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Previous: HOLLYWOOD ENTERTAINMENT CORP, S-3, 1997-07-30 |
Next: HOWARD RICE NEMEROVSKI CANADY FALK & RABKIN, SC 13D/A, 1997-07-30 |
<PAGE> 1
REPORT OF INDEPENDENT ACCOUNTANTS
To The Shareholders and 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 Convertible Securities Fund, Reserve Emerging Growth Fund,
Reserve Informed Investors Growth Fund, Reserve International Equity Fund,
Reserve Large-Cap Value Fund, and Reserve Mid-Cap Growth Fund (formerly Reserve
North American Growth Fund)) (collectively the "Trust"), including the schedules
of portfolio investments, as of May 31, 1997, 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, 1997, 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, 1997,
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 27, 1997
<PAGE> 2
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS
MAY 31, 1997
RESERVE BLUE CHIP GROWTH FUND
COMMON STOCKS
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
BANKS (1.9%)
BankBoston Corporation 1,400 $102,200
--------
BEVERAGES (4.0%)
PepsiCo, Inc. 6,000 220,500
--------
BUILDING MATERIALS (1.8%)
* American Standard Companies, Inc. 2,000 100,250
--------
CHEMICALS - MISCELLANEOUS (4.3%)
ChemFirst, Inc. 9,200 238,050
--------
COMPUTER SERVICES (2.2%)
* Wang Laboratories, Inc. 5,800 118,900
--------
COMPUTER SOFTWARE (5.8%)
* CUC International, Inc. 6,450 148,350
National Data Corporation 3,900 171,112
--------
319,462
--------
CONSUMER SERVICES (2.2%)
* HFS, Inc. 2,200 118,525
--------
ELECTRONICS (6.8%)
General Electric Company 1,800 108,675
* Perceptron, Inc. 9,300 262,725
--------
371,400
--------
ENTERTAINMENT (3.1%)
Walt Disney Company 2,100 171,937
--------
FINANCIAL SERVICES (6.2%)
Federal National Mortgage Association 5,200 226,850
Pioneer Group, Inc. 4,400 110,550
--------
337,400
--------
FOOD (2.3%)
* Suiza Foods Corporation 4,200 125,475
--------
HOSPITAL MANAGEMENT (3.7%)
* Assisted Living Concepts, Inc. 8,000 200,000
--------
MANAGED CARE (1.1%)
* Physicians' Specialty Corporation 10,000 61,250
--------
</TABLE>
<PAGE> 3
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE BLUE CHIP GROWTH FUND
COMMON STOCKS
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
MEDICAL SUPPLIES (1.3%)
* LaserSight Corporation 10,000 $ 70,000
----------
MISCELLANEOUS CONSUMER (2.1%)
* Gibson Greetings, Inc. 5,300 115,275
----------
MISCELLANEOUS MANUFACTURING (5.6%)
Warnaco Group, Inc. 5,300 173,575
Westinghouse Electric Corporation 6,500 131,625
----------
305,200
----------
MULTI-LINE INSURANCE (3.1%)
The Hartford Financial Services Group, Inc. 2,200 171,600
----------
OFFICE - BUSINESS EQUIPMENT (4.6%)
* American Pad & Paper Company 13,500 249,750
----------
OIL/GAS EQUIPMENT SERVICES (2.0%)
* Cairn Energy USA, Inc. 9,200 108,675
----------
PACKAGED SOFTWARE (3.9%)
Computer Associates International, Inc. 3,900 213,525
----------
PHARMACEUTICALS (7.1%)
* Bio-Technology General Corporation 5,400 78,300
Eli Lilly & Company 1,100 102,300
Johnson & Johnson 1,800 107,775
Merck & Co., Inc. 1,100 98,863
----------
387,238
----------
PUBLISHING (4.2%)
Harte-Hanks Communications 7,800 233,025
----------
RADIO, TV & BROADCAST COMMUNICATION EQUIPMENT (4.6%)
* American Radio Systems Corporation 1,400 52,150
* Sinclair Broadcast Group, Inc. 8,000 198,000
----------
250,150
----------
REAL ESTATE (4.6%)
* Insignia Financial Group, Inc., Class A 14,200 252,050
----------
</TABLE>
<PAGE> 4
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE BLUE CHIP GROWTH FUND
COMMON STOCKS
<TABLE>
<CAPTION>
SHARES/ VALUE
UNITS (NOTE 1)
----- --------
<S> <C> <C>
SPECIAL INDUSTRIAL MACHINERY (3.1%)
* Thermo Electron Corporation 5,000 $ 172,500
-------------
TOTAL COMMON STOCKS (Cost $4,512,303) (91.6%) 5,014,337
MONEY MARKET MUTUAL FUNDS
Vista U.S. Government Money Market Fund 260,000 260,000
Vista Treasury Plus Money Market Fund 70,000 70,000
-------------
TOTAL MONEY MARKET MUTUAL FUNDS (Cost $330,000) (6.0%) 330,000
-------------
TOTAL INVESTMENTS (Cost $4,842,303) (97.6%) 5,344,337
Other assets, less liabilities (2.4%) 129,523
-------------
NET ASSETS (100%) $ 5,473,860
=============
</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, 1997 was $4,842,303, the aggregate gross unrealized appreciation for all
investments was $707,511 and aggregate gross unrealized depreciation for all
investments was $205,477.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 5
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE CONVERTIBLE SECURITIES FUND
CONVERTIBLE BONDS
<TABLE>
<CAPTION>
VALUE
MATURITY PAR (NOTE 1)
-------- --- --------
<S> <C> <C> <C>
BASIC INDUSTRIAL COMMODITY (2.2%)
First South Africa Corp, Ltd., 144A, 9% 06/15/04 450,000 $ 450,000
----------
BIO-TECHNOLOGY (3.9%)
Chiron Corp., 144A, 1.9% 11/17/00 450,000 397,125
NABI, Inc., 144A, 6.5% 02/01/03 500,000 414,375
----------
811,500
----------
COMMERCIAL SERVICES (1.8%)
Pharmaceutical Marketing
Services, Inc., 144A, 6.25% 02/01/03 450,000 360,000
----------
COMPUTER SOFTWARE (1.9%)
MacNeal - Schwendler Corp., 7.875% 08/18/04 400,000 392,000
----------
ELECTRONIC PRODUCTS - MISCELLANEOUS (1.9%)
Trans-Lux Corp., 7.5% 12/01/06 375,000 390,000
----------
ENVIRONMENT - CONSULTING, ENGINEERING (1.1%)
Roy F. Weston, Inc., 7% 04/15/02 270,000 229,500
----------
FOOD CHAINS (1.9%)
Marsh Supermarkets, Inc., 7% 02/15/03 400,000 400,000
----------
GENERAL INDUSTRIAL MACHINE & EQUIPMENT (2.0%)
Robbins & Myers, Inc., 6.5% 09/01/03 300,000 412,500
----------
HOTEL - MOTEL (3.4%)
Hilton Hotels Corp., 5% 05/15/06 350,000 380,625
Signature Resorts, Inc., 5.75% 01/15/07 350,000 316,750
----------
697,375
----------
MEDICAL - HMO (3.9%)
FPA Medical Management, Inc., 6.5% 12/15/01 400,000 421,000
PhyMatrix Corp., 6.75% 06/15/03 450,000 389,250
----------
810,250
----------
OIL - DOMESTIC (2.7%)
Lomak Petroleum, Inc., 144A, 6% 02/01/07 350,000 395,500
Snyder Oil Corp., 7% 05/15/01 150,000 155,625
----------
551,125
----------
POLLUTION CONTROL (3.8%)
USA Waste Services, Inc., 4% 02/01/02 350,000 362,250
WMX Technologies, Inc., 2% 01/24/05 450,000 406,687
----------
768,937
----------
</TABLE>
<PAGE> 6
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE CONVERTIBLE SECURITIES FUND
CONVERTIBLE BONDS
<TABLE>
<CAPTION>
VALUE
MATURITY PAR (NOTE 1)
-------- --- --------
<S> <C> <C> <C>
PUBLISHING (2.0%)
Scholastic Corp., 5% 08/15/05 500,000 $ 403,750
----------
RETAIL STORES - DEPARTMENT (1.9%)
Saks Holdings, Inc., 5.5% 09/15/06 450,000 398,250
----------
RETAIL - APPAREL (1.9%)
Charming Shoppes, Inc., 7.5% 07/15/06 400,000 393,000
----------
RETAIL - SPECIALTY (1.8%)
The Sports Authority, Inc., 5.25% 09/15/01 400,000 360,500
----------
TRANSPORT - AIR FREIGHT (1.6%)
Consolidated Logistics, 144A, 8% 08/21/00 400,000 320,000
----------
WATER TREATMENT SYSTEMS (3.2%)
United States Filter Corp., 4.5% 12/15/01 650,000 665,438
----------
TOTAL CONVERTIBLE BONDS (Cost $8,647,471) (42.9%) 8,814,125
----------
</TABLE>
PREFERRED STOCKS
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
BANKS (2.6%)
National Australian Bank Ltd., 7.875% 20,000 $537,500
-------
CONTAINERS-METAL/GLASS (2.1%)
Crown Cork & Seal Company, Inc., 4.5% 2/26/00 8,000 434,000
-------
ENERGY (1.6%)
Occidental Petroleum Corp., 144A, $3.875 Series 1993 6,000 338,250
-------
ENTERTAINMENT (2.9%)
Wellsford Residential Property, 7% Series A 22,900 589,675
-------
FINANCIAL SERVICES (2.1%)
SunAmerica, Inc., $3.1875 10/31/99 10,000 431,250
-------
GENERAL INDUSTRIAL MACHINES & EQUIPMENT (2.0%)
Greenfield Industries, Inc., 144A, 6% 3/31/16 9,000 409,500
-------
GLASS PRODUCTS (1.9%)
Corning Delaware L.P., 6% 5,000 399,375
-------
</TABLE>
<PAGE> 7
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE CONVERTIBLE SECURITIES FUND
PREFERRED STOCKS
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
GOLD MINING (1.6%)
Coeur D'Alene Mines Corp., 7% 3/15/00 20,000 $ 332,500
----------
HOTEL-MOTEL (1.8%)
Host Marriott Corp., 144A, 6.75% 12/02/26 6,500 367,250
----------
MEDICAL - HMO (2.1%)
Aetna, Inc., 6.25% 7/19/00 4,700 431,225
----------
NATURAL GAS (2.0%)
MCN Corp., 8.75% 4/30/99 15,000 416,250
----------
OIL-DOMESTIC (5.5%)
Mesa, Inc., 8%, Series A 80,000 530,000
Nuevo Energy, 5.75% 12/15/26 Series A 8,000 403,000
Snyder Oil Corporation, $1.5 7,700 190,575
----------
1,123,575
