REPUBLIC ADVISOR FUNDS TRUST, N-30D, 1998-01-06

REPUBLIC ADVISOR FUNDS TRUST
N-30D, 1998-01-06

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REPUBLIC
NEW YORK TAX-FREE BOND FUND

REPUBLIC
EQUITY FUND

REPUBLIC
FIXED INCOME FUND

REPUBLIC
INTERNATIONAL EQUITY FUND

REPUBLIC
SMALL CAP EQUITY FUND

[GRAPHIC OMITTED]

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[LOGO]

REPUBLIC
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FAMILY OF FUNDS
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ANNUAL REPORT
OCTOBER 31, 1997
<PAGE>

REPUBLIC FUNDS

ANNUAL REPORT - OCTOBER 31, 1997

TABLE OF CONTENTS
PAGE

President's Message ........................................... 1
Letter to Shareholders from Investment Manager ................ 2

REPUBLIC FUNDS
REPUBLIC NEW YORK TAX-FREE BOND FUND AND REPUBLIC EQUITY FUND
Schedules of Investments ...................................... 13
Statements of Assets and Liabilities .......................... 22
Statements of Operations ...................................... 24
Statements of Changes in Net Assets ........................... 25

REPUBLIC ADVISOR FUNDS TRUST
REPUBLIC FIXED INCOME FUND, REPUBLIC INTERNATIONAL EQUITY FUND AND
REPUBLIC SMALL CAP EQUITY FUND
Statements of Assets and Liabilities .......................... 27
Statements of Operations ...................................... 28
Statements of Changes in Net Assets ........................... 30
Notes to Financial Statements ................................. 33
Financial Highlights .......................................... 44
Independent Auditors' Report .................................. 51

REPUBLIC FIXED INCOME PORTFOLIO, REPUBLIC INTERNATIONAL EQUITY
PORTFOLIO, REPUBLIC SMALL CAP EQUITY PORTFOLIO
Schedules of Investments ...................................... 52
Statements of Assets and Liabilities .......................... 78
Statements of Operations ...................................... 79
Statements of Changes in Net Assets ........................... 80
Notes to Financial Statements ................................. 83
Financial Highlights .......................................... 90
Independent Auditors' Report .................................. 93
<PAGE>

PRESIDENT'S MESSAGE

December 1997

DEAR SHAREHOLDER:

We are very pleased to present you with the annual reports for the
Republic Funds and the Republic Advisor Funds Trust for the fiscal year ended
October 31, 1997. In this report we have provided you with a commentary from
the Investment Adviser, Republic National Bank of New York.

We hope you find this commentary and accompanying financial summaries
informative and as always we would be delighted to hear from you to answer any
questions you might have or provide you with additional information.

Financial statements and portfolio holdings for the Republic Funds and the
Republic Advisor Funds Trust for the fiscal year ended October 31, 1997 also
follow. We look forward to servicing your financial needs and appreciate your
continued support.

Respectfully submitted,

/s/ George O. Martinez

George O. Martinez
President
<PAGE>

COMMENTARY FROM THE INVESTMENT ADVISER -
REPUBLIC NATIONAL BANK OF NEW YORK

U.S. ECONOMIC REVIEW
The US economy expanded at a vigorous pace during the fiscal year ended
October 31, 1997 led by a surge in consumer spending and strong advances in
business outlays for new equipment and construction. Consumers remained upbeat
enjoying strong job growth, income gains, rising home prices, attractive
credit conditions and a booming stock market. Factories hummed at higher
capacity and the tight labor markets showed no signs of slacking off. In March
1997, policymakers surprised few by raising the federal funds rate a quarter
of a point to 5.5%. This pre-emptive strike was the first increase in more
than two years. Market sentiment has leaned away from another rate increase in
the near term. The Fed met in early December 1997 and did not raise rates.
Despite the historically low level of unemployment, wage pressures have yet to
show up in leading indicators. The stable employment cost index suggests that
global competition is keeping domestic labor demands under control. Pricing
power continues to remain weak, as reflected in the modest 2.2% rise in the
Consumer Price Index and the 0.7% increase in the Producer Price Index.
Despite continued robust expansion in the US, recent turmoil in Asia should
help cool off the economy and help keep inflation in check.

GLOBAL ECONOMIC REVIEW
Outside the U.S., Asian markets dominated the economic scene. Thailand and
Malaysia buckled under inflationary pressures, growing account deficits, and
slowing export activity, impacting their own and neighboring economies. The
turmoil led to the de-valuation of the Thai bhat and Malaysian ringgit, and
subsequent depreciation in a number of other currencies. Growth prospects have
been scaled back for much of the region due to deflationary pressures.

Japan's economy decelerated and fears of a recession increased following the
pre-consumption tax (April 97) spending spree. Economic growth declined to
- -0.8% for the nine months ended September 1997 and the outlook is
deteriorating with surging inventories, declining land values, depressed stock
prices, a weak banking system and declining corporate investment and
government spending. With Asia absorbing a considerable portion of Japan's
exports, the Pacific Rim turmoil comes at a poor time for Japan.

In Continental Europe, signs of a broad economic acceleration were evident
during the latter part of the fiscal year, giving rise to inflation concerns.
The German, French, Netherlands, Danish, Belgium and Austrian central banks
raised interest rates and are expected to continue to tighten monetary
policies as the 1999 EMU convergence approaches. European currency union
appears on track, bolstered by U.K. overtures to re-join the European Union, a
reversal of former prime minister John Major's stance against the Euro.

MARKET ENVIRONMENT
U.S. stocks enjoyed another year of outstanding returns. The first six months
of the fiscal year was highlighted by the dominance of the large
capitalization stocks. The market then broadened, as small capitalization
stocks rallied during the latter six months of the fiscal year. For the year
ended October 31, 1997, U.S. large capitalization and small capitalization
stocks posted impressive gains, of 31.8% and 29.3%, respectively, as measured
by the Russell 1000 and 2000 Indices, respectively. International markets
posted moderate gains, 4.9% as measured by the MSCI EAFE Index. The turmoil in
the Pacific Rim region had a negative impact on overall returns for
international investors.

Fixed income markets rallied during the second half of the fiscal year. Prices
soared higher on long term bonds as the yield fell from a high of 7.16% on
April 11, 1997 to 6.15% at fiscal year end. The Salomon Broad Bond Index
posted a 8.9% return for the fiscal year, reflecting the positive reaction to
the benign inflation environment. The tax exempt sector performed admirably,
as well, benefiting from strong investor demand against a limited supply of
new issues throughout most of the fiscal year.

PORTFOLIO REVIEW
Republic New York Tax-Free Bond Fund

The Republic New York Tax-Free Bond Fund Class Y (Adviser Shares) returned
8.38%* for the fiscal year ended October 31, 1997, compared to 7.72% for the
Lipper NY Municipal Bond Fund Index.** As of October 31, 1997, the Fund's
duration (interest rate sensitivity) was 8.37 years and the Fund's annualized
30-day SEC yield was 4.57%* (Adviser Shares).

The first six months of the fiscal year was a challenging time for fixed
income products, however, high-quality tax-exempt securities demonstrated
reasonable stability and favorable relative value during the period. The
outlook improved during the latter part of the year as inflation remained low
and fears of a further rate hike by the Federal Reserve dissipated. During the
fourth quarter, the Fund's duration was reduced slightly as new municipal
issues had more attractiveness in the shorter maturities than in the longer
end.

COMPARISON OF $10,000 INVESTMENT IN THE
N.Y. TAX-FREE BOND FUND (ADVISER SHARES) AND
LIPPER N.Y. MUNI BOND

N.Y. Tax-Free Bond Fund
(Class Y Shares) Lipper N.Y. Muni Bond**
07/01/96 $10,000 $10,000
10/31/96 10,500 10,530
04/30/97 10,510 10,480
10/31/97 11,317 11,118

Past performance is not predictive of future performance

*The total return set forth reflects the waiver of a portion of the Fund's
advisory and administrative fees. Without waivers of fees, total return for
the period would have been lower. Without waivers of fees the annualized
30-day SEC yield figure would have been 4.05%. The performance data quoted
represents past performance and is not an indication of future results. The
investment return and Net Asset Value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
**Lipper NY Municipal Bond Fund Index is an equally weighted index composed
of the 30 largest mutual funds within this investment objective.

Republic Equity Fund

The Republic Equity Fund Class Y (Adviser Shares) returned 29.28%* for the
fiscal year ended October 31, 1997, compared to 28.42% for the Lipper Growth
Fund Index*** and 31.84% for the Russell 1000 Index.**

In January 1997, Alliance Capital Management L.P. ("Alliance Capital") and
Brinson Partners, Inc. ("Brinson") replaced Lord Abbett & Co. as sub-advisers
of the Fund. In connection with the change in sub-advisers, the Fund
implemented more flexible investment policies which enabled it to invest in a
wider variety of securities. Following the change in sub-advisers, the Fund's
sector allocations shifted. Exposure to Consumer Staples, Consumer
Discretionary, Healthcare and Technology all rose, while exposure to the
Energy and Utility sectors were reduced.

Alliance Capital emphasizes companies with "growth" oriented qualities, while
Brinson focuses on companies with "value" oriented characteristics. On a
cumulative basis over the last twelve months, value and growth oriented
companies in aggregate performed similarly, however, there was a great
divergence in results when reviewed on a month-to-month basis. The two new
sub-advisors are expected to complement each other with their different styles
and help smooth and enhance investment results over time.

As of October 31, 1997, the Fund's portfolio held 137 companies securities.
The top sector weightings as a percentage of total investments at October 31,
1997 were approximately 21.3% Consumer Products and Services, 20.5% Technology
and Communications, 9.0% Banking & Finance and 9.0% Pharmaceuticals.***

COMPARISON OF $10,000 INVESTMENT IN THE
EQUITY FUND (ADVISER SHARES) AND
RUSSELL 1000 INDEX

Russell 1000 Russell 1000
Equity Fund Value Index Index**
07/01/96 $10,000 $10,000 $10,000
10/31/96 10,470 10,510 10,550
04/30/97 11,700 11,710 11,940
10/31/97 13,538 14,240 13,850

Past performance is not predictive of future performance

*The total return set forth reflects the waiver of a portion of the Fund's
advisory and administrative fees. Without waivers of fees, total return
for the period would have been lower. The performance data quoted
represents past performance and is not an indication of future results.
The investment return and Net Asset Value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
**Following the change in investment policies of the Fund earlier this year,
the Manager believes that it is more appropriate to benchmark the Fund
against the Russell 1000 Index as opposed to the Russell 1000 Value Index.
In accordance with regulations the performance of both indices is compared
against the Fund.
***Lipper Growth Fund Index is an equally weighted index composed of the 30
largest mutual funds within this investment objective.
****Russell 1000 Value Index is an unmanaged index comprised of 1,000 large
U.S. companies as determined by market capitalization.

Republic Fixed Income Fund

The Republic Fixed Income Fund returned 9.14%* for the fiscal year ended
October 31, 1997, compared to 8.80% for the Lipper A Rated Bond Fund Index and
8.89% for the Salomon Broad Investment Grade Bond Index.*** As of October 31,
1997, the Fund's annualized 30-day SEC yield was 5.94%*

During the first six months, holdings in the mortgage sector contributed most
to the Fund's out-performance, while the corporate sector and currency hedged
foreign bonds added modestly to the relative results. Mortgages remained the
largest weighting in the Fund, offering fair value relative to Treasury bonds
and attractive value relative to other sectors. As the year progressed,
exposure was shifted from mortgages to treasuries as interest rates declined
and spreads tightened. The mortgage sector remains structured so as to have
less prepayment risk than the mortgage securities contained within the broad
bond market index. The Fund's strategy at the end of the period was based on
real interest rates appearing attractive in light of past inflation data but
less attractive on a prospective basis. Against this backdrop, the interest
rate sensitivity of the portfolio remained near its benchmark.

COMPARISON OF $10,000 INVESTMENT IN THE
RAFT FIXED INCOME FUND AND
SALOMON BROAD INVESTMENT GRADE BOND INDEX

Salomon Broad Investment
Raft Fixed Income Fund Grade Bond Index
01/09/95 $10,000 $10,000
04/30/95 10,530 10,640
10/31/95 11,440 11,280
04/30/96 11,540 11,580
10/31/96 12,180 12,210
04/30/97 12,490 12,380
10/31/97 13,296 13,265

Past performance is not predictive of future performance

*The performance set forth reflects the waiver and reimbursement of a
portion of the Fund's fees. Without waivers of fees, total return for the
period would have been lower. Without waivers of fees the annualized 30-day
SEC yield figure would have been 4.39%. The performance data quoted
represents past performance and is not an indication of future results. The
investment return and Net Asset Value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
**Lipper A Rated Bond Fund Index is an equally weighted index composed of the
30 largest mutual funds within this investment objective.
***Salomon Broad Investment Grade Bond Index is an unmanaged market
capitalization weighted index which includes fixed rate treasury,
government sponsored, corporate and mortgage securities. All issues mature
in one year or more and have at least $50 million face amount outstanding
for entry into the index.

Republic International Equity Fund

The Republic International Equity Fund earned 16.62%* for the fiscal year
ended October 31, 1997, compared to the 13.34% advance of the Lipper
International Equity Fund Index** and 4.92% advance of the MSCI EAFE Index.***

European investments posted extraordinary results in U.S. dollar terms during
the last twelve months, despite currency weakness which moderated results for
dollar-based investors. Telecommunications and technology related holdings
were among the most significant contributors to the Fund's outperformance.
Superior stock selection and low exposure in Japan relative to the benchmark
also enhanced results. Compared to the MSCI EAFE Index benchmark, the
Portfolio remained most significantly underweighted in Japan, Germany and the
United Kingdom, and overweighted in Sweden, Canada and Mexico.****

As of October 31, 1997, the Republic International Equity Portfolio, in which
the Fund invests all of its investable assets, was broadly diversified with
172 equity holdings representing 28 countries. The Portfolio's weightings by
geographical region as a percentage of total investments at October 31, 1997
were as follows: Europe 46.7%, Japan 22.3%, Pacific Ex- Japan 8.2%, and 22.8%
in other regions. The largest five holdings of the Portfolio represent 8.46%
of the Portfolio: Mannesmann AG (Germany: machinery & engineering), Tokyo
Electron (Japan: electronic components), Bank of Scotland (United Kingdom:
financial), Astra (Sweden: medical, drugs), Zeneca Group Plc (United Kingdom:
Pharmaceutical, agri chemicals).

COMPARISON OF $10,000 INVESTMENT IN THE
RAFT INTERNATIONAL EQUITY FUND AND
MORGAN STANLEY CAPITAL INVESTMENT EAFE INDEX

Raft International
Equity Fund MSCI EAFE Index
01/09/95 $10,000 $10,000
04/30/95 10,210 10,790
10/31/95 10,830 10,800
04/30/96 12,050 12,100
10/31/96 12,260 11,810
04/30/97 13,620 11,990
10/31/97 14,301 12,367

Past performance is not predictive of future performance

*The performance set forth reflects the waiver and reimbursement of a
portion of the Fund's fees. Without waivers of fees, total return for the
period would have been lower. The performance data quoted represents past
performance and is not an indication of future results. The investment
return and Net Asset Value will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
**Lipper International Equity Fund Index is an equally weighted index
composed of the 30 largest mutual funds within this investment objective.
***MSCI EAFE Index is based on the share prices of approximately 1,600
companies listed on stock exchanges in the 22 developed countries that
make up the MSCI National Indices.
****International investing involves increased risk and volatility.

Republic Small Cap Equity Fund

The Republic Small Cap Equity Fund returned 27.18%* for the fiscal year ended
October 31, 1997, compared to 18.65% for the Lipper Small Company Fund Index**
and 29.33% for the Russell 2000 Index.***

The first six months of the fiscal year saw small capitalization stocks lag
the overall equity market. The portfolio's largest sectors were Technology,
Leisure and Healthcare, with only leisure benefiting from increased investor
interest during the period. While the overall sector weightings were a
negative contributor to performance, individual holdings within those sectors
posted above average returns. The latter half of the year saw a dramatic
advance by the small capitalization stocks. Individual stock selection
continued to drive performance results.

The portfolio's bias is towards higher quality and more mature small
capitalization issues. While lesser quality issues can outperform at times,
over the long run it has been more profitable to invest in higher quality
small stocks.

As of October 31, 1997, the Small Cap Equity Portfolio, in which the Fund
invests all of its investable assets, was broadly diversified in company
securities. The top sector weightings as a percentage of total investments at
October 31, 1997 were approximately 16.5% Computer Software & Services, 14.9%
Business Services, 13.9% Medical, Health Technology & Services and 4.6% U.S.
Government Agency Obligations.****

COMPARISON OF $10,000 INVESTMENT IN THE
RAFT SMALL CAP EQUITY FUND AND
RUSSELL 2000 INDEX

-------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------
Fiscal Year to Date 10/31/97 Inception to 10/31/97
---------------------------- ---------------------
27.18% 29.12%
-------------------------------------------------------
Raft Small Cap
Equity Fund Russell 2000 Index***
09/03/96 $10,000 $10,000
10/31/96 10,630 10,250
04/30/97 10,500 10,410
10/31/97 13,518 13,251

Past performance is not predictive of future performance

*The performance set forth reflects the waiver and reimbursement of a
portion of the Fund's fees. Without waivers of fees, total return for the
period would have been lower. The performance data quoted represents past
performance and is not an indication of future results. The investment
return and Net Asset Value will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
**Lipper Small Company Fund Index is an equally weighted index composed of
the 30 largest mutual funds within this investment objective.
***Russell 2000 Index is a broad index of equity securities of small
capitalization U.S. companies, with an average market capitalization of
$775 million as of October 31, 1997.
****Small company funds typically carry additional risks since smaller
companies generally have higher company specific risk, and historically,
their stocks have experienced a greater degree of market volatility than
larger-company stocks on average.

This material must be preceeded or accompanied by a current prospectus.

<PAGE>

REPUBLIC NEW YORK TAX-FREE BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1997
<TABLE>
<CAPTION>

RATINGS
MOODY'S/
PRINCIPAL S&P VALUE
AMOUNT DESCRIPTION MATURITY (UNAUDITED)(a) (NOTE 2)
------ ----------- -------- -------------- --------
NEW YORK MUNICIPAL
OBLIGATIONS - 88.5%(a)
<S> <C> <C> <C> <C>
$ 500,000 Brookhaven New York, General
Obligation, FGIC Insured 5.50% ... 10/1/12 Aaa/AAA $ 518,255
250,000 Erie County, New York, General
Obligation, Series B, FGIC Insured
5.375% ........................... 6/15/07 Aaa/AAA 265,113
1,000,000 Metropolitan Transit Authority of
New York, Transportation Facility
Revenue - Series C-1, FGIC Insured
5.250% ........................... 7/1/17 Aaa/AAA 997,490
750,000 Metropolitan Transit Authority of
New York, Service Contract
Commuter Facility - Series P
5.750% ........................... 7/1/15 Baa1/BBB+ 762,008
1,000,000 New York, NY, General Obligation,
Series H 6.000% .................. 8/1/14 Baa1/BBB+ 1,049,320
1,000,000 New York, NY, General Obligation,
Series L 5.875% .................. 8/1/15 Baa1/BBB+ 1,031,170
300,000 New York, NY, General Obligation,
Series L 3.750% .................. 8/15/20 Aa1/AAA 300,000
450,000 New York City Housing Development
Corporation, Multi Family Mortgage
Revenue, Refunding - Series A FHA
Insured 6.550% ................... 10/1/15 NR/AAA 479,210
1,000,000 New York City Housing Development
Corporation, Multi Family Mortgage
Revenue, Refunding - Series A
5.750% ........................... 11/1/18 Aa2/AA 1,033,160
500,000 New York City Industrial Development
Agency, Special Facilities,
Revenue, Terminal One Group
Project, AMT 6.100% .............. 1/1/09 A/A 531,875
1,000,000 New York City Industrial Development
Agency, Special Facilities,
Revenue, Terminal One Group
Project, AMT 6.000% .............. 1/1/15 A/A 1,044,480
750,000 New York City Municipal Water and
Sewer, Finance Authority, Water
and Sewer, Revenue, Refunding -
Series A 5.750% .................. 6/15/16 A2/A 772,852
1,000,000 New York City, TR Cultural Revenue,
Botanical Gardens, MBIA Insured
5.800% ........................... 7/1/26 Aaa/AAA 1,034,300
1,000,000 New York Local Government Assistance
Corporation, Series A 6.000% 4/1/16 A3/A+ 1,068,900
300,000 New York State Dormitory Authority,
Revenue, Cornell University,
Series B VRDN 4.000% ............. 7/1/25 Aa/AA 300,000
1,000,000 New York State Dormitory Authority,
Revenue, City University, Series
A, AMBAC Insured 5.625% .......... 7/1/16 Aaa/AAA 1,059,300
1,000,000 New York State Dormitory Authority,
Revenue, Court Facilities, Series
A 5.625% ......................... 5/15/13 Baa1/BBB+ 1,014,380
1,000,000 New York State Dormitory Authority,
Revenue, Department of Health
5.750% ........................... 7/1/17 Baa1/BBB 1,019,080
225,000 New York State Dormitory Authority,
Revenue, Mental Health Service
Facility Series B 6.500% ......... 8/15/11 Baa1/A+ 257,225
1,000,000 New York State Dormitory Authority,
Revenues, Mental Health Services,
Series B 5.500% .................. 8/15/17 Baa1/A- 1,001,580
1,000,000 New York State Dormitory Authority,
Revenue, Rochester Institute of
Technology, MBIA Insured 5.300% 7/1/17 Aaa/AAA 1,004,760
500,000 New York State Dormitory Authority,
Revenue, State University,
Educational Facilities, 5.750% ... 5/15/09 A3/A 531,895
375,000 New York State Dormitory Authority,
Revenue, State University,
Educational Facilities, Series A
6.250% 5/15/17 Baa1/BBB+ 415,781
1,000,000 New York State, Mortgage Agency
Revenue, Homeowner Mortgage,
Series 67 5.600% ................. 10/1/14 Aa2/NR 1,010,260
1,000,000 New York State Environmental
Facilities Corporation Pollution
Control Revenue, Water Revolving
Fund - Series C 5.850% ........... 1/15/15 Aaa/AAA 1,063,920
1,000,000 New York State Housing Finance
Agency, Service Contract
Obligation, Revenue, Refunding,
Series C 5.875% .................. 9/15/14 Baa1/BBB+ 1,030,060
395,000 New York State Medical Care
Facilities, Revenue, Hospital &
Nursing Home, FHA Insured 6.400% . 8/15/14 NR/AAA 431,399
500,000 New York State Power Authority,
Revenue & General Purpose, Series
CC 5.000% ........................ 1/1/09 Aa/AA 504,160
1,000,000 New York State Thruway Authority,
Service Contract, Revenue, Local
Highway and Bridge 5.875% ........ 4/1/14 Baa1/BBB+ 1,029,690
1,000,000 New York State Urban Development
Corporation, Revenue 5.750% ...... 4/1/12 Baa1/BBB+ 1,034,660
500,000 Port Authority of New York & New
Jersey, Special Obligation,
Revenue, JFK International
Terminal, MBIA Insured, AMT 5.750% 12/1/22 Aaa/AAA 515,805
1,000,000 Port Authority of New York & New
Jersey, Series 74 6.750% ......... 8/1/26 A1/AA 1,083,780
750,000 Syracuse New York Senior Citizen
Housing Corporation, East Hill
Village Apartments, Series A
6.125% 11/1/10 NR/A 791,662
250,000 Yonkers, New York, General
Obligation, Series A, FGIC Insured
6.500% ........................... 2/15/12 Aaa/AAA 276,570
-----------
TOTAL NEW YORK MUNICIPAL OBLIGATIONS
(COST $25,385,464) ................................................ $26,264,100
-----------
OTHER BONDS AND NOTES - 7.0%
1,000,000 Puerto Rico Commonwealth Highway &
Transportation Authority, Revenue,
Series W 5.500% .................. 7/1/08 Baa1/A 1,044,710
1,000,000 Puerto Rico Electric Power
Authority, Revenue, Series O
6.000% ........................... 7/1/14 Baa1/BBB+ 1,057,310
----------

