rbcgf-ncsrs.htm

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 811-05549

Reynolds Funds, Inc.

(Exact name of registrant as specified in charter)

c/o U.S. Bancorp Fund Services, LLC

615 E. Michigan Street

Milwaukee, WI 53202

(Address of principal executive offices) (Zip code)

Frederick L. Reynolds

Reynolds Capital Management, LLC

3565 South Las Vegas Blvd. #403

Las Vegas, NV 89109

(Name and address of agent for service)

Registrant's telephone number, including area code (415) 265-7167

Date of fiscal year end: September 30, 2014

Date of reporting period: March 31, 2014

Item 1. Reports to Stockholders.

SEMIANNUAL REPORT

March 31, 2014

REYNOLDS

BLUE CHIP

GROWTH FUND

Seeking Long-Term Capital Appreciation

A No-Load Mutual Fund

1-800-773-9665

www.reynoldsfunds.com

REYNOLDS BLUE CHIP GROWTH FUND

May 30, 2014

Dear Fellow Shareholders:

Reynolds Blue Chip Growth Fund’s 25th Anniversary

The Reynolds Blue Chip Growth Fund celebrated its 25th Anniversary last summer. It began operations on August 12, 1988.

Performance Highlights (March 31, 2014)

The annualized average total returns of the Reynolds Blue Chip Growth Fund (the “Fund” or the “Blue Chip Fund”) for the 1-year, 3-year, 5-year, 10-year periods and since inception (August 12, 1988) through March 31, 2014 were +22.51%, +10.28%, +20.23%, +9.61% and +8.94%, respectively. The annualized average total returns for the Fund’s benchmark, the Standard & Poor’s 500 Index, for the 1-year, 3-year, 5-year, 10-year periods and since inception (August 12, 1988) through March 31, 2014 were +21.86%, +14.66%, +21.16%, +7.42% and +10.38%, respectively. The performance of the Reynolds Blue Chip Growth Fund was -0.09% in the three months ended March 31, 2014. The performance of the Standard & Poor’s 500 Index was +1.81% in the three months ended March 31, 2014.

(1)

The Standard & Poor’s 500 Index consists of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The Standard & Poor’s Ratings Group designates the stocks to be included in the Index on a statistical basis. A particular stock’s weighting in the Index is based on its relative total market value (i.e. its market price per share times the number of shares outstanding.) Stocks may be added or deleted from the Index from time to time.

___________

As stated in the Prospectus dated January 31, 2014 the expense ratio of the Fund is 1.59%.

____________

Web Site

Our website is reynoldsfunds.com. At our website you can access current information about your investment holdings. You must first request a personal identification number (PIN) by calling our shareholder service representatives at 1-800-773-9665. You will be able to view your account list, account detail (including balances), transaction history, distributions, and the current Reynolds Blue Chip Growth Fund net asset value. Additional information available (PIN not needed) includes quarterly updates of the returns of the Blue Chip Fund, top ten holdings, industry percentages, and news articles regarding the Fund. Also, detailed statistics and graphs of past performances from a link to Morningstar for the Blue Chip Fund.

Investment Strategy

We believe that stocks are currently selling at attractive valuations based on historical valuation measures. One of these valuation measures is a company’s price earnings ratio relative to inflation, interest rates and the economic outlook. Another valuation measure is a company’s price earnings ratio relative to its forecasted earnings growth rate (the PEG ratio). Many stocks of high quality companies are currently selling at PE ratios and PEG ratios below their average historical ranges and we believe that they are attractively valued.

The U.S. Economy

The U.S. economic recovery that started in mid-2009 has continued, although at a moderate pace, so far in 2014. The U.S. economic recovery continues to be affected by a number of secular factors that are altering the pace and composition of growth. The economy in 2014 is being affected by sustained subpar growth, low inflation, good consumer spending, higher than normal unemployment, greater prudence and less speculation in lending, and reduced government spending including defense outlays. The U.S. economy is growing, but at a lower than ideal rate. For example, growth of 3.0% or better is needed to meaningfully reduce unemployment, which is currently around 6.3%. The Federal Reserve’s third round of economic stimulus, which involves purchasing open-ended mortgage-backed securities, is continuing in 2014, although at a reduced rate. This stimulus has tended to lower longer term interest rates and added a moderate amount to economic growth. U.S. Gross Domestic Product (GDP) increased 1.9% in 2013, 2.8% in 2012 and 1.8% in 2011. GDP decreased at an estimated inflation-adjusted annual rate of -1.0% in the quarter ended March 31, 2014. For the rest of 2014, the outlook remains for modest, less than ideal growth, accompanied by higher than normal unemployment, modest inflation pressures, a strong private sector and a weaker public sector. The economy will continue to be characterized by fiscal deficits. The U.S. economy is forecast to expand at a 3.0% rate in the second calendar quarter and average close to 3.0% for the rest of the year. GDP is forecast to increase 2.0% for the year ended December 31, 2014.

U.S. inflation numbers have been helped in the last few years by global competition and technology innovations that are helping to lower production and distribution costs. Inflation, as measured by the Consumer Price Index, increased 1.5% in 2013, 2.1% in 2012 and 3.1% in 2011. U.S. inflation is estimated to have increased at a 1.4% annual rate in the first quarter of 2014. U.S. inflation is forecast to increase 1.7% for the year ended December 31, 2014.

There are some current and potential economic and investment negatives at the present time including: (1) budget and debt limit problems; (2) U.S. and worldwide economic growth continues at a slower than ideal rate; (3) unemployment at 6.3% is still high; (4) there are some concerns about U.S. tax and spending policies; (5) mortgage rates are low, but mortgage credit is still somewhat tight; (6) the U.S. deficit needs to be reduced; and (7) problems with Russia and the Ukraine including possible effects on worldwide trade.

Some current and potential economic and investment positives are: (1) monetary policy and financial conditions generally are very supportive of growth; (2) fiscal drag, while still present, is much reduced; (3) public spending should rebound, following the reduction of the federal deficit and significant surpluses at the states level; (4) the economy has grown in the last eighteen quarters and growth should improve in the rest of 2014; (5) many companies have recently reported better than expected first quarter earnings and revenues; (6) the rise in residential property values and in stock market prices has added to net worth and households have strengthened their balance sheets; (7) employment and payrolls are increasing with unemployment currently at 6.3%, the lowest in more than five years – the 288,000 gain in employment in April was the biggest gain since January 2012; (9) Federal Reserve policy makers have said that they will maintain stimulus until the labor market improves further; (10) there has been an increase in the willingness of companies to commit capital as evidenced by the increase in merger and acquisition activity; (11) businesses have been able to use the credit markets to strengthen their balance sheets; (12) current valuations of stocks are below the midpoint of the historical average taking into consideration inflation and interest rates; (13) the U.S. economy currently has better fundamentals than the economies of most other industrialized countries; (14) global growth should accelerate from here; (15) central banks worldwide continue with monetary stimulus to boost growth; and (16) China’s economic growth rate seems to be stabilizing.

The World Economy

The global economic recovery that started in mid-2009 is continuing in 2014. There are better-than-expected developments in the Eurozone, the United Kingdom and Japan. The World Economy is forecast to increase 3.0% in 2014 after increasing 3.0% in 2013, 2.7% in 2012 and 4.0% in 2011.

Economic activity in the Eurozone continues to expand, although a fairly modest rate. There are very few inflationary pressures in the Eurozone at present. The Eurozone’s GDP is forecast to increase 1.2% in 2014, after decreasing 0.4% in 2013, decreasing 0.5% in 2012 and increasing 1.5% in 2011. The United Kingdom is currently the strongest economy in the Eurozone. The United Kingdom’s GDP is forecast to increase 2.8% in 2014, after increasing 1.7% in 2013, 0.3% in 2012 and 0.7% in 2011.

Among larger industrialized economies, Japan’s GDP is forecast to increase 1.4% in 2014, after increasing 1.5% in 2013, 1.9% in 2012 and decreasing 0.7% in 2011. Korea’s GDP is forecast to increase 3.2% in 2014 after increasing 3.0% in 2013, 2.0% in 2012 and 3.6% in 2011. Canada’s GDP is forecast to increase 2.0% in 2014, after increasing 2.0% in 2013, 1.8% in 2012 and 2.5% in 2011.

The biggest developing economies are many times referred to as the “BRIC” economy, which is short for Brazil, Russia, India, and China. These economies are currently and are forecast to grow slower than was estimated six months ago.

China has the strongest growth among “developing economies”. China’s population is approximately 19% of the world’s total population of approximately seven billion. In the second quarter of 2010, China overtook Japan and became the world’s second largest economy after the U.S. It is the world’s fastest growing major economy. Many economists believe that China has a particularly good long-term outlook. Near term, however, there have been cross currents in China’s economic outlook. China’s GDP is forecast to increase 7.2% in 2014, after increasing 7.7% in 2013, 7.7% in 2012 and 6.4% in 2011.

India’s population is approximately 17% of the world’s population. It is the world’s second fastest growing major economy. India’s GDP is forecast to increase 5.0% in 2014 after increasing 4.6% in 2013, 5.0% in 2012 and 6.6% in 2011.

Brazil is Latin America’s biggest economy. GDP is forecast to increase 2.3% in 2014 after increasing 2.3% in 2013, 0.9% in 2012 and 2.7% in 2011. Russia’s GDP is forecast to decrease in 2014, after increasing 1% in 2013, 3.4% in 2012 and 4.3% in 2011.

Many worldwide larger multinational companies should be well positioned to benefit long-term from worldwide growth. The long-term strategy of the Reynolds Blue Chip Growth Fund is to be structured to benefit from this worldwide growth by investing in many of these leading multinational growth companies. The Blue Chip Fund is positioned to participate in long-term worldwide growth trends through investments in multinational U.S. headquartered companies. In addition, the Fund has investments in leading foreign headquartered companies, whose stocks in the form of American Depositary Receipts (ADRs) trade in the United States. These ADRs are denominated in dollars and they must use U.S. GAAP (Generally Accepted Accounting Principles) accounting to qualify as an ADR. The Blue Chip Fund may hold up to 35% of its assets in ADRs.

Opportunistic Investing in Companies of Various Sizes and Diversified Among Various Industries

The Reynolds Blue Chip Growth Fund usually invests in companies of various sizes as classified by their market capitalizations. A company’s market capitalization is calculated by taking the number of shares the company has outstanding multiplied by its current market price. Other considerations in selecting companies for the Fund include revenue growth rates, product innovations, financial strength, management’s knowledge and experience, plus the overall economic and geopolitical environments and interest rates. The Fund’s investments are diversified among various industries.

The long-term strategy of the Reynolds Blue Chip Growth Fund is to emphasize investment in worldwide “blue chip” growth companies. These companies are defined as companies with a minimum market capitalization of $1 billion. In the long-term these companies build value as their earnings grow. This growth in value should ultimately be recognized in higher stock prices for these companies.

Industry Sectors(2) as of March 31, 2014

(2)	The Global Industry Classification Standard (“GICS®”) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”). GICS® is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.

Low Long-Term Interest Rates by Historical Standards are a Significant Positive for Stock Valuations

Long-term interest rates remain near historically low levels. Low long-term interest rates usually result in higher stock valuations for many reasons including:

(1)

Long-term borrowing costs of corporations are lower resulting in higher business confidence and profits.

(2)

Long-term borrowing costs of individuals are lower which increases consumer confidence and spending.

(3)

A company’s stock is usually valued by placing a present value on that company’s future stream of earnings and dividends. The present value is higher when interest and inflation rates are low.

Linked Money Market Fund

The First American Treasury Obligations Fund is a money market fund offered by an affiliate of our transfer agent, U.S. Bancorp Fund Services, LLC. This Fund is offered as a money market alternative to our shareholders. The First American Treasury Obligations Fund offers many free shareholder conveniences including automatic investment and withdrawal plans and check writing access to your funds and is linked to your holdings in the Reynolds Blue Chip Growth Fund. This Fund is also included on your quarterly statements.

Information about the Reynolds Blue Chip Growth Fund and the First American Treasury Obligations Fund

Reynoldsfunds.com website: You can access current information about your investment holdings via our website, reynoldsfunds.com. You will be able to view your account list, account detail (including balances), transaction history, distributions, and the current Reynolds Blue Chip Growth Fund net asset value. Additional information available (PIN not needed) includes quarterly updates of the returns of the Blue Chip Fund, top ten holdings, industry percentages, and news articles regarding the Fund. Also, detailed statistics and graphs of past performances from a link to Morningstar for the Blue Chip Fund.

For automatic current daily net asset values: Call 1-800-773-9665 (1-800-7REYNOLDS) twenty-four hours a day, seven days a week and press “any key” then “1”. The updated current net asset value for the Blue Chip Fund is usually available each business day after 5 P.M. (PST).

For the Reynolds Blue Chip Growth Fund shareholders to automatically access their current account information: Call 1-800-773-9665 (twenty-four hours a day, seven days a week), press “any key” then “2” and enter your 16 digit account number which appears at the top right of your statement.