----------
PAPER (1.9%)
International Paper Co., 5.25% 7/20/25 7,500 386,250
----------
PUBLISHING (1.4%)
Golden Books Family Entertainment, Inc., 144A,
8.75% 8/20/16 5,000 280,000
----------
PUBLISHING-NEWSPAPERS (2.1%)
Hollinger International, Inc., 9.75% 8/01/00 40,000 440,000
----------
REAL ESTATE (4.8%)
Excel Realty, $2.125 Series A 16,000 426,000
Redwood Trust, Inc., 9.74% Class B 10,000 567,500
----------
993,500
----------
RESTAURANTS (2.0%)
Apple South, Inc., 144A, $3.5 3/01/27 7,000 420,875
----------
TELECOMMUNICATIONS (2.1%)
Mobile Telecommunication
Technologies Corp., 144A, $2.25 20,000 425,000
----------
TELECOMMUNICATIONS-BROADCAST (2.1%)
Merrill Lynch & Company, 6% 6/01/99 Series COX 20,000 427,500
----------
TOTAL PREFERRED STOCKS (Cost $8,282,029) (44.6%) $9,183,475
----------
</TABLE>
<PAGE> 8
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE CONVERTIBLE SECURITIES FUND
COMMON STOCKS
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
AEROSPACE (0.9%)
* International Airline Support Group, Inc. 44,908 $ 196,473
---------------
ENTERTAINMENT (1.4%)
* Malibu Entertainment Worldwide, Inc. 70,000 280,000
---------------
MISCELLANEOUS MANUFACTURING (0.1%)
* Disc Graphics, Inc. - Warrants Class "A", 11/01/99 28,000 21,000
---------------
NONHAZARDOUS WASTE DISPOSAL (0.2%)
* Allied Waste Industries, Inc. 2,266 33,423
---------------
OIL WELL SERVICES (3.6%)
* SEACOR SMIT, Inc. 14,400 745,200
---------------
PREHOSPITAL MEDICAL CARE, TRANSPORTATION (1.7%)
Laidlaw, Inc., Class B 25,663 346,451
---------------
TELECOMMUNICATIONS (0.6%)
* Mobile Telecommunication Technologies Corp. 10,000 121,875
---------------
TOYS (2.1%)
Hasbro, Inc. 15,000 435,000
---------------
TOTAL COMMON STOCKS (Cost $1,876,695) (10.6%) 2,179,422
---------------
TOTAL INVESTMENT SECURITIES (Cost $18,806,195) (98.1%) $ 20,177,022
Other assets, less liabilities (1.9%) 394,238
---------------
NET ASSETS (100%) $ 20,571,260
===============
</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, 1997 was $18,806,195, the aggregate gross unrealized appreciation for all
investments was $1,553,782 and aggregate gross unrealized depreciation for
all investments was $182,955.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 9
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE EMERGING GROWTH FUND
COMMON STOCKS
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
BIO-TECHNOLOGY (1.9%)
* Genzyme Corporation 4,800 $114,600
--------
CAPITAL GOODS - DIVERSIFIED (2.4%)
Danaher Corporation 3,000 145,500
--------
CAPITAL GOODS/INDUSTRIAL (1.9%)
* Vishay Intertechnology, Inc. 3,836 112,703
--------
COMMUNICATION - EQUIPMENT (6.3%)
* ANADIGICS, Inc. 4,500 149,063
ECI Telecommunications Ltd. Designs 6,300 145,687
* Saville Systems Ireland plc 2,000 85,250
--------
380,000
--------
COMMUNICATION - NETWORK (3.4%)
* ICG Communications, Inc. 5,000 80,000
* PairGain Technologies, Inc. 6,000 125,250
--------
205,250
--------
COMPUTER NETWORKING (3.3%)
* Ascend Communications, Inc. 3,600 200,700
--------
COMPUTER PERIPHERAL EQUIPMENT (0.9%)
* Dialogic Corporation 1,800 52,650
--------
COMPUTER SERVICES (4.6%)
* HNC Software, Inc. 5,200 171,600
* Rational Software Corporation 5,400 101,925
--------
273,525
--------
COMPUTER SOFTWARE (3.1%)
* Business Objects S. A. - ADR 5,200 50,050
* Media 100, Inc. 8,000 46,000
* Sapient Corporation 2,000 89,500
--------
185,550
--------
CONSUMER GROWTH (8.3%)
* Activision, Inc. 16,000 208,000
* Conso Products Company 7,625 101,031
* Electronic Arts, Inc. 3,700 118,400
* Lin Television Corporation 1,700 73,738
--------
501,169
--------
</TABLE>
<PAGE> 10
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE EMERGING GROWTH FUND
COMMON STOCKS
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
ELECTRONIC PRODUCTS - MISCELLANEOUS (0.5%)
AVX Corporation 1,000 $ 27,250
--------
ENERGY (2.7%)
Cross Timbers Oil Company 8,250 159,844
--------
HEALTH (4.3%)
* HCIA, Inc. 2,300 56,925
* National Dentex Corporation 6,000 104,250
* PacifiCare Health Systems, Inc. 1,200 95,100
--------
256,275
--------
HOUSEHOLD FURNISHINGS & APPLIANCES (2.8%)
* Williams-Sonoma, Inc. 4,500 165,938
--------
MANAGED CARE (7.4%)
* CRA Managed Care, Inc. 2,500 114,375
* Healthsource, Inc. 4,000 86,000
* MedPartners, Inc. 7,100 134,900
* PhyCor, Inc. 3,787 108,402
--------
443,677
--------
MISCELLANEOUS CONSUMER (2.5%)
* On Assignment, Inc. 4,000 152,500
--------
OFFICE-BUSINESS EQUIPMENT (2.4%)
* HPR, Inc. 9,000 146,250
--------
OFFSHORE DRILLING (1.6%)
* Parker Drilling Company 10,000 96,250
--------
OIL WELL SERVICES (1.3%)
* Dawson Production Services, Inc. 7,000 78,750
--------
OPTICAL INSTRUMENTS AND LENSES (1.6%)
* KLA-Tencor Corporation 2,000 95,125
--------
PAPER (1.2%)
* Data Documents, Inc. 6,000 71,250
--------
</TABLE>
<PAGE> 11
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE EMERGING GROWTH FUND
COMMON STOCKS
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
PHARMACEUTICALS (4.9%)
* Centocor, Inc. 3,200 $ 112,800
* Dura Pharmaceuticals, Inc. 4,600 182,850
----------
295,650
----------
RESTAURANTS (0.4%)
* Outback Steakhouse, Inc. 1,000 23,250
----------
RETAIL - SPECIALTY (10.6%)
* Borders Group, Inc. 7,900 171,825
* Corporate Express, Inc. 8,600 118,250
* PetSmart, Inc. 6,000 73,500
* Staples, Inc. 6,325 139,150
* The Sports Authority, Inc. 7,500 135,000
----------
637,725
----------
SEMICONDUCTOR-RELATED DEVICES (5.4%)
* Etec Systems, Inc. 1,800 80,100
Intel Corporation 800 121,200
* LSI Logic Corporation 3,000 125,250
----------
326,550
----------
SYSTEM SOFTWARE/CLIENT SERVER (1.6%)
* Hummingbird Communications Ltd. 3,400 96,900
----------
TELECOMMUNICATIONS EQUIPMENT (7.3%)
* Comverse Technology, Inc. 2,000 91,500
* DSC Communications Corporation 2,000 51,125
* Newbridge Networks Corporation 3,600 144,450
* P-COM, Inc. 3,200 103,200
* Proxim, Inc. 2,000 51,250
----------
441,525
----------
TOTAL COMMON STOCKS (Cost $4,710,070) (94.6%) 5,686,356
----------
</TABLE>
<PAGE> 12
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE EMERGING GROWTH FUND
<TABLE>
<CAPTION>
VALUE
UNITS (NOTE 1)
----- --------
<S> <C> <C>
MONEY MARKET MUTUAL FUNDS
Vista U.S. Government Money Market Fund 280,000 $ 280,000
U.S. Treasury Plus Money Market Fund 150,000 150,000
----------
TOTAL MONEY MARKET MUTUAL FUNDS (Cost $430,000) (7.2%) 430,000
----------
TOTAL INVESTMENTS (Cost $5,140,070) (101.8%) 6,116,356
Liabilities, less other assets (-1.8%) (106,650)
----------
NET ASSETS (100%) $6,009,706
==========
</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 May 31,
1997 was $5,140,070, the aggregate gross unrealized appreciation for all
investments was $1,463,144 and aggregate gross unrealized depreciation for
all investments was $486,858.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 13
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE INFORMED INVESTORS GROWTH FUND
COMMON STOCKS
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
AIRLINES (3.8%)
Southwest Airlines Company 8,000 $206,000
--------
APPAREL MANUFACTURING (2.5%)
Liz Claiborne, Inc. 3,000 136,875
--------
BANKS (5.0%)
State Street Corporation 6,200 276,675
--------
CLOTHING (4.6%)
* Jones Apparel Group, Inc. 5,400 253,125
--------
COMPUTER MEMORY DEVICES (1.7%)
* EMC Corporation 2,300 91,712
--------
COMPUTER MICROSYSTEMS (2.3%)
* Dallas Semiconductor Corporation 3,200 123,600
--------
COMPUTER - PERIPHERAL EQUIPMENT (2.1%)
* Adaptec, Inc. 3,200 117,600
--------
COMPUTERS (8.2%)
* Dell Computer Corporation 2,100 236,250
* Gateway 2000, Inc. 3,200 212,400
--------
448,650
--------
FINANCIAL/BUSINESS SERVICES (17.1%)
Bear Stearns Companies, Inc. 8,400 273,000
Lehman Brothers Holdings, Inc. 5,400 218,025
Merrill Lynch & Company 2,300 243,800
Paine Webber Group, Inc. 5,700 202,350
--------
937,175
--------
GLASS PRODUCTS (3.5%)
Corning, Inc. 3,800 191,425
--------
HOSPITAL MANAGEMENT (3.8%)
* Tenet Healthcare Corporation 7,700 211,750
--------
LIFE/HEALTH INSURANCE (14.6%)
Conseco, Inc. 8,200 328,000
SunAmerica, Inc. 4,800 226,800
Torchmark Corporation 3,800 249,375
--------
804,175
--------
</TABLE>
<PAGE> 14
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE INFORMED INVESTORS GROWTH FUND
COMMON STOCKS
<TABLE>
<CAPTION>
SHARES/ VALUE
UNITS (NOTE 1)
----- --------
<S> <C> <C>
MISCELLANEOUS MANUFACTURING (4.0%)
