<Page>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: 811-10533
Exact name of registrant as specified
in charter: Reserve Municipal Money Market Trust
Address of principal executive offices: 1250 Broadway
New York, NY 10001-3701
Name and address of agent for service: Charles Bentz
1250 Broadway
New York, NY 10001-3701
Registrant's telephone number, including
area code: 212-401-5720
Date of fiscal year end: May 31, 2004
Date of reporting period: November 30, 2003
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Item 1 -- Reports to Stockholders
<Page>
[THE RESERVE FUNDS(R) LOGO]
1250 Broadway, New York, NY 10001-3701
(212) 401-5500
GENERAL INFORMATION AND 24-HOUR YIELD AND BALANCE
INFORMATION
800-637-1700 / / www.reservefunds.com
This literature is not authorized for distribution to prospective investors
unless preceded or accompanied by an appropriate current prospectus.
Distributor--Resrv Partners, Inc.
RTET/SEMI-ANNUAL 11/03
[THE RESERVE FUNDS(R) LOGO]
SEMI-ANNUAL REPORT
RESERVE NEW YORK TAX-EXEMPT TRUST
NEW YORK TAX-EXEMPT FUND
RESERVE TAX-EXEMPT TRUST
CALIFORNIA TAX-EXEMPT FUND
CONNECTICUT TAX-EXEMPT FUND
FLORIDA TAX-EXEMPT FUND
MASSACHUSETTS TAX-EXEMPT FUND
MICHIGAN TAX-EXEMPT FUND
NEW JERSEY TAX-EXEMPT FUND
OHIO TAX-EXEMPT FUND
PENNSYLVANIA TAX-EXEMPT FUND
VIRGINIA TAX-EXEMPT FUND
RESERVE MUNICIPAL MONEY-MARKET TRUST
LOUISIANA MUNICIPAL MONEY-MARKET FUND
MINNESOTA MUNICIPAL MONEY-MARKET FUND
NOVEMBER 30, 2003
<Page>
RESERVE NEW YORK TAX-EXEMPT TRUST--NEW YORK TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 2003 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--99.8% (NOTE 1)
--------- ----------------------------- --------
$ 3,700,000 Cattaraugus County IDA for YMCA, 1.20%, 9/1/28(a)....... $ 3,700,000
3,320,000 Chemung County IDA for Civic Arnot Ogden Medical Center,
1.10%, 3/1/19(a) ....................................... 3,320,000
2,785,000 Franklin County IDA for Civic Trudeau Institute Inc.
Project, 1.10%, 12/1/20(a) ............................. 2,785,000
1,000,000 Glens Falls IDA, 1.18%, 8/1/05(a)....................... 1,000,000
2,000,000 Jay Street Development Corp., Series A1, 1.10%,
5/1/22(a)............................................... 2,000,000
4,300,000 Jay Street Development Corp., Series A3, 1.08%,
5/1/21(a)............................................... 4,300,000
5,000,000 Long Island Power Authority, Series 2A, 1.10%,
5/1/33(a)............................................... 5,000,000
1,500,000 Monroe County for St. Anns Home, 1.07%, 7/1/30(a)....... 1,500,000
7,400,000 New York City Cultural Resources for Alvin Ailey Dance
Foundation, 1.05%, 7/1/33(a) ........................... 7,400,000
7,000,000 New York City GO, Series A2, 1.10%, 8/1/31(a)........... 7,000,000
1,300,000 New York City GO, Series A4, 1.03%, 8/1/22(a)........... 1,300,000
2,200,000 New York City GO, Series A4, 1.03%, 8/1/23(a)........... 2,200,000
7,850,000 New York City GO, Series A4, 1.00%, 8/1/21(a)........... 7,850,000
6,215,000 New York City GO, Series A5, 1.00%, 8/1/15(a)........... 6,215,000
2,285,000 New York City GO, Series A5, 1.00%, 8/1/16(a)........... 2,285,000
7,000,000 New York City GO, Series A5, 1.15%, 8/1/31(a)........... 7,000,000
7,950,000 New York City GO, Series A8, 1.10%, 11/1/23(a).......... 7,950,000
3,045,000 New York City GO, Series B8, 1.10%, 8/15/24(a).......... 3,045,000
5,000,000 New York City GO, Series C4, 1.10%, 8/1/20(a)........... 5,000,000
600,000 New York City GO, Series E3, 1.02%, 8/1/23(a)........... 600,000
8,500,000 New York City GO, Series E4, 1.02%, 8/1/21(a)........... 8,500,000
2,000,000 New York City GO, Series F4, 1.10%, 2/15/20(a).......... 2,000,000
3,350,000 New York City GO, Series F5, 1.10%, 2/15/16(a).......... 3,350,000
8,000,000 New York City GO, Series H2, 1.10%, 8/1/10(a)........... 8,000,000
1,000,000 New York City IDA for Abraham Joshua Heschel Project,
1.15%, 4/1/32(a)........................................ 1,000,000
4,035,000 New York City IDA for American Civil Liberties, 1.10%,
6/1/12(a)............................................... 4,035,000
5,300,000 New York City IDA for American Society for Technion
Project, 1.20%, 10/1/33(a) ............................. 5,300,000
4,300,000 New York City IDA for Childrens Onocology Society,
1.08%, 5/1/21(a)........................................ 4,300,000
1,480,000 New York City IDA for Church of Heavenly Rest, 1.10%,
7/1/21(a)............................................... 1,480,000
3,400,000 New York City MWFA, Series A, 1.03%, 6/15/25(a)......... 3,400,000
1,000,000 New York City MWFA, Series C, 1.00%, 6/15/22(a)......... 1,000,000
400,000 New York City MWFA, Series C, 1.00%, 6/15/23(a)......... 400,000
4,000,000 New York State Dormitory Authority, State Personal
Income Tax, 2.00%, 12/15/03(a) ......................... 4,001,515
4,400,000 New York State HDC, Monterey, Series 97A, 1.10%,
11/15/19(a)............................................. 4,400,000
5,745,000 New York State HFA for 10 Liberty Street, 1.10%,
11/1/35(a).............................................. 5,745,000
1,195,000 New York State HFA for Bleeker Terrace Apartment
Project, 1.15%, 7/1/15(a) .............................. 1,195,000
4,600,000 New York State HFA for Liberty View, Series A, 1.10%,
11/15/19(a)............................................. 4,600,000
1,980,000 New York State HFA for Normandie Project, Series I,
1.05%, 5/15/15(a)....................................... 1,980,000
14,850,000 New York State HFA, Series C, 1.10%, 3/15/26(a)......... 14,850,000
1,640,000 New York State Local Government Authority, Series C,
1.10%, 4/1/25(a)........................................ 1,640,000
10,000,000 New York State Local Government Authority, Series D,
1.00%, 4/1/25(a)........................................ 10,000,000
2,500,000 New York State Local Government Authority, Series E,
1.12%, 4/1/25(a)........................................ 2,500,000
4,000,000 New York State PCR for NY Electric & Gas, Series B,
1.00%, 2/1/29(a)........................................ 4,000,000
8,700,000 New York State PCR for NY Electric & Gas, Series C,
1.00%, 6/1/29(a)........................................ 8,700,000
3,950,000 Schenectady County IDA for Sunnyview Hospital & Rehab,
1.15%, 8/1/33(a)........................................ 3,950,000
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
2
<Page>
RESERVE NEW YORK TAX-EXEMPT TRUST--NEW YORK TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 2003 (UNAUDITED) (CONTINUED)
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS (CONTINUED) (NOTE 1)
--------- ---------------------------------- --------
$ 4,100,000 Yonkers IDA for Civic Consumers Union Facility, 1.08%,
7/1/21(a)............................................... $ 4,100,000
-----------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $195,876,515)............... 99.8% 195,876,515
OTHER ASSETS, LESS LIABILITIES...................... 0.2 487,095
-------- -----------------
NET ASSETS.......................................... 100.0% $ 196,363,610
======== =================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE BASED
ON 196,363,610 SHARES OF BENEFICIAL INTEREST,
$.001 PAR VALUE OUTSTANDING................................... $1.00
=================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<Page>
RESERVE TAX-EXEMPT TRUST--CALIFORNIA TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 2003 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--99.6% (NOTE 1)
--------- ----------------------------- --------
$ 485,000 Alameda Contra Costa Capital Improvements, Series A,
1.15%, 6/1/22(a)........................................ $ 485,000
495,000 Alameda Contra Costa Capital Improvements, Series F,
1.20%, 8/1/23(a)........................................ 495,000
1,000,000 Anaheim UHSD for Facilities Building Funding, 1.08%,
9/1/13(a)............................................... 1,000,000
3,800,000 California HFA for Adventist Health System, Series A,
1.05%, 9/1/25(a)........................................ 3,800,000
3,720,000 California Infrastructure & Economic Development, Series
A, 1.09%, 9/1/28(a)..................................... 3,720,000
1,070,000 California School Facilities for Capital Improvements,
Series C, 1.10%, 7/1/22(a).............................. 1,070,000
3,800,000 California Statewide for Catholic Community Development,
1.05%, 11/15/28(a)...................................... 3,800,000
5,100,000 California Statewide for Covenant Retirement Community,
1.10%, 12/1/25(a)....................................... 5,100,000
3,000,000 California Statewide for Early Education Community
Center COP, 1.15%, 9/1/31............................... 3,000,000
4,000,000 California Water Reserve Powersupply, 1.05%,
5/1/22(a)............................................... 4,000,000
1,800,000 California Water Supply, Series B-6, 1.07%, 5/1/22(a)... 1,800,000
7,500,000 California Water Supply, 1.08%-1.10%, 5/1/22(a)......... 7,500,000
500,000 Carlsbad USD for School Facility, 1.08%, 9/1/14(a)...... 500,000
2,500,000 Elsinore Valley for Water District, Series A, 1.07%,
7/1/29(a)............................................... 2,500,000
2,400,000 Fremont for Family Resource Center, Series 88-98, 1.25%,
8/1/28-8/1/30(a)........................................ 2,400,000
2,000,000 Fresno Sewer & Water, Series A, 1.07, 9/1/25(a)......... 2,000,000
500,000 Grant School Facility Building Fund, 1.08%, 9/1/25(a)... 500,000
1,000,000 Hemet MFHR for Sunwest Retirement, Series 99A, 1.08%,
1/1/25(a)............................................... 1,000,000
1,000,000 Irvine Assessment District 85-7, 1.08%, 9/2/11(a)....... 1,000,000
500,000 Irvine Assessment District 94-15, 1.05%, 9/2/20(a)...... 500,000
4,279,000 Irvine Assessment District 94-13, 1.07%, 9/2/22(a)...... 4,279,000
1,000,000 Irvine Assessment District 97-16, 1.07%, 9/2/22(a)...... 1,000,000
200,000 Irvine Assessment District 97-17, 1.05%, 9/2/23(a)...... 200,000
1,800,000 Irvine Assessment District 87-8, 1.07%, 9/2/24(a)....... 1,800,000
3,700,000 Irvine Assessment, Series A, 1.05%, 9/2/26(a)........... 3,700,000
1,900,000 Irvine Ranch Water District, 1.05%, 11/15/13(a)......... 1,900,000
1,600,000 Irvine Ranch Water District, 1.07%, 8/1/16(a)........... 1,600,000
900,000 Irvine Ranch Water District, 1.10%, 10/1/09(a).......... 900,000
900,000 Irvine Ranch Water District, Capital Improvements,
1.05%, 8/1/16(a)........................................ 900,000
15,000 Irvine Ranch Water District, Orange County, Series 85,
1.07%, 10/1/05(a)....................................... 15,000
500,000 Irvine Ranch Water District, Series B, 1.10%,
8/1/09(a)............................................... 500,000
1,600,000 Irvine Ranch Water District, Series 85B, 1.10%,
10/1/04(a).............................................. 1,600,000
800,000 Irvine Ranch Water District, Series 95, 1.05%, 1/1/21... 800,000
400,000 Irvine Ranch Water District, Series 140-240-105-250,
1.07%, 4/1/33(a)........................................ 400,000
900,000 Kern County, Series 86A, 1.07%, 8/1/06(a)............... 900,000
300,000 Los Angeles County for Willowbrook, 1.07%, 8/1/06(a).... 300,000
1,100,000 Los Angeles MFHR for Malibu Meadow Project, Series 91A,
1.08%, 4/15/28(a)....................................... 1,100,000
2,200,000 Orange County HDC for Capistrano Pointe-A Project,
1.08%, 12/1/29(a)....................................... 2,200,000
800,000 Orange County HDC for Florence Crittendoc Services,
1.07%, 3/1/16........................................... 800,000
1,000,000 Orange County HDC for Lakes Project, 1.08%,
12/1/06(a).............................................. 1,000,000
500,000 Orange County HDC for Trabuco Woods Project, 1.08%,
11/15/28(a)............................................. 500,000
4,500,000 Orange County Sanitation Authority, Series 93, 1.08%,
8/1/13(a)............................................... 4,500,000
1,700,000 Redlands USD School Facility, 1.08%, 9/1/34(a).......... 1,700,000
2,100,000 Riverside County Community Facilities District 88-4,
1.12%, 9/1/14(a)........................................ 2,100,000
600,000 Riverside County Housing Authority for Emirtus Park,
1.07%, 7/15/18(a)....................................... 600,000
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<Page>
RESERVE TAX-EXEMPT TRUST--CALIFORNIA TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 2003 (UNAUDITED) (CONTINUED)
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS (CONTINUED) (NOTE 1)
--------- ---------------------------------- --------
$ 400,000 Riverside County for Tyler Spring Apartments, Series C,
1.08%, 1/15/27(a)....................................... $ 400,000