To speak to a Fund representative regarding the current daily net asset value, current account information and any other questions: Call 1-800-773-9665 and press “0” from 6 A.M. to 5 P.M. (PST).

Shareholder statement frequency: Consolidated statements summarizing the Blue Chip Fund and First American Treasury Obligations Fund accounts held by a shareholder are sent quarterly. In addition, individual Blue Chip Fund statements are sent whenever a transaction occurs. These transactions are: (1) statements are sent for the Blue Chip Fund or First American Treasury Obligations Fund when a shareholder purchases or redeems shares; (2) Blue Chip Fund statements are sent if, and when, any ordinary income or capital gains are distributed.

Tax reporting: Individual 1099 forms, which summarize any dividend income and any long- or short-term capital gains, are sent annually to shareholders each January. The percentage of income earned from various government securities, if any, for the Blue Chip Fund and the First American Treasury Obligations Fund are also reported in January.

Minimum investment: $1,000 for regular and retirement accounts ($100 for additional investments for all accounts – except for the Automatic Investment Plan, which is $50 for regular and retirement plan accounts).

Retirement plans: All types are offered including Traditional IRA, Roth IRA, Coverdell Education Savings Account, SIMPLE IRA Plan, and SEP IRA.

Automatic Investment Plan: There is no charge to automatically debit your checking account to invest in the Blue Chip Fund or the First American Treasury Obligations Fund ($50 minimum for either of these Funds) at periodic intervals to make automatic purchases in either of these Funds. This is useful for dollar cost averaging for the Blue Chip Fund.

Systematic Withdrawal Plan: For shareholders with a $10,000 minimum starting balance, there is no charge to automatically redeem shares ($100 minimum) in the Blue Chip Fund or the First American Treasury Obligations Fund as often as monthly and send a check to you or transfer funds to your bank account.

Free Check Writing: Free check writing ($100 minimum) is offered for accounts invested in the First American Treasury Obligations Fund.

Exchanges or regular redemptions between the Blue Chip Fund and the First American Treasury Obligations Fund: As often as desired – no charge.

NASDAQ symbols: Reynolds Blue Chip Growth Fund – RBCGX and First American Treasury Obligations Fund – FATXX.

Portfolio Manager: Frederick Reynolds is the portfolio manager of the Reynolds Blue Chip Growth Fund. He has been the portfolio manager of the Fund since its inception in 1988.

The Reynolds Blue Chip Growth Fund and the First American Treasury Obligations Fund are No-Load: No front-end sales commissions or deferred sales charges (“loads”) are charged. Over 40% of all mutual funds impose these marketing charges that are ultimately paid by the shareholder. These marketing charges are either: (1) a front-end fee or “load” in which up to 5% of a shareholder’s assets are deducted from the original investment (some funds even charge a fee when a shareholder reinvests capital gains or dividends); or (2) a back-end penalty fee or “load” which is typically deducted from a shareholder’s account if a shareholder redeems within five years of the original investment. These fees reduce a shareholder’s return. The Blue Chip Fund and First American Treasury Obligations Fund are No-Load as they do not have these extra charges.

We appreciate your continued confidence in the Reynolds Blue Chip Growth Fund and would like to welcome our new shareholders. We look forward to strong results in the future.

Sincerely,

Frederick L. Reynolds

President

____________

This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Reynolds Blue Chip Growth Fund unless accompanied or preceded by the Fund’s current prospectus.

Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance data current to the most recent month-end may be obtained by visiting www.reynoldsfunds.com or by calling 1-800-773-9665.

Investors in the Fund may lose money. There are risks associated with investments in the types of securities in which the Fund invests. These risks include:

Market Risk – The prices of the stocks in which the Fund invests may decline for a number of reasons. These reasons include factors that are specific to one or more stocks in which the Fund invests as well as factors that affect the equity securities markets generally. The price declines may be steep, sudden and/or prolonged.

Growth Investing Risk – The investment adviser may be wrong in its assessment of a company’s potential for growth and the growth stocks the Fund holds may not grow as the investment adviser anticipates. Finally, there are periods when investing in growth stocks falls out of favor with investors and these stocks may underperform.

Smaller and Medium Capitalization Companies Risk – The Fund invests in smaller companies, which involve additional risks such as limited liquidity and greater volatility.

Foreign Securities Risk – The Fund invests in foreign securities which involve greater volatility and political, economic and currency risks and different accounting methods.

Additional risks associated with investing in the Fund are as follows: Technology Companies Risk, Consumer Discretionary Companies Risk, and Portfolio Turnover Risk. For details regarding these risks, please refer to the Fund’s Prospectus or Summary Prospectus dated January 31, 2014.

Distributed by Rafferty Capital Markets, LLC

Reynolds Blue Chip Growth Fund

EXPENSE EXAMPLE (Unaudited)

As a shareholder of the Reynolds Blue Chip Growth Fund, you do not incur (except as described below) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees, but do incur ongoing costs, including management fees; distribution [and/or service] (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2013 through March 31, 2014.

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

In addition to the costs highlighted and described below, the only Fund transaction costs you might currently incur would be wire fees ($15 per wire), if you choose to have proceeds from a redemption wired to your bank account instead of receiving a check. Additionally, U.S. Bank charges an annual processing fee ($15) if you maintain an IRA account with the Fund. To determine your total costs of investing in the Fund, you would need to add any applicable wire or IRA processing fees you’ve incurred during the period to the costs provided in the example below.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account	Ending Account	Expenses Paid During
	Value 10/01/13	Value 3/31/14	Period* 10/01/13-3/31/14
Reynolds Blue Chip Growth Fund Actual	$1,000.00	$1,089.00	$8.07
Hypothetical (5% return before expenses)	$1,000.00	$1,017.20	$7.80

*	Expenses are equal to the Fund’s annualized expense ratio of 1.55% multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period between October 1, 2013 and March 31, 2014).

Reynolds Blue Chip Growth Fund

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2014 (Unaudited)

ASSETS:
Investments in securities, at value (cost $138,048,269)	$	196,419,653
Cash		453,626
Receivable from investments sold		4,591,427
Receivable from shareholders for purchases		183,446
Dividends receivable		103,643
Prepaid expenses		103,326
Total assets		201,855,121
LIABILITIES:
Payable for investments purchased		1,547,005
Payable to shareholders for redemptions		610,938
Payable to adviser for management fees		168,996
Payable for distribution expenses		6,980
Other liabilities		120,194
Total liabilities		2,454,113
NET ASSETS	$	199,401,008
NET ASSETS CONSISTS OF:
Capital Stock, $0.01 par value; 40,000,000 shares authorized; 2,679,638 shares outstanding	$	133,567,381
Net unrealized appreciation on investments		58,371,384
Accumulated undistributed net realized gain on investments		8,112,066
Accumulated undistributed net investment loss		(649,823	)
Net assets	$	199,401,008
CALCULATION OF NET ASSET VALUE PER SHARE:
Net asset value, offering and redemption price per share ($199,401,008 / 2,679,638 shares outstanding)	$	74.41

The accompanying notes to financial statements are an integral part of this statement.

SCHEDULE OF INVESTMENTS

March 31, 2014 (Unaudited)

Shares			Value

LONG-TERM INVESTMENTS — 98.5% (a)

COMMON STOCKS — 97.9% (a)

		Aerospace & Defense — 2.8%
	1,200	AAR Corporation	$	31,140
	4,600	B/E Aerospace, Inc.*		399,234
	4,400	The Boeing Company		552,156
	3,800	Curtiss-Wright Corporation		241,452
	1,300	Esterline Technologies Corporation*		138,502
	8,200	Exelis, Inc.		155,882
	14,300	GenCorp, Inc.*		261,261
	2,800	General Dynamics Corporation		304,976
	400	HEICO Corporation		24,064
	11,600	Hexcel Corporation*		505,064
	3,400	Honeywell International, Inc.		315,384
	2,400	Huntington Ingalls Industries, Inc.		245,424
	3,000	L-3 Communications Holdings, Inc.		354,450
	1,000	Lockheed Martin Corporation		163,240
	5,300	Northrop Grumman Corporation		653,914
	500	Precision Castparts Corporation		126,380
	1,000	Raytheon Company		98,790
	3,500	Rockwell Collins, Inc.		278,845
	1,200	Spirit AeroSystems Holdings, Inc.*		33,828
	2,200	Teledyne Technologies, Inc.*		214,126
	6,100	Textron, Inc.		239,669
	400	TransDigm Group, Inc.		74,080

The accompanying notes to financial statements are an integral part of this schedule.

Reynolds Blue Chip Growth Fund

SCHEDULE OF INVESTMENTS (Continued)

March 31, 2014 (Unaudited)

Shares			Value

LONG-TERM INVESTMENTS — 98.5% (a) (Continued)

COMMON STOCKS — 97.9% (a) (Continued)

		Aerospace & Defense — 2.8% (Continued)
	1,900	United Technologies Corporation	$	221,996
				5,633,857

		Air Freight & Logistics — 0.3%
	900	Expeditors International
		of Washington, Inc.		35,667
	2,600	FedEx Corporation		344,656
	1,900	United Parcel Service, Inc., Class B		185,022
				565,345

		Airlines — 2.9%
	7,200	Alaska Air Group, Inc.		671,832
	5,400	Allegiant Travel Company		604,422
	23,200	American Airlines Group, Inc.*		849,120
	200	Copa Holdings S.A., Class A		29,038
	26,400	Delta Air Lines, Inc.		914,760
	29,500	Hawaiian Holdings, Inc.*		411,820
	4,500	JetBlue Airways Corporation*		39,105
	4,800	Ryanair Holdings plc - SP-ADR*		282,288
	2,900	SkyWest, Inc.		37,004
	42,700	Southwest Airlines Company		1,008,147
	10,100	Spirit Airlines, Inc.*		599,940
	7,200	United Continental Holdings, Inc.*		321,336
				5,768,812

		Auto Components — 1.0%
	1,200	Allison Transmission Holdings, Inc.		35,928
	3,600	BorgWarner, Inc.		221,292
	1,500	Delphi Automotive plc		101,790
	600	Dorman Products, Inc.*		35,436
	1,500	Drew Industries, Inc.		81,300
	3,100	Gentherm, Inc.*		107,632
	5,900	The Goodyear Tire & Rubber Company		154,167
	4,200	Johnson Controls, Inc.		198,744
	1,200	Lear Corporation		100,464
	1,000	Magna International, Inc.		96,310
	400	Strattec Security Corporation		28,892
	4,800	Tenneco, Inc.*		278,736
	5,800	TRW Automotive Holdings Corporation*		473,396
				1,914,087

		Automobiles — 0.5%
	2,600	Harley-Davidson, Inc.		173,186
	3,200	Tata Motors, Ltd. - SP-ADR		113,312
	3,650	Tesla Motors, Inc.*		760,842
				1,047,340

		Beverages — 1.1%
	1,700	The Boston Beer Company, Inc., Class A*		416,041
	7,600	Coca-Cola Enterprises, Inc.		362,976
	300	Coca-Cola Femsa,
		S.A.B. de C.V. - SP-ADR		31,656
	6,800	Constellation Brands, Inc., Class A*		577,796
	7,600	Dr Pepper Snapple Group, Inc.		413,896
	3,600	Monster Beverage Corporation*		250,020
	2,200	PepsiCo, Inc.		183,700
				2,236,085

		Biotechnology — 4.3%
	3,500	ACADIA Pharmaceuticals, Inc.*		85,155
	200	Acceleron Pharma, Inc.*		6,900
	2,300	Alexion Pharmaceuticals, Inc.*		349,899
	11,600	Alkermes plc*^		511,444
	3,800	Amgen, Inc.		468,692
	6,900	ARIAD Pharmaceuticals, Inc.*		55,614
	600	Array BioPharma, Inc.*		2,820
	4,100	BioCryst Pharmaceuticals, Inc.*		43,378
	2,500	Biogen Idec, Inc.*		764,675
	2,400	BioMarin Pharmaceutical, Inc.*		163,704
	5,800	Celgene Corporation*		809,680
	600	Clovis Oncology, Inc.*		41,562
	400	Cubist Pharmaceuticals, Inc.*		29,260
	2,200	Dendreon Corporation*		6,578
	1,100	Exact Sciences Corporation*		15,587
	1,100	Exelixis, Inc.*		3,894
	6,100	Geron Corporation*		12,688
	17,800	Gilead Sciences, Inc.*		1,261,308
	2,000	Grifols S.A. - ADR		82,600
	3,300	Halozyme Therapeutics, Inc.*		41,910
	500	ImmunoGen, Inc.*		7,465
	13,500	Incyte Corporation*		722,520
	100	Intercept Pharmaceuticals, Inc.*		32,979
	8,100	Isis Pharmaceuticals, Inc.*		350,001
	3,200	Keryx Biopharmaceuticals, Inc.*		54,528
	3,100	Ligand Pharmaceuticals, Inc.*		208,506
	2,000	Medivation, Inc.*		128,740
	7,000	NPS Pharmaceuticals, Inc.*		209,510
	13,600	Orexigen Therapeutics, Inc.*		88,400
	11,300	Peregrine Pharmaceuticals, Inc.*		21,470
	5,800	Pharmacyclics, Inc.*		581,276
	1,100	Puma Biotechnology, Inc.*		114,554
	2,600	Raptor Pharmaceuticals Corporation*		26,000
	1,200	Regeneron Pharmaceuticals, Inc.*		360,336
	5,800	Repligen Corporation*		74,588

The accompanying notes to financial statements are an integral part of this schedule.

