of Beneficial Interest
outstanding (Note 5)............................................... $6,408,063 $ 3,584,524 $ 1,231,060
=============== ============ ============
CLASS A:
Net Assets......................................................... $6,393,103 $ 3,578,313 $ 1,231,060
--------------- ------------ ------------
Shares Outstanding................................................. 445,181 317,927 112,437
--------------- ------------ ------------
Net Asset Value and redemption value per share (net assets/shares
outstanding)..................................................... $ 14.36 $ 11.26 $ 10.95
=============== ========== ============
Maximum offering price per share (net asset value plus sales charge
of 4.50% of
offering price).................................................. $ 15.04 $ 11.79 $ 11.47
=============== =========== ============
CLASS D:
Net Assets......................................................... $ 14,960 $ 6,211 --
--------------- ------------ ------------
Shares Outstanding................................................. 1,044 552 --
--------------- ------------ ------------
Net Asset Value, offering and redemption value per share (net
assets/shares
outstanding)..................................................... $ 14.33 $ 11.25 --
=============== =========== ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE> 28
THE RESERVE PRIVATE EQUITY SERIES
STATEMENTS OF ASSETS AND LIABILITIES--MAY 31, 1996--(CONTINUED)
<TABLE>
<CAPTION>
RESERVE RESERVE
MID-CAP NORTH AMERICAN
GROWTH FUND GROWTH FUND
----------- --------------
<S> <C> <C>
ASSETS:
Investment in securities, at value (cost $1,284,178, $1,935,729,
respectively)................................................................ $1,449,144 $2,389,400
Cash........................................................................... 52,635 343,800
Receivable for fund shares sold................................................ -- 10,453
Dividends receivable........................................................... 738 1,361
----------- --------------
Total assets................................................................. 1,502,517 2,745,014
----------- --------------
LIABILITIES:
Payable for investment securities purchased.................................... -- 205,459
Payable for fund shares redeemed............................................... 3,393 --
----------- --------------
Total liabilities............................................................ 3,393 205,459
----------- --------------
NET ASSETS....................................................................... $1,499,124 $2,539,555
=========== =============
NET ASSETS CONSIST OF (NOTE 1):
Capital Stock (Par Value $.001 per share)...................................... $ 124 $ 207
Additional paid in capital..................................................... 1,334,034 2,169,202
Accumulated net realized loss on investments................................... -- (83,525)
Net unrealized appreciation on investments..................................... 164,966 453,671
----------- --------------
NET ASSETS, at value, applicable to Shares of Beneficial Interest outstanding
(Note 5)....................................................................... $1,499,124 $2,539,555
----------- --------------
CLASS A:
Net Assets..................................................................... $1,494,616 $ 131,226
----------- --------------
Shares Outstanding............................................................. 123,683 10,681
----------- --------------
Net Asset Value and redemption value per share (net assets/shares
outstanding)................................................................. $ 12.08 $ 12.29
=========== =============
Maximum offering price per share (net asset value plus sales charge of 4.50% of
offering price).............................................................. $ 12.65 $ 12.87
=========== =============
CLASS D:
Net Assets..................................................................... $ 4,508 $2,408,329
----------- --------------
Shares Outstanding............................................................. *374 196,199
----------- --------------
Net Asset Value, offering and redemption value per share (net assets/shares
outstanding)................................................................. $ 12.07 $ 12.27
=========== =============
</TABLE>
- ---------------
* Calculated net asset value differs from actual net asset value due to rounding
of fractional shares.
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE> 29
THE RESERVE PRIVATE EQUITY SERIES
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
RESERVE
GROWTH AND
RESERVE RESERVE INCOME FUND RESERVE
BLUE CHIP EMERGING ---------------- INFORMED INVESTORS
GROWTH FUND GROWTH FUND JANUARY 2, 1996 GROWTH FUND
------------ ------------ (COMMENCEMENT OF ------------------
YEAR ENDED YEAR ENDED OPERATIONS) TO YEAR ENDED
MAY 31, 1996 MAY 31, 1996 MAY 31, 1996 MAY 31, 1996
------------ ------------ ---------------- ------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends..................................... $ 29,978 $ 1,869 $ 10,672 $ 8,787
Interest...................................... -- -- 4,124 8,626
------------ ------------ -------- ------------------
Total investment income................... 29,978 1,869 14,796 17,413
EXPENSES
Comprehensive fee (Note 3).................... 55,581 51,177 4,527 141,751
12b-1 Fee (Note 4)
Class A..................................... 9,247 8,481 754 23,619
Class D..................................... 66 191 -- 26
------------ ------------ -------- ------------------
Total expenses............................ 64,894 59,849 5,281 165,396
------------ ------------ -------- ------------------
NET INVESTMENT INCOME (LOSS).................... (34,916) (57,980) 9,515 (147,983)
------------ ------------ -------- ------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Proceeds from sales of securities............. 2,573,864 1,201,292 28,149 13,684,285
Cost of securities sold....................... 2,575,909 1,120,746 28,260 12,834,099
------------ ------------ -------- ------------------
Net realized gain (loss) on investments (Note
1).......................................... (2,045) 80,546 (111) 850,186