1,000,000 Sacramento County MFHR, Series A, 1.08%, 4/1/26(a)...... 1,000,000
5,000,000 Sacramento County Sanitation District Financing
Authority, 1.07%, 12/1/30(a) ........................... 5,000,000
4,000,000 San Francisco Community Facilities for District 4,
1.04%, 8/1/31(a)........................................ 4,000,000
2,700,000 San Francisco MFHR for Filmore Center, Series B, 1.09%,
12/1/17(a).............................................. 2,700,000
800,000 San Leandro MFHR, 1.07%, 7/15/18........................ 800,000
1,560,000 Santa Ana Unified School District, 1.10%, 7/1/15........ 1,560,000
3,000,000 Turlock District Project, Series A, 1.08%, 1/1/31....... 3,000,000
-----------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $99,924,000)................ 99.6% 99,924,000
OTHER ASSETS, LESS LIABILITIES...................... 0.4 401,122
-------- -----------------
NET ASSETS.......................................... 100.0% $ 100,325,122
======== =================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE,
BASED ON 100,325,122 SHARES OF BENEFICIAL INTEREST,
$.001 PAR VALUE OUTSTANDING................................... $1.00
=================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<Page>
RESERVE TAX-EXEMPT TRUST--CONNECTICUT TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS--NOVEMBER 30, 2003 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--88.4% (NOTE 1)
--------- ----------------------------- --------
CONNECTICUT--81.2%
$1,200,000 Connecticut Development Authority for Independent Living
Project, 1.07%, 7/1/15(a) .................................... $ 1,200,000
2,250,000 Connecticut GO, Series 1A, 1.15%, 2/15/21(a).................. 2,250,000
1,200,000 Connecticut GO, Series 97B, 1.06%, 5/15/14(a)................. 1,200,000
1,150,000 Connecticut HEFA, Series A, 1.10%, 7/1/32(a).................. 1,150,000
800,000 Connecticut HEFA, Series X-3, 1.08%, 7/1/37(a)................ 800,000
1,200,000 Connecticut HEFA for Hotchkiss School, Series A, 1.05%,
7/1/30(a)..................................................... 1,200,000
400,000 Connecticut HEFA for Middlesex Hospital, 1.06%, 7/1/26(a)..... 400,000
1,000,000 Connecticut HEFA for Raphael Hospital, Series J, 1.03%,
7/1/22(a)..................................................... 1,000,000
1,200,000 Connecticut HEFA for Summerwood University, Series A, 1.03%,
7/1/30(a)..................................................... 1,200,000
450,000 Connecticut HEFA for United Methodist, 1.06%, 7/1/31(a)....... 450,000
1,100,000 Connecticut HEFA for Yale University, Series T-1, 1.08%,
7/1/29(a)..................................................... 1,100,000
1,200,000 Connecticut HFA, Program Mortgage, Series D3, 1.08%,
5/15/18(a).................................................... 1,200,000
2,200,000 Connecticut Special Tax Obligation for Transportation
Infrastructure, 1.12%, 9/1/20(a) ............................. 2,200,000
2,000,000 Hartford County Redev. Agency MHR for Underwood Towers
Project, 1.10%, 6/1/20(a) .................................... 2,000,000
2,045,000 New Canaan Housing Authority for Village at Waveny Care
Center, 1.08%, 1/1/22(a) ..................................... 2,045,000
500,000 North Canaan Housing Authority for Geer Woods, 1.06%,
8/1/31(a)..................................................... 500,000
450,000 Shelton County HFA for Crosby Commons Project, 1.11%,
1/1/31(a)..................................................... 450,000
----------------
20,345,000
----------------
PUERTO RICO--7.2%
1,200,000 Puerto Rico Governmental Development Bank, 1.01%,
12/1/15(a).................................................... 1,200,000
600,000 Puerto Rico Highway & Transportation Authority, Series A,
1.07%, 7/1/28(a) ............................................. 600,000
----------------
1,800,000
----------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $22,145,000)................ 88.4% 22,145,000
OTHER ASSETS, LESS LIABILITIES...................... 11.6 2,924,624
-------- ----------------
NET ASSETS.......................................... 100.0% $ 25,069,624
======== ================
</Table>
RESERVE TAX-EXEMPT TRUST--CONNECTICUT TAX-EXEMPT FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 2003 (UNAUDITED)
<Table>
<Caption>
ASSETS
Investments in securities, at value (Cost $22,145,000)........ $ 22,145,000
Cash.......................................................... 2,908,326
Interest receivable........................................... 17,842
----------------
Total Assets.................................................. 25,071,168
----------------
LIABILITIES
Accrued expenses.............................................. 1,544
----------------
Total Liabilities............................................. 1,544
----------------
NET ASSETS.................................................... $ 25,069,624
================
</Table>
<Table>
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE,
BASED ON 25,069,624 SHARES OF BENEFICIAL INTEREST,
$.001 PAR VALUE OUTSTANDING................................... $1.00
================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<Page>
RESERVE TAX-EXEMPT TRUST--FLORIDA TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 2003 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--98.4% (NOTE 1)
--------- ----------------------------- --------
FLORIDA--90.1%
$1,800,000 Broward County HFA for Jacaranda Village Apartments, 1.12%,
9/1/22(a)..................................................... $ 1,800,000
1,800,000 Broward County HFA for Margate Project, 1.12%, 11/1/05(a)..... 1,800,000
2,300,000 Collier County for Cleveland Health Clinic, 1.10%,
1/1/35(a)..................................................... 2,300,000
1,625,000 Dade County IDA for Dolphins Stadium, Project C, 1.12%,
1/1/16(a)..................................................... 1,625,000
1,800,000 Dade County Water Service, 1.04%, 10/5/22(a).................. 1,800,000
1,500,000 Duval County HFA MFH for Lighthouse Bay Apartments, 1.12%,
12/1/32(a).................................................... 1,500,000
1,800,000 Florida HFA for Kings Colony, 1.13%, 8/1/06(a)................ 1,800,000
1,000,000 Florida HFA for Reflections, Series 5, 1.10%, 7/1/31(b)....... 1,000,000
900,000 Florida HFA for River Oaks, Series 85TT, 1.10%, 12/1/29(a).... 900,000
450,000 Jacksonville PCR for Florida Power & Light, Series 95, 1.13%,
5/1/29(a)..................................................... 450,000
2,100,000 Lakeland County Energy System Revenue, 1.08%, 10/1/37(a)...... 2,100,000
1,800,000 Lakeland County Energy System Revenue, 1.08%, 10/1/35(a)...... 1,800,000
1,800,000 Lee County IDA HFA for Cypress Cove Healthpark, Series B,
1.17%, 10/1/07(a) ............................................ 1,800,000
1,465,000 Lee County IDA for Bonita Community Health Services, Series A,
1.12%, 12/1/29(a) ............................................ 1,465,000
2,200,000 Manatee County PCR for Florida Power & Light, 1.10%,
9/1/24(a)..................................................... 2,200,000
800,000 Orange County IDA for Adventist Health Care, 1.10%,
11/15/14(a)................................................... 800,000
350,000 Orange County YMCA, Series A, 1.15%, 5/1/27(a)................ 350,000
650,000 Palm Beach County for Norton Gallery School of Art, 1.12%,
5/1/30(a)..................................................... 650,000
1,000,000 Palm Beach County for Raymond F Kravis Center Project, 1.08%,
7/01/32(a).................................................... 1,000,000
850,000 Pinellas County Health Care Facility, 1.11%, 11/1/15(a)....... 850,000
1,000,000 Pinellas County MFH for Foxbridge Apartments, 1.05%,
6/15/25(a).................................................... 1,000,000
500,000 Polk County IDR for Convention Center, 1.15%, 1/1/11(a)....... 500,000
1,800,000 Port Orange for Palmer College Project, 1.10%, 10/1/32(a)..... 1,800,000
980,000 Putnam County PCR for Florida Power & Light, 1.10%,
9/1/24(a)..................................................... 980,000
150,000 Saint Lucie County IDR for Convalescent Centers, 1.15%,
1/1/11(a)..................................................... 150,000
500,000 Sarasota County HFF for Bay Village, 1.15%, 12/1/23(a)........ 500,000
300,000 Seminole County IDA HCF for Florida Living Nursing, 1.30%,
2/1/11(a)..................................................... 300,000
400,000 University of North Florida Capital Improvements Project,
1.15%, 11/1/24(a) ............................................ 400,000
655,000 Volusia County HEFA for South West Volusia Health, 1.11%,
11/15/23(a)................................................... 655,000
550,000 Volusia County IDR for Easter Seal Society of Volusia, 1.21%,
9/1/21(a)..................................................... 550,000
----------------
34,825,000
----------------
NEW YORK--8.3%
1,000,000 New York City Energy Research & Development Authority, 1.05%,
2/1/29(a)..................................................... 1,000,000
1,200,000 New York City GO, Series A8, 1.05%, 8/1/18(a)................. 1,200,000
1,000,000 New York City Water Financial Authority, WSR, Series A, 1.08%,
6/15/25(a) ................................................... 1,000,000
----------------
3,200,000
----------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $38,025,000)................ 98.4% 38,025,000
OTHER ASSETS, LESS LIABILITIES...................... 1.6 605,220
-------- ----------------
NET ASSETS.......................................... 100.0% $ 38,630,220
======== ================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE,
BASED ON 38,630,220 SHARES OF BENEFICIAL INTEREST,
$.001 PAR VALUE OUTSTANDING................................... $1.00
================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<Page>
RESERVE TAX-EXEMPT TRUST--MASSACHUSETTS TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 2003 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--98.8% (NOTE 1)
--------- ----------------------------- --------
$1,630,000 Massachusetts DFA for Bedford Notre Dame Health Care, 1.19%,
10/1/29(a).................................................... $ 1,630,000
900,000 Massachusetts DFA for Jewish High School Project, 1.08%,
6/1/32(a)..................................................... 900,000
900,000 Massachusetts DFA for Smith College, 1.12%, 7/1/24(a)......... 900,000
900,000 Massachusetts DFA IDR for Ocean Spray Cranberries, 1.08%,
10/15/11(a)................................................... 900,000
850,000 Massachusetts GO, Series B, 1.10%, 9/1/16(a).................. 850,000
900,000 Massachusetts HEFA, Series J2, 1.05%, 7/1/31(a)............... 900,000
200,000 Massachusetts HEFA for Becker College, Series A-2, 1.10%,
7/1/09(a)..................................................... 200,000
600,000 Massachusetts HEFA for Berklee College, 1.05%, 10/1/27(a)..... 600,000
900,000 Massachusetts HEFA for Boston University, Series 85, 1.04%,
12/1/29(a).................................................... 900,000
1,000,000 Massachusetts HEFA for Capital Asset Program, Series E, 1.05%,
1/1/35(a)..................................................... 1,000,000
900,000 Massachusetts HEFA for Falmouth Assisted Living, Series D,
1.10%, 11/1/26(a)............................................. 900,000
900,000 Massachusetts HEFA for Harvard University, Series Y, 1.05%,
7/1/35(a)..................................................... 900,000
1,700,000 Massachusetts HEFA for University of Massachusetts, Series A,
1.08%, 11/1/30(a)............................................. 1,700,000
900,000 Massachusetts HEFA for Wellesley College, Series E, 1.08%,
7/1/22(a)..................................................... 900,000
900,000 Massachusetts HEFA for Williams College, Series E, 1.02%,
8/1/14(a)..................................................... 900,000
900,000 Massachusetts HFA for Multifamily Housing, 1.08%,
1/15/10(a).................................................... 900,000
700,000 Massachusetts IFA for Lowell Mills Association, Series 95,
1.10%, 12/1/20(a)............................................. 700,000
200,000 Massachusetts WRA, Series B, 1.10%, 4/1/28(a)................. 200,000
900,000 Massachusetts WRA, Series C, 0.95%, 8/1/20(a)................. 900,000
700,000 Massachusetts WRA, Series D, 1.10%, 4/1/28(a)................. 700,000
800,000 Massachusetts WRA, Series D, 1.04%, 8/1/17(a)................. 800,000
----------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $18,280,000)................ 98.8% 18,280,000
OTHER ASSETS, LESS LIABILITIES...................... 1.2 216,730
-------- ----------------