Reynolds Blue Chip Growth Fund

SCHEDULE OF INVESTMENTS (Continued)

March 31, 2014 (Unaudited)

Shares			Value

LONG-TERM INVESTMENTS — 98.5% (a) (Continued)

COMMON STOCKS — 97.9% (a) (Continued)

		Biotechnology — 4.3% (Continued)
	6,500	Sarepta Therapeutics, Inc.*	$	156,195
	3,800	Seattle Genetics, Inc.*		173,128
	1,300	Synageva BioPharma Corporation*		107,861
	1,700	Theravance, Inc.*		52,598
	2,300	United Therapeutics Corporation*		216,269
	1,100	Vertex Pharmaceuticals, Inc.*		77,792
	1,700	XOMA Corporation*		8,857
				8,530,921

		Building Products — 0.7%
	7,700	A.O. Smith Corporation		354,354
	1,200	AAON, Inc.		33,444
	1,400	Armstrong World Industries, Inc.*		74,550
	10,900	Fortune Brands Home & Security, Inc.		458,672
	2,300	Lennox International, Inc.		209,093
	5,600	Masco Corporation		124,376
	2,400	USG Corporation*		78,528
				1,333,017

		Capital Markets — 5.0%
	1,700	Affiliated Managers Group, Inc.*		340,085
	6,900	Ameriprise Financial, Inc.		759,483
	2,100	Artisan Partners Asset
		Management, Inc., Class A		134,925
	6,000	The Bank of New York
		Mellon Corporation		211,740
	1,100	BlackRock, Inc.		345,928
	25,200	The Charles Schwab Corporation		688,716
	4,900	Cowen Group, Inc., Class A*		21,609
	29,000	ETRADE Financial Corporation		667,580
	1,800	Eaton Vance Corporation		68,688
	3,700	Evercore Partners, Inc., Class A		204,425
	3,900	Federated Investors, Inc., Class B		119,106
	11,100	Financial Engines, Inc.		563,658
	4,600	Franklin Resources, Inc.		249,228
	4,800	The Goldman Sachs Group, Inc.		786,480
	700	HFF, Inc., Class A		23,527
	8,700	Invesco, Ltd.		321,900
	11,600	Janus Capital Group, Inc.		126,092
	5,900	Legg Mason, Inc.		289,336
	1,300	LPL Financial Holdings, Inc.		68,302
	12,600	Morgan Stanley		392,742
	1,500	Northern Trust Corporation		98,340
	6,100	Piper Jaffray Companies, Inc.*		279,380
	4,700	T. Rowe Price Group, Inc.		387,045
	6,500	Raymond James Financial, Inc.		363,545
	3,500	Safeguard Scientifics, Inc.*		77,630
	9,900	SEI Investments Company		332,739
	1,100	State Street Corporation		76,505
	500	Stifel Financial Corporation*		24,880
	21,300	TD Ameritrade Holding Corporation		723,135
	1,400	Triangle Capital Corporation		36,246
	1,000	UBS AG*		20,720
	2,700	Virtus Investment Partners, Inc.*		467,559
	9,100	Waddell & Reed Financial, Inc., Class A		669,942
	3,000	WisdomTree Investments, Inc.*		39,360
				9,980,576

		Chemicals — 3.2%
	300	Agrium, Inc.		29,256
	800	Air Products & Chemicals, Inc.		95,232
	2,700	Cabot Corporation		159,462
	3,300	Chemtura Corporation*		83,457
	4,300	The Dow Chemical Company		208,937
	2,000	E.I. du Pont de Nemours & Company		134,200
	3,500	Eastman Chemical Company		301,735
	4,300	Ecolab, Inc.		464,357
	3,000	Ferro Corporation*		40,980
	8,600	FMC Corporation		658,416
	6,400	Huntsman Corporation		156,288
	4,100	International Flavors & Fragrances, Inc.		392,247
	3,200	LyondellBasell Industries N.V., Class A		284,608
	2,700	Monsanto Company		307,179
	800	NewMarket Corporation		312,624
	8,100	Olin Corporation		223,641
	3,200	PolyOne Corporation		117,312
	7,100	RPM International, Inc.		297,064
	5,500	The Scotts Miracle-Gro
		Company, Class A		337,040
	1,600	The Sherwin-Williams Company		315,408
	7,400	Sigma-Aldrich Corporation		691,012
	6,600	The Valspar Corporation		475,992
	2,700	W.R. Grace & Company*		267,759
				6,354,206

		Commercial Banks — 2.0%
	13,500	Bank of America Corporation		232,200
	1,200	Bank of Hawaii Corporation		72,732
	4,900	Bank of the Ozarks, Inc.		333,494
	700	BB&T Corporation		28,119
	9,200	CapitalSource, Inc.		134,228
	400	CIT Group, Inc.		19,608

The accompanying notes to financial statements are an integral part of this schedule.

Reynolds Blue Chip Growth Fund

SCHEDULE OF INVESTMENTS (Continued)

March 31, 2014 (Unaudited)

Shares			Value

LONG-TERM INVESTMENTS — 98.5% (a) (Continued)

COMMON STOCKS — 97.9% (a) (Continued)

		Commercial Banks — 2.0% (Continued)
	4,600	Citigroup, Inc.	$	218,960
	700	Columbia Banking System, Inc.		19,964
	2,400	Comerica, Inc.		124,320
	2,800	Eagle Bancorp, Inc.*		101,080
	7,200	East West Bancorp, Inc.		262,800
	4,900	Enterprise Financial Services Corporation		98,343
	10,500	Fifth Third Bancorp		240,975
	600	First Republic Bank		32,394
	8,900	FirstMerit Corporation		185,387
	1,800	Glacier Bancorp, Inc.		52,326
	17,300	Huntington Bancshares, Inc.		172,481
	1,700	JPMorgan Chase & Company		103,207
	18,300	KeyCorp		260,592
	500	Mercantile Bank Corporation		10,310
	900	PNC Financial Services Group, Inc.		78,300
	600	Prosperity Bancshares, Inc.		39,690
	21,300	Regions Financial Corporation		236,643
	2,900	SunTrust Banks, Inc.		115,391
	20,200	Synovus Financial Corporation		68,478
	4,500	Texas Capital Bancshares, Inc.*		292,230
	600	The Toronto-Dominion Bank		28,170
	3,400	U.S. Bancorp		145,724
	4,400	Umpqua Holdings Corporation		82,016
	1,500	Webster Financial Corporation		46,590
	3,300	Wells Fargo & Company		164,142
				4,000,894

		Commercial Services & Supplies — 1.0%
	7,700	Cintas Corporation		458,997
	1,200	Copart, Inc.*		43,668
	18,432	R.R. Donnelley & Sons Company		329,933
	5,500	EnerNOC, Inc.*		122,540
	6,900	KAR Auction Services, Inc.		209,415
	5,100	Herman Miller, Inc.		163,863
	2,800	Mobile Mini, Inc.		121,408
	1,500	Pitney Bowes, Inc.		38,985
	4,500	Tyco International, Ltd.		190,800
	4,600	Waste Connections, Inc.		201,756
	1,800	Waste Management, Inc.		75,726
				1,957,091

		Communications Equipment — 1.9%
	1,500	ADTRAN, Inc.		36,615
	7,500	Alcatel-Lucent - SP-ADR		29,250
	1,200	ARRIS Group, Inc.*		33,816
	23,400	Brocade Communications Systems, Inc.*		248,274
	6,400	CalAmp Corporation*		178,368
	3,400	F5 Networks, Inc.*		362,542
	8,800	Finisar Corporation*		233,288
	900	Harmonic, Inc.*		6,426
	3,500	Harris Corporation		256,060
	5,900	Infinera Corporation*		53,572
	700	InterDigital, Inc.		23,177
	9,600	Ituran Location and Control, Ltd.		239,520
	1,600	JDS Uniphase Corporation*		22,400
	7,000	Juniper Networks, Inc.*		180,320
	1,400	Motorola Solutions, Inc.		90,006
	1,700	NETGEAR, Inc.*		57,341
	1,400	Plantronics, Inc.		62,230
	6,100	Polycom, Inc.*		83,692
	8,800	QUALCOMM, Inc.		693,968
	8,600	RADWARE, Ltd.*		152,048
	4,600	Riverbed Technology, Inc.*		90,666
	1,200	Ruckus Wireless, Inc.*		14,592
	1,500	Sierra Wireless, Inc.*		32,745
	7,500	Sonus Networks, Inc.*		25,275
	10,100	Ubiquiti Networks, Inc.*		459,247
	400	ViaSat, Inc.*		27,616
				3,693,054

		Computers & Peripherals — 1.8%
	4,300	3D Systems Corporation*		254,345
	2,500	Apple, Inc.		1,341,850
	1,400	BlackBerry, Ltd.*		11,312
	1,300	Diebold, Inc.		51,857
	6,800	Electronics for Imaging, Inc.*		294,508
	900	EMC Corporation		24,669
	3,200	Hewlett-Packard Company		103,552
	600	Lexmark International, Inc., Class A		27,774
	6,500	Nokia Oyj - SP-ADR*		47,710
	5,600	SanDisk Corporation		454,664
	6,000	Seagate Technology plc		336,960
	1,300	Stratasys, Ltd.*		137,917
	4,500	Western Digital Corporation		413,190
				3,500,308

		Construction & Engineering — 0.5%
	3,200	Chicago Bridge & Iron
		Company N.V. NYS		278,880
	2,600	EMCOR Group, Inc.		121,654
	1,300	Fluor Corporation		101,049
	7,800	Jacobs Engineering Group, Inc.*		495,300

The accompanying notes to financial statements are an integral part of this schedule.

Reynolds Blue Chip Growth Fund

SCHEDULE OF INVESTMENTS (Continued)

March 31, 2014 (Unaudited)

Shares			Value

LONG-TERM INVESTMENTS — 98.5% (a) (Continued)

COMMON STOCKS — 97.9% (a) (Continued)

		Construction & Engineering — 0.5% (Continued)
	700	Quanta Services, Inc.*	$	25,830
				1,022,713

		Construction Materials — 0.2%
	1,500	CaesarStone Sdot-Yam, Ltd.		81,570
	300	Eagle Materials, Inc.		26,598
	1,000	Martin Marietta Materials, Inc.		128,350
	2,900	Texas Industries, Inc.*		259,898
				496,416

		Consumer Finance — 0.8%
	6,500	American Express Company		585,195
	2,000	Capital One Financial Corporation		154,320
	12,800	Discover Financial Services		744,832
	500	Encore Capital Group, Inc.*		22,850
	500	World Acceptance Corporation*		37,540
				1,544,737

		Consumer Services - Diversified — 0.1%
	1,200	New Oriental Education & Technology
		Group, Inc. - SP-ADR		35,220
	4,100	Sotheby’s		178,555
	1,900	TAL Education Group - ADR*		42,788
				256,563

		Containers & Packaging — 0.4%
	200	Avery Dennison Corporation		10,134
	3,700	Ball Corporation		202,797
	3,300	Bemis Company, Inc.		129,492
	1,800	Owens-Illinois, Inc.*		60,894
	3,800	Packaging Corporation of America		267,406
	3,500	Sealed Air Corporation		115,045
	2,100	Sonoco Products Company		86,142
				871,910

		Distributors — 0.1%
	1,300	Genuine Parts Company		112,905


		Electric Utilities — 0.0%
	1,000	Xcel Energy, Inc.		30,360


		Electrical Equipment — 1.1%
	1,800	AMETEK, Inc.		92,682
	3,800	Capstone Turbine Corporation*		8,094
	2,600	Eaton Corporation plc		195,312
	2,300	Emerson Electric Company		153,640
	3,100	Franklin Electric Company, Inc.		131,812
	3,400	FuelCell Energy, Inc.*		8,432
	1,800	GrafTech International, Ltd.*		19,656
	2,800	Hubbell, Inc., Class B		335,636
	500	PowerSecure International, Inc.*		11,720
	2,400	Rockwell Automation, Inc.		298,920
	2,600	Roper Industries, Inc.		347,126
	4,500	Sensata Technologies Holding N.V.*		191,880
	7,800	Solarcity Corporation*		488,436
				2,283,346

		Electronic Equipment,
		Instruments & Components — 1.1%
	2,200	Amphenol Corporation		201,630
	500	Arrow Electronics, Inc.*		29,680
	1,200	Avnet, Inc.		55,836
	300	Belden, Inc.		20,880
	4,300	Benchmark Electronics, Inc.*		97,395
	2,500	CDW Corporation of Delaware		68,600
	700	Checkpoint Systems, Inc.*		9,394
	1,500	Cognex Corporation*		50,790
	1,200	Coherent, Inc.*		78,420
	2,500	Corning, Inc.		52,050
	14,100	Flextronics International, Ltd.*		130,284
	1,600	FLIR Systems, Inc.		57,600
	6,000	InvenSense, Inc.*		142,020
	1,900	Jabil Circuit, Inc.		34,200
	400	Littelfuse, Inc.		37,456
	2,800	Measurement Specialties, Inc.*		189,980
	3,200	Methode Electronics, Inc.		98,112
	800	Newport Corporation*		16,544
	1,400	OSI Systems, Inc.*		83,804
	500	Rogers Corporation*		31,210
	8,900	Sanmina Corporation*		155,305
	6,900	TE Connectivity, Ltd.		415,449
	2,100	Trimble Navigation, Ltd.*		81,627
	2,000	Zebra Technologies
		Corporation, Class A*		138,820
				2,277,086

		Energy Equipment & Services — 0.8%
	2,100	Baker Hughes, Inc.		136,542
	600	Exterran Holdings, Inc.		26,328
	1,600	FMC Technologies, Inc.*		83,664
	2,300	Halliburton Company		135,447
	3,000	Helmerich & Payne, Inc.		322,680
	4,900	Nabors Industries, Ltd.		120,785
	1,400	Noble Corporation plc		45,836
	3,500	Parker Drilling Company*		24,815
	7,000	Patterson-UTI Energy, Inc.		221,760

The accompanying notes to financial statements are an integral part of this schedule.