Net unrealized appreciation on investments.... 975,733 1,655,638 4,277 1,109,280
------------ ------------ -------- ------------------
Net realized and unrealized gain on
investments................................. 973,688 1,736,184 4,166 1,959,466
------------ ------------ -------- ------------------
Net increase in net assets resulting from
operations.................................. $ 938,772 $1,678,204 $ 13,681 $ 1,811,483
============ ============ ================= ================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE> 30
THE RESERVE PRIVATE EQUITY SERIES
STATEMENT OF OPERATIONS--(CONTINUED)
<TABLE>
<CAPTION>
RESERVE
INTERNATIONAL RESERVE
EQUITY FUND LARGE-CAP
---------------- VALUE FUND RESERVE RESERVE
JULY 13, 1995 --------------- MID-CAP NORTH AMERICAN
(COMMENCEMENT JANUARY 2, 1996 GROWTH FUND GROWTH FUND
OF OPERATIONS) (COMMENCEMENT ------------ --------------
TO OF OPERATIONS) YEAR ENDED YEAR ENDED
MAY 31, 1996 TO MAY 31, 1996 MAY 31, 1996 MAY 31, 1996
---------------- --------------- ------------ --------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends....................................... $ 18,854* $ 4,796 $ 1,923 $ 8,135
Interest........................................ 1,688 -- -- --
---------------- --------------- ------------ --------------
Total investment income....................... 20,542 4,796 1,923 8,135
EXPENSES
Comprehensive fee (Note 3)...................... 33,158 5,046 22,987 24,506
12b-1 Fee (Note 4)
Class A....................................... 4,734 841 3,830 17
Class D....................................... 12 -- 5 16,268
---------------- --------------- ------------ --------------
Total expenses.................................... 37,904 5,887 26,822 40,791
Less fees waived.............................. (217) -- -- --
---------------- --------------- ------------ --------------
Net Expenses.................................. 37,687 5,887 26,822 40,791
---------------- --------------- ------------ --------------
NET INVESTMENT LOSS............................... (17,145) (1,091) (24,899) (32,656)
---------------- --------------- ------------ --------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Proceeds from sales of securities............... 1,374,797 -- 3,071,543 1,272,486
Cost of securities sold......................... 1,446,765 -- 3,054,352 1,356,011
---------------- --------------- ------------ --------------
Net realized gain (loss) on investments and
foreign currency transactions (Note 1)........ (71,968) -- 17,191 (83,525)
Net unrealized appreciation on investments and
foreign currency transactions................. 331,022 70,123 164,966 453,671
---------------- --------------- ------------ --------------
Net realized and unrealized gain on investments
and foreign currency transactions............. 259,054 70,123 182,157 370,146
---------------- --------------- ------------ --------------
Net increase in net assets resulting from
operations.................................... $ 241,909 $69,032 $ 157,258 $ 337,490
=============== ============== ============ =============
</TABLE>
- ---------------
* Net of foreign taxes withheld of $1,774
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE> 31
THE RESERVE PRIVATE EQUITY SERIES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
RESERVE GROWTH
RESERVE BLUE CHIP GROWTH FUND AND INCOME FUND
-------------------------------- ----------------
OCTOBER 28, 1994 JANUARY 2, 1996
(COMMENCEMENT OF (COMMENCEMENT OF
YEAR ENDED OPERATIONS) TO OPERATIONS) TO
MAY 31, 1996 MAY 31, 1995 MAY 31, 1996
------------ ---------------- ----------------
<S> <C> <C> <C>
INCREASE IN NET ASSETS FROM INVESTMENT OPERATIONS:
Net investment income (loss).................................. $ (34,916) $ (5,361) $ 9,515
Net realized gain (loss) from investments..................... (2,045) 92,552 (111)
Net unrealized appreciation from investments.................. 975,733 168,862 4,277
------------ ---------------- ----------------
Net increase in net assets resulting from operations.......... 938,772 256,053 13,681
------------ ---------------- ----------------
Distributions to shareholders from net realized gain on
investments-- Class A....................................... (164,889) -- --
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5)
Net proceeds from sales of shares............................. 2,757,098 2,257,822 1,044,319
Reinvestment of distributions................................. 164,889 -- --
Cost of shares redeemed....................................... (517,167) (520,420) (5,844)
------------ ---------------- ----------------
Net increase in net assets resulting from capital share
transactions................................................ 2,404,820 1,737,402 1,038,475
------------ ---------------- ----------------
Net increase in net assets.................................... 3,178,703 1,993,455 1,052,156
NET ASSETS:
Beginning of period........................................... 1,993,455 -- --
------------ ---------------- ----------------
End of period (including undistributed net investment income
of $0, $0, and $9,515, respectively)........................ $5,172,158 $1,993,455 $1,052,156
============ ================= =================
</TABLE>
<TABLE>
<CAPTION>
RESERVE
RESERVE EMERGING GROWTH FUND INTERNATIONAL
-------------------------------- EQUITY FUND
NOVEMBER 14, ----------------
1994 JULY 13, 1995
(COMMENCEMENT OF (COMMENCEMENT OF
YEAR ENDED OPERATIONS) TO OPERATIONS) TO
MAY 31, 1996 MAY 31, 1995 MAY 31, 1996
------------ ---------------- ----------------
<S> <C> <C> <C>
INCREASE IN NET ASSETS FROM INVESTMENT OPERATIONS:
Net investment loss........................................... $ (57,980) $ (9,569) $ (17,145)
Net realized gain (loss) from investments and foreign currency
transactions................................................ 80,546 65,542 (71,968)
Net unrealized appreciation from investments and foreign
currency transactions....................................... 1,655,638 167,897 331,022
------------ ---------------- ----------------
Net increase in net assets resulting from operations.......... 1,678,204 223,870 241,909
------------ ---------------- ----------------
