<PAGE> 1
[THE RESERVE FUNDS LOGO]
Founders of
"America's First
Money Fund"
810 Seventh Avenue, New York, NY 10019-5868
GENERAL INFORMATION AND 24-HOUR YIELD AND BALANCE INFORMATION
800-637-1700
This literature is not authorized for distribution to prospective investors
unless preceded or accompanied by an appropriate current prospectus.
Distributor -- Resrv Partners, Inc.
RPES/SEMI 1/97
[THE RESERVE FUNDS LOGO]
Founders of
"America's First
Money Fund"
------------------------------------------------------
SEMI-ANNUAL REPORT
------------------------------------------------------
RESERVE PRIVATE EQUITY SERIES
FOR THE SIX MONTHS ENDED
NOVEMBER 30, 1996
(UNAUDITED)
<PAGE> 2
THE RESERVE PRIVATE EQUITY SERIES--RESERVE BLUE CHIP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1996--(UNAUDITED)
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- --------------------------------------------------------------------------------------- ------ ----------
<S> <C> <C>
BEVERAGES (3.4%)
Pepsico, Inc. ....................................................................... 6,000 $ 179,250
----------
COMPUTER NETWORKING (4.6%)
Cisco Systems, Inc.*................................................................. 3,600 244,350
----------
COMPUTER SOFTWARE (13.1%)
CUC International, Inc.*............................................................. 8,250 217,594
Microsoft Corporation*............................................................... 1,500 235,312
National Data Corporation............................................................ 6,000 239,250
----------
692,156
----------
ELECTRICAL EQUIPMENT (0.9%)
American Superconductor Corporation*................................................. 4,500 49,500
----------
ELECTRONICS (4.0%)
Perceptron, Inc.*.................................................................... 6,000 207,750
----------
FINANCIAL SERVICES (9.3%)
Citicorp............................................................................. 2,200 240,350
Federal National Mortgage Association................................................ 6,000 247,500
----------
487,850
----------
HOSPITAL MANAGEMENT (2.3%)
Assisted Living Concepts, Inc.*...................................................... 8,000 119,000
----------
MEDICAL SUPPLIES (1.1%)
LaserSight Corporation*.............................................................. 10,000 59,375
----------
MULTI-LINE INSURANCE (5.5%)
American International Group, Inc. .................................................. 2,500 287,500
----------
OFFSHORE DRILLING (2.5%)
Ensco International, Inc.*........................................................... 3,000 131,625
----------
OIL/GAS EQUIPMENT SERVICES (5.3%)
Oryx Energy Co.*..................................................................... 5,000 103,750
Schlumberger, Ltd. .................................................................. 1,700 176,800
----------
280,550
----------
PACKAGED SOFTWARE (3.7%)
Computer Associates International, Inc. ............................................. 3,000 197,250
----------
PHARMACEUTICALS (14.1%)
Johnson & Johnson.................................................................... 5,000 265,625
Eli Lilly & Company.................................................................. 3,000 229,500
Merck & Company, Inc. ............................................................... 3,000 249,000
----------
744,125
----------
PUBLISHING (5.1%)
Harte-Hanks Communications........................................................... 10,500 270,375
----------
PUBLISHING -- NEWSPAPERS (3.3%)
Tribune Company...................................................................... 2,000 173,000
----------
</TABLE>
2
<PAGE> 3
THE RESERVE PRIVATE EQUITY SERIES--RESERVE BLUE CHIP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- --------------------------------------------------------------------------------------- ------ ----------
<S> <C> <C>
RADIO, TV & BROADCAST COMMUNICATION EQUIPMENT (2.5%)
Sinclair Broadcast Group, Inc.*...................................................... 5,300 $ 128,525
----------
REAL ESTATE (3.9%)
Insignia Financial Group, Inc. Class A*.............................................. 9,000 204,750
----------
RETAIL SPECIALTY (3.0%)
Home Depot, Inc. .................................................................... 3,000 156,375
----------
SEMICONDUCTOR, RELATED DEVICE (2.9%)
Intel Corporation.................................................................... 1,200 152,250
----------
SPECIAL INDUSTRIAL MACHINERY (3.8%)
Thermo Electron Corporation.......................................................... 5,500 199,375
----------
TELECOMMUNICATIONS (3.2%)
CommNet Cellular, Inc.*.............................................................. 6,000 169,500
----------
TELECOMMUNICATIONS EQUIPMENT (2.3%)
Glenayre Technologies, Inc.*......................................................... 5,075 121,166
----------
TOTAL COMMON STOCKS (Cost $4,243,804) (99.8%).......................................... 5,255,597
Other assets, less liabilities (0.2%).................................................. 11,298
----------
NET ASSETS (100%)...................................................................... $5,266,895
==========
</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 November
30, 1996 was $4,243,804, the aggregate gross unrealized appreciation for all
investments was $1,241,238 and aggregate gross unrealized depreciation for all
investments was $229,445.
THE RESERVE PRIVATE EQUITY SERIES--RESERVE CONVERTIBLE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1996--(UNAUDITED)
<TABLE>
<CAPTION>
VALUE
CONVERTIBLE BONDS MATURITY PAR (NOTE 1)
- ----------------------------------------------------------------------------- -------- -------- ----------
<S> <C> <C> <C>
AIR TRANSPORT (4.1%)
Reno Air, Inc., 9%......................................................... 09/30/02 250,000 $ 256,250
UNC, Inc., 7.5%............................................................ 03/31/06 340,000 316,200
----------
572,450
----------
BIO-TECHNOLOGY (2.0%)
NABI, Inc., 6.5%........................................................... 02/01/03 300,000 283,500
----------
BUILDING PRODUCTS -- RETAIL/WHOLESALE (2.1%)
Home Depot, Inc., 3.25%.................................................... 10/01/01 300,000 294,000
----------
COMMERCIAL SERVICES (1.94%)
Pharmaceutical Marketing Services, Inc., 6.25%............................. 02/01/03 350,000 273,000
----------
COMPUTER NETWORKING (2.3%)
Synoptics Communications, Inc., 5.25%...................................... 05/15/03 350,000 330,750
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 4
THE RESERVE PRIVATE EQUITY SERIES--RESERVE CONVERTIBLE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
VALUE
CONVERTIBLE BONDS MATURITY PAR (NOTE 1)
- ----------------------------------------------------------------------------- -------- -------- ----------
<S> <C> <C> <C>
COMPUTER SOFTWARE (2.3%)
MacNeal - Schwendler Corporation, 7.875%................................... 08/18/04 350,000 $ 318,500
----------
ENVIRONMENT -- CONSULTING, ENGINEERING (1.7%)
Roy F. Weston, Inc., 7%.................................................... 04/15/02 270,000 234,900
----------
FOOD CHAINS (2.3%)
Marsh Supermarkets, Inc., 7%............................................... 02/15/03 350,000 329,000
----------
GENERAL INDUSTRIAL MACHINE & EQUIPMENT (2.4%)
Robbins & Myers, Inc., 6.5%................................................ 09/01/03 325,000 338,000
----------
HOSPITAL MANAGEMENT (2.2%)
TheraTx, Inc., 8%.......................................................... 02/01/02 350,000 315,000
----------
HOTEL -- MOTEL (2.2%)
ShoLodge, Inc., 7.5%....................................................... 05/01/04 350,000 311,500
----------
NON-HAZARDOUS WASTE DISPOSAL (1.9%)
WMX Technologies, Inc., 2%................................................. 01/24/05 275,000 266,406
----------
OFFICE -- BUSINESS EQUIPMENT (2.9%)
Corporate Express, Inc., 4.5%.............................................. 07/01/00 450,000 407,250
----------
OIL -- DOMESTIC (1.0%)
Snyder Oil Corporation, 7%................................................. 05/15/01 140,000 140,000
----------
OIL WELL SERVICES (5.0%)
Seacor Holdings, Inc., 5.375%.............................................. 11/15/06 600,000 699,000
----------
PRE-HOSPITAL MEDICAL CARE, TRANSPORTATION (2.3%)
CareLine, Inc., 8%......................................................... 05/01/01 280,000 322,000
----------
REAL ESTATE (2.1%)
Liberty Property Trust, 8%................................................. 07/01/01 250,000 287,500
----------
RESTAURANTS (2.0%)
HomeTown Buffet, Inc., 7%.................................................. 12/01/02 270,000 275,400
----------
RETAIL (1.8%)
Baker (J.), Inc., 7%....................................................... 06/01/02 315,000 256,725
----------
RETAIL -- SPECIALTY (1.7%)
Pier 1 Imports, Inc., 5.75%................................................ 10/01/03 240,000 242,400
----------
RETAIL -- APPAREL (2.3%)
Charming Shoppers, Inc., 7.5%.............................................. 07/15/06 330,000 328,350
----------
TRANSPORT -- AIR FREIGHT (2.4%)
Consolidated Logistics Private Placement, 8%............................... 08/21/00 400,000 340,000
----------
WATER TREATMENT SYSTEMS (2.1%)
United States Filter Corp., 6%............................................. 09/15/05 150,000 288,750
----------
TOTAL CONVERTIBLE BONDS (Cost $7,326,655) (53.0%)............................ $7,454,381
----------
</TABLE>
4
<PAGE> 5
THE RESERVE PRIVATE EQUITY SERIES--RESERVE CONVERTIBLE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
VALUE
PREFERRED STOCKS SHARES (NOTE 1)
- -------------------------------------------------------------------------------------- ------ -----------
<S> <C> <C>
CHEMICALS (2.6%)
Atlantic Richfield Co., 9%.......................................................... 16,000 $ 360,000
-----------
COMMUNICATION -- EQUIPMENT (2.0%)
Loral Space & Communications, 6%*................................................... 5,000 282,500
-----------
CONTAINERS -- METAL/GLASS (1.8%)
Crown Cork & Seal Company, Inc., 4.5%............................................... 5,000 255,625
-----------
ENTERTAINMENT (0.6%)
AMC Entertainment, Inc., $1.75...................................................... 2,500 84,688
-----------
FINANCIAL SERVICES (1.5%)
Interpool, Inc., 5.75%.............................................................. 2,000 207,500
-----------
GAS (1.9%)
MCN Corp., 8.75%.................................................................... 9,500 270,750
-----------
GENERAL INDUSTRIAL MACHINES & EQUIPMENT (1.9%)
Greenfield Industries, Inc., $3.00.................................................. 5,700 262,200
-----------
GLASS PRODUCTS (2.2%)
Corning, Inc., 6%................................................................... 5,200 306,800
-----------
GOLD MINING (2.1%)
Coeur D'Alene Mines Corp., 7%....................................................... 17,500 299,687
-----------
HOTEL -- MOTEL (1.5%)
Host Marriott Corp., 6.75%*......................................................... 4,000 208,000
-----------
LIFE INSURANCE (2.4%)
Aetna, Inc., 6.25%.................................................................. 4,500 334,125
-----------
OIL -- DOMESTIC (3.7%)
Mesa, Inc., 8%...................................................................... 55,000 330,000
Snyder Oil Corporation, 1.5%........................................................ 7,600 188,100
-----------
518,100
-----------
PUBLISHING -- NEWSPAPERS (1.5%)
Hollinger International, Inc., 9.75%................................................ 20,000 217,500