TOTAL OTHER BONDS AND NOTES
(COST $2,028,070) ......................................... 2,102,020
----------

PRINCIPAL VALUE
AMOUNT DESCRIPTION (NOTE 2)
------ ----------- --------

SHORT-TERM INVESTMENTS - 0.2%(a)
$ 48,091 Provident New York Tax Free Money Market Fund
(Cost $48,091) .................................................... $ 48,091
-----------
TOTAL INVESTMENTS - 95.7% (COST $27,461,625)}D{ ................................. 28,414,211

OTHER ASSETS IN EXCESS OF LIABILITIES - 4.3% .................................... 1,280,776
-----------
NET ASSETS - 100.0% ............................................................. $29,694,987
===========

(a) Percentages indicated are based on net assets.
(b) Approximately 31.81% of the municipal securities held by the Fund have credit enhancement
features backing them, which the Fund relies on, such as letters of credit, insurance or
guarantees. Without these credit enhancement features the securities may or may not meet the
quality standards of the Fund.
(c) The Moody's or Standard & Poor's rating indicated is believed to be the most recent ratings
available at October 31, 1997 for the securities listed. Ratings are generally ascribed to
securities at the time of issuance. While the agencies may from time to time revise such
ratings, they undertake no obligation to do so, and the ratings do not necessarily represent
what the agencies would ascribe to these securities at October 31, 1997. These ratings are
unaudited.
(d) For Federal income tax purposes, the cost of securities owned at October 31, 1997 was the same
as the cost of securities for financial statement purposes resulting in net unrealized
appreciation of securities as follows:

Gross unrealized appreciation ............................................. $963,439
Gross unrealized depreciation ............................................. (10,853)
--------
Net unrealized appreciation ................................................. $952,586
========

AMBAC -American Municipal Bond Assurance Corporation
AMT -Interest on security is subject to Federal Alternative Minimum Tax
FGIC -Federal Guaranty Insurance Corporation
FHA -Federal Housing Administration

See notes to financial statements
</TABLE>
<PAGE>

REPUBLIC EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1997
VALUE
DESCRIPTION SHARES (NOTE 2)

COMMON STOCK - 94.1%(b)
AEROSPACE & AIRCRAFT - 4.0%

Allied Signal, Inc. ............................ 18,600 $ 669,600
Lockheed Martin Corp. .......................... 14,900 1,416,431
Raytheon Co. ................................... 13,400 726,950
United Technologies Corp. ...................... 3,000 210,000
-----------
3,022,981
-----------

BANKING & FINANCE - 8.4%
American Express Co. ........................... 4,800 374,400
Chase Manhattan Corp. .......................... 12,200 1,407,575
Citicorp. ...................................... 5,500 687,844
First American Corp. ........................... 3,000 142,500
First Security Corp. ........................... 3,700 107,300
Hibernia Corp. ................................. 6,300 112,219
MBNA Corp. ..................................... 25,500 670,969
Merrill Lynch & Co. ............................ 11,000 743,875
Morgan Stanley, Dean Witter, Discover & Co. .... 15,000 735,000
NationsBank Corp. .............................. 6,200 371,225
Regions Financial Corp. ........................ 2,900 106,575
U.S. Bancorp. .................................. 8,754 890,172
-----------
6,349,654
-----------

CHEMICALS - 0.8%
Eastman Chemical Co. ........................... 7,400 441,225
Geon Co. ....................................... 3,100 67,231
Witco Corp. .................................... 1,800 78,300
-----------
586,756
-----------

COMMUNICATIONS - 3.1%
360 Communications Co.(a) ...................... 400 8,450
Boston Technology, Inc. (a) .................... 4,500 122,063
CommScope, Inc.(a) ............................. 8,566 94,226
Comverse Technology, Inc.(a) ................... 900 37,125
Lucent Technologies ............................ 7,600 626,525
Nextel Communications, Inc. (a) ................ 15,800 414,750
Next Level System, Inc.(a) ..................... 25,800 348,300
WorldCom, Inc.(a) .............................. 19,900 669,138
-----------
2,320,577
-----------

CONSTRUCTION & HOUSING - 1.6%
Champion Enterprises, Inc.(a) .................. 9,000 158,062
Comerica, Inc. ................................. 3,100 245,094
Fleetwood Enterprises, Inc. .................... 3,700 112,156
Martin Marietta Materials ...................... 3,300 115,088
Masco Corp. .................................... 13,200 579,150
-----------
1,209,550
-----------
CONSUMER MANUFACTURING - 3.9%
Echlin, Inc. ................................... 3,200 104,800
General Electric Co. ........................... 21,000 1,355,813
Harley-Davidson, Inc. .......................... 8,200 227,550
Lear Corp.(a) .................................. 2,700 129,769
Sunbeam Corp. .................................. 16,800 761,250
U.S. Industries, Inc. .......................... 14,000 376,250
-----------
2,955,432
-----------

CONSUMER PRODUCTS - 12.1%
Campbell Soup Co. .............................. 14,000 721,875
Coca-Cola Co. .................................. 6,000 347,512
Coca-Cola Enterprises, Inc. .................... 5,600 157,500
Colgate-Palmolive Co. .......................... 13,300 861,175
CPC International Inc. ......................... 4,900 485,100
Dial Corp. ..................................... 5,800 97,875
Gillette Co. ................................... 12,600 1,122,187
Kimberly-Clark Corp. ........................... 11,700 607,669
Nabisco Holdings Corp. ......................... 11,500 472,938
Pepsico, Inc. .................................. 8,900 327,631
Philip Morris Companies, Inc. .................. 56,300 2,230,888
Procter & Gamble Co. ........................... 6,800 462,400
Sealed Air Corp.(a) ............................ 9,600 495,000
Tyson Foods, Inc. .............................. 23,050 435,069
York International Corp. (a) ................... 7,000 319,375
-----------
9,144,194
-----------

CONSUMER SERVICES - 8.0%
Carnival Corp. ................................. 6,000 291,000
Circuit City Stores ............................ 16,700 665,912
Cox Communications (a) ......................... 15,600 479,700
Dayton Hudson Corp. ............................ 7,500 471,094
Food Lion, Inc. ............................... 20,700 160,425
Gannett Company, Inc. ......................... 11,200 588,700
Home Depot, Inc. ............................... 14,200 789,875
Interpublic Group, Inc. ........................ 7,400 351,500
Kohl's (a) ..................................... 6,900 463,162
Kroger Co. (a) ................................. 3,300 107,662
Liberty Media Group (a) ........................ 21,300 741,506
Viad Corp. ..................................... 11,100 202,575
Walt Disney Co. ................................ 8,300 682,675
-----------
5,995,786
-----------
ELECTRIC SERVICES - 4.1%
Centerior Energy Corp. ......................... 17,200 223,600
CMS Energy Corp. ............................... 14,600 532,900
Enron Corp. .................................... 23,000 874,000
Entergy Corp. .................................. 29,500 720,906
PECO Energy Co. ................................ 33,700 764,569
-----------
3,115,975
-----------

FOREST PRODUCTS - 0.7%
Champion International Corp. ................... 1,000 55,187
Fort James Corp. ............................... 9,200 365,125
Westvaco Corp. ................................. 2,700 88,594
-----------
508,906
-----------

HEALTH CARE - 3.4%
Baxter International, Inc. ..................... 14,600 675,250
Beckman Instruments, Inc. ...................... 3,300 129,937
Boston Scientific Corp. (a) .................... 10,000 455,000
Covance, Inc. (a) .............................. 5,700 100,819
Health Care & Retirement Corp. (a) ............. 6,700 253,344
Manor Care, Inc. ............................... 8,700 298,519
Medtronic, Inc. ................................ 8,800 382,800
Vencor, Inc. (a) ............................... 8,600 232,200
-----------
2,527,869
-----------

INDUSTRIAL MACHINERY & RELATED SERVICES - 0.9%
Harnischfeger Industries, Inc. ................. 8,600 338,625
Pentair, Inc. .................................. 6,000 231,750
Timken Co. ..................................... 4,300 144,050
-----------
714,425
-----------

INSURANCE - 5.7%
American International Group ................... 8,400 857,325
AON Corp. ...................................... 20,250 1,092,234
CIGNA Corp. .................................... 7,400 1,148,850
Old Republic International Corp. ............... 2,800 100,100
Travelers, Inc. ................................ 16,200 1,134,000
-----------
4,332,509
-----------

METALS - 0.4%
Birmingham Steel Corp. ......................... 4,500 74,812
Aluminum Co. of America ........................ 900 65,700
Reynolds & Reynolds, Inc. ...................... 9,100 155,838
-----------
296,350
-----------

MULTI INDUSTRY COMPANIES - 2.3%
CVS Corp. ...................................... 7,200 $ 441,450
National Service Industries .................... 2,200 97,350
Tyco International Ltd. ........................ 30,800 1,162,700
-----------
1,701,500
-----------

OIL & GAS - 3.2%
Apache Corp. ................................... 14,000 588,000
Halliburton Co. ................................ 8,000 477,000
Lyondell Petrochemical ......................... 12,300 315,187
Noble Drilling Corp. (a) ....................... 10,600 376,963
Transocean Offshore, Inc. ...................... 4,000 216,000
USX-Marathon Group ............................. 1,100 39,325
Ultramar Diamond Shamrock Corp. ................ 12,900 398,288
-----------
2,410,763
-----------

PACKAGING & CONTAINERS - 1.7%
Corning, Inc. .................................. 23,100 1,042,387
Crown Cork & Seal, Inc. ........................ 5,400 243,338
-----------
1,285,725
-----------

PHARMACEUTICALS - 8.4%
Abbott Laboratories ............................ 6,400 392,400
Allergan, Inc. ................................. 11,600 382,075
Alza Corp. (a) ................................. 11,300 294,506
American Home Products Corp. ................... 3,800 281,674
Biogen, Inc. (a) ............................... 4,400 147,400
Centocor, Inc. (a) ............................. 10,100 444,400
Forest Laboratories, Inc. (a) .................. 5,200 240,500
Genzyme Corp. (a) .............................. 4,600 125,925
Merck & Co., Inc. .............................. 15,400 1,374,450
Pharmacia & Upjohn, Inc. ....................... 10,500 333,375
Schering-Plough Corp. .......................... 41,800 2,343,413
-----------
6,360,118
-----------

REFUSE SYSTEMS - 0.8%
Browning-Ferris Industries ..................... 1,520 49,400
USA Waste Services, Inc. (a) ................... 15,800 584,600
-----------
634,000
-----------

TECHNOLOGY - 16.2%
Altera Corp. (a) ............................... 10,100 448,187
Applied Materials, Inc. (a) .................... 16,700 557,362
Automatic Data Processing, Inc. ................ 14,800 756,650
Cisco Systems, Inc. (a) ........................ 16,500 1,353,515
Compaq Computer Corp. .......................... 22,500 1,434,375
Dell Computer Corp. (a) ........................ 8,000 641,000
EMC Corp. (a) .................................. 16,100 901,600
First Data Corp. ............................... 35,300 1,025,906
General Semiconductor, Inc. (a) ................ 5,825 66,259
Informix Corp. (a) ............................. 5,600 38,150
Intel Corp. .................................... 12,600 970,200
Microsoft Corp. (a) ............................ 5,800 754,000
Oracle Corp. (a) ............................... 16,500 590,390
Seagate Technology, Inc. (a) ................... 10,100 273,963
Solectron Corp. (a) ............................ 20,000 785,000
Xerox Corp. .................................... 20,600 1,633,838
-----------
12,230,395
-----------

TIRE & RUBBER - 1.4%
Goodyear Tire & Rubber Co. ..................... 16,200 1,014,525
-----------
TRANSPORTATION - 3.0%
Burlington Northern Santa Fe ................... 11,900 1,130,500
Federal Express Corp. (a) ...................... 16,700 1,114,725
-----------
2,245,225
-----------
TOTAL INVESTMENTS - 94.1%
(Cost $64,118,910) (c) .................................... 70,963,215

OTHER ASSETS IN EXCESS OF LIABILITIES - 5.9% ................ 4,460,084
-----------
NET ASSETS - 100.0% ......................................... $75,423,299
===========
(a) Represents non-income producing securities.
(b) Percentages indicated are based on net assets.
(c) For Federal income tax purposes, the cost of securities owned at October
31, 1997 was $64,185,815 resulting in net unrealized appreciation of
securities as follows:
Gross unrealized appreciation ......................... $ 8,968,345
Gross unrealized depreciation ......................... (2,190,946)
-----------
Net unrealized appreciation ............................. $ 6,777,399
===========

See notes to financial statements

<PAGE>

REPUBLIC FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1997
<TABLE>
<CAPTION>
NEW YORK
TAX-FREE EQUITY
BOND FUND FUND
----------- -----------
<S> <C> <C>
ASSETS:
Investments in securities, at value (cost $27,461,625
and $64,118,910, respectively) ...................... $28,414,211 $70,963,215
Cash .................................................. 25 4,594,044
Receivable for investments sold ....................... -- 701,786
Receivable for fund shares sold ....................... 940,289 463,515
Interest receivable ................................... 440,124 27,046
Dividends receivable .................................. -- 54,417
Receivable from investment manager .................... 10,249 9,006
Unamortized organization expenses ..................... 12,896 12,296
----------- -----------
Total Assets ............................................ 29,817,794 76,825,325
----------- -----------
LIABILITIES:
Payable for investments purchased ..................... -- 1,258,917
Distributions payable ................................. 53,728 --
Payable for fund shares redeemed ...................... 941 2,445
Advisory fees payable ................................. -- 78,172
Audit fees payable .................................... 10,882 10,746
Investment manager fees payable ....................... -- 6,474
Transfer agent fees payable ........................... 5,000 5,000
Fund accounting fees payable .......................... 6,667 9,945
Custodian fees payable ................................ 2,221 8,815
Shareholder service fees payable ...................... 3,797 1,972
Administration fees payable ........................... 2,347 6,474
Legal expense payable ................................. 1,402 3,506
Other accrued expenses ................................ 35,822 9,560
----------- -----------
Total Liabilities ....................................... 122,807 1,402,026
----------- -----------
NET ASSETS .............................................. $29,694,987 $75,423,299
=========== ===========
(continued)
</TABLE>

See notes to financial statements.
<PAGE>
REPUBLIC FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
OCTOBER 31, 1997
<TABLE>
<CAPTION>
NEW YORK
TAX-FREE EQUITY
BOND FUND FUND
----------- -----------
<S> <C> <C>

NET ASSETS
Investor Shares ....................................... $20,793,775 $12,363,062
Adviser Shares ........................................ 8,901,212 63,060,237
----------- -----------
Total ................................................... $29,694,987 $75,423,299
=========== ===========
Shares Outstanding (par value $0.001,
unlimited number of shares authorized)
Investor Shares ....................................... 1,953,662 824,033
Adviser Shares ........................................ 836,354 4,202,203
----------- -----------
Total ................................................... 2,790,016 5,026,236
=========== ===========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE:
Investor Shares ....................................... $10.64 $15.00
=========== ===========
Adviser Shares ........................................ $10.64 $15.01
=========== ===========
COMPOSITION OF NET ASSETS:
Paid-in capital ....................................... $28,626,943 $60,040,829
Undistributed net investment income ................... -- 3,482
Accumulated net realized gains on investment
transactions ........................................ 115,458 8,534,683
Net unrealized appreciation on investments ............ 952,586 6,844,305
----------- -----------
NET ASSETS, OCTOBER 31, 1997 ............................ $29,694,987 $75,423,299
=========== ===========

See notes to financial statements.
</TABLE>
<PAGE>

REPUBLIC FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1997
<TABLE>
<CAPTION>
NEW YORK
TAX-FREE EQUITY
BOND FUND FUND
----------- -----------
<S> <C> <C>
INVESTMENT INCOME:
Interest income .......................................... $1,203,018 $ 157,490
Dividend income .......................................... -- 761,160
---------- -----------
1,203,018 918,650
---------- -----------
EXPENSES:
Advisory fees and investment management fees ............. 55,654 266,080
Administration fees ...................................... 22,299 53,385
Shareholder service fees (Investor Shares) ............... 34,933 16,940
Fund accounting fees ..................................... 40,866 45,121
Custodian fees and expenses .............................. 15,053 30,382
Audit fees ............................................... 20,565 20,536
Registration and filing fees ............................. 17,826 23,236
Amortization of organization expenses .................... 5,886 5,144
Trustees' fees ........................................... 1,013 1,949
Transfer agent fees....................................... 36,458 36,345
Reports to shareholders .................................. 36,496 44,055
Legal fees ............................................... 6,977 20,401
Other expenses ........................................... 27,929 3,988
---------- -----------
Total expenses ........................................... 321,955 567,562
Less: Voluntary fee reductions and reimbursement
of expenses ............................................ (128,525) (41,402)
---------- -----------
Total net expenses ....................................... 193,430 526,160
---------- -----------
Net Investment Income ...................................... 1,009,588 392,490
---------- -----------
REALIZED/UNREALIZED GAINS ON INVESTMENTS:
Net realized gains on investment transactions ............ 115,458 8,543,383
Net change in unrealized appreciation on investments ..... 746,912 3,163,098
---------- -----------
Net realized/unrealized gains on investments ............. 862,370 11,706,481
---------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS ............................................... $1,871,958 $12,098,971
========== ===========

See notes to financial statements.
</TABLE>
<PAGE>

REPUBLIC NEW YORK TAX-FREE BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1997 1996
----------- -----------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income ............................... $ 1,009,588 $ 468,429
Net realized gains on investment transactions ....... 115,458 27,393
Net change in unrealized appreciation on investments 746,912 19,308
----------- -----------
Change in net assets resulting from operations ........ 1,871,958 515,130
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Investor Shares ................................... (623,143) (339,572)
Adviser Shares .................................... (386,445) (128,857)
Net realized gains:
Investor Shares ................................... (14,151) (49,392)
Adviser Shares .................................... (12,589) --
----------- -----------
Change in net assets from shareholder distributions ... (1,036,328) (517,821)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sales of shares ....................... 18,908,256 16,761,193
Dividends reinvested ................................ 681,105 163,232
Payments for shares redeemed ........................ (5,315,439) (9,244,353)
----------- -----------
Change in net assets from capital share transactions .. 14,273,922 7,680,072
----------- -----------
CHANGE IN NET ASSETS .................................. 15,109,552 7,677,381
NET ASSETS
Beginning of year.................................... 14,585,435 6,908,054
----------- -----------
End of year ......................................... $29,694,987 $14,585,435
=========== ===========
ANALYSIS OF FUND SHARE TRANSACTIONS:
Investor Shares:
Beginning of year ................................... 616,806 665,278
Shares sold ......................................... 1,716,846 834,355
Shares issued in connection with reinvestment of
distributions ..................................... 56,958 15,027
Shares redeemed ..................................... (436,948) (897,854)
----------- -----------
End of year ......................................... 1,953,662 616,806
=========== ===========
Adviser Shares:
Beginning of year ................................... 799,293 --
Shares sold ......................................... 103,972 815,936
Shares issued in connection with reinvestment of
distributions ..................................... 8,468 811
Shares redeemed ..................................... (75,379) (17,454)
----------- -----------
End of year ......................................... 836,354 799,293
=========== ===========
See notes to financial statements.
</TABLE>
<PAGE>

REPUBLIC EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1997 1996
----------- -----------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income ............................... $ 392,490 $ 582,662
Net realized gains on investment transactions ....... 8,543,383 689,415
Net change in unrealized appreciation on
investments ....................................... 3,163,098 3,526,849
----------- -----------
Change in net assets resulting from operations ........ 12,098,971 4,798,926
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Investor Shares ..................................... (44,001) (356,031)
Adviser Shares ...................................... (418,175) (163,740)
Net realized gains:
Investor Shares ..................................... (80,739) --
Adviser Shares ...................................... (609,926) --
----------- -----------
Change in net assets from shareholder distributions ... (1,152,841) (519,771)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sales of shares ....................... 31,671,641 48,945,127
Dividends reinvested ................................ 732,663 23,919
Payment for shares redeemed ......................... (5,000,592) (38,267,144)
----------- -----------
Change in net assets from capital share transactions .. 27,403,712 10,701,902
----------- -----------
CHANGE IN NET ASSETS .................................. 38,349,842 14,981,057
NET ASSETS:
Beginning of year ................................... 37,073,457 22,092,400
----------- -----------
End of year (includes undistributed net investment
income of $3,482 and $73,168, respectively) ....... $75,423,299 $37,073,457
=========== ===========
ANALYSIS OF FUND SHARE TRANSACTIONS:
Investor Shares:
Beginning of year ................................... 328,468 2,157,254
Shares sold ......................................... 623,714 1,245,027
Shares issued in connection with reinvestment of
distributions ..................................... 9,004 2,061
Shares redeemed ..................................... (137,153) (3,075,874)
----------- -----------
End of year ......................................... 824,033 328,468
=========== ===========
Adviser Shares:
Beginning of year ................................... 2,779,322 --
Shares sold ......................................... 1,601,585 3,059,786
Shares issued in connection with reinvestment of
distributions ..................................... 49,432 38
Shares redeemed ..................................... (228,136) (280,502)
----------- -----------
End of year ......................................... 4,202,203 2,779,322
=========== ===========
See notes to financial statements.
</TABLE>