Reynolds Blue Chip Growth Fund

SCHEDULE OF INVESTMENTS (Continued)

March 31, 2014 (Unaudited)

Shares			Value

LONG-TERM INVESTMENTS — 98.5% (a) (Continued)

COMMON STOCKS — 97.9% (a) (Continued)

		Energy Equipment & Services — 0.8% (Continued)
	800	Rowan Companies plc, Class A*	$	26,944
	5,100	RPC, Inc.		104,142
	1,800	Schlumberger, Ltd.		175,500
	5,400	Weatherford International, Ltd.*		93,744
				1,518,187

		Financial Services - Diversified — 0.6%
	4,500	Berkshire Hathaway, Inc., Class B*		562,365
	1,700	CBOE Holdings, Inc.		96,220
	1,500	CME Group, Inc.		111,015
	700	Interactive Brokers Group, Inc., Class A		15,169
	600	IntercontinentalExchange Group, Inc.		118,698
	1,700	Leucadia National Corporation		47,600
	1,600	McGraw Hill Financial, Inc.		122,080
	500	MSCI, Inc.*		21,510
	3,400	The NASDAQ OMX Group, Inc.		125,596
	300	Texas Pacific Land Trust		38,850
				1,259,103

		Food & Staples Retailing — 1.0%
	5,500	Costco Wholesale Corporation		614,240
	4,800	CVS Caremark Corporation		359,328
	300	PriceSmart, Inc.		30,279
	29,900	Rite Aid Corporation*		187,473
	700	Safeway, Inc.		25,858
	1,200	United Natural Foods, Inc.*		85,104
	4,600	Walgreen Company		303,738
	1,400	Wal-Mart Stores, Inc.		107,002
	5,900	Whole Foods Market, Inc.		299,189
				2,012,211

		Food Products — 0.9%
	400	Diamond Foods, Inc.*		13,972
	500	The Hain Celestial Group, Inc.*		45,735
	300	The Hershey Company		31,320
	3,100	Hormel Foods Corporation		152,737
	11,400	Inventure Foods, Inc.*		159,372
	1,200	The J.M. Smucker Company		116,688
	3,400	Keurig Green Mountain, Inc.		359,006
	600	Lifeway Foods, Inc.		8,820
	500	McCormick & Company, Inc.		35,870
	1,100	Mead Johnson Nutrition Company		91,454
	1,500	Mondelez International, Inc., Class A		51,825
	4,300	Pilgrim’s Pride Corporation*		89,956
	5,800	SunOpta, Inc.*		68,498
	2,500	TreeHouse Foods, Inc.*		179,975
	2,800	Tyson Foods, Inc., Class A		123,228
	6,800	WhiteWave Foods Company, Class A*		194,072
				1,722,528

		Gas Utilities — 0.0%
	750	ONE Gas, Inc.*		26,947
	1,300	UGI Corporation		59,293
				86,240

		Health Care Equipment & Supplies — 2.4%
	1,600	Abbott Laboratories		61,616
	2,600	Accuray, Inc.*		24,960
	1,600	Align Technology, Inc.*		82,864
	4,800	AtriCure, Inc.*		90,288
	800	C.R. Bard, Inc.		118,384
	1,000	Baxter International, Inc.		73,580
	2,900	Becton, Dickinson and Company		339,532
	27,000	Boston Scientific Corporation*		365,040
	4,500	CareFusion Corporation*		180,990
	3,500	Covidien plc		257,810
	1,200	DENTSPLY International, Inc.		55,248
	400	Edwards Lifesciences Corporation*		29,668
	5,300	Endologix, Inc.*		68,211
	400	Greatbatch, Inc.*		18,368
	700	IDEXX Laboratories, Inc.*		84,980
	4,400	Medtronic, Inc.		270,776
	1,000	Natus Medical, Inc.*		25,800
	800	Quidel Corporation*		21,840
	1,700	ResMed, Inc.		75,973
	1,800	Smith & Nephew plc - SP-ADR		137,664
	19,800	The Spectranetics Corporation*		600,138
	5,700	St. Jude Medical, Inc.		372,723
	4,700	Stryker Corporation		382,909
	2,000	Symmetry Medical, Inc.*		20,120
	8,000	Varian Medical Systems, Inc.*		671,920
	4,100	Zimmer Holdings, Inc.		387,778
				4,819,180

		Health Care Providers & Services — 2.8%
	4,200	Acadia Healthcare Company, Inc.*		189,504
	1,700	Addus HomeCare Corporation*		39,185
	3,500	Aetna, Inc.		262,395
	700	Air Methods Corporation*		37,401
	1,100	AmerisourceBergen Corporation		72,149
	4,800	AMN Healthcare Services, Inc.*		65,952
	6,000	Cardinal Health, Inc.		419,880
	700	Catamaran Corporation*		31,332
	400	Cigna Corporation		33,492

The accompanying notes to financial statements are an integral part of this schedule.

Reynolds Blue Chip Growth Fund

SCHEDULE OF INVESTMENTS (Continued)

March 31, 2014 (Unaudited)

Shares			Value

LONG-TERM INVESTMENTS — 98.5% (a) (Continued)

COMMON STOCKS — 97.9% (a) (Continued)

		Health Care Providers &
		Services — 2.8% (Continued)
	12,400	CorVel Corporation*	$	617,024
	1,600	DaVita HealthCare Partners, Inc.*		110,160
	800	The Ensign Group, Inc.		34,912
	5,200	Express Scripts Holding Company*		390,468
	1,200	HCA Holdings, Inc.*		63,000
	3,000	Humana, Inc.		338,160
	300	Laboratory Corporation
		of America Holdings*		29,463
	1,900	LifePoint Hospitals, Inc.*		103,645
	4,600	McKesson Corporation		812,222
	500	MEDNAX, Inc.*		30,990
	600	Omnicare, Inc.		35,802
	2,200	Patterson Companies, Inc.		91,872
	6,400	Henry Schein, Inc.*		763,968
	1,700	Tenet Healthcare Corporation*		72,777
	1,800	UnitedHealth Group, Inc.		147,582
	4,700	Universal Health Services, Inc., Class B		385,729
	3,300	VCA Antech, Inc.*		106,359
	2,500	WellPoint, Inc.		248,875
				5,534,298

		Health Care Technology — 0.5%
	1,800	athenahealth, Inc.*		288,432
	6,900	Cerner Corporation*		388,125
	1,000	Computer Programs & Systems, Inc.		64,600
	6,600	MedAssets, Inc.*		163,086
	1,700	Medidata Solutions, Inc.*		92,378
				996,621

		Hotels, Restaurants & Leisure — 6.3%
	600	500.com, Ltd. - ADR, Class A*		22,140
	600	Bob Evans Farms, Inc.		30,018
	2,400	Boyd Gaming Corporation*		31,680
	7,800	Brinker International, Inc.		409,110
	1,500	Buffalo Wild Wings, Inc.*		223,350
	4,600	Burger King Worldwide, Inc.		122,130
	1,900	Caesars Entertainment Corporation*		36,119
	3,400	The Cheesecake Factory, Inc.		161,942
	900	Chipotle Mexican Grill, Inc.*		511,245
	800	Cracker Barrel Old Country Store, Inc.		77,792
	700	Del Frisco’s Restaurant Group, Inc.*		19,530
	1,200	DineEquity, Inc.		93,684
	13,800	Domino’s Pizza, Inc.		1,062,186
	6,700	Dunkin’ Brands Group, Inc.		336,206
	3,500	Home Inns & Hotels
		Management, Inc. - ADR*		113,015
	2,300	Hyatt Hotels Corporation, Class A*		123,763
	3,800	InterContinental Hotels Group plc - ADR		123,120
	6,800	Jack in the Box, Inc.*		400,792
	9,600	Jamba, Inc.*		115,152
	7,400	Las Vegas Sands Corporation		597,772
	12,100	Marriott International, Inc., Class A		677,842
	4,600	Marriott Vacations
		Worldwide Corporation*		257,186
	31,500	Melco Crown Entertainment, Ltd. - ADR*		1,217,475
	32,400	MGM Resorts International*		837,864
	1,100	Monarch Casino & Resort, Inc.*		20,383
	2,900	Panera Bread Company, Class A*		511,763
	22,900	Papa John’s International, Inc.		1,193,319
	1,600	Red Robin Gourmet Burgers, Inc.*		114,688
	800	Royal Caribbean Cruises, Ltd.		43,648
	19,500	Sonic Corporation*		444,405
	7,700	Starbucks Corporation		565,026
	7,600	Starwood Hotels &
		Resorts Worldwide, Inc.		604,960
	12,100	The Wendy’s Company		110,352
	3,500	Wyndham Worldwide Corporation		256,305
	4,600	Wynn Resorts, Ltd.		1,021,890
	600	Yum! Brands, Inc.		45,234
				12,533,086

		Household Durables — 1.5%
	7,700	D.R. Horton, Inc.		166,705
	500	Garmin, Ltd.		27,630
	1,000	Harman International Industries, Inc.		106,400
	10,300	Hovnanian Enterprises, Inc.*		48,719
	1,900	iRobot Corporation*		77,995
	13,200	Jarden Corporation*		789,756
	2,300	La-Z-Boy, Inc.		62,330
	8,200	Leggett & Platt, Inc.		267,648
	3,600	Lennar Corporation		142,632
	1,700	Mohawk Industries, Inc.*		231,166
	3,400	Newell Rubbermaid, Inc.		101,660
	3,000	PulteGroup, Inc.		57,570
	1,000	The Ryland Group, Inc.		39,930
	1,700	SodaStream International, Ltd.*		74,970
	2,000	Tempur Sealy International, Inc.*		101,340
	2,900	Toll Brothers, Inc.*		104,110
	4,800	Tupperware Brands Corporation		402,048

The accompanying notes to financial statements are an integral part of this schedule.