Minnesota Mining and Manufacturing Company 2,400 $ 220,200
----------
MULTI-LINE INSURANCE (0.2%)
Travelers Group, inc. 200 10,975
----------
PAPER (2.4%)
International Paper Company 2,700 129,600
----------
RETAIL (4.1%)
* Costco Companies, Inc. 6,700 226,125
----------
RETAIL STORES (3.8%)
Dayton Hudson Corporation 4,400 211,750
----------
RETAIL STORES - GENERAL MERCHANDISING (3.4%)
Dollar General Corporation 5,500 184,938
----------
RETAIL - JEWELRY (2.4%)
Tiffany & Company 2,800 129,850
----------
TELEPHONE & TELEGRAPH APPARATUS (4.6%)
* Tellabs, Inc. 5,000 251,250
----------
TOTAL COMMON STOCKS (Cost $4,698,451) (94.1%) 5,163,450
MONEY MARKET MUTUAL FUNDS
Vista U.S. Government Money Market Fund
(Cost $80,000) (1.5%) 80,000 80,000
----------
TOTAL INVESTMENTS (Cost $4,778,451) (95.6%) 5,243,450
Other assets, less liabilities (4.4%) 246,483
----------
NET ASSETS (100%) $5,489,933
==========
</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,
1997 was $4,778,451, the aggregated gross unrealized appreciation for all
investments was $522,884 and aggregate gross unrealized depreciation for all
investments was $57,885.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 15
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE INTERNATIONAL EQUITY FUND
COMMON STOCKS
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
AUSTRALIA (0.7%)
Australian Hospital Care Ltd. 49,000 $ 82,014
----------
DENMARK (2.6%)
* Carli Gray International 1,400 83,981
Novo Nordisk 2,200 235,853
----------
319,834
----------
FINLAND (2.4%)
Oy Nokia AB 2,300 150,810
TT Tieto OY 1,700 143,340
----------
294,150
----------
FRANCE (6.3%)
Altran Technologies 500 160,632
* Carrefour 360 236,937
Pinault - Printemps - Redoute 225 94,556
Sidel 2,800 196,926
Sodexho Alliance 150 69,810
----------
758,861
----------
GERMANY (4.9%)
Altana AG 150 138,545
Bayerische Motoren Werke (BMW) AG 200 163,980
Fresenius AG Pfd. 722 159,820
Porsche AG Pfd. 110 132,802
----------
595,147
----------
HONG KONG (11.8%)
Hang Seng Bank Ltd. 18,000 216,056
Henderson Land Development Company Ltd. 24,000 233,867
Hong Kong & China Gas Company 182,496 317,978
HSBC Holdings 8,436 255,868
* New World Infrastructure Ltd. 19,000 59,222
Sun Hung Kai Properties Ltd. 20,000 245,870
Wing Hang Bank Ltd. 21,600 102,870
----------
1,431,731
----------
</TABLE>
<PAGE> 16
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE INTERNATIONAL EQUITY FUND
COMMON STOCKS
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
INDONESIA (0.7%)
* PT Bank International Indonesia 61,156 $ 50,230
PT Gudang Garam 8,000 34,497
PT Steady Safe 1,467 1,612
---------
86,339
---------
ITALY (1.6%)
Bulgari SpA 7,200 142,514
* Telecom Italia Mobile SpA 28,600 50,198
---------
192,712
---------
MALAYSIA (6.3%)
* Arab-Malaysian Merchant Bank Berhad 16,000 101,242
Berjaya Sports Toto Berhad 26,000 121,060
Commerce Asset Holding Berhad 20,000 58,103
DCB Holdings Berhad 32,000 103,152
Gamuda Berhad 17,333 62,081
Malayan Banking Berhad 20,000 210,920
United Engineers (Malaysia) Ltd. 13,000 105,022
---------
761,580
---------
NETHERLANDS (5.5%)
Elsevier NV 6,000 101,621
Koninklijke Ahold NV 2,245 170,695
Koninklijke Ahrend Groep NV 1,500 94,976
Nutricia Verenidge Bedrijven N.V. 600 93,616
* Ordina Beheer N.V. 1,040 78,153
Wolters Kluwer NV 1,012 121,881
---------
660,942
---------
NORWAY (4.4%)
Kverneland ASA 3,200 94,471
* Merkantildata 8,500 168,487
* Tandberg ASA 3,300 39,897
* Tandberg Television ASA 13,200 120,619
Tomra Systems ASA 5,000 114,574
---------
538,048
---------
PHILIPPINES (1.2%)
* Belle Corporation 200,000 53,091
* DMCI Holdings, Inc. 143,000 86,765
---------
139,856
---------
</TABLE>
<PAGE> 17
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE INTERNATIONAL EQUITY FUND
COMMON STOCKS
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
SINGAPORE (9.7%)
City Developments Limited 9,000 $ 83,677
DBS Land Limited 36,000 125,830
Development Bank of Singapore Limited 15,000 187,697
Oversea-Chinese Banking Corporation Ltd. 15,000 186,648
Overseas Union Bank Ltd. 20,000 137,015
Parkway Holdings Limited 43,000 213,422
United Overseas Bank Ltd. 10,000 102,761
Wing Tai Holdings Ltd. 45,000 134,009
----------
1,171,059
----------
SPAIN (3.8%)
Banco Intercontinental Espanol, SA 900 152,410
Electricas Reunidas de Zaragoza, SA 2,800 105,693
* Sol Melia, SA 5,600 207,896
----------
465,999
----------
SWEDEN (3.7%)
Autoliv AB 6,000 212,604
Ericsson Telefonaktiebolaget 6,800 239,192
----------
451,796
----------
SWITZERLAND (7.5%)
Nestle SA 70 87,215
Novartis AG Regular Shares 190 258,247
Novartis AG 30 40,882
Roche Holding AG 30 267,167
* Roche Holding AG Warrants 98 "Jubilee" 8 561
Zurich Versicherungs 700 257,681
----------
911,753
----------
THAILAND (0.2%)
Central Pattana Public Company Ltd. 10,000 26,653
* Thai Farmers Bank Public Company Ltd. (Warrants) 500 501
----------
27,154
----------
UNITED KINGDOM (12.0%)
Compass Group plc 12,700 141,752
HSBC Holdings plc 12,758 396,565
J.D. Wetherspoon plc 4,618 100,004
Lloyds TSB Group plc 13,000 130,825
Logica plc 6,600 93,571
Misys plc 5,400 122,581
Serco Group plc 8,200 92,735
Standard Chartered plc 10,476 166,121
Zeneca Group plc 7,000 212,652
----------
1,456,806
----------
</TABLE>
<PAGE> 18
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE INTERNATIONAL EQUITY FUND
COMMON STOCKS
<TABLE>
<CAPTION>
SHARES/ VALUE
UNITS (NOTE 1)
----- --------
<S> <C> <C>
UNITED STATES (11.7%)
Credicorp Ltd., ADR 5,000 $ 112,500
Panamerican Beverages, Inc., ADR 10,000 290,000
Santa Isabel, ADR 5,200 151,450
* State Bank of India, ADR 15,000 379,650
Telecomunicacoes Brasileiras SA, ADR 1,400 194,600
Telefonica de Argentina SA, ADR 5,000 181,250
Telefonica del Peru SA, ADR 4,500 114,188
-----------
1,423,638
-----------
TOTAL COMMON STOCKS (Cost $10,050,524)(97.0%) 11,769,419
MONEY MARKET MUTUAL FUNDS
U.S. Government Money Market Mutual Fund
(Cost $250,000)(2.1%) 250,000 250,000
-----------
TOTAL INVESTMENTS (Cost $10,300,524) (99.1%) 12,019,419
Other assets, less liabilities (0.9%) 109,835
-----------
NET ASSETS (100%) $12,129,254
===========
</TABLE>
INDUSTRY COMPOSITION
<TABLE>
<CAPTION>
INDUSTRY PERCENT
- -------- -------
<S> <C>
Auto/Truck Manufacturers 2.4
Bio Tech & Med Devices 2.5
Cellular Telephone 0.4
Commercial Banks 22.1
Computer Software 3.6
Computers & Peripheral 2.7
Construction & Engineering 2.6
Consumer Service 2.3
Drug & Health Care 10.8
Electric Power Utilities 0.9
Entertainment & Leisure 1.4
Financial Services 5.2
Food Processing 3.2
Lodging & Restaurants 3.7
Machinery 4.2
Public Utilities 2.6
Publishing 1.8
Real Estate Development 6.1
Real Estate Investment 0.9
Retailing 8.7
Telecommunications 8.6
Tobacco 0.3
----
Industry percent of net assets 97.0%
Money Market Mutual Funds 2.1%
Other assets, less liabilities 0.9%
----
Percent of Net Assets 100%
----
</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, 1997 was $10,300,524, the aggregate gross unrealized appreciation for all
investments was $2,002,534 and aggregate gross unrealized depreciation for
all investments was $283,576.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 19
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE LARGE-CAP VALUE FUND
COMMON STOCKS
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
ATHLETIC FOOTWEAR/APPAREL (2.7%)
Nike, Inc. 1,500 $ 85,500
------------
BANKS (3.4%)
Wells Fargo & Company 400 105,400
------------
BEVERAGES (9.5%)
Anheuser-Busch Companies, Inc. 2,400 102,900
Coca-Cola Company 1,700 116,025
PepsiCo, Inc. 2,100 77,175
------------
296,100
------------
COMPUTER SOFTWARE (4.0%)
* Microsoft Corporation 1,000 124,000
------------
COMPUTERS (4.4%)
Hewlett-Packard Company 1,000 51,500
International Business Machines Corporation 1,000 86,500
------------
138,000
------------
CONSUMER PRODUCTS (8.1%)
Clorox Company 1,000 126,250
Gillette Company 1,400 124,425
------------
250,675
------------
DRUGS (4.1%)
Abbott Labs 2,000 126,000
------------
ENTERTAINMENT (3.9%)
The Walt Disney Company (Holding Co.) 1,500 122,813
------------
FINANCIAL/BUSINESS SERVICES (8.4%)
American Express Company 2,000 139,000
Charles Schwab Corporation 3,000 121,875
------------
260,875
------------
FOOD (13.3%)
Campbell Soup Company 2,800 128,800
Hershey Foods Corporation 2,200 123,475
Quaker Oats Company 1,500 61,875