Distributions to shareholders from net realized gain on
investments-- Class A....................................... (93,899) -- --
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5)
Net proceeds from sales of shares............................. 4,281,980 2,268,282 3,465,234
Reinvestment of distributions................................. 93,770 -- --
Cost of shares redeemed....................................... (301,485) (1,251,282) (122,619)
------------ ---------------- ----------------
Net increase in net assets resulting from capital share
transactions................................................ 4,074,265 1,017,000 3,342,615
------------ ---------------- ----------------
Net increase in net assets.................................... 5,658,570 1,240,870 3,584,524
NET ASSETS:
Beginning of period........................................... 1,240,870 -- --
------------ ---------------- ----------------
End of period................................................. $6,899,440 $1,240,870 $3,584,524
============ ================= =================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE> 32
THE RESERVE PRIVATE EQUITY SERIES
STATEMENTS OF CHANGES IN NET ASSETS--(CONTINUED)
<TABLE>
<CAPTION>
RESERVE INFORMED RESERVE
INVESTORS GROWTH FUND LARGE-CAP VALUE
-------------------------------- FUND
DECEMBER 28, ----------------
1994 JANUARY 2, 1996
(COMMENCEMENT OF (COMMENCEMENT OF
YEAR ENDED OPERATIONS) TO OPERATIONS) TO
MAY 31, 1996 MAY 31, 1995 MAY 31, 1996
------------ ---------------- ----------------
<S> <C> <C> <C>
INCREASE IN NET ASSETS FROM INVESTMENT OPERATIONS:
Net investment loss....................................... $ (147,983) $ (38,948) $ (1,091)
Net realized gain (loss) from investments................. 850,186 (220,490) --
Net unrealized appreciation from investments.............. 1,109,280 1,330,859 70,123
------------ ---------------- ----------------
Net increase in net assets resulting from operations...... 1,811,483 1,071,421 69,032
------------ ---------------- ----------------
Distributions to shareholders from net realized gain on
investments-- Class A................................... (795,337) -- --
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5)
Net proceeds from sales of shares......................... 6,254,939 6,422,521 1,165,180
Reinvestment of distributions............................. 790,060 -- --
Cost of shares redeemed................................... (8,490,282) (656,742) (3,152)
------------ ---------------- ----------------
Net increase (decrease) in net assets resulting from
capital share transactions.............................. (1,445,283) 5,765,779 1,162,028
------------ ---------------- ----------------
Net increase (decrease) in net assets..................... (429,137) 6,837,200 1,231,060
NET ASSETS:
Beginning of period....................................... 6,837,200 -- --
------------ ---------------- ----------------
End of period............................................. $6,408,063 $6,837,200 $1,231,060
============ ================= =================
</TABLE>
<TABLE>
<CAPTION>
RESERVE RESERVE
MID-CAP NORTH AMERICAN
GROWTH FUND GROWTH FUND
--------------- --------------
YEAR ENDED YEAR ENDED
MAY 31, 1996 MAY 31, 1996
--------------- --------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM INVESTMENT OPERATIONS:
Net investment loss......................................................... $ (24,899) $ (32,656)
Net realized gain (loss) from investments................................... 17,191 (83,525)
Net unrealized appreciation from investments................................ 164,966 453,671
--------------- --------------
Net increase in net assets resulting from operations........................ 157,258 337,490
--------------- --------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5)
Net proceeds from sales of shares........................................... 2,008,337 2,345,759
Cost of shares redeemed..................................................... (666,471) (143,694)
--------------- --------------
Net increase in net assets resulting from capital share transactions........ 1,341,866 2,202,065
--------------- --------------
Net increase in net assets.................................................. 1,499,124 2,539,555
NET ASSETS:
Beginning of period......................................................... -- --
--------------- --------------
End of period............................................................... $ 1,499,124 $2,539,555
============== =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE> 33
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS--MAY 31, 1996
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Reserve Private Equity Series (the "Trust") consists of the following
funds: Reserve Blue Chip Growth Fund, Reserve Emerging Growth Fund, Reserve
Growth and Income Fund, Reserve Informed Investors Growth Fund, Reserve
International Equity Fund, Reserve Large-Cap Value Fund, Reserve Mid-Cap
Growth Fund, and Reserve North American Growth Fund. The Trust was formed
under Delaware law as a Delaware business trust. The Trust is registered
under the Investment Company Act of 1940, as amended, as a non-diversified
open-end management investment company. There are an unlimited number of
shares of beneficial interest of $.001 par value authorized in each series.
The Trust offers both Class A and Class D shares of each Fund. Class A shares
are sold with an initial sales charge and Class D shares are sold without an
initial sales charge. Both classes of shares have identical voting, dividend,
liquidation and other rights, and the same terms and conditions, except that
each class bears different distribution expenses and has exclusive voting
rights with respect to its distribution plan.
The accounting policies summarized below are consistently followed in
preparation of the financial statements in conformity with generally accepted
accounting principles.
SECURITY VALUATION
Portfolio securities are stated at value. A security listed or traded on an
exchange is valued at its last sale price on the exchange where the security
is principally traded or, lacking any sales on a particular day, the security
is valued at the mean between the closing bid and asked prices on that day.