Reynolds Blue Chip Growth Fund

SCHEDULE OF INVESTMENTS (Continued)

March 31, 2014 (Unaudited)

Shares			Value

LONG-TERM INVESTMENTS — 98.5% (a) (Continued)

COMMON STOCKS — 97.9% (a) (Continued)

		Household Durables — 1.5% (Continued)
	1,200	Whirlpool Corporation	$	179,352
				2,981,961

		Household Products — 0.4%
	2,000	Church & Dwight Company, Inc.		138,140
	400	The Clorox Company		35,204
	2,600	Energizer Holdings, Inc.		261,924
	400	Kimberly-Clark Corporation		44,100
	1,800	Spectrum Brands Holdings, Inc.		143,460
	1,600	WD-40 Company		124,112
				746,940

		Independent Power Producers &
		Energy Traders — 0.0%
	700	Pattern Energy Group, Inc.		18,991

		Industrial Conglomerates — 0.5%
	1,100	3M Company		149,226
	2,100	Carlisle Companies, Inc.		166,614
	1,900	Danaher Corporation		142,500
	2,000	General Electric Company		51,780
	6,200	Koninklijke Philips N.V. NYS		217,992
	1,600	Siemens AG - SP-ADR		216,240
				944,352

		Insurance — 3.4%
	1,000	ACE, Ltd.		99,060
	11,000	AEGON N.V. NYS		101,200
	3,200	Aflac, Inc.		201,728
	1,000	Allied World Assurance
		Company Holdings AG		103,190
	2,900	American Financial Group, Inc.		167,359
	2,800	American International Group, Inc.		140,028
	1,600	Aon plc		134,848
	1,200	Aspen Insurance Holdings, Ltd.		47,640
	3,000	Assurant, Inc.		194,880
	800	The Chubb Corporation		71,440
	20,100	CNO Financial Group, Inc.		363,810
	11,800	eHealth, Inc.*		599,440
	900	Everest Re Group, Ltd.		137,745
	1,800	Fidelity National Financial, Inc.		56,592
	2,800	First American Financial Corporation		74,340
	24,400	Genworth Financial, Inc.*		432,612
	6,600	The Hartford Financial
		Services Group, Inc.		232,782
	3,100	HCI Group, Inc.		112,840
	1,100	Kemper Corporation		43,087
	7,300	Lincoln National Corporation		369,891
	8,900	Marsh & McLennan Companies, Inc.		438,770
	4,900	MBIA, Inc.*		68,551
	3,900	MetLife, Inc.		205,920
	3,400	Platinum Underwriters Holdings, Ltd.		204,340
	300	Primerica, Inc.		14,133
	1,800	Principal Financial Group, Inc.		82,782
	800	The Progressive Corporation		19,376
	5,200	Protective Life Corporation		273,468
	5,300	Prudential Financial, Inc.		448,645
	1,700	Stewart Information
		Services Corporation		59,721
	9,300	Torchmark Corporation		731,910
	2,200	The Travelers Companies, Inc.		187,220
	5,400	Unum Group		190,674
	4,100	XL Group plc		128,125
				6,738,147

		Internet & Catalog Retail — 3.7%
	5,000	Amazon.com, Inc.*		1,682,600
	14,100	Ctrip.com International, Ltd. - ADR*		710,922
	1,800	E-Commerce China Dangdang, Inc. -
		SP-ADR, Class A*		25,848
	4,500	Expedia, Inc.		326,250
	1,300	FTD Companies, Inc.*		41,353
	39,600	Groupon, Inc.*		310,464
	3,400	HomeAway, Inc.*		128,078
	300	HSN, Inc.		17,919
	8,000	Liberty Interactive Corporation, Class A*		230,960
	2,600	Liberty Ventures, Series A*		338,858
	3,500	Netflix, Inc.*		1,232,105
	3,800	Nutrisystem, Inc.		57,266
	11,600	Orbitz Worldwide, Inc.*		90,944
	2,300	Overstock.com, Inc.*		45,310
	900	The Priceline Group, Inc.*		1,072,701
	1,100	RetailMeNot, Inc.*		35,200
	9,500	TripAdvisor, Inc.*		860,605
	700	Vipshop Holdings, Ltd. - ADS*		104,510
				7,311,893

		Internet Software & Services — 5.4%
	8,700	Akamai Technologies, Inc.*		506,427
	7,700	Autobytel, Inc.*		95,711
	5,200	Baidu, Inc. - SP-ADR*		792,376
	1,300	Bitauto Holdings, Ltd.*		46,592
	15,300	BroadVision, Inc.*		169,218

The accompanying notes to financial statements are an integral part of this schedule.

Reynolds Blue Chip Growth Fund

SCHEDULE OF INVESTMENTS (Continued)

March 31, 2014 (Unaudited)

Shares			Value

LONG-TERM INVESTMENTS — 98.5% (a) (Continued)

COMMON STOCKS — 97.9% (a) (Continued)

		Internet Software & Services — 5.4% (Continued)
	6,200	Conversant, Inc.*	$	174,530
	3,200	Demandware, Inc.*		204,992
	1,500	Digital River, Inc.*		26,145
	2,900	eBay, Inc.*		160,196
	200	Equinix, Inc.*		36,968
	10,800	Facebook, Inc., Class A*		650,592
	2,100	Google, Inc., Class A*		2,340,471
	1,600	IAC/InterActiveCorp		114,224
	2,700	j2 Global, Inc.		135,135
	1,900	LinkedIn Corporation, Class A*		351,386
	700	LogMeIn, Inc.*		31,423
	4,700	Monster Worldwide, Inc.*		35,156
	1,200	Move, Inc.*		13,872
	3,600	NetEase, Inc. - ADR		242,280
	1,500	NIC, Inc.		28,965
	1,300	OpenTable, Inc.*		100,009
	5,300	Pandora Media, Inc.*		160,696
	2,400	Qihoo 360 Technology
		Company, Ltd. - ADR*		238,992
	800	Rackspace Hosting, Inc.*		26,256
	2,800	Renren, Inc. - ADR*		9,156
	3,200	SINA Corporation*		193,312
	4,300	Sohu.com, Inc.*		279,887
	700	SouFun Holdings, Ltd. - ADR		47,894
	1,400	Trulia, Inc.*		46,480
	3,200	Twitter, Inc.*		149,344
	4,600	VeriSign, Inc.*		247,986
	600	Vistaprint N.V.*		29,532
	2,400	Web.com Group, Inc.*		81,672
	2,200	WebMD Health Corporation*		91,080
	17,300	Yahoo!, Inc.*		621,070
	7,800	Yandex N.V.*		235,482
	3,800	Yelp, Inc.*		292,334
	5,400	Youku Tudou, Inc.*		151,416
	11,200	YY, Inc. - ADR*		855,232
	8,600	Zillow, Inc.*		757,660
				10,772,149

		IT Services — 4.5%
	1,500	Accenture plc, Class A		119,580
	5,100	Acxiom Corporation*		175,415
	700	Alliance Data Systems Corporation*		190,715
	600	Automatic Data Processing, Inc.		46,356
	5,200	Broadridge Financial Solutions, Inc.		193,128
	16,200	Cognizant Technology Solutions
		Corporation, Class A*		819,882
	2,300	Computer Sciences Corporation		139,886
	3,800	CSG Systems International, Inc.		98,952
	6,600	DST Systems, Inc.		625,614
	1,700	Euronet Worldwide, Inc.*		70,703
	15,400	Fidelity National Information
		Services, Inc.		823,130
	8,100	Fiserv, Inc.*		459,189
	300	FleetCor Technologies, Inc.*		34,530
	4,900	Gartner, Inc.*		340,256
	2,200	Global Payments, Inc.		156,442
	9,500	Jack Henry & Associates, Inc.		529,720
	4,600	iGATE Corporation*		145,084
	2,100	Infosys, Ltd. - SP-ADR		113,778
	200	International Business
		Machines Corporation		38,498
	15,700	MasterCard, Inc., Class A		1,172,790
	6,100	Paychex, Inc.		259,860
	500	QIWI plc - SP-ADR		17,325
	13,800	Sapient Corporation*		235,428
	300	Syntel, Inc.*		26,970
	2,700	TeleTech Holdings, Inc.*		66,177
	1,000	Teradata Corporation*		49,190
	5,600	Total System Services, Inc.		170,296
	3,100	Vantiv, Inc., Class A*		93,682
	6,600	VeriFone Systems, Inc.*		223,212
	7,100	Visa, Inc.		1,532,606
				8,968,394

		Leisure Equipment & Products — 0.3%
	1,300	Brunswick Corporation		58,877
	2,300	Hasbro, Inc.		127,926
	1,500	Nautilus, Inc.*		14,445
	1,100	Polaris Industries, Inc.		153,681
	3,600	Smith & Wesson Holding Corporation*		52,632
	1,800	Sturm, Ruger & Company, Inc.		107,640
				515,201

		Life Sciences Tools & Services — 1.3%
	19,600	Affymetrix, Inc.*		139,748
	6,500	Agilent Technologies, Inc.		363,480
	2,300	Albany Molecular Research, Inc.*		42,757
	400	Charles River Laboratories
		International, Inc.*		24,136
	300	Covance, Inc.*		31,170
	5,000	Illumina, Inc.*		743,300

The accompanying notes to financial statements are an integral part of this schedule.

Reynolds Blue Chip Growth Fund

SCHEDULE OF INVESTMENTS (Continued)

March 31, 2014 (Unaudited)

Shares			Value

LONG-TERM INVESTMENTS — 98.5% (a) (Continued)

COMMON STOCKS — 97.9% (a) (Continued)

		Life Sciences Tools & Services — 1.3% (Continued)
	1,500	Mettler-Toledo International, Inc.*	$	353,520
	2,300	Parexel International Corporation*		124,407
	3,600	PerkinElmer, Inc.		162,216
	4,900	Thermo Fisher Scientific, Inc.		589,176
	300	Waters Corporation*		32,523
				2,606,433

		Machinery — 3.4%
	3,900	Alamo Group, Inc.		211,887
	4,600	Barnes Group, Inc.		176,962
	2,100	Caterpillar, Inc.		208,677
	800	Colfax Corporation*		57,064
	2,800	Columbus McKinnon Corporation*		75,012
	5,000	Crane Company		355,750
	1,500	Cummins, Inc.		223,485
	1,300	Deere & Company		118,040
	3,700	Donaldson Company, Inc.		156,880
	400	Flowserve Corporation		31,336
	900	Graco, Inc.		67,266
	1,300	The Greenbrier Companies, Inc.*		59,280
	2,300	Hardinge, Inc.		33,120
	8,600	IDEX Corporation		626,854
	1,200	Illinois Tool Works, Inc.		97,596
	600	Ingersoll-Rand plc		34,344
	3,200	ITT Corporation		136,832
	1,400	Kennametal, Inc.		62,020
	1,000	The Manitowoc Company, Inc.		31,450
	16,200	Mueller Water Products, Inc., Class A		153,900
	600	Nordson Corporation		42,294
	3,800	PACCAR, Inc.		256,272
	7,500	Pall Corporation		671,025
	2,400	Parker Hannifin Corporation		287,304
	4,000	Pentair, Ltd.		317,360
	900	Rexnord Corporation*		26,082
	5,200	Snap-On, Inc.		590,096
	1,800	Stanley Black & Decker, Inc.		146,232
	2,600	Tennant Company		170,612
	9,400	Terex Corporation		416,420
	1,400	The Timken Company		82,292
	4,800	The Toro Company		303,312
	1,900	Trinity Industries, Inc.		136,933
	1,100	WABCO Holdings, Inc.*		116,116
	4,700	Wabtec Corporation		364,250
	800	Xylem, Inc.		29,136
				6,873,491

		Marine — 0.0%
	3,300	DryShips, Inc.*		10,659

		Media — 3.3%
	2,200	Carmike Cinemas, Inc.*		65,692
	5,800	CBS Corporation, Class B Non-Voting		358,440
	1,500	ChinaNet Online Holdings, Inc.*		2,610
	3,400	Comcast Corporation, Class A		170,068
	6,600	DIRECTV*		504,372
	7,200	Discovery Communications, Inc., Class A*		595,440
	6,000	DISH Network Corporation, Class A*		373,260
	9,900	The Walt Disney Company		792,693
	2,700	Emmis Communications
		Corporation, Class A*		8,640
	1,200	Gannett Company, Inc.		33,120
	9,800	The Interpublic Group of Companies, Inc.		167,972
	1,316	Liberty Global plc, Class A*		54,746
	2,086	Liberty Global plc, Series C*		84,921
	200	Lions Gate Entertainment Corporation		5,346
	16,200	Live Nation Entertainment, Inc.*		352,350
	300	Loral Space & Communications, Inc.*		21,219
	17,400	Media General, Inc.*		319,638
	1,800	Morningstar, Inc.		142,236
	8,400	The New York Times Company, Class A		143,808
	6,200	Omnicom Group, Inc.		450,120
	3,000	Scripps Networks Interactive, Inc., Class A		227,730
	4,200	Sinclair Broadcast Group, Inc., Class A		113,778
	54,000	Sirius XM Holdings, Inc.*		172,800
	12,300	Starz, Class A*		397,044
	1,700	Time Warner Cable, Inc.		233,206
	1,600	Time Warner, Inc.		104,528
	3,600	Twenty-First Century Fox, Inc., Class B		112,032
	7,300	Viacom, Inc. Class B		620,427
				6,628,236

Metals & Mining — 0.4%
	2,600	Allegheny Technologies, Inc.		97,968
	1,500	Barrick Gold Corporation		26,745
	500	BHP Billiton, Ltd. - SP-ADR		33,885
	1,000	Commercial Metals Company		18,880
	1,400	Freeport-McMoRan Copper & Gold, Inc.		46,298
	1,600	Molycorp, Inc.*		7,504
	17,400	NovaGold Resources, Inc.*		62,814
	500	Rio Tinto plc - SP-ADR		27,915
	1,200	Silver Wheaton Corporation		27,240
	1,700	Steel Dynamics, Inc.		30,243
	6,800	Stillwater Mining Company*		100,708
	900	SunCoke Energy, Inc.*		20,556

The accompanying notes to financial statements are an integral part of this schedule.

