<PAGE>
[Graphic Omitted]
---------------------------
REPUBLIC
NEW YORK TAX-FREE BOND FUND
REPUBLIC
EQUITY FUND
REPUBLIC
FIXED INCOME FUND
REPUBLIC
INTERNATIONAL EQUITY-FUND
REPUBLIC
SMALL CAP EQUITY FUND
- ---------------
[Logo]
- ---------------
REPUBLIC
- --------------- SEMI-ANNUAL REPORT
FAMILY OF FUNDS APRIL 30, 1998
- ---------------
<PAGE>
REPUBLIC FUNDS
SEMI-ANNUAL REPORT - APRIL 30, 1998
TABLE OF CONTENTS
PAGE
President's Message ........................................... 1
Commentary from the Investment Adviser ........................ 2
REPUBLIC FUNDS
REPUBLIC NEW YORK TAX-FREE BOND FUND AND REPUBLIC EQUITY FUND
Schedules of Investments ...................................... 7
Statements of Assets and Liabilities .......................... 17
Statements of Operations ...................................... 19
Statements of Changes in Net Assets ........................... 20
REPUBLIC ADVISOR FUNDS TRUST
REPUBLIC FIXED INCOME FUND, REPUBLIC INTERNATIONAL EQUITY FUND AND
REPUBLIC SMALL CAP EQUITY FUND
Statements of Assets and Liabilities .......................... 22
Statements of Operations ...................................... 23
Statements of Changes in Net Assets ........................... 25
Notes to Financial Statements ................................. 28
Financial Highlights .......................................... 38
REPUBLIC FIXED INCOME PORTFOLIO, REPUBLIC INTERNATIONAL EQUITY
PORTFOLIO, REPUBLIC SMALL CAP EQUITY PORTFOLIO
Schedules of Investments ...................................... 47
Statements of Assets and Liabilities .......................... 75
Statements of Operations ...................................... 76
Statements of Changes in Net Assets ........................... 77
Notes to Financial Statements ................................. 80
Financial Highlights .......................................... 87
<PAGE>
PRESIDENT'S MESSAGE
June 1998
DEAR SHAREHOLDER:
We are very pleased to present you with the semi-annual reports for the
Republic Funds and the Republic Advisor Funds for the six months ended April 30,
1998. 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 for the six months ended April 30, 1998 also follow. We
look forward to servicing your financial needs and appreciate your continued
support.
Respectfully submitted,
/s/ Walter B. Grimm
Walter B. Grimm
President
<PAGE>
COMMENTARY FROM THE INVESTMENT ADVISER -
REPUBLIC NATIONAL BANK OF NEW YORK
U.S. ECONOMIC REVIEW
The U.S. economy sustained its rapid expansion during the first six months of
the fiscal year 1998, providing the foundation for a further extension of
favorable performance in financial markets. Despite expectations at year end
that falling export demand from Asia would quickly translate into slower U.S.
growth, GDP expanded at an annualized 4.0 to 4.5% for the first six months. The
catalysts for strong growth have been the strength in domestic consumption and
business fixed investment. Inflation remains tame with little prospect of a
flare-up. Although labor markets remain tight, higher wages are not being passed
on to consumers in the form of higher prices. Falling raw materials and
commodities prices, especially oil, combined with intense global competition,
have helped offset labor related price pressure. Judging from the producer price
index, which continued to fall during the six month period, the inflation
outlook should remain favorable for the balance of the fiscal year.
GLOBAL ECONOMIC REVIEW
The dominant theme for the improving economies of Europe is the countdown to the
commencement of the European Monetary Union (EMU) in January 1999. Eleven
countries are slated to join and have achieved remarkable progress in their
quest to meet EMU criteria over the past few years in the form of lower
inflation, lower interest rates and shrinking budget deficits. Should they
succeed, and the political will appears to support that outcome, the combined
countries will have a GDP roughly the size of the U.S., all under one currency.
However, there are still many hurdles to be addressed that could postpone or
even derail implementation.
The Japanese economy was further weakened by troubles in the banking system.
Moody's recently revised its outlook on Japan's debt rating from stable to
negative. Japan is still searching for a viable economic stimulus plan that will
find some measure of credibility with financial markets. Foreign exchange
traders registered their disappointment with the latest plan by selling yen.
After falling to near 136Y/$, Japanese monetary authorities were forced to
support their currency by selling dollars.
MARKET ENVIRONMENT
U.S. stocks continued their climb upward during the first half of the fiscal
year. Large capitalization issues continued to outpace smaller issues. Equity
markets were supported by increased confidence in the economic outlook, stable
interest rates and earnings reports generally in line with optimistic forecasts.
International markets rebounded from a slow start in fiscal year 1998. Most
European markets posted strong gains which more than offset lackluster
performance of Pacific Rim markets.
U.S. fixed income markets benefited from flight to quality capital inflows which
pushed interest rates lower across the maturity spectrum. However, the market
has seen volatility pick up as investors weigh the impact of Asia on an
accelerating domestic economy.
PORTFOLIO REVIEW
Republic New York Tax-Free Bond Fund
- ------------------------------------
The Republic New York Tax-Free Bond Fund Class Y Shares ("Adviser Shares")
returned 2.35%* for the six months ended April 30, 1998, compared to 2.46% for
the Lipper NY Municipal Bond Fund Index.** As of April 30, 1998, the Fund's
duration (interest rate sensitivity) was 7.33 years.*** The Fund's annualized
30-day SEC yield was 4.45%* (Adviser Shares).
The past six months in the fixed income markets was marked by volatility as the
effects of the Asian crisis partially mitigated the strength of the domestic
economy. Inflation was noticeably absent on the producer and consumer level. The
Fund had extended its duration slightly in the early part of 1998, but as the
economic statistics pointed to a robust economy and the Federal Reserve remained
biased towards monetary tightening, the Fund has become more defensive and has
shortened the duration of its Portfolio. Credit spreads remained compressed and
the Fund focused on increasing income in higher quality securities that would
provide a cushion against a rise in the general level of interest rates.
Tax-exempts remain relatively attractive versus taxable instruments due to the
heavy issuance in the first quarter of this year combined with a general lack of
demand on the part of the retail investor.
*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 30-day SEC
yield figure would have been 4.21%. 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 the original cost.
**Lipper NY Municipal Bond Fund Index is an equally weighted index composed of
the 30 largest mutual funds in this universe. The index is unmanaged and
includes reinvested dividends. One cannot invest directly in an index.
***The composition of the portfolio is subject to change.
Republic Equity Fund
- --------------------
The Republic Equity Fund Adviser Shares returned 21.70%* for the six months
ended April 30, 1998, compared to 18.15% for the Lipper Growth Fund Index.**
During the first six months, the Fund benefited from the strong performance of
large capitalization stocks. Concern over weakening Asian economies drove
investors to focus on large, high quality stocks, perceived as being less
correlated with the Asian crisis. Within the large capitalization segment,
growth issues outpaced value issues by a slight margin.
As of April 30, 1998, the Fund's portfolio held 139 securities. The top sector
weightings were approximately 18.9% Consumer Products and Services, 17.6%
Technology and Communications, 8.1% Banking & Finance and 7.7%
Pharmaceuticals.***
*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 the original cost.
**Lipper Growth Fund Index is an equally weighted index composed of the 30
largest mutual funds in this universe. The index is unmanaged and includes
reinvested dividends. One cannot invest directly in an index.
***The composition of the portfolio is subject to change.
Republic Fixed Income Fund
- --------------------------
The Republic Fixed Income Fund returned 3.41%* for the six months ended April
30, 1998, compared to 3.43% for the Lipper A Rated Bond Fund Index.** As of
April 30, 1998, the Fund's 30-day SEC yield was 5.34%.
The Fund decreased interest-rate sensitivity (duration) from neutral to slightly
below the benchmark during the period, and positioned the portfolio to benefit
from a steepening yield curve. Exposure to inflation-indexed Treasuries was
increased to take advantage of their attractive real yields. Mortgages remained
overweighted, though prepayment risk continues to be lower than that of the
benchmark.***
*The performance data quoted represents past performance and is not an
indication of future results. The investment return and Net Asest Value will
fluctuate so that an investors shares, when redeemed, may be worth more or
less than their original costs.
**Lipper A Rated Bond Fund Index is an equally weighted index composed of the
30 largest mutual funds within this investment objective. The index is
unmanaged and includes reinvested dividends. One cannot invest directly in an
index.
***The composition of the portfolio is subject to change.
Republic International Equity Fund
- ----------------------------------
The Republic International Equity Fund earned 16.7%* for the six months ended
April 30, 1998, outperforming the 16.53% advance of the Lipper International
Equity Fund Index.**
European markets advanced sharply during the period, while Asia's problems
persist. In Japan, unemployment hit a post-war high and bond yields hit a
post-war low as concerns of deflation continue. The Fund's bottom-up approach
has led to superior stock selection and to a low exposure in Japan relative to
the benchmark which 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
Australia.****
As of April 30, 1998, the Republic International Equity Portfolio, in which
the Fund invests all of its investable assets, was broadly diversified with
160 equity holdings representing 26 countries. The Portfolio's weightings by
geographical region were as follows: Europe 52.4%, Japan 17.6%, Pacific Ex-
Japan 4.5%, and 25.5% in other regions. The largest five holdings of the
Portfolio represent 9.86% of the Portfolio: Mannesmann AG (Germany: machinery
& engineering), Zeneca Group Plc (United Kingdom: Pharmaceutical, agri
chemicals),. Astra (Sweden: medical, drugs), Novartis (Switzerland:
Chemicals), Nokia (Finland: telecommunications),
*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 the original cost.
**Lipper International Equity Fund Index is an equally weighted index composed
of the 30 largest mutual funds in this universe. The index is unmanaged and
includes reinvested dividends. One cannot invest directly in an index.
***MSCI EAFE Index 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. The index is unmanaged and includes reinvested
dividends. One cannot invest directly in an index.
****International investing involves increased risk and volatility. The
composition of the portfolio is subject to change.
Republic Small Cap Equity Fund
- ------------------------------
The Republic Small Cap Equity Fund returned 16.41%* for the six months ended
April 30, 1998, compared to 10.25% for the Lipper Small Company Fund Index.**
The first six months of the fiscal year saw small capitalization stocks lag the
overall equity market. Small cap portfolios generally were adversely influenced
by a sharp, across-the-board correction in technology stocks at year end. The
portfolio's largest sectors were Technology, Leisure and Financial Services,
with financials and leisure benefiting from increased investor interest during
the period.
The domestic equity market's performance over the last several years has been
little short of spectacular. While we are pleased with the market's past
advances, we see more historically average years ahead. The fallout from Asia's
problems, the increasing age of the current economic expansion, slower profit
growth, and the market's high level of valuation relative to historical averages
argue against above-average returns going forward. As a result, we see basic
fundamental research as a critical element in maintaining above-market
performance over the intermediate term. The Fund will continue to focus its our
efforts on identifying industries and companies that are likely to generate
above average rates of growth in sales and earnings.
As of April 30, 1998, 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 were approximately 16.8% Computer Software & Services,
15.7% Business Services, 9.4% Medical, Health Technology & Services and 5.6%
U.S. Government Agency Obligations.***
*The performance 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 the original cost.
**Lipper Small Company Fund Index is an equally weighted index composed of the
30 largest mutual funds in this universe. The index is unmanaged and includes
reinvested dividends. One cannot invest directly in an index.
***Small capitalization stocks typically involve more risk since they have
experienced a greater degree of market volatility. The composition of the
portfolio is subject to change.
This material must be preceded or accompanied by a current prospectus.
<PAGE>
REPUBLIC NEW YORK TAX-FREE BOND FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
APRIL 30, 1998
<TABLE>
<CAPTION>
RATINGS
PRINCIPAL MOODY'S/ VALUE
AMOUNT DESCRIPTION MATURITY S&P(c) (NOTE 2)
- ---------- ----------- -------- -------- ---------
<S> <C> <C> <C>
NEW YORK MUNICIPAL OBLIGATIONS - 91.2%(a)
$ 500,000 Brookhaven New York, General
Obligation, FGIC Insured 5.50% ... 10/1/12 Aaa/AAA $ 518,445
250,000 Erie County, New York, General
Obligation, Series B, FGIC Insured
5.375% ........................... 6/15/07 Aaa/AAA 262,960
600,000 Essex County, New York Industrial
Development Agency PCR 5.550%..... 1/01/14 A3/A- 619,602
285,000 Metropolitan Transit Authority of
New York, Transportation Facility
Revenue - Series C-1, 5.750% ..... 7/01/13 Baa1/BBB+ 300,364
1,000,000 Metropolitan Transit Authority of
New York, Transportation Facility
Revenue - Series C-1, FGIC Insured
5.250% ........................... 7/1/17 Aaa/AAA 991,570
100,000 Nassau County New York MBIA 5.400% . 5/1/11 Aaa/AA 105,012
200,000 New York, NY Loc-Morgan GTY VRDN
4.100% ........................... 8/1/17 VMIG-1/A-1+ 200,000
100,000 New York, NY Loc-Morgan GTY VRDN
4.100% ........................... 8/1/21 VMIG-1/A-1+ 100,000
1,000,000 New York, NY, General Obligation,
Series H 6.000% .................. 8/1/14 A-3/BBB+ 1,062,780
1,000,000 New York, NY, General Obligation,
Series L 5.875% .................. 8/1/15 A-3/BBB+ 1,049,190
1,000,000 New York City Housing Development
Corporation, Multi Family Mortgage
Revenue, Refunding - Series A
5.750% ........................... 11/1/18 Aa2/AA 1,038,000
500,000 New York City Industrial Development
Agency, Special Facilities,
Revenue, Terminal One Group
Project, AMT 6.100% .............. 1/1/09 A/A 527,500
1,000,000 New York City Industrial Development
Agency, Special Facilities,
Revenue, Terminal One Group
Project, AMT 6.000% .............. 1/1/15 A/A 1,046,770
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- 774,667
1,200,000 New York State Dormitory Authority,
Revenue, Cornell University,
Series B VRDN 4.100% ............. 7/1/25 VMIG1/A-1+ 1,200,000
375,000 New York State Dormitory Authority,
Revenue, 6.250% .................. 5/15/17 A-3/A- 411,094
1,000,000 New York State Dormitory Authority,
Revenue, City University, Series
A, AMBAC Insured 5.625% .......... 7/1/16 Aaa/AAA 1,062,860
1,000,000 New York State Dormitory Authority,
Revenue, Court Facilities, Series
A 5.625% ......................... 5/15/13 Baa1/BBB+ 1,015,930
1,000,000 New York State Dormitory Authority,
Revenue, Department of Health
5.750% ........................... 7/1/17 Baa1/BBB 1,023,880
225,000 New York State Dormitory Authority,
Revenue, Mental Health Service
Facility Series B 6.500% ......... 8/15/11 A-3/A- 256,876
1,000,000 New York State Dormitory Authority,
Revenues, Mental Health Services,
Series B 5.500% .................. 8/15/17 A-3/A- 1,008,820
1,000,000 New York State Dormitory Authority,
Revenue, Rochester Institute of
Technology, MBIA Insured 5.300% 7/1/17 Aaa/AAA 1,002,430
500,000 New York State Dormitory Authority,
Revenue, State University,
Educational Facilities, 5.750% ... 5/15/09 A-3/A- 530,325
1,000,000 New York State Dormitory Authority,
Revenue, State Secured Hospital NY
Downtown 5.200% .................. 02/15/13 Baa1/BBB+ 980,120
200,000 New York State Dormitory Authority,
Revenue, State, Memorial Sloan
Kettering Hospital MBIA insured
5.250% ........................... 7/1/11 Aaa/AA 205,838
1,000,000 New York State Environmental
Facilities Corporation Pollution
Control Revenue, Water Revolving
Fund - Series C 5.850% ........... 1/15/15 Aaa/AAA 1,067,040
1,000,000 New York State Housing Finance
Agency, Service Contract
Obligation, Revenue, Refunding,
Series C 5.875% .................. 9/15/14 Baa1/BBB 1,031,580
1,000,000 New York Local Govt Asst Corp 6.000%
.................................. 4/1/16 A-3/A+ 1,079,380
1,000,000 New York Local Govt Asst Corp MBIA
Insured 5.000% ................... 4/1/17 Aaa/AAA 970,200
390,000 New York State Medical Care
Facilities, Revenue, Hospital &
Nursing Home, FHA Insured 6.400% . 8/15/14 Aa2/AAA 423,739
1,000,000 New York State Mtg Agy Rev AMT
5.600% ........................... 10/1/14 Aa2/NR 1,027,820
1,000,000 New York State Mtg Agy Rev 5.375% .. 10/1/17 AA-2/NR 1,000,360
1,000,000 New York State Thruway Authority,
Service Contract, Revenue, Local
Highway and Bridge 5.875% ........ 4/1/14 BBB+ 1,035,760
1,000,000 New York State Urban Development
Corporation, Revenue 5.750% ...... 4/1/12 Baa1/BBB+ 1,036,900
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 517,080
-----------
TOTAL NEW YORK MUNICIPAL OBLIGATIONS
(COST $25,648,388) ................................................ 26,484,892
-----------
OTHER BONDS AND NOTES - 7.2% (a)
1,000,000 Puerto Rico Commonwealth Highway &
Transportation Authority, Revenue,
Series W 5.500% .................. 7/1/08 Baa1/A 1,039,820
1,000,000 Puerto Rico Electric Power
Authority, Revenue, Series O
6.000% ........................... 7/1/14 Baa1/BBB+ 1,054,650
-----------
TOTAL OTHER BONDS AND NOTES
(COST $2,028,070) ................................................. 2,094,470
-----------
SHORT-TERM INVESTMENTS - 0.5% (a)
100,000 Municipal Asst Corp of New York
Commercial Paper 3.350% .......... 5/7/98 P1/A1 100,000
42,000 Provident New York Tax Free Money Market Fund ....................... 42,000
-----------
TOTAL SHORT-TERM INVESTMENTS
(COST $142,000) ................................................... 142,000
-----------
TOTAL INVESTMENTS - 98.9% (COST $27,818,458) (D) ................................ 28,721,362
OTHER ASSETS IN EXCESS OF LIABILITIES - 1.1% .................................... 322,130
-----------
NET ASSETS - 100.0% ............................................................. $29,043,492
===========
</TABLE>
(a) Percentages indicated are based on net assets.