<PAGE>

REPUBLIC ADVISOR FUNDS TRUST
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1997
<TABLE>
<CAPTION>
FIXED INTERNATIONAL SMALL CAP
INCOME EQUITY EQUITY
FUND FUND FUND
----------- ------------ ------------
<S> <C> <C> <C>
ASSETS:
Investment in Republic Fixed Income
Portfolio, Republic International Equity
Portfolio and Republic Small Cap Equity
Portfolio, respectively, at value ......... $71,968,276 $132,916,839 $137,946,182
Receivable for fund shares sold ............. -- -- 71,255
Receivable from Investment Manager .......... 8,384 6,456 --
Unamortized organization expenses ........... 8,674 1,722 13,593
Tax reclaim receivable ...................... -- 107,992 --
Prepaid expenses ............................ 1,057 2,064 1,694
----------- ------------ ------------
Total Assets .................................. 71,986,391 133,035,073 138,032,724
----------- ------------ ------------
LIABILITIES:
Distributions payable ....................... 270,908 -- --
Payable for fund shares repurchased ......... -- 68,254 --
Registration and filing fees payable ........ 9,544 5,791 6,377
Reports to shareholders payable ............. 3,000 4,000 3,000
Administration fees payable ................. 3,021 6,081 6,096
Audit fee payable ........................... 4,677 4,330 4,432
Transfer agent fees payable ................. 4,166 4,166 4,166
Fund accounting fees payable ................ 1,500 1,500 1,500
Other accrued expenses ...................... 3,405 17,402 11,186
----------- ------------ ------------
Total Liabilities ............................. 300,221 111,524 36,757
----------- ------------ ------------
NET ASSETS .................................... $71,686,170 $132,923,549 $137,995,967
=========== ============ ============
Shares Outstanding (par value $0.001, unlimited
number of shares authorized) ................ 6,561,974 9,659,005 10,263,905
=========== ============ ============
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE ................. $10.92 $13.76 $13.44
====== ====== ======
COMPOSITION OF NET ASSETS:
Paid-in capital ............................. $69,387,290 $109,381,517 $107,877,457
Undistributed net investment income (loss) .. (5,575) 1,905,982 --
Accumulated net realized gains on investment
and foreign currency transactions ......... 742,271 6,451,495 12,690,078
Net unrealized appreciation on investments
and foreign currency transactions ......... 1,562,184 15,184,555 17,428,432
----------- ------------ ------------
NET ASSETS, OCTOBER 31, 1997 .................. $71,686,170 $132,923,549 $137,995,967
=========== ============ ============

See notes to financial statements.
</TABLE>
<PAGE>
REPUBLIC ADVISOR FUNDS TRUST
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1997
<TABLE>
<CAPTION>
FIXED INTERNATIONAL SMALL CAP
INCOME EQUITY EQUITY
FUND FUND FUND
---------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Investment Income from Republic Fixed Income
Portfolio, Republic International Equity
Portfolio and Republic Small Cap Equity
Portfolio, respectively:
Interest income ............................... $3,930,929 $ 346,200 $ 421,285
Dividend income (net of foreign withholding tax
of $0, $303,950 and $98, respectively) ...... 61,164 1,923,736 167,615
---------- ----------- -----------
3,992,093 2,269,936 588,900
Allocated Net Expenses from respective
Portfolio ................................... (339,599) (942,423) (955,296)
---------- ----------- -----------
Net Investment Income (Loss) from Republic
Fixed Income Portfolio, Republic International
Equity Portfolio and Republic Small Cap Equity
Portfolio, respectively ....................... 3,652,494 1,327,513 (366,396)
---------- ----------- -----------

EXPENSES:
Administration fees ........................... 29,549 62,326 56,899
Reports to shareholders ....................... 27,794 28,484 19,409
Registration fees ............................. 24,713 29,600 43,775
Audit fees .................................... 5,528 5,528 5,928
Amortization of organization expenses ......... 4,706 4,679 3,398
Transfer agent fees ........................... 29,986 29,986 29,987
Fund accounting fees .......................... 9,000 9,000 9,000
Legal fees .................................... 12,270 14,463 22,405
Other expenses ................................ 17,633 7,140 24,845
---------- ----------- -----------
Total expenses ............................ 161,179 191,206 215,646
Less: Reimbursement of expenses ........... (11,965) (6,456) (11,728)
---------- ----------- -----------
Total net expenses ........................ 149,214 184,750 203,918
---------- ----------- -----------
Net Investment Income (Loss) .................... 3,503,280 1,142,763 (570,314)
---------- ----------- -----------

See notes to financial statements.
</TABLE>
<PAGE>
REPUBLIC ADVISOR FUNDS TRUST
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED OCTOBER 31, 1997
<TABLE>
<CAPTION>
FIXED INTERNATIONAL SMALL CAP
INCOME EQUITY EQUITY
FUND FUND FUND
---------- ----------- -----------

REALIZED/UNREALIZED GAINS ON INVESTMENTS FROM
REPUBLIC FIXED INCOME PORTFOLIO, REPUBLIC
INTERNATIONAL EQUITY PORTFOLIO
AND REPUBLIC SMALL CAP EQUITY
PORTFOLIO, RESPECTIVELY:
Net realized gains on:
<S> <C> <C> <C>
Investment transactions ..................... $ 857,241 $ 6,685,523 $13,603,766
Foreign currency transactions ............... 100,179 935,771 --
Net change in unrealized appreciation on:
Investments ................................. 840,881 7,868,666 15,282,655
Foreign currency transactions ............... 87,949 230,234 --
---------- ----------- -----------
Net realized/unrealized gains on investments
from Republic Fixed Income Portfolio,
Republic International Equity Portfolio and
Republic Small Cap Equity Portfolio,
respectively: ............................... 1,886,250 15,720,194 28,886,421
---------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS .................................. $5,389,530 $16,862,957 $28,316,107
========== =========== ===========

See notes to financial statements.
</TABLE>
<PAGE>

REPUBLIC FIXED INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1997 1996
----------- -----------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income ............................... $ 3,503,280 $ 1,975,038
Net realized gains on investment and foreign currency
transactions from Republic Fixed Income Portfolio . 957,420 105,442
Net change in unrealized appreciation on investments
and foreign currency transactions from Republic
Fixed Income Portfolio ............................ 928,830 294,621
----------- -----------
Change in net assets resulting from operations ........ 5,389,530 2,375,101
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ............................... (3,739,062) (2,012,563)
Net realized gains from investment transactions ..... (54,690) (984,386)
----------- -----------
Change in net assets from shareholder distributions ... (3,793,752) (2,996,949)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares ........................ 28,743,298 17,018,440
Dividends reinvested ................................ 3,133,766 2,678,575
Payments for shares redeemed ........................ (4,210,585) (2,779,261)
----------- -----------
Change in net assets from capital share transactions .. 27,666,479 16,917,754
----------- -----------
CHANGE IN NET ASSETS .................................. 29,262,257 16,295,906
NET ASSETS:
Beginning of year ................................... 42,423,913 26,128,007
---------- ----------
End of year (including undistributed net investment
(loss) income of ($5,575) and $156,610, respectively) $71,686,170 $42,423,913
=========== ===========
ANALYSIS OF FUND SHARE TRANSACTIONS:
Beginning of year ................................... 3,976,847 2,384,633
Shares sold ......................................... 2,685,217 1,606,387
Shares issued in connection with reinvestment
of distributions .................................. 292,064 252,379
Shares redeemed ..................................... (392,154) (266,552)
----------- -----------
End of year ......................................... 6,561,974 3,976,847
=========== ===========
See notes to financial statements.
</TABLE>
<PAGE>

REPUBLIC INTERNATIONAL EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1997 1996
------------ -----------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income ............................... $ 1,142,763 $ 717,368
Net realized gains on investment and foreign currency
transactions from Republic International Equity
Portfolio ......................................... 7,621,294 1,941,290
Net change in unrealized appreciation on investments
and foreign currency transactions from Republic
International Equity Portfolio .................... 8,098,900 5,449,722
------------ -----------
Change in net assets resulting from operations ........ 16,862,957 8,108,380
------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ............................... (935,863) (790,956)
Net realized gains from investment transactions ..... (1,289,883) (31,193)
------------ -----------
Change in net assets from shareholder distributions ... (2,225,746) (822,149)
------------ -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares ........................ 41,976,406 59,060,764
Dividends reinvested ................................ 2,161,250 778,445
Payments for shares redeemed ........................ (22,828,487) (4,392,300)
------------ -----------
Change in net assets from capital share transactions .. 21,309,169 55,446,909
------------ -----------
CHANGE IN NET ASSETS .................................. 35,946,380 62,733,140
NET ASSETS:
Beginning of year ................................... 96,977,169 34,244,029
------------ -----------
End of year (including undistributed net investment
income of $1,905,982 and $544,232, respectively) .. $132,923,549 $96,977,169
============ ===========
ANALYSIS OF FUND SHARE TRANSACTIONS:
Beginning of year ................................... 8,046,448 3,171,731
Shares sold ......................................... 3,083,737 5,181,883
Shares issued in connection with reinvestment
of distributions .................................. 174,518 68,777
Shares redeemed ..................................... (1,645,698) (375,943)
------------ -----------
End of year ......................................... 9,659,005 8,046,448
============ ===========
See notes to financial statements.
</TABLE>
<PAGE>

REPUBLIC SMALL CAP EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SEPTEMBER 3, 1996
YEAR ENDED (COMMENCEMENT
OCTOBER 31, OF OPERATIONS) TO
1997 OCTOBER 31, 1996
------------ -----------------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment loss ............................... $ (570,314) $ (23,985)
Net realized gains on investment transactions from
Republic Small Cap Equity Portfolio ............. 13,603,766 260,260
Net change in unrealized appreciation on
investments from Republic Small Cap Equity
Portfolio ....................................... 15,282,655 2,145,777
------------ -----------
Change in net assets resulting from operations ...... 28,316,107 2,382,052
------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gains from investment transactions ... (563,867) --
------------ -----------
Change in net assets from shareholder
distributions ..................................... (563,867) --
------------ -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares ...................... 32,346,683 91,376,175
Dividends reinvested .............................. 563,867 --
Payments for shares redeemed ...................... (15,508,850) (916,300)
------------ -----------
Change in net assets from capital share
transactions ...................................... 17,401,700 90,459,875
------------ -----------
CHANGE IN NET ASSETS ................................ 45,153,940 92,841,927
NET ASSETS:
Beginning of year ................................. 92,842,027 100
------------ -----------
End of year ....................................... $137,995,967 $92,842,027
============ ===========
ANALYSIS OF FUND SHARE TRANSACTIONS:
Beginning of year ................................. 8,732,842 --
Shares sold ....................................... 2,804,428 8,820,593
Shares issued in connection with reinvestment of
distributions ................................... 53,145 --
Shares redeemed ................................... (1,326,510) (87,751)
---------------- ----------
End of year ....................................... 10,263,905 8,732,842
============ ===========
See notes to financial statements.
</TABLE>

<PAGE>

REPUBLIC FUNDS
REPUBLIC ADVISOR FUNDS TRUST
NOTES TO FINANCIAL STATEMENTS - OCTOBER 31, 1997

1. ORGANIZATION. The Republic New York Tax-Free Bond Fund and Republic
Equity Fund (the "Trust Funds") are separate series of Republic Funds (the
"Trust"), a Massachusetts business trust organized on April 22, 1987,
which currently consists of seven funds, each of which has different and
distinct investment objectives and policies. The financial statements for
the other five funds of the Trust are presented separately. The Republic
Fixed Income Fund, Republic International Equity Fund and Republic Small
Cap Equity Fund (the "Advisor Funds") are separate series of Republic
Advisor Funds Trust (the "Advisor Trust"), a Massachusetts business trust
organized on April 5, 1996, which currently consists of three funds, each
of which has different and distinct investment objectives and policies.
The Trust and Advisor Trust are registered under the Investment Company
Act of 1940, as amended (the "Act"), as an open-end management investment
company.

The New York Tax-Free Bond Fund and Equity Fund are authorized to
issue two classes of shares, Class C Shares ("Investor Shares"), and Class
Y Shares ("Adviser Shares"). Each class of shares in the two Funds has
identical rights and privileges except with respect to fees paid under
shareholder servicing or distribution plans, expenses exclusively
allocable to each class of shares, voting rights on matters affecting a
single class of shares, and the exchange privilege of each class of
shares. The Fixed Income Fund, International Equity Fund and Small Cap
Equity Fund offer one class of shares which have the same features as the
Adviser Shares of the New York Tax-Free Bond Fund and Equity Fund.

The investment objective of the New York Tax-Free Bond Fund is to
provide shareholders of the Fund with monthly dividends exempt from
regular federal, New York State and New York City personal income taxes as
well as to protect the value of the shareholders' investment. The New York
Tax-Free Bond Fund seeks to achieve its investment objective by investing
its assets primarily in a non-diversified portfolio of municipal bonds and
notes and other debt instruments the interest on which is exempt from
regular federal, New York State and New York City personal income taxes.

The investment objective of the Equity Fund is long-term growth of
capital and income without excessive fluctuations in market value. The
Equity Fund will normally invest in equity securities of large, seasoned
companies in sound financial condition with larger capitalization which
are expected to show above-average price appreciation.

The Fixed Income Fund, International Equity Fund and Small Cap Equity
Fund seek to achieve their investment objectives by investing
substantially all of their assets in the Republic Fixed Income Portfolio,
Republic International Equity Portfolio and Republic Small Cap Equity
Portfolio (individually a "Portfolio", collectively the "Portfolios"),
respectively, which have the same investment objectives as those of the
respective Adviser Funds. The investment objective of the Republic Fixed
Income Portfolio is to realize above-average total return over a market
cycle of three to five years, consistent with reasonable risk through
investment in a diversified portfolio of U.S. Government securities,
corporate bonds (including bonds rated below investment grade commonly
referred to as "junk bonds"), foreign fixed-income securities, mortgage-
backed securities of domestic issuers and other fixed-income securities.
The investment objective of the Republic International Equity Portfolio is
to seek long-term growth of capital and future income through investment
primarily in securities of non-U.S. issuers (including American Depository
Receipts ("ADRs") and U.S. registered securities) and securities whose
principal markets are outside the United States. The investment objective
of the Republic Small Cap Equity Portfolio is to seek long-term growth of
capital by investing primarily in equity securities of small- and medium-
sized companies that are early in their life cycle but which may have
potential to become major enterprises.

The value of each Advisor Fund's investment in each corresponding
Portfolio included in the accompanying statements of assets and
liabilities reflects each Advisor Fund's proportionate beneficial interest
in the net assets of that Portfolio. At October 31, 1997, the Advisor
Funds held proportionate interests in the corresponding Portfolios in the
following amounts:

Fixed Income Fund ............................................ 60.78%
International Equity Fund .................................... 64.17%
Small Cap Equity Fund ........................................ 64.54%

The performance of each of the Advisor Funds is directly affected by
the performance of their corresponding Portfolios. The financial
statements of each Portfolio, including its schedule of investments, are
included elsewhere within this report and should be read in conjunction
with each Funds' financial statements.

Republic National Bank of New York ("Republic" or the "Manager")
serves as investment adviser to the New York Tax-Free Bond Fund and as
investment manager to the Equity Fund. Effective January 22, 1997,
Alliance Capital Management L.P. ("Alliance") and Brinson Partners, Inc.
("Brinson") replaced Lord Abbett as sub-adviser ("Sub-Adviser") to the
Equity Fund.

BISYS Fund Services, Inc. ("BISYS"or the "Sponsor"), serves as
administrator, distributor and sponsor to the Trust Funds and Advisor
Funds.

2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the
significant accounting policies followed by the Trust Funds and Advisor
Funds in the preparation of their financial statements. The policies are
in conformity with generally accepted accounting principles. The
preparation of financial statements requires management to make estimates
and assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates.

SECURITIES VALUATION:
Bonds and other fixed income securities (other than short-term obligations
but including listed issues) in the New York Tax-Free Bond Fund's
portfolio are valued on the basis of valuations furnished by a pricing
service, which utilizes both dealer-supplied valuations and electronic
data processing techniques which take into account appropriate factors
such as institutional-size trading in similar groups of yield, quality,
coupon rate, maturity, type of issue, trading characteristics other than
market data and without exclusive reliance upon quoted prices or exchanges
or over-the-counter prices, since such valuations are believed to reflect
more accurately the fair value of such securities. Short-term debt
obligations are valued at amortized cost, which approximates market value,
as determined by the Board of Trustees. Portfolio securities for which
there are no such valuations are valued at fair market value as determined
in good faith by, or at the direction of, the Board of Trustees.

The value of each security held by the Equity Fund is based either on
the last sale price on a national securities exchange, or in the absence
of recorded sales, at the closing bid prices on such exchanges, or at the
quoted bid price in the over-the-counter market. Securities or other
assets for which market quotations are not readily available are valued at
fair market value as determined in good faith by, or at the direction, of
the Board of Trustees. All debt portfolio securities with a remaining
maturity of less than 60 days are valued at amortized cost, which
approximates market value.

Valuation of securities held by the Portfolios is discussed in Note 2
of the notes to the financial statements of the Portfolios which are
included elsewhere in this report.

SECURITIES TRANSACTIONS AND RELATED INCOME:
Security transactions in the New York Tax-Free Bond Fund and the Equity
Fund are accounted for on the date the security is purchased or sold
(trade date). Interest income is recognized on the accrual basis and
includes, where applicable, the amortization or accretion of premium or
discount, respectively. Dividend income is recorded on the ex-dividend
date. Gains or losses realized on sales of securities are determined by
comparing the identified cost of the security lot sold with the net sales
proceeds.

The Fixed Income Fund, International Equity Fund and Small Cap Equity
Fund record their proportionate share of the net investment income and
realized and unrealized gains and losses recorded by the corresponding
Portfolio on a daily basis. The net investment income and realized and
unrealized gains and losses are allocated daily to investors in each
Portfolio based upon the proportionate value of their investments in each
Portfolio. Such investments are adjusted on a daily basis.

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
The New York Tax-Free Bond Fund and the Fixed Income Fund declare all net
investment income daily as dividends to their shareholders and distribute
such dividends monthly. Dividends from net investment income are declared
and distributed, quarterly in the case of the Equity Fund, semi-annually
in the case of the Small Cap Equity Fund and annually in the case of the
International Equity Fund. Generally, the Advisor Funds' and Trust Funds'
net investment income consists of the interest and dividend income it
earns, less expenses. In computing interest income, premiums are not
amortized nor are discounts accrued on long-term debt securities in each
corresponding portfolio, except as required for federal income tax
purposes.

The Trust Funds' and Advisor Funds' net realized capital gains, if
any, are distributed to shareholders at least annually. Additional
distributions are also made to the Trust Funds' and Advisor Funds'
shareholders to the extent necessary to avoid application of the 4% non-
deductible federal excise tax on certain undistributed income and net
capital gains of regulated investment companies.

The amount of distributions from net investment income and net
realized gains are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting
principles.

These "book/tax" differences are either considered temporary or
permanent in nature. To the extent these differences are permanent in
nature. To the extent these differences are permanent in nature, such
amounts are reclassified within the composition of net assets based on
their federal tax-basis treatment; temporary differences do not require
reclassification. Dividends and distributions to shareholders which exceed
net investment income and net realized capital gains for financial
reporting purposes but not for tax purposes are reported as dividends in
excess of net investment income or distributions in excess of net realized
gains. To the extent they exceed net investment income and net realized
gains for tax purposes, they are reported as distributions of capital.

As of October 31, 1997, the following reclassifications have been made
to increase (decrease) such accounts with offsetting adjustments made to
paid-in capital:
ACCUMULATED ACCUMULATED NET
UNDISTRIBUTED REALIZED GAIN/
NET INVESTMENT (LOSS)
INCOME ON INVESTMENTS
------ --------------
Fixed Income Fund .............. $ 73,597 $ (82,717)
International Equity Fund ...... 1,154,850 (1,226,796)
Small Cap Equity Fund .......... 570,314 (566,916)

Certain mortgage-backed securities of the Fixed Income Portfolio may
provide for periodic or unscheduled payments of principal and interest as
the mortgages underlying the securities are paid or prepaid. However, such
principal payments (not otherwise characterized as ordinary discount
income or bond premium expense) will not normally be considered as income
to the Fixed Income Portfolio and therefore will not be distributed as
dividends to Fixed Income Fund shareholders. Rather, these payments on
mortgage-backed securities generally will be reinvested by the Fixed
Income Portfolio in accordance with its investment objective and policies.

Unless a shareholder elects to receive dividends in cash, dividends
are distributed in the form of additional shares (purchased at the
respective Fund's net asset value without a sales charge).

REPURCHASE AGREEMENTS:
With respect to the New York Tax-Free Bond Fund and Equity Fund, the
investment adviser is authorized to enter into repurchase agreements on
behalf of the Fund only with member banks of the Federal Reserve System or
"primary dealers" (as designated by the Federal Reserve Bank of New York).
The Equity Fund may also enter into repurchase agreements with sellers who
are member firms (or a subsidiary thereof) of the New York Stock Exchange,
recognized domestic or foreign securities dealers or institutions which an
Equity sub-adviser has determined to be of comparable creditworthiness.
The repurchase price generally equals the price paid by a Fund plus
interest negotiated on the basis of current short-term rates, which may be
more or less than the rate on the underlying portfolio securities. The
seller, under a repurchase agreement, is required to maintain the value of
collateral held pursuant to the agreement at not less than the repurchase
price (including accrued interest). Securities subject to repurchase
agreements are held by a Fund's custodian, either physically or in book
entry form. Repurchase agreements are considered to be loans by the Funds
under the Act.

EXPENSE ALLOCATION:
Expenses incurred by the Trust and Advisor Trust with respect to any two
or more funds in the Trust and Advisor Trust are allocated in proportion
to the net assets of each fund in the Trust and Advisor Trust, except
where allocations of direct expenses to each fund can otherwise be made
more fairly. Expenses directly attributable to a fund are charged to that
fund. The Advisor Funds' share of their corresponding Portfolio's expenses
are charged against and reduce the amount of their investment in their
corresponding Portfolio.

FEDERAL INCOME TAXES:
Each of the Trust Funds and Advisor Funds are treated as separate taxable
entities for federal tax purposes. Each Fund intends to qualify each year
as a "regulated investment company" under Subchapter M of the Internal
Revenue Code, as amended, (the "Code"). By so qualifying, the Trust Funds
and Advisor Funds will be exempt from regular federal income taxes to the
extent that they distribute substantially all of their net investment
income and net realized gains to their shareholders.

UNAMORTIZED ORGANIZATION EXPENSES:
Each of the Trust Funds and Advisor Funds incurred certain costs in
connection with their organization. Such costs have been deferred and are
being amortized on a straight-line basis over a five year period from the
commencement of operations.

3. AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES.
INVESTMENT MANAGEMENT:
Republic National Bank of New York ("Republic" or the "Manager") acts as
investment adviser to the New York Tax-Free Bond Fund and as investment
manager to the Equity Fund. Republic provides general supervision over the
investment management functions performed by the Sub-Advisers. For its
services under the Investment Management Contracts, the Manager is
entitled to receive fees, payable monthly, at the annual rate of 0.25% of
the New York Tax Free Bond Fund's average daily net assets and 0.175% of
the Equity Fund's average daily net assets. For the year ended October 31,
1997 the Manager waived all of the fees on the New York Tax-Free Bond Fund
and $30,089 of fees on the Equity Fund.

