<PAGE>
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This literature is not authorized for distribution to prospective investors
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RPES/SEMI-ANNUAL 01/00
[THE RESERVE FUNDS LOGO]
SEMI-ANNUAL REPORT
RESERVE PRIVATE EQUITY SERIES
BLUE CHIP GROWTH FUND
INFORMED INVESTORS GROWTH FUND
INTERNATIONAL EQUITY FUND
LARGE-CAP GROWTH FUND
SMALL-CAP GROWTH FUND
STRATEGIC GROWTH FUND
NOVEMBER 30, 1999
<PAGE>
RESERVE PRIVATE EQUITY SERIES--BLUE CHIP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1999--(UNAUDITED)
VALUE
SHARES COMMON STOCKS -- 99.1% (NOTE 1)
- ------- ----------------------------------- -----------
BANKS -- 3.6%
8,300 Bank of America Corp............... $ 485,550
-----------
BIO-TECHNOLOGY -- 3.6%
10,700 Amgen Inc.*........................ 487,519
-----------
CABLE-TV -- 3.6%
6,175 MediaOne Group, Inc.*.............. 489,369
-----------
COMMUNICATION RADIO -- 3.0%
11,225 Infinity Broadcasting Company*..... 409,011
-----------
COMPUTER MEMORY DEVICES -- 4.2%
6,900 EMC Corp.*......................... 576,581
-----------
COMPUTER MICROSYSTEMS -- 9.7%
8,425 Dell Computer Corp.*............... 362,275
3,375 DoubleClick Inc.*.................. 540,211
4,075 International Business Machines
Corp............................... 419,980
-----------
1,322,466
-----------
COMPUTER NETWORKING -- 4.4%
6,824 Cisco Systems, Inc. *.............. 608,615
-----------
COMPUTER SOFTWARE -- 8.9%
9,100 America Online, Inc.*.............. 661,456
6,075 Microsoft Corp.*................... 553,110
-----------
1,214,566
-----------
DIVERSIFIED MEDIA -- 2.3%
3,825 Clear Channel Communications*...... 307,434
-----------
ELECTRONIC COMPONENTS -- 4.6%
3,500 Broadcom Corp.*.................... 626,719
-----------
ELECTRONICS -- 3.8%
4,000 General Electric Company........... 520,000
-----------
VALUE
SHARES COMMON STOCKS (CONTINUED) (NOTE 1)
- ------- ----------------------------------- -----------
FINANCIAL SERVICES -- 7.7%
9,810 Citigroup, Inc..................... $ 528,514
4,300 Morgan Stanley Dean Witter &
Company............................ 518,688
-----------
1,047,202
-----------
INSURANCE -- 3.2%
4,281 American International Group,
Inc................................ 442,013
-----------
INTERNET MANAGEMENT -- 4.6%
4,300 CMGI Inc.*......................... 632,638
-----------
MANUFACTURING DIVERSIFIED -- 4.1%
6,800 Solectron Corp.*................... 560,150
-----------
PHARMACEUTICALS -- 9.3%
5,625 Merck & Company, Inc............... 441,562
10,525 Pfizer, Inc.*...................... 380,873
5,025 Warner Lambert Company............. 450,680
-----------
1,273,115
-----------
SEMICONDUCTORS -- 3.2%
5,750 Intel Corp......................... 440,953
-----------
TELECOMMUNICATION -- 11.5%
10,875 AT&T Liberty Media*................ 454,711
5,600 MCI WorldCom, Inc.*................ 463,050
10,650 Qwest Communications Int'l.*....... 364,097
4,700 Time Warner........................ 289,931
-----------
1,571,789
-----------
TELECOMMUNICATIONS
EQUIPMENT -- 3.8%
7,175 Lucent Technologies, Inc........... 524,223
-----------
TOTAL COMMON STOCKS
(Cost $8,968,193)............ 99.1% 13,539,913
OTHER ASSETS, LESS
LIABILITIES.................. 0.9 128,826
----- -----------
NET ASSETS................... 100.0% $13,668,739
----- -----------
----- -----------
- ------------
Value of investments are shown as a percentage of Net Assets.
* Non-income producing.
For Federal income tax purposes the tax basis for investments owned at
November 30, 1999, was $8,968,193 the aggregate gross unrealized appreciation
was $4,677,019 and the aggregate gross unrealized depreciation was $105,299.
SEE NOTES TO FINANCIAL STATEMENTS.
2
<PAGE>
RESERVE PRIVATE EQUITY SERIES--BLUE CHIP GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999 (UNAUDITED)
ASSETS:
Investments in securities, at value
(cost $8,968,193)....................... $13,539,913
Cash...................................... 46,146
Receivable for securities sold............ 265,487
Receivable for Fund shares sold........... 7,500
Dividend and interest receivable.......... 3,046
-----------
Total Assets............................ 13,862,093
-----------
LIABILITIES:
Payable for securities purchased.......... 192,025
Payable for Fund shares repurchased....... 226
Other payables and accrued expenses....... 1,103
-----------
Total Liabilities....................... 193,254
-----------
NET ASSETS (NOTES 1 & 5):
Net assets consisting of 472,330 of
Class R shares and 99,610 of Class I
shares outstanding ($.001 par value).... $13,668,739
-----------
-----------
NET ASSET VALUE PER SHARE (offering and
redemption price per share):
Class R ($12,042,992/472,330)............. $ 25.50
-----------
-----------
Class I ($1,625,747/99,610)............... $ 16.32
-----------
-----------
COMPOSITION OF NET ASSETS:
Capital Stock............................. $ 1,210
Paid in surplus........................... 6,544,891
Accumulated net realized gain on
investments............................. 2,614,216
Accumulated net investment loss........... (63,298)
Net unrealized appreciation on
investments............................. 4,571,720
-----------
NET ASSETS.................................. $13,668,739
-----------
-----------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999 (UNAUDITED)
INVESTMENT INCOME:
Dividends................................. $ 20,534
Interest.................................. 412
-----------
Total Investment Income................. 20,946
-----------
EXPENSES:
Comprehensive fee (Note 3)................ 69,923
Distribution fee (Note 3)................. 14,321
-----------
Total Expenses.......................... 84,244
-----------
Net Investment Loss..................... (63,298)
-----------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS (NOTE 2):
Net realized gain on investments.......... 263,254
Net change in unrealized appreciation on
investments............................. 2,248,168
-----------
Net realized and unrealized gain on
investments............................. 2,511,422
-----------
Net Increase in Net Assets Resulting from
Operations.............................. $ 2,448,124
-----------
-----------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999 (UNAUDITED)
AND THE YEAR ENDED MAY 31, 1999
<TABLE>
<CAPTION>
1999 1999
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
INVESTMENT OPERATIONS:
Net investment loss...................................................................... $ (63,298) $ (95,948)
Net realized gain from investment transactions........................................... 263,254 2,917,573
Net change in unrealized appreciation on investments..................................... 2,248,168 1,150,092
----------- -----------
Net increase in net assets resulting from operations..................................... 2,448,124 3,971,717
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments......................................................... -- (631,531)
----------- -----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 4):
Net proceeds from sale of shares......................................................... 3,037,483 2,209,195
Reinvestment of distributions............................................................ -- 608,358
Cost of shares redeemed.................................................................. (2,388,534) (4,118,126)
----------- -----------
Net increase (decrease) in net assets resulting from capital share transactions.......... 648,949 (1,300,573)
----------- -----------
Net increase in net assets............................................................... 3,097,073 2,039,613
NET ASSETS:
Beginning of period...................................................................... 10,571,666 8,532,053
----------- -----------
End of period............................................................................ $13,668,739 $10,571,666
----------- -----------
----------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE>
RESERVE PRIVATE EQUITY SERIES--INFORMED INVESTORS GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1999--(UNAUDITED)
VALUE
SHARES (NOTE 1)
- ------- ----------
COMMON STOCKS -- 95.9%
COMMUNICATIONS EQUIPMENT -- 5.9%
1,000 Level 3 Communications, Inc.*...... $ 101,719
800 QUALCOMM, Inc.*.................... 289,850
----------
391,569
----------
COMPUTERS -- 1.7%
700 Emulex Corp.*...................... 113,750
----------
COMPUTER DATA SERVICES -- 2.3%
800 VeriSign, Inc.*.................... 148,650
----------
COMPUTER MEMORY DEVICES -- 2.1%
1,500 Veritas Software Corp.*............ 137,344
----------
COMPUTER MICROSYSTEMS -- 1.7%
700 DoubleClick Inc.*.................. 112,044
----------
COMPUTER NETWORKING -- 10.3%
2,400 Cisco Systems, Inc.*............... 214,050
700 Foundry Networks, Inc*............. 164,588
1,500 Network Appliance, Inc.*........... 176,531
900 Redback Networks, Inc.*............ 125,944
----------
681,113
----------
COMPUTER SERVICES -- 1.6%
1,400 Ariba, Inc.*....................... 108,338
----------
COMPUTER SOFTWARE -- 13.3%
1,600 America Online, Inc.*.............. 116,300
2,400 Broadvision, Inc.*................. 223,350
1,100 Exodus Communications, Inc.*....... 118,594
1,100 Network Solutions, Inc.*........... 164,931
3,300 OpenTV Corp.*...................... 254,925
----------
878,100
----------
ELECTRONIC COMPONENTS -- 10.2%
1,600 Broadcom Corp.-CL A*............... 286,500
1,100 PMC--Sierra, Inc.*................. 113,369
1,000 SDL, Inc.*......................... 162,750
1,300 Triquint Semiconductor, Inc.*...... 110,662
----------
673,281
----------
VALUE
SHARES (NOTE 1)
- ------- ----------
COMMON STOCKS (CONTINUED)
INTERNET CONTENT -- 15.6%
700 Akami Technologies, Inc.*.......... $ 165,900
1,100 Cobalt Networks, Inc.*............. 185,694
1,600 InfoSpace.com, Inc.*............... 162,700
1,000 Internet Capital Group, Inc.*...... 168,000
2,000 Internet Initiative Japan, Inc.