Wrigley (WM) Jr. Company 1,700 100,725
------------
414,875
------------
HEALTH (3.2%)
Becton, Dickinson & Company 2,000 98,500
------------
</TABLE>
<PAGE> 20
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE LARGE-CAP VALUE FUND
COMMON STOCKS
<TABLE>
<CAPTION>
SHARES/ VALUE
UNITS (NOTE 1)
----- --------
<S> <C> <C>
MEDICAL SUPPLIES (6.5%)
Kimberly-Clark Corporation 2,000 $ 100,250
Pfizer, Inc. 1,000 102,875
----------
203,125
----------
PHARMACEUTICALS (10.7%)
Eli Lilly & Company 1,000 93,000
Johnson & Johnson 1,900 113,763
Merck & Company, Inc. 1,400 125,825
----------
332,588
----------
PHOTOGRAPHY (3.2%)
Eastman Kodak Company 1,200 99,450
----------
PUBLISHING (3.9%)
Gannett Company, Inc. 1,300 120,250
----------
PUBLISHING - NEWSPAPERS (2.8%)
New York Times Company Class A 1,900 87,518
----------
SEMICONDUCTOR - RELATED DEVICE (4.9%)
Intel Corporation 1,000 151,500
----------
TOTAL COMMON STOCKS (Cost $2,260,193)(97.0%) 3,017,169
MONEY MARKET MUTUAL FUNDS
Vista U.S. Government Money Market Fund
(Cost $135,000) (4.4%) 135,000 135,000
----------
TOTAL INVESTMENTS (Cost $2,395,193) (101.4%) 3,152,169
Liabilities, less other assets (-1.4%) (42,189)
----------
NET ASSETS (100%) $3,109,980
==========
</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, 1997 was $2,395,193, the aggregate gross unrealized appreciation for all
investments was $758,447 and aggregate gross unrealized depreciation for all
investments was $1,471.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 21
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE MID-CAP GROWTH FUND
COMMON STOCKS
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
AIR FREIGHT (2.3%)
Circle International Group, Inc. 3,300 $ 91,575
--------
AUTO PARTS-ORIGINAL EQUIPMENT (5.7%)
* Gentex Corporation 4,600 92,575
Paccar, Inc. 3,000 135,750
--------
228,325
--------
BEVERAGES (3.6%)
* Robert Mondavi Corporation 3,200 142,400
--------
BUSINESS EQUIPMENT/SERVICE (2.5%)
* Greenwich Air Services, Inc. 3,500 101,500
--------
CLOTHING (3.3%)
* Fruit of the Loom, Inc. 3,800 132,525
--------
COMMUNICATION - EQUIPMENT (2.5%)
* Qualcomm, Inc. 2,100 101,325
--------
COMPUTER MICROSYSTEMS (4.6%)
* Dallas Semiconductor Corporation 4,800 185,400
--------
COMPUTER SOFTWARE (1.8%)
* Imnet Systems, Inc. 2,900 72,500
--------
COMPUTERS - PERIPHERAL EQUIPMENT (4.3%)
* American Power Conversion Corp. 3,500 81,375
* MicroTouch Systems, Inc. 3,600 90,900
--------
172,275
--------
HOSPITAL SUPPLIES (2.7%)
* Advanced Technology Laboratories, Inc. 2,800 108,500
--------
HOUSEHOLD FURNISHINGS APPLIANCE (7.6%)
Bush Industries, Inc. 4,000 90,000
Herman Miller, Inc. 6,000 214,500
--------
304,500
--------
</TABLE>
<PAGE> 22
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE MID-CAP GROWTH FUND
COMMON STOCKS
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ --------
<S> <C> <C>
INSTRUMENTS - SCIENTIFIC (2.0%)
* Water Corporation 2,500 $ 80,625
--------
LIFE INSURANCE (6.0%)
Protective Life Corporation 3,000 134,250
Western National Corporation 4,000 104,500
--------
238,750
--------
NURSING HOMES (3.0%)
* Genesis Health Ventures, Inc. 3,600 118,350
--------
OIL/GAS EQUIPMENT SERVICES (10.1%)
* Nuevo Energy Company 3,300 143,962
* Rowan Companies, Inc. 5,700 131,813
Tidewater, Inc. 3,050 128,481
--------
404,256
--------
POLLUTION CONTROL (4.9%)
* Newpark Resources, Inc. 3,770 197,925
--------
RESTAURANTS (2.9%)
* Cracker Barrel Old Country Store, Inc. 4,000 116,000
--------
RETAIL (2.5%)
* Stein Mart, Inc. 3,300 99,825
--------
RETAIL-SPECIALTY (4.8%)
* AutoZone, Inc. 4,500 105,188
Pier 1 Imports, Inc. 3,800 85,025
--------
190,213
--------
RETAIL STORES-DRUGS (3.3%)
* CVS Corporation 2,800 134,050
--------
SEMICONDUCTOR RELATED DEVICE (2.2%)
* Photronics, Inc. 2,000 89,250
--------
SPECIAL INDUSTRIAL MACHINERY (6.0%)
Briggs & Stratton Corporation 2,200 113,575
Pentair Industries, Inc. 3,800 124,925
--------
238,500
--------
TRUCKERS (3.9%)
* Swift Transportation Co., Inc. 4,800 154,800
--------
</TABLE>
<PAGE> 23
THE RESERVE PRIVATE EQUITY SERIES
SCHEDULE OF PORTFOLIO INVESTMENTS - (CONTINUED)
MAY 31, 1997
RESERVE MID-CAP GROWTH FUND
<TABLE>
<CAPTION>
VALUE
UNITS (NOTE 1)
----- --------
<S> <C> <C>
TOTAL COMMON STOCKS (Cost $3,064,256) (92.5%) $3,703,369
----------
MONEY MARKET MUTUAL FUNDS
Vista U.S. Government Money Market Fund 185,000 185,000
Vista Treasury Plus Money Market Fund 115,000 115,000
----------
TOTAL MONEY MARKET MUTUAL FUNDS (Cost $300,000) (7.5%) 300,000
----------
TOTAL INVESTMENTS (Cost $3,364,256) (100.0%) 4,003,369
Liabilities, less other assets (0.0%) (1,234)
----------
NET ASSETS (100%) $4,002,135
==========
</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, 1997 was $3,364,256, the aggregate gross unrealized appreciation for all
investments was $695,869 and aggregate gross unrealized depreciation for all
investments was $56,756.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 24
THE RESERVE PRIVATE EQUITY SERIES
STATEMENTS OF ASSETS AND LIABILITIES
MAY 31, 1997
<TABLE>
<CAPTION>
RESERVE RESERVE RESERVE
BLUE CHIP CONVERTIBLE EMERGING
GROWTH FUND SECURITIES FUND GROWTH FUND
----------- --------------- -----------
<S> <C> <C> <C>
ASSETS
Investment in securities, at value
(cost $4,842,303, $18,806,195,
$5,140,070, respectively) $5,344,337 $20,177,022 $6,116,356
Cash 50,872 51,574 32,911
Receivable for investment securities sold 77,263 379,631 --
Dividends receivable 2,268 32,187 290
Interest receivable 21 154,372 26
---------- ----------- ----------
Total assets 5,474,761 20,794,786 6,149,583
---------- ----------- ----------
LIABILITIES
Payable for investment securities purchased -- 223,126 139,257
Payable for fund shares redeemed 77 56 60
Other payables and accrued expenses 824 344 560
---------- ----------- ----------
Total liabilities 901 223,526 139,877
---------- ----------- ----------
NET ASSETS $5,473,860 $20,571,260 $6,009,706
========== =========== ==========
NET ASSETS CONSIST OF (Note 1):
Capital stock (Par Value $.001 per share) $ 354 $ 1,857 $ 387
Additional paid in capital 4,125,193 18,809,616 5,620,631
Accumulated net realized gain (loss) on investments 846,279 218,279 (587,598)
Undistributed net investment income -- 170,681 --
Net unrealized appreciation on investments 502,034 1,370,827 976,286
---------- ----------- ----------
NET ASSETS, at value, applicable to Shares of
Beneficial Interest outstanding (Note 5) $5,473,860 $20,571,260 $6,009,706
========== =========== ==========
CLASS A:
Net Assets $5,428,285 $20,552,883 $5,788,730
---------- ----------- ----------
Shares Outstanding 351,099 1,855,482 373,020
---------- ----------- ----------
Net Asset Value and redemption value per share
(net assets/shares outstanding) $ 15.46 $ 11.08 $ 15.52
========== =========== ==========
Maximum offering price per share (net asset value
plus sales charge of 4.50% of offering price) $ 16.19 $ 11.60 $ 16.25
========== =========== ==========
CLASS D:
Net Assets $ 45,575 $ 18,377 $ 220,976
---------- ----------- ----------
Shares Outstanding 2,976 1,662 14,383
---------- ----------- ----------
Net Asset Value, offering and redemption value per
share (net assets/shares outstanding) $ 15.31 $ 11.06 $ 15.36
========== =========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 25
THE RESERVE PRIVATE EQUITY SERIES
STATEMENTS OF ASSETS AND LIABILITIES - (CONTINUED)
MAY 31, 1997
<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 $4,778,451, $10,300,524,
$2,395,193, respectively) $5,243,450 $12,019,419 $3,152,169
Cash 12,377 134,287 38,202
Receivable for investment securities sold 665,504 56,644 --
Dividends receivable 4,758 10,529 3,517
Interest receivable 52 -- --
---------- ----------- ----------
Total assets 5,926,141 12,220,879 3,193,888
---------- ----------- ----------
LIABILITIES
Payable for investment securities purchased 433,793 91,069 83,370
Payable for fund shares redeemed 2,212 63 73
Other payables and accrued expenses 203 493 465
---------- ----------- ----------
Total liabilities 436,208 91,625 83,908
---------- ----------- ----------
NET ASSETS $5,489,933 $12,129,254 $3,109,980
========== =========== ==========
NET ASSETS CONSIST OF (Note 1):
Capital Stock (Par Value $.001 per share) $ 478 $ 963 $ 213
Additional paid in capital 4,610,691 10,754,431 2,331,412
Accumulated net realized gain (loss) on investments