NET ASSETS.......................................... 100.0% $ 18,496,730
======== ================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE,
BASED ON 18,496,730 SHARES OF BENEFICIAL INTEREST,
$.001 PAR VALUE OUTSTANDING................................... $1.00
================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<Page>
RESERVE TAX-EXEMPT TRUST--MICHIGAN TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS--NOVEMBER 30, 2003 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--95.2% (NOTE 1)
--------- ----------------------------- --------
MICHIGAN--87.8%
$ 300,000 Detroit EDC for Water Front Reclamation, Series-A, 1.10%,
5/1/09(a)..................................................... $ 300,000
125,000 Detroit EDC for Water Front Reclamation, Series C, 1.20%,
5/1/09(a)..................................................... 125,000
300,000 Garden City Hospital Finance Authority, Series 96A, 1.13%,
9/1/26(a)..................................................... 300,000
100,000 Gaylord, Otsego Memorial Hospital, 1.12%, 12/1/26(a).......... 100,000
300,000 Green Lake Township EDA for Interlocken Center Arts, 1.12%,
6/1/27(a)..................................................... 300,000
200,000 Jackson County EDC for Thrifty Leoni Inc. Project, 1.13%,
12/1/14(a).................................................... 200,000
600,000 Jackson County for Vista Grande Villa, Series A, 1.10%,
11/1/31(a).................................................... 600,000
600,000 Michigan Building Authority for Multi Modual Facilities
Program II, 1.10%, 10/15/36(a)................................ 600,000
300,000 Michigan EDC for Municipal Bond Authority, Series B, 1.03%,
8/23/04(a).................................................... 302,098
600,000 Michigan HDA for Pine Ridge Oblig Ltd., 1.12%, 10/1/07(a)..... 600,000
100,000 Michigan HDA for Harbortown, 1.24%, 6/1/04(a)................. 100,000
300,000 Michigan HDA for Rental Housing, Series B, 1.12%, 4/1/19(a)... 300,000
300,000 Michigan Job Development Authority for Wyandotte Court, 1.10%,
12/1/09(a) ................................................... 300,000
600,000 Michigan State University Revenue, Series A, 1.08%,
8/15/32(a).................................................... 600,000
300,000 Michigan Strategic Fund for Peachwood Center Association,
1.10%, 6/1/16(a) ............................................. 300,000
600,000 Michigan Strategic Fund for Henry Ford Museum Village Project,
1.10%, 12/1/33(a) ............................................ 600,000
300,000 Oakland University, 1.12%, 3/1/31(a).......................... 300,000
---------------
5,927,098
---------------
PUERTO RICO--7.4%
300,000.00 Puerto Rico Governmental Development Bank, 1.01%,
12/1/15(a).................................................... 300,000
200,000.00 Puerto Rico Highway & Transportation Authority, Series A,
1.07%, 7/1/28(a) ............................................. 200,000
---------------
500,000
---------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $6,427,098)................. 95.2% $ 6,427,098
OTHER ASSETS, LESS LIABILITIES...................... 4.8 330,179
-------- ---------------
NET ASSETS.......................................... 100.0% $ 6,757,277
======== ===============
</Table>
RESERVE TAX-EXEMPT TRUST--MICHIGAN TAX-EXEMPT FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 2003 (UNAUDITED)
<Table>
<Caption>
ASSETS
Investments in securities, at value (Cost $6,427,098)......... $ 6,427,098
Cash.......................................................... 323,848
Interest receivable........................................... 6,851
---------------
Total Assets.................................................. 6,757,797
---------------
LIABILITIES
Accrued Expenses.............................................. 520
---------------
Total Liabilities............................................. 520
---------------
NET ASSETS.................................................... $ 6,757,277
===============
</Table>
<Table>
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE,
BASED ON 6,757,277 SHARES OF BENEFICIAL INTEREST,
$.001 PAR VALUE OUTSTANDING................................... $1.00
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<Page>
RESERVE TAX-EXEMPT TRUST--NEW JERSEY TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 2003 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--99.2% (NOTE 1)
--------- ----------------------------- --------
NEW JERSEY--99.2%
$2,450,000 Atlantic County Pooled Government Loan Program, 1.10%,
7/1/26(a)..................................................... $ 2,450,000
3,200,000 Camden County Improvement Authority for Village Harvest,
1.07%, 7/1/29(a) ............................................. 3,200,000
500,000 Essex County Improvement Authority for the Children's
Institute, 1.18%, 2/1/20(a) .................................. 500,000
2,475,000 Jersey City Redevelopment Authority for Dixon Mills
Apartments, 1.10%, 5/15/30(a) ................................ 2,475,000
550,000 New Jersey EDA, Series CC, 1.22%, 12/1/09(a).................. 550,000
2,500,000 New Jersey EDA for Bayonne/IMTT Project, Series A, B & C,
1.08%, 12/1/27(a) ............................................ 2,500,000
575,000 New Jersey EDA for Catholic Community Services, 1.18%,
11/1/13(a).................................................... 575,000
2,450,000 New Jersey EDA for Church & Dwight, 0.98%, 12/1/08(a)......... 2,450,000
2,200,000 New Jersey EDA for Crowley Liner, 1.08%, 4/1/13(a)............ 2,200,000
450,000 New Jersey EDA for Economic Growth, Series F, 1.10%,
8/1/14(a)..................................................... 450,000
5,100,000 New Jersey EDA for Foreign Trade, Series 98, 1.10%,
12/1/07(a).................................................... 5,100,000
2,450,000 New Jersey EDA for Geriatric Services Housing, 1.08%,
11/1/31(a).................................................... 2,450,000
4,200,000 New Jersey EDA for International Drive Partner, 1.07%,
9/1/05(a)..................................................... 4,200,000
2,200,000 New Jersey EDA for Presbyterian, Series C, 1.05%,
11/1/11(a).................................................... 2,200,000
1,500,000 New Jersey EDA for Princeton University, Series B, 1.03%,
7/1/21(a)..................................................... 1,500,000
1,395,000 New Jersey EDA for RJB Associates, Economic Recovery Notes,
1.05%, 8/1/08(a) ............................................. 1,395,000
2,700,000 New Jersey EDA for Stolthaven Perth Amboy, 1.00%,
1/15/18(a).................................................... 2,700,000
555,000 New Jersey EDA for US Golf Association, 1.05%, 5/1/23(a)...... 555,000
3,500,000 New Jersey EFA for Princeton University, Series B, 1.05%,
7/1/22(a)..................................................... 3,500,000
700,000 New Jersey HCF for Christ Hospital, Series A-2, 1.05%,
7/1/13(a)..................................................... 700,000
1,400,000 New Jersey HCF for Community Hospital Group, Series A1, 1.08%,
7/1/20(a)..................................................... 1,400,000
400,000 New Jersey HCF for Hospital Capital Asset, Series C, 1.08%,
7/1/35(a)..................................................... 400,000
1,330,000 New Jersey HCF for Saint Barnabas, Series 2001A, 1.08%,
7/1/31(a)..................................................... 1,330,000
1,300,000 New Jersey HCF for Series A-3, 1.07%, 7/1/21(a)............... 1,300,000
2,500,000 New Jersey Sports Authority Expo, Series C, 1.08%,
9/1/24(a)..................................................... 2,500,000
2,450,000 New Jersey Turnpike Authority, Series 91D, 1.05%, 1/1/18(a)... 2,450,000
-----------
</Table>
<Table>
TOTAL INVESTMENTS (COST $51,030,000)................ 99.2% 51,030,000
OTHER ASSETS, LESS LIABILITIES...................... 0.8 386,364
-------- -----------
NET ASSETS.......................................... 100.0% $51,416,364
======== ===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE,
BASED ON 51,416,364 SHARES OF BENEFICIAL INTEREST,
$.001 PAR VALUE OUTSTANDING................................... $1.00
===========
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<Page>
RESERVE TAX-EXEMPT TRUST--OHIO TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 2003 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATION--99.4% (NOTE 1)
--------- ---------------------------- --------
$ 375,000 Allen County HCF for Mennonite Home Project, 1.15%,
2/1/18(a)............................................... $ 375,000
550,000 Butler County HCF for Lifesphere Project, 1.10%,
5/1/27(a)............................................... 550,000
700,000 Centerville Health for Bethany Lutheran Church, 1.13%,
5/1/08(a)............................................... 700,000
500,000 Cleveland Airport Systems, Series C, 1.05%, 1/1/31(a)... 500,000
500,000 Cleveland Income Tax Revenue, 1.03%, 5/15/24(a)......... 500,000
195,000 Cuyahoga County EDA for the Cleveland Orchestra Project,
1.10%, 4/1/28(a) ....................................... 195,000
1,100,000 Cuyahoga County HRB for Cleveland Botanical, 1.13%,
7/1/31(a)............................................... 1,100,000
500,000 Cuyahoga County HRB for Cleveland Clinic, 1.10%,
1/1/35(a)............................................... 500,000
700,000 Cuyahoga County HRB for Cleveland Health Education
Museum, 1.15%, 3/1/32(a) ............................... 700,000
300,000 Delaware County IDR for Radiation Sterilizers, 1.10%,
12/1/04(a).............................................. 300,000
1,100,000 Evandale County IDR for SHV Real Estate Inc., 1.14%,
9/1/15(a)............................................... 1,100,000
200,000 Franklin County Community Housing Network, 1.12%,
12/1/20(a).............................................. 200,000
500,000 Green County IDA for Fairview, 1.10%, 1/1/11(a)......... 500,000
500,000 Hamilton County HRB for Alliance Health, Series A,
1.03%, 1/1/18(a)........................................ 500,000
300,000 Indian Hill EDA for Cincinnati Country Day School,
1.15%, 5/1/19(a)........................................ 300,000
550,000 Licking County for Health Care, 1.15%, 11/1/33(a)....... 550,000
300,000 Lorain County Independent Living for Elyria United
Methodist, 1.12%, 6/1/22(a) ............................ 300,000
350,000 Lucas County for Toledo Project, 1.15%, 10/1/05(a)...... 350,000
15,000 Ohio Air Quality DAR for Cincinnati Gas, Series B,
1.05%, 11/1/25(a)....................................... 15,000
100,000 Ohio Air Quality DAR for Edison, Series A, 1.12%,
2/1/14(a)............................................... 100,000
400,000 Ohio Air Quality DAR for Edison, Series C, 1.10%,
6/1/23(a)............................................... 400,000
485,000 Ohio Air Quality DAR for Timken Project, 1.00%,
11/1/25(a).............................................. 485,000
550,000 Ohio WDA PCR for Cleveland Electric, Series B, 1.10%,
8/1/20(a)............................................... 550,000
200,000 Ottawa County HRB for Lutheran Home of Mercy, 1.16%,
10/1/17(a).............................................. 200,000
----------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $10,970,000)................ 99.4% 10,970,000
OTHER ASSETS, LESS LIABILITIES...................... 0.6 63,617
-------- ----------------
NET ASSETS.......................................... 100.0% $ 11,033,617
======== ================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE BASED
ON 11,033,617 SHARES OF BENEFICIAL INTEREST,
$.001 PAR VALUE OUTSTANDING................................... $1.00
================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<Page>
RESERVE TAX-EXEMPT TRUST--PENNSYLVANIA TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--NOVEMBER 30, 2003 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--99.5% (NOTE 1)
--------- ----------------------------- --------
$1,000,000 Allegheny HDA for Health Care Dialysis Clinic, 1.10%,
12/1/19(a).................................................... $ 1,000,000
1,780,000 Allegheny HDA for Presbyterian University Hospital, Series B3,
1.15%, 3/1/18(a) ............................................. 1,780,000
200,000 Berks County IDR for Visiting Nurse Services, 1.15%,
12/1/15(a).................................................... 200,000
835,000 Berks County IDR for Visiting Nurse Services, 1.36%,
12/1/15(a).................................................... 835,000
2,200,000 Blair County IDR for Village of Penn State, Series C, 1.03%,
1/1/11(a)..................................................... 2,200,000
2,900,000 Bucks County IDA, 1.10%, 5/1/33(a)............................ 2,900,000