ADR*............................... 191,031
1,700 VerticalNet, Inc.*................. 148,962
----------
1,022,287
----------
INTERNET SOFTWARE -- 10.5%
1,500 Alteon Websystems, Inc.*........... 144,750
800 F5 Networks, Inc. *................ 90,500
800 Phone.Com, Inc.*................... 116,000
800 RealNetworks, Inc.*................ 111,600
1,100 Red Hat, Inc.*..................... 231,000
----------
693,850
----------
PACKAGE SOFTWARE -- 2.1%
2,000 Siebel Systems, Inc.*.............. 140,250
----------
SEMICONDUCTOR -- 10.6%
1,400 Applied Micro Circuits Corp.*...... 116,375
2,000 Conexant Systems, Inc.*............ 118,500
1,000 JDS Uniphase Corp.*................ 228,750
1,000 QLogic Corp.*...................... 113,125
1,300 Texas Instruments, Inc............. 124,881
----------
701,631
----------
TELECOMMUNICATIONS -- 6.2%
1,300 Copper Mountain Networks, Inc.*.... 108,469
3,700 Global Crossing Ltd.*.............. 161,412
1,000 Nokia Corp. Class A................ 138,187
----------
408,068
----------
TELECOMMUNICATIONS
EQUIPMENT -- 1.8%
2,000 Net2Phone, Inc.*................... 116,250
----------
TOTAL COMMON STOCKS (cost
$4,702,416)........................ 6,326,525
----------
SHORT-TERM INVESTMENTS -- 2.8%
185,000 Reserve Institutional Trust:
U.S. Government Institutional Fund
Class A (Cost $185,000)............ 185,000
----------
TOTAL INVESTMENTS (Cost
$4,887,416)................... 98.7% 6,511,525
OTHER ASSETS, LESS
LIABILITIES................... 1.3 87,557
------ ----------
NET ASSETS.................... 100.0% $6,599,082
------ ----------
------ ----------
- ------------
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, 1999, was $4,887,416; the aggregate gross unrealized appreciation
was $1,699,484 and the aggregate gross unrealized depreciation was $75,375.
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
RESERVE PRIVATE EQUITY SERIES--INFORMED INVESTORS GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999 (UNAUDITED)
ASSETS:
Investments in securities, at value
(cost $4,887,416)....................... $6,511,525
Cash...................................... 107,391
Receivable for securities sold............ 373,328
Receivable for Fund shares sold........... 141,594
Dividend and interest receivable.......... 474
----------
Total Assets............................ 7,134,312
----------
LIABILITIES:
Payable for securities purchased.......... 505,036
Payable for Fund shares repurchased....... 28,977
Other payables and accrued expenses....... 1,217
----------
Total Liabilities....................... 535,230
----------
NET ASSETS (NOTES 1 & 5):
Net assets consisting of 308,376 Class R
shares and 54,890 Class I shares
outstanding ($.001 par value)........... $6,599,082
----------
----------
NET ASSET VALUE PER SHARE (offering and
redemption price per share):
Class R ($5,706,165/308,376).............. $ 18.50
----------
----------
Class I ($892,917/54,890)................. $ 16.27
----------
----------
COMPOSITION OF NET ASSETS:
Capital Stock............................. $ 364
Paid in surplus........................... 3,062,551
Accumulated net investment loss........... (33,944)
Accumulated net realized gain on
investments............................. 1,946,002
Net unrealized appreciation on
investments............................. 1,624,109
----------
NET ASSETS.................................. $6,599,082
----------
----------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999 (UNAUDITED)
INVESTMENT INCOME:
Dividends................................. $ 391
Interest.................................. 3,551
----------
Total Investment Income................. 3,942
----------
EXPENSES:
Comprehensive fee (Note 3)................ 32,008
Distribution fee (Note 3)................. 5,878
----------
Total Expenses.......................... 37,886
----------
Net Investment Loss....................... (33,944)
----------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS (NOTE 2):
Net realized gain on investments.......... 596,283
Net change in unrealized appreciation on
investments............................. 1,521,893
----------
Net realized and unrealized gain on
investments............................. 2,118,176
----------
Net Increase in Net Assets Resulting from
Operations.............................. $2,084,232
----------
----------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999 (UNAUDITED) AND THE YEAR ENDED
MAY 31, 1999
<TABLE>
<CAPTION>
1999 1999
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
INVESTMENT OPERATIONS:
Net investment loss....................................................................... $ (33,944) $ (37,083)
Net realized gain on investment transactions.............................................. 596,283 1,068,145
Net change in unrealized appreciation on investments...................................... 1,521,893 97,395
----------- -----------
Net increase in net assets resulting from operations...................................... 2,084,232 1,128,457
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments.......................................................... -- (510,792)
----------- -----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 4):
Net proceeds from sale of shares.......................................................... 1,776,205 2,948,622
Reinvestment of distributions............................................................. -- 508,666
Cost of shares redeemed................................................................... (1,385,473) (4,285,126)
----------- -----------
Net increase (decrease) in net assets resulting from capital share transactions........... 390,732 (827,838)
----------- -----------
Net increase (decrease) in net assets..................................................... 2,474,964 (210,173)
NET ASSETS:
Beginning of period....................................................................... 4,124,118 4,334,291
----------- -----------
End of period............................................................................. $ 6,599,082 $ 4,124,118
----------- -----------
----------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
RESERVE PRIVATE EQUITY SERIES--INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1999--(UNAUDITED)
VALUE
SHARES COMMON STOCKS -- 90.8% (NOTE 1)
- ------- ----------------------------------- -----------
DENMARK -- 2.7%
2,600 Vesta Wind Systems................. $ 412,446
-----------
FINLAND -- 8.3%
38,000 Jot Automation Group Oyj........... 258,783
7,100 Nokia Oyj Series A................. 1,007,144
-----------
1,265,927
-----------
FRANCE -- 9.0%
675 Alcatel............................ 131,093
380 Altran Technologies SA............. 181,148
1,100 AXA-UAP............................ 148,600
1,420 Carrefour Supermarche.............. 247,846
1,800 Infogrames Entertainment SA........ 228,819
910 Societe Generale-A................. 196,473
675 Television Francaise............... 245,163
-----------
1,379,142
-----------
GERMANY -- 2.6%
1,900 Mannesmann AG...................... 396,800
-----------
HONG KONG -- 7.0%
22,000 China Telecom Ltd.................. 118,108
84,000 Giordano International Ltd......... 83,811
16,400 Hang Seng Bank Ltd................. 182,105
16,800 HSBC Holdings plc.................. 222,774
82,000 Legend Holdings Ltd................ 191,078
44,000 Li & Fung Ltd...................... 101,114
18,891 Sun Hung Kai Properties Ltd........ 172,676
-----------
1,071,666
-----------
ITALY -- 2.5%
5,500 Bipop Carie SpA.................... 276,671
55,000 Seat-Pagine Gialle SpA............. 111,589
-----------
388,260
-----------
JAPAN -- 33.8%
250 Bellsystem 24, Inc................. 286,400
600 Benesse Corp....................... 143,816
1,800 Enix Corp.......................... 167,610
500 Fancl Corp......................... 177,225
2,000 Fujitsu Support & Service.......... 842,064
900 Hikari Tsuhin, Inc................. 1,409,968
3,500 Ito En, Ltd........................ 425,291
1,400 Ryohin Keikaku..................... 329,678
4,000 Sumisho Computer Systems........... 297,660
3,000 Takeda Chemical Industries......... 176,833
3,000 Trend Micro, Inc................... 637,423
2,500 Union Tool Company................. 288,848
-----------
5,182,816
-----------
NETHERLANDS -- 1.4%
2,466 Aegon NV........................... 223,915
-----------
NORWAY -- 2.7%
12,300 Tandberg-ASA....................... 274,605
3,900 Tomra Systems ASA.................. 136,893
-----------
411,498
-----------
VALUE
SHARES COMMON STOCKS (CONTINUED) (NOTE 1)
- ------- ----------------------------------- -----------
SINGAPORE -- 3.4%
28,800 City Developments Ltd.............. $ 163,520
15,000 Datacraft Asia Ltd................. 72,600
21,748 DBS Group Holdings Ltd............. 281,871
-----------
517,991
-----------
SPAIN -- 1.4%
5,100 Banco Bilbao Vizcaya, SA........... 71,264
12,392 Banco Santander, SA................ 136,400
-----------
207,664
-----------
SWEDEN -- 4.6%
5,000 Ericsson Lm Te..................... 242,647
16,850 Europolitan Housing Holding AB..... 212,112
7,700 Modern Times Group................. 256,365
-----------
711,124
-----------
SWITZERLAND -- 1.6%
10 Kudelski SA PA..................... 46,256
450 Selecta Group--Reg................. 153,138
92 Zurich Versicherungs-GeSells....... 52,818
-----------
252,212
-----------
UNITED KINGDOM -- 8.1%
4,890 CMG plc............................ 255,860
246 HSBC Holdings Ord.................. 3,193
14,600 Logica plc......................... 311,369
18,065 Misys plc.......................... 196,795
11,332 Smithkline Beecham plc............. 150,888
11,081 Standard Chartered plc............. 149,937
37,750 Vodafone Group..................... 168,704
-----------
1,236,746
-----------
UNITED STATES -- 1.7%
3,000 Eidos PLC ADR...................... 255,000
-----------
TOTAL COMMON STOCKS--90.8% (Cost
$6,706,557)........................ 13,913,207
-----------
PREFERRED STOCKS -- 1.1%
-----------------------------------
GERMANY
60 Porsche AG Pfd. (Cost $114,037).... 163,442
-----------
WARRANTS -- 0.0%
-----------------------------------
FRANCE
500 Havas Advertising* expires
5/14/2001 (Cost $0)................ 4,893
-----------
SHORT-TERM INVESTMENTS -- 3.3%
-----------------------------------
500,000 Reserve Institutional Trust:
Primary Institutional Fund Class A
(Cost $500,000).................... 500,000
-----------
TOTAL INVESTMENTS (Cost
$7,320,594)................... 95.2% 14,581,542
OTHER ASSETS, LESS
LIABILITIES................... 4.8 738,322
------ -----------
NET ASSETS.................... 100.0% $15,319,864
------ -----------
------ -----------
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
RESERVE PRIVATE EQUITY SERIES--INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1999--(UNAUDITED) (CONTINUED)
INDUSTRY COMPOSITION
INDUSTRY PERCENT
- ---------------------------------------------- ---------
Auto/Truck Manufacturers...................... 1.1%
Bio-Tech & Medical Devices.................... 1.2
Commercial Banks.............................. 2.5
Computer Equipment............................ 5.4
Computer Software............................. 5.0
Consumer Products............................. 5.0
Diversified Operations........................ 5.1
Drugs & Health Care........................... 1.0
Financial Services............................ 6.0
Food & Beverage............................... 3.8
IT Service.................................... 18.3
INDUSTRY PERCENT
- ---------------------------------------------- -----
Insurance..................................... 2.4%
Machinery..................................... 9.8
Photo Equipment & Film........................ .3
Media Equipment............................... 1.6
Real Estate Development....................... 2.2
Retail........................................ 2.2
Service Companies............................. 4.7
Telecommunications............................ 14.3
Short-term Investments........................ 3.3
Other Assets, Less Liabilities................ 4.8
-----
PERCENT OF NET ASSETS......................... 100.0%
-----
-----
- ------------
Value of investments are shown as a percentage of net assets.