SUB-ADVISORY:
Lord Abbett managed the investment portfolio of the Equity Fund subject to
the supervision of the Investment Manager, pursuant to a Sub-Advisory
Agreement with the Manager for the period November 1, 1996 through January
22, 1997. For its services, Lord Abbett was paid a fee by the Equity Fund,
computed daily and based on the Equity Fund's average daily net assets
allocated to such Equity Sub-Adviser for management, equal on an annual
basis to 0.325% of the net assets up to $50 million, 0.25% of the net
assets over $50 million up to $100 million, 0.20% of the net assets over
$100 million up to $200 million, and 0.15% of net assets over $200
million. For this period Lord Abbett received $28,929.

Effective January 23, 1997, Alliance and Brinson were each appointed
as Sub-Advisers to the Equity Fund, pursuant to separate Sub-Advisory
Agreements. Alliance and Brinson serve as Sub-Advisers with substantially
identical terms as described above. For their services, Alliance and
Brinson received $71,381 fees in total for the period January 23, 1997
through October 31, 1997.

ADMINISTRATION:
Pursuant to an Administrative Services Agreement, BISYS provides the Funds
with general office facilities and supervises the overall administration
of the Funds including, among other responsibilities, assisting in the
preparation and filing of all documents required for compliance by the
Funds with applicable laws and regulations and arranging for the
maintenance of books and records of the Funds. For its services to the New
York Tax-Free Bond Fund and Equity Fund, BISYS receives from each Fund
fees payable monthly equal on an annual basis to 0.10% of the Fund's
average daily net assets up to $1 billion; 0.08% of the next $1 billion of
such assets; and 0.07% of such assets in excess of $2 billion. For its
services to the Fixed Income Fund, International Equity Fund and Small Cap
Equity Fund, BISYS receives from each Fund fees payable monthly equal on
an annual basis to 0.05% of the Fund's average daily net assets up to $1
billion; 0.04% of the next $1 billion of such assets; and 0.035% of such
assets in excess of $2 billion. For the year ended October 31, 1997 the
administrative services fees were:

New York Tax-Free Bond Fund ................................. $22,299
Equity Fund .................................................. 53,385
Fixed Income Fund ............................................ 29,549
International Equity Fund .................................... 62,326
Small Cap Equity Fund ........................................ 56,899

FUND ACCOUNTING:
Pursuant to a Fund Accounting Agreement, Investors Bank & Trust Company
("IBT") serves as a fund accounting agent to the Trust Funds and Advisor
Funds. For its services to the Trust Funds, IBT received fees payable
monthly equal on an annual basis to $40,000 from each Fund. For its
services to the Advisor Funds, IBT received fees payable monthly equal on
an annual basis to $9,000 from each Fund.

RULE 12B-1 PLAN EXPENSES:
The Trust Funds have adopted a non-compensatory Distribution Plan and
Agreement (the "Plan") pursuant to Rule 12b-1 of the Act. The Plan
provides for a monthly payment by the Trust Funds to the Sponsor in
amounts representing actual expenses incurred by the Sponsor for marketing
costs and services rendered in distributing the Funds' Investor Shares at
a rate not to exceed 0.25% of the average daily net assets of the Funds
(Investors Shares only for New York Tax Free Bond Fund and Equity Fund).

SHAREHOLDER SERVICING EXPENSES:
The Trust Funds have entered into a Shareholder Servicing Agreement with
each shareholder servicing agent pursuant to the Administrative Services
Plan. Each shareholder servicing agent receives a fee from each Fund,
which may be paid periodically, determined by a formula based upon the
number of accounts serviced, the level of activity in such accounts and
the expenses incurred by the shareholder servicing agent. The aggregate
fees paid to the Distributor pursuant to the Plan and to shareholder
servicing agents pursuant to the Administrative Services Plan historically
have not exceeded 0.25% per annum of each Fund's average daily net assets
of the Funds (Investor Shares only for New York Tax-Free Bond Fund and
Equity Fund). During the year ended October 31, 1997, shareholder
servicing fees were as follows:

New York Tax-Free Bond Fund ................................. $34,933
Equity Fund ................................................. 16,940

REIMBURSEMENT AND WAIVER OF EXPENSES:
The Manager has voluntarily agreed to waive a portion of its fees, and to
the extent necessary, reimburse the Funds for certain expenses. For the
year ended October 31, 1997 expenses of the Trust Funds and Advisor Funds
were voluntarily reduced by amounts as detailed below:
AMOUNTS WAIVED/
REIMBURSED
----------

New York Tax-Free Bond Fund - Investor Shares ................. $87,761
New York Tax-Free Bond Fund - Adviser Shares .................. 40,764
Equity Fund - Investor Shares ................................. 5,017
Equity Fund - Adviser Shares .................................. 36,385
Fixed Income Fund ............................................. 11,965
International Equity Fund ..................................... 6,456
Small Cap Equity Fund ......................................... 11,728

4. INVESTMENT TRANSACTIONS. Purchases of and proceeds from sales and
maturities of investments, excluding short-term securities, for the Trust
Funds for the year ended October 31, 1997 amounted to:

PURCHASES PROCEEDS
--------- --------
New York Tax-Free Bond Fund ............ $49,159,139 $35,812,919
Equity Fund ............................ 79,615,728 48,666,595

During the year ended October 31, 1997, additions and reductions in
each Advisor Fund's investment in their corresponding Portfolio amounted
to:

ADDITIONS REDUCTIONS
--------- ----------
Fixed Income Fund ...................... $28,744,734 $ 4,762,347
International Equity Fund .............. 42,108,448 23,282,072
Small Cap Equity Fund .................. 41,702,984 16,205,550

5. CONCENTRATION OF CREDIT RISK.
The New York Tax-Free Bond Fund invests primarily in debt obligations
issued by the State of New York and its respective political subdivisions,
agencies and public authorities to obtain funds for various public
purposes. The Fund is more susceptible to economic and political factors
adversely affecting issuers of New York specific municipal securities than
are municipal bond funds that are not concentrated in these issuers to the
same extent.

6. CAPITAL SHARE TRANSACTIONS BY SHARE CLASS:
Transactions in shares of beneficial interest by class for the New York
Tax Free Bond and Equity Funds for the year ended October 31, 1997:
<TABLE>
<CAPTION>
AMOUNTS
PROCEEDS PAID FOR NET
FROM SHARES DIVIDENDS SHARES INCREASE/
ISSUED REINVESTED REDEEMED (DECREASE)
------ ---------- -------- ----------
<S> <C> <C> <C> <C>
New York Tax-Free Bond Fund -
Investor Shares .................... $17,824,243 $593,163 $(4,534,332) $13,883,074
New York Tax-Free Bond Fund - Adviser
Shares ............................. 1,084,013 87,942 (781,107) 390,848
Equity Fund - Investor Shares ....... 9,098,775 114,750 (1,850,916) 7,362,609
Equity Fund - Adviser Shares ........ 22,572,866 617,913 (3,149,676) 20,041,103
</TABLE>

Transactions in shares of beneficial interest for the New York Tax-
Free Bond and Equity Funds for the year ended October 31, 1996:

<TABLE>
<CAPTION>
AMOUNTS
PROCEEDS PAID FOR NET
FROM SHARES DIVIDENDS SHARES INCREASE/
ISSUED REINVESTED REDEEMED (DECREASE)
------ ---------- -------- ----------
<S> <C> <C> <C> <C>
New York Tax-Free Bond Fund -
Investor Shares .................... $ 8,530,934 $154,887 $(9,067,365) $ (381,544)
New York Tax-Free Bond Fund -
Adviser Shares (a) ................. 8,230,259 8,345 (176,988) 8,061,616
Equity Fund - Investor Shares ....... 13,938,178 23,486 (35,185,178) (21,223,514)
Equity Fund - Adviser Shares (a) .... 35,006,949 433 (3,081,966) 31,925,416

(a) For the period from July 1,1996 (date of initial offering) to October 31, 1996.
</TABLE>

7. SUBSEQUENT EVENT
The Board of Trustees of the Funds approved the transfer of the custody
function to Republic National Bank of New York effective from December 1,
1997 for the Funds and the Portfolios excluding the Republic International
Equity Portfolio.

8. FEDERAL TAX STATUS OF DIVIDENDS (UNAUDITED)
Short-term and long-term capital gain dividends paid during the period are
presented below. For federal income tax purposes, dividends from short-
term capital gains are classified as ordinary income. All net investment
income dividends were ordinary income, except for the Republic New York
Tax-Free Bond Fund which paid 100% of net investment income dividends as
"exempt interest dividends".

SHORT-TERM LONG-TERM
CAPITAL GAIN CAPITAL GAIN
DIVIDENDS DIVIDENDS
--------- ---------

New York Tax-Free Bond Fund .. $ 7,851 $ 18,889
Equity Fund .................. 667,870 22,795
Fixed Income Fund ............ 13,484 41,206
International Equity Fund .... 649,444 640,439
Small Cap Fund ............... 266,802 297,065

9. Foreign Tax Credit Pass Through -- International Equity Fund (unaudited)
Pursuant to Treasury Regulations, the Fund will elect to pass through
foreign tax credit for the fiscal year ended October 31, 1997 as follows:

NET INCOME FOREIGN TAX
COUNTRY PERCENTAGE PERCENTAGE
- ------- ---------- ----------
Argentina 1.06% 0.00%
Australia 6.56% 0.07%
Brazil 0.87% 0.00%
Canada 6.07% 5.81%
Denmark 0.63% 0.00%
Finland 0.42% 0.54%
France 4.29% 7.09%
Germany 3.90% 8.49%
Hong Kong 6.07% 0.00%
Indonesia 0.20% 0.00%
Ireland 0.36% 0.00%
Italy 2.70% 4.60%
Japan 6.82% 8.62%
Malaysia 2.05% 4.07%
Mexico 1.58% 0.00%
Netherlands 2.56% 4.48%
New Zealand 1.24% 1.08%
Norway 1.00% 1.22%
Peru 0.28% 0.00%
Philippines 0.01% 0.00%
Portugal 0.85% 0.00%
Singapore 0.45% 0.95%
South Korea 0.41% 0.00%
Spain 2.97% 6.03%
Sweden 5.03% 11.80%
Switzerland 4.91% 9.23%
Taiwan 0.68% 0.00%
Thailand 0.21% 0.17%
UK 21.46% 25.75%
------ ------
Foreign Source Income 85.64% 100.00%
U.S. Income 14.36% 0.00%
------ ------
Total Income 100.00% 100.00%
====== ======

<PAGE>

REPUBLIC NEW YORK TAX-FREE BOND FUND
FINANCIAL HIGHLIGHTS - INVESTOR SHARES
<TABLE>
<CAPTION>

FOR THE PERIOD
FOR THE MAY 1, 1995
FOR THE YEAR (COMMENCEMENT
YEAR ENDED ENDED OF OPERATIONS) TO
OCTOBER 31, OCTOBER 31, OCTOBER 31,
1997 1996 1995
------ ------ ------
<S> <C> <C> <C>
NET ASSET VALUE PER SHARE, BEGINNING OF YEAR .. $10.30 $10.38 $10.00
------ ------ ------
Income from investment operations:
Net investment income ....................... 0.45 0.54 0.25
Net realized and unrealized gains (losses) on
investment transactions ................... 0.36 (0.01) 0.38
------ ------ ------
Total income from investment operations ....... 0.81 0.53 0.63
------ ------ ------
Less dividends and distributions:
Dividends to shareholders from net
investment income ......................... (0.45) (0.54) (0.25)
Distributions to shareholders from net
realized gains ............................ (0.02) (0.07) --
------ ------ ------
Total dividends and distributions ............. (0.47) (0.61) (0.25)
------ ------ ------
Net change in net asset value per share ....... 0.34 (0.08) 0.38
------ ------ ------
NET ASSET VALUE PER SHARE, END
OF YEAR ..................................... $10.64 $10.30 $10.38
====== ====== ======
Total return .................................. 8.22% 4.75% 6.39%(c)

RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of year (000) ............ $20,794 $6,353 $6,908
Ratio of expenses to average net assets ..... 0.92% 0.58% 0.50%(b)
Ratio of net investment income to average net
assets .................................... 4.46% 4.78% 4.91%(b)
Ratio of expenses to average net assets (a) 1.55% 2.21% 2.40%(b)
Ratio of net investment income to average net
assets (a) ................................ 3.83% 3.15% 3.01%(b)
Portfolio turnover (d) ...................... 163.46% 178.11% 130.00%

See notes to financial statements.
</TABLE>
<PAGE>

REPUBLIC NEW YORK TAX-FREE BOND FUND
FINANCIAL HIGHLIGHTS - ADVISER SHARES
<TABLE>
<CAPTION>
FOR THE
PERIOD
JULY 1, 1996
FOR THE (DATE OF INITIAL
YEAR ENDED OFFERING) TO
OCTOBER 31, 1997 OCTOBER 31, 1996
---------------- ----------------
<S> <C> <C>
NET ASSET VALUE PER SHARE, BEGINNING OF YEAR $10.30 $10.18
------ ------
Income from investment operations:
Net investment income ........................ 0.46 0.16
Net realized and unrealized gains on
investment transactions .................... 0.36 0.12
------ ------
Total income from investment operations .......... 0.82 0.28
------ ------
Less dividends and distributions:
Dividends to shareholders from net investment
income ..................................... (0.46) (0.16)
Distributions to shareholders from net
realized gains ............................. (0.02) --
------ ------
Total dividends and distributions ................ (0.48) (0.16)
------ ------
Net change in net asset value per share .......... 0.34 0.12
------ ------
NET ASSET VALUE PER SHARE, END OF YEAR ........... $10.64 $10.30
====== ======
Total return ..................................... 8.38% 5.02%(d)
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of year (000's) ........... $8,901 $8,233
Ratio of expenses to average net assets ...... 0.78% 0.60%(b)
Ratio of net investment income to average net
assets ..................................... 4.66% 4.78%(b)
Ratio of expenses to average net assets (a) .. 1.27% 2.26%(b)
Ratio of net investment income to average net
assets (a) ................................. 4.17% 3.12%(b)
Portfolio turnover (c) ....................... 163.46% 178.11%

(a) During the period, certain fees were voluntarily reduced and expenses reimbursed. If such
voluntary fee reductions and expense reimbursements had not occurred, the ratios would
have been as indicated.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole, without
distinguishing between the classes of shares issued.
(d) Represents total return for Investor Shares from November 1, 1995 to June 30, 1996 plus
the total return for Adviser Shares for the period from July 1, 1996 to October 31, 1996.

See notes to financial statements.
</TABLE>
<PAGE>

REPUBLIC EQUITY FUND
FINANCIAL HIGHLIGHTS - INVESTOR SHARES
<TABLE>
<CAPTION>

FOR THE PERIOD
FOR THE FOR THE AUGUST 1, 1995
YEAR YEAR (COMMENCEMENT
ENDED ENDED OF OPERATIONS) TO
OCTOBER 31, OCTOBER 31, OCTOBER 31,
1997 1996 1995
------ ------ ------
<S> <C> <C> <C>
NET ASSET VALUE PER SHARE, BEGINNING OF YEAR $11.93 $10.24 $10.00
------ ------ ------
Income from investment operations:
Net investment income .................... 0.07 0.19 0.04
Net realized unrealized gains on
investment transactions ................ 3.32 1.67 0.24
------ ------ ------
Total income from investment operations .... 3.39 1.86 0.28
------ ------ ------
Less dividends and distributions:
Dividends to shareholders from net
investment income ...................... (0.10) (0.17) (0.04)
Distributions to shareholders from net
realized gains ......................... (0.22) -- --
------ ------ ------
Total dividends and distributions .......... (0.32) (0.17) (0.04)
------ ------ ------
Net change in net asset value per share 3.07 1.69 0.24
------ ------ ------
NET ASSET VALUE PER SHARE, END OF YEAR ..... $15.00 $11.93 $10.24
====== ====== ======
Total return ............................... 28.92% 18.30% 2.75%(c)

RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of year (000) ......... $12,363 $3,918 $22,092
Ratio of expenses to average net assets 1.21% 1.28% 1.47%(b)
Ratio of net investment income to
average net assets ..................... 0.48% 1.83% 1.59%(b)
Ratio of expenses to average net
assets (a) ............................. 1.28% 1.59% 2.44%(b)
Ratio of net investment income to
average net assets (a) ................. 0.41% 1.51% 0.62%(b)
Portfolio turnover (d) ................... 99.02% 86.18% 2.00%
Average commission (d)(e) ................ $0.0438% $0.0599% --

(a) During the year, certain fees were voluntarily reduced and expenses reimbursed. If such
voluntary fee reductions and expense reimbursements had not occurred, the ratios would have been
as indicated.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover and average commission is calculated on the basis of the Fund as a whole,
without distinguishing between the classes of shares issued.
(e) Represents the total amount of commissions paid on security transactions divided by the total
number of shares purchased and sold by the Fund for which commissions were charged.

See notes to financial statements.
</TABLE>
<PAGE>

REPUBLIC EQUITY FUND
FINANCIAL HIGHLIGHTS - ADVISER SHARES
<TABLE>
<CAPTION>
FOR THE
PERIOD
JULY 1, 1996
FOR THE (DATE OF INITIAL
YEAR ENDED OFFERING) TO
OCTOBER 31, OCTOBER 31,
1997 1996
------ ------
<S> <C> <C>
NET ASSET VALUE PER SHARE, BEGINNING OF YEAR ........... $11.93 $11.49
------ ------
Income from investment operations:
Net investment income ............................... 0.10 0.08
Net realized and unrealized gains on investment
transactions ...................................... 3.33 0.42
------ ------
Total income from investment operations ................. 3.43 0.50
------ ------
Less dividends and distributions:
Dividends to shareholders from net investment income (0.13) (0.06)
Distributions to shareholders from net realized gains (0.22) --
------ ------
Total dividends and distributions ....................... (0.35) (0.06)
------ ------
Net change in net asset value per share ................. 3.08 0.44
------ ------
NET ASSET VALUE PER SHARE, END OF YEAR .................. $15.01 $11.93
====== ======
Total return ............................................ 29.28% 4.72%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of year (000's) .................. $63,060 $33,155
Ratio of expenses to average net assets ............. 0.96% 0.66%(b)
Ratio of net investment income to average net assets 0.77% 1.93%(b)
Ratio of expenses to average net assets (a) ......... 1.03% 0.97%(b)
Ratio of net investment income to average net
assets(a) ......................................... 0.70% 1.62%(b)
Portfolio turnover (d) .............................. 99.02% 86.18%
Average commission (d)(e) ........................... $0.0438 $0.0599

(a) During the year, certain fees were voluntarily reduced and expenses reimbursed. If such
voluntary fee reductions and expense reimbursements had not occurred, the ratios would
have been as indicated.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover and average commission is calculated on the basis of the Fund as a
whole, without distinguishing between the class of shares issued.
(e) Represents the total amount of commissions paid on security transactions divided by total
number of shares purchased and sold by the Fund for which commissions were charged.

See notes to financial statements.
</TABLE>
<PAGE>

REPUBLIC FIXED INCOME FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>

FOR THE PERIOD
FOR THE FOR THE JANUARY 9, 1995
YEAR YEAR (COMMENCEMENT
ENDED ENDED OF OPERATIONS) TO
OCTOBER 31, OCTOBER 31, OCTOBER 31,
1997 1996 1995
------ ------ ------
<S> <C> <C> <C>
NET ASSET VALUE PER SHARE,
BEGINNING OF YEAR ........................ $10.67 $10.96 $10.00
------ ------ ------
Income from investment operations:
Net investment income .................... 0.59 0.59 0.46
Net realized and unrealized gains
(losses) on investment and foreign
currency transactions .................. 0.31 0.08 0.96
------ ------ ------
Total income from investment
operations ............................... 0.90 0.67 1.42
------ ------ ------
Less dividends and distributions:
Dividends to shareholders from net
investment income ...................... (0.64) (0.59) (0.46)
Distributions to shareholders from net
realized gains ......................... (0.01) (0.37) --
------ ------ ------
Total dividends and distributions .......... (0.65) (0.96) (0.46)
------ ------ ------
Net change in net asset value per share .... 0.25 (0.29) 0.96
------ ------ ------
NET ASSET VALUE PER SHARE, END OF
YEAR ..................................... $10.92 $10.67 $10.96
====== ====== ======
Total return ............................... 9.14% 6.51% 14.37%(c)

RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of year (000) ......... $71,686 $42,424 $26,128
Ratio of expenses to average net assets 0.83% 0.83% 0.91%(b)
Ratio of net investment income to
average net assets ..................... 5.92% 5.51% 5.63%(b)
Ratio of expenses to average
net assets (a) ......................... 0.85% 1.06% 1.72%(b)
Ratio of net investment income to
average net assets (a) ................. 5.90% 5.28% 4.82%(b)

See notes to financial statements.
</TABLE>
<PAGE>

REPUBLIC INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>

FOR THE PERIOD
FOR THE FOR THE JANUARY 9, 1995
YEAR YEAR (COMMENCEMENT
ENDED ENDED OF OPERATIONS) TO
OCTOBER 31, OCTOBER 31, OCTOBER 31,
1997 1996 1995
------ ------ ------
<S> <C> <C> <C>
NET ASSET VALUE PER SHARE,
BEGINNING OF YEAR ........................ $12.05 $10.80 $10.00
------ ------ ------
Income from investment operations:
Net investment income .................... 0.12 0.11 0.08
Net realized and unrealized gains on
investment and foreign currency
transactions ........................... 1.85 1.31 0.75
------ ------ ------
Total income from investment operations .... 1.97 1.42 0.83
------ ------ ------
Less dividends and distributions:
Dividends to shareholders from net
investment income ...................... (0.11) (0.16) (0.03)
Distributions to shareholders from net
realized gains ......................... (0.15) (0.01) --
------ ------ ------
Total dividends and distributions .......... (0.26) (0.17) (0.03)
------ ------ ------
Net change in net asset value per share .... 1.71 1.25 0.80
------ ------ ------
NET ASSET VALUE PER SHARE, END OF YEAR ..... $13.76 $12.05 $10.80
====== ====== ======

Total return ............................... 16.62% 13.22% 8.31%(c)

RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of year (000) ......... $132,924 $96,977 $34,244
Ratio of expenses to average net assets 0.91% 1.11% 1.14%(b)
Ratio of net investment income to
average net assets ..................... 0.91% 0.99% 1.26%(b)
Ratio of expenses to average
net assets (a) ......................... 0.91% 1.13% 2.12%(b)
Ratio of net investment income to
average net assets (a) ................. 0.91% 0.96% 0.28%(b)

(a) During the year, certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
(b) Annualized.
(c) Not annualized.