2,200,000 Bucks County IDA for SHV Real Estate Inc., 1.15%, 7/1/15(a)... 2,200,000
1,300,000 Chester County HEFA, 1.12%, 10/1/30(a)........................ 1,300,000
150,000 Chester County IDA, 1.10%, 7/1/31(a).......................... 150,000
1,000,000 Delaware County IDA for Scottfoam Corp., 1.10%, 10/1/05(a).... 1,000,000
1,200,000 Delaware County IDR for Sun, Inc., 1.10%, 11/1/33(a).......... 1,200,000
500,000 Delaware Valley Finance Authority, Series 85A, 1.08%,
12/1/19(a).................................................... 500,000
200,000 Delaware Valley Finance Authority, Series A, 1.08%,
12/1/17(a).................................................... 200,000
1,500,000 Delaware Valley Finance Authority, Series B, 1.08%,
12/1/20(a).................................................... 1,500,000
1,400,000 Emmaus General Authority, 1.13%, 3/1/24(a).................... 1,400,000
2,200,000 Lancaster County HRB for Brethren Village, 1.15%,
6/15/20(a).................................................... 2,200,000
2,200,000 Lebanon County HCF for ECC Retirement Village, 1.15%,
10/15/25(a)................................................... 2,200,000
2,200,000 Lehigh County PCR for Allegheny Electric Inc., Series A,
1.15%, 12/01/15(a) ........................................... 2,200,000
2,200,000 Montgomery County for Multifamily Housing, Series A, 1.10%,
8/15/31(a).................................................... 2,200,000
200,000 Montgomery County Higher Education & Health Authority, 1.15%,
9/15/31(a).................................................... 200,000
430,000 Montgomery County IDR for Girl Scouts, 1.21%, 2/1/25(a)....... 430,000
1,900,000 Pennsylvania HEFA for Temple University, 1.08%, 10/1/09(a).... 1,900,000
1,545,000 Philadelphia Housing Revenue Authority, Series A, 1.16%,
6/1/25(a)..................................................... 1,545,000
3,000,000 Philadelphia IDR for Fox Chase Cancer Center Project, 1.10%,
7/1/25(a)..................................................... 3,000,000
1,140,000 Philadelphia IDR for Interim House West Project, 1.21%,
9/1/26(a)..................................................... 1,140,000
100,000 Quakertown Hospital Authority Revenue, 1.10%, 7/1/05(a)....... 100,000
3,700,000 Schuylkill County IDA for Northeastern Power, 1.10%,
12/1/22(a).................................................... 3,700,000
1,900,000 Scranton-Lackawanna Health & Welfare Authority for Univ. of
Scranton, RAW, 1.05%, 5/1/18(b) .............................. 1,900,000
4,435,000 Wilkins Area IDA for Fairview Extended Services Care, Series
B, 1.10%, 1/1/21(a) .......................................... 4,435,000
-----------
</Table>
<Table>
TOTAL INVESTMENTS (COST $45,515,000)................ 99.5% 45,515,000
OTHER ASSETS, LESS LIABILITIES...................... 0.5 248,593
-------- -----------
NET ASSETS.......................................... 100.0% $45,763,593
======== ===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE,
BASED ON 45,763,593 SHARES OF BENEFICIAL INTEREST,
$.001 PAR VALUE OUTSTANDING................................... $1.00
===========
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<Page>
RESERVE TAX-EXEMPT TRUST--VIRGINIA TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS--NOVEMBER 30, 2003 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--76.2% (NOTE 1)
--------- ----------------------------- --------
VIRGINIA--71.1%
$ 700,000 Alexandria IDA, Pooled Loan Program, Series A, 1.10%,
7/1/26(a)..................................................... $ 700,000
800,000 Alexandria Redevelopment & Housing Authority for Goodwill
House, 1.02%, 10/1/06(a)...................................... 800,000
600,000 Arlington County for Ballston Public Parking, 1.10%,
8/1/17(a)..................................................... 600,000
600,000 Chesapeake Hospital Authority IDA for Chesapeake General
Hospital, Series B, 1.15%, 7/1/31(a).......................... 600,000
700,000 Hampton MFHR for Avalon, 1.08%, 6/15/26(a).................... 700,000
1,200,000 Hampton MFHR for Shoreline Apartments, 1.10%, 12/1/19(a)...... 1,200,000
700,000 Loudoun County IDA for Falcons Landing, 1.08%, 11/1/28(a)..... 700,000
500,000 Norfolk IDA for Hospital Facilities-Children Project, 1.10%,
6/1/20(a)..................................................... 500,000
1,400,000 Peninsula Port Authority for Dominion Terminal, 1.03 - 1.11%,
7/1/16(a)..................................................... 1,400,000
600,000 Richmond IDR for Church Schools, 1.07%, 12/1/31(a)............ 600,000
1,300,000 Roanoke IDA for Carilion Health Systems, 1.10%, 7/1/27(a)..... 1,300,000
700,000 Virginia College Building Authority for University of
Richmond, 1.07%, 6/1/34(a).................................... 700,000
----------------
9,800,000
----------------
PUERTO RICO--5.1%
700,000 Puerto Rico Highway & Transportation Authority, Series A,
1.07%, 7/1/28(a).............................................. 700,000
----------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $10,500,000)................ 76.2% 10,500,000
OTHER ASSETS, LESS LIABILITIES...................... 23.8 3,284,361
-------- ----------------
NET ASSETS.......................................... 100.0% $ 13,784,361
======== ================
</Table>
RESERVE TAX-EXEMPT TRUST--VIRGINIA TAX-EXEMPT FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 2003 (UNAUDITED)
<Table>
<Caption>
ASSETS
Investments in securities, at value (Cost $10,500,000)........ $ 10,500,000
Cash.......................................................... 3,275,570
Interest receivable........................................... 9,595
Prepaid expense............................................... 72
----------------
Total Assets.................................................. 13,785,237
----------------
LIABILITIES
Accrued expenses.............................................. 876
----------------
Total liabilities............................................. 876
----------------
NET ASSETS.................................................... $ 13,784,361
================
</Table>
<Table>
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE,
BASED ON 13,784,361 SHARES OF BENEFICIAL INTEREST,
$.001 PAR VALUE OUTSTANDING................................... $1.00
================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<Page>
RESERVE MUNICIPAL MONEY-MARKET TRUST--LOUISIANA MUNICIPAL MONEY-MARKET FUND
SCHEDULE OF INVESTMENTS--NOVEMBER 30, 2003 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--50.7% (NOTE 1)
--------- ----------------------------- --------
LOUISIANA--33.8%
$ 7,000 East Baton Rouge for Rhone-Poulenc Inc. Project, 1.10%,
12/1/11(a).................................................... $ 7,000
7,000 Lake Charles District Revenue for Conoco Project, Series A,
1.12%, 9/1/29(a) ............................................. 7,000
14,000 Louisiana Public Facilities Authority for Kenner Hotel
Limited, 1.05%,12/1/15(a) .................................... 14,000
14,000 Louisiana State University Agriculture & Mechanical College,
1.12%, 7/1/30(a) ............................................. 14,000
14,000 South Louisiana Port Authority for Marine Terminal, 1.10%,
7/1/21(a)..................................................... 14,000
-------------
56,000
-------------
PUERTO RICO--16.9%
14,000 Puerto Rico Governmental Development Bank, 1.01%,
12/1/15(a).................................................... 14,000
14,000 Puerto Rico Highway & Transportation Authority, Series A,
1.07%, 07/1/28(a)............................................. 14,000
-------------
28,000
-------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $84,000).................... 50.7% 84,000
OTHER ASSETS, LESS LIABILITIES...................... 49.3 81,716
-------- -------------
NET ASSETS.......................................... 100.0% $ 165,716
======== =============
</Table>
RESERVE MUNICIPAL MONEY-MARKET TRUST--LOUISIANA MUNICIPAL MONEY-MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 2003 (UNAUDITED)
<Table>
<Caption>
ASSETS
Investments in securities, at value (Cost $84,000)............ $ 84,000
Cash.......................................................... 81,618
Interest receivable........................................... 98
-------------
Total Assets.................................................. 165,716
-------------
NET ASSETS.................................................... $ 165,716
=============
</Table>
<Table>
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE,
BASED ON 165,716 SHARES OF BENEFICIAL INTEREST,
$.0001 PAR VALUE OUTSTANDING.................................. $1.00
=============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<Page>
RESERVE MUNICIPAL MONEY-MARKET TRUST--MINNESOTA MUNICIPAL MONEY-MARKET FUND
SCHEDULE OF INVESTMENTS--NOVEMBER 30, 2003 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--66.7% (NOTE 1)
--------- ----------------------------- --------
MINNESOTA--48.5%
$15,000 Beltrami County for Northwood Panelboard, 1.05%, 12/1/21(a)... $ 15,000
15,000 Brooklyn Center for Brookdale Corp. II Project, 1.15%,
12/1/14(a).................................................... 15,000
15,000 City of Brighton for Unicare Homes, 1.13%, 12/1/14(a)......... 15,000
15,000 Cohasset for Minnesota Power & Light, 1.10%, 6/1/13(a)........ 15,000
20,000 Duluth Tax for Lake Superior Paper, 1.10%, 9/1/10(a).......... 20,000
15,000 Hennepin County, Series B, 1.00%, 12/1/20(a).................. 15,000
30,000 Hennepin County, Series C, 1.00%, 12/1/10(a).................. 30,000
10,000 Mankato for Bethany Lutheran College, 1.15%, 11/1/15(a)....... 10,000
10,000 Minnesota Higher Education for Saint Olaf College, 1.10%,
10/1/30(a).................................................... 10,000
15,000 University of Minnesota, Series A, 1.15%, 7/1/08(a)........... 15,000
-------------
160,000
-------------
PUERTO RICO--18.2%
30,000 Puerto Rico Governmental Development Bank, 1.01%,
12/1/15(a).................................................... 30,000
30,000 Puerto Rico Highway & Transportation Authority, Series A,
1.07%, 7/1/28(a).............................................. 30,000
-------------
60,000
-------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $220,000)................... 66.7% 220,000
OTHER ASSETS, LESS LIABILITIES...................... 33.3 109,789
-------- -------------
NET ASSETS.......................................... 100.0% $ 329,789
======== =============
</Table>
RESERVE MUNICIPAL MONEY-MARKET TRUST--MINNESOTA MUNICIPAL MONEY-MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 2003 (UNAUDITED)
<Table>
<Caption>
ASSETS
Investments in securities, at value (Cost $220,000)........... $ 220,000
Cash.......................................................... 109,617
Interest receivable........................................... 172
-------------
Total Assets.................................................. 329,789
-------------
NET ASSETS.................................................... $ 329,789
=============
</Table>
<Table>
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE,
BASED ON 329,789 SHARES OF BENEFICIAL INTEREST,
$.0001 PAR VALUE OUTSTANDING.................................. $1.00
=============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<Page>
SECURITY TYPE ABBREVIATIONS
<Table>
COP -- Certificate of Participation HRB -- Hospital Revenue Bonds
IDA -- Industrial Development Authority Revenue
DAR -- Development Authority Revenue Bonds Bonds
DFA -- Development Finance Agency IDR -- Industrial Development Agency Revenue Bonds
EDA -- Economic Development Authority Revenue Bonds IFA -- Industrial Finance Authority
EDC -- Economic Development Corporation MFH -- Multi-family Housing Revenue Bonds
EFA -- Education Facilities Authority MFHR -- Multi-family Facilities Housing Revenue Bonds
GO -- General Obligation MWFA -- Municipal Water Finance Authority
HCF -- Health Care Facilities Revenue Bonds PCR -- Pollution Control Revenue Bonds
HDA -- Hospital Development Authority RAW -- Revenue Anticipation Warrants
HDC -- Housing Development Corporation Bonds USD -- Union School District
HEFA -- Health & Education Facilities Authority WDA -- Water Development Authority
HFA -- Housing Finance Authority Revenue Bonds WRA -- Water Resource Authority
WSR -- Water & Sewer System Revenue Bonds
</Table>
- -----------------
(a) Variable rate securities. The interest rates, as reported on November 30,
2003, are subject to change periodically. Securities are payable on demand
and are collateralized by bank letters of credit or other credit
agreements.
(b) Securities are collateralized by bank letters of credit or other credit
agreements.
SEE NOTES TO FINANCIAL STATEMENTS.