* Non-income producing.
For Federal income tax purposes the tax basis for investments owned at
November 30, 1999 was $7,320,594; aggregate gross unrealized appreciation was
$7,260,948 and the aggregate unrealized gross depreciation was zero.
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
RESERVE PRIVATE EQUITY SERIES--INTERNATIONAL EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999--(UNAUDITED)
ASSETS:
Investments in securities, at value
(cost $7,320,594).................... $14,581,542
Cash................................... 299,252
Receivable for securities sold......... 1,311,625
Receivable for Fund shares sold........ 100,000
Dividend and interest receivable....... 936
-----------
Total Assets......................... 16,293,355
-----------
LIABILITIES:
Payable for Fund shares repurchased.... 971,665
Other payables and accrued expenses.... 1,826
-----------
Total Liabilities.................... 973,491
-----------
NET ASSETS (NOTES 1 & 5):
Net assets consisting of 781,661 of
Class R shares and 8,182 of Class I
shares outstanding ($.001 par
value)............................... $15,319,864
-----------
-----------
NET ASSET VALUE PER SHARE (offering and
redemption price per share):
Class R ($15,179,573/781,661).......... $ 19.42
-----------
-----------
Class I ($140,290/8,182)............... $ 17.15
-----------
-----------
COMPOSITION OF NET ASSETS:
Capital Stock.......................... $ 790
Paid in surplus........................ 8,260,564
Accumulated net investment loss........ (149,542)
Accumulated net realized loss on
investments and foreign currency
transactions......................... (52,415)
Net unrealized gain on investments and
foreign currency transactions........ 7,260,467
-----------
NET ASSETS............................... $15,319,864
-----------
-----------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999 (UNAUDITED)
INVESTMENT INCOME:
Dividends *............................ $ 42,075
Interest............................... 4,857
-----------
Total Investment Income.............. 46,932
-----------
EXPENSES:
Comprehensive fee (Note 3)............. 104,242
Distribution fee (Note 3).............. 16,788
-----------
Total Expenses....................... 121,030
-----------
Net Investment Loss.................... (74,098)
-----------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS (NOTE 2):
Net realized gain on investment
transactions......................... 589,583
Net realized gain on foreign currency
transactions......................... 4,807
Net change in unrealized appreciation
on investments....................... 5,324,045
Net unrealized gain on foreign currency
transactions......................... 596
-----------
Net realized and unrealized gain
investments.......................... 5,919,031
-----------
Net Increase in Net Assets Resulting
from Operations...................... $ 5,844,933
-----------
-----------
*Dividends are net of foreign tax withholdings of $6,775
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999 (UNAUDITED) AND THE YEAR ENDED
MAY 31, 1999
<TABLE>
<CAPTION>
1999 1999
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
INVESTMENT OPERATIONS:
Net investment loss....................................................................... $ (74,098) $ (60,616)
Net realized gain on investment transactions.............................................. 589,583 674,062
Net realized gain/(loss) on foreign currency transactions................................. 4,807 (2,623)
Net change in unrealized appreciation (depreciation) on investments....................... 5,324,045 (1,053,819)
Net change in unrealized appreciation (depreciation) on foreign currency transactions..... 596 (813)
----------- -----------
Net increase (decrease) in net assets resulting from operations........................... 5,844,933 (443,809)
----------- -----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 4):
Net proceeds from sale of shares.......................................................... 18,244,898 9,092,144
Cost of shares redeemed................................................................... (21,085,985) (9,189,122)
----------- -----------
Net increase (decrease) in net assets resulting from capital share transactions........... (2,841,087) (96,978)
----------- -----------
Net increase (decrease) in net assets..................................................... 3,003,846 (535,206)
NET ASSETS:
Beginning of period....................................................................... 12,316,018 12,851,224
----------- -----------
End of period............................................................................. $15,319,864 $12,316,018
----------- -----------
----------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
RESERVE PRIVATE EQUITY SERIES--LARGE-CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1999--(UNAUDITED)
Value
SHARES COMMON STOCKS -- 97.1% (Note 1)
- ------- ----------------------------------- -----------
BANKS -- 3.3%
8,500 Chase Manhattan Bank............... $ 656,625
-----------
BEVERAGES -- 8.7%
15,100 Coca-Cola Company.................. 1,016,419
21,000 Pepsico Inc........................ 725,812
-----------
1,742,231
-----------
COMPUTER--SOFTWARE -- 5.1%
11,200 Microsoft Corp.*................... 1,019,725
-----------
COMPUTERS -- 3.4%
7,100 Hewlett-Packard Company............ 673,612
-----------
CONSUMER PRODUCTS -- 8.7%
19,200 Clorox Company..................... 855,600
22,100 Gillette Company................... 888,144
-----------
1,743,744
-----------
FINANCIAL SERVICES -- 13.2%
8,400 American Express Company........... 1,271,025
17,400 Charles Schwab Corp................ 660,113
9,000 Merrill Lynch & Company............ 725,625
-----------
2,656,763
-----------
FOOD -- 10.1%
12,600 Campbell Soup Company.............. 562,275
12,600 Hershey Foods Corp................. 618,975
10,100 Wrigley (Wm.) Jr. Company.......... 840,194
-----------
2,021,444
-----------
INSURANCE -- 3.6%
7,000 American International Group,
Inc................................ 722,750
-----------
MISCELLANEOUS MANUFACTURING -- 4.1%
8,600 Minnesota Mining & Manufacturing... 821,837
-----------
VALUE
SHARES COMMON STOCKS (CONTINUED) (NOTE 1)
- ------- ----------------------------------- -----------
PHARMACEUTICALS -- 18.3%
15,500 Abbott Laboratories................ $ 589,000
7,700 Bristol-Myers Squibb Company....... 562,581
7,100 Eli Lilly & Company................ 509,425
10,900 Johnson & Johnson.................. 1,130,875
11,300 Merck & Company.................... 887,050
-----------
3,678,931
PHOTOGRAPHY -- 1.4%
4,600 Eastman Kodak Company.............. 284,625
-----------
RESTAURANTS -- 5.5%
24,600 McDonald's Corp.................... 1,107,000
-----------
RETAIL -- 2.6%
11,400 Nike, Inc.......................... 524,400
-----------
SEMICONDUCTOR -- 9.1%
13,500 Electronic Data Systems............ 868,219
12,.600 Intel Corp......................... 966,263
-----------
1,834,482
-----------
Total Common Stocks (Cost
$17,503,004)....................... 19,488,169
-----------
SHORT-TERM INVESTMENTS--2.6%
525,000 Reserve Institutional Trust:
U.S. Government Institutional Fund
Class A
(Cost $525,000).................... 525,000
-----------
TOTAL INVESTMENTS (Cost
$18,028,004)................. 99.7% 20,013,169
OTHER ASSETS, LESS
LIABILITIES.................. .3 62,287
------ -----------
NET ASSETS................... 100.0% $20,075,456
------ -----------
------ -----------
- ------------
Value of investments are shown as a percentage of net assets.
* Non-income producing.
For Federal income tax purposes the tax basis for investments owned
November 30, 1999, was $18,028,004; the aggregate gross unrealized appreciation
was $2,856,529 and the aggregate unrealized gross unrealized depreciation was
$871,364.