See notes to financial statements.
</TABLE>
<PAGE>

REPUBLIC SMALL CAP EQUITY FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE PERIOD
SEPTEMBER 3, 1996
FOR THE (COMMENCEMENT
YEAR ENDED OF OPERATIONS) TO
OCTOBER 31 OCTOBER 31,
1997 1996
------ ------
<S> <C> <C>
NET ASSET VALUE PER SHARE, BEGINNING OF YEAR ....... $10.63 $10.00
------ ------
Income from investment operations:
Net investment loss ............................. (0.06) --
Net realized unrealized gains on investment
transactions .................................. 2.93 0.63
------ ------
Total income from investment operations ............. 2.87 0.63
------ ------
Less dividends and distributions:
Distributions to shareholders from net realized
gains ......................................... (0.06) --
------ ------
Total dividends and distributions ................... (0.06) --
------ ------
Net change in net asset value per share ............. 2.81 0.63
------ ------
NET ASSET VALUE PER SHARE, END OF YEAR .............. $13.44 $10.63
====== ======
Total return ........................................ 27.18% 6.30% (c)
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of year (000) ................ $137,996 $92,842
Ratio of expenses to average net assets ......... 1.02% 0.91% (b)
Ratio of net investment loss to average net
assets ........................................ (0.50%) (0.28%)(b)
Ratio of expenses to average net assets (a) ..... 1.03% 1.17% (b)
Ratio of net investment income to average net
assets (a) ..................................... (0.51%) (0.54%)(b)

KPMG Peat Marwick LLP

INDEPENDENT AUDITORS' REPORT

The Board of Trustees
Republic Funds
Republic Advisor Funds Trust:

We have audited the accompanying statements of assets and liabilities of
Republic New York Tax-Free Bond Fund and Republic Equity Fund, portfolios of
Republic Fund, including schedules of investments, and statements of assets
and liabilities of Republic Fixed Income Fund, Republic International Equity
Fund and Republic Small Cap Equity Fund, portfolios of Republic Advisor Funds
Trust, as of October 31, 1997 and the related statements of operations for the
year then ended and statements of changes in net assets and financial
highlights for each of the years or periods in the two-year period then ended.
These financial statements and financial highlights are the responsibility of
the Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits. The
financial highlights for Republic New York Tax-Free Bond Fund Class C Shares
(Investor Shares) for the period from May 1, 1995 (commencement of operations)
to October 31, 1995, Republic Equity Fund Class C Shares (Investor Shares) for
the period from August 1, 1995 (commencement of operations) to October 31,
1995 and Republic Fixed Income Fund and Republic International Equity Fund for
the period from January 9, 1995 (commencement of operations) to October 31,
1995 were audited by other auditors whose reports thereon, dated December 8,
1995, expressed unqualified opinions on those financial highlights.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned by Republic New York Tax-Free Bond Fund and
Republic Equity Fund as of October 31, 1997 by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Republic New York Tax-Free Bond Fund, Republic Equity Fund, Republic Fixed
Income Fund, Republic International Equity Fund and Republic Small Cap Equity
Fund as of October 31, 1997, the results of their operations for the year then
ended and changes in their net assets and financial highlights for the each of
the years or periods in the two-year period then ended in conformity with
generally accepted accounting principles.

KPMG Peat Marwick LLP

Boston, Massachusetts
December 12, 1997

<PAGE>

REPUBLIC FIXED INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1997
<TABLE>
<CAPTION>

PRINCIPAL VALUE
AMOUNT SECURITY DESCRIPTION (NOTE 2)
------ -------------------- --------
<S> <C> <C>
CORPORATE OBLIGATI0NS - 19.4%
BANKING - 3.9%
$ 63,000 Blue Bell Funding, 11.850%, due 05/01/99 ................ $ 64,890
650,000 BankAmerica Instit, 144A, 8.070%, due 12/31/26 (a) ...... 678,457
775,000 First Chicago NBD Instit, 144A, 7.950%, due 12/01/26 (a) 800,047
575,000 First Union Capital, 8.040%, due 12/01/26 ............... 599,573
510,000 Korea Development Bank, 7.350%, due 9/17/04 ............. 477,008
400,000 NationsBank Capital Trust, 8.250%, due 04/15/27 ......... 429,879
475,000 PNC Instit Capital Trust A, 144A, 7.950%, due 12/15/26
(a) ................................................... 485,854
300,000 State Street, 144A 7.940%, due 12/30/26 (a) ............. 313,662
175,000 State Street, 8.035%, due 03/15/27 ...................... 184,298
450,000 Wells Fargo Capital A, 144A, 8.125%, due 12/01/26(a) .... 473,657
150,000 Wells Fargo Capital B, , 7.950%, due 12/01/26 (a) ....... 154,848
------------
4,662,173
------------
BROADCASTING & PUBLISHING - 0.6%
745,000 Paramount Communications, 8.250%, due 08/01/22 .......... 743,868
------------
ENERGY - 2.1%
300,000 Edison Mission, 144A, 7.330%, due 09/15/08 (a) .......... 310,957
150,000 Excel Paralubes Funding, 144A, 7.430%, due 11/01/15 (a) . 154,397
190,000 Israel Electric, 144A, 7.250%, due 12/15/06 (a) ......... 192,822
170,615 Mobile Energy SV, 8.665%, due 01/01/17 .................. 181,476
345,000 National Power Corp., 7.875%, due 12/15/06 .............. 337,218
350,000 National Power Corp., 8.400%, due 12/15/16 .............. 295,600
350,000 Paiton Energy Funding BV, 144A, 9.340%, due 02/15/14 (a) 363,563
550,000 RAS Laffan Liquid Natural Gas, 144A, 8.294%,
due 03/15/14 (a) ...................................... 577,916
------------
2,413,949
------------
FINANCE - 8.7%
425,000 Anthem Insurance, 144A, 9.000%, due 04/01/27 (a) ........ 466,569
530,000 Arcadia Automobile Receivable Trust, 97 c A4, 6.375%,
due 01/15/03 .......................................... 534,145
575,000 BT Institutional Capital, 144A, 8.090%, due 12/01/26 (a) 598,087
525,000 Corestates Capital CFL, 144A, 8.000%, due 12/15/26 (a) .. 547,511
150,000 Dr Structured Financial, 1993-K1 A2, 7.43%0, due 08/15/18 130,657
250,000 Dr Structured Financial Trust, 1994-K1 A2, 8.375%,
due 08/15/15 .......................................... 240,992
500,000 Equitable Life, 144A, 6.950%, due 12/01/05 (a) .......... 509,382
475,000 Farmers Insurance Exchange, 144A, 8.625%, due 05/01/24(a) 538,512
625,000 Florida Windstorm, 144A, 6.700%, due 08/25/04 (a) ....... 625,256
250,000 Florida Property & Casuality, 144A, 7.375%,
due 07/01/03(a) ....................................... 260,292
350,000 Forum Finance Corp., 144A, 7.125%, due 05/15/04 (a) ..... 359,012
825 Home Ownership Funding Corp., 144A, 13.331% (a)(d) ...... 815,826
829,079 Honda Auto Receivable, 97 AA, 5.850%, due 02/15/03 ...... 828,706
525,000 John Hancock, 7.375%, due 02/15/24 ...................... 535,062
70,000 K-Mart Funding Corp., 8.800%, due 07/01/10 .............. 70,000
388,480 Long Beach Auto 97 2 A, 6.690% due 09/25/04 ............. 391,957
375,000 Metroplitan Life Insurance, 144A, 7.450%, due 11/01/23(a) 372,016
300,000 Nationwide Mutual Life, 144A, 7.500%, due 02/15/24 (a) .. 290,345
500,000 New York Life, 7.500%, due 12/15/23 ..................... 500,896
505,000 Petrozuata Finance, Inc., 144A, 8.220% due 04/01/17(a) .. 525,619
275,000 Washington Mutual Capital, 8.375%, due 06/01/27 ......... 294,137
396,585 World Financial, 144A, 6.910%, due 09/01/13 (a) ......... 404,021
500,000 World Financial, 144A, 6.950%, due 09/01/13 (a) ......... 510,940
------------
10,349,940
------------
INDUSTRIAL - 2.4%
425,000 AST Research, Inc., 144A, 7.450%, due 10/01/02 (a) ...... 405,297
120,000 HMH Properties, Inc., 8.875%, due 07/15/07 .............. 123,000
290,000 Hyundai Semi-Conductor, 144A, 8.625%, due 05/15/07 (a) .. 277,344
315,000 News America Holdings, 8.875%, due 04/26/23 ............. 356,969
70,000 News America Holdings, 7.750%, due 01/20/24 ............. 70,379
350,000 Oil Purchase Co., 144A, 7.100%, due 04/30/02 (a) ........ 349,801
150,000 Oxymar, 144A, 7.500%, due 02/15/16 (a) .................. 151,843
525,000 Petroliam Nasional, 144A, 7.125%, due 10/18/06 (a) ...... 501,622
420,000 Prime Property Funding, 144A, 7.000%, due 08/15/04 (a) .. 426,262
186,993 Scotia Pacific Holdings, 144A, 7.950%, due 07/20/15 (a) . 192,520
------------
2,855,037
------------
RETAIL - 0.3%
364,000 Southland Corp., 5.000%, due 12/15/03 ................... 303,940
------------
TELECOMMUNICATIONS - 1.2%
200,000 Rogers Cable Systems, 10.000%, due 03/15/05 ............. 215,000
125,000 Rogers Cantel, Inc., 144A, 8.300%, due 10/01/07 (a) ..... 124,062
375,000 Tele-Communications, Inc., 8.750%, due 02/15/23 ......... 397,941
280,000 Tele-Communications, Inc., 9.250%, due 01/15/23 ......... 308,364
520,000 Teleport Communications, 11.125%, due 07/01/07 .......... 410,150
------------
1,455,517
------------
TRANSPORTATION - 0.2%
175,000 Jet Equipment Trust, 144A, 10.000%, due 06/15/12 (a) .... 220,138
------------
TOTAL CORPORATE OBLIGATIONS
(COST $22,279,684) .................................... 23,004,562
------------
COLLATERALIZED MORTGAGE
OBLIGATIONS - 14.9%
274,942 Alliance Hel 96 2 A6 8.300%, due 09/25/27 ............... 292,203
503,502 Alcoa Aluminium 96-1, 144A, 7.500%, due 12/16/08 (a) .... 501,019
114,010 American Southwest Financial 1993-2 A1, 7.300%,
due 01/18/09 .......................................... 117,105
5,006,153 American Southwest Financial 1993-2 S1 IO, 1.056%,
due 01/18/09 .......................................... 252,060
150,000 American Southwest Financial 1995-C1 A1B, 7.400%,
due 11/17/04 .......................................... 156,568
250,000 Asset Securitization Corp., 1996-D3 A1C, 7.400%,
due 10/13/26 .......................................... 264,970
164,249 Asset Securitization Corp., 1995-D1 A1, 7.590%,
due 08/11/27 .......................................... 173,676
1,020,984 Asset Securitization Corp., 1995-MD4 A1, 7.100%,
due 08/13/29 .......................................... 1,059,690
1,127,517 Asset Securitization Corp., 1995-MD4 CS IO, 2.390%,
due 08/13/29 .......................................... 201,916
500,000 Asset Securitization Corp., 1996-MD6 A1B, 6.880%,
due 11/13/26 .......................................... 514,625
275,000 Asset Securitization Corp., 1996-MD6 A1C, 7.040%,
due 11/13/26 .......................................... 285,131
300,000 BSMSI 96 09 L NAS, 8.000%, due 12/25/27 ................. 316,221
175,000 CBM Funding Corp., 1996-1 A3, 7.080%, due 11/01/07 ...... 181,951
325,000 Chase Commercial Mortgage Securities Corp 1996-2 B,
6.900%, due 10/19/06 .................................. 332,020
350,000 CIT Group Home Equity Loan Trust 97-1 A3, 6.250%,
due 09/15/11 .......................................... 351,145
525,000 CS First Boston Mortgage Securities Corp. 97 C1, 7.240%,
due 04/20/07 .......................................... 548,525
142,852 Countrywide Mortgage Backed Securities, Inc., 1993-C,
6.500%, due 01/25/24 .................................. 138,899
275,000 Delta Funding Home Equity Loan Trust 96-1 A7, 7.950%,
due 06/25/27 .......................................... 293,023
500,000 Daimler-Benz AGT 1997-A Class A, 6.050%, due 03/20/05 500,025
2,738,008 DLJ Mortage Acceptance Corp. 1997 CF1 S IO, 1.096%,
due 03/15/17 .......................................... 182,351
425,000 DLJ Mortgage Acceptance Corp. 1997 CF1 A1B, 7.600%,
due 04/15/07 .......................................... 455,069
750,000 DLJ Mortgage Acceptance Corp. 1997 CF2 A1B, 6.820%,
due 09/15/07 .......................................... 763,575
218,787 Dr Securitized Lease Trust 94-K1 A1, 7.600%, due 08/15/07 214,357
525,000 Empire Funding Home Loan Owner Trust 97-4 A2, 7.160%,
due 05/25/12 .......................................... 532,492
143,140 First Boston Mortgage Securities Corp. 1993-5 B1, 7.300%,
due 07/25/23 .......................................... 143,641
315,000 First Plus Home Loan Trust 97-3 A2, 6.480%, due 09/10/08 316,682
310,000 First Plus Home Loan Trust 97-3 A3, 6.570%, due 10/10/10 311,938
2,297,918 GMAC 96 C1 X2 I0, 1.967%, due 03/15/21 .................. 210,512
525,000 GS Mortgage Securities Corp. 97-GL A2D, 6.940%,
due 07/13/30 .......................................... 540,109
1,297,997 GS Mortgage Securities Corp. 97-GL X2 IO, 1.070%,
due 07/13/30 .......................................... 69,806
400,000 Headlands Mortgage Securities, Inc. 97-5 AI5, 7.250%,
due 11/25/27 .......................................... 407,168
193,865 Independent National Mortgage Corp. 1994-O B1,
7.875%, due 09/25/24 .................................. 203,142
525,000 JP Morgan Commercial 1997 C5 A2, 7.069%, due 09/15/29 544,346
295,315 LB Commercial Conduit Mortgage Trust 96 C2 A Seq, 7.420%,
due 10/25/26 .......................................... 309,392
575,000 Lehman 97 LL1 A2, 6.840%, due 09/12/06 .................. 588,064
4,040,337 Merrill Lynch Mortgage Investors 1995 C1 IO, 2.188%
due 05/25/15 .......................................... 221,814
225,000 Merrill Lynch Mortgage Investors 1996 C1 A3, 7.420%,
due 04/25/28 .......................................... 236,691
525,000 Merrill Lynch Mortgage Investors 1996 C2 A2, 6.820%,
due 11/21/28 .......................................... 535,736
1,305,125 Merrill Lynch Mortgage Investors 1996 C2 IO, 1.532%
due 11/21/28 .......................................... 117,787
450,000 Merrill Lynch Mortgage Investors 1997 C1 A3, 7.120%,
due 06/18/29 .......................................... 467,064
225,000 Midland Realty Acceptance Corp. 1996 C2 A2, 7.233%,
due 01/25/27 .......................................... 234,617
150,000 Mortgage Capital Funding 1995 MC1 A1B, 7.600%,
due 05/25/27 .......................................... 157,584
600,000 Mortgage Capital Funding, Inc. 97-MC1 A3, 7.288%,
due 03/20/07 .......................................... 631,920
466,706 NAL Auto 97 A2, 7.750%, due 09/15/02 .................... 468,582
350,000 Rali 96 QS8 A13 NAS, 7.750%, due 12/25/26 ............... 364,133
625,000 Rali 97 QS3 A8 NAS, 7.250%, due 09/25/27 ................ 632,438
375,000 Rali 97 QS3 A8 NAS, 7.750%, due 04/25/27 ................ 393,101
100,000 Residental Funding 1993-MZ3 A2, 6.970%, due 08/28/23 .... 99,408
250,000 Salomon 97 tzh A2, 7.140%, due 03/24/22 ................. 258,918
570,000 WFS Financial Owner Trust 97C A3, 6.100%, due 03/20/02 569,835
------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (COST $17,413,152) ........................ 17,663,044
------------

ASSET-BACKED OBLIGATIONS - 1.5%
112,574 Aircraft Lease Portfolio Securitizations Class B, 6.780%,
due 03/15/19 .......................................... 112,696
425,000 Advanta Mortgage Loan Trust 1996 2A5, 8.080%,
due 11/25/25 .......................................... 445,230
200,000 Aircraft Lease Portfolio Securitization Ltd 1994-1 A4,
7.800%, due 9/15/04 ................................... 203,912
298,478 Aircraft Lease Portfolio Securitization Ltd 1994-1 C,
9.350%, due 9/15/04 ................................... 305,242
349,216 ICI Funding Corp 97-2 1A8, 8.000%, due 07/25/28 ......... 365,695
300,000 IMC Home Equity 96 3 A7, 8.050%, due 08/25/26 ........... 315,873
------------
TOTAL ASSET BACKED OBLIGATIONS
(COST $1,705,922) ..................................... 1,748,648
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 22.1%
FEDERAL HOME LOAN MORTGAGE CORPORATIONS - 4.1%
334,466 PL#A01521, 9.500%, due 12/01/16 ......................... 357,774
884,575 GP#D71780 D7, 7.000%, due 07/01/24 ...................... 891,943
634,980 GP#G00576, 7.000%, due 12/01/24 ......................... 640,282
822,616 PL#A01706, 10.000%, due 06/01/17 ........................ 911,278
493,595 PL#D18976 D1, 10.000%, due 03/01/20 ..................... 546,731
379,573 PL#D51505, 7.000%, due 04/01/24 ......................... 382,742
89,091 PL#555201, 11.000%, due 09/01/16 ........................ 98,891
313,412 PL#555283, 10.000%, due 09/01/17 ........................ 342,403
265,000 1632 SA Inverse Floater, due 11/15/23 (c) ............... 229,013
61,648 1709 H PO, due 01/15/24 ................................. 34,289
95,097 1750 C PD PO, due 03/15/24 .............................. 71,209
60,000 1813 K PO, due 02/15/24 ................................. 42,432
115,000 1844 PC PO, due 03/15/24 ................................ 75,670
65,000 1887 I PO, due 10/15/22 ................................. 45,201
70,756 GP#180881, 10.500%, due 10/01/11 ........................ 77,611
77,396 PL#308433, 10.500%, due 11/01/18 ........................ 84,894
------------
4,832,363
------------

FEDERAL NATIONAL MORTGAGE ASSOCIATION - 3.9%
113,704 93 205 G PO, due 09/25/23, 6.440% (e) ................... 77,035
990,750 92-89 SQ IO, 3.300%, due 06/25/22 ....................... 82,631
133,344 93 149 O PO, due 08/25/23 ............................... 89,421
135,378 93 146 GT PO, due 05/25/23 .............................. 94,291
45,828 93 235 H PO, due 09/25/23, 7.85% (e) .................... 37,024
30,899 93 243C PO, due 11/25/23, 5.74% (e) ..................... 24,880
991,687 96 5 NH PO, due 04/25/24 ................................ 613,854
430,000 96 11 V PO, due 09/25/23 ................................ 298,893
110,000 96 14 PC PO, due 12/25/23 ............................... 66,429
110,000 96 46 PB PO, due 09/25/23 ............................... 75,955
78,708 96 54 N PO, due 07/25/23 ................................ 61,132
89,012 96 54 O PO, due 11/25/23 ................................ 57,279
175,000 97 3 E PO, due 12/25/23 ................................. 121,608
1,000,000 97 30 SP INV I0, due 04/25/22 ........................... 153,261
205,396 97 7 E PO, due 03/18/27 ................................. 157,539
174,120 PC#044176 CL, 10.000%, due 06/01/20 ..................... 190,787
11,393 PC#075414 CL, 10.000%, due 05/01/19 ..................... 12,484
9,421 PC#082406 CL, 10.000%, due 09/01/19 ..................... 10,324
23,567 PC#082931 CL, 10.000%, due 10/01/19 ..................... 25,824
49,588 PC#083435 CL, 10.000%, due 11/01/19 ..................... 54,342
22,696 PC#083880 CL, 10.000%, due 11/01/19 ..................... 24,872
13,160 PC#084964 CL, 10.000%, due 11/01/19 ..................... 14,420
14,401 PC#087291 CL, 10.000%, due 01/01/20 ..................... 15,780
6,474 PC#088027 CL, 10.000%, due 01/01/20 ..................... 7,095
26,746 PC#088383 CL, 10.000%, due 11/01/18 ..................... 29,308
85,326 PC#124783, 10.500.%, due 12/01/16 ....................... 93,355
95,178 PC#303157, 10.000%, due 05/01/22 ........................ 104,054
1,203,193 Strip 249 PO, due 10/25/23, 6.720% (e) .................. 814,321
157,771 Strip 254 PO, due 01/01/24, 5.740% (e) .................. 116,498
212,908 Strip 260 PO, due 04/01/24, 5.860% (e) .................. 156,040
956,098 Strip 282 PO, due 09/01/25 .............................. 679,021
467,733 Strip 287 PO, due 12/17/07 .............................. 313,475
------------
4,673,232
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 14.1%
2,125,000 TBA, 6.000%, due 11/20/27 (b) ........................... 2,142,935
203,384 PL#780081, 10.000%, due 02/15/25 ........................ 225,779
369,066 PL#780164, 10.000%, due 12/15/17 ........................ 411,118
80,272 PL#038500, 11.000%, due 01/15/10 ........................ 89,203
56,911 PL#038712 SF, 11.000%, due 03/15/10 ..................... 63,243
58,209 PL#039798 SF, 11.000%, due 06/15/10 ..................... 64,685
83,337 PL#041650, 11.000%, due 08/15/10 ........................ 92,608
70,300 PL#041840, 11.000%, due 08/15/10 ........................ 78,120
89,559 PL#042490 SF, 11.000%, due 07/15/10 ..................... 99,522
62,958 PL#043699, 11.000%, due 09/15/10 ........................ 69,962
57,470 PL#044103, 11.000%, due 09/15/10 ........................ 63,864
27,819 PL#120587, 13.500%, due 11/15/14 ........................ 32,330
21,732 PL#150312, 11.500%, due 02/15/16 ........................ 24,516
38,307 PL#163997, 10.500%, due 08/15/16 ........................ 42,186
26,976 PL#164353, 10.500%, due 06/15/16 ........................ 29,707
145,744 PL#278742, 10.500%, due 09/15/19 ........................ 160,500
620,398 PL#780066 SP, 10.500%, due 12/15/20 ..................... 700,206
201,757 PL#780127 SP, 10.500%, due 04/15/25 ..................... 227,711
352,563 PL#780378, 11.000%, due 01/15/19 ........................ 404,009
375,103 PL#780384, 11.000%, due 12/15/17 ........................ 430,303
646,472 PL#780472, 10.000%, due 03/15/25 ........................ 717,655
145,365 PL#780517, 10.500%, due 01/15/18 ........................ 164,032
4,611,137 PL#780590, 7.000%, due 12/15/23 ......................... 4,656,326
960,552 PL#780614, 11.000%, due 03/15/18 ........................ 1,100,716
2,670,945 PL#80114 G2AR, 6.000%. due 09/20/27 ..................... 2,689,882
956,529 PL#8623 G2AR, 7.375%, due 04/20/25 ...................... 981,580
895,440 PL#8643 G2AR, 7.375%, due 06/20/25 ...................... 918,193
------------
16,680,891
------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS (COST $25,400,616) ........................ 26,186,486
------------
U.S. TREASURY OBLIGATIONS - 35.5%
4,250,000 U.S. Treasury Strip, 0%, due 02/15/19, 6.960% (e)(g) .... 1,121,231
3,700,000 U.S. Treasury Bond, 8.750%, due 08/15/20 ................ 4,825,029
8,375,000 U.S. Treasury Note, 6.250%, due 05/31/99 ................ 8,450,894
3,910,000 U.S. Treasury Note, 6.750%, due 06/30/99 ................ 3,978,425
3,500,000 U.S. Treasury Note, 6.875%, due 07/31/99 ................ 3,570,000
15,075,000 U.S. Treasury Note, 7.125%, due 09/30/99 ................ 15,480,141
1,125,000 U.S. Treasury Note, Inflation Index, 3.625%, due 07/15/02 1,143,858
3,475,000 U.S. Treasury Note, Inflation Index, 3.375%, due 01/15/07 3,478,698
------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $41,429,701) .................................... 42,048,276
------------
YANKEE BONDS - 1.8%
375,000 Mexico Par Bond Series A, 6.250%, due 12/31/19 .......... 294,375
1,525,000 Deutschland Republic, 7.375%, due 01/03/05 .............. 987,009
700,000 Republic of Argentina, 5.250%, due 03/31/23 ............. 477,750
385,000 Republic of Colombia, 8.750%, due 02/15/16 .............. 374,643
------------
TOTAL YANKEE BONDS (COST $2,055,553) .................... 2,133,777
------------
RIGHTS - 0.0%
650,000 United Mexican States Warrants 0% due 06/30/03 .......... 0
------------
TOTAL RIGHTS (COST $0) .................................. 0
------------
COMMERCIAL PAPER - 5.6%
2,000,000 Barclays US Funding Corp. ............................... 1,998,169
4,621,454 Investors Cash Reserve .................................. 4,621,454
------------
TOTAL COMMERCIAL PAPER
(COST $6,612,294) ..................................... 6,619,623
------------