(b) Approximately 24% 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 April 30, 1998 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 April 30, 1998. These ratings
are unaudited.
(d) For Federal income tax purposes, the cost of securities owned at April 30,
1998 was substantially the same as the cost of securities for financial
statement purposes.
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
MBIA -Municipal Bond Insurance Association
RANs -Revenue Anticipation Notes
VRDN -Variable Rate Discount Note - The interest rate shown, which will change
periodically, is the rate in effect at April 30, 1998
See notes to financial statements
<PAGE>
REPUBLIC EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
APRIL 30, 1998
VALUE
DESCRIPTION SHARES (NOTE 2)
- ----------- ------ ------------
COMMON STOCK - 97.3% (b)
AEROSPACE & AIRCRAFT - 4.8%
Allied Signal, Inc. ................................ 41,500 $ 1,818,219
Lockheed Martin Corp. ............................. 41,400 4,610,925
Raytheon Co. ...................................... 1,200 68,025
Raytheon Co. Class B .............................. 28,200 1,598,587
United Technologies Corp. ......................... 14,000 1,378,125
------------
9,473,881
------------
BANKING & FINANCE - 8.1%
Chase Manhattan Corp. ............................. 14,300 1,981,444
Citicorp. ......................................... 12,100 1,821,050
First American Corp. .............................. 6,500 320,531
First Security Corp. .............................. 12,300 301,350
Hibernia Corp. .................................... 13,800 282,038
MBNA Corp. ........................................ 70,000 2,371,250
Merrill Lynch & Co. ............................... 22,800 2,000,700
Morgan Stanley, Dean Witter, Discover & Co. ....... 33,000 2,602,875
NationsBank Corp. ................................. 28,500 2,158,875
Regions Financial Corp. ........................... 6,400 279,200
U.S. Bancorp. ..................................... 14,654 1,861,058
------------
15,980,371
------------
CHEMICALS - 1.2%
Eastman Chemical Co. .............................. 13,700 941,875
Geon Co. .......................................... 6,800 162,350
Praxair Inc. ....................................... 17,100 860,344
Witco Corp. ....................................... 12,100 479,463
------------
2,444,032
------------
COMMUNICATIONS - 3.2%
CommScope, Inc. (a) ............................... 17,366 282,197
Comverse Technology, Inc. (a) ..................... 11,075 524,678
Lucent Technologies ............................... 28,000 2,131,500
Nextel Communications, Inc. (a) ................... 34,600 992,588
WorldCom, Inc. (a) ................................ 57,600 2,464,197
------------
6,395,160
------------
CONSTRUCTION & HOUSING - 1.9%
Champion Enterprises, Inc. (a) .................... 11,100 276,112
Comerica, Inc. ..................................... 10,200 682,763
Fleetwood Enterprises, Inc. ........................ 3,800 175,513
Lafarge Corp. ..................................... 5,800 232,000
Martin Marietta Materials ......................... 7,300 342,644
Masco Corp. ....................................... 28,900 1,676,200
Medusa Corp. ...................................... 400 24,600
Southdown, Inc. .................................... 4,300 304,225
------------
3,714,057
------------
CONSUMER MANUFACTURING - 3.4%
Echlin, Inc. ....................................... 3,700 175,056
General Electric Co. .............................. 45,000 3,830,625
Harley-Davidson, Inc. .............................. 32,000 1,152,000
Lear Corp. (a) .................................... 10,700 573,119
Sunbeam Corp. ..................................... 16,200 407,025
U.S. Industries, Inc. .............................. 21,000 569,625
------------
6,707,450
------------
CONSUMER PRODUCTS - 11.2%
Bestfoods ......................................... 21,800 1,196,275
Campbell Soup Co. ................................. 23,100 1,185,319
Coca-Cola Co. ..................................... 23,200 1,760,300
Colgate-Palmolive Co. ............................. 26,000 2,331,875
Corn Product International Inc. .................... 4,500 160,312
Dial Corp. ........................................ 12,800 312,000
Gillette Co. ...................................... 25,900 2,989,831
Kimberly-Clark Corp. .............................. 33,200 1,684,900
Nabisco Holdings Corp. ............................ 25,300 1,209,656
Philip Morris Companies, Inc. ...................... 130,100 4,854,356
Procter & Gamble Co. .............................. 17,400 1,430,062
Sealed Air Corp. (a) .............................. 20,400 1,278,825
Tyson Foods, Inc. .................................. 50,450 974,316
York International Corp. (a) ...................... 15,400 759,413
------------
22,127,440
------------
CONSUMER SERVICES - 7.7%
Circuit City Stores ............................... 36,600 1,486,875
Dayton Hudson Corp. ............................... 16,900 1,475,581
Food Lion, Inc. .................................... 48,000 486,000
Gannett Company, Inc. .............................. 20,400 1,385,925
Home Depot, Inc. ................................... 34,000 2,367,250
Interpublic Group, Inc. ............................ 16,200 1,034,775
Kohl's ............................................ 30,000 1,239,375
Sears, Roebuck and Co. ............................ 25,600 1,518,400
Viad Corp. ........................................ 24,300 627,244
Wal-Mart Stores Inc. ............................... 18,500 935,406
Walt Disney Co. ................................... 20,200 2,511,112
------------
15,067,943
------------
COSMETICS & TOILETRIES - 0.5%
Avon Products Inc. ................................. 12,400 1,019,125
------------
ELECTRIC SERVICES - 3.6%
AES Corp. ......................................... 7,500 413,906
CMS Energy Corp. .................................. 32,000 1,398,000
Enron Corp. ....................................... 33,200 1,633,025
Entergy Corp. ..................................... 64,700 1,609,412
Firstenergy Corp. ................................. 7,960 240,790
PECO Energy Co. ................................... 74,000 1,762,125
------------
7,057,258
------------
FARM PRODUCTS -0.2%
IMC Global Inc. .................................... 10,100 363,600
------------
FOREST PRODUCTS - 1.1%
Champion International Corp. ...................... 8,800 473,550
Fort James Corp. .................................. 29,000 1,439,125
Westvaco Corp. .................................... 5,900 178,844
------------
2,091,519
------------
HEALTH CARE - 5.4%
Baxter International, Inc. ......................... 40,400 2,239,675
Beckman Coulter, Inc. .............................. 10,700 595,856
Bristol-Myers Squibb Co. .......................... 28,300 2,996,263
Covance, Inc. (a) ................................. 12,500 267,969
Health Care & Retirement Corp. (a) ................ 11,200 456,400
Manor Care, Inc. ................................... 12,700 445,294
Medtronic, Inc. .................................... 26,800 1,410,350
United Healthcare Corp. ........................... 21,000 1,475,250
Vencor, Inc. (a) .................................. 26,300 713,387
------------
10,600,444
------------
INDUSTRIAL MACHINERY & RELATED SERVICES - 0.6%
Harnischfeger Industries, Inc. ..................... 17,400 491,550
Pentair, Inc. ...................................... 13,100 566,575
Timken Co. ........................................ 3,500 139,781
------------
1,197,906
------------
INSURANCE - 6.6%
Aetna Inc. ......................................... 7,000 565,688
American International Group ...................... 14,200 1,868,188
AON Corp. ......................................... 44,050 2,841,225
CIGNA Corp. ....................................... 16,200 3,352,388
Travelers, Inc. .................................... 51,000 3,120,563
Travelers, Property Casualty Corp. ................ 27,500 1,155,000
------------
12,903,052
------------
METALS - 0.3%
Birmingham Steel Corp. ............................ 9,900 158,400
Aluminum Co. of America ........................... 700 54,250
Reynolds & Reynolds, Inc. .......................... 13,200 303,600
------------
516,250
------------
MULTI INDUSTRY COMPANIES - 2.1%
CVS Corp. ......................................... 11,900 877,625
National Service Industries ....................... 4,800 259,800
Tyco International Ltd ............................ 56,500 3,079,250
------------
4,216,675
------------
OIL & GAS - 2.9%
BJ Services Co. ................................... 27,000 1,012,500
Halliburton Co. ................................... 31,000 1,705,000
Lyondell Petrochemical ............................ 27,100 890,912
Noble Drilling Corp. (a) .......................... 40,000 1,292,500
Ultramar Diamond Shamrock Corp. ................... 28,200 911,213
------------
5,812,125
------------
PACKAGING & CONTAINERS - 1.5%
Corning, Inc. ...................................... 59,000 2,360,000
Crown Cork & Seal, Inc. ............................ 11,800 614,338
------------
2,974,338
------------
PHARMACEUTICALS - 7.7%
Abbott Laboratories ............................... 14,200 1,038,375
Allergan, Inc. ..................................... 24,400 1,014,125
Allergan Speciality Therapeutics Inc. .............. 970 10,064
Alza Corp. (a) .................................... 24,800 1,188,850
American Home Products Corp. ...................... 14,000 1,303,750
Biogen, Inc. (a) .................................. 9,700 430,437
Forest Laboratories, Inc. (a) ..................... 22,800 825,075
Genzyme Corp. (a) ................................. 10,000 309,375
Merck & Co., Inc. .................................. 29,200 3,518,600
Schering-Plough Corp. ............................. 68,600 5,496,575
------------
15,135,226
------------
PRINTING-COMMERCIAL - 0.3%
R.R. Donnelley & Sons ............................. 12,600 555,187
------------
REFUSE SYSTEMS - 0.9%
USA Waste Services, Inc. (a) ...................... 38,000 1,864,375
------------
TECHNOLOGY - 14.4%
Altera Corp. (a) .................................. 25,600 1,036,800
Automatic Data Processing, Inc. .................... 32,500 2,175,469
Cisco Systems, Inc. ................................ 56,300 4,123,975
Compaq Computer Corp. ............................. 81,600 2,289,900
Dell Computer Corp. ............................... 44,000 3,553,000
EMC Corp. ......................................... 46,700 2,154,038
First Data Corp. .................................. 59,900 2,029,112
General Semiconductor, Inc. (a) ................... 12,825 175,542
Informix Corp. (a) ................................ 13,300 131,545
Intel Corp. ....................................... 14,400 1,163,700
Microsoft Corp. (a) ............................... 14,200 1,279,775
SeagateTechnology, Inc. ............................ 22,200 592,462
Solectron Corp. (a) ............................... 54,000 2,392,875
Xerox Corp. ....................................... 46,300 5,255,050
------------
28,353,243
------------
TELECOMMUNICATION AND BROADCASTING - 2.3%
General Instrument Corp. .......................... 56,500 1,267,719
Liberty Media Group ............................... 63,600 2,110,725
Tellabs Inc. ....................................... 15,500 1,098,562
------------
4,477,006
------------
TIRE & RUBBER - 1.4%
Goodyear Tire & Rubber Co. ........................ 35,600 2,492,000
------------
TRANSPORTATION - 4.0%
Burlington Northern Santa Fe ...................... 40,100 3,969,900
FDX Corp. ......................................... 47,400 3,223,200
Norfolk Southern Corp. ............................ 20,700 692,156
------------
7,885,256
------------
TOTAL COMMON STOCK (Cost $158,146,257) ...................... 191,424,919
------------
SHORT TERM INVESTMENTS - 2.8%
Dreyfus Cash Management Fund - Money Market Fund 5,465,583 5,465,583
------------
TOTAL SHORT TERM INVESTMENTS (Cost $5,465,583) .............. 5,465,583
------------
TOTAL INVESTMENTS - 100.1%
(Cost $163,611,840) ....................................... 196,890,502
OTHER ASSETS IN EXCESS OF LIABILITIES - (0.1)% .............. (192,310)
------------
TOTAL NET ASSETS - 100.0% ................................... $196,698,192
============
(a) Represents non-income producing securities.
(b) Percentages indicated are based on net assets.
See notes to financial statements
<PAGE>
REPUBLIC FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 1998
<TABLE>
<CAPTION>
NEW YORK
TAX-FREE EQUITY
BOND FUND FUND
--------------- ----------------
<S> <C> <C>
ASSETS:
Investments in securities, at value (cost $27,818,458
and $163,611,840, respectively) ...................... $28,721,362 $196,890,502
Cash ................................................... 59 --
Receivable for investments sold ........................ -- 700,046
Receivable for fund shares sold ........................ 35,607 430,601
Interest receivable .................................... 405,019 59,484
Dividends receivable ................................... -- 108,851
Receivable from investment manager ..................... 821 --
Unamortized organization expenses ...................... 10,000 9,762
----------- ------------
Total Assets ............................................. 29,172,868 198,199,246
----------- ------------
LIABILITIES:
Payable for investments purchased ...................... -- 792,453
Distributions payable .................................. 53,674 --
Cash ................................................... -- 276,090
Payable for fund shares redeemed ....................... -- 120,999
Advisory fees payable .................................. -- 188,969
Audit fees payable ..................................... 6,000 6,000
Investment manager fees payable ........................ -- 28,292
Transfer agent fees payable ............................ 7,500 7,500
Fund accounting fees payable ........................... 7,500 7,500
Custodian fees payable ................................. 3,424 9,101
Shareholder service fees payable ....................... 5,879 12,017
Administration fees payable ............................ 2,547 16,888
Legal expense payable .................................. 5,694 16,916
Other accrued expenses ................................. 37,158 18,329
----------- ------------
Total Liabilities ........................................ 129,376 1,501,054
----------- ------------
NET ASSETS ............................................... $29,043,492 $196,698,192
=========== ============
COMPOSITION OF NET ASSETS:
Paid-in capital ........................................ $28,033,714 $158,976,912
Undistributed net investment income .................... 102 60,265
Accumulated net realized gains on investment
transactions ......................................... 105,567 4,382,353
Net unrealized appreciation on investments ............. 904,109 33,278,662
----------- ------------
NET ASSETS, APRIL 30, 1998 ............................... $29,043,492 $196,698,192
=========== ============
NET ASSETS
Investor Shares ........................................ $20,862,562 $ 19,294,876
Class B Shares ......................................... 84,695 495,243
Adviser Shares ......................................... 8,096,235 176,908,073
----------- ------------
Total .................................................... $29,043,492 $196,698,192
=========== ============
Shares Outstanding (par value $0.001,
unlimited number of shares authorized)
Investor Shares ........................................ 1,965,440 1,120,729
Class B Shares ......................................... 7,985 28,784
Adviser Shares ......................................... 762,830 10,273,284
----------- ------------
Total .................................................... 2,736,255 11,422,797
=========== ============
INVESTOR SHARES
Net asset value per share ................................ $10.61 $17.22
=========== ============
Maximum offering price per share (net asset value plus a
sales charge of 2.75% and 3.50% of each Funds offering
price respectively) .................................... $10.91 $17.84
=========== ============
Minimum redemption price per share ....................... $10.61 $17.22
=========== ============
CLASS B SHARES
Net asset value per share ................................ $10.61 $17.21
=========== ============
Maximum offering price per share ......................... $10.61 $17.21
=========== ============
Minimum redemption price per share (net asset value less
a charge of 3.00% and 4.00% of each Fund's net asset value
per share) ............................................. $10.29 $16.52
=========== ============
ADVISER SHARES
Net asset value per share ................................ $10.61 $17.22
=========== ============
Maximum offering price per share ......................... $10.61 $17.22
=========== ============
Minimum redemption price per share ....................... $10.61 $17.22
=========== ============
</TABLE>
See notes to financial statements.