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
RESERVE PRIVATE EQUITY SERIES--LARGE-CAP GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999 (UNAUDITED)
ASSETS:
Investments in securities, at value (cost
$18,028,004)............................ $20,013,169
Cash...................................... 66,876
Dividends and interest receivable......... 30,293
-----------
Total Assets............................ 20,110,338
-----------
LIABILITIES:
Payable for Fund shares redeemed.......... 33,672
Other payables and accrued expenses....... 1,210
-----------
Total Liabilities....................... 34,882
-----------
NET ASSETS (NOTES 1 & 5):
Net assets consisting of 313,194 of Class
R shares and 1,053,900 of Class I shares
outstanding ($.001 par value)).......... $20,075,456
-----------
-----------
NET ASSET VALUE PER SHARE (offering and
redemption price per share):
Class R ($6,914,598/313,194).............. $ 22.08
-----------
-----------
Class I ($13,160,858/1,053,900)........... $ 12.49
-----------
-----------
COMPOSITION OF NET ASSETS:
Capital Stock............................. $ 1,368
Paid in surplus........................... 15,046,108
Accumulated net investment income......... 13,910
Accumulated net realized gain on
investments............................. 3,028,905
Net unrealized appreciation on
investments............................. 1,985,165
-----------
-----------
NET ASSETS.................................. $20,075,456
-----------
-----------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999 (UNAUDITED)
INVESTMENT INCOME:
Dividends................................. $ 113,940
Interest.................................. 12,051
-----------
Total Investment Income................. 125,991
-----------
EXPENSES:
Comprehensive fee (Note 3)................ 102,196
Distribution fee (Note 3)................. 9,885
-----------
Total Expenses.......................... 112,081
-----------
Net Investment Income..................... 13,910
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
(NOTE 2):
Net realized gain on investments.......... 347,401
Net change in unrealized appreciation on
investments............................. 316,106
-----------
Net realized and unrealized gain on
investments............................. 663,507
-----------
Net Increase in Net Assets Resulting from
Operations.............................. $ 677,417
-----------
-----------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999 (UNAUDITED)
AND THE YEAR ENDED MAY 31, 1999
<TABLE>
<CAPTION>
1999 1999
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
INVESTMENT OPERATIONS:
Net investment income (loss)............................................................... $ 13,910 $ (14,249)
Net realized gain on investment transactions............................................... 347,401 3,008,607
Net change in unrealized appreciation on investments....................................... 316,106 106,911
----------- -----------
Net increase in net assets resulting from operations....................................... 677,417 3,101,269
----------- -----------
DISTRIBUTION TO SHAREHOLDERS FROM:
Net realized gain on investments........................................................... -- (541,732)
----------- -----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 4):
Net proceeds from sale of shares........................................................... 1,697,532 29,243,558
Reinvestment of distributions.............................................................. -- 522,649
Cost of shares redeemed.................................................................... (2,459,125) (18,952,127)
----------- -----------
Net increase (decrease) in net assets resulting from capital share transactions............ (761,593) 10,814,080
----------- -----------
Net increase (decrease) in net assets...................................................... (84,176) 13,373,617
NET ASSETS:
Beginning of period........................................................................ 20,159,632 6,786,015
----------- -----------
End of period.............................................................................. $20,075,456 $20,159,632
----------- -----------
----------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
RESERVE PRIVATE EQUITY SERIES--SMALL-CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1999--(UNAUDITED)
Value
SHARES COMMON STOCKS -- 89.9% (Note 1)
- --------- ---------------------------------- -----------
APPLICATIONS SOFTWARE -- 12.1%
3,500 Citrix Systems, Inc.*............. $ 332,063
6,300 HNC Software, Inc.*............... 447,300
2,870 Hyperion Solutions Corp.*......... 78,566
5,000 Peregrine Systems, Inc.*.......... 350,000
4,900 Project Software Development,
Inc.*............................. 437,325
-----------
1,645,254
-----------
COMPUTER NETWORKING -- 3.1%
6,300 Legato Systems, Inc.*............. 425,447
-----------
COMPUTER SERVICES -- 3.9%
6,500 Rational Sofware Corp.*........... 332,312
2,600 Sapient Corp.*.................... 201,500
-----------
533,812
-----------
COMPUTER SOFTWARE -- 5.5%
5,400 Business Objects S.A. ADR*........ 477,900
11,600 Serena Software, Inc.*............ 276,225
-----------
754,125
-----------
CONSUMER PRODUCTS -- 1.5%
10,000 Fossil, Inc.*..................... 210,000
-----------
DENTAL LABORATORIES -- 0.6%
5,000 National Dentex Corp.*............ 85,000
-----------
ELECTRONIC PRODUCTS -- 6.2%
5,000 Alpha Inds. Inc................... 302,500
16,600 California Amplifier, Inc.*....... 390,878
11,800 Invivo Corp.*..................... 153,400
-----------
846,778
-----------
ENTERTAINMENT SOFTWARE -- 1.7%
15,800 Activision, Inc.*................. 237,247
-----------
FIBER OPTICS -- 3.1%
7,100 Harmonic, Inc.*................... 426,888
-----------
HUMAN RESOURCES -- 1.7%
8,000 On Assignment, Inc.*.............. 224,500
-----------
INTEGRATED SYSTEMS -- 2.2%
5,900 Kronos, Inc.*..................... 306,063
-----------
INTERNET CONTENT -- 2.9%
7,000 CNET, Inc.*....................... 356,562
5,000 Net Radio......................... 40,312
-----------
396,874
-----------
INTERNET SOFTWARE -- 3.4%
3,300 Exodus Communications, Inc.*...... 355,781
2,156 At Home, Corp.*................... 104,587
-----------
460,368
-----------
VALUE
SHARES COMMON STOCKS (CONTINUED) (NOTE 1)
- --------- ---------------------------------- -----------
MANAGED CARE -- 1.0%
29,000 Caremark Rx, Inc.*................ $ 132,312
-----------
MEDICAL INFORMATION
SYSTEMS -- 2.1%
10,300 Dendrite International, Inc.*..... 283,250
-----------
OIL EXPLORATION &
PRODUCTION -- 3.5%
75,000 Canadian 99 Energy Corp.*......... 117,187
16,800 Cross Timbers Oil Company......... 171,150
7,100 Newfield Exploration Co.*......... 183,269
-----------
471,606
-----------
RETAIL -- 7.8%
9,000 BeBe Stores, Inc.*................ 280,125
5,400 Staples, Inc.*.................... 126,900
5,000 Tiffany & Co...................... 387,500
4,900 Williams-Sonoma, Inc.*............ 267,050
-----------
1,061,575
-----------
SEMICONDUCTOR -- 20.9%
6,200 Applied Micro Circuits Corp.*..... 515,375
10,000 ATMI, Inc.*....................... 304,375
5,300 ETEC Systems, Inc.*............... 227,900
3,500 JDS Uniphase Corp.*............... 800,625
3,000 KLA-Tencor Corp.*................. 253,688
6,700 TranSwitch Corp.*................. 314,900
14,900 Vishay Intertechnology, Inc.*..... 431,169
-----------
2,848,032
-----------
TELECOMMUNICATIONS &
EQUIPMENT -- 6.6%
7,000 ECI Telecommunications Ltd........ 175,438
11,000 MDSI Mobile Data Solutions*....... 209,000
1,000 Pairgain Technologies, Inc.*...... 15,250
2,800 Proxim, Inc.*..................... 156,800
5,800 Scientific Atlanta, Inc........... 338,212
-----------
894,700
-----------
TOTAL COMMON STOCKS (Cost
$6,808,104)....................... 12,243,831
-----------
Reserve Institutional Trust:
1,150,000 U.S. Government Institutional Fund
Class A
(Cost $1,150,000)................. 1,150,000
-----------
TOTAL INVESTMENTS (Cost
$7,958,104).................. 98.3% 13,393,831
OTHER ASSETS, LESS
LIABILITIES.................. 1.7 236,806
----- -----------
NET ASSETS................... 100.0% $13,630,637
----- -----------
----- -----------
- ---------------
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, 1999, was $7,958,104; the aggregate gross unrealized appreciation
was $5,707,359 and the aggregate unrealized gross unrealized depreciation was
$271,632.