Each security traded in the over-the-counter market is valued at the mean
between its quoted bid and asked prices. Where market quotations are not
readily available, the securities are valued at their fair value as
determined in good faith by or under direction of the Trustees.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded on the trade date. Dividend income and
distributions to shareholders are recorded on the ex-dividend dates. Interest
income is accrued daily. Realized gains and losses from securities
transactions and unrealized appreciation or depreciation of securities are
reported on the identified cost basis for both financial statement and
federal income tax purposes.
Income and capital gain distributions are determined in accordance with
federal income tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due to differing
treatments for net operating losses and the recognition of net realized gains
and losses. Accordingly, the effect of differing financial reporting and
federal income tax treatments have been reclassified among the components of
net assets at May 31, 1996 as follows:
<TABLE>
<CAPTION>
INCREASE (DECREASE)
----------------------------------------
UNDISTRIBUTED ACCUMULATED
NET INVESTMENT REALIZED
CAPITAL INCOME GAIN (LOSS)
------- -------------- -----------
<S> <C> <C> <C>
Reserve Blue Chip Growth Fund......................................... 5,361 34,916 (40,277)
Reserve Emerging Growth Fund.......................................... 4,689 57,980 (62,669)
Reserve Informed Investors Growth Fund................................ -- 147,983 (147,983)
Reserve International Equity Fund..................................... (17,145) 17,145 --
Reserve Large-Cap Value Equity Fund................................... (1,091) 1,091 --
Reserve Mid-Cap Growth Fund........................................... (7,708) 24,899 (17,191)
Reserve North American Growth Fund.................................... (32,656) 32,656 --
</TABLE>
These reclassifications had no effect on net investment income, net realized
gain on investments, or net assets for the year ended May 31, 1996.
FOREIGN CURRENCY TRANSLATION
With respect to the Reserve International Equity Fund, assets and liabilities
denominated in a foreign currency are translated into U.S. dollars using
exchange rates on the valuation date. Purchases and sales of securities,
expense payments and income receipts are translated into U.S. dollars using
the exchange rate on the transaction date. The Trust does not segregate that
portion of the results of operations resulting from changes in foreign
exchange rates from the portion resulting from changes in market prices of
securities held; both are included in net realized and unrealized gains or
losses on investments and foreign currency transactions.
33
<PAGE> 34
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS--MAY 31, 1996--(CONTINUED)
FEDERAL INCOME TAXES
It is the Trust's policy for each Fund to continue to qualify as a regulated
investment company under the Internal Revenue Code of 1986, as amended, by
complying with the requirements of the Internal Revenue Code applicable to
regulated investment companies, and to distribute substantially all of its
taxable income, including net realized capital gains to its shareholders.
Accordingly, no federal income tax provision is required.
For federal income tax purposes, the following Funds indicated below had
capital loss carryforwards at May 31, 1996, which are available to offset
future realized capital gains, if any:
<TABLE>
<CAPTION>
CAPITAL LOSS EXPIRATION
CARRYFORWARD YEAR
------------ -----------
<S> <C> <C>
Reserve Growth and Income Fund..................................................... $ 111 2004
Reserve International Equity Fund.................................................. 71,968 2004
Reserve North American Growth Fund................................................. 83,525 2004
</TABLE>
2. INVESTMENT ACTIVITY
The aggregate cost of purchases and proceeds from sales of investments
(excluding short-term investments) for the period ended May 31, 1996, were as
follows:
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE
RESERVE FUND PURCHASES SALES
------------------------------------------------------------------------------- ----------- -----------
<S> <C> <C>
Blue Chip Growth Fund.......................................................... $ 4,629,931 $ 2,573,982
Emerging Growth Fund........................................................... 4,850,242 1,201,292
Growth and Income Fund......................................................... 822,642 28,263
Informed Investors Growth Fund................................................. 11,122,332 13,684,285
International Equity Fund...................................................... 4,384,944 1,368,647
Large-Cap Value Fund........................................................... 1,115,010 --
Mid-Cap Growth Fund............................................................ 4,338,530 3,071,543
North American Growth Fund..................................................... 3,291,738 1,272,486
</TABLE>
3. INVESTMENT MANAGEMENT AGREEMENT
Reserve Management Company, Inc. (RMCI), serves as the Funds' investment
adviser and pays substantially all ordinary operating expenses of the Funds
for which it receives a comprehensive fee at an annual rate of 1.50% of the
average daily net assets of each Fund other than the International Equity
Fund for which it receives 1.75%. RMCI is currently waiving a portion of its
comprehensive fee.
For each Fund, RMCI has entered into an Investment Subadvisory Agreement (the
"Subadvisory Agreement") with the Sub-Advisers. It is the responsibility of a
Sub-Adviser to make the day-to-day investment decision of the Funds and to
place the purchase and sales orders for securities transactions, subject in
all cases to the general supervision of RMCI. For services under each
Subadvisory Agreement, RMCI pays a fee up to an annual rate equal to the
percentages specified in the table below of the corresponding Funds' average
net assets.