<PAGE>
REPUBLIC FUNDS
STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED APRIL 30, 1998
<TABLE>
<CAPTION>
NEW YORK
TAX-FREE EQUITY
BOND FUND FUND
--------- ----------
<S> <C> <C>
INVESTMENT INCOME:
Interest income .......................................... $787,534 $ 150,233
-------- ----------
Dividend income .......................................... -- 904,648
-------- ----------
787,534 1,054,881
-------- ----------
EXPENSES:
Advisory fees and investment management fees ............. 35,953 380,749
Administration fees ...................................... 14,796 77,240
Shareholder service fees (Class A and Class B shares) .... 25,913 19,898
Distribution fees (Class B shares) ....................... 226 410
Fund accounting fees ..................................... 22,263 30,438
Custodian fees and expenses .............................. 7,516 40,897
Audit fees ............................................... 6,000 6,500
Registration and filing fees ............................. 6,154 12,357
Amortization of organization expenses .................... 2,896 2,534
Trustees' fees ........................................... 362 724
Transfer agent fees....................................... 22,263 22,263
Reports to shareholders .................................. 7,602 23,165
Legal fees ............................................... 3,439 8,869
Other expenses ........................................... 23,028 15,896
-------- ----------
Total expenses ........................................... 178,411 641,940
Less: Voluntary fee reductions and reimbursement
of expenses ............................................ (45,657) --
-------- ----------
Total net expenses ....................................... 132,754 641,940
-------- ----------
Net Investment Income ...................................... 654,780 412,941
-------- ----------
REALIZED/UNREALIZED GAINS/(LOSSES) ON INVESTMENTS:
Net realized gains on investment transactions ............ 105,577 4,451,963
Net change in unrealized appreciation/(depreciation) on
investments ............................................ (48,477) 26,434,357
-------- ----------
Net realized/unrealized gains on investments ............. 57,100 30,886,320
-------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS ............................................... $711,880 $31,299,261
======== ===========
</TABLE>
See notes to financial statements.
<PAGE>
REPUBLIC NEW YORK TAX-FREE BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
APRIL 30, 1998 OCTOBER 31,
(UNAUDITED) 1997
---------- ------------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income ............................... $ 654,780 $ 1,009,588
Net realized gains on investment transactions ....... 105,577 115,458
Net change in unrealized appreciation on investments (48,477) 746,912
---------- ------------
Change in net assets resulting from operations ........ 711,880 1,871,958
---------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Investor Shares ................................... (451,412) (623,143)
Class B Shares .................................... (1,148) --
Adviser Shares .................................... (202,118) (386,445)
Net realized gains:
Investor Shares ................................... (81,787) (14,151)
Adviser Shares .................................... (33,681) (12,589)
---------- ------------
Change in net assets from shareholder distributions ... (770,146) (1,036,328)
---------- ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sales of shares ....................... 5,923,847 18,908,256
Dividends reinvested ................................ 601,694 681,105
Payments for shares redeemed ........................ (7,118,770) (5,315,439)
---------- ------------
Change in net assets from capital share transactions .. (593,229) 14,273,922
---------- ------------
CHANGE IN NET ASSETS .................................. (651,495) 15,109,552
NET ASSETS
Beginning of period ................................. 29,694,987 14,585,435
---------- ------------
End of period ....................................... $29,043,492 $ 29,694,987
=========== ============
</TABLE>
See notes to financial statements.
<PAGE>
REPUBLIC EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
APRIL 30, 1998 OCTOBER 31,
(UNAUDITED) 1997
------------ -----------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income ............................... $ 412,941 $ 392,490
Net realized gains on investment transactions ....... 4,451,963 8,543,383
Net change in unrealized appreciation on investments 26,434,357 3,163,098
------------ -----------
Change in net assets resulting from operations ........ 31,299,261 12,098,971
------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Investor Shares ..................................... (18,602) (44,001)
Class B Shares ...................................... (261) --
Adviser Shares ...................................... (337,295) (418,175)
Net realized gains:
Investor Shares ..................................... (745,988) (80,739)
Class B Shares ...................................... -- --
Adviser Shares ...................................... (7,858,305) (609,926)
------------ -----------
Change in net assets from shareholder distributions ... (8,960,451) (1,152,841)
------------ -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sales of shares ....................... 115,607,329 31,671,641
Dividends reinvested ................................ 8,830,299 732,663
Cost of shares redeemed ............................. (25,501,545) (5,000,592)
------------ -----------
Change in net assets from capital share transactions .. 98,936,083 27,403,712
------------ -----------
CHANGE IN NET ASSETS .................................. 121,274,893 38,349,842
NET ASSETS:
Beginning of period ................................. 75,423,299 37,073,457
------------ -----------
End of period ....................................... $196,698,192 $75,423,299
============ ===========
</TABLE>
See notes to financial statements.
<PAGE>
REPUBLIC ADVISOR FUNDS TRUST
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 1998
<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 ........ $70,825,874 $150,077,885 $145,523,625
Receivable for fund shares sold ............ 8,500 37,000 184,000
Receivable from Investment Manager ......... -- -- 16,296
Unamortized organization expenses .......... 6,321 1,204 12,044
Tax reclaim receivable ..................... -- 98,631 --
----------- ------------ ------------
Total Assets ................................. 70,840,695 150,214,720 145,735,965
----------- ------------ ------------
LIABILITIES:
Distributions payable ...................... 172,000 -- --
Registration and filing fees payable ....... 5,861 2,090 4,436
Reports to shareholders payable ............ 3,035 2,628 2,430
Administration fees payable ................ 2,678 6,129 5,840
Audit fee payable .......................... 7,509 7,509 7,515
Transfer agent fees payable ................ 5,853 6,088 5,786
Fund accounting fees payable ............... 1,511 1,511 1,511
Other accrued expenses ..................... 3,718 16,791 12,852
----------- ------------ ------------
Total Liabilities ............................ 202,165 42,746 40,370
----------- ------------ ------------
NET ASSETS ................................... $70,638,530 $150,171,974 $145,695,595
=========== ============ ============
Shares Outstanding (par value $0.001,
unlimited number of shares authorized) ..... 6,513,671 10,055,249 10,435,856
=========== ============ ============
NET ASSET VALUE PER SHARE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE ................ $10.84 $14.93 $13.96
====== ====== ======
COMPOSITION OF NET ASSETS:
Paid-in capital ............................ $68,908,222 $113,861,811 $107,920,032
Undistributed net investment income (loss) . (5,576) (137,858) (452,853)
Accumulated net realized gains on investment
and foreign currency transactions ........ 833,896 8,043,199 8,532,085
Net unrealized appreciation on investments
and foreign currency transactions ........ 901,988 28,404,822 29,696,331
----------- ------------ ------------
NET ASSETS, APRIL 30, 1998 ................... $70,638,530 $150,171,974 $145,695,595
=========== ============ ============
See notes to financial statements.
</TABLE>
<PAGE>
REPUBLIC ADVISOR FUNDS TRUST
STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED APRIL 30, 1998
<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 ............................ $2,501,891 $ 126,421 $ 199,102
Dividend income (net of foreign withholding
tax of $0, $162,301 and $534, respectively) 32,506 1,345,333 77,453
---------- ---------- ---------
2,534,397 1,471,754 276,555
Allocated Net Expenses from respective
Portfolio ................................ (250,254) (677,356) (666,423)
---------- ---------- ---------
Net Investment Income (Loss) from Republic
Fixed Income Portfolio, Republic International
Equity Portfolio and Republic Small Cap Equity
Portfolio, respectively .................... 2,284,143 794,398 (389,868)
---------- ---------- ---------
EXPENSES:
Administration fees ........................ 18,843 34,491 33,273
Reports to shareholders .................... 3,439 7,240 6,697
Registration fees .......................... 9,231 15,144 8,145
Audit fees ................................. 4,525 4,525 4,525
Amortization of organization expenses ...... 2,353 518 1,629
Transfer agent fees ........................ 12,308 12,308 12,308
Fund accounting fees ....................... 4,525 4,539 4,525
Legal fees ................................. 7,059 14,842 13,937
Other expenses ............................. 2,867 6,882 5,789
---------- ---------- ---------
Total expenses ......................... 65,150 100,489 90,828
Less: Reimbursement of expenses ........ -- (6,456) (27,843)
---------- ---------- ---------
Total net expenses ..................... 65,150 94,033 62,985
---------- ---------- ---------
Net Investment Income (Loss) ................. 2,218,993 700,365 (452,853)
---------- ---------- ---------
See notes to financial statements.
</TABLE>
<PAGE>
REPUBLIC ADVISOR FUNDS TRUST
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
FOR THE SIX MONTHS ENDED APRIL 30, 1998
<TABLE>
<CAPTION>
FIXED INTERNATIONAL SMALL CAP
INCOME EQUITY EQUITY
FUND FUND FUND
---------- ---------- ----------
<S> <C> <C> <C>
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:
Investment transactions .................. $ 975,584 $ 6,992,273 $ 9,115,581
Foreign currency transactions ............ 24,515 1,055,969 --
Net change in unrealized appreciation
(depreciation) on:
Investments .............................. (587,778) 13,179,659 12,267,899
Foreign currency transactions ............ (72,418) 40,608 --
---------- ----------- -----------
Net realized/unrealized gains on investments
from Republic Fixed Income Portfolio,
Republic International Equity Portfolio and
Republic Small Cap Equity Portfolio,
respectively: ............................ 339,903 21,268,509 21,383,480
---------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS ............................... $2,558,896 $21,968,874 $20,930,627
========== =========== ===========
See notes to financial statements.
</TABLE>
<PAGE>
REPUBLIC FIXED INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED FOR THE
APRIL 30, YEAR ENDED
1998 OCTOBER 31,
(UNAUDITED) 1997
----------- -----------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income ................................ $ 2,218,993 $ 3,503,280
Net realized gains on investment and foreign currency
transactions from Republic Fixed Income Portfolio .. 1,000,099 957,420
Net change in unrealized appreciation on investments
and foreign currency transactions from Republic
Fixed Income Portfolio ............................. (660,196) 928,830
----------- -----------
Change in net assets resulting from operations ......... 2,558,896 5,389,530
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ................................ (2,218,994) (3,739,062)
Net realized gains from investment transactions ...... (908,474) (54,690)
----------- -----------
Change in net assets from shareholder distributions .... (3,127,468) (3,793,752)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares ......................... 8,020,424 28,743,298
Dividends reinvested ................................. 2,938,293 3,133,766
Payments for shares redeemed ......................... (11,437,785) (4,210,585)
----------- -----------
Change in net assets from capital share transactions ... (479,068) 27,666,479
----------- -----------
CHANGE IN NET ASSETS ................................... (1,047,640) 29,262,257
NET ASSETS:
Beginning of period .................................. 71,686,170 42,423,913
----------- -----------
End of period (including undistributed net investment
(loss) of $5,576 and $5,575, respectively) ......... $70,638,530 $71,686,170
=========== ===========
ANALYSIS OF FUND SHARE TRANSACTIONS:
Beginning of period .................................. 6,561,974 3,976,847
Shares sold .......................................... 735,561 2,685,217
Shares issued in connection with reinvestment
of distributions ................................... 270,629 292,064
Shares redeemed ...................................... (1,054,493) (392,154)
----------- -----------
End of period ........................................ 6,513,671 6,561,974
=========== ===========
See notes to financial statements.
</TABLE>
<PAGE>
REPUBLIC INTERNATIONAL EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED FOR THE
APRIL 30, YEAR ENDED
1998 OCTOBER 31,
(UNAUDITED) 1997
------------ ------------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income ................................ $ 700,365 $ 1,142,763
Net realized gains on investment and foreign
currency transactions from Republic International
Equity Portfolio .................................. 8,048,242 7,621,294
Net change in unrealized appreciation on investments
and foreign currency transactions from Republic
International Equity Portfolio ..................... 13,220,267 8,098,900
------------ ------------
Change in net assets resulting from operations ......... 21,968,874 16,862,957
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ................................ (2,744,205) (935,863)
Net realized gains from investment transactions ...... (6,456,538) (1,289,883)
------------ ------------
Change in net assets from shareholder distributions .... (9,200,743) (2,225,746)
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares ......................... 9,619,912 41,976,406
Dividends reinvested ................................. 8,860,792 2,161,250
Payments for shares redeemed ......................... (14,000,410) (22,828,487)
------------ ------------
Change in net assets from capital share transactions ... 4,480,294 21,309,169
------------ ------------
CHANGE IN NET ASSETS ................................... 17,248,425 35,946,380
NET ASSETS:
Beginning of period .................................. 132,923,549 96,977,169
------------ ------------
End of period (including undistributed net
investment (loss) income ($137,858) and
$1,905,982, respectively) .......................... $150,171,974 $132,923,549
============ ============
ANALYSIS OF FUND SHARE TRANSACTIONS:
Beginning of period .................................. 9,659,005 8,046,448
Shares sold .......................................... 688,171 3,083,737
Shares issued in connection with reinvestment
of distributions ................................... 697,029 174,518
Shares redeemed ...................................... (988,956) (1,645,698)
------------ ------------
End of period ........................................ 10,055,249 9,659,005
============ ============
See notes to financial statements.
</TABLE>
<PAGE>
REPUBLIC SMALL CAP EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED FOR THE
APRIL 30, YEAR ENDED
1998 OCTOBER 31,
(UNAUDITED) 1997
------------ ------------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment loss .................................. $ (452,853) $ (570,314)
Net realized gains on investment transactions from
Republic Small Cap Equity Portfolio ................ 9,115,581 13,603,766
Net change in unrealized appreciation on investments
from Republic Small Cap Equity Portfolio ........... 12,267,899 15,282,655
------------ ------------
Change in net assets resulting from operations ......... 20,930,627 28,316,107
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gains from investment transactions ...... (13,273,574) (563,867)
------------ ------------
Change in net assets from shareholder distributions .... (13,273,574) (563,867)
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares ......................... 8,780,878 32,346,683
Dividends reinvested ................................. 13,274,173 563,867
Payments for shares redeemed ......................... (22,012,476) (15,508,850)
------------ ------------
Change in net assets from capital share transactions ... 42,575 17,401,700
------------ ------------
CHANGE IN NET ASSETS ................................... 7,699,628 45,153,940
NET ASSETS:
Beginning of period .................................. 137,995,967 92,842,027
------------ ------------
End of period (including undistributed net
investment (loss) of ($452,853) and $0,
respectively) ...................................... $145,695,595 $137,995,967
============ ============
ANALYSIS OF FUND SHARE TRANSACTIONS:
Beginning of period .................................. 10,263,905 8,732,842
Shares sold .......................................... 684,766 2,804,428
Shares issued in connection with reinvestment
of distributions ................................... 1,162,362 53,145
Shares redeemed ...................................... (1,675,177) (1,326,510)
------------ ------------
End of period ........................................ 10,435,856 10,263,905
============ ============
See notes to financial statements.
</TABLE>
<PAGE>
REPUBLIC FUNDS
REPUBLIC ADVISOR FUNDS TRUST
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 1998
(UNAUDITED)
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
three classes of shares, Class A shares (formerly designated Class C shares),
("Investor Shares"), Class B shares ("Class B 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 intermediate 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 April 30, 1998, the Advisor Funds held
proportionate interests in the corresponding Portfolios in the following
amounts:
Fixed Income Fund ............................................ 52.69%
International Equity Fund .................................... 60.65%
Small Cap Equity Fund ........................................ 60.30%
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.
BISYS Fund Services, Inc. ("BISYS" or the "Sponsor"), serves as
administrator, distributor and sponsor to the Trust Funds and Advisor Funds
and as transfer agent to the Trust Funds, for Class B shares.
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.
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 of premium or discount. 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.
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, 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
realized gains. To the extent they exceed net investment income and net
realized gains for tax purposes, they are reported as distributions of
capital.
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 1940 Act ("Act"
or "Investment Company Act of 1940").
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 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 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 period ended April 30, 1998 the Manager waived $31,762 of
the fees on the New York Tax-Free Bond Fund.
SUB-ADVISORY:
Alliance and Brinson continuously manage the investment portfolio of the
Equity Fund subject to the supervision of the Investment Manager, pursuant
to separate Sub-Advisory Agreements with the Manager. For their services,
Alliance and Brinson were paid fees by the Equity Fund, computed daily and
based on the Equity Fund's average daily net assets allocated to such Equity
Sub-Advisers 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 Alliance and
Brinson each received $122,789.
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 period ended April 30, 1998 the administrative services
fees were:
New York Tax-Free Bond Fund ................................. $14,796
Equity Fund .................................................. 77,240
Fixed Income Fund ............................................ 18,843
International Equity Fund .................................... 34,491
Small Cap Equity Fund ........................................ 33,273
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 New York Tax-Free Bond Fund and Equity Fund,
IBT receives fees payable monthly equal on an annual basis to $45,000 and
$60,000 respectively, 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.
TRANSFER AGENCY
Pursuant to a Transfer Agent Agreement, Investors Bank & Trust Company
("IBT") serves as a transfer agent for the Fund's Investors Shares and
Advisers Shares. BISYS serves as transfer agent for the Funds Class B
Shares. For its services to the Fund IBT receives fees payable monthly equal
on an annual basis to $25,000 from each Fund and BISYS receives fees
payuable monthly equal on an annual basis to $5,000.
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 and Class B
Shares at a rate not to exceed 0.25% and 0.75 % of the average daily net
assets of Class A Shares and Class B Shares of the Funds, respectively.