-----------
REAL ESTATE (2.4%)
Redwood Trust, Inc., 9.74%.......................................................... 9,000 338,625
-----------
TELECOMMUNICATIONS (1.3%)
Mobile Telecommunication Technologies Corp., $2.25.................................. 9,000 184,500
-----------
TELECOMMUNICATIONS -- BROADCAST (2.5%)
Tele-Communications, Inc., 5%....................................................... 4,000 348,000
-----------
TOTAL PREFERRED STOCKS (Cost $4,260,461) (31.9%)...................................... $ 4,478,600
-----------
</TABLE>
5
<PAGE> 6
THE RESERVE PRIVATE EQUITY SERIES--RESERVE CONVERTIBLE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- -------------------------------------------------------------------------------------- ------ -----------
<S> <C> <C>
AEROSPACE (0.9%)
International Airline Support Group, Inc.*.......................................... 44,908 $ 134,724
-----------
ENTERTAINMENT (1.6%)
Mountasia Entertainment International, Inc.*........................................ 70,000 223,125
-----------
MOTION PICTURES (2.6%)
All American Communications, Inc.*.................................................. 30,434 369,022
-----------
NONHAZARDOUS WASTE DISPOSAL (1.0%)
Allied Waste Industries, Inc.*...................................................... 15,000 135,000
-----------
PUBLISHING (2.3%)
National Education Corp.*........................................................... 22,500 317,812
-----------
TELECOMMUNICATIONS (1.3%)
Mobile Telecommunication Technologies Corp.*........................................ 16,000 187,000
-----------
TOYS (1.7%)
Noodle Kidoodle, Inc.*.............................................................. 40,000 235,000
-----------
TOTAL COMMON STOCKS (Cost $1,604,072) (11.4%)......................................... $ 1,601,683
-----------
TOTAL INVESTMENT SECURITIES (Cost $13,191,188) (96.3%)................................ 13,534,664
-----------
Other assets (less liabilities) (3.7%)................................................ 522,057
-----------
NET ASSETS (100%)..................................................................... $14,056,721
===========
</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 November
30, 1996 was $13,191,188, the aggregate gross unrealized appreciation for all
investments was $544,100 and aggregate gross unrealized depreciation for all
investments was $200,624.
THE RESERVE PRIVATE EQUITY SERIES--RESERVE EMERGING GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1996--(UNAUDITED)
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- --------------------------------------------------------------------------------------- ------ ----------
<S> <C> <C>
BIO-TECHNOLOGY (2.3%)
Alliance Pharmaceutical Corporation*................................................. 4,000 $ 50,000
Genzyme Corporation*................................................................. 4,800 109,200
----------
159,200
----------
CAPITAL GOODS -- DIVERSIFIED (1.9%)
Danaher Corporation.................................................................. 3,000 134,250
----------
CAPITAL GOODS/INDUSTRIAL (1.1%)
Vishay Intertechnology, Inc.*........................................................ 3,654 76,734
----------
COMMERCIAL SERVICES (1.6%)
CRA Managed Care, Inc.*.............................................................. 2,500 113,750
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 7
THE RESERVE PRIVATE EQUITY SERIES--RESERVE EMERGING GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- --------------------------------------------------------------------------------------- ------ ----------
<S> <C> <C>
COMMUNICATION -- EQUIPMENT (6.1%)
ANADIGICS, Inc.*..................................................................... 3,000 $ 112,500
ECI Telecommunications Ltd. Designs.................................................. 5,000 100,000
FORE Systems, Inc.*.................................................................. 3,400 133,450
Saville Systems Ireland PLC*......................................................... 2,000 83,250
----------
429,200
----------
COMMUNICATION -- NETWORK (6.6%)
Heartland Wireless Communications, Inc.*............................................. 3,500 42,438
IntelCom Group Inc.*................................................................. 5,000 105,000
Pairgain Technologies, Inc.*......................................................... 3,000 191,625
People's Choice TV Corporation*...................................................... 7,500 47,812
Wireless One, Inc.*.................................................................. 8,500 79,688
----------
466,563
----------
COMPUTER NETWORKING (8.5%)
Ascend Communications, Inc.*......................................................... 3,600 256,050
Bay Networks Inc.*................................................................... 1,950 52,163
Shiva Corporation*................................................................... 2,400 99,000
3Com Corporation*.................................................................... 2,500 187,812
----------
595,025
----------
COMPUTER PERIPHERAL EQUIPMENT (2.0%)
Dialogic Corporation*................................................................ 4,500 138,375
----------
COMPUTER SERVICES (1.3%)
HNC Software, Inc.*.................................................................. 800 23,800
Rational Software Corporation*....................................................... 1,900 66,975
----------
90,775
----------
COMPUTER SOFTWARE (9.1%)
Business Objects S. A. -- ADR*....................................................... 5,200 68,900
Citrix Systems Inc.*................................................................. 2,600 118,625
Data Translation, Inc.*.............................................................. 8,000 91,000
Dendrite International, Inc.*........................................................ 4,500 108,000
EPIC Design Technology, Inc.*........................................................ 4,000 100,000
Sapient Corporation*................................................................. 2,000 79,000
Symantec Corp.*...................................................................... 5,000 74,375
----------
639,900
----------
CONSUMER GROWTH (6.3%)
Activision, Inc.*.................................................................... 16,000 185,750
Conso Products Company*.............................................................. 8,625 114,281
Electronic Arts, Inc.*............................................................... 2,400 77,100
Lin Television Corporation*.......................................................... 1,700 68,213
----------
445,344
----------
ELECTRIC MEASUREMENT & TESTING INSTRUMENTS (2.2%)
Opal, Inc.*.......................................................................... 8,500 155,656
----------
ENERGY (1.9%)
Cross Timbers Oil Company............................................................ 5,500 132,000
----------
</TABLE>
7
<PAGE> 8
THE RESERVE PRIVATE EQUITY SERIES--RESERVE EMERGING GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- --------------------------------------------------------------------------------------- ------ ----------
<S> <C> <C>
HEALTH (3.8%)
HCIA, Inc.*.......................................................................... 2,300 $ 66,125
National Dentex Corporation*......................................................... 6,000 102,000
PacifiCare Health Systems, Inc.*..................................................... 1,200 99,600
----------
267,725
----------
HOUSEHOLD FURNISHINGS & APPLIANCES (1.6%)
Williams-Sonoma, Inc.*............................................................... 3,200 111,200
----------
MANAGED CARE (4.7%)
Healthsource, Inc.*.................................................................. 4,000 45,000
MedPartners/Mullikin, Inc.*.......................................................... 7,100 161,525
PhyCor, Inc.*........................................................................ 3,787 122,367
----------
328,892
----------
MISCELLANEOUS CONSUMER (1.7%)
On Assignment, Inc.*................................................................. 4,000 120,000
----------
OFFICE-BUSINESS EQUIPMENT (1.9%)
HPR Inc.*............................................................................ 9,000 135,000
----------
OFFSHORE DRILLING (1.3%)
Parker Drilling Company*............................................................. 10,000 93,750
----------
PAPER (0.9%)
Data Documents, Inc.*................................................................ 6,000 64,500
----------
PHARMACEUTICALS (3.7%)
Centocor, Inc.*...................................................................... 3,200 88,400
Dura Pharmaceuticals, Inc.*.......................................................... 4,600 170,200
----------
258,600
----------
RADIO, TV & BROADCAST COMM. EQUIP. (0.6%)
American Telecasting, Inc.*.......................................................... 5,500 43,312
----------
RESTAURANTS (1.2%)
Outback Steakhouse, Inc.*............................................................ 3,000 86,625
----------
RETAIL -- SPECIALTY (10.5%)
Borders Group, Inc.*................................................................. 4,500 164,250
Corporate Express, Inc.*............................................................. 4,000 112,000
PetSmart, Inc.*...................................................................... 6,000 153,000
Staples, Inc.*....................................................................... 7,500 185,625
The Sports Authority, Inc.*.......................................................... 6,325 124,919
----------
739,794
----------
SEMICONDUCTOR-RELATED DEVICES (4.5%)
Intel Corporation.................................................................... 1,800 228,375
LSI Logic Corporation*............................................................... 3,000 90,375
----------
318,750
----------
SYSTEM SOFTWARE/CLIENT SERVER (3.6%)
Hummingbird Communications Ltd.*..................................................... 3,400 107,525
Informix Corporation*................................................................ 6,000 142,500
----------
250,025
----------
</TABLE>
8
<PAGE> 9
THE RESERVE PRIVATE EQUITY SERIES--RESERVE EMERGING GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- --------------------------------------------------------------------------------------- ------ ----------
<S> <C> <C>
TELECOMMUNICATIONS (3.0%)
Cascade Communications Corp.*........................................................ 3,000 $ 207,375
----------
TELECOMMUNICATIONS EQUIPMENT (5.4%)
Comverse Technology, Inc.*........................................................... 4,000 136,000
DSC Communications Corporation*...................................................... 2,000 36,000
Newbridge Networks Corporation*...................................................... 3,600 107,100
P-COM, Inc.*......................................................................... 3,200 101,600
----------
380,700
----------
TOTAL COMMON STOCKS (Cost $5,778,562) (99.3%).......................................... 6,983,020
Other assets, less liabilities (0.7%).................................................. 49,008
----------
NET ASSETS (100%)...................................................................... $7,032,028
==========
</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 November
30, 1996 was $5,778,562, the aggregate gross unrealized appreciation for all
investments was $1,889,605 and aggregate gross unrealized depreciation for all
investments was $685,147.