TOTAL INVESTMENTS - 100.8%
(Identified Cost $116,896,922) (f) ................................. 119,404,416
OTHER LIABILITIES IN EXCESS OF OTHER ASSETS - (0.8%) ................. (999,468)
------------
NET ASSETS - 100.0% .................................................. $118,404,948
============
PO - Principal only
IO - Interest only
PL# - Pool Number
PC# - Pool Number
CL - Conventional Loan
TBA - Pool Number to be announced

(a) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(b) Security purchased on a delayed delivery basis.
(c) Represents a variable rate note. Interest rate disclosed represents
current rate at October 31, 1997.
(d) Preferred Stock (principal amount relates to shares held).
(e) Effective yield (calculated at the date of purchase) is the yield at which
the bond accretes on an annual basis until maturity date.
(f) For Federal income tax purposes, the cost of securities owned at October
31, 1997 was $117,121,665 resulting in net unrealized appreciation of
securities as follows:
Gross unrealized appreciation .................................. $2,623,491
Gross unrealized depreciation .................................. (340,740)
----------
Net unrealized appreciation ...................................... $2,282,751
==========
(g) A portion of the security has been pledged as collateral for open futures.
<PAGE>

REPUBLIC FIXED INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS -- OCTOBER 31, 1997
SCHEDULE OF OPEN FORWARD FOREIGN CURRENCY CONTRACTS

<CAPTION>
PRINCIPAL NET
VALUE UNREALIZED
EXPIRATION LOCAL VALUE APPRECIATION/
DATE CONTRACT TO DELIVER CURRENCY COST US$ (NOTE 2) (DEPRECIATION)
---- ------------------- -------- -------- -------- --------------
<S> <C> <C> <C> <C> <C>

CONTRACTS TO SELL:
12/02/97 Deutsche Mark 1,770,000 $990,764 $1,028,419 $37,655)
-------

SCHEDULE OF OPEN FINANCIAL FUTURES CONTRACTS
NET
APPRECIATION
EXPIRATION NUMBER OF CONTRACT (DEPRECIATION)
DATE CONTRACTS CONTRACTS VALUE OF CONTRACTS
---- --------- --------- ----- ------------
<S> <C> <C> <C> <C>

PURCHASED
01/02/98 8 US 2YR Note Futures
December 97 $1,663,000 $ 8,200

SOLD
12/19/97 4 US 10YR Note Futures
December 97 447,000 (6,900)
--------
NET UNREALIZED APPRECIATION ON OPEN FUTURES CONTRACTS $ 1,300
========
</TABLE>
<PAGE>

REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1997
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- -------------------- ------ --------

COMMON STOCKS - 93.1%
ARGENTINA - 0.9%
Perez Companc ADR ................................ 65,796 $ 821,621
Telecom Argentina ADR ............................ 34,500 873,281
YPF Sociedad Anonima ADR ......................... 6,000 192,000
------------

1,886,902
------------
AUSTRALIA - 4.0%
Coca-Cola Amatil Ltd. ............................ 193,955 1,459,468
Brambles Industries Ltd. ......................... 79,000 1,518,922
Lend Lease Corp., Ltd. ........................... 60,861 1,246,351
News Corp., Ltd. ADS ............................. 40,000 762,500
Western Mining Corp. Holding Ltd. (b) ............ 347,400 1,233,761
Westpac Banking Corp. ............................ 340,000 1,979,789
------------
8,200,791
------------
BRAZIL - 0.8%
Centrais Electro Brasil ADR ...................... 30,000 653,088
Telecommunicacos Brasileiras ADR ................. 10,500 1,065,750
------------
1,718,838
------------
CANADA - 6.5%
Alcan Aluminum Ltd. .............................. 35,100 1,002,544
Imasco Ltd. ...................................... 52,000 1,652,961
Inco Ltd. ........................................ 35,430 730,744
Inco Ltd., Class VBN ............................. 7,250 126,033
National Bank of Canada .......................... 52,100 741,196
Newcourt Credit Ltd. ............................. 6,700 231,756
Northern Telecom Ltd. ............................ 20,000 1,793,750
Rogers Communications, Class B (b) ............... 53,000 361,018
Royal Bank of Canada ............................. 48,500 2,593,022
Seagrams Co., Ltd. ............................... 20,300 682,588
Suncor Ltd. ...................................... 46,000 1,664,625
Thomson Corp. .................................... 80,000 1,918,615
------------
13,498,852
------------
CHINA - 0.3%
China Telecom ADR (b) ............................ 16,000 518,000
------------
DENMARK - 0.3%
Tele Danmark A/S ADR ............................. 21,300 617,700
------------
FINLAND - 0.9%
Nokia AB-A ....................................... 22,000 1,919,988
------------
FRANCE - 5.0%
Bouygues ......................................... 9,344 874,747
France Telecom SA ADR (b) ........................ 12,300 465,863
Pechiney Ord, Class A ............................ 15,985 657,330
Peugeot SA ....................................... 18,000 2,037,706
Renault SA (b) ................................... 29,300 815,265
Sidel ............................................ 16,000 898,713
Synthelabo ....................................... 11,600 1,365,475
Societe National Elf-Aquitaine ................... 6,915 855,946
Television Francaise ............................. 10,000 930,958
Valeo ............................................ 20,400 1,360,530
------------
10,262,533
------------
GERMANY - 4.2%
Mannesmann AG .................................... 10,550 4,454,213
Munchener Ruck INH ............................... 1,250 257,351
Munchener Ruck Nam 50% paid ...................... 1,900 553,152
Siemens AG ....................................... 10,000 615,322
Thyssen AG ....................................... 4,300 948,878
Volkswagen AG .................................... 3,000 1,772,893
------------
8,601,809
------------
HONG KONG - 2.8%
Citic Pacific Ltd. ............................... 230,000 1,100,692
Hong Kong Electric Holdings (b) .................. 254,000 860,739
Hong Kong Telecom ................................ 980,000 1,875,962
Hysan Development ................................ 580,000 1,211,537
Swire Pacific, Class A ........................... 153,000 817,293
------------
5,866,223
------------
INDONESIA - 0.1%
Pt Indonesia Satellite ADR ....................... 12,000 284,250
------------
IRELAND - 0.5%
Allied Irish Banks Plc ........................... 130,600 1,099,461
------------
ITALY - 3.4%
Alleanza Assicuraz Di Risp It 2000 ............... 79,530 390,817
Alleanza Assicurazioni SpA Azione Nom ............ 82,300 711,371
ENI SpA .......................................... 142,400 804,621
SEAT SpA N/V RISP (b) ............................ 250,000 65,589
SEAT SpA Ord (b) ................................. 2,000,000 804,370
Telecom Italia Mobile-DrNc ITL100 ................ 988,000 2,018,589
Telecom Italia SpA ITL 1000 ...................... 163,611 1,023,113
Telecom Italia SpA RNC ........................... 310,000 1,248,054
------------
7,066,524
------------
JAPAN - 21.9%
Adventest Corp. .................................. 31,970 2,643,137
Asahi Breweries Ltd. ............................. 234,000 3,460,906
Banyu Pharmaceutical Co. ......................... 47,000 683,423
Bridgestone Corp. ................................ 52,000 1,123,390
Chudenko Corp. ................................... 7,865 191,479
Dai-Ni-Denden .................................... 160,000 1,297,549
DDI Corp. ........................................ 348 1,162,410
Fuji Photo Film .................................. 25,000 905,692
Higashi Nihon House .............................. 33,000 246,780
Honda Motor Co., Ltd. ............................ 40,000 1,346,074
Honda Motor Co., Ltd. ADR ........................ 6,000 401,250
Japan Airlines (b) ............................... 280,000 1,014,375
Jusco Co. ........................................ 57,000 1,274,034
Kawasaki Heavy Industries ........................ 9,000 20,939
Kawasaki Kisen ................................... 122,000 175,372
Kokusai Electric ................................. 85,000 1,278,355
Kyocera Corp. .................................... 24,100 1,379,718
Kyocera Corp. ADR ................................ 3,000 349,875
Minebea Co., Ltd. ................................ 118,000 1,176,568
Mitsubishi Chemical Corp. ........................ 73,500 165,505
Murata Manufacturing Co., Ltd. ................... 43,000 1,729,290
NEC Corp. ........................................ 126,000 1,381,969
Nichiei Co., Ltd. ................................ 16,400 1,812,381
Nikon Corp. ...................................... 213,000 2,371,583
Nintendo Corp. ................................... 300 25,924
NKK Corp. ........................................ 145,000 201,205
Nippon Telegraph & Telephone Corp. ............... 720 610,220
Nomura Securities Co., Ltd. ...................... 89,000 1,035,314
Sakura Bank Ltd. ................................. 100,000 407,977
Sankyo Co., Ltd. ................................. 60,500 1,995,721
Sekisui House Ltd. ............................... 165,000 1,412,131
Shiseido Co. ..................................... 88,000 1,199,169
Soft Bank Corp. .................................. 20,286 652,321
Sony Corp. ....................................... 20,200 1,676,759
Sumitomo Bank .................................... 150,000 1,595,347
Sumitomo Realty & Development .................... 158,000 1,153,984
Suzuki Motor Corp. ............................... 101,000 1,074,200
Tokyo Electron Ltd. .............................. 66,400 3,310,345
Wako Securities .................................. 158,000 413,544
Yasuda F&M Insurance ............................. 194,000 1,075,181
------------
45,431,396
------------
KOREA - 0.3%
Samsung Electronics GDR (b) ...................... 26,850 558,480
------------
MALAYSIA - 0.8%
Edaran Otomobil Berhad ........................... 100,000 314,984
Malaysian Airline System BHD ..................... 412,000 543,813
New Straits Times Press Berhad ................... 127,000 278,116
Sime Darby Berhad ................................ 361,000 519,814
------------
1,656,727
------------
MEXICO - 2.5%
Cemex de CV SA ADR (b) ........................... 130,000 1,130,155
Grupo Financiero Banamex Accival Series "B" NPV .. 55,337 101,105
Grupo Financiero Banamex Series "L" Shares ....... 261,800 515,170
Panamerican Beverages, Inc., Class A ............. 55,000 1,705,000
Telefonos De Mexico ADR .......................... 37,900 1,639,175
------------
5,090,605
------------
NETHERLANDS - 3.3%
Aegon NV ......................................... 16,500 1,300,283
ASM Lithography Holding NV ....................... 34,000 2,469,225
KON AHOLD NV ..................................... 69,000 1,766,315
Philips Electronics NV ........................... 9,100 712,439
Philips Electronics NV ADR ....................... 8,000 627,000
------------
6,875,262
------------
NEW ZEALAND - 0.3%
Telecom New Zealand .............................. 149,000 721,788
------------
NORWAY - 1.7%
Norsk Hydro ASA .................................. 35,000 1,921,349
Orkla AS A-AKSJER (b) ............................ 17,000 1,558,610
------------
3,479,959
------------
PORTUGAL - 1.2%
Portugal Telecom S.A. ADR ........................ 58,100 2,396,625
------------
SINGAPORE - 0.7%
City Developments ................................ 35,000 146,667
Singapore Press Holdings Ltd. .................... 87,400 1,204,178
------------
1,350,845
------------
SOUTH AFRICA - 0.9%
De Beers Consolidated Mines Ltd. ................. 79,000 1,896,000
------------
SPAIN - 2.1%
Banco Santander .................................. 46,200 1,294,184
Corporacion Mapfre ESB 500 ....................... 9,338 426,876
Telefonica De Espana ............................. 95,900 2,617,193
------------
4,338,253
------------
SWEDEN - 6.3%
ABB Ab-A ......................................... 127,000 1,481,430
Astra AB A Shares ADR ............................ 32,000 510,000
Astra AB A-F ..................................... 227,733 3,673,505
Atlas Copco AB-Series "B" Free ................... 10,600 314,416
Ericsson AB B Free ............................... 53,660 2,360,662
Ericsson LM Telephone ADR ........................ 7,000 309,750
Hennes & Mauritz AB A-F .......................... 42,500 1,736,556
Incentive AB-B ................................... 12,000 1,055,831
Sparbanken Sverige Class A ....................... 69,900 1,584,146
------------
13,026,296
------------
SWITZERLAND - 5.6%
Asea Brown Boverei AG A Inhaber .................. 450 586,272
Baloise Holdings ................................. 686 1,234,095
Credit Suisse Holdings Group, Registered ......... 12,005 1,690,453
Holderbank Finan Glaris Bearer ................... 1,630 1,311,401
Nestle ........................................... 1,589 2,238,076
Novartis AG Registered ........................... 2,394 3,747,888
Sairgroup (b) .................................... 700 937,964
------------
11,746,149
------------

TAIWAN - 0.9%
ACER Inc GDR (b) ................................. 67,975 446,936
Taiwan Semiconductor ADR (b) ..................... 76,800 1,521,600
------------
1,968,536
------------
UNITED KINGDOM - 14.9%
Bank of Scotland ................................. 353,700 2,918,322
BICC Plc ......................................... 120,090 331,288
BOC Group ........................................ 126,800 2,132,815
B.A.T. Industries Plc ............................ 95,577 835,874
British Petroleum Plc ............................ 46,000 666,507
British Petroleum Plc ADR ........................ 9,400 824,850
Caradon Plc ...................................... 400,000 1,274,520
Commercial Union Plc ............................. 2,683 37,795
Electrocomponents Plc ............................ 95,000 737,628
English China Clays Plc .......................... 189,000 824,078
Laporte Plc ...................................... 80,000 887,468
Lloyds TSB Group Plc ............................. 65,000 812,087
Morgan Crucible Company Plc ...................... 151,800 1,238,476
National Westminister Bank Plc ................... 167,576 2,408,384
Reckitt and Colman Plc ........................... 129,390 1,984,346
Reed International Ltd. .......................... 111,300 1,100,302
Reuters Holdings Plc ............................. 190,000 2,061,536
Shell Transport & Trading Plc .................... 99,000 701,862
Storehouse Plc ................................... 420,000 1,549,548
Tate & Lyle Plc .................................. 240,000 1,829,272
T.I. Group Plc ................................... 121,700 1,117,398
United Utilities Plc ............................. 130,000 1,588,203
Zeneca Group Plc ................................. 600 57,375
Zeneca Group Plc ADR ............................. 91,100 2,873,688
------------
30,793,622
------------
TOTAL COMMON STOCK (COST $172,471,318) ........... 192,872,414
------------
RIGHTS - 0.0%
MALAYSIA - 0.0%
Renong Berhad Warrants Issue 5/22/96 Exp 11/21/00 32,000 5,760
------------
TOTAL RIGHTS (COST $8,633) ....................... 5,760
------------

PREFERRED STOCK - 1.0%
AUSTRALIA - 0.4%
News Corporation Ltd. ............................ 170,000 $ 754,376
CANADA - 0.1%
INCO Ltd.. Series E 5.5% Convertible ............. 2,639 129,971
GERMANY - 0.1%
Volkswagen AG DEM 50 ............................. 600 272,110
JAPAN - 0.4%
Sakura Finance (Bermuda Trust) Conv Pref Ser II .. 120,000,000 917,324
------------
TOTAL PREFERRED STOCK (COST $1,937,371) .......... 2,073,781
------------

<PAGE>

PRINCIPAL
AMOUNT
LONG TERM CORPORATE DEBT - 0.2%
JAPAN
Asahi Breweries 1.00 DTD 7/1/94 Due 12/26/03 .. JPY 14,000,000 176,701
Fujitsu Ltd.. Convertible Ser 91.95%
DTD 12/22/94 Due 3/31/03 .................... JPY 2,000,000 23,099
Sumitomo Bank Intl Fin NV 0.75 DTD 6/26/96
Due 5/31/01 ................................. JPY 35,000,000 290,586
------------
TOTAL LONG TERM CORPORATE DEBT
(COST $479,555) ............................. 490,386
------------

SHARES
SHORT TERM INVESTMENTS - 5.4%
Investors Cash Reserve Fund ................... 11,163,329 11,163,329
------------
TOTAL INVESTMENTS - 99.7%
Identified Cost ($186,060,206)(a) ........... 206,605,670

OTHER ASSETS IN EXCESS OF LIABILITIES - 0.3% 523,405
------------
TOTAL NET ASSETS - 100.0% ..................... $207,129,075
============
- -------------------------------------------------------------------------------
ADR = American depository receipt GDR = Global depositary receipt
ADS = American depository share JPY = Japanese Yen

(a) For Federal income tax purposes, the cost of securities owned at October
31, 1997 was $186,935,416 resulting in net unrealized appreciation of
securities as follows:
Gross unrealized appreciation ............................. $37,646,793
Gross unrealized depreciation ............................. (17,976,539)
-----------
Net unrealized appreciation ................................... $19,670,254
===========

(b) Represents non-income producing security.
<PAGE>

REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1997
SCHEDULE OF OPEN FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>

PRINCIPAL NET
VALUE UNREALIZED
EXPIRATION CONTRACT TO LOCAL VALUE APPRECIATION/
DATE DELIVER CURRENCY COST U.S.$ (NOTE 2) (DEPRECIATION)
---- ------- -------- ---------- -------- --------------
<S> <C> <C> <C> <C> <C>
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS TO BUY:
11/28/97 German Deutsche
Mark 1,162,663 $ 653,306 $ 675,381 $ 22,075
11/04/97 British Pound 139,985 233,160 234,715 1,555
05/13/98 British Pound 54,300 90,670 90,317 (353)
05/13/98 British Pound 27,100 44,951 45,076 125
11/04/97 Japanese Yen 3,975,947 32,952 33,076 124
11/04/97 Swedish Krona 293,546 39,113 39,148 35
------------ ------------ --------
$ 1,094,152 $ 1,117,713 $ 23,561
------------ ------------ --------

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS TO SELL:

01/23/98 Australian Dollar 654,944 $ 460,000 $ 461,631 $ (1,631)
11/12/97 Swiss Franc 487,798 322,000 350,203 (28,203)
01/06/98 Swiss Franc 511,733 355,000 366,784 (11,784)
01/22/98 German Deutsche
Mark 447,954 254,000 261,032 (7,032)
11/05/97 Italian Lira 676,256,413 397,447 399,208 (1,761)
11/06/97 Italian Lira 75,375,304 44,663 44,493 170
01/06/98 French Franc 2,576,723 435,000 448,541 (13,541)
11/28/97 British Pound 405,139 653,306 678,597 (25,291)
01/30/98 British Pound 679,655 1,132,000 1,135,384 (3,384)
05/13/98 British Pound 162,809 262,000 270,801 (8,801)
11/04/97 British Pound 135,127 225,067 226,568 (1,501)
11/05/97 British Pound 73,838 123,067 123,799 (732)
11/14/97 Hong Kong Dollar 2,837,328 365,000 365,879 (879)
04/23/98 Japanese Yen 240,558,198 2,161,000 2,077,850 83,150
11/04/97 Japanese Yen 13,575,951 112,515 112,938 (423)
11/04/97 Japanese Yen 27,199,484 225,020 226,272 (1,252)
11/05/97 Japanese Yen 3,847,769 31,942 32,019 (77)
11/05/97 Japanese Yen 3,328,942 27,665 27,701 (36)
04/30/98 Japanese Yen 494,515,595 4,361,000 4,275,860 85,140
04/30/98 Japanese Yen 79,216,020 698,000 684,946 13,054
04/30/98 Japanese Yen 443,659,728 3,914,000 3,836,132 77,868
04/30/98 Japanese Yen 96,272,355 849,000 832,425 16,575
11/07/97 Japanese Yen 136,458,720 1,158,000 1,136,211 21,789
01/23/98 Norwegian Krone 2,744,097 382,000 393,108 (11,108)
01/23/98 Swedish Krona 2,593,822 337,000 347,732 (10,732)
------------ ------------ --------
$19,285,692 $19,116,114 $169,578
------------ ------------ --------
NET UNREALISED APPRECIATION ON OPEN FORWARD
FOREIGN CURRENCY CONTRACTS ............................................................... $193,139
========
</TABLE>
<PAGE>

REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1997
INDUSTRY DIVERSIFICATION (UNAUDITED)