Reynolds Blue Chip Growth Fund

SCHEDULE OF INVESTMENTS (Continued)

March 31, 2014 (Unaudited)

Shares			Value

LONG-TERM INVESTMENTS — 98.5% (a) (Continued)

COMMON STOCKS — 97.9% (a) (Continued)

		Metals & Mining — 0.4% (Continued)
	7,100	Taseko Mines, Ltd.*	$	13,987
	1,200	Ternium S.A. - SP-ADR		35,496
	5,200	U.S. Silica Holdings, Inc.		198,484
	3,800	Worthington Industries, Inc.		145,350
				894,073
		Multiline Retail — 0.4%
	1,800	Dollar General Corporation*		99,864
	2,100	Family Dollar Stores, Inc.		121,821
	6,800	Macy’s, Inc.		403,172
	2,100	Nordstrom, Inc.		131,145
	700	J.C. Penney Company, Inc.*		6,034
	1,400	Tuesday Morning Corporation*		19,810
				781,846
		Multi-Utilities — 0.3%
	500	Dominion Resources, Inc.		35,495
	5,900	MDU Resources Group, Inc.		202,429
	2,200	NiSource, Inc.		78,166
	400	Sempra Energy		38,704
	3,500	Vectren Corporation		137,865
	1,500	Wisconsin Energy Corporation		69,825
				562,484
		Oil, Gas & Consumable Fuels — 1.9%
	700	Athlon Energy, Inc.*		24,815
	2,900	BPZ Resources, Inc.*		9,222
	8,100	Carrizo Oil & Gas, Inc.*		433,026
	11,200	Cheniere Energy, Inc.*		619,920
	400	Clayton Williams Energy, Inc.*		45,204
	2,000	Concho Resources, Inc.*		245,000
	400	Devon Energy Corporation		26,772
	2,100	Encana Corporation		44,898
	1,200	Energen Corporation		96,972
	700	EOG Resources, Inc.		137,319
	1,000	EQT Corporation		96,970
	2,000	GasLog, Ltd		46,580
	3,900	Gulfport Energy Corporation*		277,602
	400	Hess Corporation		33,152
	14,800	James River Coal Company*		11,099
	14,900	Kodiak Oil & Gas Corporation*		180,886
	400	Murphy Oil Corporation		25,144
	2,200	Newfield Exploration Company*		68,992
	900	Noble Energy, Inc.		63,936
	2,400	Oasis Petroleum, Inc.*		100,152
	400	Occidental Petroleum Corporation		38,116
	4,200	ONEOK, Inc.		248,850
	1,800	Peabody Energy Corporation		29,412
	1,600	Phillips 66		123,296
	1,900	Pioneer Natural Resources Company		355,566
	2,900	Rentech, Inc.*		5,510
	800	Statoil ASA - SP-ADR		22,576
	5,200	Stone Energy Corporation*		218,244
	9,900	TransGlobe Energy Corporation*		75,042
	600	Valero Energy Corporation		31,860
	800	Whiting Petroleum Corporation*		55,512
				3,791,645
		Paper & Forest Products — 0.2%
	3,000	P.H. Glatfelter Company		81,660
	4,400	KapStone Paper and
		Packaging Corporation*		126,896
	2,800	Schweitzer-Mauduit International, Inc.		119,252
				327,808
		Personal Products — 0.0%
	1,700	Herbalife, Ltd.		97,359
		Pharmaceuticals — 2.4%
	3,700	AbbVie, Inc.		190,180
	400	Actavis plc*		82,340
	2,600	Allergan, Inc.		322,660
	4,800	AstraZeneca plc - SP-ADR		311,424
	12,600	AVANIR Pharmaceuticals, Inc., Class A*		46,242
	3,500	Bristol-Myers Squibb Company		181,825
	1,400	Dr. Reddy’s Laboratories, Ltd. - ADR
	61,460
	1,900	Endo International plc*		130,435
	2,200	Forest Laboratories, Inc.*		202,994
	600	GlaxoSmithKline plc - SP-ADR		32,058
	4,900	Horizon Pharma, Inc.*		74,088
	4,600	Jazz Pharmaceuticals plc*		637,928
	3,300	Johnson & Johnson		324,159
	2,600	The Medicines Company*		73,892
	2,500	Merck & Company, Inc.		141,925
	4,400	Mylan, Inc.*		214,852
	1,600	Novartis AG - ADR		136,032
	2,100	Novo Nordisk A/S - SP-ADR		95,865
	8,500	Pfizer, Inc.		273,020
	2,400	Questcor Pharmaceuticals, Inc.		155,832
	1,600	Salix Pharmaceuticals, Ltd.*		165,776
	3,900	Sanofi - ADR		203,892
	2,000	SciClone Pharmaceuticals, Inc.*		9,100
	2,100	Shire plc - ADR		311,913

The accompanying notes to financial statements are an integral part of this schedule.

Reynolds Blue Chip Growth Fund

SCHEDULE OF INVESTMENTS (Continued)

March 31, 2014 (Unaudited)

Shares			Value

LONG-TERM INVESTMENTS — 98.5% (a) (Continued)

COMMON STOCKS — 97.9% (a) (Continued)

		Pharmaceuticals — 2.4% (Continued)
	1,200	Teva Pharmaceutical
		Industries, Ltd. - SP-ADR	$	63,408
	2,500	Valeant Pharmaceuticals
		International, Inc.*		329,575
	6,100	VIVUS, Inc.*		36,234
				4,809,109

		Professional Services — 1.0%
	2,700	51job, Inc. - ADR*		192,375
	1,800	The Advisory Board Company*		115,650
	1,700	FTI Consulting, Inc.*		56,678
	5,000	Kelly Services, Inc., Class A		118,650
	4,300	Manpowergroup, Inc.		338,969
	11,700	On Assignment, Inc.*		451,503
	2,200	Robert Half International, Inc.		92,290
	2,700	Towers Watson & Company, Class A		307,935
	4,800	TrueBlue, Inc.*		140,448
	1,200	Verisk Analytics, Inc., Class A*		71,952
	300	VSE Corporation		15,810
				1,902,260

		Real Estate Management &
		Development — 0.2%
	2,800	CBRE Group, Inc., Class A*		76,804
	1,200	The Howard Hughes Corporation*		171,252
	400	Jones Lang LaSalle, Inc.		47,400
	2,200	Kennedy-Wilson Holdings, Inc.		49,522
				344,978

		Road & Rail — 1.2%
	2,000	Arkansas Best Corporation		73,900
	12,300	Avis Budget Group, Inc.*		599,010
	3,300	CSX Corporation		95,601
	7,900	Hertz Global Holdings, Inc.*		210,456
	1,600	J.B. Hunt Transportation Services, Inc.		115,072
	2,700	Kansas City Southern		275,562
	2,000	Norfolk Southern Corporation		194,340
	2,000	Old Dominion Freight Line, Inc.*		113,480
	2,800	Ryder System, Inc.		223,776
	2,400	Union Pacific Corporation		450,384
				2,351,581

		Semiconductors &
		Semiconductor Equipment — 4.2%
	3,800	Advanced Energy Industries, Inc.*		93,100
	8,400	Advanced Micro Devices, Inc.*		33,684
	4,100	Analog Devices, Inc.		217,874
	8,000	Applied Materials, Inc.		163,360
	5,600	ARM Holdings plc - SP-ADR		285,432
	300	ASML Holding N.V. NYS		28,008
	14,900	Atmel Corporation*		124,564
	6,100	Avago Technologies, Ltd.		392,901
	900	Broadcom Corporation, Class A		28,332
	6,100	Canadian Solar, Inc.*		195,444
	2,800	Cavium, Inc.*		122,444
	3,400	Cree, Inc.*		192,304
	1,200	Cypress Semiconductor Corporation*		12,324
	18,300	Entegris, Inc.*		221,613
	10,700	First Solar, Inc.*		746,753
	4,400	Freescale Semiconductor, Ltd.*		107,404
	3,200	GT Advanced Technologies, Inc.*		54,560
	8,100	Himax Technologies, Inc. - ADR		93,312
	9,700	Integrated Device Technology, Inc.*		118,631
	1,500	Intel Corporation		38,715
	1,100	International Rectifier Corporation*		30,140
	1,000	Intersil Corporation, Class A		12,920
	9,100	JA Solar Holdings Company, Ltd. - ADR*^		92,547
	4,500	KLA-Tencor Corporation		311,130
	15,000	Kulicke & Soffa Industries, Inc.*		189,150
	3,100	Lam Research Corporation*		170,500
	18,600	Lattice Semiconductor Corporation*		145,824
	21,100	LDK Solar Company, Ltd. - ADR*		5,275
	3,100	Linear Technology Corporation		150,939
	15,000	LTX-Credence Corporation*		133,650
	14,700	Marvell Technology Group, Ltd.		231,525
	1,000	Maxim Integrated Products, Inc.		33,120
	1,300	Microchip Technology, Inc.		62,088
	9,600	Micron Technology, Inc.*		227,136
	600	Monolithic Power Systems, Inc.*		23,262
	6,900	NVIDIA Corporation		123,579
	10,900	NXP Semiconductors N.V.*		641,029
	1,400	OmniVision Technologies, Inc.*		24,780
	13,200	ON Semiconductor Corporation*		124,080
	7,500	PDF Solutions, Inc.*		136,275
	1,900	PLX Technology, Inc.*		11,495
	2,400	PMC-Sierra, Inc.*		18,264
	19,400	RF Micro Devices, Inc.*		152,872
	1,200	Rubicon Technology, Inc.*		13,548
	600	Sigma Designs, Inc.*		2,856
	12,200	Skyworks Solutions, Inc.*		457,744
	12,500	SunEdison, Inc.*		235,500

The accompanying notes to financial statements are an integral part of this schedule.

Reynolds Blue Chip Growth Fund

SCHEDULE OF INVESTMENTS (Continued)

March 31, 2014 (Unaudited)

Shares			Values

LONG-TERM INVESTMENTS — 98.5% (a) (Continued)

COMMON STOCKS — 97.9% (a) (Continued)

		Semiconductors &
		Semiconductor Equipment — 4.2% (Continued)
	11,200	SunPower Corporation*	$	361,312
	2,700	Synaptics, Inc.*		162,054
	1,200	Teradyne, Inc.*		23,868
	5,100	Texas Instruments, Inc.		240,465
	4,200	Trina Solar, Ltd. - SP-ADR*		56,490
	7,400	TriQuint Semiconductor, Inc.*		99,086
	3,700	Ultra Clean Holdings, Inc.*		48,655
	800	Veeco Instruments, Inc.*		33,544
	4,700	Xilinx, Inc.		255,069
	19,100	Yingli Green Energy
		Holding Company, Ltd. - ADR*		83,085
				8,395,615

		Software — 3.3%
	1,500	Activision Blizzard, Inc.		30,660
	8,500	Adobe Systems, Inc.*		558,790
	1,100	Advent Software, Inc.		32,296
	600	Aspen Technology, Inc.*		25,416
	7,700	Autodesk, Inc.*		378,686
	900	BroadSoft, Inc.*		24,057
	3,400	CA, Inc.		105,298
	4,600	Check Point Software Technologies, Ltd.*		311,098
	1,100	Citrix Systems, Inc.*		63,173
	500	Concur Technologies, Inc.*		49,535
	1,500	Ebix, Inc.		25,605
	2,600	Electronic Arts, Inc.*		75,426
	800	FactSet Research Systems, Inc.		86,248
	4,800	Fair Isaac Corporation		265,536
	900	FireEye, Inc.*		55,413
	7,700	Fortinet, Inc.*		169,631
	14,200	Giant Interactive Group, Inc. - ADR		164,294
	17,800	Glu Mobile, Inc.*		84,372
	8,000	Informatica Corporation*		302,240
	3,500	Intuit, Inc.		272,055
	2,500	Manhattan Associates, Inc.*		87,575
	7,900	Mentor Graphics Corporation		173,958
	1,600	MICROS Systems, Inc.*		84,688
	2,800	Microsoft Corporation		114,772
	2,700	NetSuite, Inc.*		256,041
	4,500	Oracle Corporation		184,095
	3,700	Progress Software Corporation*		80,660
	1,900	PTC, Inc.*		67,317
	1,500	Qlik Technologies, Inc.*		39,885
	1,800	Red Hat, Inc.*		95,364
	8,800	Salesforce.com, Inc.*		502,392
	1,200	SAP AG - SP-ADR		97,572
	1,000	Splunk, Inc.*		71,490
	1,000	SS&C Technologies Holdings, Inc.*		40,020
	6,400	Symantec Corporation		127,808
	800	Synchronoss Technologies, Inc.*		27,432
	8,000	Synopsys, Inc.*		307,280
	2,000	Take-Two Interactive Software, Inc.*		43,860
	900	TIBCO Software, Inc.*		18,288
	1,200	TiVo, Inc.*		15,876
	4,700	Tyler Technologies, Inc.*		393,296
	700	The Ultimate Software Group, Inc.*		95,900
	500	Verint Systems, Inc.*		23,465
	2,200	Virnetx Holding Corporation*		31,196
	3,800	VMware, Inc., Class A*		410,476
	34,500	Zynga, Inc., Class A*		148,350
				6,618,885