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% and 1.00% per annum of each Fund's average daily net assets of
Investor Shares and Class B Shares, respectively. During the period ended
April 30, 1998, shareholder servicing fees were as follows:
New York Tax-Free Bond Fund ................................. $25,913
Equity Fund .................................................. 19,898
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 period
ended April 30, 1998 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 ................. $32,320
New York Tax-Free Bond Fund - Class B Shares .................. 183
New York Tax-Free Bond Fund - Advisor Shares .................. 13,154
Equity Fund - Investor Shares ................................. 0
Equity Fund - Adviser Shares .................................. 0
Fixed Income Fund ............................................. 0
International Equity Fund ..................................... 6,456
Small Cap Equity Fund ......................................... 27,843
4. INVESTMENT TRANSACTIONS. Purchases of and proceeds from sales and maturities
of investments, excluding short-term securities, for the Trust Funds for the
period ended April 30, 1998 amounted to:
PURCHASES PROCEEDS
--------- --------
New York Tax-Free Bond Fund ............ $ 18,290,000 $18,153,522
Equity Fund ............................ 116,242,120 26,628,537
During the period ended April 30, 1998, additions and reductions in each
Advisor Fund's investment in their corresponding Portfolio amounted to:
ADDITIONS REDUCTIONS
--------- ----------
Fixed Income Fund ...................... $8,023,344 $11,789,821
International Equity Fund .............. 9,631,997 14,502,766
Small Cap Equity Fund .................. 8,616,519 22,100,947
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 period ended April 30, 1998:
<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 ................... $ 5,038,004 $ 525,947 $ (5,456,394) $ 107,557
New York Tax-Free Bond Fund -
Class B Shares .................... 191,457 1,074 (105,064) 87,467
New York Tax-Free Bond Fund -
Adviser Shares .................... 694,386 74,673 (1,557,312) 788,253
Equity Fund - Investor Shares ...... 18,644,809 764,265 (14,825,089) 4,583,985
Equity Fund - Class B Shares ....... 481,171 261 -- 481,432
Equity Fund - Adviser Shares ....... 96,481,348 8,065,774 (10,676,456) 93,870,666
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:
<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 (a) ................ 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 (a) ... 22,572,866 617,913 (3,149,676) 20,041,103
7. ANALYSIS OF FUND SHARE TRANSACTIONS FOR THE PERIOD ENDED APRIL 30, 1998
<CAPTION>
SHARES ISSUED
IN CONNECTION
BEGINNING SHARES WITH SHARES END OF
OF PERIOD SOLD REINVESTMENT REDEEMED PERIOD
--------- --------- ------------- -------- ----------
<S> <C> <C> <C> <C> <C>
New York Tax-Free Bond
Fund -
Investor Shares ........ 1,953,662 469,176 48,924 (506,322) 1,965,440
New York Tax-Free Bond
Fund -
Class B Shares ......... -- 17,815 100 (9,930) 7,985
New York Tax-Free Bond
Fund -
Adviser Shares ......... 836,354 64,531 6,954 (145,009) 762,830
Equity Fund -
Investor Shares ........ 824,033 1,233,720 52,541 (989,565) 1,120,729
Equity Fund -
Class B Shares ......... -- 28,768 16 -- 28,784
Equity Fund -
Adviser Shares ......... 4,202,203 6,205,743 554,682 (689,344) 10,273,285
ANALYSIS OF FUND SHARE TRANSACTIONS FOR THE PERIOD ENDED APRIL 30, 1997
<CAPTION>
SHARES ISSUED
IN CONNECTION
BEGINNING SHARES WITH SHARES END OF
OF YEAR SOLD REINVESTMENT REDEEMED YEAR
--------- --------- ------------- -------- ----------
<S> <C> <C> <C> <C> <C>
New York Tax-Free Bond
Fund -
Investor Shares ........ 616,806 1,716,846 56,958 (436,948) 1,953,662
New York Tax-Free Bond
Fund -
Adviser Shares ......... 799,293 103,972 8,468 (75,379) 836,354
Equity Fund -
Investor Shares ........ 328,468 623,714 9,004 (137,153) 824,033
Equity Fund -
Adviser Shares ......... 2,779,322 1,601,585 49,432 (228,136) 4,202,203
</TABLE>
<PAGE>
REPUBLIC NEW YORK TAX FREE BOND FUND
FINANCIAL HIGHLIGHTS - INVESTOR SHARES
<TABLE>
<CAPTION>
FOR THE FOR THE PERIOD
SIX MONTHS MAY 1, 1995
ENDED FOR THE FOR THE (COMMENCEMENT
APRIL 30, YEAR ENDED YEAR ENDED OF OFFERING) TO
1998 OCTOBER 31, OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1997 1996 1995
----------- ----------- ---------- ---------------
<S> <C> <C> <C> <C>
NET ASSET VALUE PER SHARE,
BEGINNING OF PERIOD.......... $10.64 $10.30 $10.38 $10.00
------ ------ ------ ------
Income from investment operations:
Net investment income ....... 0.22 0.45 0.54 0.25
Net realized and unrealized
gains (losses) on investment
transactions .............. 0.01 0.36 (0.01) 0.38
------ ------ ------ ------
Total income from investment
operations .................. 0.23 0.81 0.53 0.63
------ ------ ------ ------
Less dividends and distributions:
Dividends to shareholders
from net investment income (0.22) (0.45) (0.54) (0.25)
Distributions to shareholders
from net realized gains ... (0.04) (0.02) (0.07) --
------ ------ ------ ------
Total dividends and
distributions ............... (0.26) (0.47) (0.61) (0.25)
------ ------ ------ ------
Net change in net asset value
per share ................... (0.03) 0.34 (0.08) 0.38
------ ------ ------ ------
NET ASSET VALUE PER SHARE, END
OF PERIOD ................... $10.61 $10.64 $10.30 $10.38
====== ====== ====== ======
Total return (e) .............. 2.26%(c) 8.22% 4.75% 6.39%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of year (000) $20,863 $20,794 $6,353 $6,908
Ratio of expenses to average
net assets ................ 0.95%(b) 0.92% 0.58% 0.50%(b)
Ratio of net investment
income to average net
assets .................... 4.42%(b) 4.46% 4.78% 4.91%(b)
Ratio of expenses to average
net assets (a) ............ 1.17%(b) 1.55% 2.21% 2.40%(b)
Ratio of net investment
income to average net
assets (a) ................ 4.20%(b) 3.83% 3.15% 3.10%(b)
Portfolio turnover (d) ...... 61.60% 163.46% 178.11% 130.00%
(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) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole, without distinguishing between the
classes of shares issued.
(e) The total return is calculated excluding the sales charge of 2.75% which applies for purchases of Investor Shares.
</TABLE>
See notes to financial statements.
<PAGE>
REPUBLIC NEW YORK TAX FREE BOND FUND
FINANCIAL HIGHLIGHTS - CLASS B SHARES
FOR THE
PERIOD
JANUARY 6, 1998
(DATE OF INITIAL
OFFERING) TO
APRIL 30, 1998
(UNAUDITED)
---------------
NET ASSET VALUE PER SHARE, BEGINNING OF PERIOD ............. $10.81
------
Income from investment operations:
Net investment income .................................. 0.09
Net realized and unrealized gains (losses) on investment
transactions (0.20)
------
Total income from investment operations .................... (0.11)
------
Less dividends and distributions:
Dividends to shareholders from net investment income ... (0.09)
Distributions to shareholders from net realized gains .. --
------
Total dividends and distributions .......................... (0.09)
------
Net change in net asset value per share .................... (0.20)
------
NET ASSET VALUE PER SHARE, END OF PERIOD ................... $10.61
======
Total return (e) ........................................... (0.35)%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of period (000's) ................... $ 85
Ratio of expenses to average net assets ................ 1.70%(b)
Ratio of net investment income to average net assets ... 3.67%(b)
Ratio of expenses to average net assets (a) ............ 1.95%(b)
Ratio of net investment income to average net assets (a) 3.40%(b)
Portfolio turnover (d) ................................. 61.60%
(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) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole,
without distinguishing between the classes of shares issued.
(e) The total return is calculated excluding the contingent deferred sales
charge which applies to redemptions of Class B Shares.
See notes to financial statements.
<PAGE>
REPUBLIC NEW YORK TAX FREE BOND FUND
FINANCIAL HIGHLIGHTS - ADVISOR SHARES
<TABLE>
<CAPTION>
FOR THE FOR THE PERIOD
SIX MONTHS FOR THE JULY 1, 1996
ENDED YEAR (DATE OF INITIAL
APRIL 30 ENDED OFFERING) TO
1998 OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1997 1996
----------- ----------- ----------------
<S> <C> <C> <C>
NET ASSET VALUE PER SHARE, BEGINNING OF PERIOD $10.64 $10.30 $10.18
------ ------ ------
Income from investment operations:
Net investment income ....................... 0.23 0.46 0.16
Net realized and unrealized gains on
investment transactions ................... 0.01 0.36 0.12
------ ------ ------
Total income from investment operations ....... 0.24 0.82 0.28
------ ------ ------
Less dividends and distributions:
Dividends to shareholders from net
investment income ......................... (0.23) (0.46) (0.16)
Distributions to shareholders from net
realized gains ............................ (0.04) (0.02) --
------ ------ ------
Total dividends and distributions ............. (0.27) (0.48) (0.16)
------ ------ ------
Net change in net asset value per share ....... (0.03) 0.34 0.12
------ ------ ------
NET ASSET VALUE PER SHARE, END OF PERIOD ...... $10.61 $10.64 $10.30
====== ====== ======
Total return .................................. 2.35% 8.38% 5.02%(e)
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of period (000's) ........ $8,096 $8,901 $8,233
Ratio of expenses to average net assets ..... 0.77%(b) 0.78% 0.60%(b)
Ratio of net investment income to average net
assets .................................... 4.60%(b) 4.66% 4.78%(b)
Ratio of expenses to average net assets (a) 0.89%(b) 1.27% 2.26%(b)
Ratio of net investment income to average net
assets (a) ................................ 4.48%(b) 4.17% 3.12%(b)
Portfolio turnover (d) ...................... 61.60% 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) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole, without distinguishing between
the classes of shares issued.
(e) Represents total return for Investor Shares from November 1, 1995 to June 30, 1996 plus the total return
for Advisor Shares for the period from July 1, 1996 to October 31, 1996.
</TABLE>
See notes to financial statements.
<PAGE>
REPUBLIC EQUITY FUND
FINANCIAL HIGHLIGHTS - INVESTOR SHARES
<TABLE>
<CAPTION>
FOR THE FOR THE PERIOD
SIX MONTHS AUGUST 1, 1995
ENDED FOR THE FOR THE (COMMENCEMENT
APRIL 30, YEAR ENDED YEAR ENDED OF OPERATIONS) TO
1998 OCTOBER 31, OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1997 1996 1995
----------- ----------- ----------- -----------------
<S> <C> <C> <C> <C>
NET ASSET VALUE PER SHARE,
BEGINNING OF PERIOD.......... $15.00 $11.93 $10.24 $10.00
------ ------ ------ ------
Income from investment operations:
Net investment income ....... 0.02 0.07 0.19 0.04
Net realized and unrealized
gains on investment
transactions .............. 3.07 3.32 1.67 0.24
------ ------ ------ ------
Total income from investment
operations .................. 3.09 3.39 1.86 0.28
------ ------ ------ ------
Less dividends and distributions:
Dividends to shareholders
from net investment income (0.02) (0.10) (0.17) (0.04)
Distributions to shareholders
from net realized gains ... (0.85) (0.22) -- --
------ ------ ------ ------
Total dividends and distributions (0.87) (0.32) (0.17) (0.04)
------ ------ ------ ------
Net change in net asset value
per share ................... 2.22 3.07 1.69 0.24
------ ------ ------ ------
NET ASSET VALUE PER SHARE, END
OF PERIOD ................... $17.22 $15.00 $11.93 $10.24
====== ====== ====== ======
Total return (f) .............. 21.66%(c) 28.92% 18.30% 2.75%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of period
(000's) ................... $19,295 $12,363 $3,918 $22,092
Ratio of expenses to average
net assets ................ 1.05%(b) 1.21% 1.28% 1.47%(b)
Ratio of net investment
income to average net
assets .................... 0.31%(b) 0.48% 1.83% 1.59%(b)
Ratio of expenses to average
net assets (a) ............ 1.05%(b) 1.28% 1.59% 2.44%(b)
Ratio of net investment
income to average net
assets (a) ................ 0.31%(b) 0.41% 1.51% 0.62%(b)
Portfolio turnover (d) ...... 16.70% 99.02% 86.18% 2.00%(b)
Average commission (d)(e) ... $0.0451 $0.0438 $0.0599 --
(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) 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 total number of shares
purchased and sold by the Fund for which commissions were charged.
(f) The total return is calculated excluding the sales charge of 3.50% which applies to purchases of Investor shares.
</TABLE>
See notes to financial statements.
<PAGE>
REPUBLIC EQUITY FUND
FINANCIAL HIGHLIGHTS - CLASS B SHARES
FOR THE
PERIOD
JANUARY 6, 1998
(DATE OF INITIAL
OFFERING) TO
APRIL 30, 1998
(UNAUDITED)
---------------
NET ASSET VALUE PER SHARE, BEGINNING OF PERIOD ............. $14.88
------
Income from investment operations:
Net investment income .................................. (0.01)
Net realized and unrealized gains on investment
transactions ......................................... 2.36
------
Total income from investment operations .................... 2.35
------
Less dividends and distributions:
Dividends to shareholders from net investment income ... (0.02)
Distributions to shareholders from net realized gains .. 0.00
------
Total dividends and distributions .......................... (0.02)
------
Net change in net asset value per share .................... 2.33
------
NET ASSET VALUE PER SHARE, END OF PERIOD ................... $17.21
======
Total return (f) ........................................... 14.24%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of year (000's) ..................... $ 495
Ratio of expenses to average net assets ................ 1.80%(b)
Ratio of net investment income to average net assets ... 0.44%(b)
Ratio of expenses to average net assets (a) ............ 1.80%(b)
Ratio of net investment income to average net assets (a) 0.44%(b)
Portfolio turnover (d) ................................. 16.70%
Average commission (d)(e) .............................. $0.0451
(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 total number of shares purchased and sold by the Fund for which
commissions were charged.
(f) The total return is calculated excluding the contingent deferred sales
charge which applies to redemptions of Class B Shares.
See notes to financial statements.
<PAGE>
REPUBLIC EQUITY FUND
FINANCIAL HIGHLIGHTS - ADVISOR SHARES
<TABLE>
<CAPTION>
FOR THE FOR THE PERIOD
SIX MONTHS FOR THE JULY 1, 1996
ENDED YEAR (DATE OF INITIAL
APRIL 30 ENDED OFFERING) TO
1998 OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1997 1996
---------- ----------- ----------------
<S> <C> <C> <C>
NET ASSET VALUE PER SHARE, BEGINNING OF YEAR .. $15.01 $11.93 $11.49
------ ------ ------
Income from investment operations:
Net investment income ....................... 0.05 0.10 0.08
Net realized and unrealized gains on
investment transactions ................... 2.28 3.33 0.42
------ ------ ------
Total income from investment operations ....... 2.33 3.43 0.50
------ ------ ------
Less dividends and distributions:
Dividends to shareholders from net
investment income ......................... (0.03) (0.13) (0.06)
Distributions to shareholders from net
realized gains ............................ (0.09) (0.22) --
------ ------ ------
Total dividends and distributions ............. (0.12) (0.35) (0.06)
------ ------ ------
Net change in net asset value per share ....... 2.21 3.08 0.44
------ ------ ------
NET ASSET VALUE PER SHARE, END OF YEAR ........ $17.21 $15.01 $11.93
====== ====== ======
Total return .................................. 21.70%(c) 29.28% 4.72%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of year (000's) .......... $176,908 $63,060 $33,155
Ratio of expenses to average net assets ..... 0.80%(b) 0.96% 0.66%(b)
Ratio of net investment income to average net
assets .................................... 0.56%(b) 0.77% 1.93%(b)
Ratio of expenses to average net assets (a) 0.80%(b) 1.03% 0.97%(b)
Ratio of net investment income to average net
assets (a) ................................ 0.56%(b) 0.70% 1.62%(b)
Portfolio turnover (d) ...................... 16.70% 99.02% 86.18%
Average commission (d)(e) ................... $0.0451 $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.
</TABLE>
See notes to financial statements.
<PAGE>
REPUBLIC FIXED INCOME FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE FOR THE PERIOD
SIX MONTHS JANUARY 9, 1995
ENDED FOR THE FOR THE (COMMENCEMENT
APRIL 30, YEAR ENDED YEAR ENDED OF OPERATIONS) TO
1998 OCTOBER 31, OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1997 1996 1995
----------- ---------- ----------- -----------------
<S> <C> <C> <C> <C>
NET ASSET VALUE PER SHARE,
BEGINNING OF PERIOD ............... $10.92 $10.67 $10.96 $10.00
------ ------ ------ ------
Income from investment operations:
Net investment income ............. 0.34 0.59 0.59 0.46
Net realized and unrealized gains
(losses) on investment and
foreign currency transactions ... 0.05 0.31 0.08 0.96
------ ------ ------ ------
Total income from investment
operations ........................ 0.39 0.90 0.67 1.42
------ ------ ------ ------
Less dividends and distributions:
Dividends to shareholders
from net investment income ...... (0.34) (0.64) (0.59) (0.46)
Distributions to shareholders
from net realized gains ......... (0.13) (0.01) (0.37) --
------ ------ ------ ------
Total dividends and distributions ... (0.47) (0.65) (0.96) (0.46)
------ ------ ------ ------
Net change in net asset value
per share ......................... (0.08) 0.25 (0.29) 0.96
------ ------ ------ ------
NET ASSET VALUE PER SHARE, END
OF PERIOD ......................... $10.84 $10.92 $10.67 $10.96
====== ====== ====== ======
Total return ........................ 3.41% 9.14% 6.51% 14.37%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000) . $70,639 $71,686 $42,424 $26,128
Ratio of expenses to average
net assets ...................... 0.83%(b) 0.81% 0.83% 0.91%(b)
Ratio of net investment income to
average net assets .............. 5.85%(b) 5.78% 5.51% 5.63%(b)
Ratio of expenses to average net
assets (a) ...................... 0.83%(b) 0.83% 1.06% 1.72%(b)
Ratio of net investment income to
average net assets (a) .......... 5.85%(b) 5.76% 5.28% 4.82%(b)
(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) Not annualized.