16
<Page>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 2003 (UNAUDITED)
<Table>
<Caption>
RESERVE NEW YORK
TAX-EXEMPT TRUST RESERVE TAX-EXEMPT TRUST
---------------- -------------------------------------------------
NEW YORK CALIFORNIA CONNECTICUT FLORIDA MASSACHUSETTS
FUND FUND FUND FUND FUND
---------------- ---------- ----------- --------- -------------
INTEREST INCOME (Note
1)..................... $1,041,579 $487,707 $147,154 $203,096 $ 89,885
---------- -------- -------- -------- --------
EXPENSES (Note 2)
Comprehensive
management fees...... 930,702 424,646 131,780 173,422 78,964
Distribution (12b-1)
fees................. 232,676 106,161 32,945 43,355 19,741
Trustee fees........... 473 226 76 96 44
---------- -------- -------- -------- --------
Total expenses before
waiver............. 1,163,851 531,033 164,801 216,873 98,749
Less: expenses waived
(Note 2)............. (193,391) (78,843) (28,081) (28,210) (14,925)
---------- -------- -------- -------- --------
Net Expenses......... 970,460 452,190 136,720 188,663 83,824
---------- -------- -------- -------- --------
NET INVESTMENT INCOME,
representing Net
Increase in Net Assets
from Investment
Operations............. $ 71,119 $ 35,517 $ 10,434 $ 14,433 $ 6,061
========== ======== ======== ======== ========
</Table>
<Table>
<Caption>
RESERVE TAX-EXEMPT TRUST
-----------------------------------------------------
MICHIGAN NEW JERSEY OHIO PENNSYLVANIA VIRGINIA
FUND FUND FUND FUND FUND
-------- ---------- ------- ------------ --------
INTEREST INCOME (Note
1)..................... $34,347 $244,243 $58,428 $209,225 $50,696
------- -------- ------- -------- -------
EXPENSES (Note 2)
Comprehensive
management fees...... 30,303 217,376 49,497 174,010 46,142
Distribution (12b-1)
fees................. 7,576 54,344 12,374 43,502 11,536
Trustee fees........... 18 116 178 85 24
------- -------- ------- -------- -------
Total expenses before
waiver............. 37,897 271,836 62,049 217,597 57,702
Less: expenses waived
(Note 2)............. (5,905) (44,198) (7,533) (23,626) (10,615)
------- -------- ------- -------- -------
Net Expenses......... 31,992 227,638 54,516 193,971 47,087
------- -------- ------- -------- -------
NET INVESTMENT INCOME,
representing Net
Increase in Net Assets
from Investment
Operations............. $ 2,355 $ 16,605 $ 3,912 $ 15,254 $ 3,609
======= ======== ======= ======== =======
</Table>
<Table>
<Caption>
RESERVE MUNICIPAL
MONEY-MARKET TRUST
--------------------
LOUISIANA MINNESOTA
FUND FUND
--------- ---------
INTEREST INCOME (Note 1)................ $ 486 $1,111
----- ------
EXPENSES (Note 2)
Comprehensive management fees......... 637 1,167
Distribution (12b-1) fees............. 159 292
Trustee fees.......................... 1 1
----- ------
Total expenses...................... 797 1,460
Less: expenses waived (Note 2)........ (370) (454)
----- ------
Net Expenses........................ 427 1,006
----- ------
NET INVESTMENT INCOME, representing net
increase in Net Assets from Investment
Operations............................ $ 59 $ 105
===== ======
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<Page>
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
<Table>
<Caption>
RESERVE NEW YORK
TAX-EXEMPT TRUST RESERVE TAX-EXEMPT TRUST
---------------------------- ---------------------------------------------------------
NEW YORK FUND CALIFORNIA FUND CONNECTICUT FUND
---------------------------- ---------------------------- ---------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
2003 2003 2003 2003 2003 2003
------------- ------------- ------------- ------------- ------------- ------------
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment
income............... $ 71,119 $ 794,443 $ 35,517 $ 368,395 $ 10,434 $ 94,365
------------- ------------- ------------- ------------- ------------ ------------
DIVIDENDS PAID TO SHAREHOLDERS FROM:
Net investment income
(Note 1)............. (71,119) (794,443) (35,517) (368,395) (10,434) (94,365)
------------- ------------- ------------- ------------- ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00 per share):
Proceeds from sale of
shares............... 338,829,340 592,663,728 247,650,460 392,076,216 44,264,156 68,379,658
Dividends reinvested... 71,119 794,443 35,517 368,395 10,434 94,365
Cost of shares
redeemed............. (370,949,864) (599,479,326) (256,353,621) (392,783,651) (55,588,176) (73,337,022)
------------- ------------- ------------- ------------- ------------ ------------
(32,049,405) (6,021,155) (8,667,644) (339,040) (11,313,586) (4,862,999)
------------- ------------- ------------- ------------- ------------ ------------
Net decrease in net
assets............... (32,049,405) (6,021,155) (8,667,644) (339,040) (11,313,586) (4,862,999)
NET ASSETS:
Beginning of period.... 228,413,015 234,434,170 108,992,766 109,331,806 36,383,210 41,246,209
------------- ------------- ------------- ------------- ------------ ------------
End of period.......... $196,363,610 $ 228,413,015 $100,325,122 $ 108,992,766 $ 25,069,624 $ 36,383,210
============= ============= ============= ============= ============ ============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<Page>
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
<Table>
<Caption>
RESERVE TAX-EXEMPT TRUST
--------------------------------------------------------------------------------------
FLORIDA FUND MASSACHUSETTS FUND MICHIGAN FUND
---------------------------- --------------------------- ---------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
2003 2003 2003 2003 2003 2003
------------- ------------- ------------- ------------ ------------- ------------
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment
income............... $ 14,433 $ 127,808 $ 6,061 $ 67,704 $ 2,355 $ 26,960
------------ ------------- ------------ ------------ ------------ ------------
DIVIDENDS PAID TO SHAREHOLDERS FROM:
Net investment income
(Note 1)............. (14,433) (127,808) (6,061) (67,704) (2,355) (26,960)
------------ ------------- ------------ ------------ ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00 per share):
Proceeds from sale of
shares............... 77,582,178 145,621,862 36,496,059 61,356,637 18,109,082 35,519,672
Dividends reinvested... 14,433 127,808 6,061 67,704 2,355 26,960
Cost of shares
redeemed............. (84,841,686) (131,964,326) (38,784,044) (61,605,935) (19,212,203) (36,203,291)
------------ ------------- ------------ ------------ ------------ ------------
(7,245,075) 13,785,344 (2,281,924) (181,594) (1,100,766) (656,659)
------------ ------------- ------------ ------------ ------------ ------------
Net increase (decrease)
in net assets........ (7,245,075) 13,785,344 (2,281,924) (181,594) (1,100,766) (656,659)
NET ASSETS:
Beginning of period.... 45,875,295 32,089,951 20,778,654 20,960,248 7,858,043 8,514,702
------------ ------------- ------------ ------------ ------------ ------------
End of period.......... $ 38,630,220 $ 45,875,295 $ 18,496,730 $ 20,778,654 $ 6,757,277 $ 7,858,043
============ ============= ============ ============ ============ ============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<Page>
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
<Table>
<Caption>
RESERVE TAX-EXEMPT TRUST
---------------------------------------------------------------------------------------
NEW JERSEY FUND OHIO FUND PENNSYLVANIA FUND
---------------------------- --------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
2003 2003 2003 2003 2003 2003
------------- ------------- ------------- ------------ ------------- -------------
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income................. $ 16,605 $ 163,613 $ 3,912 $ 28,268 $ 15,254 $ 145,481
------------ ------------- ------------ ------------ ------------ -------------
DIVIDENDS PAID TO SHAREHOLDERS FROM:
Net investment income
(Note 1)............................ (16,605) (163,613) (3,912) (28,268) (15,254) (145,481)
------------ ------------- ------------ ------------ ------------ -------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00 per share):
Proceeds from sale of shares.......... 91,711,341 152,886,030 27,664,950 39,006,284 72,012,551 109,365,156
Dividends reinvested.................. 16,605 163,613 3,912 28,268 15,254 145,481
Cost of shares redeemed............... (96,332,929) (154,556,551) (27,045,158) (34,280,515) (66,856,547) (120,377,989)
------------ ------------- ------------ ------------ ------------ -------------
(4,604,983) (1,506,908) 623,704 4,754,037 5,171,258 (10,867,352)
------------ ------------- ------------ ------------ ------------ -------------
Net increase (decrease) in net
assets.............................. (4,604,983) (1,506,908) 623,704 4,754,037 5,171,258 (10,867,352)
NET ASSETS:
Beginning of period................... 56,021,347 57,528,255 10,409,913 5,655,876 40,592,335 51,459,687
------------ ------------- ------------ ------------ ------------ -------------
End of period......................... $ 51,416,364 $ 56,021,347 $ 11,033,617 $ 10,409,913 $ 45,763,593 $ 40,592,335
============ ============= ============ ============ ============ =============
<Caption>
RESERVE TAX-EXEMPT TRUST
---------------------------
VIRGINIA FUND
---------------------------
SIX MONTHS YEAR
ENDED ENDED
NOVEMBER 30, MAY 31,
2003 2003
------------- ------------
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income................. $ 3,609 $ 31,307
------------ ------------
DIVIDENDS PAID TO SHAREHOLDERS FROM:
Net investment income
(Note 1)............................ (3,609) (31,307)
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00 per share
Proceeds from sale of shares.......... 29,817,748 48,777,938
Dividends reinvested.................. 3,609 31,307
Cost of shares redeemed............... (27,297,040) (50,593,354)
------------ ------------
2,524,317 (1,784,109)
------------ ------------
Net increase (decrease) in net
assets.............................. 2,524,317 (1,784,109)
NET ASSETS:
Beginning of period................... 11,260,044 13,044,153
------------ ------------
End of period......................... $ 13,784,361 $ 11,260,044
============ ============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<Page>
RESERVE MUNICIPAL MONEY-MARKET TRUST (UNAUDITED) (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
RESERVE MUNICIPAL MONEY-MARKET TRUST
------------------------------------------------------------
LOUISIANA FUND MINNESOTA FUND
----------------------------- -----------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
NOVEMBER 30, YEAR ENDED NOVEMBER 30, YEAR ENDED
2003 MAY 31, 2003 2003 MAY 31, 2003
--------------- ------------ --------------- ------------
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income....... $ 59 $ 346 $ 105 $ 550
-------- -------- -------- --------
DIVIDENDS PAID TO SHAREHOLDERS FROM:
Net investment income
(Note 1).................. (59) (346) (105) (550)
-------- -------- -------- --------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00 per share):
Proceeds from sale of
shares.................... 240,396 -- 596,218 74,281
Dividends reinvested........ 59 346 105 550
Cost of shares redeemed..... (185,241) -- (451,555) --
-------- -------- -------- --------
Net increase in net
assets.................... 55,214 346 144,768 74,831
-------- -------- -------- --------
NET ASSETS:
Beginning of period......... 110,502 110,156 185,021 110,190
-------- -------- -------- --------
End of period............... $165,716 $110,502 $329,789 $185,021
======== ======== ======== ========
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) SIGNIFICANT ACCOUNTING POLICIES:
- --------------------------------------------------------------------------------
Reserve New York Tax-Exempt Trust, Reserve Tax-Exempt Trust and Reserve
Municipal Money-Market Trust (collectively the "Trusts") are registered
with the Securities Exchange Commission ("SEC") under the Investment
Company Act of 1940 as non-diversified, open-end management investment
companies. The policies summarized below are consistently followed in the
preparation of their financial statements in conformity with generally
accepted accounting principles.
A. The Trusts' authorized shares of beneficial interest are unlimited. As
of November 30, 2003, there were eleven (11) separate series of Reserve
Tax-Exempt Trust authorized and outstanding (Interstate, Interstate II,
California, Connecticut, Florida, Massachusetts, Michigan, New Jersey,
Ohio, Pennsylvania and Virginia Tax-Exempt Funds), one (1) separate series
of Reserve New York Tax-Exempt Trust (New York Tax-Exempt Fund) and two (2)
separate series of Reserve Municipal Money-Market Trust (Louisiana and
Minnesota Funds) authorized and outstanding (each a "Fund", collectively
the "Funds"). These financial statements and notes apply to all above-
mentioned series of all Trusts, except for Interstate Tax-Exempt Fund and
Interstate II Tax-Exempt Fund.
B. Securities are valued at amortized cost, which approximates market
value. The amortized cost method values a security at cost plus accrued
interest at the time of purchase and thereafter assumes a constant
amortization to maturity of any discount or premium, irrespective of
intervening changes in interest rates or market values. For purposes of
compliance with Rule 2a-7 of the Investment Company Act of 1940 and for
computing the portfolios' average weighted life to maturity, the maturity
of floating or variable rate instruments in which the Funds may invest will
be deemed to be for floating rate instruments (1) the notice period
required before the Funds are entitled to receive payment of the principal
amount of the instrument; and for variable rate instruments the longer of
(1) above or (2) the period remaining until the instrument's next rate
adjustment.
C. It is each Fund's policy to comply with Subchapter M of the Internal
Revenue Code and to distribute all income to its shareholders. Accordingly,
no Federal income tax provision is required.
D. Security transactions are recorded on a trade date basis. Interest
income is accrued daily and security premium or discount is amortized or
accreted daily.
E. Net investment income is distributed to shareholders daily and
automatically reinvested in additional Fund shares.
(2) MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
- --------------------------------------------------------------------------------
Pursuant to an Investment Management Agreement (the "Agreement") between
Reserve Management Company, Inc. ("RMCI") and each Fund, RMCI serves as
each Fund's Investment Adviser subject to the policies adopted by the Board
of Trustees. Under the Agreement, RMCI is responsible for the supervision
of the day-to-day operations, manages each Fund's investments, effects
purchases and sales thereof, and absorbs certain promotional expenses. For
its services as Investment Adviser, RMCI receives a comprehensive
management fee, which is accrued daily at the annual rate of 0.80% of the
average daily net assets of each Fund. The comprehensive management fee
includes the advisory fee, all administrative and customary operating
expenses of each Fund, as well as shareholder liaison services (such as,
responding to customer inquiries and providing information on their
investments), recordkeeping charges, accounting expenses and transfer agent
costs. Excluded from the definition of customary operating expenses are:
interest charges, taxes, brokerage fees and commissions, extraordinary
legal and accounting fees and other extraordinary expenses, payments under
the Trust's Distribution Plan and the fees of the disinterested Trustees
for which each Fund pays its direct or allocated share. The Louisiana and
Minnesota Municipal Money-Market Funds also pay the state (blue sky) and
SEC registration fees applicable to those Funds. For the six months ended
November 30, 2003, RMCI voluntarily waived its comprehensive management fee
in the amounts listed below:
<Table>
<Caption>
FUND AMOUNT
- ---- --------
New York Tax-Exempt Fund.......................... $193,391
California Tax-Exempt Fund........................ 78,843
Connecticut Tax-Exempt Fund....................... 28,081
Florida Tax-Exempt Fund........................... 28,210
Massachusetts Tax-Exempt Fund..................... 14,925
Michigan Tax-Exempt Fund.......................... 5,905
New Jersey Tax-Exempt Fund........................ 44,198
Ohio Tax-Exempt Fund.............................. 7,533
Pennsylvania Tax-Exempt Fund...................... 23,626
Virginia Tax-Exempt Fund.......................... 10,615
Louisiana Municipal Money-Market Fund............. 370
Minnesota Municipal Money-Market Fund............. 454
</Table>
22
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(2) MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES (CONTINUED)
- --------------------------------------------------------------------------------
Certain Officers/ Trustees of the Trusts are also Officers of RMCI.