THE RESERVE PRIVATE EQUITY SERIES--RESERVE INFORMED INVESTORS GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1996--(UNAUDITED)
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- -------------------------------------------------------------------------------------- ------- ----------
<S> <C> <C>
BUSINESS EQUIPMENT/SERVICES (3.8%)
Equifax, Inc. ...................................................................... 6,700 $ 219,425
----------
CLOTHING (4.2%)
Tommy Hilfiger Corporation*......................................................... 4,600 248,400
----------
COMPUTER MEMORY DEVICES (3.3%)
Western Digital Corporation*........................................................ 3,600 193,500
----------
COMPUTER MICROSYSTEMS (2.4%)
Compaq Computer Corp.*.............................................................. 1,800 142,650
----------
COMPUTER NETWORKING (4.9%)
Cisco Systems, Inc.*................................................................ 4,200 285,075
----------
COMPUTER SOFTWARE (0.8%)
CompUSA, Inc.*...................................................................... 1,000 45,000
----------
COMPUTER -- PERIPHERAL EQUIPMENT (3.3%)
American Power Conversion Corp.*.................................................... 8,200 194,238
----------
COMPUTERS (5.0%)
Dell Computer Corporation*.......................................................... 2,900 294,713
----------
ELECTRONICS (2.2%)
Diebold, Inc. ...................................................................... 2,200 131,175
----------
FOOD (4.4%)
Safeway, Inc.*...................................................................... 6,300 255,937
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 10
THE RESERVE PRIVATE EQUITY SERIES--RESERVE INFORMED INVESTORS GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- -------------------------------------------------------------------------------------- ------- ----------
<S> <C> <C>
HEALTH INSURANCE (2.6%)
Sunamerica Inc. .................................................................... 3,600 $ 150,750
----------
LIFE INSURANCE (3.9%)
Conseco Inc. ....................................................................... 4,100 229,088
----------
MISC. MANUFACTURING (3.6%)
International Game Technology....................................................... 10,700 208,650
----------
MULTI-LINE INSURANCE (4.8%)
Travelers Group, inc. .............................................................. 6,266 282,000
----------
OIL -- DOMESTIC (5.1%)
Unocal Corporation.................................................................. 7,300 297,475
----------
OIL -- INTERNATIONAL (2.6%)
Atlantic Richfield Company.......................................................... 1,100 153,037
----------
OIL/GAS EQUIPMENT SERVICES (3.9%)
Smith international, Inc.*.......................................................... 5,600 228,900
----------
PACKAGED SOFTWARE (1.4%)
Cadence Design Systems, Inc.*....................................................... 2,000 79,750
----------
RETAIL SPECIALTY (2.9%)
CDW Computer Centers, Inc.*......................................................... 2,600 171,600
----------
RETAIL APPAREL (10.6%)
Gap, Inc. .......................................................................... 3,000 96,375
Ross Stores, Inc. .................................................................. 5,100 259,463
TJX Companies, Inc. ................................................................ 5,800 261,725
----------
617,563
----------
SEMICONDUCTOR, RELATED DEVICE (2.8%)
Intel Corporation................................................................... 1,300 164,937
----------
SHOES (5.3%)
Nike, Inc. ......................................................................... 5,400 307,125
----------
TOTAL COMMON STOCKS (Cost $4,287,830) (83.8%)......................................... $4,900,988
----------
US TREASURY BILLS
- --------------------------------------------------------------------------------------
United States Treasury Bill, 5.0%, 1/30/97 (Cost $793,444) (13.6%).................. 800,000 793,444
----------
TOTAL INVESTMENTS (Cost $5,081,274) (97.4%)........................................... 5,694,432
Other assets, less liabilities (2.6%)................................................. 152,794
----------
NET ASSETS (100%)..................................................................... $5,847,226
==========
</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 November
30, 1996 was $5,081,274, the aggregated gross unrealized appreciation for all
investments was $652,909 and aggregate gross unrealized depreciation for all
investments was $39,751.
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 11
THE RESERVE PRIVATE EQUITY SERIES--RESERVE INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1996--(UNAUDITED)
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- -------------------------------------------------------------------------------------- ------- ----------
<S> <C> <C>
AUSTRIA (0.8%)
Wolford AG.......................................................................... 600 $ 71,103
----------
AUSTRALIA (2.2%)
Australian Hospital Care*........................................................... 49,000 96,536
Faulding FH & Co. .................................................................. 15,600 110,109
----------
206,645
----------
DENMARK (2.8%)
Carli Gray International*........................................................... 1,400 70,543
Coloplast "B"....................................................................... 1,000 110,276
Falck A/S........................................................................... 300 80,926
----------
261,745
----------
FINLAND (2.9%)
Nokia AB............................................................................ 3,100 172,345
TT Tieto OY......................................................................... 1,300 100,873
----------
273,218
----------
FRANCE (3.8%)
Carrefour........................................................................... 360 222,198
Grand Optical Photoservice.......................................................... 390 63,424
Sodexho............................................................................. 150 74,961
----------
360,583
----------
GERMANY (3.8%)
Altana Ind. Aktien.................................................................. 150 125,683
Fresenius AG Pfd. .................................................................. 650 131,361
Douglas Holdings AG................................................................. 2,700 112,149
----------
369,193
----------
HONG KONG (13.2%)
Hang Seng Bank Ltd. ................................................................ 18,000 217,085
Henderson Land...................................................................... 24,000 241,335
Hong Kong & China Gas Company....................................................... 149,800 297,392
Hong Kong & China Gas Company (Warrants -- expires 9/30/97)*........................ 1,900 1,198
HSBC Holdings....................................................................... 8,436 175,660
Sun Hung Kai Properties Ltd. ....................................................... 20,000 248,319
Wing Hang Bank Ltd. ................................................................ 12,000 53,699
----------
1,234,688
----------
INDONESIA (1.4%)
PT Bank Internasional Indonesia..................................................... 61,154 56,733
PT Darya Varia Laboratoria.......................................................... 22,400 35,112
PT Gudang Garam..................................................................... 8,000 34,037
PT Steady Safe...................................................................... 1,466 1,720
----------
127,602
----------
</TABLE>
11
<PAGE> 12
THE RESERVE PRIVATE EQUITY SERIES--RESERVE INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- -------------------------------------------------------------------------------------- ------- ----------
<S> <C> <C>
ITALY (2.4%)
Bulgari............................................................................. 7,200 $ 133,219
Mediolanum*......................................................................... 8,000 82,976
----------
216,195
----------
MALAYSIA (9.9%)
Arab-Malaysian Merchant Bank Berhad................................................. 16,000 127,240
Berjaya Sports Toto................................................................. 26,000 123,442
Commerce Asset Holding Berhad....................................................... 10,000 76,360
DCB Holdings Berhad................................................................. 16,000 54,758
Gamuda Berhad*...................................................................... 13,000 117,270
Guinness Anchor..................................................................... 37,000 90,762
Malayan Banking Berhad.............................................................. 10,000 98,912
O.Y.L. Industries Berhad............................................................ 10,600 110,089
United Engineers (Malaysia) Ltd. ................................................... 13,000 117,784
----------
916,617
----------
NETHERLANDS (6.8%)
Ahold............................................................................... 4,545 284,161
Ahrend.............................................................................. 1,500 77,355
Elsevier............................................................................ 6,000 102,213
Ordina Beheer*...................................................................... 1,000 46,355
Wolters Kluwer...................................................................... 1,002 130,925
----------
641,009
----------
NORWAY (3.4%)
Merkantildata....................................................................... 8,500 158,809
Tandberg*........................................................................... 3,300 89,400
Tomra Systems....................................................................... 5,000 73,955
----------
322,164
----------
PHILIPPINES (1.6%)
Belle Corporation*.................................................................. 200,000 53,255
DMCI Holdings Inc.*................................................................. 143,000 97,914
----------
151,169
----------
SINGAPORE (4.9%)
City Developments Limited........................................................... 9,000 79,595
DBS Land Limited.................................................................... 12,000 42,793
Development Bank of Singapore Limited............................................... 5,000 64,546
Oversea-Chinese Banking Corporation Ltd. ........................................... 5,000 60,623
Oversea-Chinese Banking Corporation Ltd. (Rights)*.................................. 300 2,439
Overseas Union Bank Ltd. ........................................................... 6,000 44,077
Parkway Holdings Limited............................................................ 43,000 162,542
----------
456,615
----------
</TABLE>
12
<PAGE> 13
THE RESERVE PRIVATE EQUITY SERIES--RESERVE INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- -------------------------------------------------------------------------------------- ------- ----------
<S> <C> <C>
SPAIN (4.8%)
Banco Intercontinental.............................................................. 900 $ 117,974
Gas Natural......................................................................... 760 157,520
Sol Melia*.......................................................................... 5,600 172,288
----------
447,782
----------
SWEDEN (6.6%)
Astra AB Series A................................................................... 1,400 67,095
Autoliv AB Reg. S................................................................... 3,000 131,720
Elekta Instrument AB Series B....................................................... 1,100 38,392
Ericsson Telefonaktiebolaget........................................................ 6,800 209,502
Wm Data AB Series B................................................................. 2,000 167,292
----------
614,001
----------
SWITZERLAND (6.5%)
ABB AG-Bearer....................................................................... 100 125,086
Nestle SA........................................................................... 70 75,964
Roche Holding AG.................................................................... 18 138,323
Roche Holding AG Warrants*.......................................................... 8 226
Sandoz AG........................................................................... 150 174,630