PERCENT OF
PORTFOLIO
---------

Energy ........................................................... 4.1%
Electric & Gas ................................................... 0.7%
Building Materials & Components .................................. 1.2%
Chemicals ........................................................ 1.5%
Metals: Nonferous ................................................ 1.9%
Metals: Steel .................................................... 0.6%
Miscellaneous Materials & Commodities ............................ 1.9%
Construction & Housing ........................................... 1.3%
Data Processing & Reproduction ................................... 0.2%
Electrical & Electronics ......................................... 5.6%
Electronic Components ............................................ 4.6%
Electronic Instruments ........................................... 4.0%
Industrial Components ............................................ 2.5%
Machinery & Engineering .......................................... 0.6%
Appliances & Household Durables .................................. 1.7%
Automobiles ...................................................... 3.9%
Beverages & Tobacco .............................................. 3.6%
Food & Household Products ........................................ 2.9%
Health & Personal Care ........................................... 7.8%
Recreation, Other Consumer Products .............................. 0.4%
Broadcasting & Publishing ........................................ 4.2%
Business & Public Services ....................................... 2.5%
Merchandising .................................................... 3.0%
Telecommunications ............................................... 11.3%
Transportation: Airlines ......................................... 1.2%
Transportation: Shipping ......................................... 0.1%
Finance (Banking) ................................................ 10.1%
Financial Services ............................................... 1.7%
Insurance ........................................................ 2.9%
Real Estate ...................................................... 1.2%
Multi - Industry ................................................. 4.8%
-----

94.0%
Cash & Equivalent Investments .................................... 6.0%
-----

100.0%
=====
<PAGE>

REPUBLIC SMALL CAP EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1997

VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- -------------------- ------ --------
COMMON STOCKS - 95.0%
AIRLINES - 0.6%
Atlas Air, Inc. (a) ............................. 48,500 $ 1,345,875
------------

BANKS & CREDIT COMPANIES - 0.3%
TCF Financial Corp. ............................. 11,800 671,125
------------

BROADCASTING - 4.8%
American Radio Systems Corp. (a) ................ 58,285 2,841,394
Clear Channel Communications (a) ................ 24,600 1,623,600
Emmis Broadcasting Corp.-Class A (a) ............ 9,300 411,525
Heftel Broadcasting Corp.(a) .................... 9,100 605,150
Jacor Communications, Inc. (a) .................. 35,725 1,495,984
Lin Television Corp.(a) ......................... 56,355 2,962,160
------------
9,939,813
------------
BUILDING - 1.0%
Newport News Shipbuilding ....................... 102,900 2,212,350
------------
BUSINESS SERVICES - 14.9%
Accustaff, Inc. (a) ............................. 95,164 2,718,122
Advantage Learning System, Inc. (a) ............. 200 5,050
BDM International, Inc. (a) ..................... 97,860 2,165,153
Carey International, Inc. (a) ................... 1,700 25,500
Claremont Technology Group (a) .................. 37,900 838,538
Danka Business Systems Plc-ADR .................. 42,095 1,557,515
Dendrite International, Inc. (a) ................ 45,862 888,576
DST Systems, Inc. (a) ........................... 74,130 2,617,716
Equity Corporation International (a) ............ 59,385 1,209,969
Fine Host Corp. (a) ............................. 34,800 974,400
Fiserv, Inc. (a) ................................ 51,150 2,288,963
Franklin Covey Co. (a) .......................... 20,400 457,725
Global Directmail Corp. (a) ..................... 76,150 1,399,256
HPR, Inc. (a) ................................... 8,900 213,600
Interim Services, Inc. (a) ...................... 121,624 3,185,029
International Network Services (a) .............. 18,800 413,600
May & Speh, Inc. (a) ............................ 92,500 1,167,813
META Group, Inc. (a) ............................ 38,180 825,643
National Processing, Inc. (a) ................... 67,600 688,675
National Research Corp. (a) ..................... 200 4,050
PMT Services (a) ................................ 92,400 1,489,950
Snyder Communications, Inc. (a) ................. 16,527 487,547
SPS Transaction Services Corp. (a) .............. 51,190 1,084,588
Superior Consultant Holdings (a) ................ 15,900 492,900
Technology Solutions Co. (a) .................... 58,450 1,841,175
TeleSpectrum Worldwide, Inc. (a) ................ 58,600 274,688
TeleTech Holdings, Inc. (a) ..................... 38,000 465,500
Transaction Systems Architects, Inc.-Class A (a) 36,535 1,429,432
Walsh International (a) ......................... 45,880 464,535
------------
31,675,208
------------
COMPUTER & OFFICE EQUIPMENT - 3.6%
Affiliated Computer Services (a) ................ 181,290 4,554,911
Ceridian Corp. (a) .............................. 11,300 441,406
Corporate Express, Inc. (a) ..................... 69,000 1,013,438
Viking Products, Inc. (a) ....................... 73,500 1,759,406
------------
7,769,161
------------
COMPUTER SOFTWARE & SERVICES - 16.5%
Adobe Systems, Inc. ............................. 18,615 888,866
American Business Information, Inc.-Class A (a) . 1,200 12,600
American Business Information, Inc.-Class B (a) . 108,390 1,409,070
Apex PC Solutions (a) ........................... 15,000 386,250
Aspen Technologies, Inc. (a) .................... 42,000 1,580,250
Black Box Corp. (a) ............................. 22,700 930,700
BMC Software, Inc. .............................. 21,700 698,469
Cadence Design Systems, Inc. (a) ................ 114,033 6,072,257
Catalyst International, Inc. (a) ................ 23,250 122,063
Clarify, Inc. (a) ............................... 56,900 739,700
Compuware Corp. (a) ............................. 42,000 2,777,250
Dassault Systemes S.A.-ADR (a) .................. 5500 165,000
Fair, Isaac & Co, Inc. .......................... 25,900 1,125,031
Harbinger Corp. (a) ............................. 17,400 517,650
HNC Software (a) ................................ 6,600 244,200
IKOS Systems, Inc. (a) .......................... 48,600 431,325
Infinity Financial Technology, Inc. (a) ......... 9,300 142,988
Intelligroup, Inc. (a) .......................... 11,700 216,450
JDA Software Group, Inc. (a) .................... 11,800 368,750
Mecon, Inc. (a) ................................. 35,800 259,550
Metromail Corp. (a) ............................. 27,900 552,769
MicroProse, Inc. (a) ............................ 59,995 389,968
Peerless Systems Corp. (a) ...................... 42,700 555,100
RWD Technologies, Inc. (a) ...................... 5,600 126,000
SCB Computer Technology, Inc. (a) ............... 12,270 223,928
Scopus Technogy, Inc. (a) ....................... 15,900 235,519
Security Dynamics Technologies, Inc. (a) ........ 32,400 1,097,550
Siebel Systems, Inc. (a) ........................ 62 2,505
Simulation Sciences, Inc. (a) ................... 57,700 1,053,025
Sterling Software, Inc. (a) ..................... 72,500 2,474,063
Summit Design, Inc. (a) ......................... 68,600 994,700
SunGard Data Systems, Inc. (a) .................. 69,000 1,630,125
Synopsys, Inc. (a) .............................. 87,228 3,390,989
USCS International, Inc. (a) .................... 67,500 1,307,813
Vantive Corp. (a) ............................... 30,300 765,075
Viewlogic Systems, Inc. (a) ..................... 14,400 349,200
Xionics Document Tech, Inc. (a) ................. 70,300 1,072,075
------------
35,308,823
------------
CONSTRUCTION SERVICES - 0.1%
Barnett, Inc. (a) ............................... 7,335 151,284
------------
CONSUMER GOODS & SERVICES - 2.0%
Alternative Resources Corp. (a) ................. 82,170 2,033,708
Blyth Industries, Inc. (a) ...................... 51,975 1,292,878
US Rentals, Inc. (a) ............................ 34,300 836,063
------------
4,162,649
------------
CONTAINERS - 0.8%
Aptargroup, Inc. (a) ............................ 12,100 664,744
Stone Container Corp. ........................... 80,500 971,031
------------
1,635,775
------------
ELECTRONICS - 3.1%
Actel Corp. (a) ................................. 47,900 715,507
Belden, Inc. .................................... 29,145 998,216
International Rectifier Corp. (a) ............... 72,100 986,869
Microchip Technology, Inc. (a) .................. 27,282 1,087,870
PMC-Sierra, Inc. (a) ............................ 79,800 2,104,725
QLogic Corp. (a) ................................ 12,300 399,750
TriQuint Semiconductor, Inc. (a) ................ 17,700 433,650
------------
6,726,587
------------
ELECTRICAL EQUIPMENT - 3.4%
AFC Cable Systems, Inc. (a) ..................... 28,100 797,338
Analog Devices (a) .............................. 85,640 2,617,373
Burr - Brown Corp. (a) .......................... 44,262 1,338,926
Dupont Photomasks, Inc. (a) ..................... 18,115 778,945
Phototronics, Inc. (a) .......................... 26,500 1,136,188
Ultratech Stepper, Inc. (a) ..................... 18,900 515,025
------------
7,183,795
------------
FINANCIAL SERVICES - 2.2%
Advanta Corp.-Class B ........................... 14,040 430,853
BA Merchant Services, Inc.-Class A (a) .......... 29,400 439,163
Franklin Resources, Inc. ........................ 29,930 2,689,959
NOVA Corporation (a) ............................ 17,100 459,563
Paymentech, Inc. (a) ............................ 36,500 643,313
------------
4,662,851
------------
FOOD & BEVERAGE PRODUCTS - 1.4%
Beringer Wine Estates Holdings, Inc.-Class B (a) 900 27,900
Buffetts, Inc. (a) .............................. 81,494 855,687
Robert Mondavi Corp.-Class A (a) ................ 12,000 609,750
Suiza Foods Corp. (a) ........................... 16,000 806,000
Tootsie Roll Industries, Inc. ................... 12,900 732,075
------------
3,031,412
------------
INSURANCE - 2.5%
Equitable of Iowa Cos. .......................... 50,500 3,434,000
Executive Risk, Inc. ............................ 14400 948,600
Hartford Life, Inc.-Class A ..................... 10,400 384,150
PAULA Financial ................................. 400 10,100
Penncorp Financial Group, Inc. .................. 8,300 270,269
Reliastar Financial Corp. ....................... 16,300 609,213
------------
5,656,332
------------
MACHINERY - 1.5%
Greenfield Industries, Inc. ..................... 59,300 2,245,988
Manitowoc Co, Inc. .............................. 27,100 821,469
Special Devices, Inc. (a) ....................... 4,200 97,125
------------
3,164,582
------------

MEDICAL & HEALTH PRODUCTS - 2.8%
IDEXX Laboratories, Inc. (a) .................... 178,000 $ 2,825,750
KOS Pharmaceuticals, Inc. (a) ................... 23,000 822,250
Megabios Corp. (a) .............................. 16,600 249,000
NCS HealthCare, Inc.-Class A (a) ................ 42,100 984,088
Quigley Corp. (a) ............................... 6,600 119,625
Transition Systems, Inc. (a) .................... 17,600 356,400
Tyco International Ltd. ......................... 14,438 545,035
Warner Chilcott Laboratories Sp-ADR (a) ......... 3,300 46,613
------------
5,948,761
------------
MEDICAL HEALTH TECHNOLOGY & SERVICES - 11.0%
Advanced Health Corp. (a) ....................... 35,000 616,875
AmeriPath, Inc. (a) ............................. 900 14,850
AmeriSource Health Corp.-Class A (a) ............ 49,800 2,956,875
Apache Medical Systems, Inc. (a) ................ 12,800 36,000
Compdent Corp. (a) .............................. 51,995 1,075,647
Concentra Managed Care, Inc. (a) ................ 45,584 1,487,171
Genesis Health Ventures, Inc. (a) ............... 19,215 470,768
HCIA, Inc. (a) .................................. 64,900 803,138
Healthsouth Corp. (a) ........................... 85,687 2,190,384
Hologic, Inc. (a) ............................... 72,300 1,852,688
IDX Systems Corp. (a) ........................... 35,800 1,208,250
Mariner Health Group, Inc. (a) .................. 22,800 334,875
Orthodonic Centers of America (a) ............... 22,300 386,069
Oxford Health Plans, Inc. (a) ................... 23,000 593,688
Pediatric Services of America (a) ............... 42,460 912,890
Physician Sales & Service (a) ................... 50,900 1,247,050
Physician Support Systems, Inc. (a) ............. 900 13,838
Quorum Health Group, Inc. (a) ................... 65,500 1,588,375
Renal Treatment Centers, Inc. (a) ............... 58,100 1,928,194
Schein Henry, Inc. (a) .......................... 6,600 216,975
Steris Corp. (a) ................................ 47,500 1,888,125
Total Renal Care Holdings, Inc. (a) ............. 57,400 1,768,638
------------
23,591,363
------------
METALS AND MINERALS - 0.2%
Rock of Ages Corp. (a) .......................... 300 5,700
Titanium Metals Corp. (a) ....................... 15,800 493,750
------------
499,450
------------
NON RETAIL STORES - 0.2%
Audio Book Club, Inc. (a) ....................... 400 $ 3,050
Micro Warehouse, Inc. (a) ....................... 33,880 508,200
------------
511,250
------------
OIL SERVICES - 1.6%
Dril-Quip, Inc. (a) ............................. 5600 200,900
Global Industries Ltd (a) ....................... 83,400 1,678,425
National-Oilwell, Inc. (a) ...................... 7,500 574,219
Weatherford Enterra, Inc. (a) ................... 20,900 1,067,206
------------
3,520,750
------------
OIL - 0.3%
Domain Energy Corp. (a) ......................... 13,200 227,700
Newfield Exploration Co. (a) .................... 17,000 461,125
------------
688,825
------------
PRINTING & PUBLISHING - 0.7%
Applied Graphics Technologies, Inc. (a) ......... 17,700 946,950
Harte Hanks Communications ...................... 16,900 587,275
------------
1,534,225
------------
RAILROAD - 0.1%
Wisconsin Central Transport (a) ................. 6,400 199,200
------------
REAL ESTATE - 0.1%
Imperial Credit Commercial Mortgage Investment
Corp. (a) ..................................... 4,800 79,200
Kilroy Realty Corp. ............................. 6,600 174,900
------------
254,100
------------
RESTAURANTS LODGING & HOSPITALITY - 6.6%
Applebee's International, Inc. .................. 36,145 801,967
Capstar Hotel Co. (a) ........................... 47,400 1,679,738
Doubletree Corp. (a) ............................ 11,240 467,865
Harrah's Entertainment, Inc. (a) ................ 60,765 1,196,311
HFS, Inc. (a) ................................... 30,452 2,146,866
Interstate Hotels Co. (a) ....................... 53,000 1,629,750
Outback Steakhouse, Inc. (a) .................... 32,285 873,713
Papa John's International, Inc. (a) ............. 6,000 177,375
Prime Hospitality Corp. (a) ..................... 87,800 1,788,925
Promus Hotel Corp. (a) .......................... 3,800 149,150
Sholodge, Inc. (a) .............................. 12,700 201,613
Signature Resorts, Inc. (a) ..................... 14,850 387,956
Sonic Corp. (a) ................................. 25,185 648,514
TaCo Cabana-Class A (a) ......................... 21,420 107,100
Wyndham Hotel Corp. (a) ......................... 40,250 1,808,734
------------
14,065,577
------------
RETAIL STORES - 5.3%
AC Moore Arts & Crafts, Inc. (a) ................ 600 9,113
Ann Taylor Stores Corp. (a) ..................... 26,200 374,988
Fred Meyer, Inc. (a) ............................ 37,870 1,081,662
General Nutrition Companies (a) ................. 29,800 938,700
Gymboree Corp. (a) .............................. 51,695 1,253,604
Mazel Stores, Inc. (a) .......................... 42,400 657,200
Petco Animal Supplies, Inc. (a) ................. 37,300 1,146,975
Petsmart, Inc. (a) .............................. 72,600 553,575
Regis Corp. ..................................... 44,400 1,065,600
Rite Aid Corp. (a) .............................. 47,599 2,826,205
Talbots, Inc. ................................... 5,500 132,000
US Office Products Co. (a) ...................... 36,000 1,125,000
------------
11,164,622
------------
SPECIAL PRODUCTS & SERVICES - 1.7%
Catalina Marketing Corp. (a) .................... 22,900 1,046,244
Central Parking Corp. ........................... 11,070 604,699
EduTrek International, Inc. (a) ................. 600 14,700
Learning Tree International, Inc. (a) ........... 56,600 1,966,850
USA Floral Products, Inc. (a) ................... 1,300 22,750
------------
3,655,243
------------
TELECOMMUNICATIONS - 4.5%
Aspect Telecommunications Corp. (a) ............. 125,800 3,019,200
Brooks Fiber Properties, Inc. (a) ............... 12,200 681,675
Cable Design Technologies (a) ................... 26,265 1,030,901
Gemstar International Group Ltd. (a) ............ 63,200 1,398,300
Intermedia Communications, Inc. (a) ............. 31,800 1,442,926
Metromedia Fiber Network, Inc. (a) .............. 1,700 40,800
NEXTLINK Communications, Inc. (a) ............... 21,100 477,388
Proxim, Inc. (a) ................................ 34,300 368,725
Transaction Network Services (a) ................ 63,400 1,054,025
VDI Media (a) ................................... 17,300 198,928
------------
9,712,868
------------
WASTE - 0.3%
Casella Waste Systems, Inc.-Class A (a) ......... 1,400 $ 30,975
Superior Services, Inc. (a) ..................... 24,600 658,050
------------
689,025
------------
OTHER - 0.9%
Student Loan Corp. .............................. 38,600 1,898,638
------------
TOTAL COMMON STOCKS (COST $174,993,085) ......... 203,231,519
------------

PRINCIPAL
AMOUNT
------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 4.6%
Federal Home Loan Bank, due 11/03/97, 5.55% ..... $1,100,000 1,099,663
Federal Home Loan Mortgage Corp.,
due 11/3/97, 5.55% ............................ 1,750,000 1,749,469
Federal Home Loan Mortgage Corp.,
due 11/7/97, 5.50% ............................ 4,100,000 4,096,276
Federal National Mortgage Association,
due 11/10/97, 5.55% ........................... 2,800,000 2,796,164
------------
TOTAL US GOVERNMENT AGENCY OBLIGATIONS
(COST $9,733,342) ............................. 9,741,572
------------
TOTAL INVESTMENTS - 99.6%
(Identified Cost $184,726,427) (b) ............ 212,973,091

OTHER ASSETS IN EXCESS OF LIABILTIES - 0.4% 766,751
------------
TOTAL NET ASSETS - 100.0% ....................... $213,739,842
============
- -------------------------------------------------------------------------------
ADR - American Depository Receipt
(a) Non-Income Producing Security
(b) For Federal, Income tax purposes, the cost of securities owned at October
31, 1997 was $185,607,431 resulting in net unrealized appreciation of
securities as follows:
Gross unrealized appreciation ........................... $36,733,055
Gross unrealized depreciation ........................... (9,367,395)
-----------
Net unrealized appreciation .................................. $27,365,660
===========

See notes to financial statements.

<PAGE>

REPUBLIC PORTFOLIOS
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1997
<TABLE>
<CAPTION>
FIXED INTERNATIONAL SMALL CAP
INCOME EQUITY EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS:
Investments in securities, at value (cost
$116,896,922, $186,060,206, and
$184,726,427, respectively) .............. $119,404,416 $206,605,670 $212,973,091
Receivable for investments sold ............ 3,777 1,838,226 2,229,259
Interest receivable ........................ 1,315,671 14,994 --
Dividends receivable ....................... -- 292,460 4,558
Cash ....................................... -- -- 57,083
Unrealized appreciation on open forward
foreign currency contracts ............... -- 321,660 --
Unamortized organization expenses .......... 29,972 29,524 32,272
Prepaid expenses ........................... 1,629 3,116 2,651
------------ ------------ ------------
Total Assets ................................. 120,755,465 209,105,650 215,298,914
------------ ------------ ------------

LIABILITIES:
Payable for investments purchased .......... 2,130,848 810,477 1,010,887
Cash Overdraft ............................. -- 581,012 --
Variation margin payable on futures contracts 1,516 -- --
Unrealized depreciation on open forward
foreign currency contracts ............... 37,655 128,521 --
Sub-advisory fees payable .................. 115,389 347,551 451,020
Audit fees payable ......................... 10,498 9,991 10,134
Custodian fees payable ..................... 7,737 40,035 22,250
Legal fees payable ......................... 5,515 9,675 10,002
Administration fees payable ................ 4,936 9,386 9,453
Fund accounting fees payable ............... 6,666 8,334 6,666
Other accrued expenses ..................... 29,757 31,593 38,660
------------ ------------ ------------
Total Liabilities ............................ 2,350,517 1,976,575 1,559,072
------------ ------------ ------------
NET ASSETS:
Applicable to investors' beneficial interest $118,404,948 $207,129,075 $213,739,842
============ ============ ============

See notes to financial statements.
</TABLE>
<PAGE>

REPUBLIC PORTFOLIOS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1997
<TABLE>
<CAPTION>
FIXED INTERNATIONAL SMALL CAP
INCOME EQUITY EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
---------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income ................................ $6,127,775 $ 516,848 $ 634,652
Dividend income (net of foreign withholding tax
of $0, $456,865 and $143, respectively) ...... 95,573 2,701,665 252,900
---------- ----------- -----------
Total Investment Income .......................... 6,223,348 3,218,513 887,552
---------- ----------- -----------
EXPENSES:
Investment manager and sub-advisory fees ....... 461,508 1,359,496 1,534,077
Administration fees ............................ 46,181 93,296 85,889
Fund accounting fees ........................... 40,000 50,000 40,000
Custodian fees and expenses .................... 54,998 218,713 89,988
Audit fees ..................................... 18,955 18,955 18,955
Amortization of organization expenses .......... 13,505 13,905 8,064
Legal fees ..................................... 22,013 46,057 42,388
Trustees' fees ................................. 4,745 10,220 9,855
Insurance expense .............................. 2,920 6,205 6,054
Other expenses ................................. 49,583 62,094 41,147
---------- ----------- -----------
Total expenses ............................. 714,408 1,878,941 1,876,417
Voluntary fee reductions ................... (184,724) (466,480) (429,442)
---------- ----------- -----------
Total net expenses ......................... 529,684 1,412,461 1,446,975
---------- ----------- -----------
Net Investment Income (Loss) ..................... 5,693,664 1,806,052 (559,423)
---------- ----------- -----------
NET REALIZED/UNREALIZED GAINS (LOSSES) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gains (losses) on:
Investment transactions ...................... 1,445,962 9,477,795 20,375,972
Foreign currency transactions ................ 157,773 1,400,685 --
Futures ...................................... (128,993) -- --
Net unrealized appreciation on investments ..... 1,531,300 11,501,191 23,351,706
Net unrealized appreciation (depreciation) on
foreign currency transactions ................ (21,998) 161,459 --
Net unrealized appreciation on futures contracts 64,937 -- --
---------- ----------- -----------
Net realized/unrealized gains on investments and
foreign currency transactions .................. 3,048,981 22,541,130 43,727,678
---------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS ..................................... $8,742,645 $24,347,182 $43,168,255
========== =========== ===========

See notes to financial statements.
</TABLE>
<PAGE>

REPUBLIC FIXED INCOME PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1997 1996
------------ -----------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income ............................... $ 5,693,664 $ 2,797,404
Net realized gains on investment transactions,
foreign currency transactions and futures ......... 1,474,742 86,604
Net change in unrealized appreciation on investments,
foreign currency and futures ...................... 1,574,239 539,871
------------ -----------
Change in net assets resulting from operations ........ 8,742,645 3,423,879
------------ -----------
CAPITAL SHARE TRANSACTIONS:
Contributions ....................................... 59,757,590 35,186,698
Withdrawals ......................................... (14,273,669) (4,454,722)
------------ -----------
Change in net assets from capital share transactions .. 45,483,921 30,731,976
------------ -----------
CHANGE IN NET ASSETS .................................. 54,226,566 34,155,855
NET ASSETS:
Beginning of year ................................... 64,178,382 30,022,527
------------ -----------
End of year ......................................... $118,404,948 $64,178,382
============ ===========
See notes to financial statements.
</TABLE>
<PAGE>

REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1997 1996
------------ -----------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income ............................... $ 1,806,052 $ 1,107,451
Net realized gains on investment transactions,
foreign currency transactions and futures ......... 10,878,480 2,417,998
Net change in unrealized appreciation on investments,
foreign currency and futures ...................... 11,662,650 7,391,200
------------ ------------
Change in net assets resulting from operations ........ 24,347,182 10,916,649
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Contributions ....................................... 84,915,450 90,808,909
Withdrawals ......................................... (37,372,081) (6,415,942)
------------ ------------
Change in net assets from capital share transactions .. 47,543,369 84,392,967
------------ ------------
CHANGE IN NET ASSETS .................................. 71,890,551 95,309,616
NET ASSETS:
Beginning of year ................................... 135,238,524 39,928,908
------------ ------------
End of year ......................................... $207,129,075 $135,238,524
============ ============
See notes to financial statements.
</TABLE>
<PAGE>

REPUBLIC SMALL CAP EQUITY PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE PERIOD
SEPTEMBER 3,
1996
FOR THE (COMMENCEMENT
YEAR ENDED OF OPERATIONS) TO
OCTOBER 31, OCTOBER 31,
1997 1996
------------ --------------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment loss ............................ $ (559,423) $ (12,942)
Net realized gains on investment transactions .. 20,375,972 283,247
Net change in unrealized appreciation on
investments .................................. 23,351,706 3,030,441
------------ --------------
Change in net assets resulting from operations ... 43,168,255 3,300,746
------------ --------------
CAPITAL SHARE TRANSACTIONS:
Contributions .................................. 79,877,809 116,600,020
Withdrawals .................................... (29,207,088) --
------------ --------------
Change in net assets from capital share
transactions 50,670,721 116,600,020
------------ --------------
CHANGE IN NET ASSETS ............................. 93,838,976 119,900,766
NET ASSETS:
Beginning of year .............................. 119,900,866 100
------------ --------------
End of year .................................... $213,739,842 $ 119,900,866
============ ==============

See notes to financial statements.
</TABLE>

<PAGE>

REPUBLIC PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS - OCTOBER 31, 1997

1. ORGANIZATION. The Republic Fixed Income Portfolio, Republic International
Equity Portfolio and Republic Small Cap Equity Portfolio (collectively the
"Portfolios") are diversified series of the Republic Portfolios (the
"Portfolio Trust"), an open-end management investment company, which
currently has only these three series. The Portfolio Trust was organized as
a master trust fund under the laws of the State of New York on November 1,
1994. The Declaration of Trust permits the Trustees to issue an unlimited
number of beneficial interests in the Portfolios.