DISTRIBUTION ASSISTANCE:
---------------------------------------------------------------------------
The Funds have adopted a Rule 12b-1 Plan, with Resrv Partners, Inc., an
affiliate of RMCI, which allows the Funds to pay distribution fees for the
sale and distribution of its shares. The rate of distribution expenses is
0.20% per year of each Funds' average daily net assets. The Plan requires
RMCI to pay an equivalent amount from its own resources.
(3) MANAGEMENT'S USE OF ESTIMATES:
- --------------------------------------------------------------------------------
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities on
the date of the financial statements and the reported amounts of income and
expenses during the reporting periods. Actual results could differ from
those estimates.
(4) INVESTMENT CONCENTRATION:
- --------------------------------------------------------------------------------
The Funds invest substantially all of their assets in portfolios of
tax-exempt obligations issued by states, territories and possessions of the
United States and their subdivisions. The issuers' ability to meet their
obligations may be affected by economic, regional or political
developments. In order to reduce the credit risk associated with such
factors, the Funds invest substantially in obligations backed by letters of
credit, bond insurance of financial institutions, financial guaranty
assurance agencies and or other credit enhancement arrangements as shown
below as a percentage of each Fund's net assets at November 30, 2003:
<Table>
NEW YORK TAX-EXEMPT FUND 97.6%
LETTER OF CREDIT
Allied Irish Bank PLC............................. 3.2% Keybank........................................... 3.9%
Bank of America NA................................ 3.6% KBC NV, Brussels.................................. 4.3%
Bank of New York.................................. 5.0% Landesbank Baden-Wurternberg...................... 4.0%
Bank of Nova Scotia............................... 4.1% Landesbank Girozentrale Bayerische................ 3.9%
Bank One, NA...................................... 4.4% Landesbank Thueringen Girozentrale................ 4.1%
BNP Paribas....................................... 5.1% Mellon Bank NA.................................... 2.0%
Citibank, NA...................................... 3.8% Societe Generale.................................. 5.1%
Dexia Bank........................................ 5.0% State Street Bank & Trust......................... 4.3%
Fleet National Bank............................... 5.0% Suntrust Bank..................................... 0.5%
FNMA.............................................. 4.6% Toronto-Dominion Bank............................. 2.2%
HSBC USA.......................................... 4.3% Westdeutsche Landesbank AG........................ 4.0%
JP Morgan Chase Bank.............................. 4.8%
*BOND INSURANCE
AMBAC............................................. 4.0% FGIC.............................................. 2.4%
</Table>
23
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(4) INVESTMENT CONCENTRATION (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
CALIFORNIA TAX-EXEMPT FUND 99.6%
LETTER OF CREDIT
Allied Irish Bank, PLC............................ 3.0% FNMA.............................................. 4.4%
Bank of America NA................................ 4.4% JP Morgan Chase Bank.............................. 3.8%
Bank of New York.................................. 3.7% KBC NV, Brussels.................................. 6.8%
Bank of Nova Scotia............................... 3.9% La Salle Bank NA.................................. 5.1%
Bank of Scotland.................................. 3.8% Landesbank Baden-Wurternberg...................... 3.0%
BNP Paribas....................................... 1.5% Landesbank Girozentrale Bayerische................ 4.9%
Canadian Imperial Bank of Commerce................ 4.2% Landesbank Hessen-Thueringen Girozentrale......... 4.4%
Citibank, NA...................................... 5.0% Societe Generale.................................. 4.0%
Credit Agricole Indosuez.......................... 5.0% State Street Bank & Trust Co...................... 3.3%
Credit Suisse First Boston........................ 2.7% UBS AG............................................ 0.8%
FHLMC............................................. 4.2% Wells Fargo Bank NA............................... 4.0%
*BOND INSURANCE
AMBAC............................................. 4.5% FGIC.............................................. 4.5%
FSA............................................... 4.7%
</Table>
<Table>
CONNECTICUT TAX-EXEMPT FUND 80.8%
LETTER OF CREDIT
Allied Irish Bank................................. 4.6% Landesbank Girozentrale Bayerische................ 4.8%
Fleet National Bank............................... 8.1% Landesbank Hessen-Thueringen Girozentrale......... 8.9%
JP Morgan Chase Bank.............................. 4.8% Northern Trust Co................................. 4.8%
KBC NV, Brussels.................................. 4.0% Wachovia Bank NA.................................. 7.2%
La Salle Bank NA.................................. 4.8%
*BOND INSURANCE
AMBAC............................................. 7.2% FSA............................................... 8.0%
FGIC.............................................. 8.8% MBIA.............................................. 4.8%
</Table>
<Table>
FLORIDA TAX-EXEMPT FUND 98.4%
LETTER OF CREDIT
Bank of America NA................................ 4.6% Keybank NA........................................ 4.7%
Bank One, NA...................................... 4.6% La Salle Bank NA.................................. 4.7%
Credit Suisse First Boston........................ 4.6% Mellon Bank NA.................................... 2.6%
Fifth Third Bank.................................. 3.8% Northern Trust Co................................. 2.6%
Florida Power & Light............................. 9.4% Societe Generale.................................. 4.2%
FHLMC............................................. 8.8% Suntrust Bank..................................... 9.2%
FNMA.............................................. 2.6% Toronto-Dominion Bank............................. 4.7%
HSBC USA.......................................... 4.7% Wachovia Bank NA.................................. 4.7%
JP Morgan Chase Bank.............................. 9.0% Wells Fargo Bank NA............................... 1.7%
*BOND INSURANCE
FGIC.............................................. 7.2%
</Table>
24
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(4) INVESTMENT CONCENTRATION (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
MASSACHUSETTS TAX-EXEMPT FUND 74.4%
LETTER OF CREDIT
Allied Irish Bank, PLC............................ 4.9% Landesbank Baden-Wurternberg...................... 4.3%
Bank One, NA...................................... 5.4% Landesbank Hessen-Thueringen Girozentrale......... 4.8%
Dexia Bank........................................ 9.2% State Street Bank & Trust......................... 4.9%
Fleet National Bank............................... 4.8% Toronto-Dominion Bank............................. 4.6%
FNMA.............................................. 4.8% Wachovia Bank NA.................................. 4.9%
KBC, NV Brussels.................................. 8.8%
*BOND INSURANCE
AMBAC............................................. 4.9% MBIA.............................................. 3.2%
FGIC.............................................. 4.9%
</Table>
<Table>
(3) MICHIGAN TAX-EXEMPT FUND 95.0%
LETTER OF CREDIT
Bank of America NA................................ 4.4% La Salle Bank NA.................................. 8.9%
Bank One, NA...................................... 8.9% Landesbank Girozentrale Bayerische................ 4.4%
Comerica Bank..................................... 8.9% Landesbank Hessen-Thueringen Girozentrale......... 4.4%
Deutsche Bank AG.................................. 1.5% National City Bank................................ 4.4%
Dexia Bank........................................ 8.9% Northern Trust Co................................. 4.4%
Fifth Third Bank.................................. 4.4% Standard Federal Bank NA.......................... 4.4%
JP Morgan Chase Bank.............................. 4.5% Westdeutsche Landesbank AG........................ 8.9%
Keybank NA........................................ 1.9%
*BOND INSURANCE
AMBAC............................................. 3.0% MBIA.............................................. 4.4%
FGIC.............................................. 4.4%
</Table>
<Table>
NEW JERSEY TAX-EXEMPT FUND 89.5%
LETTER OF CREDIT
Bank of New York.................................. 9.9% JP Morgan Chase Bank.............................. 9.6%
Bank of Nova Scotia............................... 4.7% KBC NV, Brussels.................................. 4.7%
Barclays Bank PLC................................. 8.2% Lloyds TSB Bank PLC............................... 4.7%
BNP Paribas....................................... 4.3% PNC Bank, NA...................................... 4.9%
Citibank, NA...................................... 9.5% Suntrust Bank..................................... 4.9%
Fleet National Bank............................... 4.8% Wachovia Bank NA.................................. 4.8%
FNMA.............................................. 4.8%
*BOND INSURANCE
FGIC.............................................. 4.8% MBIA.............................................. 4.9%
</Table>
25
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(4) INVESTMENT CONCENTRATION (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
OHIO TAX-EXEMPT FUND 99.4%
LETTER OF CREDIT
ABN-AMRO Bank NV.................................. 10.0% JP Morgan Chase Bank.............................. 4.5%
Allied Irish Bank, PLC............................ 10.0% Keybank NA........................................ 9.5%
Bank of America NA................................ 1.8% National City Bank................................ 8.2%
Bank of Scotland.................................. 5.0% Northern Trust Co................................. 4.5%
Bank One.......................................... 5.5% US Bank NA........................................ 5.0%
Barclays Bank PLC................................. 5.0% Wachovia Bank NA.................................. 4.5%
Fifth Third Bank.................................. 4.5% Wells Fargo Bank NA............................... 3.4%
Fleet National Bank............................... 4.5%
*BOND INSURANCE
AMBAC............................................. 4.5% MBIA.............................................. 4.5%
FSA............................................... 4.5%
</Table>
<Table>
PENNSYLVANIA TAX-EXEMPT FUND 99.5%
LETTER OF CREDIT
ABN-AMRO Bank NV.................................. 4.8% JP Morgan Chase Bank.............................. 6.5%
Allied Irish Bank, PLC............................ 9.2% KBC NV, Brussels.................................. 3.1%
Bank of America NA................................ 4.8% Landesbank Hessen-Thueringen Girozentrale......... 4.2%
Bank of Nova Scotia............................... 2.2% Northern Trust Co................................. 4.8%
Bank One, NA...................................... 3.9% PNC Bank, NA...................................... 4.8%
BNP Paribas....................................... 4.8% Rabobank Nederland................................ 4.8%
Dexia Bank........................................ 8.1% Suntrust Bank..................................... 4.8%
Fleet National Bank............................... 9.7% Toronto-Dominion Bank............................. 4.8%
FNMA.............................................. 4.8% Wachovia Bank NA.................................. 9.4%
</Table>
<Table>
VIRGINIA TAX-EXEMPT FUND 71.1%
LETTER OF CREDIT
Bank of America NA................................ 5.1% JP Morgan Chase Bank.............................. 9.4%
Bank of Scotland.................................. 5.1% Suntrust Bank..................................... 8.7%
Citibank, NA...................................... 9.4% US Bank, NA....................................... 5.1%
Credit Suisse First Boston........................ 5.1% Wachovia Bank NA.................................. 9.4%
FHLMC............................................. 8.7%
*BOND INSURANCE
AMBAC............................................. 5.1%
</Table>
26
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(4) INVESTMENT CONCENTRATION (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
LOUISIANA MUNICIPAL MONEY-MARKET FUND 50.7%
LETTER OF CREDIT
Bank of America NA................................ 8.5% BNP Paribas....................................... 4.2%
Bank One, NA...................................... 4.2% Landesbank Girozentrale Bayerische................ 8.4%
*BOND INSURANCE
AMBAC............................................. 8.5% MBIA.............................................. 8.4%
FGIC.............................................. 8.5%
</Table>
<Table>
MINNESOTA MUNICIPAL MONEY-MARKET FUND 62.1%
LETTER OF CREDIT
ABN-AMRO Bank NV.................................. 4.5% Landesbank Hessen-Thueringen Girozentrale......... 4.6%
Bank of America NA................................ 4.6% US Bank, NA....................................... 4.5%
Harris Trust & Savings Bank....................... 3.0% Wells Fargo Bank NA............................... 9.1%
JP Morgan Chase Bank.............................. 4.5% Westdeutsche Landesbank AG........................ 9.1%
*BOND INSURANCE
AMBAC............................................. 9.1% MBIA.............................................. 9.1%
*Some securities may be backed by both a line of credit and bond insurance.
</Table>
(5) COMPOSITION OF NET ASSETS
- --------------------------------------------------------------------------------
At November 30, 2003, the composition of each Fund's net assets was as
follows:
<Table>
<Caption>
NEW YORK CALIFORNIA CONNECTICUT FLORIDA MASSACHUSETTS
FUND FUND FUND FUND FUND
------------ ------------ ----------- ----------- -------------
Par Value................ $ 196,364 $ 100,325 $ 25,070 $ 38,360 $ 18,497
Additional-Paid-in-Capital... 196,167,246 100,224,797 25,044,554 38,591,860 18,478,233
------------ ------------ ----------- ----------- -----------
Net Assets............... $196,363,610 $100,325,122 $25,069,624 $38,630,220 $18,496,730
============ ============ =========== =========== ===========
</Table>
<Table>
<Caption>
MICHIGAN NEW JERSEY OHIO PENNSYLVANIA VIRGINIA
FUND FUND FUND FUND FUND
------------ ------------ ----------- ------------ -----------
Par Value................ $ 6,757 $ 51,416 $ 11,034 $ 45,764 $ 13,784
Additional-Paid-in-Capital... 6,750,520 51,364,948 11,022,583 45,717,829 13,770,577
------------ ------------ ----------- ----------- -----------
Net Assets............... $ 6,757,277 $ 51,416,364 $11,033,617 $45,763,593 $13,784,361
============ ============ =========== =========== ===========
</Table>
<Table>
<Caption>
LOUISIANA FUND MINNESOTA FUND
-------------- --------------
Par Value............................... $ 17 $ 33
Additional-Paid-in-Capital.............. 165,699 329,756
-------- --------
Net Assets.............................. $165,716 $329,789
======== ========
</Table>
(6) FINANCIAL HIGHLIGHTS:
27
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share of
beneficial interest outstanding for each of the periods as indicated.