See notes to financial statements.
</TABLE>
<PAGE>
REPUBLIC INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE FOR THE PERIOD
SIX MONTHS JANUARY 9, 1995
ENDED FOR THE FOR THE (COMMENCEMENT
APRIL 30, YEAR ENDED YEAR ENDED OF OPERATIONS) TO
1998 OCTOBER 31, OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1997 1996 1995
----------- ---------- ----------- -----------------
<S> <C> <C> <C> <C>
NET ASSET VALUE PER SHARE,
BEGINNING OF PERIOD ............... $13.76 $12.05 $10.80 $10.00
------ ------ ------ ------
Income from investment operations:
Net investment income ............. 0.06 0.12 0.11 0.08
Net realized and unrealized gains
on investment and foreign
currency transactions ........... 2.06 1.85 1.31 0.75
------ ------ ------ ------
Total income from investment
operations ........................ 2.12 1.97 1.42 0.83
------ ------ ------ ------
Less dividends and distributions:
Dividends to shareholders from
net investment income ........... (0.27) (0.11) (0.16) (0.03)
Distributions to shareholders
from net realized gains ......... (0.68) (0.15) (0.01) --
------ ------ ------ ------
Total dividends and distributions ... (0.95) (0.26) (0.17) (0.03)
------ ------ ------ ------
Net change in net asset value
per share ......................... 1.17 1.71 1.25 0.80
------ ------ ------ ------
NET ASSET VALUE PER SHARE, END
OF PERIOD ......................... $14.93 $13.76 $12.05 $10.80
====== ====== ====== ======
Total return ........................ 16.70% 16.62% 13.22% 8.31%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of period (000). $150,172 $132,924 $96,977 $34,244
Ratio of expenses to average net
assets .......................... 1.11%(b) 0.91% 1.11% 1.14%(b)
Ratio of net investment income to
average net assets .............. 1.02%(b) 0.91% 0.99% 1.26%(b)
Ratio of expenses to average net
assets (a) ...................... 1.11%(b) 0.91% 1.13% 2.12%(b)
Ratio of net investment income to
average net assets (a) .......... 1.02%(b) 0.91% 0.96% 0.28%(b)
(a) During the period, 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 FOR THE PERIOD
SIX MONTHS FOR THE SEPTEMBER 3, 1996
ENDED YEAR (COMMENCEMENT
APRIL 30, ENDED OF OPERATIONS) TO
1998 OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1997 1996
----------- ----------- ------------------
<S> <C> <C> <C>
NET ASSET VALUE PER SHARE, BEGINNING OF
PERIOD .................................... $13.44 $10.63 $10.00
------ ------ ------
Income from investment operations:
Net investment loss ....................... (0.04) (0.06) --
Net realized and unrealized gains on
investment transactions ................. 1.94 2.93 0.63
------ ------ ------
Total income from investment operations ..... 1.90 2.87 0.63
------ ------ ------
Less dividends and distributions:
Distributions to shareholders from net
realized gains .......................... (1.38) (0.06) --
------ ------ ------
Total dividends and distributions ........... (1.38) (0.06) --
------ ------ ------
Net change in net asset value per share ..... 0.52 2.81 0.63
------ ------ ------
NET ASSET VALUE PER SHARE, END OF PERIOD .... $13.96 $13.44 $10.63
====== ====== ======
Total return ................................ 16.41% 27.18% 6.30%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's) ....... $145,696 $137,996 $92,842
Ratio of expenses to average net assets ..... 1.10%(b) 1.02% 0.91%(b)
Ratio of net investment loss to average
net assets .............................. (0.68%)(b) (0.50%) (0.28%)(b)
Ratio of expenses to average net assets(a). 1.14% (b) 1.03% 1.17% (b)
Ratio of net investment income to average
net assets (a) .......................... (0.72%)(b) (0.51%) (0.54%)(b)
(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) Not annualized.
See notes to financial statements.
</TABLE>
<PAGE>
REPUBLIC FIXED INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
APRIL 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT SECURITY DESCRIPTION (NOTE 2)
------ -------------------- --------
<S> <C> <C>
CORPORATE OBLIGATI0NS - 29.2%
BANKING - 2.9%
$ 650,000 BankAmerica Instit, 144A, 8.070%, due 12/31/26 (a)....... $ 700,596
500,000 First Chicago NBD Instit, 144A, 7.950%, due 12/01/26 (a) 529,977
575,000 First Union Capital, 8.040%, due 12/01/26 ............... 606,374
75,000 Great Western Finance, 8.206%, due 01/27/97 ............. 79,352
510,000 Korea Development Bank, 7.350%, due 9/17/04 ............. 466,176
475,000 PNC Instit Capital Trust A, 144A, 7.950%,
due 12/15/26 (a) ...................................... 499,391
175,000 State Street, 8.035%, due 03/15/27 ...................... 187,490
175,000 Wells Fargo Capital I, 7.960%, due 12/15/26 ............. 185,696
450,000 Wells Fargo Capital A, 144A, 8.125%, due 12/01/26 (a) ... 480,658
150,000 Wells Fargo Capital B, 144A, 7.950%, due 12/01/26 (a) ... 157,888
------------
3,893,598
------------
BROADCASTING & PUBLISHING - 0.5%
620,000 Paramount Communications, 8.250%, due 08/01/22 .......... 638,816
------------
ENERGY - 2.6%
500,000 Callenergy Co. Inc., 7.63%, 10/15/07 .................... 503,540
280,000 CMS Energy Corp, 7.375%, due 11/15/00 ................... 282,556
300,000 Edison Mission, 144A, 7.330%, due 09/15/08 .............. 312,722
150,000 Excel Paralubes Funding, 144A, 7.430%, due 11/01/15 (a) . 158,226
190,000 Israel Electric, 144A, 7.250%, due 12/15/06 (a) ......... 193,346
305,000 Israel Electric, 144A, 7.750%, due 12/15/27 (a) ......... 305,665
167,910 Mobile Energy SV, 8.665%, due 01/01/17 .................. 181,226
345,000 National Power Corp., 7.875%, due 12/15/06 .............. 311,582
350,000 National Power Corp., 8.400%, due 12/15/16 .............. 313,824
350,000 Paiton Energy Funding BV, 144A, 9.340%, due 02/15/14 (a) 203,000
675,000 RAS Laffan Liquid Natural Gas, 144A, 8.294%,
due 03/15/14 (a) ...................................... 703,687
------------
3,469,374
------------
FINANCE - 13.7%
365,000 Anthem Insurance, 144A, 9.000%, due 04/01/27 (a) ........ 390,696
605,000 Arcadia Automobile Receivable Trust, 97 c A4, 6.375%,
due 01/15/03 .......................................... 610,366
750,000 Arcadia Automobile Receivable Trust, 97 d, 6.200%,
due 05/15/03 .......................................... 752,850
675,000 Arcadia Automobile Receivable Trust, 98 a A3, 5.900%,
due 11/15/03 .......................................... 673,886
710,000 BT Institutional Capital, 144A, 8.090%, due 12/01/26 (a) 741,741
348,517 Credit Card Receivable Trust, 6.478%, due 12/22/02 ...... 347,785
672,769 Chevy Chase Auto Receivables Trust, 97 4 A, 6.25%,
due 06/15/04 .......................................... 674,370
150,000 Dr Structured Financial, 1993-K1 A2, 7.43%,
due 08/15/18 .......................................... 131,728
250,000 Dr Structured Financial Trust, 1994-K1 A2, 8.375%,
due 08/15/15 .......................................... 244,475
309,241 Dr Structured Financial Trust, 1994-K1 A1, 7.600%,
due 08/15/07 .......................................... 303,183
75,000 Dr Structured Financial Trust, 1994-K2, 9.350%,
due 08/16/94 .......................................... 77,458
500,000 Equitable Life, 144A, 6.950%, due 12/01/05 (a) .......... 512,823
475,000 Farmers Insurance Exchange, 144A, 8.625%,
due 05/01/24 (a) ...................................... 548,448
699,112 First Security Corp., 6.100%, due 04/15/03 .............. 700,497
600,000 First Union Lehman Brothers, 7.3%, due 12/18/06 ......... 629,664
625,000 Florida Windstorm, 144A, 6.700%, due 08/25/04 (a) ....... 628,650
250,000 Florida Property & Casuality, 144A, 7.375%,
due 07/01/03 (a) ...................................... 259,598
350,000 Forum Finance Corp., 144A, 7.125%, due 05/15/04 (a) ..... 358,054
825 Home Ownership Funding Corp., 144A, 13.331% (a)(d) ...... 797,081
677,205 Honda Auto Receivable, 97 AA, 5.850%, due 02/15/03 ...... 676,697
430,000 Hutchinson Whampoa Ltd, 7.45%, due 08/01/17 ............. 391,270
70,000 K-Mart Funding Corp., 8.800%, due 07/01/10 .............. 72,122
575,000 Lehman Large Loan 97 LL1 A2 SEQ, 6.840%, due 10/15/34 ... 591,307
319,555 Long Beach Auto 97 2 A, 6.690%, due 09/25/044 ........... 320,494
625,000 Metroplitan Life Insurance, 144A, 7.450%,
due 11/01/23 (a) ...................................... 616,573
550,000 Nationwide Mutual Life, 144A, 7.500%, due 02/15/24 (a) .. 551,721
500,000 New York Life, 7.500%, due 12/15/23 ..................... 505,171
870,247 Nissan Auto Receivables Grantor Trust, 6.15%, 02/15/03 .. 872,310
605,000 Petrozuata Finance, Inc., 144A, 8.220% due 04/01/17(a) .. 633,229
300,000 Prudential Insurance Co., 8.300%, due 07/01/25 .......... 339,075
278,338 Smart (CFS) 97 6 A1, 7.710%, due 04/15/06 ............... 279,649
271,957 Smart (CFS) 98 A A1, 7.450%, due 03/16/06 ............... 271,783
750,000 UCFC 1997 D A2 SEQ, 6.475%, due 06/15/12 ................ 752,490
275,000 Washington Mutual Capital, 8.375%, due 06/01/27 ......... 299,123
394,630 World Financial, 144A, 6.910%, due 09/01/13 (a) ......... 405,483
750,000 World Financial, 144A, 6.950%, due 09/01/13 (a) ......... 772,500
625,000 World Omni Automobile Lease Securitization, 97 B A2,
6.080%, due 11/25/03 .................................. 626,000
------------
18,360,350
------------
INDUSTRIAL - 7.6%
400,000 American Standard Co. 7.375%, due 04/15/05 .............. 393,436
425,000 AST Research, Inc., 144A, 7.450%, due 10/01/02 (a) ...... 392,173
215,000 Columbia HCA Healthcare, 9.000%, due 12/15/14 ........... 231,443
325,000 Columbia HCA Healthcare, 9.000%, due 09/15/25 ........... 306,462
420000 CSC Holdings Inc., 7.880%, due 12/15/07 ................. 434,700
675,000 Fred Myer Inc., 7.375%, due 03/01/05 .................... 674,622
375000 Glencore Nickel Property Ltd., 9.00%, due 12/01/14 ...... 371,636
380000 Grupo Minero Mexico, 8.250%, due 04/01/08 ............... 376,094
290,000 Hyundai Semi-Conductor, 144A, 8.625%, due 05/15/07 (a) .. 231,162
75,000 Hyundai Semi-Conductor, 8.250%, due 05/15/04 ............ $61,536
370,000 Lenfest Communications, 7.625%, due 02/15/08 ............ 367,225
265,000 Multicanal SA, 10.5%, due 04/15/18 268,970
600,000 Oil Purchase Co., 144A, 7.100%, due 04/30/02 (a) ........ 600,690
370,000 Oxymar, 144A, 7.500%, due 02/15/16 (a) .................. 377,023
625,000 Petroliam Nasional, 144A, 7.125%, due 10/18/06 (a) ...... 579,069
290,000 Philip Morris Co's.Inc., 7.000%, 07/15/05 ............... 297,580
65,000 Prime Property Funding, 6.800%, due 08/15/02 ............ 65,694
420,000 Prime Property Funding, 144A, 7.000%, due 08/15/04 (a) .. 426,682
585,000 Qwest Communications International, 8.290%,
due 02/01/08 .......................................... 402,919
250,000 Reliance Industries, 8.25%, due01/15/27 ................. 233,490
425,000 Rhone Poulenc Rorer Inc., 8.62%, 01/05/21, due 01/05/21 . 468,541
360,000 Samsung Electronics, 7.450%, due 10/01/02 ............... 332,194
341,316 Scotia Pacific Holdings, 144A, 7.950%, due 07/20/15 (a) . 356,664
3,125,000 Treuhandanstalt, 7.375%, due12/02/02 .................... 1,935,424
------------
10,185,429
------------
RETAIL - 0.3%
464,000 Southland Corp., 5.000%, due 12/15/03 ................... 397,880
------------
TELECOMMUNICATIONS - 0.8%
200,000 Rogers Cable Systems, 10.000%, due 03/15/05 ............. 221,500
200,000 Rogers Cantel, Inc., 144A, 8.300%, due 10/01/07 (a) ..... 198,000
795,000 Teleport Communications, 11.125% due 07/01/07 ........... 687,675
------------
1,107,175
------------
TRANSPORTATION - 0.8%
435,000 Continental Airlines, 6.648%, due 09/15/17 .............. 435,857
175,000 Jet Equipment Trust, 144A, 10.000%, due 06/15/12 (a) .... 220,899
395,000 Union Pacific Co., 6.625%, due 02/01/08 ................. 390,540
------------
1,047,296
------------
OTHER - 0.1%
185,000 ESI Tractebel, 7.99%, due 12/30/11 ...................... 184,530
------------
TOTAL CORPORATE OBLIGATIONS
(COST $38,729,722) .................................... 39,284,448
------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 15.7%
425,000 Advanta Mortgage Loan Trust 8.08%, due 11/25/25 ......... 447,971
274,942 Alliance Hel 96 2 A6 8.300%, due 09/25/27 ............... 291,359
499,001 Alcoa Aluminium 96-1, 144A, 7.500%, due 12/16/08 (a) .... 499,366
102,479 American Soutwest Financial Securities Corp 7.300%,
due 01/18/09 .......................................... 104,337
4,821,369 American Soutwest Financial Securities Corp 1.080%,
due 01/18/09 .......................................... 199,701
150,000 American Soutwest Financial Securities Corp 7.400%,
due 11/17/04 .......................................... 154,101
162,811 Asset Securitization Corp. 95 d1 A1 7.590%, due 08/11/27 171,573
1,148,673 Asset Securitization Corp. 95 md4 CS2 IO 2.360%,
due 08/13/29........................................... 197,216
500,000 Asset Securitization Corp. 96 md6 A1B SEQ 6.880%,
due 11/13/26 .......................................... 515,330
275,000 Asset Securitization Corp. 96 MDS A;SEQ 7.040%,
due 11/13/26 .......................................... 286,275
1,011,729 Asset Securitization Corp. 95 md4 A1 7.100%,
due 08/13/29 .......................................... 1,050,822
300,000 BSMSI 96 09 L NAS, 8.000%, due 12/25/27 ................. 310,422
350,000 CIT Group Home Equity Loan Trust 97-1 A3, 6.250%,
due 09/15/11 .......................................... 350,175
575,000 Commercial Mortgage Acceptance Corp., 1997, MLL1 A2, SEQ,
6.53%, due 12/15/30 ................................... 581,751
141,729 Countrywide Mortgage Backed Securities, Inc., 93 C A11,
6.500%, due 01/25/24 .................................. 138,376
275,000 Delta Funding Home Equity Loan Trust 96-1 A7, 7.950%,
due 06/25/27 .......................................... 292,361
393,216 Daimler-Benz AGT 1997-A Class A, 6.050%, due 03/20/05 ... 393,947
2,725,572 DLJ Mortage Acceptance Corp. 1997 CF1 S IO, 1.097%,
due 03/15/17 .......................................... 171,193
900,000 Empire Funding Home Loan Owner Trust 97-3 A4, 7.160%,
due 04/25/23 .......................................... 908,748
700,000 Empire Funding Home Loan Owner Trust 97-5 A2, 6.590%,