<TABLE>
<CAPTION>
SUB-ADVISER'S
RESERVE FUND PORTFOLIO SUB-ADVISER FEE
----------------------------------------- ------------------------------------------------- -------------
<S> <C> <C>
Blue Chip Growth Fund Trainer, Wortham & Company, Inc. 0.75%
Emerging Growth Fund Roanoke, Asset Management Corp. 0.75%
Growth and Income Fund Kenneth J. Gerbino & Company 0.75%
Informed Investors Growth Fund T. H. Fitzgerald & Company 0.75%
International Equity Fund Pinnacle Associates Limited 0.875%
Large-Cap Value Fund Siphron Capital Management 0.75%
Mid-Cap Growth Fund Cambridge Equity Advisors (6/1/95-4/18/96) 0.75%
Southern Capital Advisors (4/19/96-5/31/96) 0.75%
North American Growth Fund Southern Capital Advisors 0.75%
</TABLE>
Trainer, Wortham & Company, Inc. owns 33% of the outstanding shares of the
Reserve Blue Chip Growth Fund at May 31, 1996.
34
<PAGE> 35
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS--MAY 31, 1996--(CONTINUED)
4. DISTRIBUTION ASSISTANCE
Pursuant to a Distribution Plan under Rule 12b-1, the Funds will make
payments to Resrv Partners, Inc. (RPI), the Funds' distributor of .25% per
annum for Class A and 1.00% per annum for Class D of the average daily net
assets of shareholder accounts as to which the payee has rendered
distribution assistance. During the period, the Funds paid distribution
expenses to RPI as follows:
<TABLE>
<CAPTION>
RESERVE FUND CLASS A CLASS D
------------------------------------------------------------------------------------- ------- -------
<S> <C> <C>
Blue Chip Growth Fund................................................................ $ 9,247 $ 66
Emerging Growth Fund................................................................. 8,481 192
Growth and Income Fund............................................................... 754 0
Informed Investors Growth Fund....................................................... 23,619 26
International Equity Fund............................................................ 4,734 12
Large-Cap Value Fund................................................................. 841 0
Mid-Cap Growth Fund.................................................................. 3,830 5
North American Growth Fund........................................................... 17 16,268
</TABLE>
As of May 31, 1996, RPI owned 4%, 24%, 31%, 21%, 6%, and 24% of the Reserve
Emerging Growth Fund, Reserve Growth and Income Fund, Reserve International
Equity Fund, Reserve Large-Cap Value Fund, Reserve Mid-Cap Growth Fund and
Reserve North American Growth Fund, respectively.
5. CAPITAL SHARE TRANSACTIONS
Transactions in capital stock of each Fund for the period ended May 31, 1996,
were as follows:
<TABLE>
<CAPTION>
CLASS A CLASS D
--------------------- -----------------
FEBRUARY 13, 1996
(COMMENCEMENT
YEAR ENDED OF OPERATIONS) TO
MAY 31, 1996 MAY 31, 1996
--------------------- -----------------
RESERVE BLUE CHIP GROWTH FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------- ------- ---------- ------ -------
<S> <C> <C> <C> <C>
Sold............................................................... 203,145 $2,716,393 2,865 $40,705
Reinvested......................................................... 12,752 164,889 -- --
Redeemed........................................................... (37,574) (517,167) -- --
------- ---------- ------ -------
Net increase....................................................... 178,323 $2,364,115 2,865 $40,705
======== ========== ====== ========
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D
--------------------- ------------------
FEBRUARY 26, 1996
(COMMENCEMENT
YEAR ENDED OF OPERATIONS) TO
MAY 31, 1996 MAY 31, 1996
--------------------- ------------------
RESERVE EMERGING GROWTH FUND SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------- ------- ---------- ------ --------
<S> <C> <C> <C> <C>
Sold................................................................ 251,367 $4,052,411 12,448 $229,569
Reinvested.......................................................... 5,916 93,770 -- --
Redeemed............................................................ (18,653) (301,485) -- --
------- ---------- ------ --------
Net increase........................................................ 238,630 $3,844,696 12,448 $229,569
======== ========== ====== =========
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D
--------------------- ----------------
MAY 13, 1996
JANUARY 2, 1996 (COMMENCEMENT
(COMMENCEMENT OF OPERATIONS)
OF OPERATIONS) TO TO
MAY 31, 1996 MAY 31, 1996
--------------------- ----------------
RESERVE GROWTH AND INCOME FUND SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------- ------- ---------- ------ ------
<S> <C> <C> <C> <C>
Sold................................................................ 103,914 $1,042,819 147 $1,500
Redeemed............................................................ (573) (5,844) -- --
------- ---------- ------ ------
Net increase........................................................ 103,341 $1,036,975 147 $1,500
======== ========== ====== ======
</TABLE>
35
<PAGE> 36
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS--MAY 31, 1996--(CONTINUED)
<TABLE>
<CAPTION>
CLASS A CLASS D
----------------------- ------------------
FEBRUARY 13, 1996
(COMMENCEMENT
YEAR ENDED OF OPERATIONS) TO
MAY 31, 1996 MAY 31, 1996
----------------------- ------------------
RESERVE INFORMED INVESTORS GROWTH FUND SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------- -------- ----------- ------ --------
<S> <C> <C> <C> <C>