Zurich Versicherungs................................................................ 350 99,317
----------
613,546
----------
THAILAND (0.4%)
Central Pattana Public Company Ltd. ................................................ 10,000 36,424
Thai Farmers Bank Public Company Ltd. (Warrants)*................................... 500 490
----------
36,914
----------
UNITED KINGDOM (12.7%)
Dixons Group PLC.................................................................... 17,000 163,652
HSBC Holdings PLC................................................................... 12,683 273,832
J.D. Wetherspoon PLC................................................................ 4,605 95,243
Logica PLC.......................................................................... 6,600 93,777
Misys PLC........................................................................... 5,400 90,438
Reed International PLC.............................................................. 7,400 143,407
Reuters Holding PLC................................................................. 10,000 121,488
Serco Group......................................................................... 8,200 91,692
Standard Chartered PLC.............................................................. 10,476 118,992
----------
1,192,521
----------
UNITED STATES (1.7%)
Santa Isabel ADR.................................................................... 5,200 130,650
Tata Engineering and Locomotive Company Ltd. ....................................... 3,000 30,540
----------
161,190
----------
TOTAL COMMON STOCKS (Cost $7,607,503) (92.6%)......................................... 8,674,500
Other assets, less liabilities (7.4%)................................................. 693,568
----------
NET ASSETS (100%)..................................................................... $9,368,068
==========
</TABLE>
13
<PAGE> 14
THE RESERVE PRIVATE EQUITY SERIES--RESERVE INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
INDUSTRY COMPOSITION
<TABLE>
<CAPTION>
INDUSTRY PERCENT
- ------------------------------------------- -------
<S> <C>
Beverages.................................. 1.0%
Bio Tech & Med Devices..................... 3.2
Commercial Banks........................... 13.8
Computer Software.......................... 5.4
Computers & Peripheral..................... 1.8
Construction & Engineering................. 5.0
Consumer Service........................... 2.8
Drug & Health Care......................... 8.5
Entertainment & Leisure.................... 1.9
Financial Services......................... 6.1
Food Processing............................ 0.8
Lodging & Restaurants...................... 3.0
<CAPTION>
INDUSTRY PERCENT
- ------------------------------------------- -------
<S> <C>
Machinery.................................. 3.6%
Public Utilities........................... 4.9
Publishing................................. 4.0
Real Estate Development.................... 5.9
Real Estate Investment..................... 1.2
Retailing.................................. 14.3
Telecommunications......................... 5.0
Tobacco.................................... 0.4
------
Industry percent of net assets............. 92.6%
------
Other assets, less liabilities............. 7.4
------
PERCENT OF NET ASSETS...................... 100%
======
</TABLE>
- ---------------
Value of investments are shown as a percentage of Net Assets.
For federal income tax purposes the tax basis for investments owned at November
30, 1996 was $7,607,503, the aggregate gross unrealized appreciation for all
investments was $1,158,282 and aggregate gross unrealized depreciation for all
investments was $91,285.
THE RESERVE PRIVATE EQUITY SERIES--RESERVE LARGE-CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1996--(UNAUDITED)
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- -------------------------------------------------------------------------------------- --------- ----------
<S> <C> <C>
BANKS (4.7%)
Wells Fargo & Company............................................................... 400 $ 113,850
----------
BEVERAGES (10.4%)
Anheuser-Busch Companies, Inc. ..................................................... 2,400 101,700
Coca-Cola Company................................................................... 1,700 86,913
Earthgrains Company................................................................. 2,100 62,737
----------
PepsiCo, Inc. ...................................................................... 251,350
----------
COMPUTER SOFTWARE (3.2%)
Microsoft Corporation*.............................................................. 500 78,438
----------
COMPUTERS (7.5%)
Hewlett-Packard Company............................................................. 1,900 102,362
International Business Machine Corp. ............................................... 500 79,688
----------
182,050
----------
COSMETICS (8.6%)
Clorox Company...................................................................... 1,000 104,250
Gillette Company.................................................................... 1,400 103,250
----------
207,500
----------
ENTERTAINMENT (4.6%)
Walt Disney Company (Holding Co.)................................................... 1,500 110,625
----------
</TABLE>
14
<PAGE> 15
THE RESERVE PRIVATE EQUITY SERIES--RESERVE LARGE-CAP VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- -------------------------------------------------------------------------------------- --------- ----------
<S> <C> <C>
FOOD (18.6%)
CPC International, Inc. ............................................................ 800 $ 66,600
Campbell Soup Company............................................................... 1,400 115,675
Hershey Foods Corporation........................................................... 2,200 109,725
Quaker Oats Company................................................................. 1,500 59,063
Wrigley (WM) Jr. Company............................................................ 1,700 99,237
----------
450,300
----------
MEDICAL SUPPLIES (3.8%)
Pfizer, Inc. ....................................................................... 1,000 89,625
----------
PHARMACEUTICALS (9.0%)
Johnson & Johnson................................................................... 1,900 100,937
Merck & Company, Inc. .............................................................. 1,400 116,200
----------
217,137
----------
PHOTOGRAPHY (4.0%)
Eastman Kodak Company............................................................... 1,200 97,200
----------
PUBLISHING (4.2%)
Gannett Company, Inc. .............................................................. 1,300 102,050
----------
PUBLISHING -- NEWSPAPERS (2.9%)
New York Times Company Class A...................................................... 1,900 71,013
----------
RETAIL STORES -- GENERAL MERCHANDISING (3.3%)
Wal-Mart Stores, Inc. .............................................................. 3,000 76,500
----------
SEMICONDUCTOR -- RELATED DEVICE (6.3%)
Intel Corporation................................................................... 1,200 152,250
----------
TELECOMMUNICATIONS (4.3%)
American Express Company............................................................ 2,000 104,500
----------
TOTAL COMMON STOCKS (Cost $1,876,720) (95.4%)......................................... 2,304,388
Other assets, less liabilities (4.6%)................................................. 111,703
----------
NET ASSETS (100%)..................................................................... $2,416,091
==========
</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 November
30, 1996 was $1,876,720, the aggregate gross unrealized appreciation for all
investments was $4,836 and aggregate gross unrealized depreciation for all
investments was $432,504.
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 16
THE RESERVE PRIVATE EQUITY SERIES--RESERVE MID-CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1996--(UNAUDITED)
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- -------------------------------------------------------------------------------------- --------- ----------
<S> <C> <C>
AUTO PARTS -- ORIGINAL EQUIPMENT (3.3%)
Gentex Corporation*................................................................. 5,600 $ 109,025
----------
BUSINESS EQUIPMENT/SERVICE (10.4%)
Equifax Inc. ....................................................................... 5,400 176,850
Greenwich Air Services, Inc.*....................................................... 3,200 73,600
Interim Services, Inc.*............................................................. 2,400 94,200
----------
344,650
----------
CHEMICAL SPECIALTY (4.2%)
Raychem Corporation................................................................. 1,650 140,663
----------
CLOTHING (3.2%)
Fruit of the Loom, Inc.*............................................................ 3,000 106,875
----------
COMMUNICATION -- NETWORK (3.5%)
LCI International, Inc.*............................................................ 3,600 117,450
----------
COMPUTER SERVICES (3.6%)
Acxiom Corporation*................................................................. 5,200 119,275
----------
COMPUTER SOFTWARE (3.9%)
Black Box Corporation*.............................................................. 3,200 131,200
----------
COMPUTERS (5.2%)
Gateway 2000, Inc.*................................................................. 3,200 171,600
----------
COMPUTERS -- PERIPHERAL EQUIPMENT (2.3%)
Dialogic Corporation*............................................................... 3,100 77,500
----------
FINANCE -- PERSONAL LOANS (4.6%)
MBNA Corporation.................................................................... 3,800 153,425
----------
FOOD (2.7%)
JP Foodservice, Inc.*............................................................... 3,700 90,187
----------
HEALTH (1.8%)
American Medical Response, Inc.*.................................................... 1,950 58,500
----------
HOSPITAL SUPPLIES (2.2%)
Advanced Technology Laboratories, Inc.*............................................. 2,600 74,100
----------
HOUSEHOLD FURNISHINGS APPLIANCE (4.2%)
Herman Miller, Inc. ................................................................ 3,000 141,000
----------
LIFE INSURANCE (5.7%)
American Bankers Insurance Group, Inc. ............................................. 1,700 82,822
Protective Life Corporation......................................................... 2,600 105,625
----------
188,447
----------
MISCELLANEOUS CONSUMER CYCLICALS (2.5%)
Inbrand Corporation*................................................................ 3,450 83,662
----------
MISCELLANEOUS METALS (2.8%)
Wolverine Tube, Inc.*............................................................... 2,500 93,125
----------
</TABLE>
16
<PAGE> 17
THE RESERVE PRIVATE EQUITY SERIES--RESERVE MID-CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
VALUE
COMMON STOCKS SHARES (NOTE 1)
- -------------------------------------------------------------------------------------- --------- ----------
<S> <C> <C>
MOBIL HOMES (2.4%)
Palm Harbor Homes, Inc.*............................................................ 3,000 $ 79,500
----------
OIL/GAS EQUIPMENT SERVICES (11.0%)
Nuevo Energy Company*............................................................... 2,800 140,000
Rowan Companies, Inc.*.............................................................. 4,800 113,400
Tidewater Inc. ..................................................................... 2,550 111,563
----------
364,963
----------
POLLUTION CONTROL (3.5%)
Newpark Resources, Inc.*............................................................ 3,370 117,950
----------
RESTAURANTS (5.6%)
Cracker Barrel Old Country Store, Inc.*............................................. 3,400 81,175
Sonic Corporation*.................................................................. 4,600 105,225
----------
186,400
----------
RETAIL STORES -- DRUGS (3.0%)
CVS Corporation*.................................................................... 2,400 98,700
----------
TRUCKERS (2.9%)
Swift Transportation Co., Inc.*..................................................... 4,000 96,250
----------
TOTAL COMMON STOCKS (Cost $2,489,666) (94.5%) 3,144,447
Other assets, less liabilities (5.5%)................................................. 183,717
----------
NET ASSETS (100%)..................................................................... $3,328,164
==========
</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 November
30, 1996 was $2,489,666, the aggregate gross unrealized appreciation for all
investments was $700,515 and aggregate gross unrealized depreciation for all
investments was $45,734.