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
RESERVE PRIVATE EQUITY SERIES--SMALL-CAP GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999 (UNAUDITED)
ASSETS:
Investments in securities, at value (cost
$7,958,104)............................. $13,393,831
Cash...................................... 107,601
Receivable for Fund shares sold........... 142,917
Dividend and interest receivable.......... 5,355
-----------
Total Assets............................ 13,649,704
-----------
LIABILITIES:
Payable for Fund shares repurchased....... 17,931
Other payables and accrued expenses....... 1,136
-----------
Total Liabilities....................... 19,067
-----------
NET ASSETS (NOTES 1 & 5):
Net assets consisting of 301,038 Class R
shares and 70,524 Class I shares
outstanding ($.001 par value)........... $13,630,637
-----------
-----------
NET ASSET VALUE PER SHARE (offering and
redemption price per share):
Class R ($11,857,044/301,038)............. $ 39.39
-----------
-----------
Class I ($1,773,593/70,524)............. $ 25.15
-----------
-----------
COMPOSITION OF NET ASSETS:
Capital Stock............................. $ 372
Paid in surplus........................... 6,170,025
Accumulated net investment loss........... (59,580)
Undistributed net realized gain on
investments............................. 2,084,093
Net unrealized appreciation on
investments............................. 5,435,727
-----------
NET ASSETS.................................. $13,630,637
-----------
-----------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999 (UNAUDITED)
INVESTMENT INCOME:
Dividends................................. $ 990
Interest.................................. 11,554
-----------
Total Investment Income................. 12,544
-----------
EXPENSES:
Comprehensive fee (Note 3)................ 60,702
Distribution fee (Note 3)................. 11,422
-----------
Total Expenses.......................... 72,124
-----------
Net Investment Loss....................... (59,580)
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
(NOTE 2):
Net realized gain on investments.......... 1,492,643
Net change in unrealized appreciation on
investments............................. 3,119,450
-----------
Net realized and unrealized gain on
investments............................. 4,612,093
-----------
Net Increase in Net Assets Resulting from
Operations.............................. $ 4,552,513
-----------
-----------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999 (UNAUDITED) AND THE YEAR ENDED
MAY 31, 1999
<TABLE>
<CAPTION>
1999 1999
----------- ----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
INVESTMENT OPERATIONS:
Net investment loss......................................................................... $ (59,580) $ (76,896)
Net realized gain on investment transactions................................................ 1,492,643 736,974
Net change in unrealized appreciation on investments........................................ 3,119,450 1,196,324
----------- ----------
Net increase in net assets resulting from operations........................................ 4,552,513 1,856,402
----------- ----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 4):
Net proceeds from sale of shares............................................................ 9,921,464 2,288,700
Cost of shares redeemed..................................................................... (7,103,415) (3,426,129)
----------- ----------
Net increase (decrease) in net assets resulting from capital share transactions............. 2,818,049 (1,137,429)
----------- ----------
Net increase in net assets.................................................................. 7,370,562 718,973
NET ASSETS:
Beginning of period......................................................................... 6,260,075 5,541,102
----------- ----------
End of period............................................................................... $13,630,637 $6,260,075
----------- ----------
----------- ----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
RESERVE PRIVATE EQUITY SERIES--STRATEGIC GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1999--(UNAUDITED)
VALUE
SHARES COMMON STOCKS -- 97.1% (NOTE 1)
- -------- ------------------------------- --------------
AUTO -- 1.5%
1,500 Ford Motor Company............. $ 75,750
--------------
BANKS -- 4.9%
1,700 Bank of America Corp........... 99,450
1,000 Chase Manhattan Corp........... 77,250
1,700 Wells Fargo Company............ 79,050
--------------
255,750
--------------
COMPUTERS -- 9.2%
1,700 Gateway Inc.................... 129,838
1,500 Hewlett-Packard Company........ 142,313
2,000 International Business Machines
Corp........................... 206,125
--------------
478,276
--------------
COMPUTER MEMORY DEVICES -- 4.2%
1,000 EMC Corp.*..................... 83,563
2,000 SanDisk Corp.*................. 136,202
--------------
219,765
--------------
COMPUTER MICROSYSTEMS -- 0.7%
1,400 Compaq Computer Corp........... 34,212
--------------
COMPUTER NETWORKING -- 1.7%
1,000 Cisco Systems, Inc.*........... 89,187
--------------
COMPUTER PERIPHERAL
EQUIPMENT -- 1.5%
3,300 American Power Conversion
Corp.*......................... 78,581
--------------
COMPUTER SOFTWARE -- 9.9%
750 Advent Software*............... 42,000
1,500 America Online, Inc.*.......... 218,063
1,300 Microsoft Corp.*............... 118,361
2,000 Oracle Corp.*.................. 135,625
--------------
514,049
--------------
CONSUMER PRODUCTS -- 1.8%
1,000 Gillette Company............... 40,187
500 Proctor & Gamble Company....... 54,000
94,187
--------------
DIVERSIFIED -- 1.3%
1,500 Seagram Company Ltd............ 65,344
--------------
ELECTRIC UTILITIES -- 1.1%
1,000 AES Corp.*..................... 57,937
--------------
ELECTRONICS -- 2.3%
900 General Electric Company....... 117,000
--------------
ENTERTAINMENT -- 1.1%
2,000 Walt Disney Company............ 55,750
--------------
VALUE
SHARES COMMON STOCKS (CONTINUED) (NOTE 1)
- -------- ------------------------------- --------------
FINANCIAL SERVICES -- 5.5%
2,500 Charles Schwab Corp............ $ 94,844
1,500 Citigroup, Inc................. 80,813
1,000 Goldman Sachs Group Inc........ 75,125
300 Morgan Stanley Dean Witter &
Company........................ 36,187
--------------
286,969
--------------
FOOD -- 0.7%
1,200 Koninkljke Ahold NV-SP ADR..... 38,400
--------------
INSURANCE -- 0.6%
1,200 Allstate Corp.................. 31,425
--------------
INVESTMENT TRUST -- 6.9%
1,000 Internet Holders Trust*........ 135,250
1,500 NASDAQ 100 *................... 221,906
--------------
357,156
--------------
MACHINERY -- 2.0%
1,200 Black & Decker Corp............ 53,850
1,100 Grainger W.W. Inc.............. 51,837
--------------
105,687
--------------
MANUFACTURING-DIVERSIFIED -- 6.4%
2,500 BP Amoco PLC ADR............... 152,344
2,500 Champion Enterprises, Inc.*.... 21,406
4,000 Tyco International Ltd......... 160,250
--------------
334,000
--------------
OFFICE-BUSINESS
EQUIPMENT -- 1.0%
2,000 Xerox Corp..................... 54,125
--------------
PHARMACEUTICALS -- 4.3%
600 Bristol-Myers Squibb Company... 43,838
700 Merck & Company, Inc........... 54,950
1,000 Pfizer, Inc.................... 36,187
1,000 Warner-Lambert Company......... 89,688
--------------
224,663
--------------
RESTAURANTS -- 2.2%
1,500 McDonald's Corp................ 67,500
1,700 Starbucks Corp.*............... 45,156
--------------
112,656
--------------
RETAIL -- 8.9%
1,200 Dayton Hudson Corp............. 84,675
1,500 Federated Department Stores*... 70,594
2,000 GAP, Inc....................... 81,000
1,200 Home Depot, Inc................ 94,875
3,000 K-Mart Corp.*.................. 29,813
1,800 Wal-Mart Stores, Inc........... 103,725
--------------
464,682
--------------
SEMICONDUCTORS -- 3.0%
2,000 Intel Corp..................... 153,375
--------------
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
RESERVE PRIVATE EQUITY SERIES--STRATEGIC GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS--NOVEMBER 30, 1999--(UNAUDITED) (CONTINUED)
VALUE
SHARES COMMON STOCKS (CONTINUED) (NOTE 1)
- -------- ------------------------------- --------------
TELECOMMUNICATIONS -- 7.1%
2,000 AT&T Corp...................... $ 111,750
1,000 Bell Atlantic Corp............. 63,313
1,500 MCI WorldCom, Inc.*............ 124,031
1,500 Qwest Communications
International*................. 51,281
300 US West Inc.................... 18,619
--------------
368,994
--------------
TELECOMMUNICATIONS
EQUIPMENT -- 2.9%
2,000 Lucent Technologies, Inc....... 146,125
--------------
TRANSPORTATION-AIR -- 1.6%
1,500 FDX Corp.*..................... 84,375
--------------
VALUE
SHARES COMMON STOCKS (CONTINUED) (NOTE 1)
- -------- ------------------------------- --------------
TRANSPORTATION-RAIL -- 2.9%
2,500 Kansas City Southern
Industries..................... $ 148,906
--------------
TOTAL COMMON STOCKS
(Cost $4,593,217)....... 97.1% 5,047,326
OTHER ASSETS, LESS
LIABILITIES............. 2.9 150,298
------ --------------
NET ASSETS.............. 100.0% $ 5,197,624
------ --------------
------ --------------
- ---------------
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 on November
30, 1999, was $4,593,217; the aggregate gross unrealized appreciation was
$625,748 and the aggregate gross unrealized depreciation was $171,639.
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
RESERVE PRIVATE EQUITY SERIES--STRATEGIC GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999 (UNAUDITED)
ASSETS:
Investments in securities, at value (cost
$4,593,217)............................ $ 5,047,326
Cash..................................... 271,398
Receivable for Fund shares sold.......... 11,414
Dividend and interest receivable......... 4,139
-----------
Total Assets............................. 5,334,277
-----------
LIABILITIES:
Payable for securities purchased......... 136,322
Other payables and accrued expenses...... 331
-----------
Total Liabilities........................ 136,653
-----------
NET ASSETS (NOTES 1 & 5):
Net assets consisting of 138,462 Class R
shares and 330,359 of Class I shares
outstanding ($.001 par value).......... $ 5,197,624
-----------
-----------
NET ASSET VALUE PER SHARE (offering and
redemption price per share):
Class R ($1,532,786/138,462)............. $ 11.07
-----------
-----------
Class I ($3,664,838/330,359)............. $ 11.09
-----------
-----------
COMPOSITION OF NET ASSETS:
Capital Stock............................ $ 469
Paid in surplus.......................... 4,749,472
Accumulated net investment loss.......... (6,426)
Net unrealized appreciation on
investments............................ 454,109
-----------
$ 5,197,624
-----------
-----------
STATEMENT OF OPERATIONS
FOR THE PERIOD JUNE 1, 1999 (COMMENCEMENT OF OPERATIONS)
THROUGH NOVEMBER 30, 1999 (UNAUDITED)
INVESTMENT INCOME:
Dividends................................ $ 10,283
Interest................................. 559
-----------
Total Investment Income................ 10,842
-----------
EXPENSES:
Comprehensive fee (Note 3)............... 15,596
Distribution fee (Note 3)................ 1,312
-----------
Total Expenses......................... 17,268
-----------
Net Investment Loss...................... (6,426)
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
(NOTE 2):
Net change in unrealized appreciation on
investments............................ 454,109
-----------
Net Increase in Net Assets Resulting from
Operations............................. $ 447,683
-----------
-----------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD JUNE 1, 1999 (COMMENCEMENT OF OPERATIONS) THROUGH NOVEMBER 30,
1999 (UNAUDITED)
<TABLE>
<S> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
INVESTMENT OPERATIONS:
Net investment loss................................................................................... $ (6,426)
Net change in unrealized appreciation on investments.................................................. 454,109
-----------
Net increase in net assets resulting from operations.................................................. 447,683
-----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 4):
Net proceeds from sale of shares...................................................................... 4,987,424
Cost of shares redeemed............................................................................... (237,483)
-----------
Net increase in net assets resulting from capital share transactions.................................. 4,749,941
-----------
Net increase in net assets............................................................................ 5,197,624
NET ASSETS:
Beginning of period................................................................................... --
-----------
End of period......................................................................................... $ 5,197,624
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS--(UNAUDITED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reserve Private Equity Series (the "Trust") was formed as a business trust
under the laws of the state of Delaware. Currently, the Trust is comprised
of six regulated investment companies (commonly called mutual funds):
Reserve Blue Chip Growth Fund, Reserve Informed Investors Growth Fund,
Reserve International Equity Fund, Reserve Large-Cap Growth Fund, Reserve
Small-Cap Growth Fund and Reserve Strategic Growth Fund (collectively the
"Funds"). The Trust has the right, at its discretion, to add other funds
if the situation warranted.