Sold............................................................. 458,428 $ 6,230,788 1,953 $ 24,151
Reinvested....................................................... 56,312 790,060 -- --
Redeemed......................................................... (639,631) (8,479,206) (909) (11,076)
-------- ----------- ------ --------
Net increase..................................................... (124,891) $(1,458,358) 1,044 $ 13,075
========= ============ ====== =========
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D
--------------------- ----------------
MARCH 11, 1996
JULY 13, 1995 (COMMENCEMENT
(COMMENCEMENT OF OPERATIONS)
OF OPERATIONS) TO TO
MAY 31, 1996 MAY 31, 1996
--------------------- ----------------
RESERVE INTERNATIONAL EQUITY FUND SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------- ------- ---------- ------ ------
<S> <C> <C> <C> <C>
Sold............................................................. 329,964 $3,459,234 552 $6,000
Redeemed......................................................... (12,037) (122,619) -- --
------- ---------- ------ ------
Net increase..................................................... 317,927 $3,336,615 552 $6,000
======== ========== ====== ======
</TABLE>
<TABLE>
<CAPTION>
CLASS A
---------------------
JANUARY 2, 1996
(COMMENCEMENT
OF OPERATIONS) TO
MAY 31, 1996
---------------------
RESERVE LARGE-CAP VALUE FUND SHARES AMOUNT
- ----------------------------------------------------------------- ------- ----------
<S> <C> <C>
Sold............................................................. 112,729 $1,165,180
Redeemed......................................................... (292) (3,152)
------- ----------
Net increase..................................................... 112,437 $1,162,028
======== ==========
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D
--------------------- ----------------
MARCH 29, 1996
(COMMENCEMENT
OF OPERATIONS)
YEAR ENDED TO
MAY 31, 1996 MAY 31, 1996
--------------------- ----------------
RESERVE MID-CAP GROWTH FUND SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------- ------- ---------- ------ ------
<S> <C> <C> <C> <C>
Sold............................................................. 183,603 $2,004,087 374 $4,250
Redeemed......................................................... (59,920) (666,471) -- --
------- ---------- ------ ------
Net increase..................................................... 123,683 $1,337,616 374 $4,250
======== ========== ====== ======
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D
------------------ ---------------------
MARCH 13, 1996
(COMMENCEMENT
OF OPERATIONS) TO YEAR ENDED
MAY 31, 1996 MAY 31, 1996
------------------ ---------------------
RESERVE NORTH AMERICAN GROWTH FUND SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------- ------ -------- ------- ----------
<S> <C> <C> <C> <C>
Sold............................................................. 11,491 $139,077 207,997 $2,206,682
Redeemed......................................................... (810) (10,000) (11,798) (133,694)
------ -------- ------- ----------
Net increase..................................................... 10,681 $129,077 196,199 $2,072,988
====== ========= ======== ==========
</TABLE>
36
<PAGE> 37
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS--MAY 31, 1996--(CONTINUED)
Transactions in capital stock of each Fund for the period ended May 31, 1995,
were as follows:
<TABLE>
<CAPTION>
OCTOBER 28, 1994
(COMMENCEMENT
OF OPERATIONS) TO
MAY 31, 1995
-----------------------
RESERVE BLUE CHIP GROWTH FUND SHARES AMOUNT
- ----------------------------------------------------------------------------------- ------- ----------
<S> <C> <C>
Sold............................................................................... 214,923 $2,257,822
Redeemed........................................................................... (49,164) (520,420)
------- ----------
Net increase....................................................................... 165,759 $1,737,402
======== ==========
</TABLE>
<TABLE>
<CAPTION>
NOVEMBER 14, 1994
(COMMENCEMENT
OF OPERATIONS) TO
MAY 31, 1995
------------------------
RESERVE EMERGING GROWTH FUND SHARES AMOUNT
- ----------------------------------------------------------------------------------- -------- ----------
<S> <C> <C>
Sold............................................................................... 218,209 $2,268,282
Redeemed........................................................................... (116,596) (1,251,282)
-------- ----------
Net increase....................................................................... 101,613 $1,017,000
========= ==========
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 28, 1994
(COMMENCEMENT
OF OPERATIONS) TO
MAY 31, 1995
-----------------------
RESERVE INFORMED INVESTORS GROWTH FUND SHARES AMOUNT
- ----------------------------------------------------------------------------------- ------- ----------
<S> <C> <C>
Sold............................................................................... 634,326 $6,422,521
Redeemed........................................................................... (64,254) (656,742)
------- ----------
Net increase....................................................................... 570,072 $5,765,779
======== ==========
</TABLE>
6. 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 date of the
financial statements and the reported amounts of income and expenses during
the reporting period. Actual results could differ from those estimates.