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE> 18
THE RESERVE PRIVATE EQUITY SERIES
STATEMENTS OF ASSETS AND LIABILITIES--NOVEMBER 30, 1996--(UNAUDITED)
<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 $4,243,804, $13,191,188,
$5,778,562, respectively)........................................ $5,255,597 $13,534,664 $6,983,020
Cash............................................................... 119,874 573,247 67,053
Receivable for investment securities sold.......................... 145,515 305,070 --
Receivable for fund shares sold.................................... 200 -- 8,538
Dividends receivable............................................... 3,507 20,689 340
Interest receivable................................................ -- 123,793 --
---------- ----------- ----------
Total assets..................................................... 5,524,693 14,557,463 7,058,951
---------- ----------- ----------
LIABILITIES:
Payable for investment securities purchased........................ 249,600 495,388 --
Payable for fund shares redeemed................................... 1,052 -- 15,512
Accrued comprehensive fee.......................................... 6,055 5,308 7,994
Other payables and accrued expenses................................ 1,091 46 3,417
---------- ----------- ----------
Total liabilities................................................ 257,798 500,742 26,923
---------- ----------- ----------
NET ASSETS........................................................... $5,266,895 $14,056,721 $7,032,028
========== =========== ==========
NET ASSETS CONSIST OF (NOTE 1):
Capital Stock (Par Value $.001 per share).......................... $ 357 $ 1,358 $ 405
Additional paid in capital......................................... 4,219,056 13,582,914 5,922,942
Accumulated net realized gain (loss) on investments................ 35,689 25,603 (95,777)
Accumulated undistributed net investment income.................... -- 103,369 --
Net unrealized appreciation on investments......................... 1,011,793 343,477 1,204,458
---------- ----------- ----------
NET ASSETS, at value, applicable to Shares of Beneficial Interest
outstanding (Note 5)............................................... $5,266,895 $14,056,721 $7,032,028
========== =========== ==========
CLASS A:
Net Assets......................................................... $5,180,863 $14,046,271 $6,677,085
---------- ----------- ----------
Shares Outstanding................................................. 351,104 1,357,231 384,773
---------- ----------- ----------
Net Asset Value and redemption value per share (net assets/shares
outstanding)..................................................... $ 14.76 $ 10.35 $ 17.35
========== =========== ==========
Maximum offering price per share (net asset value plus sales charge
of 4.50% of offering price)...................................... $ 15.46 $ 10.84 $ 18.17
========== =========== ==========
CLASS D:
Net Assets......................................................... $ 86,032 $ 10,450 $ 354,943
---------- ----------- ----------
Shares Outstanding................................................. $ 5,864 1,011* 20,582
---------- ----------- ----------
Net Asset Value, offering and redemption value per share (net
assets/shares outstanding)....................................... $ 14.67 $ 10.33 $ 17.25
========== =========== ==========
</TABLE>
- ---------------
* Calculated net asset value differs from actual net asset value due to rounding
of fractional shares.
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE> 19
THE RESERVE PRIVATE EQUITY SERIES
STATEMENTS OF ASSETS AND LIABILITIES--NOVEMBER 30,
1996--(UNAUDITED)--(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 $5,081,274, $7,607,503,
$1,876,720, respectively)........................................ $5,694,432 $ 8,674,500 $ 2,304,388
Cash............................................................... 570,009 717,573 107,665
Receivable for investment securities sold.......................... 178,841 191,907 --
Receivable for fund shares sold.................................... -- -- 4,173
Dividends receivable............................................... 1,204 2,604 3,141
---------- ----------- -----------
Total assets..................................................... 6,444,486 9,586,584 2,419,367
---------- ----------- -----------
LIABILITIES:
Payable for investment securities purchased........................ 482,617 204,348 --
Payable for fund shares redeemed................................... 106,764 -- --
Accrued comprehensive fee.......................................... 6,563 12,365 2,733
Other payables and accrued expenses................................ 1,316 1,803 543
---------- ----------- -----------
Total liabilities................................................ 597,260 218,516 3,276
---------- ----------- -----------
NET ASSETS........................................................... $5,847,226 $ 9,368,068 $ 2,416,091
========== =========== ===========
NET ASSETS CONSIST OF (NOTE 1):
Capital Stock (Par Value $.001 per share).......................... $ 484 $ 785 $ 188
Additional paid in capital......................................... 4,598,013 8,582,636 1,992,440
Accumulated net realized gain (loss) on investments and foreign
currency transactions ........................................... 635,571 (282,326) (4,205)
Net unrealized appreciation on investments and foreign currency
transactions..................................................... 613,158 1,066,973 427,668
---------- ----------- -----------
NET ASSETS, at value, applicable to Shares of Beneficial Interest
outstanding (Note 5)............................................... $5,847,226 $ 9,368,068 $ 2,416,091
========== =========== ===========
CLASS A:
Net Assets......................................................... $5,834,400 $ 9,338,257 $ 2,406,373
---------- ----------- -----------
Shares Outstanding................................................. 482,767 782,302 187,406
---------- ----------- -----------
Net Asset Value and redemption value per share (net assets/shares
outstanding)..................................................... $ 12.09 $ 11.94 $ 12.84
========== =========== ===========
Maximum offering price per share (net asset value plus sales charge
of 4.50% of offering price)...................................... $ 12.66 $ 12.50 $ 13.45
========== =========== ===========
CLASS D:
Net Assets......................................................... $ 12,826 $ 29,811 $ 9,718
---------- ----------- -----------
Shares Outstanding................................................. 1,068 2,509 759
---------- ----------- -----------
Net Asset Value, offering and redemption value per share (net
assets/shares outstanding)....................................... $ 12.01 $ 11.88 $ 12.80
========== =========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE> 20
THE RESERVE PRIVATE EQUITY SERIES
STATEMENTS OF ASSETS AND LIABILITIES--NOVEMBER 30,
1996--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
RESERVE
MID-CAP
GROWTH FUND
-----------
<S> <C>
ASSETS:
Investment in securities, at value (cost $2,489,666)......................................... $3,144,447
Cash......................................................................................... 254,632
Receivable for fund shares sold.............................................................. 42,974
Dividends receivable......................................................................... 2,191
----------
Total assets............................................................................... 3,444,244
----------
LIABILITIES:
Payable for investment securities purchased.................................................. 108,300
Payable for fund shares redeemed............................................................. 2,173
Accrued comprehensive........................................................................ 3,770
Other accrued expenses....................................................................... 1,837
----------
Total liabilities.......................................................................... 116,080
----------
NET ASSETS..................................................................................... $3,328,164
==========
NET ASSETS CONSIST OF (NOTE 1):
Capital Stock (Par Value $.001 per share).................................................... $ 263
Additional paid in capital................................................................... 2,793,046
Accumulated net realized loss on investments................................................. (119,926)
Net unrealized appreciation on investments................................................... 654,781
----------
NET ASSETS, at value, applicable to Shares of Beneficial Interest outstanding (Note 5)......... $3,328,164
==========
CLASS A:
Net Assets................................................................................... $1,232,893
----------
Shares Outstanding........................................................................... 97,027
----------
Net Asset Value and redemption value per share (net assets/shares outstanding)............... $ 12.71
----------
Maximum offering price per share (net asset value plus sales charge of 4.50% of offering
price)..................................................................................... $ 13.31
==========
CLASS D:
Net Assets................................................................................... $2,095,271
----------
Shares Outstanding........................................................................... 165,704
----------
Net Asset Value, offering and redemption value per share (net assets/shares outstanding)..... $ 12.64
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE> 21
THE RESERVE PRIVATE EQUITY SERIES
STATEMENTS OF OPERATIONS--NOVEMBER 30, 1996--(UNAUDITED)
<TABLE>
<CAPTION> RESERVE
RESERVE RESERVE RESERVE INFORMED
BLUE CHIP CONVERTIBLE EMERGING INVESTORS
GROWTH FUND SECURITIES FUND GROWTH FUND GROWTH FUND
----------------- ---------------- ----------------- -----------------
SEPTEMBER 3,
1996
(COMMENCEMENT OF
OPERATIONS) TO
SIX MONTHS ENDED NOVEMBER 30, SIX MONTHS ENDED SIX MONTHS ENDED
NOVEMBER 30, 1996 1996 NOVEMBER 30, 1996 NOVEMBER 30, 1996
----------------- ---------------- ----------------- -----------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends............................ $ 18,558 $ 47,732 $ 1,815 $ 7,332
Interest............................. -- 64,931 -- 27,138
--------- ---------- --------- -----------
Total investment income....... 18,558 112,663 1,815 34,470
EXPENSES
Comprehensive fee (Note 3)........... 40,653 23,696 51,802 43,186
12b-1 Fee (Note 4)
Class A............................ 6,685 3,943 8,235 7,173
Class D............................ 361 25 1,596 98
--------- ---------- --------- -----------
Total expenses................ 47,699 27,664 61,633 50,457
--------- ---------- --------- -----------
Less fees waived................... -- (18,370) -- --
--------- ---------- --------- -----------
Net Expenses....................... -- 9,294 -- --
--------- ---------- --------- -----------
NET INVESTMENT INCOME (LOSS)........... (29,141) 103,369 (59,818) (15,987)