The Trust is registered under the Investment Company Act of 1940, as a
non-diversified open-end investment company. Each Fund in the Trust has an
unlimited number of shares of beneficial interest of $.001 par value.
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. Securities listed or traded on
an exchange are valued at the last sales price on the exchange in which
the security is principally traded or, lacking any sales, at the mean
between the closing bid and asked price. Securities traded in the
over-the-counter market are valued at the mean between the quoted bid and
asked price. 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 a trade date basis. 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 are recorded on the identified cost basis for both
financial statement and federal income tax purposes.
FOREIGN CURRENCY TRANSLATION
With respect to the Reserve International Equity Fund, assets and
liabilities denominated in foreign currencies 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 Fund does not
segregate that portion of the results of operations resulting from changes
in foreign exchange rates from the portion resulting from changes in
market prices of securities held; both are included in net realized and
unrealized gains or losses on investments and foreign currency
transactions.
FEDERAL INCOME TAXES
It is the Trust's policy for each Fund to continue to qualify as a
regulated investment company under the Internal Revenue Code of 1986, as
amended, by complying with the requirements of the Internal Revenue Code
applicable to regulated investment companies, and to distribute
substantially all of its taxable income, including net realized capital
gains, if any, to its shareholders. Therefore, no federal income tax
provision is required.
At May 31, 1999, the Trust's fiscal year end, the Reserve International
Equity Fund had capital loss carry-forwards, for federal income tax
purposes, that are available to offset future net realized capital gains,
if any:
<TABLE>
<CAPTION>
CAPITAL LOSS EXPIRATION
CARRY FORWARD YEAR
------------- ----------
<S> <C> <C>
Reserve International Equity Fund........................................................... $ 458,731 2006
</TABLE>
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS--(UNAUDITED) (CONTINUED)
2. INVESTMENT ACTIVITY
For the six months ended November 30, 1999, the aggregate cost of
purchases and proceeds from sales of investments (excluding short-term
investments) were as follows:
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE
PURCHASES SALES
----------- -----------
<S> <C> <C>
Blue Chip Growth Fund.................................................................... $ 3,470,553 $ 2,978,478
Informed Investors Growth Fund........................................................... 13,372,004 12,805,508
International Equity Fund................................................................ 3,062,272 6,501,081
Large-Cap Growth Fund.................................................................... 2,576,700 2,845,981
Small-Cap Growth Fund.................................................................... 5,288,918 3,723,214
Strategic Growth Fund.................................................................... 4,593,217 --
</TABLE>
3. ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Reserve Management Company, Inc. ("RMCI"), serves as the Trust's
investment adviser subject to the direction of the Trustees. Under the
Investment Management Agreement, RMCI is responsible for the day-to-day
operations, including monitoring investment programs, portfolio valuation,
compliance, administration, or any other functions as required by the
Trust. RMCI pays employee and customary operating expenses of the Trust,
exclusive of interest, taxes, brokerage fees, extraordinary legal and
accounting fees, and the fees of the disinterested Trustees for which each
Fund pays its direct or allocated share. For its services as investment
adviser, RMCI receives the an annual fee, based on each class' average
daily net assets, at the following annual rates:
<TABLE>
<CAPTION>
CLASS R CLASS I
------- -------
<S> <C> <C>
Blue Chip Growth Fund.............................................................................. 1.20% 0.90%
Informed Investors Growth Fund..................................................................... 1.30 1.00
International Equity Fund.......................................................................... 1.55 1.25
Large-Cap Growth Fund.............................................................................. 1.20 0.90
Small-Cap Growth Fund.............................................................................. 1.30 1.00
Strategic Growth Fund.............................................................................. 1.20 0.90
</TABLE>
RMCI has entered into an Investment Agreement with registered investment
advisers to serve as the Funds' Sub-Advisers (the "Sub- Advisers"). Under
the general supervision of RMCI, the Sub-Advisers are responsible for the
day-to-day investment decisions.
For their services, the Sub-Advisers of the Funds, with the exception of
Condor Capital Management ("Condor"), receive an annual fee of up to
one-half of the Adviser's net profit for the year before taxes of the
respective Fund. Net profit is deemed to be the management fee less direct
and allocated fund expenses and all applicable sales and marketing costs.
For the services rendered by Condor, the Adviser shall pay to Condor at
the end of each calendar quarter an annualized fee equal to 0.30% of the
Fund's assets. The Adviser may also pay a Sub-Adviser for marketing
assistance.
RMCI has entered into a Distribution Plan with Resrv Partners, Inc.
("RESRV"), a wholly-owned subsidiary of RMCI. As Distributor, RESRV is
responsible for accepting Fund share purchases and redemptions on behalf
of the Funds, providing at its own expense financial consultants and
compensating broker-dealers who supply distribution assistance to RESRV.
RESRV also is responsible for the marketing efforts of the Funds. For its
services as distributor, RESRV receives an annual fee of 0.25 of 1% the
Class R average daily net assets.
<TABLE>
<CAPTION>
DISTRIBUTION FEE
----------------
<S> <C>
Blue Chip Growth Fund................................................................................ $ 14,321
Informed Investors Growth Fund....................................................................... 5,878
International Equity Fund............................................................................ 16,788
Large-Cap Growth Fund................................................................................ 9,885
Small-Cap Growth Fund................................................................................ 11,422
Strategic Growth Fund................................................................................ 1,312
</TABLE>
TRANSACTIONS WITH AFFILIATES
As of November 30, 1999, certain key officers of RMCI owned 28.4% of Blue
Chip Growth Fund, 26.6% of Informed Investors Growth Fund, 12.0% of
Large-Cap Growth Fund, 25.7% of Small-Cap Growth Fund and 25.8% of
Strategic Growth Fund.
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS--(UNAUDITED) (CONTINUED)
4. CAPITAL SHARE TRANSACTIONS
For the six months ended November 30, 1999 the capital stock transactions
of each Fund were as follows:
<TABLE>
<CAPTION>
CLASS R CLASS I
--------------------------- ------------------------
RESERVE BLUE CHIP GROWTH FUND SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------- ---------- ------------- --------- -----------
<S> <C> <C> <C> <C>
Sold........................................................... 69,579 $ 1,578,876 99,488 $ 1,458,607
Redeemed....................................................... (104,375) (2,388,534) -- --
---------- ------------- --------- -----------
Net Increase (Decrease)........................................ (34,796) $ (809,658) 99,488 $ 1,458,607
---------- ------------- --------- -----------
---------- ------------- --------- -----------
<CAPTION>
CLASS R CLASS I
--------------------------- ------------------------
RESERVE INFORMED INVESTORS GROWTH FUND SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------- ---------- ------------- --------- -----------
<S> <C> <C> <C> <C>
Sold........................................................... 74,127 $ 1,092,491 54,752 $ 683,714
Redeemed....................................................... (98,781) (1,385,473) -- --
---------- ------------- --------- -----------
Net Increase (Decrease)........................................ (24,654) $ (292,982) 54,752 $ 683,714
---------- ------------- --------- -----------
---------- ------------- --------- -----------
<CAPTION>
CLASS R CLASS I
--------------------------- ------------------------
RESERVE INTERNATIONAL EQUITY FUND SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------- ---------- ------------- --------- -----------
<S> <C> <C> <C> <C>
Sold........................................................... 1,175,343 $ 18,133,296 8,067 $ 111,602
Redeemed....................................................... (1,361,270) (21,085,985) -- --
---------- ------------- --------- -----------
Net Increase (Decrease)........................................ (185,927) $ (2,952,689) 8,067 $ 111,602
---------- ------------- --------- -----------
---------- ------------- --------- -----------
<CAPTION>
CLASS R CLASS I
--------------------------- ------------------------
RESERVE LARGE-CAP GROWTH FUND SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------- ---------- ------------- --------- -----------
<S> <C> <C> <C> <C>
Sold........................................................... 21,859 $ 472,120 100,424 $ 1,225,412
Redeemed....................................................... (88,290) (1,901,631) (45,026) (557,494)
---------- ------------- --------- -----------
Net Increase (Decrease)........................................ (66,431) $ (1,429,511) 55,398 $ 667,918
---------- ------------- --------- -----------
---------- ------------- --------- -----------
<CAPTION>
CLASS R CLASS I
--------------------------- ------------------------
RESERVE SMALL-CAP GROWTH FUND SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------- ---------- ------------- --------- -----------
<S> <C> <C> <C> <C>