<Table>
<Caption>
SIX MONTHS
ENDED YEARS ENDED MAY 31,
NOVEMBER 30, -----------------------------------------------------
2003 2003 2002 2001 2000 1999
------------ --------- --------- --------- --------- ---------
NEW YORK TAX-EXEMPT FUND
----------------------------------------------
Net asset value at beginning of period............ $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
-------- -------- -------- -------- -------- --------
Net investment income............................. 0.0003 0.0034 0.0095 0.0281 0.0258 0.0222
Dividends from net investment income.............. (0.0003) (0.0034) (0.0095) (0.0281) (0.0258) (0.0222)
-------- -------- -------- -------- -------- --------
Net asset value at end of period.................. $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
======== ======== ======== ======== ======== ========
Total Return...................................... 0.03% 0.34% 0.95% 2.87% 2.58% 2.22%
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------
Net assets end of period (millions)............... $ 196.4 $ 228.4 $ 234.4 $ 281.6 $ 228.4 $ 186.0
Ratio of expenses to average net assets........... 1.00%(b) 1.00% 1.01% 1.01% 1.00% 1.00%
Ratio of net investment income (loss) to average
net assets...................................... (0.11)%(b) 0.33% 0.94% 2.81% 2.55% 2.19%
Ratio of expenses to average net assets net of fee
waivers......................................... 0.83%(b) 0.99% 1.01% 1.01% 1.00% 1.00%
Ratio of net investment income to average net
assets net of fee waivers....................... 0.06%(b) 0.34% 0.94% 2.81% 2.55% 2.19%
</Table>
<Table>
<Caption>
SIX MONTHS PERIOD
ENDED YEARS ENDED MAY 31, ENDED
NOVEMBER 30, ------------------------------- MAY 31,
2003 2003 2002 2001 2000(A)
------------ --------- --------- --------- ----------
CALIFORNIA TAX-EXEMPT FUND
-------------------------
Net asset value at
beginning of period.... $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
-------- -------- -------- -------- --------
Net investment income.... 0.0003 0.0033 0.0098 0.0236 0.0208
Dividends from net
investment income...... (0.0003) (0.0033) (0.0098) (0.0236) (0.0208)
-------- -------- -------- -------- --------
Net asset value at end of
period................. $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
======== ======== ======== ======== ========
Total Return............. 0.03% 0.33% 0.98% 2.42% 2.08%
RATIOS/SUPPLEMENTAL DATA
-------------------------
Net assets end of period
(millions)............. $ 100.3 $ 109.0 $ 109.3 $ 136.2 $ 91.4
Ratio of expenses to
average net assets..... 1.00%(b) 1.00% 1.01% 1.00% 1.00%(b)
Ratio of net investment
income (loss) to
average net assets..... (0.08)%(b) 0.31% 1.00% 2.36% 2.27%(b)
Ratio of expenses to
average net assets net
of fee waivers......... 0.85%(b) 0.99% 1.01% 1.00% 0.96%(b)
Ratio of net investment
income to average net
assets net of fee
waivers................ 0.07%(b) 0.32% 1.00% 2.36% 2.31%(b)
</Table>
28
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(6) FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED YEARS ENDED MAY 31,
NOVEMBER 30, --------------------------------------------
2003 2003 2002 2001 2000 1999
------------ -------- ------- ------- ------- -------
CONNECTICUT TAX-EXEMPT FUND
---------------------------------------------
Net asset value at beginning of period............ $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- ------- -------
Net investment income............................. 0.0003 0.0025 0.0092 0.0273 0.0248 0.0221
Dividends from net investment income.............. (0.0003) (0.0025) (0.0092) (0.0273) (0.0248) (0.0221)
------- ------- ------- ------- ------- -------
Net asset value at end of period.................. $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= ======= =======
Total Return...................................... 0.03% 0.25% 0.92% 2.75% 2.48% 2.21%
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------
Net assets end of period (millions)............... $ 25.1 $ 36.4 $ 41.2 $ 40.2 $ 51.1 $ 55.4
Ratio of expenses to average net assets........... 1.00%(b) 1.00% 1.01% 1.01% 1.00% 1.00%
Ratio of net investment income (loss) to average
net assets...................................... (0.12)%(b) 0.23% 0.92% 2.73% 2.42% 2.17%
Ratio of expenses to average net assets net of fee
waivers......................................... 0.83%(b) 0.98% 1.01% 1.01% 1.00% 1.00%
Ratio of net investment income to average net
assets net of fee waivers....................... 0.06%(b) 0.25% 0.92% 2.73% 2.42% 2.17%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEARS ENDED MAY 31,
NOVEMBER 30, -----------------------------------------------------
2003 2003 2002 2001 2000 1999
------------ --------- --------- --------- --------- ---------
FLORIDA TAX-EXEMPT FUND
-------------------------
Net asset value at
beginning of period.... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- ------- -------
Net investment income.... 0.0003 0.0036 0.0105 0.0294 0.0272 0.0237
Dividends from net
investment income...... (0.0003) (0.0036) (0.0105) (0.0294) (0.0272) (0.0237)
------- ------- ------- ------- ------- -------
Net asset value at end of
period................. $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= ======= =======
Total Return............. 0.03% 0.36% 1.05% 2.98% 2.72% 2.37%
RATIOS/SUPPLEMENTAL DATA
-------------------------
Net assets end of period
(millions)............. $ 38.6 $ 45.9 $ 32.1 $ 28.9 $ 28.9 $ 22.6
Ratio of expenses to
average net assets..... 1.00%(b) 1.00% 1.00% 1.01% 1.00% 1.00%
Ratio of net investment
income (loss) to
average net assets..... (0.06)%(b) 0.34% 0.99% 2.94% 2.68% 2.30%
Ratio of expenses to
average net assets net
of fee waivers......... 0.87%(b) 0.99% 1.00% 1.01% 1.00% 1.00%
Ratio of net investment
income to average net
assets net of fee
waivers................ 0.07%(b) 0.35% 0.99% 2.94% 2.68% 2.30%
</Table>
29
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(6) FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED YEARS ENDED MAY 31,
NOVEMBER 30, -----------------------------------------------------
2003 2003 2002 2001 2000 1999
------------ --------- --------- --------- --------- ---------
MASSACHUSETTS TAX-EXEMPT FUND
---------------------------------------------
Net asset value at beginning of period............ $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- ------- -------
Net investment income............................. 0.0003 0.0030 0.0099 0.0279 0.0256 0.0220
Dividends from net investment income.............. (0.0003) (0.0030) (0.0099) (0.0279) (0.0256) (0.0220)
------- ------- ------- ------- ------- -------
Net asset value at end of period.................. $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= ======= =======
Total Return...................................... 0.03% 0.30% 0.99% 2.85% 2.56% 2.20%
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------
Net assets end of period (millions)............... $ 18.5 $ 20.8 $ 21.0 $ 18.8 $ 16.1 $ 19.9
Ratio of expenses to average net assets........... 1.00%(b) 1.00% 1.00% 1.00% 1.00% 1.00%
Ratio of net investment income (loss) to average
net assets...................................... (0.09)%(b) 0.28% 0.99% 2.79% 2.55% 2.17%
Ratio of expenses to average net assets net of fee
waivers......................................... 0.85%(b) 0.98% 1.00% 1.00% 1.00% 1.00%
Ratio of net investment income to average net
assets net of fee waivers....................... 0.06%(b) 0.30% 0.99% 2.79% 2.55% 2.17%
</Table>
<Table>
<Caption>
SIX MONTHS PERIOD
ENDED YEARS ENDED MAY 31, ENDED
NOVEMBER 30, ------------------------------------------ MAY 31,
2003 2003 2002 2001 2000 1999(C)
------------ --------- --------- --------- --------- ----------
MICHIGAN TAX-EXEMPT FUND
-------------------------
Net asset value at
beginning of period.... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- ------- -------
Net investment income.... 0.0003 0.0029 0.0080 0.0276 0.0263 0.0118
Dividends from net
investment income...... (0.0003) (0.0029) (0.0080) (0.0276) (0.0263) (0.0118)
------- ------- ------- ------- ------- -------
Net asset value at end of
period................. $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= ======= =======
Total Return............. 0.03% 0.29% 0.81% 2.83% 2.63% 1.18%
RATIOS/SUPPLEMENTAL DATA
-------------------------
Net assets end of period
(millions)............. $ 6.8 $ 7.9 $ 8.5 $ 4.8 $ 2.2 $ 1.2
Ratio of expenses to
average net assets..... 1.00%(b) 1.00% 1.01% 1.00% 1.00% 1.00%(b)
Ratio of net investment
income (loss) to
average net assets..... (0.09)%(b) 0.27% 0.63% 2.76% 2.60% 2.02%(b)
Ratio of expenses to
average net assets net
of fee waivers......... 0.84%(b) 0.98% 1.00% 1.00% 1.00% 0.49%(b)
Ratio of net investment
income to average net
assets net of fee
waivers................ 0.06%(b) 0.29% 0.64% 2.76% 2.60% 2.53%(b)
</Table>
30
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(6) FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED YEARS ENDED MAY 31,
NOVEMBER 30, -----------------------------------------------------
2003 2003 2002 2001 2000 1999
------------ --------- --------- --------- --------- ---------
NEW JERSEY TAX-EXEMPT FUND
---------------------------------------------
Net asset value at beginning of period............ $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- ------- -------
Net investment income............................. 0.0003 0.0029 0.0101 0.0277 0.0249 0.0223
Dividends from net investment income.............. (0.0003) (0.0029) (0.0101) (0.0277) (0.0249) (0.0223)
------- ------- ------- ------- ------- -------
Net asset value at end of period.................. $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= ======= =======
Total Return...................................... 0.03% 0.29% 1.01% 2.83% 2.49% 2.23%
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------
Net assets end of period (millions)............... $ 51.4 $ 56.0 $ 57.5 $ 52.9 $ 44.4 $ 41.3
Ratio of expenses to average net assets........... 1.00%(b) 1.00% 1.01% 1.01% 1.05% 1.00%
Ratio of net investment income (loss) to average
net assets...................................... (0.10)%(b) 0.25% 0.94% 2.77% 2.46% 2.17%
Ratio of expenses to average net assets net of fee
waivers......................................... 0.84%(b) 0.97% 1.01% 1.01% 1.05% 1.00%
Ratio of net investment income to average net
assets net of fee waivers....................... 0.06%(b) 0.28% 0.94% 2.77% 2.46% 2.17%
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED YEARS ENDED MAY 31,
NOVEMBER 30, -----------------------------------------------------
2003 2003 2002 2001 2000 1999
------------ --------- --------- --------- --------- ---------
OHIO TAX-EXEMPT FUND
-------------------------
Net asset value at
beginning of period.... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- ------- -------
Net investment income.... 0.0003 0.0030 0.0082 0.0281 0.0256 0.0236
Dividends from net
investment income...... (0.0003) (0.0030) (0.0082) (0.0281) (0.0256) (0.0236)
------- ------- ------- ------- ------- -------
Net asset value at end of
period................. $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= ======= =======
Total Return............. 0.03% 0.30% 0.83% 2.88% 2.56% 2.36%
RATIOS/SUPPLEMENTAL DATA
-------------------------
Net assets end of period
(millions)............. $ 11.0 $ 10.4 $ 5.7 $ 8.1 $ 8.9 $ 1.2
Ratio of expenses to
average net assets..... 1.00%(b) 1.00% 1.01% 1.00% 1.00% 1.00%
Ratio of net investment
income (loss) to
average net assets..... (0.06)%(b) 0.28% 0.81% 2.81% 2.95% 2.16%
Ratio of expenses to
average net assets net
of fee waivers......... 0.88%(b) 0.99% 1.01% 1.00% 1.00% 0.83%
Ratio of net investment
income to average net
assets net of fee
waivers................ 0.06%(b) 0.29% 0.81% 2.81% 2.95% 2.32%
</Table>
31
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(6) FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED YEARS ENDED MAY 31,
NOVEMBER 30, -----------------------------------------------------
2003 2003 2002 2001 2000 1999
------------ --------- --------- --------- --------- ---------
PENNSYLVANIA TAX-EXEMPT FUND
-------------------------
Net asset value at
beginning of period.... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- ------- -------
Net investment income.... 0.0003 0.0036 0.0097 0.0287 0.0276 0.0234
Dividends from net
investment income...... (0.0003) (0.0036) (0.0097) (0.0287) (0.0276) (0.0234)
------- ------- ------- ------- ------- -------
Net asset value at end of
period................. $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= ======= =======
Total Return............. 0.03% 0.36% 0.97% 2.97% 2.76% 2.34%
RATIOS/SUPPLEMENTAL DATA