--------- ---------- --------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Proceeds from sales of securities.... 1,588,010 3,809,480 376,363 4,494,889
Cost of securities sold.............. 1,477,938 3,783,877 524,329 3,693,676
--------- ---------- --------- -----------
Net realized gain (loss) on
investments (Note 1)............... 110,072 25,603 (147,966) 801,213
Net unrealized appreciation
(depreciation) on investments...... (132,802) 343,477 (619,077) (1,826,980)
--------- ---------- --------- -----------
Net realized and unrealized gain
(loss) on investments.............. (22,730) 369,080 (767,043) (1,025,767)
--------- ---------- --------- -----------
Net increase (decrease) in net assets
resulting from operations.......... $ (51,871) $ 472,449 $(826,861) $(1,041,754)
========= ========== ========= ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE> 22
THE RESERVE PRIVATE EQUITY SERIES
STATEMENTS OF OPERATIONS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
RESERVE RESERVE RESERVE
INTERNATIONAL LARGE-CAP MID-CAP
EQUITY FUND VALUE FUND GROWTH FUND
----------------- ----------------- -----------------
SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
NOVEMBER 30, 1996 NOVEMBER 30, 1996 NOVEMBER 30, 1996
----------------- ----------------- -----------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividends............................................. $ 31,921* $ 13,726 $ 6,139
Interest.............................................. 3,028 -- --
---------- -------- ----------
Total investment income........................ 34,949 13,726 6,139
EXPENSES
Comprehensive fee (Note 3)............................ 53,097 13,911 21,307
12b-1 Fee (Note 4)
Class A............................................. 7,561 2,312 889
Class D............................................. 97 27 10,646
---------- -------- ----------
Total expenses................................. 60,755 16,250 32,842
---------- -------- ----------
NET INVESTMENT LOSS..................................... (25,806) (2,524) (26,703)
---------- -------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Proceeds from sales of securities..................... 1,862,433 176,712 1,171,208
Cost of securities sold............................... 2,072,792 180,917 1,207,609
---------- -------- ----------
Net realized loss on investments and foreign currency
transactions (Note 1)............................... (210,359) (4,205) (36,401)
Net unrealized appreciation on investments and foreign
currency transactions............................... 735,951 357,545 201,110
---------- -------- ----------
Net realized and unrealized gain on investments and
foreign currency transactions....................... 525,592 353,340 164,709
---------- -------- ----------
Net increase in net assets resulting from
operations.......................................... $ 499,786 $ 350,816 $ 138,006
========== ======== ==========
</TABLE>
- ---------------
* Net of foreign taxes withheld of $4,955
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE> 23
THE RESERVE PRIVATE EQUITY SERIES
STATEMENTS OF CHANGES IN NET ASSETS--(UNAUDITED)
<TABLE>
<CAPTION>
RESERVE
CONVERTIBLE
RESERVE BLUE CHIP GROWTH FUND SECURITIES FUND
--------------------------------- ----------------
SEPTEMBER 3,
1996
(COMMENCEMENT OF
OPERATIONS) TO
SIX MONTHS ENDED YEAR ENDED NOVEMBER 30,
NOVEMBER 30, 1996 MAY 31, 1996 1996
----------------- ------------ ----------------
<S> <C> <C> <C>
INCREASE IN NET ASSETS FROM INVESTMENT OPERATIONS:
Net investment income (loss).................................. $ (29,141) $ (34,916) $ 103,369
Net realized gain (loss) from investments..................... 110,072 (2,045) 25,603
Net unrealized appreciation (depreciation) from investments... (132,802) 975,733 343,477
---------- ---------- -----------
Net increase (decrease) in net assets resulting from
operations.................................................. (51,871) 938,772 472,449
---------- ---------- -----------
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............................. 731,931 2,757,098 13,837,307
Reinvestment of distributions................................. -- 164,889 --
Cost of shares redeemed....................................... (585,323) (517,167) (253,035)
---------- ---------- -----------
Net increase in net assets resulting from capital share
transactions................................................ 146,608 2,404,820 13,584,272
---------- ---------- -----------
Net increase in net assets.................................... 94,737 3,178,703 14,056,721
NET ASSETS:
Beginning of period........................................... 5,172,158 1,993,455 0
---------- ---------- -----------
End of period (including undistributed net investment income
of $0, and $103,369, respectively).......................... $ 5,266,895 $5,172,158 $ 14,056,721
========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
RESERVE INTERNATIONAL
RESERVE EMERGING GROWTH FUND EQUITY FUND
--------------------------------- -------------------------------------
JULY 13, 1996
(COMMENCEMENT OF
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED OPERATIONS) TO
NOVEMBER 30, 1996 MAY 31, 1996 NOVEMBER 30, 1996 MAY 31, 1996
----------------- ------------ ----------------- ----------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS FROM INVESTMENT
OPERATIONS:
Net investment loss......................... $ (59,818) $ (57,980) $ (25,806) $ (17,145)
Net realized gain (loss) from investments
and foreign currency transactions......... (147,966) 80,546 (210,359) (71,968)
Net unrealized appreciation (depreciation)
from investments and foreign currency
transactions.............................. (619,077) 1,655,638 735,951 331,022
---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations................. (826,861) 1,678,204 499,786 241,909
---------- ---------- ---------- ----------
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........... 1,597,265 4,281,980 5,501,521 3,465,234
Reinvestment of distributions............... -- 93,770 -- --
Cost of shares redeemed..................... (637,816) (301,485) (217,763) (122,619)
---------- ---------- ---------- ----------
Net increase in net assets resulting from
capital share transactions................ 959,449 4,074,265 5,283,758 3,342,615
---------- ---------- ---------- ----------
Net increase in net assets.................. 132,588 5,658,570 5,783,544 3,584,524
NET ASSETS:
Beginning of period......................... 6,899,440 1,240,870 3,584,524 --
---------- ---------- ---------- ----------
End of period............................... $ 7,032,028 $6,899,440 $ 9,368,068 $3,584,524
========== ========== ========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE> 24
THE RESERVE PRIVATE EQUITY SERIES
STATEMENTS OF CHANGES IN NET ASSETS--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
RESERVE INFORMED RESERVE LARGE-CAP
INVESTORS GROWTH FUND VALUE FUND
--------------------------------- -------------------------------------
JANUARY 2, 1996
(COMMENCEMENT OF
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED OPERATIONS) TO
NOVEMBER 30, 1996 MAY 31, 1996 NOVEMBER 30, 1996 MAY 31, 1996
----------------- ------------ ----------------- ----------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
INVESTMENT OPERATIONS:
Net investment loss......................... $ (15,987) $ (147,983) $ (2,524) $ (1,091)
Net realized gain (loss) from investments... 801,213 850,186 (4,205) --
Net unrealized appreciation (depreciation)
from investments.......................... (1,826,980) 1,109,280 357,545 70,123
---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations................. (1,041,754) 1,811,483 350,816 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........... 974,290 6,254,939 934,215 1,165,180
Reinvestment of distributions............... -- 790,060 -- --
Cost of shares redeemed..................... (493,373) (8,490,282) (100,000) (3,152)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from capital share
transactions.............................. 480,917 (1,445,283) 834,215 1,162,028
---------- ---------- ---------- ----------
Net increase (decrease) in net assets....... (560,837) (429,137) 1,185,031 1,231,060
NET ASSETS:
Beginning of period......................... 6,408,063 6,837,200 1,231,060 --
---------- ---------- ---------- ----------
End of period............................... $ 5,847,226 $6,408,063 $ 2,416,091 $1,231,060
========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
RESERVE MID-CAP
GROWTH FUND
---------------------------------
SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, 1996 MAY 31, 1996
----------------- ------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM INVESTMENT OPERATIONS:
Net investment loss............................................................. $ (26,703) $ (32,656)
Net realized loss from investments.............................................. (36,401) (83,525)
Net unrealized appreciation from investments.................................... 201,110 453,671
---------- ----------
Net increase in net assets resulting from operations............................ 138,006 337,490
---------- ----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sales of shares............................................... 1,704,005 2,345,759
Cost of shares redeemed......................................................... (1,053,402) (143,694)
---------- ----------
Net increase in net assets resulting from capital share transactions............ 650,603 2,202,065
---------- ----------
Net increase in net assets...................................................... 788,609 2,539,555
NET ASSETS:
Beginning of period............................................................. 2,539,555 0
---------- ----------
End of period................................................................... $ 3,328,164 $2,539,555
========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE> 25
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS--NOVEMBER 30, 1996--(UNAUDITED)
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. 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 November 30, 1996 as follows:
<TABLE>
<CAPTION>
INCREASE (DECREASE)
----------------------------------------
UNDISTRIBUTED ACCUMULATED
NET INVESTMENT REALIZED
RESERVE FUND CAPITAL INCOME GAIN (LOSS)
---------------------------------------------------------------------- ------- -------------- -----------
<S> <C> <C> <C>
Blue Chip Growth Fund................................................. (29,141) 29,141 --
Emerging Growth Fund.................................................. (59,818) 59,818 --
Informed Investors Growth Fund........................................ (15,987) 15,987 --
International Equity Fund............................................. (25,806) 25,806 --
Large-Cap Value Fund.................................................. (2,524) 2,524 --
Mid-Cap Growth Fund................................................... (26,703) 26,703 --
</TABLE>
These reclassifications had no effect on net investment income, net realized
gain on investments, or net assets for the six months ended November 30,
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.