		Specialty Retail — 3.0%
	1,300	Advance Auto Parts, Inc.		164,450
	700	AutoNation, Inc.*		37,261
	900	AutoZone, Inc.*		483,390
	5,000	Bed Bath & Beyond, Inc.*		344,000
	16,200	Best Buy Company, Inc.		427,842
	36,000	Borders Group, Inc.* (b)		—
	2,100	Cabela’s, Inc.*		137,571
	300	CarMax, Inc.*		14,040
	600	The Children’s Place Retail Stores, Inc.		29,886
	6,000	Dick’s Sporting Goods, Inc.		327,660
	2,400	DSW, Inc., Class A		86,064
	4,300	Five Below, Inc.*		182,664
	1,600	Foot Locker, Inc.		75,168
	700	Francesca’s Holdings Corporation*		12,698
	600	GameStop Corporation, Class A		24,660
	5,300	The Home Depot, Inc.		419,389
	2,200	L Brands, Inc.		124,894
	5,500	Lithia Motors, Inc., Class A		365,530
	10,800	Lowe’s Companies, Inc.		528,120
	4,200	Lumber Liquidators Holdings, Inc.*		393,960
	9,500	Office Depot, Inc.*		39,235
	500	Outerwall, Inc.*		36,250
	1,200	PetSmart, Inc.		82,668
	1,200	Ross Stores, Inc.		85,860
	400	Signet Jewelers, Ltd.		42,344
	3,800	Sonic Automotive, Inc., Class A		85,424

The accompanying notes to financial statements are an integral part of this schedule.

Reynolds Blue Chip Growth Fund

SCHEDULE OF INVESTMENTS (Continued)

March 31, 2014 (Unaudited)

Shares			Value

LONG-TERM INVESTMENTS — 98.5% (a) (Continued)

COMMON STOCKS — 97.9% (a) (Continued)

		Specialty Retail — 3.0% (Continued)
	2,100	Tiffany & Company	$	180,915
	7,200	The TJX Companies, Inc.		436,680
	2,300	Tractor Supply Company		162,449
	400	Ulta Salon, Cosmetics & Fragrance, Inc.*		38,992
	5,900	Williams-Sonoma, Inc.		393,176
	12,700	Zale Corporation*		265,557
				6,028,797

		Telecommunication Services –
		Diversified — 0.5%
	33,100	8x8, Inc.*		357,811
	600	Atlantic Tele-Network, Inc.		39,552
	4,800	BT Group plc - SP-ADR		306,480
	1,200	Level 3 Communications, Inc.*		46,968
	2,600	magicJack VocalTec, Ltd.*		55,198
	9,200	tw telecom, Inc.*		287,592
				1,093,601

		Telecommunication Services –
		Wireless — 0.2%
	3,600	SBA Communications Corporation, Class A*		327,456
	2,000	T-Mobile US, Inc.*		66,060
				393,516

		Textiles, Apparel & Luxury Goods — 2.1%
	300	Columbia Sportswear Company		24,795
	2,000	Deckers Outdoor Corporation*		159,460
	200	Fossil Group, Inc.*		23,322
	9,100	Gildan Activewear, Inc.		458,458
	6,900	Hanesbrands, Inc.		527,712
	3,600	Iconix Brand Group, Inc.*		141,372
	11,700	Kate Spade & Company*		433,953
	4,000	Lululemon Athletica, Inc.*		210,360
	5,800	Luxottica Group SpA - ADR		334,428
	5,700	Michael Kors Holdings, Ltd.*		531,639
	1,100	Movado Group, Inc.		50,105
	3,600	NIKE, Inc. Class B		265,896
	1,800	PVH Corporation		224,586
	300	Ralph Lauren Corporation		48,279
	500	Skechers U.S.A., Inc., Class A*		18,270
	2,900	Under Armour, Inc., Class A*		332,456
	6,100	VF Corporation		377,468
				4,162,559

		Thrifts & Mortgage Finance — 0.1%
	4,900	Bank Mutual Corporation		31,066
	300	BBX Capital Corporation, Class A*		5,835
	1,300	BofI Holding, Inc.*		111,475
	2,700	Hudson City Bancorp, Inc.		26,541
	1,500	MGIC Investment Corporation*		12,780
	5,100	Radian Group, Inc.		76,653
				264,350

		Tobacco — 0.0%
	2,800	Vector Group, Ltd.		60,312

		Trading Companies & Distributors — 0.6%
	2,100	Fastenal Company		103,572
	2,600	GATX Corporation		176,488
	1,600	W.W. Grainger, Inc.		404,256
	1,600	Titan Machinery, Inc.*		25,072
	5,900	United Rentals, Inc.*		560,146
				1,269,534

		Water Utilities — 0.1%
	1,000	American States Water Company		32,290
	1,400	California Water Service Group		33,516
	3,200	Consolidated Water Company, Ltd.		42,176
				107,982
		TOTAL COMMON STOCKS
		(cost $137,047,172)		195,268,224

The accompanying notes to financial statements are an integral part of this schedule.

Reynolds Blue Chip Growth Fund

SCHEDULE OF INVESTMENTS (Continued)

March 31, 2014 (Unaudited)

Shares			Value

LONG-TERM INVESTMENTS — 98.5% (a) (Continued)

PUBLICLY TRADED PARTNERSHIPS — 0.3% (a)

		Auto Components — 0.1%
	1,711	Icahn Enterprises L.P.	$	175,771

		Capital Markets — 0.1%
	600	The Blackstone Group L.P.		19,950
	400	The Carlyle Group L.P.		14,056
	7,000	Fortress Investment Group LLC, Class A		51,800
	1,700	Lazard, Ltd., Class A		80,053
				165,859
		Hotels, Restaurants & Leisure — 0.0%
	600	Cedar Fair L.P.		30,558

		Metals & Mining — 0.0%
	2,500	Hi-Crush Partners L.P.		100,800

		Oil, Gas & Consumable Fuels — 0.1%
	700	Enterprise Products Partners L.P.		48,552
	1,300	Summit Midstream Partners L.P.		55,939
	400	Sunoco Logistics Partners L.P.		36,352
				140,843
		TOTAL PUBLICLY TRADED PARTNERSHIPS
		(cost $573,027)		613,831
REITS — 0.3% (a)

		Real Estate Investment Trusts — 0.3%
	500	CubeSmart		8,580
	600	Extra Space Storage, Inc.		29,106
	5,500	OMEGA Healthcare Investors, Inc.		184,360
	1,800	Parkway Properties, Inc.		32,850
	1,500	Pebblebrook Hotel Trust		50,655
	600	Prologis, Inc.		24,498
	200	Simon Property Group, Inc.		32,800
	1,100	Sovran Self Storage, Inc.		80,795
	300	Vornado Realty Trust		29,568
				473,212
		TOTAL REITS
		(cost $380,811)		473,212

WARRANTS — 0.0% (a)
		Insurance — 0.0%
	3,150	American International Group, Inc.,
		Expiration Date - 01/19/21,
		Exercise Price - $45.00*	$	64,386
		TOTAL WARRANTS
		(cost $47,259)		64,386
		TOTAL INVESTMENTS — 98.5%
		(cost $138,048,269)		196,419,653
		Cash and receivables,
		less liabilities — 1.5% (a)		2,981,355
		TOTAL NET ASSETS — 100.0%	$	199,401,008

*	Non-income producing security.

^	Passive Foreign Investment Company (PFIC).

(a)	Percentages for the various classifications relate to net assets.

(b)	This security was fair valued as determined by the adviser using procedures approved by the Board of Directors and are classified as level 3. As of March 31, 2014, the aggregate value of this security was $0 which represents 0.0% of total net assets.

ADR	– Unsponsored American Depositary Receipt

ADS	– American Depositary Share

AG	– German Corporation

A/S	–Danish Company

ASA	– Norwegian Public Limited Company

L.P.	– Limited Partnership

N.V.	– Dutch Public Limited Liability Company

NYS	– New York Registered Shares

Oyj	– Finnish Public Limited Company

plc	– Public Limited Company

S.A.	– Sociedad Anonima

S.A.B.de C.V. – Sociedad Anonima Bursetil de Capital Variable

SP	- ADR – Sponsored American Depositary Receipt

SpA	– Italian Corporation

The Global Industry Classification Standard (GICS) was developed by and or is the exclusive property of MSCI, Inc. and Standard & Poors Financial Services LLC (S&P). GICS is a service mark of MSCI & S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.

The accompanying notes to financial statements are an integral part of this schedule.

Reynolds Blue Chip Growth Fund

STATEMENT OF OPERATIONS

For the Six Months Ended March 31, 2014 (Unaudited)

INVESTMENT INCOME:
Dividends (net of foreign withholding tax of $5,110)	$	1,049,222
Total investment income		1,049,222
EXPENSES:
Management fees		1,053,269
Transfer agent fees		164,389
Administrative and accounting services		141,089
Distribution fees		107,231
Custodian fees		47,516
Insurance expense		33,580
Professional fees		22,848
Registration fees		19,207
Printing and postage expense		19,040
Board of Directors fees		13,961
Chief Compliance Officer fees		12,500
Overdraft fees		562
Other expenses		2,589
Total expenses		1,637,781
NET INVESTMENT LOSS		(588,559	)
NET REALIZED GAIN ON INVESTMENTS		11,587,991
NET INCREASE IN UNREALIZED APPRECIATION ON INVESTMENTS		6,891,138
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS		18,479,129
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	17,890,570

STATEMENTS OF CHANGES IN NET ASSETS

For the Six Months Ending March 31, 2014 (Unaudited) and For the Year Ended September 30, 2013

	2014			2013
OPERATIONS:
Net investment loss	$	(588,559	)	$	(399,151	)
Net realized gain on investments and foreign currency transactions		11,587,991			11,866,899
Net increase in unrealized appreciation on investments		6,891,138			26,278,715
Net increase in net assets resulting from operations		17,890,570			37,746,463
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net capital gains ($3.37552 per share and $0.62743 per share, respectively)		(9,569,666	)		(1,885,775	)
FUND SHARE ACTIVITIES:
Proceeds from shares issued (239,614 and 827,098 shares, respectively)		17,822,628			52,428,676
Net asset value of shares issued in distributions reinvested (122,033 and 31,377 shares, respectively)		9,048,740			1,783,482
Cost of shares redeemed (563,314 and 1,132,566 shares, respectively)		(41,669,940	)		(70,266,908	)
Net decrease in net assets derived from Fund share activities		(14,798,572	)		(16,054,750	)
TOTAL INCREASE (DECREASE) IN NET ASSETS		(6,477,668	)		19,805,938
NET ASSETS AT THE BEGINNING OF THE PERIOD		205,878,676			186,072,738
NET ASSETS AT THE END OF THE PERIOD (Includes undistributed net investment
income of $(649,823) and $(61,264), respectively)	$	199,401,008		$	205,878,676

The accompanying notes to financial statements are an integral part of these statements.

Reynolds Blue Chip Growth Fund

FINANCIAL HIGHLIGHTS

(Selected data for each share of the Fund outstanding throughout each period)

	(Unaudited)
	For the Six
	Months Ending			Years Ended September 30,
	March 31, 2014			2013			2012			2011			2010			2009
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period	$	71.45		$	58.97		$	46.50		$	48.29		$	41.87		$	31.85
Income from investment operations:
Net investment loss(a)		(0.21	)		(0.14	)		(0.19	)		(0.27	)		(0.25	)		(0.42	)
Net realized and unrealized gains (losses) on investments		6.55			13.25			12.66			(1.52	)		6.67			10.44
Total from investment operations		6.34			13.11			12.47			(1.79	)		6.42			10.02
Less distributions:
Distributions from net investment income		—			—			—			—			—			—
Distributions from net realized gains		(3.38	)		(0.63	)		—			—			—			—
Total from distributions		(3.38	)		(0.63	)		—			—			—			—
Net asset value, end of period	$	74.41		$	71.45		$	58.97		$	46.50		$	48.29		$	41.87
TOTAL RETURN		8.90	%(1)		22.50	%		26.82	%		(3.71	%)		15.33	%		31.46	%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000’s)	$	199,401		$	205,879		$	186,073		$	199,183		$	116,043		$	48,553
Ratio of expenses (after reimbursement)
to average net assets*		1.55	%(2)		1.58	%		1.53	%		1.55	%		1.80	%		2.00	%
Ratio of net investment loss to average net assets**		(0.56	%)(2)		(0.21	%)		(0.34	%)		(0.49	%)		(0.55	%)		(1.24	%)
Portfolio turnover rate		46	%(1)		133	%		99	%		55	%		80	%		527	%

(a)	Amount calculated based on average shares outstanding throughout the period.