Sold........................................................... 260,710 $ 8,408,616 70,411 $ 1,512,848
Redeemed....................................................... (224,747) (7,103,415) -- --
---------- ------------- --------- -----------
Net Increase................................................... 35,963 $ 1,305,201 70,411 $ 1,512,848
---------- ------------- --------- -----------
---------- ------------- --------- -----------
<CAPTION>
CLASS R CLASS I
--------------------------- ------------------------
RESERVE STRATEGIC GROWTH FUND SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------- ---------- ------------- --------- -----------
<S> <C> <C> <C> <C>
Sold........................................................... 156,847 $ 1,621,447 335,367 $ 3,365,977
Redeemed....................................................... (18,385) (185,388) (5,008) (52,095)
---------- ------------- --------- -----------
Net Increase................................................... 138,462 $ 1,436,059 330,359 $ 3,313,882
---------- ------------- --------- -----------
---------- ------------- --------- -----------
</TABLE>
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS--(UNAUDITED) (CONTINUED)
CAPITAL SHARE TRANSACTIONS (CONTINUED)
For the year ended May 31, 1999 the capital stock transactions of each
Fund was as follows:
<TABLE>
<CAPTION>
CLASS R CLASS I
--------------------------- ------------------------
RESERVE BLUE CHIP GROWTH FUND SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------- ---------- ------------- --------- -----------
<S> <C> <C> <C> <C>
Sold........................................................... 120,237 $ 2,208,029 112 $ 1,166
Reinvested..................................................... 36,055 608,254 10 104
Redeemed....................................................... (214,503) (4,118,126) -- --
---------- ------------- --------- -----------
Net Increase (Decrease)........................................ (58,211) $ (1,301,843) 122 $ 71,270
---------- ------------- --------- -----------
---------- ------------- --------- -----------
<CAPTION>
CLASS R CLASS I
--------------------------- ------------------------
RESERVE INFORMED INVESTORS GROWTH FUND SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------- ---------- ------------- --------- -----------
<S> <C> <C> <C> <C>
Sold........................................................... 239,436 $ 2,947,459 115 $ 1,166
Reinvested..................................................... 53,132 508,470 23 193
Redeemed....................................................... (373,881) (4,285,126) -- --
---------- ------------- --------- -----------
Net Increase (Decrease)........................................ (81,813) $ (829,197) 138 $ 1,359
---------- ------------- --------- -----------
---------- ------------- --------- -----------
<CAPTION>
CLASS R CLASS I
--------------------------- ------------------------
RESERVE INTERNATIONAL EQUITY FUND SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------- ---------- ------------- --------- -----------
<S> <C> <C> <C> <C>
Sold........................................................... 699,763 $ 9,090,978 115 $ 1,166
Redeemed....................................................... (703,928) (9,189,122) -- --
---------- ------------- --------- -----------
Net Increase (Decrease)........................................ (4,165) $ (98,144) 115 $ 1,166
---------- ------------- --------- -----------
---------- ------------- --------- -----------
<CAPTION>
CLASS R CLASS I
--------------------------- ------------------------
RESERVE LARGE-CAP GROWTH FUND SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------- ---------- ------------- --------- -----------
<S> <C> <C> <C> <C>
Sold........................................................... 900,731 $ 16,910,071 1,033,943 $12,333,487
Reinvested..................................................... 27,901 522,595 5 54
Redeemed....................................................... (922,682) (18,512,127) (35,446) (440,000)
---------- ------------- --------- -----------
Net Increase (Decrease)........................................ 5,950 $ (1,079,461) 988,502 $11,893,541
---------- ------------- --------- -----------
---------- ------------- --------- -----------
<CAPTION>
CLASS R CLASS I
--------------------------- ------------------------
RESERVE SMALL-CAP GROWTH FUND SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------- ---------- ------------- --------- -----------
<S> <C> <C> <C> <C>
Sold........................................................... 107,988 $ 2,287,534 113 $ 1,166
Redeemed....................................................... (175,495) (3,426,129) -- --
---------- ------------- --------- -----------
Net Increase (Decrease)........................................ (67,507) $ (1,138,595) 113 $ 1,166
---------- ------------- --------- -----------
---------- ------------- --------- -----------
</TABLE>
5. 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.
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS--(UNAUDITED) (CONTINUED)
6. FINANCIAL HIGHLIGHTS (FOR EACH SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
Contained below is per share operating performance for a share of each
Class for each of the periods indicated. The information should be read in
conjunction with the accompanying financial data and related notes.
<TABLE>
<CAPTION>
CLASS R CLASS I
------------------------------------------------------------------ ------------
SIX MONTHS SIX MONTHS
ENDED FISCAL YEARS ENDED MAY 31, ENDED
NOVEMBER 30, ------------------------------------------------- NOVEMBER 30,
1999 1999 1998 1997 1996 1995(A) 1999
------------ ------- ------- ------ ------ ------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
RESERVE BLUE CHIP GROWTH FUND
Net asset value, beginning of period..... $ 20.84 $ 15.09 $ 15.46 $14.91 $12.03 $ 10.00 $ 13.29
-------- ------- ------- ------ ------ ------- --------
Income from investment operations
Net investment loss.................... (.13) (.23) (.00) (.17) (.10) (.03) (.02)
Net realized and unrealized gain....... 4.79 7.02 2.82 0.91 3.62 2.06 3.05
-------- ------- ------- ------ ------ ------- --------
Total from investment operations......... 4.66 6.79 2.82 0.74 3.52 2.03 3.03
Less distribution from net realized
income and net capital gain............ -- (1.04) (3.19) (.19) (.64) -- --
-------- ------- ------- ------ ------ ------- --------
Net asset value, end of period........... $ 25.50 $ 20.84 $ 15.09 $15.46 $14.91 $ 12.03 $ 16.32
-------- ------- ------- ------ ------ ------- --------
-------- ------- ------- ------ ------ ------- --------
Total Return............................. 22.36% 46.62% 19.70% 5.12% 30.10% 20.30% 22.80%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (thousands)..... $ 12,043 $10,570 $ 8,532 $5,428 $5,130 $ 1,993 $ 1,626
Ratio of expenses to average net
assets................................. 1.45%(c) 1.53% 1.75% 1.75% 1.75% 1.73%(c) .88%(c)
Ratio of net investment loss to average
net assets............................. (1.09)%(c) (.96)% (.87)% (1.13)% (.94)% (.70)%(c) (.65)%(c)
Portfolio turnover rate.................. 26% 144% 113% 109% 72% 68% 26%
<CAPTION>
CLASS I
-------
PERIOD
ENDED
MAY 31,
1999(B)
-------
<S> <C>
RESERVE BLUE CHIP GROWTH FUND
Net asset value, beginning of period..... $ 10.00
-------
Income from investment operations
Net investment loss.................... (.32)
Net realized and unrealized gain....... 4.65
-------
Total from investment operations......... 4.33
Less distribution from net realized
income and net capital gain............ (1.04)
-------
Net asset value, end of period........... $ 13.29
-------
-------
Total Return............................. 32.90%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (thousands)..... $ 2
Ratio of expenses to average net
assets................................. .88%(c)
Ratio of net investment loss to average
net assets............................. (1.12)%(c)
Portfolio turnover rate.................. 144%
</TABLE>
<TABLE>
<CAPTION>
CLASS R CLASS I
------------------------------------------------------------------- ------------
SIX MONTHS SIX MONTHS
ENDED FISCAL YEARS ENDED MAY 31, ENDED
NOVEMBER 30, -------------------------------------------------- NOVEMBER 30,
1999 1999 1998 1997 1996 1995(D) 1999
------------ ------- ------- ------ ------ ------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
RESERVE INFORMED INVESTORS GROWTH FUND
Net asset value, beginning of period... $ 12.38 $ 10.46 $ 11.48 $14.36 $11.99 $ 10.00 $ 10.85
-------- ------- ------- ------ ------ ------- --------
Income from investment operations
Net investment loss.................. (.10) (.27) (.20) (.07) (.33) (.07) (.03)
Net realized and unrealized gain
(loss)............................. 6.22 (4.12) 2.08 (1.66) 3.87 2.06 5.45
-------- ------- ------- ------ ------ ------- --------
Total from investment operations....... 6.12 3.85 1.88 (1.73) 3.54 1.99 5.42
Less distribution from net realized net
capital gain......................... -- (1.93) (2.90) (1.15) (1.17) -- --
-------- ------- ------- ------ ------ ------- --------
Net asset value, end of period......... $ 18.50 $ 12.38 $ 10.46 $11.48 $14.36 $ 11.99 $ 16.27
-------- ------- ------- ------ ------ ------- --------
-------- ------- ------- ------ ------ ------- --------
Total Return........................... 49.43% 42.22% 17.88% (11.35)% 29.75% 19.90% 49.95%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (thousands)... $ 5,706 $ 4,123 $ 4,334 $5,477 $6,393 $ 6,837 $ 893
Ratio of expenses to average net
assets............................... 1.57%(c) 1.61% 1.75% 1.75% 1.75% 1.75%(c) .96%(c)
Ratio of net investment loss to average
net assets........................... (1.41)%(c) (1.04)% (.91)% (.57)% (1.57)% (1.62)%(c) (.86)%(c)
Portfolio turnover rate................ 297% 551% 410% 255% 132% 59% 297%
<CAPTION>
CLASS I
-------
PERIOD
ENDED
MAY 31,
1999(B)
-------
<S> <C>
RESERVE INFORMED INVESTORS GROWTH FUND
Net asset value, beginning of period... $ 10.00
-------
Income from investment operations
Net investment loss.................. (.03)
Net realized and unrealized gain
(loss)............................. 2.81
-------
Total from investment operations....... 2.78
Less distribution from net realized net
capital gain......................... (1.93)
-------