The investment objective of the Republic Fixed Income Portfolio is to
realize above-average total return over a market cycle of three to five
years, consistent with reasonable risk, through investment in a
diversified portfolio of U.S. Government securities, corporate bonds
(including bonds rated below investment grade commonly referred to as
"junk bonds"), foreign fixed-income securities, mortgage backed securities
of domestic issuers and other fixed-income securities. The Fixed Income
Portfolio's average weighted maturity will ordinarily exceed five years.

The investment objective of the Republic International Equity
Portfolio is to seek long-term growth of capital and future income through
investment primarily in securities of non-U.S. issuers (including American
Depository Receipts ("ADR's") and U.S. registered securities) and
securities whose principal markets are outside of the United States.

The investment objective of the Small Cap Equity Portfolio is to seek
long-term growth of capital by investing primarily in equity securities of
small- and medium-sized companies that are early in their life cycle but
which may have potential to become major enterprises ("emerging growth
companies").

Republic National Bank of New York ("Republic" or the "Manager")
serves as investment manager to the Portfolios. BISYS Fund Services, Inc.,
("BISYS") serves as administrator to the Portfolios.

2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the
significant accounting policies followed by the Portfolios in the
preparation of their financial statements. The policies are in conformity
with U.S. generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of
the financial statements and the reported amounts of income and expenses
for the period. Actual results could differ from those estimates.

SECURITIES VALUATION:
The net asset value of each Portfolio is determined each day on which the
New York Stock Exchange ("NYSE") is open for trading. Each sub-adviser
typically completes its trading on behalf of the Portfolio in various
markets before 4:00 p.m. and the value of the portfolio securities is
determined when the primary market for those securities closes for the
day. Foreign currency exchange rates are also determined prior to 4:00
p.m., however, if extraordinary events occur that are expected to affect
the value of a portfolio security after the close of the primary exchange
on which it is traded, the security will be valued at fair value as
determined in good faith by, or under the direction of, the Board of
Trustees of the Portfolio Trust.

Equity securities are valued at the last reported sales price on the
securities exchange on which such securities are primarily traded or at
the last reported sales price on the NASDAQ National Securities Market on
the date of valuation.

Bonds and other fixed-income securities which are traded over-the-
counter and on a stock exchange will be valued according to the broadest
and most representative market. It is expected that for bonds and other
fixed income securities this ordinarily will be the over-the-counter
market. Bonds and other fixed income securities (other than short-term
obligations but including listed issues) in the portfolio may be valued on
the basis of valuations furnished by a pricing service, the use of which
has been approved by the Board of Trustees of the Portfolio Trust. In
making such valuations, the pricing service utilizes both dealer-supplied
valuations and electronic data processing techniques which take into
account appropriate factors such as institutional-size trading in similar
groups of securities, yield, quality, coupon rate, maturity, type of
issue, trading characteristics and other market data, without exclusive
reliance upon quoted prices or exchange or over-the-counter prices, since
such valuations are believed to reflect more accurately the fair value of
such securities. Short-term debt obligations are valued at amortized cost,
which constitutes fair value as determined by, or under the direction of,
the Board of Trustees of the Portfolio Trust.

Bonds and other fixed income securities listed on a foreign exchange
are valued at the last quoted sales price available before the time when
assets are valued.

Futures contracts are normally valued at the settlement price on the
exchange on which they are traded.

Portfolio securities (other than short-term obligations) for which
there are no such valuations are valued at fair value as determined in
good faith by, or under the direction of, the Board of Trustees of the
Portfolio Trust.

FOREIGN CURRENCY TRANSLATION:
The accounting records of the Portfolios are maintained in U.S. dollars.
Foreign currency amounts are translated into U.S. dollars at the current
rate of exchange to determine the value of investments, assets and
liabilities. Purchases and sales of securities, and income and expenses
are translated at the prevailing rate of exchange on the respective dates
of such transactions. The Portfolios do not isolate that portion of the
results of operations resulting from changes in foreign exchange rates on
equity investments from fluctuations arising from changes in market prices
of equity securities held. Such fluctuations are included with the net
realized and unrealized gain or loss from investments. The Portfolios
isolate that portion of the results of operations resulting from changes
in foreign exchange rates on debt instruments from fluctuations arising
from changes in market prices of debt instruments held, as gains and
losses on foreign currency transactions.

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
The Portfolios may enter into forward foreign currency exchange contracts
in connection with planned purchases or sales of securities, or to hedge
the U.S. dollar value of portfolio securities denominated in a particular
currency. The Portfolios could be exposed to risks if the counter-parties
to the contracts are unable to meet the terms of their contracts and from
unanticipated movements in the value of a foreign currency relative to the
U.S. dollar. The forward foreign currency exchange contracts are adjusted
by the daily exchange rate of the underlying currency and any gains or
losses are recorded for financial statement purposes as unrealized gains
or losses until the contract settlement date.

FUTURES:
A futures contract is an agreement to purchase/sell a specified quantity
of an underlying instrument at a specified future date or to make/receive
a cash payment based on the value of a securities index. The price at
which the purchase and sale will take place is fixed when the Portfolio
enters into the contract. Upon entering into such a contract the Portfolio
is required to pledge to the broker an amount of cash and/or securities
equal to the minimum "initial margin" requirements of the exchange.
Pursuant to the contract, the Portfolio agrees to receive from or pay to
the broker an amount of cash equal to the daily fluctuation in value of
the contract. Such receipts or payments are known as "variation margin"
and are recorded by the Portfolio as unrealized gains or losses. When the
contract is closed, the Portfolio records a realized gain or loss equal to
the difference between the value of the contract at the time it was opened
and the value at the time when it was closed. The Fixed Income Portfolio
invests in futures contracts solely for the purpose of hedging its
existing portfolio securities, or securities the Fixed Income Portfolio
intends to purchase, against fluctuations in value caused by changes in
prevailing market interest rates. The use of futures transactions involves
the risk of imperfect correlation in movements in the price of futures
contracts, interest rates and the underlying hedged assets, and the
possible inability of counterparties to meet the terms of their contracts.
The summary of open financial futures contracts at October 31, 1997 is
included in the Fixed Income Portfolio's Schedule of Open Futures
Contracts which is included elsewhere in this report.

SECURITIES TRANSACTIONS AND RELATED INCOME:
Securities transactions are accounted for on a trade date basis. Interest
income, including accretion of discount and amortization of premium, is
accrued daily. Dividend income and other distributions from the portfolio
securities are recorded on the ex-dividend date, except, if the ex-
dividend date has passed, certain dividends from foreign securities are
recorded as the Portfolio is informed of the ex-dividend date. Dividend
income is recorded net of foreign taxes withheld. Realized gains and
losses on securities transactions are determined on the identified cost
basis.

EXPENSES ALLOCATION:
Expenses incurred by the Portfolio Trust with respect to any two or more
Portfolios in the Trust are allocated in proportion to the net assets of
each Portfolio, except when allocations of direct expenses to each
Portfolio can otherwise be made more fairly. Expenses directly
attributable to a Portfolio are charged to that Portfolio.

TAXES:
The Portfolios will be treated as a partnership for U.S. federal income
tax purposes and are therefore not subject to U.S. federal income tax. As
such, each investor in the Portfolios will be taxed on its share of the
Portfolios' ordinary income and capital gains. It is intended that the
Portfolios will be managed in such a way that an investor will be able to
satisfy the requirements of the Internal Revenue Code applicable to
regulated investment companies.

Income received by the Portfolio from sources within foreign countries
may be subject to withholding and other income or similar taxes imposed by
such countries.

UNAMORTIZED ORGANIZATION EXPENSES:
Each Portfolio incurred certain costs in connection with their
organization. Such costs have been deferred and are being amortized over a
period not to exceed five years from the commencement of operations.

3. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT MANAGEMENT:
Republic National Bank of New York ("Republic" or the "Manager") serves as
the Investment Manager to the Portfolios pursuant to an investment
management contract with the Portfolio Trust. Subject to the general
guidance and the policies set by the Trustees of the Portfolio Trust,
Republic provides general supervision over the investment management
functions performed by the Sub-Advisers. For its services under the
Investment Management Contract, the Manager is entitled to receive from
the Portfolios, fees payable monthly, at the annual rate of 0.20% of the
Fixed Income Portfolio's average daily net assets and at the annual rate
of 0.25% of each of the International Equity Portfolio's and Small Cap
Equity Portfolio's average daily net assets. For the year ended October
31, 1997 the Manager waived its entire fee for each Portfolio.

SUB-ADVISORY:
Miller, Anderson & Sherrerd (the "Fixed Income Sub-Adviser") continuously
manages the investment portfolio of the Fixed Income Portfolio pursuant to
a sub-advisory agreement with the Manager. For its services, the Fixed
Income Sub-Adviser is paid a fee by the Fixed Income Portfolio, computed
daily and based on the Fixed Income Portfolio's average daily net assets,
equal on an annual basis to 0.375% of the net assets up to $50 million,
0.25% of the net assets over $50 million up to $95 million, $300,000 on
net assets over $95 million up to $150 million, 0.20% of net assets over
$150 million up to $250 million, and 0.15% of net assets over $250
million.

Capital Guardian Trust Company (the "International Equity Sub-
Adviser") continuously manages the investment portfolio of the
International Equity Portfolio pursuant to a sub-advisory agreement with
the Manager. For its services, the International Equity Sub-Adviser is
paid a fee by the International Equity Portfolio, computed daily and based
on the International Equity Portfolio's average daily net assets, equal on
an annual basis to 0.70% of the net assets up to $25 million, 0.55% of the
net assets over $25 million up to $50 million, 0.425% of net assets over
$50 million up to $250 million, and 0.375% of net assets over $250
million.

MFS Institutional Advisors, Inc. (the "Small Cap Equity Sub-Adviser")
continuously manages the investment portfolio of the Small Cap Equity
Portfolio pursuant to a sub-advisory agreement with the Manager. For its
services, the Small Cap Equity Sub-Adviser is paid a fee by the Small Cap
Equity Portfolio, computed daily and based on the Small Cap Equity
Portfolio's average daily net assets, equal on an annual basis to 0.75% of
the net assets up to $50 million and 0.60% of the net assets in excess of
$50 million.

It is the responsibility of the sub-advisers not only to make
investment decisions for their respective Portfolio, but also to place
purchase and sale orders for the portfolio transactions of their
respective Portfolio. For the year ended October 31, 1997 the sub-advisory
fees for each Portfolio were as follows:

Fixed Income Portfolio ................................... $ 276,784
International Equity Portfolio ........................... 893,016
Small Cap Equity Portfolio ............................... 1,104,635

ADMINISTRATION:
Pursuant to an administrative services agreement, BISYS Fund Services
Ireland Ltd., ("BISYS") provides the Portfolios with general office
facilities, and supervises the overall administration of the Portfolios
including, among other responsibilities, assisting in the preparation and
filing of all documents required for compliance by the Portfolios with
applicable laws and regulations and arranges for the maintenance of books
and records of the Portfolios. For its services to the Portfolios, BISYS
receives from each Portfolio, fees payable monthly, equal on an annual
basis to 0.05% of the first $1 billion of a Portfolio's average daily
assets; 0.04% of the next $1 billion of such assets; and 0.035% of such
assets in excess of $2 billion. For the year ended October 31, 1997 BISYS
earned the following fees as Administrator for each Portfolio.

Fixed Income Portfolio ...................................... $46,181
International Equity Portfolio .............................. 93,296
Small Cap Equity Portfolio .................................. 85,889

FUND ACCOUNTING:
Pursuant to a Fund Accounting Agreement, Investors Bank and Trust Co.,
("IBT") serves as fund accounting agent to the Portfolios. For its
services to the Fixed Income Portfolio, International Equity Portfolio and
Small Cap Equity Portfolio, IBT receives fees payable monthly equal on an
annual basis to $40,000, $50,000 and $40,000 respectively. For the year
ended October 31, 1997, the following fees were incurred for these
services.

Fixed Income Portfolio ...................................... $40,000
International Equity Portfolio .............................. 50,000
Small Cap Equity Portfolio .................................. 40,000

TRUSTEES' FEES:
The fees paid and out-of-pocket expenses reimbursed to the Trustees for
the year ended October 31, 1997 were as follows:

Fixed Income Portfolio ...................................... $ 4,745
International Equity Portfolio .............................. 10,220
Small Cap Equity Portfolio .................................. 9,855

WAIVER OF EXPENSES:
The Manager has voluntarily agreed to waive its fees, for certain
expenses. For the year ended October 31, 1997 expenses of the Republic
Portfolios were voluntarily reduced by amounts as detailed below:
AMOUNTS
WAIVED
------

Fixed Income Portfolio ..................................... $184,724
International Equity Portfolio ............................. 466,480
Small Cap Equity Portfolio ................................. 429,442

4. INVESTMENT TRANSACTIONS. During the year ended October 31, 1997, each
Portfolio purchased and sold portfolio securities, excluding short-term
securities, in the following amounts:

PURCHASES SALES

Fixed Income Portfolio ............. $349,101,435 $300,863,951
International Equity Portfolio ..... 107,088,429 49,339,534
Small Cap Equity Portfolio ......... 206,704,555 146,513,248

5. SUBSEQUENT EVENT. The Board of Trustees of the Funds approved the
transfer of the custody function to Republic National Bank of New York
effective from December 1, 1997 for the Funds and the Portfolios excluding
the Republic International Equity Portfolio.
<PAGE>

REPUBLIC FIXED INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE PERIOD
JANUARY 9, 1995
FOR THE FOR THE (COMMENCEMENT
YEAR ENDED YEAR ENDED OF OPERATIONS) TO
OCTOBER 31, 1997 OCTOBER 31, 1996 OCTOBER 31, 1995
---------------- ---------------- ----------------
<S> <C> <C> <C>
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year (000) $118,405 $64,178 $30,023
Ratio of expenses to average
net assets ...................... 0.57% 0.67% 0.46%(b)
Ratio of net investment income to
average net assets .............. 6.17% 5.66% 6.04%(b)
Ratio of expenses to average
net assets (a) .................. 0.77% 0.90% 1.00%(b)
Ratio of net investment income to
average net assets (a) .......... 5.97% 5.43% 5.51%(b)
Portfolio turnover ................ 349.00% 152.00% 100.00%

REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE PERIOD
JANUARY 9, 1995
FOR THE FOR THE (COMMENCEMENT
YEAR ENDED YEAR ENDED OF OPERATIONS) TO
OCTOBER 31, 1997 OCTOBER 31, 1996 OCTOBER 31, 1995
---------------- ---------------- ----------------
<S> <C> <C> <C>

RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year (000) ... $207,129 $135,239 $39,929
Ratio of expenses to average
net assets ...................... 0.76% 0.83% 0.64%(b)
Ratio of net investment income to
average net assets .............. 0.97% 1.14% 1.55%(b)
Ratio of expenses to average net
assets (a) ...................... 1.01% 1.10% 1.39%(b)
Ratio of net investment income to
average net assets (a) .......... 0.72% 0.87% 0.80%(b)
Portfolio turnover ................ 30.00% 23.30% 3.07%
Average commission rate
paid (c) ........................ $0.0020 $0.0030 --

(a) During the year, certain fees were voluntarily reduced and expenses reimbursed. If such
voluntary fee reductions and expense reimbursements had not occurred, the ratios would have been
as indicated.
(b) Annualized.
(c) Represents the dollar amount of commissions paid on Portfolio transactions divided by the total
number of shares purchased and sold for which commissions were charged. See notes to financial
statements.
</TABLE>

REPUBLIC SMALL CAP EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE PERIOD
SEPTEMBER 3, 1996
FOR THE (COMMENCEMENT
YEAR ENDED OF OPERATIONS) TO
OCTOBER 31, 1997 OCTOBER 31, 1996
---------------- ----------------
<S> <C> <C>
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year (000) ................. $213,740 $119,901
Ratio of expenses to average net assets ......... 0.84% 0.82%(b)
Ratio of net investment loss to average
net assets .................................... (0.33)% (0.11)%(b)
Ratio of expenses to average net
assets (a) .................................... 1.09% 1.10%(b)
Ratio of net investment loss to average
net assets (a)................................. (0.58)% (0.39)%(b)
Portfolio turnover .............................. 92.18% 50.55%
Average commission rate paid (c) ................ $0.0566 $0.0093

(a) During the year, certain fees were voluntarily reduced. If such voluntary fee reductions and
expense reimbursements had not occurred, the ratios would have been as indicated.
(b) Annualized.
(c) Represents the dollar amount of commissions paid on Portfolio transactions divided by the total
number of shares purchased and sold for which commissions were charged.

See notes to financial statements.
</TABLE>

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[LOGO]

INDEPENDENT AUDITORS' REPORT

The Board of Trustees
Republic Portfolios:

We have audited the accompanying statements of assets and liabilities of
Republic Fixed Income Portfolio, Republic International Equity Portfolio and
Republic Small Cap Equity Portfolio (the Funds), portfolios of Republic
Portfolios, including the schedules of investments, as of October 31, 1997 and
the related statements of operations for the year then ended and statements of
changes in net assets and financial highlights for each of the years or
periods in the two-year period then ended. These financial statements and
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights for
Republic Fixed Income Portfolio and Republic International Equity Portfolio
for the period from January 9, 1995 (commencement of operations) to October
31, 1995 were audited by other auditors whose reports thereon, dated December
8, 1995, expressed unqualified opinions on those financial highlights.

We conducted our audits in accordance with United States generally
accepted auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements and financial highlights. Our
procedures included confirmation of securities owned by Republic Fixed Income
Portfolio, Republic International Equity Portfolio and Republic Small Cap
Equity Portfolio as of October 31, 1997 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Republic Fixed Income Portfolio, Republic International Equity Portfolio and
Republic Small Cap Equity Portfolio as of October 31, 1997, the results of
their operations for the year then ended and changes in their net assets and
financial highlights for the each of the years or periods in the two-year
period then ended in conformity with United States generally accepted
accounting principles.

KPMG

Toronto, Ontario
December 12, 1997
<PAGE>

REPUBLIC NEW YORK TAX-FREE BOND FUND
REPUBLIC EQUITY FUND
REPUBLIC FIXED INCOME FUND
REPUBLIC INTERNATIONAL EQUITY FUND
REPUBLIC SMALL CAP EQUITY FUND

REPUBLIC FAMILY OF FUNDS: SUB-ADVISERS
CUSTOMER SERVICE REPUBLIC EQUITY FUND
Republic National Bank of New York Alliance Capital Management, L.P.
452 Fifth Avenue 1345 Avenue of the Americas
New York, NY 10018 New York, NY 10105
(800) 782-8183
Brinson Partners, Inc.
INVESTMENT ADVISER 209 South LaSalle Street
Republic National Bank of New York Chicago, IL 60604
452 Fifth Avenue
New York, NY 10018 REPUBLIC FIXED INCOME FUND
Miller Anderson & Sherrerd
ADMINISTRATOR, DISTRIBUTOR AND SPONSOR One Tower Bridge
BISYS Fund Services West Conshohocken, PA 19428
3435 Stelzer Road
Columbus, OH 43219 REPUBLIC INTERNATIONAL EQUITY FUND
Capital Guardian Trust Company
CUSTODIAN AND TRANSFER AGENT 11100 Santa Monica Boulevard
Investors Bank & Trust Company Los Angeles, CA 90025
89 South Street
Boston, MA 02111 REPUBLIC SMALL CAP EQUITY FUND
MFS Institutional Advisors, Inc.
INDEPENDENT AUDITORS 500 Boylston Street
KPMG Peat Marwick LLP Boston, MA 02116
99 High Street
Boston, MA 02110

LEGAL COUNSEL
Dechert Price & Rhoads
1500 K Street, N.W.
Washington, D.C. 20005