due 05/25/14 .......................................... 702,240
525,000 Empire Funding Home Loan Owner Trust 97-4 A2, 7.160%,
due 05/25/12 .......................................... 529,394
650,000 EQCC Home Equity Loan Trust 98 1 A1F, 6.21%,
due 12/15/07 .......................................... 649,935
142,125 First Boston Mortgage Securities Corp. 93-5 B1, 7.300%,
due 07/25/23 .......................................... 142,480
315,000 First Plus Home Loan Trust 97-3 A2, 6.480%, due 09/10/08 316,049
310,000 First Plus Home Loan Trust 97-3 A3, 6.570%, due 10/10/10 312,356
350,000 First Plus Home Loan Trust 97-4 A3, 6.300%, due 11/01/97 350,182
325,000 First Plus Home Loan Trust 97-4 A3, 6.400%, due 11/01/97 326,248
2,297,918 GMAC 96 C1 X2 I0, 1.967%, due 03/15/21 .................. 186,706
5,500,000 GMAC 97 C2 X I/0, 1.2732%, due 04/15/29 ................. 413,875
525,000 GS Mortgage Securities Corp. 97-GL A2D, 6.940%,
due 07/13/30 .......................................... 544,115
1,294,104 GS Mortgage Securities Corp. 97-GL X2 IO, 1.070%,
due 07/13/30 .......................................... 65,404
398,496 Headlands Mortgage Securities, Inc. 97-5 AI5, 7.250%,
due 11/25/27 .......................................... 402,302
525,000 JP Morgan Commercial 1997 C5 A2, 7.069%, due 09/15/29 ... 544,068
192,838 Independent National Mortgage Corp., 1994-O B1 .......... 202,123
288,206 LB Commercial Conduit Mortgage Trust 96 C2 A Seq, 7.420%,
due 10/25/26 .......................................... 301,686
5,743,062 LB Commercial Conduit Mortgage Trust 98 C1 IO, 1.199%,
due 02/18/30 .......................................... 380,765
3,969,843 Merrill Lynch Mortgage Investors 1995 C1 IO, 2.188%,
due 05/25/15 .......................................... 188,488
225,000 Merrill Lynch Mortgage Investors 1996 C1 A3, 7.420%,
due 04/25/28 .......................................... 235,595
1,305,125 Merrill Lynch Mortgage Investors 1996 C2 IO, 1.532%,
due 11/21/28 .......................................... 109,161
800,000 Midland Realty Acceptance Corporation ................... 834,512
150,000 Mortgage Capital Funding 1995 MC1 A1B, 7.600%,
due 05/25/27 .......................................... 153,426
600,000 Mortgage Capital Funding, Inc. 97-MC1 A3, 7.288%,
due 03/20/07 .......................................... 629,184
350,000 Rali 96 QS8 A13 NAS, 7.750%, due 12/25/26 ............... 361,151
625,000 Rali 97 QS3 A8 NAS, 7.250%, due 09/25/27 ................ 631,194
375,000 Rali 97 QS3 A8 NAS, 7.750%, due 04/25/27 ................ 386,040
850,000 Rali 98 QS4 L NAS, 7.000%, due 03/25/28 ................. 845,520
825,000 Rali 98 QS2 L NAS, 7.000%, due 02/25/28 ................. 820,132
1,000,000 Residential Asset Securitization Trust, 98 1 A$ NAS,
due 03/15/28 .......................................... 983,180
250,000 Salomon 97 tzh A2, 7.140%, due 03/24/22 ................. 258,955
625,000 WFS Financial Owner Trust 97D A3, 6.250%, due 03/20/02 .. 626,837
570,000 WFS Financial Owner Trust 97C A3, 6.100%, due 03/20/02 .. 570,638
------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (COST $21,139,594) ........................ 21,068,965
------------
ASSET-BACKED OBLIGATIONS - 0.9%
200,000 Airtcraft Lease Portfolio Securitization Ltd 7.800%,
due 09/15/04 .......................................... 200,240
298,478 Airtcraft Lease Portfolio Securitization Ltd 9.3500%,
due 09/15/04 .......................................... 303,636
347,985 ICI Funding Corp 97-2 1A8, 8.000%, due 07/25/28 ......... 359,302
300,000 IMC Home Equity 96 3 A7, 8.050%, due 08/25/26 ........... 314,874
------------
TOTAL ASSET BACKED OBLIGATIONS
(COST $1,162,983) ..................................... 1,178,052
------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS - 56.6%
FEDERAL HOME LOAN MORTGAGE CORPORATIONS - 14.7%
290,767 PL#A01521, 9.500%, due 12/01/16 ......................... 309,939
695,715 PL#A01706, 10.000%, due 06/01/17 ........................ 770,324
3,950,000 TBA July, 6.500%, due 04/15/28 .......................... 3,908,248
6,500,000 TBA June, 7.500%, due 04/15/28 .......................... 6,664,515
1,700,000 TBA June, 6.500%, due 06/15/28 .......................... 1,683,884
6,500,000 TBA June, 6.500%, due 06/15/28 .......................... 6,438,380
------------
19,775,290
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 25.9%
113,704 93 205 G PO, due 09/25/23, 6.440% (e) ................... 83,766
833,280 92-89 SQ IO, 3.300%, due 06/25/22 ....................... 62,421
561,618 94-50 FD MTG FLTR, 6.200%, due 03/25/24 ................. 563,415
963,056 96 5 NH PO, due 04/25/24 ................................ 675,873
410,688 96 11 V PO, due 09/25/23 ................................ 315,860
110,000 96 14 PC PO, due 12/25/23 ............................... 77,473
110,000 96 46 PB PO, due 09/25/23 ............................... 85,712
86,271 96 54 O PO, due 11/25/23 ................................ 61,062
175,000 97 3 E PO, due 12/25/23 ................................. 138,390
1,000,000 97 30 SP INV I0, due 04/25/22 ........................... 136,777
349,531 97 70 FA FLTR, 6.137%, due 07/18/20 ..................... 351,415
1,591,128 98 22 FA FLTR, 6.025%, due 04/18/28 ..................... 1,594,326
154,411 PC#044176 CL, 10.000%, due 06/01/20 ..................... 170,163
11,313 PC#075414 CL, 10.000%, due 05/01/19 ..................... 12,467
8,783 PC#082406 CL, 10.000%, due 09/01/19 ..................... 9,680
23,285 PC#082931 CL, 10.000%, due 10/01/19 ..................... 25,660
49,292 PC#083435 CL, 10.000%, due 11/01/19 ..................... 54,327
19,809 PC#083880 CL, 10.000%, due 11/01/19 ..................... 21,832
12,378 PC#084964 CL, 10.000%, due 11/01/19 ..................... 13,640
9,815 PC#087291 CL, 10.000%, due 01/01/20 ..................... 10,817
6,436 PC#088027 CL, 10.000%, due 01/01/20 ..................... 7,093
26,384 PC#088383 CL, 10.000%, due 11/01/18 ..................... 29,075
74,233 PC#124783 CL, 10.500%, due 12/01/16 ..................... 81,451
82,655 PC#303157 CL, 10.000%, due 05/01/22 ..................... 90,487
567,082 PC#323073 CL, 10.500%, due 02/01/28 ..................... 638,993
426,988 GP#D18976 D1 10.000%, due 03/01/20 ...................... 473,457
1,300,000 TBA June, 6.500%, due 04/15/28 .......................... 1,286,259
9,250,000 TBA July, 6.500%, due 03/25/28 .......................... 9,142,053
6,700,000 TBA June, 6.500%, due 06/15/28 .......................... 6,629,181
8,950,000 TBA June, 6.500%, due 06/15/28 .......................... 8,855,399
1,150,000 TBA May, 10.500%, due 05/15/28 .......................... 1,280,813
1,148,336 Strip 249 PO, due 10/25/23, 6.720% (e) .................. 813,711
898,989 Strip 282 PO, due 09/01/25 .............................. 674,062
448,082 Strip 287 PO, due 12/17/07 .............................. 315,002
------------
34,782,112
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 13.2%
70,761 PL#038500, 11.000%, due 01/15/10 ........................ 78,346
47,381 PL#038712 SF, 11.000%, due 03/15/10 ..................... 52,459
35,659 PL#039798 SF, 11.000%, due 06/15/10 ..................... 39,482
75,456 PL#041650, 11.000%, due 08/15/10 ........................ 83,544
68,295 PL#041840, 11.000%, due 08/15/10 ........................ 75,615
87,907 PL#042490 SF, 11.000%, due 07/15/10 ..................... 97,330
54,070 PL#043699, 11.000%, due 09/15/10 ........................ 59,865
50,375 PL#044103, 11.000%, due 09/15/10 ........................ 55,775
21,432 PL#150312, 11.500%, due 02/15/16 ........................ 24,091
37,668 PL#163997, 10.500%, due 08/15/16 ........................ 41,293
26,538 PL#164353, 10.500%, due 06/15/16 ........................ 29,092
103,027 PL#278742, 10.500%, due 09/15/19 ........................ 112,943
527,177 PL#780066 SP, 10.500%, due 12/15/20 ..................... 594,129
305,036 PL#780378, 11.000%, due 01/15/19 ........................ 349,260
321,019 PL#780384, 11.000%, due 12/15/17 ........................ 368,138
540,238 PL#780472, 10.000%, due 03/15/25 ........................ 601,652
121,696 PL#780517, 10.500%, due 01/15/18 ........................ 137,198
825,440 PL#780614, 11.000%, due 03/15/18 ........................ 945,113
171,927 PL#780127 SP, 10.500%, due 04/01/25 ..................... 193,762
323,361 PL#780164, 10.000%, due 12/15/17 ........................ 360,560
892,834 PL#780203, 9.500%, due 12/15/17 ......................... 979,850
717,952 PL#780311, 9.500%, due 12/15/21 ......................... 784,607
925,000 PL#780784, 10.000%, due 04/15/28 ........................ 1,030,154
2,548,461 PL#80114, 6.000%, due 09/20/27 .......................... 2,588,217
329,505 PL#080156, 6.500%, due 01/20/28 ......................... 334,942
1,473,839 PL#080171, 6.500%, due 02/20/28 ......................... 1,498,599
60,792 PL#080171, 6.500%, due 02/20/28 ......................... 61,831
247,412 PL#8599, 7.000%, due 02/20/25 ........................... 252,929
760,267 PL#8613 AR 7.000%, due 03/20/25 ......................... 777,297
1,084,261 PL#8621, 7.375%, due 04/20/25 ........................... 1,108,657
723,740 PL#8623 G2AR, 7.375%, due 04/20/25 ...................... 740,242
480,132 PL#8631, 7.375%, due 05/20/25 ........................... 490,791
243,883 PL#8634, 7.375%, due 05/20/25 ........................... 249,321
662,525 PL#8643, 7.375%, due 06/20/25 ........................... 677,167
439,515 PL#8646, 7.375%, due 06/20/25 ........................... 449,317
289,789 PL#8663, 7.000%, due 07/20/25 ........................... 296,367
27,593 PL#120587, 13.500%, due 11/15/14 ........................ 31,957
44,842 PL#136224, 10.000%, due 11/15/15 ........................ 50,001
133,805 PL#164356, 10.500%, due 06/15/16 ........................ 148,948
90,783 PL#199010, 10.000%, due 01/15/17 ........................ 100,408
54,788 PL#227192, SF, 10.000%, due 06/15/19 .................... 60,679
58,351 PL#253821, SF, 10.000%, due 10/15/18 .................... 64,984
50,832 PL#257153, 10.000%, due 11/15/18 ........................ 56,611
49,937 PL#258345, SF, 10.000%, due 06/15/19 .................... 55,306
47,019 PL#265085, 10.000%, due 04/15/19 ........................ 52,074
55,863 PL#266007, SF, 10.000%, due 09/15/19 .................... 61,870
52,488 PL#271874, SF, 10.000%, due 04/15/19 .................... 58,131
163,698 PL#282210, 10.500%, due 11/15/19 ........................ 182,424
64,088 PL#301274, SF, 10.000%, due 01/15/21 .................... 70,954
175,154 PL#780081, 10.000%, due 02/15/25 ........................ 195,066
------------
17,809,348
------------
FEDERAL HOME LOAN MORTGAGE ASSOCIATION - 2.8%
76,529 PL#555201, 11.000%, due 09/01/16 ........................ 84,660
272,067 PL#555283, 10.000%, due 09/01/17 ........................ 300,011
265,000 1632 SA INV FLTR, due 11/15/23 (c) ...................... 237,334
61,648 1709 H PO, due 01/15/24 ................................. 39,609
60,000 1813 K PO, due 02/15/24 ................................. 50,640
115,000 1844 PC PO, due 03/15/24 ................................ 89,619
65,000 1887 I PO, due 10/15/22 ................................. 51,454
565,000 2084 FC MTG FLTR, due 04/25/28 .......................... 566,497
898,074 2030 F MTG FLTR, due 02/15/28 ........................... 904,216
829,496 1710D MTG FLTR, due 06/15/20 ............................ 834,863
246,374 1933 FO COM FLTR, due 03/15/25 .......................... 247,536
142,424 19332084 FM CMO FLTR, due 03/15/25 ...................... 143,096
61,676 GP#180881, 10.500%, due 10/01/11 ........................ 67,419
73,321 PL#308433, 10.500%, due 11/01/18 ........................ 80,149
------------
3,697,103
------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS (COST $75,340,584) ........................ 76,063,853
------------
U.S. TREASURY OBLIGATIONS - 14.4%
2,825,000 U.S. Treasury Note, Inflation Index, 3.625%, due 01/15/08 2,806,520
3,200,000 U.S. Treasury Note, Inflation Index, 6.375%, due 03/31/01 3,262,998
7,000,000 U.S. Treasury Note, Inflation Index, 5.625%, due 02/28/01 7,002,184
2,675,000 U.S. Treasury Note, Inflation Index TIP, 3.625%,
due 07/15/02 .......................................... 2,674,818
3,650,000 U.S. Treasury Note, Inflation Index, 3.375%, due 01/15/07 3,612,438
------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $19,415,066) .................................... 19,358,958
------------
YANKEE BONDS - 1.1%
795,000 Republic of Argentina, 5.250%, due 03/31/23 ............. 604,200
570,000 Republic of Colombia, 8.750%, due 02/15/16 .............. 550,929
310,000 Republic of Korea, 8.875%, due 04/15/08 ................. 305,015
------------
TOTAL YANKEE BONDS (COST $1,375,674) .................... 1,460,144
------------
SHORT TERM INVESTMENTS - 12.1%
4,367,422 Dreyfus Cash Management Fund 288 Money Market Fund ...... 4,367,422
8,000,000 Federal Home Loan Mortgage Corp Discount Note,
due 05/18/98 .......................................... 7,966,550
4,000,000 Federal Home Loan Mortgage Corp Discount Note,
due 05/29/98 .......................................... 3,976,557
------------
TOTAL SHORT TERM INVESTMENTS
(COST $16,310,529) .................................... 16,310,529
------------
TOTAL INVESTMENTS --130.0%
(Identified Cost $173,474,152) (f) ................................ 174,724,949
OTHER LIABILITIES IN EXCESS OF ASSETS - (30.0)% ..................... (40,295,350)
------------
NET ASSETS - 100.0% ................................................. $134,429,599
============
PO - Principal only
IO - Interest only
PL# - Pool Number
PC# - Pool Number
CL - Conventional Loan
TBA - Pool Number to be Announced
(a) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration, normally to
qualified institutional buyers.
(b) Security purchased on a delayed delivery basis.
(c) Represents a variable rate note. Interest rate disclosed represents current rate at
April 30, 1998.
(d) Preferred Stock.
(e) Effective yield (calculated at the date of purchase) is the yield at which the bond
accretes on an annual basis until maturity date.