and foreign currency transactions 413,765 (345,098) 21,379
Net unrealized appreciation on investments and
foreign currency transactions 464,999 1,718,958 756,976
---------- ----------- ----------
NET ASSETS, at value, applicable to Shares of
Beneficial Interest outstanding (Note 5) $5,489,933 $12,129,254 $3,109,980
========== =========== ==========
CLASS A:
Net Assets $5,476,969 $12,098,843 $3,054,239
---------- ----------- ----------
Shares Outstanding 477,196 960,665 209,015
---------- ----------- ----------
Net Asset Value and redemption value per share
(net assets/shares outstanding) $ 11.48 $ 12.59 $ 14.61
========== =========== ==========
Maximum offering price per share (net asset value
plus sales charge of 4.50% of offering price) $ 12.02 $ 13.18 $ 15.30
========== =========== ==========
CLASS D:
Net Assets $ 12,964 $ 30,411 $ 55,741
---------- ----------- ----------
Shares Outstanding 1,141 2,436* 3,841
---------- ----------- ----------
Net Asset Value, offering and redemption value per
share (net assets/shares outstanding) $ 11.36 $ 12.49 $ 14.51
========== =========== ==========
</TABLE>
* Calculated net asset value differs from actual net asset value due to rounding
of fractional shares.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 26
THE RESERVE PRIVATE EQUITY SERIES
STATEMENTS OF ASSETS AND LIABILITIES - (CONTINUED)
MAY 31, 1997
<TABLE>
<CAPTION>
RESERVE
MID-CAP
GROWTH FUND
-----------
<S> <C>
ASSETS
Investment in securities, at value
(cost$3,364,256) $4,003,369
Cash 36,124
Receivable for investment securities sold 111,383
Receivable for fund shares sold 14,811
Dividends receivable 2,270
Interest receivable 16
----------
Total assets 4,167,973
----------
LIABILITIES
Payable for investment securities purchased 162,868
Payable for fund shares redeemed 2,970
----------
Total liabilities 165,838
----------
NET ASSETS $4,002,135
==========
NET ASSETS CONSIST OF (Note 1):
Capital Stock (Par Value $.001 per share) $ 304
Additional paid in capital 3,301,497
Accumulated net realized gain on investments 61,221
Net unrealized appreciation on investments 639,113
----------
NET ASSETS, at value, applicable to Shares of
Beneficial Interest outstanding (Note 5) $4,002,135
==========
CLASS A:
Net Assets $2,174,053
----------
Shares Outstanding 164,702
----------
Net Asset Value and redemption value per share
(net assets/shares outstanding) $ 13.20
==========
Maximum offering price per share (net asset value
plus sales charge of 4.50% of offering price) $ 13.82
==========
CLASS D:
Net Assets $1,828,082
----------
Shares Outstanding 139,681
----------
Net Asset Value, offering and redemption value per
share (net assets/shares outstanding) $ 13.09
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 27
THE RESERVE PRIVATE EQUITY SERIES
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
RESERVE RESERVE RESERVE RESERVE
BLUE CHIP CONVERTIBLE EMERGING INFORMED INVESTORS
GROWTH FUND SECURITIES FUND GROWTH FUND GROWTH FUND
----------- --------------- ----------- -----------
September 3, 1996
(commencement of
Year Ended operations) to Year Ended Year Ended
May 31, 1997 May 31, 1997 May 31, 1997 May 31, 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 32,176 $ 249,907 $ 3,372* $ 24,627
Interest 896 363,077 1,049 41,386
---------- ----------- ----------- -----------
Total investment income 33,072 612,984 4,421 66,013
EXPENSES
Comprehensive fee (Note 3) 79,311 205,951 98,087 83,573
12b-1 Fee (Note 4)
Class A 13,038 34,294 15,631 13,889
Class D 723 124 2,868 161
---------- ----------- ----------- -----------
Total expenses 93,072 240,369 116,586 97,623
---------- ----------- ----------- -----------
Less fees waived -- 188,113 -- --
---------- ----------- ----------- -----------
Net expenses -- 52,256 -- --
---------- ----------- ----------- -----------
NET INVESTMENT INCOME (LOSS) (60,000) 560,728 (112,165) (31,610)
---------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Proceeds from sales of securities 5,655,127 16,158,164 1,743,151 11,725,713
Cost of securities sold 4,678,455 15,933,090 2,320,269 10,472,385
---------- ----------- ----------- -----------
Net realized gain (loss) on
investments (Note 1) 976,672 225,074 (577,118) 1,253,328
Net unrealized appreciation
(depreciation) on investments (642,561) 1,370,827 (847,249) (1,975,139)
---------- ----------- ----------- -----------
Net realized and unrealized gain (loss)
on investments 334,111 1,595,901 (1,424,367) (721,811)
---------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations $ 274,111 $ 2,156,629 $(1,536,532) $ (753,421)
========== =========== =========== ===========
</TABLE>
* Includes foreign tax withholding of $114
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 28
THE RESERVE PRIVATE EQUITY SERIES
STATEMENTS OF OPERATIONS - (CONTINUED)
<TABLE>
<CAPTION>
RESERVE RESERVE RESERVE
INTERNATIONAL LARGE-CAP MID-CAP
EQUITY FUND VALUE FUND GROWTH FUND
----------- ---------- -----------
Year Ended Year Ended Year Ended
May 31, 1997 May 31, 1997 May 31, 1997
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 97,550* $ 32,111 $ 13,610
Interest 561 212 533
---------- -------- ----------
Total investment income 98,111 32,323 14,143
EXPENSES
Comprehensive fee (Note 3) 145,974 33,940 49,028
12b-1 Fee (Note 4)
Class A 20,754 5,613 3,404
Class D 231 172 19,070
---------- -------- ----------
Total expenses 166,959 39,725 71,502
---------- -------- ----------
NET INVESTMENT LOSS (68,848) (7,402) (57,359)
---------- -------- ----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Proceeds from sales of securities 3,956,864 383,913 3,034,153
Cost of securities sold 4,229,994 362,534 2,889,407
---------- -------- ----------
Net realized gain (loss) on
investments and foreign
currency transactions (Note 1) (273,130) 21,379 144,746
Net unrealized appreciation
on investments and foreign
currency transactions 1,387,936 686,853 185,442
---------- -------- ----------
Net realized and unrealized gain
on investments and foreign
currency transactions 1,114,806 708,232 330,188
---------- -------- ----------
Net increase in net assets resulting
from operations $1,045,958 $700,830 $ 272,829
========== ======== ==========
</TABLE>
* Includes foreign tax withholding of $14,966
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 29
THE RESERVE PRIVATE EQUITY SERIES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
RESERVE CONVERTIBLE
RESERVE BLUE CHIP GROWTH FUND SECURITIES FUND
----------------------------- -------------------
September 3, 1996
(commencement of
Year Ended Year Ended operations) to
May 31, 1997 May 31, 1996 May 31, 1997
------------ ------------ -------------------
<S> <C> <C> <C>
INCREASE IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income gain (loss) $ (60,000) $ (34,916) $ 560,728
Net realized gain (loss) from investments 976,672 (2,045) 225,074
Net unrealized appreciation (depreciation)
from investments (642,561) 975,733 1,370,827
----------- ---------- ------------
Net increase in net assets
resulting from operations 274,111 938,772 2,156,629
----------- ---------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- (6,791)
Net realized gain on investments (68,349) (164,889) (390,051)
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5)
Net proceeds from sales of shares 1,176,349 2,757,098 20,601,861
Reinvestment of distributions 68,323 164,889 201,224
Cost of shares redeemed (1,148,732) (517,167) (1,991,612)
----------- ---------- ------------
Net increase in net assets resulting
from capital share transactions 95,940 2,404,820 18,811,473
----------- ---------- ------------
Net increase in net assets 301,702 3,178,703 20,571,260
NET ASSETS:
Beginning of period 5,172,158 1,993,455 0
----------- ---------- ------------
End of period (including undistributed
net investment income of $0, $0
and $170,681, respectively) $ 5,473,860 $5,172,158 $ 20,571,260
=========== ========== ============
</TABLE>
<TABLE>
<CAPTION>
RESERVE INTERNATIONAL
RESERVE EMERGING GROWTH FUND EQUITY FUND
----------------------------- -------------------------------
July 13, 1996
(commencement of
Year Ended Year Ended Year Ended operations) to
May 31, 1997 May 31, 1996 May 31, 1997 May 31, 1996
----------------------------- -------------------------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment loss $ (112,165) $ (57,980) $ (68,848) $ (17,145)