25
<PAGE> 26
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(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 November 30, 1996, which are available to
offset future realized capital gains, if any:
<TABLE>
<CAPTION>
CAPITAL LOSS EXPIRATION
CARRYFORWARD YEAR
------------ -----------
<S> <C> <C>
Reserve International Equity Fund.................................................. $ 71,968 2004
Reserve Mid-Cap 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 six months ended November 30,
1996, were as follows:
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE
RESERVE FUND PURCHASES SALES
-------------------------------------------------------------------------------- ----------- ----------
<S> <C> <C>
Blue Chip Growth Fund........................................................... $ 1,956,257 $1,588,010
Convertible Securities Fund..................................................... 17,085,719 3,809,480
Emerging Growth Fund............................................................ 1,537,043 376,363
Informed Investors Growth Fund.................................................. 4,197,643 4,494,889
International Equity Fund....................................................... 6,736,222 1,862,433
Large-Cap Value Fund............................................................ 942,628 176,712
Mid-Cap Growth Fund............................................................. 1,761,548 1,171,208
</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, 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 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%
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 29% of the outstanding shares of the
Reserve Blue Chip Growth Fund at November 30, 1996.
26
<PAGE> 27
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
As of November 30, 1996, RMCI and affiliated persons owned 3%, 13%, 13%, and
22% of the Reserve Emerging Growth Fund, Reserve International Equity Fund,
Reserve Large-Cap Value Fund, and Reserve Mid-Cap Growth Fund, respectively.
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. For the six months ended November 30, 1996, the
Funds paid distribution expenses to RPI as follows:
<TABLE>
<CAPTION>
RESERVE FUND CLASS A CLASS D
--------------------------------------------------------------------------------------- ------- -------
<S> <C> <C>
Blue Chip Growth Fund.................................................................. $6,685 $ 361
Convertible Securities Fund*........................................................... 283 14
Emerging Growth Fund................................................................... 8,235 1,596
Informed Investors Growth Fund......................................................... 7,173 98
International Equity Fund.............................................................. 7,561 97
Large-Cap Value Fund................................................................... 2,312 27
Mid-Cap Growth Fund.................................................................... 889 10,646
</TABLE>
------------------
* RMCI waived 12b-1 fees of $3,660 and $11, for Reserve Convertible
Securities Fund Class A and Class D, respectively, for the period September
3, 1996 (commencement of operations) to November 30, 1996.
5. CAPITAL SHARE TRANSACTIONS
---------------------------
Transactions in capital stock of each Fund for the period ended November 30,
1996, were as follows:
<TABLE>
<CAPTION>
CLASS A CLASS D
----------------------- -------------------
SIX MONTHS ENDED SIX MONTHS ENDED
NOVEMBER 30, 1996 NOVEMBER 30, 1996
----------------------- -------------------
RESERVE BLUE CHIP GROWTH FUND SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------- ------- --------- ------ -------
<S> <C> <C> <C> <C>
Sold......................................................... 46,958 $ 689,411 2,998 $42,520
Redeemed..................................................... (39,936) (585,323) 0 0
------- -------- ----- -------
Net increase................................................. 7,022 $ 104,088 2,998 $42,520
======= ======== ===== =======
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D
------------------------ -------------------
SEPTEMBER 3, 1996 SEPTEMBER 3, 1996
(COMMENCEMENT (COMMENCEMENT
OF OPERATIONS) TO OF OPERATIONS) TO
NOVEMBER 30, 1996 NOVEMBER 30, 1996
------------------------ -------------------
RESERVE CONVERTIBLE SECURITIES FUND SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------- --------- ----------- ------ -------
<S> <C> <C> <C> <C>
Sold......................................................... 1,382,406 $13,827,195 1,011 $10,112
Redeemed..................................................... (25,175) (253,035) 0 0
--------- ----------- ----- -------
Net increase................................................. 1,357,231 $13,574,160 1,011 $10,112
========= =========== ===== =======
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D
------------------------ ------------------
SIX MONTHS ENDED SIX MONTHS ENDED
NOVEMBER 30, 1996 NOVEMBER 30, 1996
------------------------ ------------------
RESERVE EMERGING GROWTH FUND SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------- ------- ---------- ------ --------
<S> <C> <C> <C> <C>
Sold......................................................... 80,626 $1,427,150 9,788 $170,115
Redeemed..................................................... (36,097) (609,432) (1,654) (28,384)
------- ---------- ----- --------
Net increase................................................. 44,529 $ 817,718 8,134 $141,731
======= ========== ===== ========
</TABLE>
27
<PAGE> 28
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
CLASS A CLASS D
--------------------- ---------------------
SIX MONTHS ENDED SIX MONTHS ENDED
NOVEMBER 30, 1996 NOVEMBER 30, 1996
--------------------- ---------------------
RESERVE INFORMED INVESTORS GROWTH FUND SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------- ------- --------- ------ -------
<S> <C> <C> <C> <C>
Sold......................................................... 78,018 $ 963,990 794 $10,300
Redeemed..................................................... (40,432) (484,219) (770) (9,154)
------- -------- ---- -------
Net increase................................................. 37,586 $ 479,771 24 $ 1,146
======= ======== ==== =======
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D
--------------------- ---------------------
SIX MONTHS ENDED SIX MONTHS ENDED
NOVEMBER 30, 1996 NOVEMBER 30, 1996
--------------------- ---------------------
RESERVE INTERNATIONAL EQUITY FUND SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------- ------- ---------- ------ -------
<S> <C> <C> <C> <C>
Sold......................................................... 483,364 $5,479,854 1,957 $21,667
Redeemed..................................................... 18,988 (217,763) 0 0
------- ---------- ----- -------
Net increase................................................. 464,376 $5,262,091 1,957 $21,667
======= ========== ===== =======
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D
--------------------- ---------------------
SIX MONTHS ENDED SIX MONTHS ENDED
NOVEMBER 30, 1996 NOVEMBER 30, 1996
--------------------- ---------------------
RESERVE LARGE-CAP VALUE FUND SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------- ------ --------- ------ ------
<S> <C> <C> <C> <C>
Sold......................................................... 83,223 $ 926,740 668 $7,475
Redeemed..................................................... (8,163) (100,000) 0 0
------ -------- --- ------
Net increase................................................. 75,060 $ 826,740 668 $7,475
====== ======== === ======
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D
--------------------- --------------------
SIX MONTHS ENDED SIX MONTHS ENDED
NOVEMBER 30, 1996 NOVEMBER 30, 1996
--------------------- --------------------
RESERVE MID-CAP GROWTH FUND SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------- ------- ---------- ------- ---------
<S> <C> <C> <C> <C>
Sold......................................................... 119,943 $1,404,405 24,645 $ 299,600
Redeemed..................................................... (33,598) (399,207) (55,140) (654,195)
------- ---------- ------- ---------
Net increase................................................. 86,345 $1,005,198 (30,495) $(354,595)
======= ========== ======= =========
</TABLE>
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>
28
<PAGE> 29
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
<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
----------------------- -------------------
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
----------------------- -------------------
JULY 13, 1995 MARCH 11, 1996
(COMMENCEMENT (COMMENCEMENT
OF OPERATIONS) TO OF OPERATIONS) 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>
29
<PAGE> 30
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
CLASS A CLASS D
------------------ ---------------------
MARCH 13, 1996
(COMMENCEMENT
OF OPERATIONS) TO YEAR ENDED
MAY 31, 1996 MAY 31, 1996
------------------ ---------------------
RESERVE MID-CAP 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>
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.
7. SUPPLEMENTARY INFORMATION (UNAUDITED) (FOR EACH SHARE OUTSTANDING THROUGHOUT
EACH PERIOD):
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A CLASS D
----------------------------------------------------- -------------------------------------
FEBRUARY 13,
OCTOBER 28, 1994 1996
SIX MONTHS (COMMENCEMENT OF SIX MONTHS (COMMENCEMENT OF
ENDED YEAR ENDED OPERATIONS) TO ENDED OPERATIONS) TO
RESERVE BLUE CHIP GROWTH FUND NOVEMBER 30, 1996 MAY 31, 1996 MAY 31, 1995 NOVEMBER 30, 1996 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......... (.08) (.10) (.03) (.11) (.04)
Net realized and unrealized
gain (loss)............... (.07) 3.62 2.06 .32 1.43
------ ------ ------ ------ ------
Total from investment
operations.................. (.15) 3.52 2.03 (.21) 1.39
Less distribution from net
realized gain............... -- (.64) -- -- --
------ ------ ------ ------ ------
NET ASSET VALUE, end of
period...................... $ 14.76 $14.91 $12.03 $ 14.67 $14.88
====== ====== ====== ====== ======
Total Return.................. (1.01)%(2) 30.10% 20.30%(2) (1.41)%(2) 10.30%(2)
RATIOS/SUPPLEMENTAL DATA
- ------------------------------
Net assets in thousands, end
of period................... $ 5,181 $5,130 $1,993 $ 86 $ 43
Ratio of expenses to average
net assets before waiver.... 1.75%(1) 1.75% 1.75%(1) 2.50%(1) 2.50%(1)
Ratio of expenses to average
net assets, net of waiver... 1.75%(1) 1.75% 1.73%(1) 2.50%(1) 2.50%(1)
Ratio of net investment loss
to average net assets,
before waivers.............. (1.07)%(1) (0.94)% (0.72)%(1) (1.81)%(1) (1.70)%(1)
Ratio of net investment loss
to average net assets, net
of waiver................... (1.07)%(1) (0.94)% (0.70)%(1) (1.81)%(1) (1.70)%(1)
Portfolio turnover rate....... 31% 72% 68% 31% 72%
Average commission per share
on portfolio transactions... $ 0.05 $ 0.06 N/A $ 0.05 $ 0.06
</TABLE>
- ---------------
(1) Annualized
(2) Total return is not annualized, and does not reflect impact of sales load.