See notes to financial statements
</TABLE>
<PAGE>
REPUBLIC FIXED INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS -- APRIL 30, 1998
SCHEDULE OF OPEN FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
PRINCIPAL NET
VALUE UNREALIZED
EXPIRATION LOCAL VALUE APPRECIATION/
DATE CONTRACT TO DELIVER CURRENCY COST US$ (NOTE 2) (DEPRECIATION)
---- ------------------- -------- -------- -------- --------------
<S> <C> <C> <C> <C> <C>
CONTRACTS TO SELL:
7/29/98 Deutsche Mark 3,535,000 $1,990,372 $1,981,436 $ 8,936
--------
SCHEDULE OF OPEN FINANCIAL FUTURES CONTRACTS
NET
APPRECIATION
EXPIRATION NUMBER OF CONTRACT (DEPRECIATION)
DATE CONTRACTS CONTRACTS VALUE OF CONTRACTS
---- --------- --------- ----- ------------
<S> <C> <C> <C> <C>
SOLD
06/30/98 21 US 10YR Note Futures June 98 $2,358,563 $ (9,056)
06/30/98 33 US 10YR Note Futures June 98 3,706,312 (44,138)
06/30/98 15 US 10YR Note Futures June 98 1,684,688 (20,999)
06/30/98 25 US 10YR Note Futures June 98 2,807,813 (26,406)
06/30/98 13 US 10YR Note Futures June 98 1,460,063 (14,137)
06/30/98 15 US Long Bond (CBT) 1,803,281 3,258
06/30/98 15 US Long Bond (CBT) 1,803,281 3,375
06/30/98 25 US Long Bond (CBT) 3,005,469 4,063
---------
NET UNREALIZED APPRECIATION ON OPEN FUTURES CONTRACTS $(104,040)
=========
See notes to financial statements
</TABLE>
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
APRIL 30, 1998
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
<S> <C> <C>
COMMON STOCKS - 92.0%
ARGENTINA - 1.0%
Perez Companc ADR .................................. 65,799 $ 796,260
Telecom Argentina ADR .............................. 42,700 1,537,200
YPF Sociedad Anonima ADR ........................... 6,000 209,250
------------
2,542,710
------------
AUSTRALIA - 4.3%
Broken Hill Proprietary ADR ........................ 83,800 1,655,050
Broken Hill Proprietary ............................ 24,000 234,882
Coca-Cola Amatil Ltd. .............................. 195,569 1,492,916
Coles Myer Ltd. .................................... 249,500 1,207,874
Lend Lease Corp., Ltd. ............................. 61,781 1,418,877
News Corp., Ltd.. ADS .............................. 40,000 1,092,500
Western Mining Corp. Holding Ltd. (b) .............. 354,951 1,264,473
Westpac Banking Corp. .............................. 340,000 2,284,880
------------
10,651,452
------------
BRAZIL - 0.5%
Centrais Electro Brasil ADR ........................ 52,400 1,177,145
------------
CANADA - 8.5%
Bank of Montreal ................................... 41,000 2,236,285
Bombardier Inc. Class B ............................ 62,600 1,689,703
Inco Ltd. .......................................... 35,430 622,239
Inco Ltd., Class VBN ............................... 6,550 78,551
National Bank of Canada ............................ 52,100 1,074,753
Newcourt Credit Ltd. ............................... 37,800 1,855,571
Northern Telecom Ltd. .............................. 40,000 2,435,000
Northern Telecom Ltd. .............................. 7,000 426,104
Rogers Communications, Class B (b) ................. 53,000 331,250
Royal Bank of Canada ............................... 48,500 2,896,332
Seagrams Co., Ltd. ................................. 20,300 866,556
Suncor Ltd. ........................................ 46,000 1,581,250
The Bank of Nova Scotia ............................ 55,000 1,509,563
Thomson Corp. ...................................... 115,000 3,461,942
------------
21,065,099
------------
FINLAND - 2.6%
Nokia AB-A ......................................... 10,800 722,250
Nokia Oyj-A ........................................ 54,000 3,623,595
UPM-Kymmene ........................................ 70,000 2,104,112
------------
6,449,957
------------
FRANCE - 5.4%
Bougues ............................................ 9,344 1,474,837
Peugeot SA ......................................... 18,000 3,125,489
Renault SA (b) ..................................... 29,300 1,359,617
Sidel .............................................. 16,000 1,224,116
Synthelabo ......................................... 11,600 1,746,029
Societe National Elf-Aquitaine ..................... 6,915 907,432
Television Francaise ............................... 10,000 1,405,405
Valeo .............................................. 20,400 2,028,973
------------
13,271,898
------------
GERMANY - 5.9%
Bayerische Motoren Werke AG ........................ 2,000 2,208,527
Mannesmann AG ...................................... 8,950 7,107,889
Metallgesellschaft AG .............................. 69,200 1,456,903
Munchener Ruck INH ................................. 1,250 421,767
Munchener Ruck Nam 50% paid ........................ 1,900 868,911
Siemens AG ......................................... 10,000 585,594
Volkswagen AG ...................................... 2,600 2,072,112
------------
14,721,703
------------
HONG KONG - 2.1%
Citic Pacific Ltd. ................................. 230,000 706,687
Hong Kong Electric Holdings (b) .................... 254,000 780,429
Hong Kong Telecom .................................. 980,000 1,834,495
Hong Kong Telecom Ltd. ............................. 17,000 328,312
Hysan Development .................................. 580,000 823,651
Swire Pacific, Class A ............................. 153,000 764,407
------------
5,237,981
------------
INDONESIA - 0.1%
Pt Indonesia Satellite ADR ......................... 12,000 169,500
------------
IRELAND - 0.2%
Allied Irish Banks Plc ............................. 40,100 558,827
------------
ITALY - 4.0%
Alleanza Assicuraz Di Risp It 2000 ................. 55,000 1,648,618
Alleanza Assicurazioni SpA Azione Nom .............. 300 3,787
ENI SpA ............................................ 287,400 1,927,421
Telecom Italia Mobile-DrNc ITL100 .................. 988,000 3,561,924
Telecom Italia SpA ITL 1000 ........................ 163,611 1,233,588
Telecom Italia SpA RNC ............................. 310,000 1,635,690
------------
10,011,028
------------
JAPAN - 17.2%
Adventest Corp. .................................... 33,077 2,226,986
Asahi Breweries Ltd. ............................... 256,000 3,356,139
Chudenko Corp. ..................................... 7,865 182,063
Dai-Nippon Screen .................................. 160,000 744,383
DDI Corp ........................................... 250 633,558
Fuji Photo Film .................................... 25,000 890,763
Higashi Nihon House ................................ 32,000 137,983
Hirose Electronics Co. Ltd. ........................ 34,000 1,720,705
Honda Motor Co., Ltd. .............................. 40,000 1,452,455
Honda Motor Co., Ltd. ADR .......................... 6,000 436,875
Hoya Corp. ......................................... 2,000 66,268
Japan Airlines (b) ................................. 280,000 851,502
Jusco Co. .......................................... 57,000 920,607
Kawasaki Kisen ..................................... 122,000 179,968
Kokusai Electric ................................... 85,000 723,391
Kyocera Corp. ...................................... 24,100 1,265,255
Kyocera Corp. ADR .................................. 3,000 316,500
Minebea Co., Ltd. .................................. 118,000 1,321,129
Mitsubishi Chemical Corp. .......................... 500 908
Mitsui Fudosan ..................................... 126,000 1,151,434
Murata Manufacturing Co., Ltd. ..................... 43,000 1,239,352
NEC Corp. .......................................... 126,000 1,420,228
Nichiei Co., Ltd. .................................. 18,040 1,426,114
Nikon Corp. ........................................ 213,000 1,890,075
Nintendo Corp. ..................................... 14,300 1,293,804
Nippon Telegraph & Telephone Corp. ................. 1,630 1,430,365
Nomura Securities Co., Ltd. ........................ 133,000 1,624,896
Sakura Bank Ltd. ................................... 170,000 585,143
Sankyo Co., Ltd. ................................... 53,500 1,327,483
Sekisui House Ltd. ................................. 128,000 1,001,226
Shiseido Co. ....................................... 84,000 1,108,858
Soft Bank Corp. .................................... 20,286 936,112
Sony Corp. ......................................... 23,200 1,932,310
Sumitomo Bank ...................................... 85,000 803,767
Sumitomo Marine & Fire ............................. 42,000 250,685
Sumitomo Realty & Development ...................... 158,000 758,983
Suzuki Motor Corp. ................................. 101,000 869,491
Takefugi Corp. ..................................... 11,500 604,622
Tokyo Electron Ltd. ................................ 55,400 2,179,287
Wako Securities .................................... 158,000 251,002
Yasuda F&M Insurance ............................... 244,000 1,107,497
------------
42,620,172
------------
KOREA - 0.6%
Samsung Electronics GDR (b) ........................ 53,520 1,506,588
------------
MALAYSIA - 0.3%
Edaran Otomobil Berhad ............................. 100,000 171,582
Malaysian Airline System BHD ....................... 412,000 328,054
New Straits Times Press Berhad ..................... 31,000 34,906
Sime Darby Berhad .................................. 361,000 319,383
------------
853,925
------------
MEXICO - 2.6%
Cemex de CV SA ADR (b) ............................. 130,000 1,543,542
Grupo Financiero Banamex Series "L" Shares ......... 47,137 120,487
Grupo Financieri Banamex Accival series "B" NPV .... 147,000 458,861
Panamerican Beverages, Inc., Class A ............... 55,000 2,193,125
Telefonos De Mexico ADR ............................ 37,900 2,146,088
------------
6,462,103
------------
NETHERLANDS - 4.4%
Aegon NV ........................................... 18,500 2,400,337
ASM Lithography Holding NV ......................... 34,000 3,088,001
KON AHOLD NV ....................................... 69,690 2,174,253
Philips Electronics NV ............................. 27,100 2,388,848
Philips Electronics NV ADR ......................... 8,000 720,000
------------
10,771,439
------------
NEW ZEALAND - 0.3%
Telecom New Zealand ................................ 130,300 619,309
------------
NORWAY - 1.9%
Norsk Hydro ASA .................................... 49,600 2,475,043
Norsk Hydro ASA ADR ................................ 3,300 165,000
Orkla AS A-AKSJER (b) .............................. 17,000 2,015,855
------------
4,655,898
------------
PORTUGAL - 0.9%
Portugal Telecom S.A. ADR .......................... 40,400 2,171,500
------------
SINGAPORE - 0.6%
City Developments .................................. 35,000 151,453
Singapore Press Holdings Ltd. ...................... 111,522 1,232,871
------------
1,384,324
------------
SOUTH AFRICA - 0.8%
De Beers Consolidated Mines Ltd. ................... 79,000 2,034,250
------------
SPAIN - 1.7%
Corporacion Mapfre ESB 500 ......................... 18,676 733,306
Telefonica De Espana ............................... 85,900 3,587,157
------------
4,320,463
------------
SWEDEN - 7.1%
ABB Ab-A ........................................... 127,000 2,059,850
Astra AB A Shares ADR .............................. 32,000 658,000
Astra AB A-F ....................................... 227,733 4,679,627
Ericsson AB B Free ................................. 64,760 3,414,720
Ericsson LM Telephone ADR .......................... 8,900 457,794
Hennes & Mauritz AB A-F ............................ 42,500 2,213,513
Incentive AB-B ..................................... 12,000 1,158,484
Sparbanken Sverige Class A ......................... 90,000 2,814,790
------------
17,456,778
------------
SWITZERLAND - 4.2%
Asea Brown Boverei AG A Inhaber .................... 450 738,098
Credit Suisse Holdings Group, Registered ........... 5,160 1,135,351
Holderbank Finan Glaris Bearer ..................... 1,630 1,725,857
Nestle ............................................. 1,589 3,083,071
Novartis AG Registered ............................. 2,394 3,958,608
------------
10,640,985
------------
TAIWAN - 0.7%
Taiwan Semiconductor ADR (b) ....................... 76,800 1,886,400
------------
UNITED KINGDOM - 13.9%
Bank of Scotland ................................... 129,700 1,602,000
BICC Plc ........................................... 120,090 337,429
BOC Group .......................................... 126,800 2,152,011
British Petroleum Plc .............................. 46,000 727,036
British Petroleum Plc ADR .......................... 24,400 2,305,800
CaradonPlc ......................................... 400,000 1,294,515
Electrocomponents Plc .............................. 95,000 923,931
English China Clays Plc ............................ 192,857 795,094
Enterprise Oil Plc ................................. 100,000 923,220
Lucasvarity ........................................ 77,700 348,275
Morgan Crucible Company Plc ........................ 151,800 1,145,709
National Westminister Bank Plc ..................... 153,876 3,063,276
Reckitt and Colman Plc ............................. 129,390 2,607,677
Reuters Group Plc ADR .............................. 780 50,554
Reuters Holdings Plc ............................... 206,666 2,246,718
Shell Transport & Trading Plc ...................... 219,000 1,629,935
Storehouse Plc ..................................... 420,000 1,738,564
Tate & Lyle Plc .................................... 240,000 1,926,720
T.I. Group Plc ..................................... 190,000 1,715,985
United Utilities Plc ............................... 132,247 1,840,243
Zeneca Group Plc ................................... 116,100 5,009,773
Zeneca Group Plc ADR ............................... 1,800 78,975
------------
34,463,440
------------
TOTAL COMMON STOCK (COST $203,952,406) ............. 227,704,874
------------
RIGHTS - 0.1%
HONG KONG
Samsung Electronics GDR Rights ..................... 4,260 46,777
Hysan Develop Co. .................................. 58,000 0
------------
46,777
------------
SPAIN
Telefonica De Espana Rights ........................ 85,900 66,554
------------
SWEDEN
Foreningssparbanken/mandamus Unit .................. 90,000 $ 81,420
------------
TOTAL RIGHTS ....................................... 194,751
------------
PREFERRED STOCK - 0.7%
AUSTRALIA - 0.4%
News Corporation Ltd. .............................. 170,805 962,862
------------
CANADA - 0.1%
INCO Ltd. Series E 5.5% Convertible ................ 2,639 122,714
------------
JAPAN - 0.3%
Sakura Finance (Bermuda Trust) Conv Pref Ser II .... 120,000,000 812,467
------------
TOTAL PREFERRED STOCK (COST $1,809,268) ............ 1,898,043
------------
PRINCIPAL
AMOUNT
------
LONG TERM CORPORATE DEBT - 0.1%
JAPAN
Asahi Breweries 1.00 DTD 7/1/94 Due 12/26/03 ....... JPY 14,000,000 162,145
------------
TOTAL LONG TERM CORPORATE DEBT
(COST $166,922) .................................. 162,145
------------
SHARES
------
SHORT TERM INVESTMENTS - 7.0%
Investors Cash Reserve Fund ........................ 17,307,315 17,307,315
------------
TOTAL INVESTMENTS - 99.9%
Identified Cost ($223,235,911) (a) ............... 247,267,128
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% ....... 180,596
------------
TOTAL NET ASSETS - 100.0% .......................... 247,447,724
============
- ----------------------------------------------------------------------------------------
ADR = American depository receipt GDR = Global depositary receipt
ADS = American depository share JPY = Japanese Yen
(b) Represents non income producing security.