Net realized gain (loss) from investments
and foreign currency transactions (577,118) 80,546 (273,130) (71,968)
Net unrealized appreciation (depreciation)
from investments and foreign
currency transactions (847,249) 1,655,638 1,387,936 331,022
----------- ---------- ----------- ----------
Net increase (decrease) in net assets
resulting from operations (1,536,532) 1,678,204 1,045,958 241,909
----------- ---------- ----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments -- (93,899) -- --
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5)
Net proceeds from sales of shares 2,187,444 4,281,980 8,057,063 3,465,234
Reinvestment of distributions -- 93,770 -- --
Cost of shares redeemed (1,540,646) (301,485) (558,291) (122,619)
----------- ---------- ----------- ----------
Net increase in net assets resulting
from capital share transactions 646,798 4,074,265 7,498,772 3,342,615
----------- ---------- ----------- ----------
Net increase (decrease) in net assets (889,734) 5,658,570 8,544,730 3,584,524
NET ASSETS:
Beginning of period 6,899,440 1,240,870 3,584,524 0
----------- ---------- ----------- ----------
End of period $ 6,009,706 $6,899,440 $12,129,254 $3,584,524
=========== ========== =========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 30
THE RESERVE PRIVATE EQUITY SERIES
STATEMENTS OF CHANGES IN NET ASSETS - (CONTINUED)
<TABLE>
<CAPTION>
RESERVE
RESERVE INFORMED LARGE-CAP
INVESTORS GROWTH FUND VALUE FUND
-------------------------------- -------------------------------
January 2, 1996
(commencement of
Year Ended Year Ended Year Ended operations) to
May 31, 1997 May 31, 1996 May 31, 1997 May 31, 1996
------------------------------- -------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment loss $ (31,610) $ (147,983) $ (7,402) $ (1,091)
Net realized gain from investments 1,253,328 850,186 21,379 --
Net unrealized appreciation (depreciation)
from investments (1,975,139) 1,109,280 686,853 70,123
----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from operations (753,421) 1,811,483 700,830 69,032
----------- ----------- ----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments (525,939) (795,337) -- --
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5)
Net proceeds from sales of shares 1,400,871 6,254,939 1,345,107 1,165,180
Reinvestment of distributions 395,531 790,060 -- --
Cost of shares redeemed (1,435,172) (8,490,282) (167,017) (3,152)
----------- ----------- ----------- ----------
Net increase (decrease) in net assets resulting
from capital share transactions 361,230 (1,445,283) 1,178,090 1,162,028
----------- ----------- ----------- ----------
Net increase (decrease) in net assets (918,130) (429,137) 1,878,920 1,231,060
NET ASSETS:
Beginning of period 6,408,063 6,837,200 1,231,060 0
----------- ----------- ----------- ----------
End of period $ 5,489,933 $ 6,408,063 $ 3,109,980 $1,231,060
=========== =========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
RESERVE MID-CAP
GROWTH FUND
-------------------------------
Year Ended Year Ended
May 31, 1997 May 31, 1996
------------ ------------
<S> <C> <C>
INCREASE IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment loss $ (57,359) $ (32,656)
Net realized gain (loss) from investments 144,746 (83,525)
Net unrealized appreciation from
investments 185,442 453,671
----------- ----------
Net increase in net assets
resulting from operations 272,829 337,490
----------- ----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5)
Net proceeds from sales of shares 3,118,364 2,345,759
Cost of shares redeemed (1,928,613) (143,694)
----------- ----------
Net increase in net assets resulting
from capital share transactions 1,189,751 2,202,065
----------- ----------
Net increase in net assets 1,462,580 2,539,555
NET ASSETS:
Beginning of period 2,539,555 0
----------- ----------
End of period $ 4,002,135 $2,539,555
=========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE> 31
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS
MAY 31, 1997
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Reserve Private Equity Series (the "Trust") consists of the following
funds: Reserve Blue Chip Growth Fund, Reserve Convertible Securities Fund,
Reserve Emerging Growth Fund, Reserve Informed Investors Growth Fund,
Reserve International Equity Fund, Reserve Large-Cap Value Fund, and
Reserve Mid-Cap Growth Fund (formerly 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, 1997 as follows:
[See table below]
<PAGE> 32
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
MAY 31, 1997
<TABLE>
<CAPTION>
Increase (Decrease)
-------------------
Undistributed
Net Accumulated
Investment Realized
Reserve Fund Capital Income Gain
------------ ------- ------ ----
<S> <C> <C> <C>
Blue Chip Growth Fund (112,615) 60,000 52,615
Emerging Growth Fund (112,165) 112,165 --
Informed Investors Growth Fund (31,610) 31,610 --
International Equity Fund (68,848) 68,848 --
Large-Cap Value Fund (7,402) 7,402 --
Mid-Cap Growth Fund (57,359) 57,359 --
</TABLE>
These reclassifications had no effect on net investment income, net
realized gain on investments, or net assets for the year ended May 31,
1997.
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.
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, 1997, which are available to offset
future realized capital gains, if any:
<TABLE>
<CAPTION>
Capital loss Expiration
carryforward year
------------ ----
<S> <C> <C>
Reserve Emerging Growth Fund $161,015 2005
Reserve International Equity Fund 71,968 2004
Reserve International Equity Fund 178,347 2005
</TABLE>
<PAGE> 33
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
MAY 31, 1997
2. INVESTMENT ACTIVITY
The aggregate cost of purchases and proceeds from sales of investments
(excluding short-term investments) for the year ended May 31, 1997, were
as follows:
<TABLE>
<CAPTION>
Aggregate Aggregate
Reserve Fund Purchases Sales
------------ --------- -----
<S> <C> <C>
Blue Chip Growth Fund $ 5,425,272 $ 5,655,127
Convertible Securities Fund 34,711,469 16,158,164
Emerging Growth Fund 2,264,488 1,743,151
Informed Investors Growth Fund 11,386,974 11,725,713
International Equity Fund 11,336,214 3,956,864
Large-Cap Value Fund 1,507,717 383,913
Mid-Cap Growth Fund 4,017,934 3,034,153
</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 except for the International
Equity Fund for which it receives 1.75%. RMCI is currently waiving a
portion of its comprehensive fee in the Reserve Convertible Securities
Fund.
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
decisions for 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%
Convertible Securities Fund New Vernon Advisors, Inc. 0.75%
Emerging Growth Fund Roanoke Asset Management Corp. 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 Southern Capital Advisors 0.75%
</TABLE>
Trainer, Wortham & Company, Inc. owns 24% of the outstanding shares of the
Reserve Blue Chip Growth Fund at May 31, 1997.
<PAGE> 34
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
MAY 31, 1997
As of May 31, 1997, RMCI and affiliated persons owned 7%, 13%, 5%, 11%,
20%, and 25% of the Reserve Blue Chip Growth Fund, Reserve Emerging Growth
Fund, Reserve Informed Investors Growth Fund, Reserve International Equity
Fund, Reserve Large-Cap Value Fund, and Reserve Mid-Cap Growth Fund,
respectively. Taconic Petroleum Corp. owns 24% of Reserve Large-Cap Value
Fund. Christopher E. Vroom owns 7% of the Reserve Emerging Growth Fund.
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 shares and 1.00% per annum for Class D shares of the
average daily net assets of shareholder accounts as to which the payee has
rendered distribution assistance. For the year ended May 31, 1997, the
Funds paid distribution expenses to RPI as follows:
<TABLE>
<CAPTION>
Reserve Fund Class A Class D
------------ ------- -------
<S> <C> <C>
Blue Chip Growth Fund $13,038 $ 723
Convertible Securities Fund* 283 14
Emerging Growth Fund 15,631 2,868
Informed Investors Growth Fund 13,889 161
International Equity Fund 20,754 231
Large-Cap Value Fund 5,613 172
Mid-Cap Growth Fund 3,404 19,070
</TABLE>
* RMCI waived 12b-1 fees of $34,011 and $110, for Reserve Convertible
Securities Fund Class A and Class D, respectively, for the period
September 3, 1996 (commencement of operations) to May 31, 1997.