Net asset value, end of period......... $ 10.85
-------
-------
Total Return........................... 8.50%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (thousands)... $ 1
Ratio of expenses to average net
assets............................... 1.06%(c)
Ratio of net investment loss to average
net assets........................... (.59)%(c)
Portfolio turnover rate................ 551%
</TABLE>
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS--(UNAUDITED) (CONTINUED)
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS R CLASS I
---------------------------------------------------------- ------------
SIX MONTHS SIX MONTHS
ENDED FISCAL YEARS ENDED MAY 31, ENDED
NOVEMBER 30, ----------------------------------------- NOVEMBER 30,
1999 1999 1998 1997 1996(E) 1999
------------ ------- ------- ------- ------- ------------
<S> <C> <C> <C> <C> <C> <C>
RESERVE INTERNATIONAL EQUITY FUND
Net asset value, beginning of period............ $ 12.73 $ 13.22 $ 12.59 $ 11.26 $ 10.00 $ 11.21
-------- ------- ------- ------- ------- --------
Income from investment operations
Net investment loss........................... (.08) (.06) (.04) (.07) (.05) (.02)
Net realized and unrealized gain (loss)....... 6.77 (.43) .67 1.40 1.31 5.96
-------- ------- ------- ------- ------- --------
Total from investment operations................ 6.69 (.49) .63 1.33 1.26 5.94
-------- ------- ------- ------- ------- --------
Net asset value, end of period.................. $ 19.42 $ 12.73 $ 13.22 $ 12.59 $ 11.26 $ 17.15
-------- ------- ------- ------- ------- --------
-------- ------- ------- ------- ------- --------
Total Return.................................... 52.55% (3.78)% 5.00% 11.81% 12.60% 52.99%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (thousands)............ $ 15,180 $12,310 $12,699 $12,099 $ 3,578 $ 140
Ratio of expenses to average net assets
waiver........................................ 1.79%(c) 1.87% 2.00% 2.00% 2.00%(c) 1.21%(c)
Ratio of net investment loss to average net
assets........................................ (1.10)%(c) (.50)% (.39)% (.82)% (.92)%(c) (.74)%(c)
Portfolio turnover rate......................... 23% 174% 114% 52% 70% 23%
<CAPTION>
CLASS I
-------
PERIOD
ENDED
MAY 31,
1999(B)
-------
<S> <C>
RESERVE INTERNATIONAL EQUITY FUND
Net asset value, beginning of period............ $ 10.00
-------
Income from investment operations
Net investment loss........................... (.48)
Net realized and unrealized gain (loss)....... 1.69
-------
Total from investment operations................ 1.21
-------
Net asset value, end of period.................. $ 11.21
-------
-------
Total Return.................................... 12.00%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (thousands)............ $ 1
Ratio of expenses to average net assets
waiver........................................ 1.29%(c)
Ratio of net investment loss to average net
assets........................................ (5.43)%(c)
Portfolio turnover rate......................... 174%
</TABLE>
<TABLE>
<CAPTION>
CLASS R CLASS I
--------------------------------------------------------- ------------
SIX MONTHS SIX MONTHS
ENDED FISCAL YEARS ENDED MAY 31, ENDED
NOVEMBER 30, ---------------------------------------- NOVEMBER 30,
1999 1999 1998 1997 1996(F) 1999
------------ ------- ------- ------ ------- ------------
<S> <C> <C> <C> <C> <C> <C>
RESERVE LARGE-CAP GROWTH FUND
Net asset value, beginning of period............. $ 21.38 $ 18.16 $ 14.61 $10.95 $ 10.00 $ 12.06
-------- ------- ------- ------ ------- --------
Income from investment operations
Net investment income (loss)................... .02 -- (.03) (.03) (.01) .01
Net realized and unrealized gain............... .68 3.76 3.89 3.69 .96 .42
-------- ------- ------- ------ ------- --------
Total from investment operations................. .70 3.76 3.86 3.66 .95 .43
Less distributions from net realized gain........ -- (.54) (.31) -- -- --
-------- ------- ------- ------ ------- --------
Net asset value, end of period................... $ 22.08 $ 21.38 $ 18.16 $14.61 $ 10.95 $ 12.49
-------- ------- ------- ------ ------- --------
-------- ------- ------- ------ ------- --------
Total Return..................................... 3.27% 21.13% 26.71% 33.42% 9.50% 3.57%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (thousands)............. $ 6,915 $ 8,118 $ 6,786 $3,054 $ 1,231 $ 13,161
Ratio of expenses to average net assets.......... 1.45%(c) 1.51% 1.75% 1.75% 1.75%(c) .90%(c)
Ratio of net investment income (loss) to average
net assets..................................... .18%(c) (.22)% (.36)% (.32)% (.32)%(c) .11%(c)
Portfolio turnover rate.......................... 13% 69% 25% 18% 0% 13%
<CAPTION>
CLASS I
-------
PERIOD
ENDED
MAY 31,
1999
-------
<S> <C>
RESERVE LARGE-CAP GROWTH FUND
Net asset value, beginning of period............. $ 10.00
-------
Income from investment operations
Net investment income (loss)................... (.01)
Net realized and unrealized gain............... 2.61
-------
Total from investment operations................. 2.60
Less distributions from net realized gain........ (.54)
-------
Net asset value, end of period................... $ 12.06
-------
-------
Total Return..................................... 20.60%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (thousands)............. $12,042
Ratio of expenses to average net assets.......... .87%(c)
Ratio of net investment income (loss) to average
net assets..................................... (.38)%(c)
Portfolio turnover rate.......................... 69%
</TABLE>
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS--(UNAUDITED) (CONTINUED)
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS R CLASS I
------------------------------------------------------------------ ------------
SIX MONTHS SIX MONTHS
ENDED FISCAL YEARS ENDED MAY 31, ENDED
NOVEMBER 30, ------------------------------------------------- NOVEMBER 30,
1999 1999 1998 1997 1996 1995(G) 1999
------------ ------- ------- ------ ------ ------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
RESERVE SMALL-CAP GROWTH FUND
Net asset value, beginning of period..... $ 23.61 $ 16.66 $ 15.52 $19.56 $12.21 $ 10.00 $ 15.05
-------- ------- ------- ------ ------ ------- --------
Income from investment operations
Net investment loss.................... (.21) (.51) (.39) (.28) (.17) (.09) (.03)
Net realized and unrealized gain
(loss)............................... 15.99 7.46 1.53 (3.76) 8.05 2.30 10.13
-------- ------- ------- ------ ------ ------- --------
Total from investment operations......... 15.78 6.95 1.14 (4.04) 7.88 2.21 10.10
Less distribution from net realized
gain................................... -- -- -- -- (.53) -- --
-------- ------- ------- ------ ------ ------- --------
Net asset value, end of period........... $ 39.39 $ 23.61 $ 16.66 $15.52 $19.56 $ 12.21 $ 25.15
-------- ------- ------- ------ ------ ------- --------
-------- ------- ------- ------ ------ ------- --------
Total Return............................. 66.84% 41.72% 7.35% (20.65)% 65.55% 22.10% 67.11%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (thousands)..... $ 11,857 $ 6,258 $ 5,541 $5,789 $6,657 $ 1,241 $ 1,774
Ratio of expenses to average net
assets................................. 1.54%(c) 1.61% 1.75% 1.75% 1.75% 1.75%(c) .96%(c)
Ratio of net investment loss to average
net assets............................. (1.28)%(c) (1.44)% (1.64)% (1.69)% (1.70)% (1.62)%(c) (.79)%(c)
Portfolio turnover rate.................. 41% 26% 46% 28% 38% 43% 41%
<CAPTION>
CLASS I
-------
PERIOD
ENDED
MAY 31,
1999(B)
-------
<S> <C>
RESERVE SMALL-CAP GROWTH FUND
Net asset value, beginning of period..... $ 10.00
-------
Income from investment operations
Net investment loss.................... (.08)
Net realized and unrealized gain
(loss)............................... 5.13
-------
Total from investment operations......... 5.05
Less distribution from net realized
gain................................... --
-------
Net asset value, end of period........... $ 15.05
-------
-------
Total Return............................. 50.50%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (thousands)..... $ 2
Ratio of expenses to average net
assets................................. 1.00%(c)
Ratio of net investment loss to average
net assets............................. (.89)%(c)
Portfolio turnover rate.................. 26%
</TABLE>
<TABLE>
<CAPTION>
CLASS R CLASS I
------- -------
1999(H) 1999(H)
------- -------
<S> <C> <C>
RESERVE STRATEGIC GROWTH FUND
Net asset value, beginning of period............................................................. $ 10.00 $ 10.00
------- -------
Income from investment operations
Net investment loss............................................................................ (.02) (.01)
Net realized and unrealized gain............................................................... 1.09 1.10
------- -------
Total from investment operations................................................................. 1.07 1.09
------- -------
Net asset value, end of period................................................................... $ 11.07 $ 11.09
------- -------
------- -------
Total Return..................................................................................... 10.70% 10.90%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (thousands)............................................................. $ 1,533 $ 3,665
Ratio of expenses to average net assets.......................................................... 1.40%(c) .98%(c)
Ratio of net investment loss to average net assets............................................... (.52)%(c) (.36)%(c)
Portfolio turnover rate.......................................................................... 0% 0%
</TABLE>
- ---------------
(a) From October 28, 1994 (Commencement of Operations) to May 31, 1995.
(b) From October 1, 1998 (Commencement of Operations) to May 31, 1999.
(c) Annualized.
(d) From December 28, 1994 (Commencement of Operations) to May 31, 1995.
(e) From July 13, 1995 (Commencement of Operations) to May 31, 1996.
(f) From January 2, 1996 (Commencement of Operations) to May 31, 1996.
(g) From November 14, 1994 (Commencement of Operations) to May 31, 1995.
(h) From June 1, 1999 (Commencement of Operations) to November 30, 1999.
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