37
<PAGE> 38
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS--MAY 31,
1996--(CONTINUED)
7. SUPPLEMENTARY INFORMATION (FOR EACH SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
CLASS D
CLASS A ----------------
-------------------------------- FEBRUARY 13,
OCTOBER 28, 1994 1996
(COMMENCEMENT OF (COMMENCEMENT OF
YEAR ENDED OPERATIONS) TO OPERATIONS) TO
RESERVE BLUE CHIP GROWTH FUND MAY 31, 1996 MAY 31, 1995 MAY 31, 1996
- ------------------------------------------------------------ ------------ ---------------- ----------------
<S> <C> <C> <C>
NET ASSET VALUE, beginning of period........................ $12.03 $10.00 $13.49
------ ------ ------
Income from investment operations
Net investment loss....................................... (.10) (.03) (.04)
Net realized and unrealized gain.......................... 3.62 2.06 1.43
------ ------ ------
Total from investment operations............................ 3.52 2.03 1.39
Less distribution from net realized gain.................... (.64) -- --
------ ------ ------
NET ASSET VALUE, end of period.............................. $14.91 $12.03 $14.88
====== ====== ======
Total Return................................................ 30.10% 20.30%(2) 10.30%(2)
RATIOS/SUPPLEMENTAL DATA
Net assets in thousands, end of period...................... $5,130 $1,993 $ 43
Ratio of expenses to average net assets before waiver....... 1.75% 1.75%(1) 2.50%(1)
Ratio of expenses to average net assets, net of waiver...... 1.75% 1.73%(1) 2.50%(1)
Ratio of net investment loss to average net assets, before
waiver.................................................... (0.94)% (0.72)%(1) (1.70)%(1)
Ratio of net investment loss to average net assets, net of
waiver.................................................... (0.94)% (0.70)%(1) (1.70)%(1)
Portfolio turnover rate..................................... 72% 68% 72%
Average commission per share on Macromedia portfolio
transactions.............................................. $ 0.06 N/A $ 0.06
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D
-------------------------------- ----------------
NOVEMBER 14, FEBRUARY 26,
1994 1996
(COMMENCEMENT OF (COMMENCEMENT OF
YEAR ENDED OPERATIONS) TO OPERATIONS) TO
RESERVE EMERGING GROWTH FUND MAY 31, 1996 MAY 31, 1995 MAY 31, 1996
- ------------------------------------------------------------ ------------ ---------------- ----------------
<S> <C> <C> <C>
NET ASSET VALUE, beginning of period........................ $12.21 $10.00 $16.88
------ ------ ------
Income from investment operations
Net investment loss....................................... (.17) (.09) (.04)
Net realized and unrealized gain.......................... 8.05 2.30 2.68
------ ------ ------
Total from investment operations............................ 7.88 2.21 2.64
Less distribution from net realized gain.................... (0.53) -- --
------ ------ ------
NET ASSET VALUE, end of period.............................. $19.56 $12.21 $19.52
====== ====== ======
Total Return................................................ 65.55% 22.10%(2) 15.64%(2)
RATIOS/SUPPLEMENTAL DATA
Net assets in thousands, end of period...................... $6,657 $1,241 $ 243
Ratio of expenses to average net assets..................... 1.75% 1.75%(1) 2.50%(1)
Ratio of net investment loss to average net assets.......... (1.70)% (1.62)%(1) (2.48)%(1)
Portfolio turnover rate..................................... 38% 43% 38%
Average commission per share on portfolio transactions...... $ 0.01 N/A $ 0.01
</TABLE>
- ---------------
(1) Annualized
(2) Total return is not annualized, and does not reflect impact of sales load.
38
<PAGE> 39
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS--MAY 31, 1996--(CONTINUED)
<TABLE>
<CAPTION>
CLASS A CLASS D
---------------- ----------------
JANUARY 2, 1996 MAY 13, 1996
(COMMENCEMENT OF (COMMENCEMENT OF
OPERATIONS) TO OPERATIONS) TO
RESERVE GROWTH AND INCOME FUND MAY 31, 1996 MAY 31, 1996
- ------------------------------------------------------------------------- ---------------- ----------------
<S> <C> <C>
NET ASSET VALUE, beginning of period..................................... $10.00 $10.19
------ ------
Income from investment operations
Net investment income (loss)........................................... 0.09 0.00
Net realized and unrealized gain (loss)................................ 0.08 (0.02)
------ ------
Total from investment operations......................................... 0.17 (0.02)
------ ------
NET ASSET VALUE, end of period........................................... $10.17 $10.17
====== ======
Total Return............................................................. 1.70%(2) (0.2)%(2)
RATIOS/SUPPLEMENTAL DATA
Net assets in thousands, end of period................................... $1,051 $ 1
Ratio of expenses to average net assets.................................. 1.75%(1) 2.23%(1)
Ratio of net investment income to average net assets..................... 3.15%(1) 0.00%(1)
Portfolio turnover rate.................................................. 17% 17%
Average commission per share on portfolio transactions................... $ 0.08 $ 0.08
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D
---------------- ----------------
JULY 13, 1995 MARCH 11, 1996
(COMMENCEMENT OF (COMMENCEMENT OF
OPERATIONS) TO OPERATIONS) TO
RESERVE INTERNATIONAL EQUITY FUND MAY 31, 1996 MAY 31, 1996
- ------------------------------------------------------------------------- ---------------- ----------------
<S> <C> <C>
NET ASSET VALUE, beginning of period..................................... $10.00 $10.79
------ ------
Income from investment operations
Net investment loss.................................................... (0.05) (0.01)
Net realized and unrealized gain....................................... 1.31 0.47
------ ------
Total from investment operations......................................... 1.26 0.46
------ ------
NET ASSET VALUE, end of period........................................... $11.26 $11.25
====== ======
Total Return............................................................. 12.60%(2) 4.26%(2)
RATIOS/SUPPLEMENTAL DATA
Net assets in thousands, end of period................................... $3,578 $ 6
Ratio of expenses to average net assets before waiver.................... 2.00%(1) 2.75%(1)
Ratio of expenses to average net assets, net of waiver................... 1.99%(1) 2.75%(1)
Ratio of net investment loss to average net assets, before waiver........ (0.92)%(1) (0.70)%(1)
Ratio of net investment loss to average net assets, net of waiver........ (0.91)%(1) (0.70)%(1)
Portfolio turnover rate.................................................. 70% 70%
Average commission per share on portfolio transactions................... $ 0.02 $ 0.02
</TABLE>
- ---------------
(1) Annualized
(2) Total return is not annualized, and does not reflect impact of sales load.