-------------------------
Net assets end of period
(millions)............. $ 45.8 $ 40.6 $ 51.5 $ 34.1 $ 21.1 $ 16.9
Ratio of expenses to
average net assets..... 1.00%(b) 1.00%(c) 1.01% 1.00% 1.00% 1.00%
Ratio of net investment
income (loss) to
average net assets..... (0.04)%(b) 0.34%(c) 0.89% 2.87% 2.73% 2.28%
Ratio of expenses to
average net assets net
of fee waivers......... 0.90%(b) 1.00% 1.01% 1.00% 1.00% 1.00%
Ratio of net investment
income to average net
assets net of fee
waivers................ 0.07%(b) 0.34% 0.89% 2.87% 2.73% 2.28%
</Table>
<Table>
<Caption>
SIX MONTHS PERIOD
ENDED YEARS ENDED MAY 31, ENDED
NOVEMBER 30, ------------------------------- MAY 31,
2003 2003 2002 2001 2000(D)
------------ --------- --------- --------- ----------
VIRGINIA TAX-EXEMPT FUND
-------------------------
Net asset value at
beginning of period.... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- -------
Net investment income.... 0.0003 0.0025 0.0069 0.0253 0.0075
Dividends from net
investment income...... (0.0003) (0.0025) (0.0069) (0.0253) (0.0075)
------- ------- ------- ------- -------
Net asset value at end of
period................. $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= =======
Total Return............. 0.03% 0.25% 0.69% 2.77% 0.75%
RATIOS/SUPPLEMENTAL DATA
-------------------------
Net assets end of period
(millions)............. $ 13.8 $ 11.3 $ 13.0 $ 6.7 $ 2.1
Ratio of expenses to
average net assets..... 1.00%(b) 1.00% 1.01% 1.00% 1.01%(b)
Ratio of net investment
income (loss) to
average net assets..... (0.12)%(b) 0.19% 0.58% 2.53% 3.19%(b)
Ratio of expenses to
average net assets net
of fee waivers......... 0.82%(b) 0.95% 0.99% 1.01% 0.97%(b)
Ratio of net investment
income to average net
assets net of fee
waivers................ 0.06%(b) 0.24% 0.60% 2.53% 3.23%(b)
</Table>
32
<Page>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(6) FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED
NOVEMBER 30, YEAR ENDED PERIOD ENDED
LOUISIANA MUNICIPAL MONEY-MARKET FUND 2003 MAY 31, 2003 MAY 31, 2002(E)
------------------------------------- ------------ ------------ ---------------
Net asset value at beginning of period............ $1.0000 $1.0000 $1.0000
------- ------- -------
Net investment income............................. 0.0003 0.0032 0.0014
Dividends from net investment income.............. (0.0003) (0.0032) (0.0014)
------- ------- -------
Net asset value at end of period.................. $1.0000 $1.0000 $1.0000
======= ======= =======
Total Return...................................... 0.03% 0.32% 0.14%
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------
Net assets end of period (millions)............... $ 0.2 $ 0.1 $ 0.1
Ratio of expenses to average net assets........... 1.00%(b) 1.00% 1.04%(b)
Ratio of net investment income (loss) to average
net assets...................................... (0.39)%(b) (0.11)% 0.36%(b)
Ratio of expenses to average net assets net of fee
waivers......................................... 0.54%(b) 0.57% 0.00%(b)
Ratio of net investment income to average net
assets net of fee waivers....................... 0.07%(b) 0.32% 1.15%(b)
</Table>
<Table>
<Caption>
SIX MONTHS
ENDED
NOVEMBER 30, YEAR ENDED PERIOD ENDED
MINNESOTA MUNICIPAL MONEY-MARKET FUND 2003 MAY 31, 2003 MAY 31, 2002(E)
------------------------------------- ------------ ------------ -----------------
Net asset value at beginning of period............ $1.0000 $1.0000 $1.0000
------- ------- -------
Net investment income............................. 0.0003 0.0044 0.0017
Dividends from net investment income.............. (0.0003) (0.0044) (0.0017)
------- ------- -------
Net asset value at end of period.................. $1.0000 $1.0000 $1.0000
======= ======= =======
Total Return...................................... 0.03% 0.44% 0.17%
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------
Net assets end of period (millions)............... $ 0.3 $ 0.2 $ 0.1
Ratio of expenses to average net assets........... 1.00%(b) 1.00% 1.04%(b)
Ratio of net investment income (loss) to average
net assets...................................... (0.24)%(b) 0.12% 0.36%(b)
Ratio of expenses to average net assets net of fee
waivers......................................... 0.69%(b) 0.69% 0.00%(b)
Ratio of net investment income to average net
assets net of fee waivers....................... 0.07%(b) 0.43% 1.40%(b)
</Table>
- ---------------
(a) From July 2, 1999 (Commencement of Operations) to May 31, 2000.
(b) Annualized.
(c) From December 14, 1998 (Commencement of Operations) to May 31,1999.
(d) From March 3, 2000 (Commencement of Operations) to May 31, 2000.
(e) From April 17, 2002 (Commencement of Operations) to May 31, 2002.
33
<Page>
THE JOINT BOARD OF TRUSTEES AND EXECUTIVE OFFICERS OF THE FUNDS
The Board of Trustees is responsible for the management and supervision of the
Funds. The Trustees approve all significant agreements between the Funds and
those companies that furnish services to the Funds. The Trustees and the
Executive Officers of the Funds oversee 28 portfolios in the Reserve fund
complex. None of the Trustees or Executive Officers hold other directorships
outside The Reserve Funds with the exception of Father Donald Harrington, a
Director of The Bear Stearns Companies, Inc. (financial institution) since 1993
and Patrick Foye a Director of The Philadelphia Trust Company since 2002. The
Trustees and Executive Officers of the Funds, together with information as to
their principal business occupations during at least the last five years, are
shown below:
INTERESTED TRUSTEE*
<Table>
<Caption>
CURRENT POSITIONS HELD TERM OF OFFICE ** PRINCIPAL OCCUPATIONS DURING
NAME, ADDRESS, AGE WITH THE FUNDS AND LENGTH OF SERVICE THE LAST FIVE YEARS
- --------------------------------------------------------------------------------------------------------------
BRUCE R. BENT Chairman/Chief Since 2000 President of Reserve Management
Age: 66 Executive Officer and Company, Inc. ("RMCI"), Director
The Reserve Funds Trustee of The Reserve and Chairman/Chief Executive
1250 Broadway Fund ("RF"), Reserve Officer of Reserve Management
New York, NY 10001-3701 Tax-Exempt Trust Corporation ("RMC"); Chairman and
("RTET"), Reserve New Director of Resrv Partners, Inc.
York Tax-Exempt Trust ("RESRV") (2000 - present) and
("RNYTET"), Reserve Chairman and Director of the
Municipal Money-Market Reserve International Liquidity
Trust ("RMMMT") and Fund Ltd. (1990 - present)
Reserve Private Equity Co-founder of The Reserve Funds
Series ("RPES"). (1970); various executive officer
positions (1970 - present).
</Table>
* MR. BENT IS CONSIDERED TO BE AN "INTERESTED PERSON" OF THE FUNDS AS DEFINED
IN THE 1940 ACT DUE TO HIS EMPLOYMENT WITH RMC, RMCI AND RESRV.
DISINTERESTED TRUSTEES
<Table>
<Caption>
CURRENT POSITIONS HELD TERM OF OFFICE ** PRINCIPAL OCCUPATIONS DURING
NAME, ADDRESS, AGE WITH THE FUNDS AND LENGTH OF SERVICE THE LAST FIVE YEARS
- --------------------------------------------------------------------------------------------------------------
EDWIN EHLERT, JR. Trustee of RF, RTET, Since 1970 Retired. President, Premier
Age: 73 RNYTET, RMMMT and Resources, Inc. (meeting
2584 Morning Star Rd. RPES. management firm) (1987 - 2001).
Manasquan, NJ 08736
- --------------------------------------------------------------------------------------------------------------
PATRICK J. FOYE Trustee of RF, RTET, Since 2000 Deputy Chairman of Long Island
Age: 46 RNYTET, RMMMT and Power Authority (1995 - present).
10 Maple St. RPES. Executive Vice President of
Port Washington, NY 11050 Apartment Investment and Management
Company ("AIMCO") (real estate
investment trust) (1998 - present);
Partner, Skadden, Arps, Slate,
Meagher & Flom LLP (Law firm)
(1989 - 1998).
- --------------------------------------------------------------------------------------------------------------
DONALD J. HARRINGTON, C.M. Trustee of RF, RTET, Since 1987 President of St. John's University,
Age: 58 RNYTET, RMMMT and NY (1989 - present).
c/o St. John's University RPES.
8000 Utopia Parkway
Jamaica, NY 11439
- --------------------------------------------------------------------------------------------------------------
WILLIAM J. MONTGORIS Trustee of RF, RTET, Since 1999 Retired. Former Chief Operating
Age: 56 RNYTET, RMMMT and Officer of The Bear Stearns
286 Gregory Road RPES. Companies, Inc. (1979 - 1999).
Franklin Lakes, NJ 07417
- --------------------------------------------------------------------------------------------------------------
WILLIAM E. VIKLUND Trustee of RF, RTET, Currently, since Retired. Former President and COO
Age: 63 RNYTET, RMMMT and 1999. (Previously, of Long Island Bankcorp (1980 -
110 Grist Mill Lane RPES. 1987 - 1990) 1996).
Plandome Manor, NY
11030-1110
</Table>
** EACH TRUSTEE SHALL HOLD OFFICE UNTIL HE RESIGNS, IS REMOVED OR UNTIL HIS
SUCCESSOR IS DULY ELECTED AND QUALIFIED. A TRUSTEE SHALL RETIRE UPON
ATTAINING THE AGE OF SEVENTY-FIVE (75) YEARS. TRUSTEES NEED NOT BE
SHAREHOLDERS.
34
<Page>
OFFICERS WHO ARE NOT TRUSTEES
<Table>
<Caption>
CURRENT POSITIONS HELD TERM OF OFFICE ** PRINCIPAL OCCUPATIONS DURING
NAME, ADDRESS, AGE WITH THE FUNDS AND LENGTH OF SERVICE THE LAST FIVE YEARS
- --------------------------------------------------------------------------------------------------------------
BRUCE R. BENT II President and Since 2000 and 2002, Senior Vice President, Secretary
Age: 37 Assistant Treasurer of Respectively and Assistant Treasurer of RMCI;
The Reserve Funds RF, RTET, RNYTET, Senior Vice President, Secretary
1250 Broadway RMMMT and RPES. and Assistant Treasurer of RMC;
New York, NY 10001-3701 and, Secretary and Director of
Trustee of RMMMT. RESRV (2000 - present). Trustee of
RF, RTET, RNYTET, and RPES (1999 -
2001). Vice President RMC, RMCI and
RESRV (1992 - 2000).
- --------------------------------------------------------------------------------------------------------------
ARTHUR T. BENT III Chief Operating Since 2000 and 2002, Chief Operating Officer/Treasurer,
Age: 35 Officer/Treasurer, respectively. Senior Vice President and Assistant
The Reserve Funds Senior Vice President Secretary of RMCI; President,
1250 Broadway and Assistant Treasurer and Assistant Secretary
New York, NY 10001-3701 Secretary of RF, RTET, of RMC; and, Treasurer and Director
RNYTET, RMMMT and of RESRV (2000 - present). Vice
RPES. President RMC, RMCI and RESRV
Trustee of RMMMT. (1997 - 2000).
</Table>
** OFFICERS HOLD THEIR POSITIONS WITH THE TRUST UNTIL A SUCCESSOR HAS BEEN
DULY ELECTED AND QUALIFIED.
The Statement of Additional Information includes additional information about
Fund Trustees and is available, without charge, upon request, at 1-800-637-1700.
35
<Page>
Item 2 -- Code of Ethics -- Not required in this filing
Item 3 -- Audit Committee Financial Expert -- Not required in this filing
Item 4 -- Principal Accountant Fees and Services -- Not required in this filing
Item 5 -- Reserved
Item 6 -- Reserved
Item 7 -- Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies -- Not Applicable
Item 8 -- Reserved
Item 9 -- Controls and Procedures
(a) It is the conclusion of the registrant's principal executive officer
and principal financial officer that the effectiveness of the
registrant's current disclosure controls and procedures (such
disclosure controls and procedures having been evaluated within 90
days of the date of this filing) provide reasonable assurance that the
information required to be disclosed by the registrant has been
recorded, processed, summarized and reported within the time period
specified in the Commission's rules and forms and that the information
required to be disclosed by the registrant has been accumulated and
communicated to the registrant's principal executive officer and
principal financial officer in order to allow timely decisions
regarding required disclosure.
(b) There have been no significant changes in the registrant's internal
controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any
corrective actions with regard to significant deficiencies and
material weaknesses.
Item 10 -- Exhibits
(a) Code of Ethics -- Not required in this filing
(b) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act --
Attached hereto
<Page>
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Reserve Municipal Money Market Trust
/s/ Bruce Bent
-------------------------
Bruce Bent
Chief Executive Officer
Date: 2/10/04
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
/s/ Bruce Bent
-------------------------
Bruce Bent
Chief Executive Officer
Date: 2/10/04
/s/ Arthur Bent
-------------------------
Arthur Bent
Treasurer and Principal Financial Officer
Date: 2/10/04
Attached hereto as an exhibit are the certifications pursuant to Section 906 of
the Sarbanes-Oxley Act.