(1)	Not annualized.

(2)	Annualized.

*	Computed after giving effect to adviser’s expense limitation undertaking. If the Fund had paid all of its expenses for the year ended September 30, 2009, the ratio would have been 2.51%.

**	If the Fund had paid all of its expenses for the year ended September 30, 2009, the ratio would have been (1.75%).

The accompanying notes to financial statements are an integral part of this statement.

NOTES TO FINANCIAL STATEMENTS

March 31, 2014 (Unaudited)

(1)	Summary of Significant Accounting Policies —

The following is a summary of significant accounting policies of the Reynolds Funds, Inc. (the “Company”), which is registered as a diversified, open-end management investment company under the Investment Company Act of 1940 (the “Act”), as amended. This Company consists of one fund: the Reynolds Blue Chip Growth Fund (the “Fund”). The Company was incorporated under the laws of Maryland on April 28, 1988.

The investment objective of the Fund is to produce long-term growth of capital by investing in a diversified portfolio of common stocks issued by well-established growth companies commonly referred to as “blue chip” companies.

(a) Each security, excluding short-term investments, is valued at the last sale price reported by the principal security exchange on which the issue is traded, or if no sale is reported, the latest bid price. Securities which are traded on the Nasdaq National Markets are valued at the Nasdaq Official Closing Price, or if no sale is reported, the latest bid price. Short-term investments with maturities of 60 days or less are valued at amortized cost which approximates value. Securities for which quotations are not readily available are valued at fair value as determined by the investment adviser under the supervision of the Board of Directors. The fair value of a security is the amount which the Fund might receive upon a current sale. The fair value of a security may differ from the last quoted price and the Fund may not be able to sell a security at the fair value. Market quotations may not be available, for example, if trading in particular securities was halted during the day and not resumed prior to the close of trading on the New York Stock Exchange.

Reynolds Blue Chip Growth Fund

NOTES TO FINANCIAL STATEMENTS (Continued)

March 31, 2014 (Unaudited)

(1)	Summary of Significant Accounting Policies — (Continued)

Under accounting principles generally accepted in the United States of America (“GAAP”), fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date.

In determining fair value, the Fund uses various valuation approaches. GAAP establishes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by generally requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The inputs or methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The fair value hierarchy is categorized into three levels based on the inputs as follows:

	Level 1—	Valuations based on unadjusted quoted prices in active markets for identical assets.

	Level 2—	Valuations based on quoted prices for similar securities or in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

	Level 3—	Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

The following table summarizes the Fund’s investments as of March 31, 2014, based on the inputs used to value them:

Valuation Inputs		Investments in Securities
Level 1—	Common Stocks		$	195,268,224
	Publicly Traded Partnerships			613,831
	REITS			473,212
	Warrants			64,386
	Total Level 1			196,419,653
Level 2—	None			—
Level 3—	Common Stocks			0	*
Total			$	196,419,653	**

It is the Fund’s policy to recognize transfers between levels at the end of the quarterly reporting period. For the six months ended March 31, 2014, there were no transfers between levels.

The security classified as Level 3 is a result of the company filing for bankruptcy and no additional observable inputs being available as of March 31, 2014. The security was classified as Level 3 as of September 30, 2013, and there was no change in value from September 30, 2013 to March 31, 2014.

Please refer to the Schedule of Investments to view common stocks, publicly traded partnerships, REITS and warrants by industry type.

(b)

Investment transactions are accounted for on a trade date basis for financial reporting purposes. Net realized gains and losses on sales of securities are computed on the highest amortized cost basis.

(c)

The Fund records dividend income on the ex-dividend date and interest income on an accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and regulations.

(d)

GAAP requires that permanent differences between income for financial reporting and tax purposes be reclassified in the capital accounts. These reclassifications have no effect on net assets or net asset value per share. For the year ended September 30, 2013, the following table shows the reclassifications made:

Accumulated Net	Accumulated Undistributed Net
Investment Loss	Realized Gain on Investments	Capital Stock
$964,985	$(942,724)	$(22,261)

(e)

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Reynolds Blue Chip Growth Fund

NOTES TO FINANCIAL STATEMENTS (Continued)

March 31, 2014 (Unaudited)

(1)	Summary of Significant Accounting Policies — (Continued)

(f)

No provision has been made for Federal income taxes since the Fund has elected to be taxed as a “regulated investment company” and intends to distribute substantially all net investment company taxable income and net capital gains to shareholders and otherwise comply with the provisions of the Internal Revenue Code applicable to regulated investment companies.

(g)

The Fund has reviewed all open tax years and major jurisdictions, which include Federal and the state of Maryland, and concluded that there are no significant uncertain tax positions that would require recognition in the financial statements as of and for the year ended September 30, 2013. Open tax years are those that are open for exam by taxing authorities and, as of March 31, 2014, open Federal tax years include the tax years ended September 30, 2010 through 2013. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Fund’s Statement of Operations. During the six months ending March 31, 2014, the Fund did not incur any interest or penalties. The Fund has no examinations in progress and is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next six months.

(2)	Investment Adviser and Management Agreement and Transactions With Related Parties —

The Fund has a management agreement with Reynolds Capital Management, LLC (“RCM”), to serve as investment adviser and manager. The sole owner of RCM is Mr. Frederick L. Reynolds. Mr. Reynolds is also an officer and interested director of the Fund. Under the terms of the agreement, the Fund will pay RCM a monthly management fee at the annual rate of 1.00% of the daily net assets.

The agreement further stipulates that RCM will reimburse the Fund for all expenses exceeding 2.00% of its daily average net assets (excluding interest, taxes, brokerage commissions and extraordinary items). The Fund is not obligated to reimburse RCM for any expenses reimbursed in previous fiscal years. No such reimbursements were required for the six months ending March 31, 2014.

The Fund has adopted a Service and Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. The Plan provides that the Fund may incur certain costs which may not exceed a maximum amount equal to 0.25% per annum of the Fund’s average daily net assets. Payments made pursuant to the Plan may only be used to pay distribution expenses incurred in the current year, and may be less than the maximum amount allowed by the Plan. For the six months ended March 31, 2014, the Fund incurred $107,231 pursuant to the Plan.

Under the Fund’s organizational documents, each director, officer, employee or other agent of the Fund (including the Fund’s investment manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund has not had prior claims or losses pursuant to these contracts and believes the risk of loss to be remote.

(3)	Distributions to Shareholders —

Net investment income and net realized gains, if any, for the Fund are distributed to shareholders at least annually and are recorded on the ex-dividend date.

(4)	Investment Transactions —

For the six months ending March 31, 2014, purchases and proceeds of sales of investment securities (excluding short-term securities) were $96,812,308 and $123,367,339, respectively. There were no purchases or sales of U.S. Government securities.

(5)	Income Tax Information —

The following information for the Fund is presented on an income tax basis as of September 30, 2013:

	Gross	Gross	Net Unrealized	Distributable	Distributable
Cost of	Unrealized	Unrealized	Appreciation	Ordinary	Long-Term
Investments	Appreciation	Depreciation	on Investments	Income	Capital Gains
$156,817,226	$53,237,467	$(5,294,384)	$47,943,083	$1,157,895	$8,411,745

The difference, if any, between the cost amount for financial statement and federal income tax purposes is due primarily to timing differences in recognizing certain gains and losses in security transactions.

Reynolds Blue Chip Growth Fund

NOTES TO FINANCIAL STATEMENTS (Continued)

March 31, 2014 (Unaudited)

5)	Income Tax Information — (Continued)

The tax components of dividends paid during the six month period ended March 31, 2014 and the year ended September 30, 2013 are:

Six Months Ended		Year Ended
March 31, 2014		September 30, 2013
Ordinary	Long-Term	Ordinary	Long-Term
Income	Capital Gains	Income	Capital Gains
Distributions	Distributions	Distributions	Distributions
$1,157,907	$8,411,759	$ —	$1,885,775

Since there were no ordinary distributions paid for the year ended September 30, 2013, there were no distributions designated as qualifying for the dividends received deduction for corporate shareholders nor as qualified dividend income under the Jobs and Growth Tax Relief Act of 2003.

ADVISORY AGREEMENT

On December 4, 2013, the Board of Directors (“Directors”) of Reynolds Funds, Inc. approved the continuation of the Reynolds Blue Chip Growth Fund’s (“Fund”) investment advisory agreement with Reynolds Capital Management, LLC (“RCM”). Prior to approving the continuation of the advisory agreement, the Directors considered:

•the nature, extent and quality of the services provided by RCM

•the investment performance of the Fund

•the costs of the services to be provided and profits to be realized by RCM from its relationship with the Fund

•the extent to which economies of scale would be realized as the Fund grew and whether fee levels reflect any economies of scale

•the expense ratio of the Fund

In considering the nature, extent and quality of the services provided by RCM, the Directors reviewed a report describing the portfolio management, shareholder communication and servicing services provided by RCM to the Fund. The Directors concluded that RCM was providing essential services to the Fund.

The Directors reviewed the performance of the Fund and the profitability of RCM. They also reviewed data comparing fees and expenses of the Fund to comparable mutual funds, and the investment performance of the Fund compared to its benchmark. The Directors concluded that the performance of the Fund was satisfactory. With respect to RCM’s profitability, the Directors concluded that RCM has sufficient resources to service the Fund, and that the advisory fee is reasonable.

In concluding that the advisory fees payable by the Fund were reasonable, the Directors reviewed reports of the costs of services provided, and the profits realized, by RCM, from its relationship with the Fund and concluded that such profits were reasonable and not excessive. The Directors also reviewed reports comparing the expense ratio of, and the advisory fees paid by, the Fund, to those of, and paid by, other comparable mutual funds and concluded that the advisory fees paid by the Fund and the expense ratio of the Fund was comparable to those of comparable mutual funds.

The Directors concluded that given the size of the Fund, investment advisory fee breakpoints were not warranted at this time.

All of the factors above were considered separately by the Board, including the Directors who are not “interested persons” (as defined in the Investment Company Act) of the Fund (the “Independent Directors”) meeting in an executive session. The factors were viewed in their totality by the Board, with no single factor being the principal or determinative factor in the Board’s determination of whether to approve the continuation of the advisory agreement. Based on the factors discussed above, the Board, including all of the Independent Directors, approved the continuation of the advisory agreement.

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REYNOLDS BLUE CHIP GROWTH FUND

c/o U.S. BANCORP FUND SERVICES, LLC

615 East Michigan Street

Milwaukee, Wisconsin 53202

www.reynoldsfunds.com

Board of Directors

DENNIS N. MOSER

FREDERICK L. REYNOLDS

ROBERT E. STAUDER

Investment Adviser

REYNOLDS CAPITAL MANAGEMENT, LLC

3565 South Las Vegas Boulevard, #403

Las Vegas, Nevada 89109

Transfer Agent,

Dividend Disbursing Agent,

Administrator and Accountant

U.S. BANCORP FUND SERVICES, LLC

615 East Michigan Street

Milwaukee, Wisconsin 53202

1-800-773-9665

or 1-800-7REYNOLDS

1-414-765-4124

Custodian

U.S. BANK, N.A.

1555 North RiverCenter Drive, Suite 302

Milwaukee, Wisconsin 53212

Independent Registered Public Accounting Firm

COHEN FUND AUDIT SERVICES, LTD.

1350 Euclid Avenue, Suite 800

Cleveland, Ohio 44115

Legal Counsel

FOLEY & LARDNER LLP

777 East Wisconsin Avenue

Milwaukee, Wisconsin 53202

Distributor

RAFFERTY CAPITAL MARKETS, LLC

1010 Franklin Avenue

Garden City, New York 11530

Item 2. Code of Ethics.

Not applicable for semi-annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).

Item 6. Schedule of Investments.

(a) Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.

(b) Not applicable to open-end investment companies.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 9. Purchases of Equity Securities By Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to open-end investment companies.

Item 10. Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11. Controls and Procedures.

(a)

The Registrant’s President/Chief Executive Officer and Treasurer/Chief Financial Officer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.

(b)

There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12. Exhibits.

(a)	(1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Not applicable.

(2) A separate certification for each principal executive and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.

(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons. Not applicable to open-end investment companies.

(b)	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith.

SIGNATURES

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.

Reynolds Funds, Inc.

Registrant

By /s/ Frederick L. Reynolds

Frederick L. Reynolds, President and Treasurer

Date 6/2/14

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.

Reynolds Funds, Inc.

Registrant

By /s/ Frederick L. Reynolds

Frederick L. Reynolds, President and Treasurer

Date 6/2/14

/s/ Frederick L. Reynolds Frederick L. Reynolds President and Treasurer Reynolds Funds, Inc.
Dated: 6/2/14