39
<PAGE> 40
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS--MAY 31, 1996--(CONTINUED)
<TABLE>
<CAPTION>
CLASS A CLASS D
--------------------------------- ----------------
DECEMBER 28, 1994 MARCH 22, 1996
(COMMENCEMENT (COMMENCEMENT OF
YEAR ENDED OF OPERATIONS) TO OPERATIONS) TO
RESERVE INFORMED INVESTORS GROWTH FUND MAY 31, 1996 MAY 31, 1995 MAY 31, 1996
- ------------------------------------------------------------ ------------ ----------------- ----------------
<S> <C> <C> <C>
NET ASSET VALUE, beginning of period........................ $11.99 $ 10.00 $12.29
------ ------ ------
Income from investment operations
Net investment loss....................................... (0.33) (.07) (.06)
Net realized and unrealized gain.......................... 3.87 2.06 2.10
------ ------ ------
Total from investment operations............................ 3.54 1.99 2.04
Less distribution from net realized gain.................... (1.17) -- --
------ ------ ------
NET ASSET VALUE, end of period.............................. $14.36 $ 11.99 $14.33
====== ====== ======
Total Return................................................ 29.75% 19.90%(2) 16.60%(2)
RATIOS/SUPPLEMENTAL DATA
Net assets in thousands, end of period...................... $6,393 $ 6,837 $ 15
Ratio of expenses to average net assets..................... 1.75% 1.75%(1) 2.50%(1)
Ratio of net investment loss to average net assets.......... (1.57)% (1.62)%(1) (2.32)%(1)
Portfolio turnover rate..................................... 132% 59% 132%
Average commission per share on portfolio transactions...... $ 0.05 N/A $ 0.05
</TABLE>
<TABLE>
<CAPTION>
CLASS A
----------------
JANUARY 2, 1996
(COMMENCEMENT OF
OPERATIONS) TO
RESERVE LARGE-CAP VALUE FUND MAY 31, 1996
- ------------------------------------------------------------------------------------------ ----------------
<S> <C>
NET ASSET VALUE, beginning of period...................................................... $10.00
------
Income from investment operations
Net investment loss..................................................................... (0.01)
Net realized and unrealized gain........................................................ 0.96
------
Total from investment operations.......................................................... 0.95
------
NET ASSET VALUE, end of period............................................................ $10.95
======
Total Return.............................................................................. 9.50%(2)
RATIOS/SUPPLEMENTAL DATA
Net assets in thousands, end of period.................................................... $1,231
Ratio of expenses to average net assets................................................... 1.75%(1)
Ratio of net investment loss to average net assets........................................ (0.32)%(1)
Portfolio turnover rate................................................................... 0%
Average commission per share on portfolio transactions.................................... $ 0.08
</TABLE>
- ---------------
(1) Annualized
(2) Total return is not annualized, and does not reflect impact of sales load.
40
<PAGE> 41
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS--MAY 31, 1996--(CONTINUED)
<TABLE>
<CAPTION>
CLASS A CLASS D
------------ ----------------
MARCH 29, 1996
(COMMENCEMENT OF
YEAR ENDED OPERATIONS) TO
RESERVE MID-CAP GROWTH FUND MAY 31, 1996 MAY 31, 1996
- ----------------------------------------------------------------------------- ------------ ----------------
<S> <C> <C>
NET ASSET VALUE, beginning of period......................................... $10.00 $11.03
------ ------
Income from investment operations
Net investment loss........................................................ (.20) (.03)
Net realized and unrealized gain........................................... 2.28 1.07
------ ------
Total from investment operations............................................. 2.08 1.04
------ ------
NET ASSET VALUE, end of period............................................... $12.08 $12.07
====== ======
Total Return................................................................. 20.80% 9.43%(2)
RATIOS/SUPPLEMENTAL DATA
- ------------------------
Net assets in thousands, end of period....................................... $1,495 $ 5
Ratio of expenses to average net assets...................................... 1.75% 2.50%(1)
Ratio of net investment loss to average net assets........................... (1.62)% (2.04)%
Portfolio turnover rate...................................................... 225% 225%
Average commission per share on portfolio transactions....................... $ 0.06 $ 0.06
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D
---------------- ------------
MARCH 13, 1996
(COMMENCEMENT OF
OPERATIONS) TO YEAR ENDED
RESERVE NORTH AMERICAN GROWTH FUND MAY 31, 1996 MAY 31, 1996
- ----------------------------------------------------------------------------- ---------------- ------------
<S> <C> <C>
NET ASSET VALUE, beginning of period......................................... $10.94 $10.00
------ ------
Income from investment operations
Net investment loss........................................................ (0.01) (0.17)
Net realized and unrealized gain........................................... 1.36 2.44
------ ------
Total from investment operations............................................. 1.35 2.27
------ ------
NET ASSET VALUE, end of period............................................... $12.29 $12.27
====== ======
Total Return................................................................. 12.34%(2) 22.70%
RATIOS/SUPPLEMENTAL DATA
- ------------------------
Net assets in thousands, end of period....................................... $ 131 $2,408
Ratio of expenses to average net assets...................................... 1.74%(1) 2.49%(1)
Ratio of net investment loss to average net assets........................... (0.97)%(1) (2.00)%(1)
Portfolio turnover rate...................................................... 85% 85%
Average commission per share on portfolio transactions....................... $ 0.04 $ 0.04
</TABLE>
- ---------------
(1) Annualized
(2) Total return is not annualized, and does not reflect impact of sales load.
41
<PAGE> 42
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<PAGE> 43
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