5. CAPITAL SHARE TRANSACTIONS
Transactions in capital stock of each Fund for the period ended May 31,
1997, were as follows:
<TABLE>
<CAPTION>
RESERVE BLUE CHIP GROWTH FUND CLASS A CLASS D
----------------------------- -------------------------------- ------------------------
Year Ended Year Ended
May 31, 1997 May 31, 1997
-------------------------------- ------------------------
Shares Amount Shares Amount
------- ----------- ------ --------
<S> <C> <C> <C> <C>
Sold 76,231 $ 1,119,812 3,957 $ 56,537
Reinvested 4,875 67,171 84 1,152
Redeemed (74,089) (1,092,588) (3,930) (56,144)
------- ----------- ------ --------
Net increase 7,017 $ 94,395 111 $ 1,545
======= =========== ====== ========
</TABLE>
<PAGE> 35
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS
MAY 31, 1997
<TABLE>
<CAPTION>
RESERVE CONVERTIBLE SECURITIES FUND CLASS A CLASS D
- ----------------------------------- ------------------------------- -------------------------------
September 3, 1996 September 3, 1996
(commencement of operations) to (commencement of operations) to
May 31, 1997 May 31, 1997
------------------------------- --------------------------------
Shares Amount Shares Amount
---------- ----------- ------ --------
<S> <C> <C> <C> <C>
Sold 2,026,485 $20,572,892 2,814 $ 28,969
Reinvested 19,551 201,111 11 113
Redeemed (190,554) (1,979,449) (1,163) (12,163)
--------- ----------- ------ --------
Net increase 1,855,482 $18,794,554 1,662 $ 16,919
========= =========== ====== ========
</TABLE>
<TABLE>
<CAPTION>
RESERVE EMERGING GROWTH FUND CLASS A CLASS D
- --------------------------------- ------------------------------- ----------------------------
Year Ended Year Ended
May 31, 1997 May 31, 1997
------------------------------- ----------------------------
Shares Amount Shares Amount
------- ----------- ------ ---------
<S> <C> <C> <C> <C>
Sold 117,069 $ 1,999,906 10,982 $ 187,538
Redeemed (84,292) (1,389,829) (9,047) (150,817)
------- ----------- ------ ---------
Net increase 32,777 $ 610,077 1,935 $ 36,721
======= =========== ====== =========
</TABLE>
<TABLE>
<CAPTION>
RESERVE INFORMED INVESTORS GROWTH FUND CLASS A CLASS D
- -------------------------------------- -------------------------------- -----------------------
Year Ended Year Ended
May 31, 1997 May 31, 1997
-------------------------------- -----------------------
Shares Amount Shares Amount
-------- ---------- ------ ------
<S> <C> <C> <C> <C>
Sold 116,034 $ 1,389,343 911 $11,528
Reinvested 37,456 395,531 -- --
Redeemed (121,475) (1,425,528) (814) (9,644)
-------- ---------- ---- -------
Net increase 32,015 $ 359,346 97 $ 1,884
======== ========== ==== =======
</TABLE>
<TABLE>
<CAPTION>
RESERVE INTERNATIONAL EQUITY FUND CLASS A CLASS D
- --------------------------------- --------------------------- ---------------------------
Year Ended Year Ended
May 31, 1997 May 31, 1997
--------------------------- ---------------------------
Shares Amount Shares Amount
------- ---------- ------ -------
<S> <C> <C> <C> <C>
Sold 689,779 $8,029,446 2,446 $27,617
Redeemed (47,041) (551,604) (562) (6,687)
------- ---------- ----- -------
Net increase 642,738 $7,477,842 1,884 $20,930
======= ========== ===== =======
</TABLE>
<PAGE> 36
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
MAY 31, 1997
<TABLE>
<CAPTION>
RESERVE LARGE-CAP VALUE FUND CLASS A CLASS D
- ----------------------------- ------------------------- ----------------------
Year Ended Year Ended
May 31, 1997 May 31, 1997
------------------------- ----------------------
Shares Amount Shares Amount
------- ---------- ------ --------
<S> <C> <C> <C> <C>
Sold 108,518 $1,276,605 5,080 $ 68,502
Redeemed (11,940) (151,013) (1,239) (16,004)
------- ---------- ------ --------
Net increase 96,578 $1,125,592 3,841 $ 52,498
======= ========== ====== ========
</TABLE>
<TABLE>
<CAPTION>
RESERVE MID-CAP GROWTH FUND CLASS A CLASS D
- --------------------------- ------------------------- ---------------------------
Year Ended Year Ended
May 31, 1997 May 31, 1997
------------------------- ---------------------------
Shares Amount Shares Amount
------- ---------- -------- -----------
<S> <C> <C> <C> <C>
Sold 198,244 $2,390,365 58,332 $ 727,999
Redeemed (44,223) (530,105) (114,850) (1,398,508)
------- ---------- -------- -----------
Net increase 154,021 1,860,260 (56,518) $ (670,509)
======= ========== ======== ===========
</TABLE>
Transactions in capital stock of each Fund for the period ended May 31, 1996,
were as follows:
<TABLE>
<CAPTION>
RESERVE BLUE CHIP GROWTH FUND CLASS A CLASS D
- ----------------------------- ------------------------- --------------------
February 13, 1996
(commencement
Year Ended of operations) to
May 31, 1996 May 31, 1996
------------------------- --------------------
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>
RESERVE EMERGING GROWTH FUND CLASS A CLASS D
- ---------------------------- ------------------------- ---------------------
February 26, 1996
(commencement
Year Ended of operations) to
May 31, 1996 May 31, 1996
------------------------- ---------------------
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>
<PAGE> 37
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
MAY 31, 1997
<TABLE>
<CAPTION>
RESERVE INFORMED INVESTORS GROWTH FUND CLASS A CLASS D
- -------------------------------------- --------------------------- ----------------------
February 13, 1996
(commencement
Year Ended of operations) to
May 31, 1996 May 31, 1996
--------------------------- ----------------------
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>
RESERVE INTERNATIONAL EQUITY FUND CLASS A CLASS D
- --------------------------------- -------------------------- ------------------
July 13, 1995 March 11, 1996
(commencement (commencement
of operations) to of operations) to
May 31, 1996 May 31, 1996
-------------------------- ------------------
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>
RESERVE LARGE-CAP VALUE FUND CLASS A
- ---------------------------- ------------------------
January 2, 1996
(commencement
of operations) to
May 31, 1996
-------------------------
Shares Amount
------- ----------
<S> <C> <C>
Sold 112,729 $1,165,180
Redeemed (292) (3,152)
------- ----------
Net increase 112,437 $1,162,028
======= ==========
</TABLE>
<PAGE> 38
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
MAY 31, 1997
<TABLE>
<CAPTION>
RESERVE MID-CAP GROWTH FUND CLASS A CLASS D
- --------------------------- ----------------------- -------------------------
March 13, 1996
(Commencement
of operations) to Year Ended
May 31, 1996 May 31, 1996
----------------------- -------------------------
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>
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.
<PAGE> 39
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
MAY 31, 1997
7. FINANCIAL HIGHLIGHTS (FOR EACH SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
RESERVE BLUE CHIP GROWTH FUND CLASS A CLASS D
- ----------------------------- ------------------------------------------------- ---------------------------------
October 28, 1994 February 13, 1996
(commencement of (commencement of
Year Ended Year Ended operations) to Year Ended operations) to
May 31, 1997 May 31, 1996 May 31, 1995 May 31, 1997 May 31, 1996
------------ ------------ ---------------- ------------ -----------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period $ 14.91 $12.03 $10.00 $ 14.88 $13.49
------- ------ ------ ------- ------
Income from investment operations
Net investment loss (0.17) (.10) (.03) (0.46) (.04)
Net realized and unrealized gain 0.91 3.62 2.06 1.08 1.43
------- ------ ------ ------- ------
Total from investment operations 0.74 3.52 2.03 0.62 1.39
Less distribution from net realized gain (.19) (.64) -- (.19) --
------- ------ ------ ------- ------
NET ASSET VALUE, end of period $ 15.46 $14.91 $12.03 $ 15.31 $14.88
======= ====== ====== ======= ======
Total Return 5.12 % 30.10 % 20.30%(2) 4.32 % 10.30 %(2)
RATIOS/SUPPLEMENTAL DATA
Net assets in thousands, end of period $ 5,428 $5,130 $1,993 $ 46 $ 43
Ratio of expenses to average net assets
before waiver 1.75 % 1.75 % 1.75%(1) 2.50 % 2.50 %(1)
Ratio of expenses to average net assets,
net of waiver 1.75 % 1.75 % 1.73%(1) 2.50 % 2.50 %(1)
Ratio of net investment loss to
average net assets, before waiver (1.13)% (0.94)% (0.72)%(1) (1.90)% (1.70)%(1)
Ratio of net investment loss to average
net assets, net of waiver (1.13)% (0.94)% (0.70)%(1) (1.90)% (1.70)%(1)
Portfolio turnover rate 109 % 72 % 68 % 109 % 72 %
Average commission per share on
portfolio transactions $0.0419 $ 0.06 N/A $0.0419 $ 0.06
</TABLE>
<TABLE>
<CAPTION>
RESERVE CONVERTIBLE SECURITIES FUND CLASS A CLASS D
- ----------------------------------- ----------------- -----------------
September 3, 1996 September 3, 1996
(commencement of (commencement of
operations) to operations) to
May 31, 1997 May 31, 1997
----------------- -----------------
<S> <C> <C>
NET ASSET VALUE, beginning of period $ 10.00 $ 10.00
------- -------
Income from investment operations
Net investment income 0.34 0.33
Net realized and unrealized gain (loss) 0.99 0.98
------- -------
Total from investment operations 1.33 1.31
Less distribution from net investment
income and realized gain (.25) (.25)
------- -------
NET ASSET VALUE, end of period $ 11.08 $ 11.06
======= =======
Total Return 13.53 %(2) 13.33 %(2)
RATIOS/SUPPLEMENTAL DATA
Net assets in thousands, end of period $20,553 $ 18
Ratio of expenses to average net assets before waiver 2.36 %(1) 3.37 %(1)
Ratio of expenses to average net assets, net of waiver 0.52 %(1) 0.83 %(1)
Ratio of net investment income to average
net assets, before waiver 3.67 %(1) 2.57 %(1)
Ratio of net investment income to average net assets,
net of waiver 5.52 %(1) 5.12 %(1)
Portfolio turnover rate 113 % 113 %
Average commission per share on
portfolio transactions $0.0564 $ 0.0564
</TABLE>
- ----------------------------
(1) Annualized
(2) Total return is not annualized, and does not reflect impact of sales load.