30
<PAGE> 31
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
CLASS A CLASS D
---------------- ----------------
SEPTEMBER 3, SEPTEMBER 3,
1996 1996
(COMMENCEMENT OF (COMMENCEMENT OF
OPERATIONS) TO OPERATIONS) TO
NOVEMBER 30, NOVEMBER 30,
RESERVE CONVERTIBLE SECURITIES FUND 1996 1996
- ------------------------------------------------------------------------- ---------------- ----------------
<S> <C> <C>
NET ASSET VALUE, beginning of period..................................... $10.00 $10.00
------ ------
Income from investment operations
Net investment income.................................................. .02 .01
Net realized and unrealized gain (loss)................................ .33 .32
------ ------
Total from investment operations......................................... .35 .33
------ ------
NET ASSET VALUE, end of period........................................... $10.35 $10.33
====== ======
Total Return............................................................. 3.50%(2) 3.30%(2)
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------
Net assets in thousands, end of period................................... $6,468 $ 10
Ratio of expenses to average net assets before waiver.................... 1.75%(1) 2.50%(1)
Ratio of expenses to average net assets, net of waiver................... 0.59%(1) 1.74%(1)
Ratio of net investment gain to average net assets, before waiver........ 5.39%(1) 3.76%(1)
Ratio of net investment gain to average net assets, net of waiver........ 6.55%(1) 4.53%(1)
Portfolio turnover rate.................................................. 43% 43%
Average commission per share on portfolio transactions................... $ 0.01 $ 0.01
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D
----------------------------------------------------- -------------------------------------
FEBRUARY 13,
OCTOBER 28, 1994 1996
SIX MONTHS (COMMENCEMENT OF SIX MONTHS (COMMENCEMENT OF
ENDED YEAR ENDED OPERATIONS) TO ENDED OPERATIONS) TO
RESERVE EMERGING GROWTH FUND NOVEMBER 30, 1996 MAY 31, 1996 MAY 31, 1995 NOVEMBER 30, 1996 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........ (.15) (.17) (.09) (.19) (.04)
Net realized and unrealized
gain (loss).............. (2.06) 8.05 2.30 (2.08) 2.68
------ ------ ------ ------ ------
Total from investment
operations................. (2.21) 7.88 2.21 (2.27) 2.64
Less distribution from net
realized gain.............. -- (.53) -- -- --
------ ------ ------ ------ ------
NET ASSET VALUE, end of
period..................... $ 17.35 $19.56 $12.21 $ 17.25 $19.52
====== ====== ====== ====== ======
Total Return................. (11.30)%(2) 65.55% 22.10%(2) (11.63)%(2) 15.64%(2)
RATIOS/SUPPLEMENTAL DATA
- -----------------------------
Net assets in thousands, end
of period.................. $ 6,677 $6,657 $1,241 $ 355 $ 243
Ratio of expenses to average
net assets................. 1.75%(1) 1.75% 1.75%(1) 2.50%(1) 2.50%(1)
Ratio of net investment loss
to average net assets...... (1.70)%(1) (1.70)% (1.62)%(1) (2.45)%(1) (2.48)%(1)
Portfolio turnover rate...... 6% 38% 43% 6% 38%
Average commission per share
on portfolio
transactions............... $ 0.01 $ 0.01 N/A $ 0.01 $ 0.01
</TABLE>
- ---------------
(1) Annualized
(2) Total return is not annualized, and does not reflect impact of sales load.
31
<PAGE> 32
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
CLASS A CLASS D
------------------------------------- -------------------------------------
JULY 13, 1996 MARCH 11, 1996
SIX MONTHS (COMMENCEMENT OF SIX MONTHS (COMMENCEMENT OF
ENDED OPERATIONS) TO ENDED OPERATIONS) TO
RESERVE INTERNATIONAL EQUITY FUND NOVEMBER 30, 1996 MAY 31, 1996 NOVEMBER 30, 1996 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.................. (.03) (.05) (.07) (.01)
Net realized and unrealized gain..... .71 1.31 .70 .47
------ ------ ------ ------
Total from investment operations....... .68 1.26 .63 .46
------ ------ ------ ------
NET ASSET VALUE, end of period......... $ 11.94 $11.26 $ 11.88 $11.25
====== ====== ====== ======
Total Return........................... 6.04%(2) 12.60%(2) 5.60%(2) 4.26%(2)
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------
Net assets in thousands, end of
period............................... $ 9,338 $3,578 $ 30 $ 6
Ratio of expenses to average net assets
before waiver........................ 2.00%(1) 2.00%(1) 2.75%(1) 2.75%(1)
Ratio of expenses to average net
assets, net of waiver................ 2.00%(1) 1.99%(1) 2.75%(1) 2.75%(1)
Ratio of net investment loss to average
net assets, before waiver............ (0.84)%(1) (0.92)%(1) (1.67)%(1) (0.70)%(1)
Ratio of net investment loss to average
net assets, net of waiver............ (0.84)%(1) (0.91)%(1) (1.67)%(1) (0.70)%(1)
Portfolio turnover rate................ 35% 70% 35% 70%
Average commission per share on
portfolio transactions............... $ 0.03 $ 0.02 $ 0.03 $ 0.02
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D
--------------------------------------------------- ------------------------------------
FEBRUARY 13,
OCTOBER 28, 1994 1996
SIX MONTHS (COMMENCEMENT OF SIX MONTHS (COMMENCEMENT OF
RESERVE INFORMED INVESTORS GROWTH ENDED YEAR ENDED OPERATIONS) TO ENDED OPERATIONS) TO
FUND NOVEMBER 30, 1996 MAY 31, 1996 MAY 31, 1995 NOVEMBER 30, 1996 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.............. (.03) (0.33) (.07) (.11) (.06)
Net realized and unrealized
gain........................... (2.24) 3.87 2.06 (2.21) 2.10
------ ------ ------ ------
Total from investment operations... (2.27) 3.54 1.99 (2.32) 2.04
Less distribution from net realized
gain............................. -- (1.17) -- -- --
------ ------ ------ ------
NET ASSET VALUE, end of period..... $ 12.09 $14.36 $11.99 $ 12.01 $14.33
====== ====== ====== ======
Total Return....................... (15.81)%(2) 29.75% 19.90%(2) (16.19)%(2) 16.60%(2)
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------
Net assets in thousands, end of
period........................... $ 5,834 $6,393 $6,837 $ 13 $ 15
Ratio of expenses to average net
assets........................... 1.75%(1) 1.75% 1.75%(1) 2.50%(1) 2.50%(1)
Ratio of net investment loss to
average net assets............... (0.55)%(1) (1.57)% (1.62)%(1) (1.21)%(1) (2.32)%(1)
Portfolio turnover rate............ 98% 132% 59% 98% 132%
Average commission per share on
portfolio transactions........... $ 0.05 $ 0.05 N/A $ 0.05 $ 0.05
</TABLE>
- ---------------
(1) Annualized
(2) Total return is not annualized, and does not reflect impact of sales load.
32
<PAGE> 33
THE RESERVE PRIVATE EQUITY SERIES
NOTES TO FINANCIAL STATEMENTS--NOVEMBER 30, 1996--(UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
CLASS A CLASS D
------------------------------------- -----------------
JANUARY 2, 1996
SIX MONTHS (COMMENCEMENT OF SIX MONTHS
ENDED OPERATIONS) TO ENDED
RESERVE LARGE-CAP VALUE FUND NOVEMBER 30, 1996 MAY 31, 1996 NOVEMBER 30, 1996
- -------------------------------------------------------- ----------------- ---------------- -----------------
<S> <C> <C> <C>
NET ASSET VALUE, beginning of period.................... $ 10.95 $10.00 $ 10.95
------ ------ ------
Income from investment operations
Net investment loss................................... (.13) (0.01) (.04)
Net realized and unrealized gain...................... 2.02 0.96 1.89
------ ------ ------
Total from investment operations........................ 1.89 0.95 1.85
------ ------ ------
NET ASSET VALUE, end of period.......................... $ 12.84 $10.95 $ 12.80
====== ====== ======
Total Return............................................ 17.26%(2) 9.50%(2) 16.89%(2)
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------
Net assets in thousands, end of period.................. $ 2,406 $1,231 $ 10
Ratio of expenses to average net assets................. 1.75%(1) 1.75%(1) 2.50%(1)
Ratio of net investment loss to average net assets...... (.30)%(1) (0.32)%(1) (1.02)%(1)
Portfolio turnover rate................................. 10% 0% 10%
Average commission per share on portfolio
transactions.......................................... $ 0.07 $ 0.08 $ 0.07
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS D
------------------------------------- ---------------------------------
JULY 13, 1996
SIX MONTHS (COMMENCEMENT OF SIX MONTHS
ENDED OPERATIONS) TO ENDED YEAR ENDED
RESERVE MID-CAP GROWTH FUND NOVEMBER 30, 1996 MAY 31, 1996 NOVEMBER 30, 1996 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...................... (.05) (.01) (.13) (.17)
Net realized and unrealized gain......... .47 1.36 .50 2.44
------ ------ ------ ------
Total from investment operations........... .42 1.35 .37 2.27
------ ------ ------ ------
NET ASSET VALUE, end of period............. $ 12.71 $12.29 $ 12.64 $12.27
====== ====== ====== ======
Total Return............................... 3.42%(2) 12.34%(2) 3.02%(2) 22.70%
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------
Net assets in thousands, end of period..... $ 714 $ 131 $ 2,112 $2,408
Ratio of expenses to average net assets.... 1.74%(1) 1.74%(1) 2.50%(1) 2.49%
Ratio of net investment loss to average net
assets................................... (1.27)%(1) (0.97)%(1) (2.08)%(1) (2.00)%
Portfolio turnover rate.................... 44% 85% 44% 85%
Average commission per share on portfolio
transactions............................. $ 0.05 $ 0.04 $ 0.05 $ 0.04
</TABLE>
- ---------------
(1) Annualized
(2) Total return is not annualized, and does not reflect impact of sales load.
33
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