<PAGE> 40
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
MAY 31, 1997
<TABLE>
<CAPTION>
RESERVE EMERGING GROWTH FUND CLASS A CLASS D
- ---------------------------- ----------------------------------------------- ---------------------------------
November 14, 1994 February 26, 1996
(commencement of (commencement of
Year Ended Year Ended operations) to Year Ended operations) to
May 31, 1997 May 31, 1996 May 31, 1995 May 31, 1997 May 31, 1996
------------ ------------ ----------------- ------------ -----------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period $ 19.56 $12.21 $10.00 $ 19.52 $16.88
------- ------ ------ ------- ------
Income from investment operations
Net investment loss (0.28) (.17) (.09) (0.49) (.04)
Net realized and unrealized gain (loss) (3.76) 8.05 2.30 (3.67) 2.68
------- ------ ------ ------- ------
Total from investment operations (4.04) 7.88 2.21 (4.16) 2.64
Less distribution from net realized gain -- (.53) -- -- --
------- ------ ------ ------- ------
NET ASSET VALUE, end of period $ 15.52 $19.56 $12.21 $ 15.36 $19.52
======= ====== ====== ======= ======
Total Return (20.65)% 65.55 % 22.10 %(2) (21.31)% 15.64%(2)
RATIOS/SUPPLEMENTAL DATA
Net assets in thousands, end of period $ 5,789 $6,657 $1,241 $ 221 $ 243
Ratio of expenses to average net assets 1.75 % 1.75 % 1.75 %(1) 2.50 % 2.50%(1)
Ratio of net investment loss to
average net assets (1.69)% (1.70)% (1.62)%(1) (2.45)% (2.48)%(1)
Portfolio turnover rate 28 % 38 % 43 % 28 % 38%
Average commission per share on
portfolio transactions $0.0048 $ 0.01 N/A $0.0048 $ 0.01
</TABLE>
<TABLE>
<CAPTION>
RESERVE INFORMED INVESTORS GROWTH FUND CLASS A CLASS D
- -------------------------------------- ------------------------------------------------ --------------------------------
December 28, 1994 March 22, 1996
(commencement of (commencement of
Year Ended Year Ended operations) to Year Ended operations) to
May 31, 1997 May 31, 1996 May 31, 1995 May 31, 1997 May 31, 1996
------------ ------------ ----------------- ------------ ---------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period $ 14.36 $11.99 $10.00 $ 14.33 $12.29
------- ------ ------ ------- ------
Income from investment operations
Net investment loss (0.07) (0.33) (.07) (0.18) (.06)
Net realized and unrealized gain (1.66) 3.87 2.06 (1.64) 2.10
------- ------ ------ ------- ------
Total from investment operations (1.73) 3.54 1.99 (1.82) 2.04
Less distribution from net realized gain (1.15) (1.17) -- (1.15) --
------- ------ ------ ------- ------
NET ASSET VALUE, end of period $ 11.48 $14.36 $11.99 $ 11.36 $14.33
======= ====== ====== ======= ======
Total Return (11.35)% 29.75 % 19.90 %(2) (12.04)% 16.60 %(2)
RATIOS/SUPPLEMENTAL DATA
Net assets in thousands, end of period $ 5,477 $6,393 $6,837 $ 13 $ 15
Ratio of expenses to average net assets 1.75 % 1.75 % 1.75 %(1) 2.50 % 2.50 %(1)
Ratio of net investment loss to
average net assets (0.57)% (1.57)% (1.62)%(1) (1.26)% (2.32)%(1)
Portfolio turnover rate 255 % 132 % 59 % 255 % 132 %
Average commission per share on
portfolio transactions $0.0612 $ 0.05 N/A $0.0612 $ 0.05
</TABLE>
- ----------------------------
(1) Annualized
(2) Total return is not annualized, and does not reflect impact of sales load.
<PAGE> 41
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
MAY 31, 1997
<TABLE>
<CAPTION>
RESERVE INTERNATIONAL EQUITY FUND CLASS A CLASS D
- --------------------------------- -------------------------------------- --------------------------------------
July 13, 1995 March 11, 1996
(commencement of (commencement of
Year Ended operations) to Year Ended operations) to
May 31, 1997 May 31, 1996 May 31, 1997 May 31, 1996
-------------------------------------- --------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period $ 11.26 $ 10.00 $ 11.25 $ 10.79
------------ ------------ ------------ ------------
Income from investment operations
Net investment loss (0.07) (.05) (0.15) (.01)
Net realized and unrealized gain 1.40 1.31 1.39 .47
------------ ------------ ------------ ------------
Total from investment operations 1.33 1.26 1.24 .46
------------ ------------ ------------ ------------
NET ASSET VALUE, end of period $ 12.59 $ 11.26 $ 12.49 $ 11.25
============ ============ ============ ============
Total Return 11.81% 12.60%(2) 11.02% 4.26%(2)
RATIOS/SUPPLEMENTAL DATA
Net assets in thousands, end of period $ 12,099 $ 3,578 $ 30 $ 6
Ratio of expenses to average net assets
before waiver 2.00% 2.00%(1) 2.75% 2.75%(1)
Ratio of expenses to average net assets,
net of waiver 2.00% 1.99%(1) 2.75% 2.75%(1)
Ratio of net investment loss to average
net assets before waiver 0.82% (0.92)%(1) 1.63% (0.70)%(1)
Ratio of net investment loss to average
net assets net of waiver 0.82% (0.91)%(1) 1.63% (0.70)%(1)
Portfolio turnover rate 52% 70% 52% 70%
Average commission per share on
portfolio transactions $ 0.0273 $ 0.02 $ 0.0273 $ 0.02
</TABLE>
<TABLE>
<CAPTION>
RESERVE LARGE-CAP VALUE FUND CLASS A CLASS D
- ---------------------------- ------------------------------------ ----------------
January 2, 1996
(commencement of
Year Ended operations) to Year Ended
May 31, 1997 May 31, 1996 May 31, 1997
------------------------------------ ----------------
<S> <C> <C> <C>
NET ASSET VALUE, beginning of period $ 10.95 $ 10.00 $ 10.95
----------- ----------- ===========
Income from investment operations
Net investment loss (0.03) (0.01) (0.05)
Net realized and unrealized gain 3.69 0.96 3.61
----------- ----------- -----------
Total from investment operations 3.66 0.95 3.56
----------- ----------- -----------
NET ASSET VALUE, end of period $ 14.61 $ 10.95 $ 14.51
=========== =========== ===========
Total Return 33.42% 9.50%(2) 32.51%(2)
RATIOS/SUPPLEMENTAL DATA
Net assets in thousands, end of period $ 3,054 $ 1,231 $ 56
Ratio of expenses to average net assets 1.75% 1.75%(1) 2.50%
Ratio of net investment loss to average
net assets (0.32)% (0.32)%(1) (1.07)%
Portfolio turnover rate 18% 0 % 18%
Average commission per share on
portfolio transactions $ 0.0684 $ 0.08 $ 0.0684
</TABLE>
- ----------------------------
(1) Annualized
(2) Total return is not annualized, and does not reflect impact of sales load.
<PAGE> 42
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
MAY 31, 1997
<TABLE>
<CAPTION>
RESERVE MID-CAP GROWTH FUND CLASS A CLASS D
- --------------------------- ------------------------------------ ----------------------------------
March 13, 1996
(commencement of
Year Ended operations) to Year Ended Year Ended
May 31, 1997 May 31, 1996 May 31, 1997 May 31, 1996
------------------------------------ ----------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period $ 12.29 $ 10.94 $ 12.27 $ 10.00
----------- ----------- ----------- -----------
Income from investment operations
Net investment loss (0.11) (.01) (0.28) (0.17)
Net realized and unrealized gain 1.02 1.36 1.10 2.44
----------- ----------- ----------- -----------
Total from investment operations 0.91 1.35 0.82 2.27
----------- ----------- ----------- -----------
NET ASSET VALUE, end of period $ 13.20 $ 12.29 $ 13.09 $ 12.27
=========== =========== =========== ===========
Total Return 7.40% 12.34%(2) 6.68% 22.70%
RATIOS/SUPPLEMENTAL DATA
Net assets in thousands, end of period $ 2,174 $ 131 $ 1,828 $ 2,408
Ratio of expenses to average net assets 1.75% 1.74%(1) 2.50% 2.49%
Ratio of net investment loss to average
net assets (1.31)% (0.97)%(1) (2.08)% (2.00)%
Portfolio turnover rate 102% 85% 102% 85%
Average commission per share on
portfolio transactions $ 0.0545 $ 0.04 $ 0.0545 $ 0.04
</TABLE>
- ----------------------------
(1) Annualized
(2) Total return is not annualized, and does not reflect impact of sales
load.
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