See notes to financial statements
</TABLE>
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1998
SCHEDULE OF OPEN FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
PRINCIPAL NET
VALUE UNREALIZED
EXPIRATION CONTRACT TO LOCAL VALUE APPRECIATION/
DATE DELIVER CURRENCY COST U.S.$ (NOTE 2) (DEPRECIATION)
---- ------- -------- ---------- -------- --------------
<S> <C> <C> <C> <C> <C>
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS TO BUY:
05/29/98 German Duetsche Mark 1,310,932 $ 729,921 $732,350 $ 2,429
05/13/98 British Pound 54,300 90,670 90,758 88
05/13/98 British Pound 27,100 44,951 45,295 344
05/05/98 British Pound 137,568 229,333 230,025 692
05/07/98 British Pound 43,148 72,096 72,140 44
05/06/98 British Pound 24,957 41,680 41,727 47
01/28/99 Japanese Yen 25,266,160 209,678 201,548 (8,130)
05/01/98 Japanese Yen 11,223,025 84,957 84,925 (32)
05/06/98 Japanese Yen 8,446,030 63,956 64,003 47
05/06/98 Japanese Yen 4,422,227 33,471 33,511 40
---------- -------- -------
$1,600,713 $383,987 $(4,431)
========== ======== =======
See notes to financial statements
</TABLE>
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1998
SCHEDULE OF OPEN FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
PRINCIPAL NET
VALUE UNREALIZED
EXPIRATION CONTRACT TO LOCAL VALUE APPRECIATION/
DATE DELIVER CURRENCY COST U.S.$ (NOTE 2) (DEPRECIATION)
<S> <C> <C> <C> <C> <C>
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS TO SELL:
01/08/99 Swiss Franc 2,525,786 $ 1,766,000 $ 1,715,907 $ 50,093
05/12/98 Swiss Franc 517,239 357,000 345,707 11,293
07/07/98 Swiss Franc 366,945 242,000 245,776 (3,776)
06/15/98 German Deutsche
Mark 315,171 173,000 176,238 (3,238)
07/07/98 German Deutsche
Mark 269,428 146,000 150,842 (4,842)
07/07/98 Spanish Peseta 74,494,000 476,000 490,332 (14,332)
07/07/98 Finnish Markka 1,618,256 289,000 298,671 (9,671)
07/07/98 French Franc 2,470,320 400,000 412,478 (12,478)
07/07/98 French Franc 2,369,365 384,000 395,627 (11,627)
05/13/98 British Pound 162,809 262,000 272,120 (10,120)
05/29/98 British Pound 443,317 725,000 740,371 (15,371)
07/30/98 British Pound 532,257 884,000 886,374 (2,374)
05/14/98 Hong Kong Dollar 2,910,733 362,000 375,686 (13,686)
05/26/98 Japanese Yen 314,053,275 2,559,000 2,393,575 165,425
01/08/99 Japanese Yen 329,532,060 2,587,000 2,622,432 (35,432)
01/28/99 Japanese Yen 25,266,160 212,000 201,548 10,452
06/16/98 Japanese Yen 58,874,771 461,000 450,364 10,636
03/15/99 Japanese Yen 363,156,987 2,953,000 2,894,101 58,899
06/15/98 Japanese Yen 76,144,364 596,000 582,382 13,618
06/16/98 Japanese Yen 111,931,000 865,000 856,219 8,781
06/25/98 Japanese Yen 76,240,720 592,000 583,982 8,018
10/28/98 Japanese Yen 65,132,100 510,000 513,025 (3,025)
07/30/98 Japanese Yen 106,940,300 820,000 830,767 (10,767)
05/06/98 Japanese Yen 4,010,352 30,347 30,390 (43)
07/07/98 Netherland Guilder 414,920 200,000 184,946 15,054
06/15/98 Norwegian Krone 4,592,918 605,000 618,160 (13,160)
05/06/98 New Zealand Dollar 60,273 33,307 32,867 440
05/05/98 New Zealand Dollar 97,786 53,998 53,495 503
----------- ----------- --------
$19,543,652 $19,354,382 $189,270
----------- ----------- --------
NET UNREALISED APPRECIATION ON OPEN FORWARD
FOREIGN CURRENCY CONTRACTS ............................................... $184,839
========
See notes to financial statements
</TABLE>
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1998
INDUSTRY DIVERSIFICATION (UNAUDITED)
<TABLE>
<CAPTION>
PERCENT OF
PORTFOLIO
---------
<S> <C>
Energy ...................................................................... 6.3%
Electric & Gas .............................................................. 0.8%
Chemicals ................................................................... 0.9%
Metals: Nonferous ........................................................... 0.8%
Miscellaneous Materials & Commodities ....................................... 1.1%
Construction & Housing ...................................................... 1.1%
Electrical & Electronics .................................................... 6.7%
Electronic Components ....................................................... 4.6%
Electronic Instruments ...................................................... 2.5%
Machinery & Engineering ..................................................... 0.5%
Appliances & Household Durables ............................................. 2.6%
Automobiles ................................................................. 4.7%
Beverages & Tobacco ......................................................... 3.2%
Food & Household Products ................................................... 3.1%
Health & Personal Care ...................................................... 7.5%
Recreation, Other Consumer Products ......................................... 0.9%
Broadcasting & Publishing ................................................... 3.8%
Business & Public Services .................................................. 1.7%
Merchandising ............................................................... 3.3%
Telecommunications .......................................................... 11.3%
Transportation: Airlines .................................................... 0.5%
Transportation: Shipping .................................................... 0.1%
Finance (Banking) ........................................................... 8.9%
Financial Services .......................................................... 2.3%
Insurance ................................................................... 3.0%
Real Estate ................................................................. 1.2%
Building Materials and Components ........................................... 1.8%
Forest Products and Paper ................................................... 0.8%
Aerospace and Military Technology ........................................... 0.7%
Industrial Technology ....................................................... 2.1%
Multi-Industry .............................................................. 3.9%
------
92.7%
Cash & Equivalent Investments ............................................... 7.3%
------
100.0%
======
See notes to financial statements
</TABLE>
<PAGE>
REPUBLIC SMALL CAP EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
APRIL 30, 1998
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- -------------------- ------ --------
<S> <C> <C>
COMMON STOCKS - 94.1%
AIRLINES - 1.1%
Atlas Air, Inc. (a) ................................ 49,200 $ 1,918,800
Skywest Inc. ....................................... 16,000 648,000
------------
2,566,800
------------
BANKS & CREDIT COMPANIES - 0.2%
TCF Financial Corp. ................................ 14,300 465,644
------------
BROADCASTING - 3.4%
American Radio Systems Corp. (a) ................... 48,485 3,215,162
Clear Channel Communications (a) ................... 10,800 1,017,900
Hearst-Argyle Television Inc. (a) .................. 13,300 473,812
Heftel Broadcasting Corp. (a) ...................... 25,500 1,118,813
Jacor Communications, Inc. (a) ..................... 28,525 1,622,359
Univision Communications Inc. ...................... 18,700 716,444
------------
8,164,490
------------
BUILDING - 1.2%
Newport News Shipbuilding .......................... 106,400 2,892,750
------------
BUSINESS SERVICES - 15.7%
Accustaff, Inc. (a) ................................ 101,964 3,657,958
Carey International, Inc. (a) ...................... 1,000 22,750
Claremont Technology Group (a) ..................... 14,800 347,800
Dendrite International, Inc. (a) ................... 38,162 1,218,799
Diamond Technology Partners Inc. (a) ............... 1,800 50,400
DST Systems, Inc. (a) .............................. 76,430 4,213,204
Equity Corporation International (a) ............... 60,085 1,490,859
Fine Host Corp. (a) ................................ 42,200 203,088
Fiserv, Inc. (a) ................................... 52,850 3,455,069
Franklin Covey Co. (a) ............................. 21,400 535,000
Galileo International Inc. ......................... 27,900 1,126,463
Global Directmail Corp. (a) ........................ 86,350 1,532,712
Interim Services, Inc. (a) ......................... 116,924 3,814,646
International Network Services (a) ................. 22,300 749,837
May & Speh, Inc. (a) ............................... 114,100 1,697,238
Memberworks Inc. (a) ............................... 18,500 568,875
META Group, Inc. (a) ............................... 44,380 1,536,658
National Processing, Inc. (a) ...................... 73,500 923,344
PMT Services (a) ................................... 106,700 2,080,650
Provant Inc. (a) ................................... 300 5,588
Snyder Communications, Inc. (a) .................... 11,627 494,147
SPS Transaction Services Corp. (a) ................. 51,690 1,592,698
Superior Consultant Holdings (a) ................... 18,100 697,981
Technology Solutions Co. (a) ....................... 74,750 2,401,344
TeleTech Holdings, Inc. (a) ........................ 50,800 762,000
Transaction Systems Architects, Inc. - Class A (a) . 49,535 2,080,470
Walsh International (a) ............................ 45,480 673,673
------------
37,933,251
------------
COMPUTER & OFFICE EQUIPMENT - 4.6%
Affiliated Computer Services (a) ................... 192,105 6,747,688
Ceridian Corp. (a) ................................. 31,800 1,798,687
Corporate Express, Inc. (a) ........................ 98,200 988,137
Viking Products, Inc. (a) .......................... 67,300 1,627,819
------------
11,162,331
------------
COMPUTER SOFTWARE & SERVICES - 16.8%
American Business Information, Inc. - Class A (a) .. 66,345 895,658
American Business Information, Inc. - Class B (a) .. 57,845 824,291
Aspen Technologies, Inc. (a) ....................... 52,800 2,580,600
Black Box Corp. (a) ................................ 21,900 728,175
BMC Software, Inc. ................................. 46,400 846,800
Cadence Design Systems, Inc. (a) ................... 183,466 6,662,109
Catalyst International, Inc. (a) ................... 14,850 206,044
Clarify, Inc. (a) .................................. 29,100 400,125
Computer Learning Center (a) ....................... 113,100 1,357,200
Compuware Corp. (a) ................................ 56,600 2,766,325
Comverse Technology Inc. (a) ....................... 18,600 881,175
Edify Corporation (a) .............................. 41,000 445,875
Fair, Isaac & Co, Inc. ............................. 28,400 1,128,900
Harbinger Corp. (a) ................................ 33,500 1,218,563
IKOS Systems, Inc. (a) ............................. 41,400 263,925
Intelligroup, Inc. (a) ............................. 12,800 262,400
Mecon, Inc. (a) .................................... 39,500 441,906
Peerless Systems Corp. (a) ......................... 31,700 556,731
RWD Technologies, Inc. (a) ......................... 6,000 151,500
SCB Computer Technology, Inc. (a) .................. 26,540 318,480
Scopus Technogy, Inc. (a) .......................... 24,200 453,750
Security Dynamics Technologies, Inc. (a) ........... 53,600 1,293,100
Simulation Sciences, Inc. (a) ...................... 88,700 884,224
Sterling Software, Inc. (a) ........................ 131,100 3,465,956
Summit Design, Inc. (a) ............................ 76,900 1,187,144
SunGard Data Systems, Inc. (a) ..................... 91,252 3,250,852
Synopsys, Inc. (a) ................................. 105,818 4,550,174
USCS International, Inc. (a) ....................... 64,200 1,292,025
Vantive Corp. (a) .................................. 27,300 873,600
Xionics Document Tech, Inc. (a) .................... 75,000 450,000
------------
40,637,607
------------
CONSTRUCTION SERVICES - 0.2%
Barnett, Inc. (a) .................................. 21,135 427,984
------------
CONSUMER GOODS & SERVICES - 1.2%
Alternative Resources Corp. (a) .................... 29,870 593,666
Blyth Industries, Inc. (a) ......................... 39,475 1,448,239
Dial Corp. ......................................... 19,100 465,562
US Rentals, Inc. (a) ............................... 12,500 371,875
------------
2,879,342
------------
CONTAINERS - 0.8%
Aptargroup, Inc. (a) ............................... 9,100 568,750
Stone Container Corp. .............................. 85,300 1,396,788
------------
1,965,538
------------
ELECTRONICS - 2.6%
Actel Corp. (a) .................................... 35,700 531,037
Belden, Inc. ....................................... 33,645 1,394,165
International Rectifier Corp. (a) .................. 76,800 902,400
Microchip Technology, Inc. (a) ..................... 30,682 870,602
PMC-Sierra, Inc. (a) ............................... 44,700 2,033,850
TriQuint Semiconductor, Inc. (a) ................... 23,600 539,850
------------
6,271,904
------------
ELECTRICAL EQUIPMENT - 5.4%
AFC Cable Systems, Inc. (a) ........................ 24,100 837,475
Anadigics Inc. (a) ................................. 34,000 567,375
Analog Devices (a) ................................. 78,440 3,054,258
Burr - Brown Corp. (a) ............................. 73,843 2,247,596
Dupont Photomasks, Inc. (a) ........................ 23,315 1,264,839
Lattice Semiconductor Corp. (a) .................... 28,200 1,286,625
Phototronics, Inc. (a) ............................. 61,600 2,271,500
Sipex Corporation (a) .............................. 9,100 180,863
Ultratech Stepper, Inc. (a) ........................ 19,800 486,338
VLSI Technology Inc. (a) ........................... 41,500 855,938
------------
13,052,807
------------
FINANCIAL SERVICES - 2.0%
BA Merchant Services, Inc. - Class A (a) ........... 34,000 510,000
Franklin Resources, Inc. ........................... 2,060 110,210
Conning Corp. ...................................... 21,100 432,550
NOVA Corporation (a) ............................... 28,000 952,000
Paymentech, Inc. (a) ............................... 52,500 1,007,344
Sirrom Capital Corp. ............................... 17,700 528,788
Waddell & Reed Financial Class A ................... 53,000 1,311,750
------------
4,852,642
------------
FOOD & BEVERAGE PRODUCTS - 1.5%
Buffetts, Inc. (a) ................................. 97,194 1,439,686
Robert Mondavi Corp. Class A (a) ................... 23,000 908,500
Tootsie Roll Industries, Inc. ...................... 17,613 1,276,943
------------
3,625,129
------------
INSURANCE - 0.9%
Annuity and Life Re Holdings Ltd. (a) .............. 800 19,100
Executive Risk, Inc. ............................... 15,900 1,060,331
Life Re Corp. ...................................... 11,400 820,800
Penncorp Financial Group, Inc. ..................... 8,300 215,800
------------
2,116,031
------------
MEDICAL & HEALTH PRODUCTS - 3.4%
CYTYC Corp. (a) .................................... 45,900 665,550
Datascope Corp. (a) ................................ 9,300 261,562
IDEXX Laboratories, Inc. (a) ....................... 167,500 3,705,937
KOS Pharmaceuticals, Inc. (a) ...................... 31,200 351,000
Megabios Corp. (a) ................................. 13,900 88,613
NCS HealthCare, Inc. - Class A (a) ................. 53,100 1,559,813
PSS World Medical Inc. (a) ......................... 48,000 1,077,000
Transition Systems, Inc. (a) ....................... 23,700 533,250
------------
8,242,725
------------
MEDICAL HEALTH TECHNOLOGY & SERVICES - 9.4%
Amerisource Health Corp. - Class A (a) ............. 45,200 2,463,400
Apache Medical Systems, Inc. (a) ................... 14,300 44,688
Concentra Managed Care, Inc. (a) ................... 73,883 2,299,608
Genesis Health Ventures, Inc. (a) .................. 9,715 256,840
HCIA, Inc. (a) ..................................... 64,200 718,237
Healthsouth Corp. (a) .............................. 72,887 2,200,276
Hologic, Inc. (a) .................................. 47,600 1,118,600
IDX Systems Corp. (a) .............................. 39,900 1,738,144
Mariner Health Group, Inc. (a) ..................... 22,800 413,250
Ocular Sciences Inc. (a) ........................... 2,500 70,000
Orthodonic Centers of America (a) .................. 30,900 660,488
Pediatric Services of America (a) .................. 46,060 875,140
Province Healthcare Co. (a) ........................ 7,500 207,188
Quorum Health Group, Inc. (a) ...................... 74,100 2,380,462
Renal Care Group, Inc. (a) ......................... 17,100 654,075
Steris Corp. (a) ................................... 38,800 2,281,925
Total Renal Care Holdings, Inc. (a) ................ 130,192 4,312,610
------------
22,694,931
------------
NON RETAIL STORES - 0.2%
Micro Warehouse, Inc. (a) .......................... 36,880 576,250
------------
576,250
------------
OIL SERVICES - 1.8%
Dril-Quip, Inc. (a) ................................ 14,400 517,500
Global Industries Ltd. (a) ......................... 90,800 2,060,025
National-Oilwell, Inc. (a) ......................... 16,700 633,556
Weatherford Enterra, Inc. (a) ...................... 24,600 1,231,537
------------
4,442,618
------------
OIL - 0.2%
Newfield Exploration Co. (a) ....................... 21,000 509,250
------------
509,250
------------
PRINTING & PUBLISHING - 1.3%
Applied Graphics Technologies, Inc. (a) ............ 15,800 790,000
Harte Hanks Communications ......................... 37,600 853,050
Scholastic Corp. (a) ............................... 37,800 1,408,050
------------
3,051,100
------------
REAL ESTATE - 0.3%
Kilroy Realty Corp. ................................ 22,800 604,200
------------
604,200
------------
RESTAURANTS LODGING & HOSPITALITY - 4.8%
Applebee's International, Inc. ..................... 40,345 1,003,582
Capstar Hotel Co. (a) .............................. 55,100 1,770,087
Four Seasons Hotels Inc. ........................... 11,800 401,937
Harrah's Entertainment, Inc. (a) ................... 76,865 2,003,294
Interstate Hotels Co. (a) .......................... 50,800 1,676,400
Outback Steakhouse, Inc. (a) ....................... 34,985 1,333,803
Patriot American Hospitility Inc. .................. 33,957 857,414
Prime Hospitality Corp. (a) ........................ 32,900 680,619
Promus Hotel Corp. (a) ............................. 10,640 480,795
Sholodge, Inc. (a) ................................. 12,600 121,275
Sonic Corp. (a) .................................... 27,285 873,120
Suburban Lodges of America (a) ..................... 16,900 312,650
TaCo Cabana - Class A (a) .......................... 22,020 145,883
------------
11,660,859
------------
RETAIL STORES - 5.6%
Ann Taylor Stores Corp. (a) ........................ 56,500 900,469
BJ'S Wholesale Club Inc. (a) ....................... 12,200 488,762
CSK Auto Corp. (a) ................................. 36,800 993,600
Duane Reade Inc. (a) ............................... 24,500 581,875
Fred Myer Inc. (a) ................................. 57,270 2,569,991
General Nutrition Companies (a) .................... 17,400 624,225
Gymboree Corp. (a) ................................. 26,000 477,750
Mazel Stores, Inc. (a) ............................. 39,800 696,500
Petco Animal Supplies, Inc. (a) .................... 64,100 1,265,975
Regis Corp. ........................................ 49,700 1,410,238
Rite Aid Corp. (a) ................................. 78,398 2,518,536
US Office Products Co. (a) ......................... 55,100 974,581
------------
13,502,502
------------
SPECIAL PRODUCTS & SERVICES - 3.4%
Catalina Marketing Corp. (a) ....................... 28,900 1,502,800
Central Parking Corp. .............................. 14,905 698,672
Gemstar International Group Ltd. (a) ............... 94,000 3,630,750
Learning Tree International, Inc. (a) .............. 101,800 2,436,837
------------
8,269,059
------------
TELECOMMUNICATIONS - 4.9%
Aspect Telecommunications Corp. (a) ................ 122,000 3,507,500
Cable Design Technologies (a) ...................... 45,347 1,207,364
Intermedia Communications, Inc. (a) ................ 35,600 2,598,241
Lightbridge Inc. (a) ............................... 45,600 547,200
Natural Microsystems Corp. (a) ..................... 8,300 267,675
NEXTLINK Communications, Inc. (a) .................. 39,200 1,176,000
Proxim, Inc. (a) ................................... 37,400 561,000
Smartalk Teleservices Inc. (a) ..................... 3,400 67,575
Transaction Network Services (a) ................... 70,100 1,428,287
VDI Media (a) ...................................... 18,800 343,100
------------
11,703,942
------------
WASTE - 0.4%
Superior Services, Inc. (a) ........................ 28,700 932,750
------------
932,750
------------
OTHER - 0.8%
Student Loan Corp. ................................. 40,200 2,004,975
------------
TOTAL COMMON STOCKS (COST $179,725,270) ............ 227,209,411
------------
PRINCIPAL
AMOUNT
US GOVERNMENT AGENCY OBLIGATIONS - 5.2%
Federal Home Loan Mortgage Corp., due 05/01/98, 5.45% $ 2,000,000 2,000,000
Federal Home Loan Mortgage Corp., due 05/04/98, 5.40% 5,500,000 5,497,525
Federal National Mortgage Association, due 05/01/98, 5.38% 5,100,000 5,100,000
------------
TOTAL US GOVERNMENT AGENCY OBLIGATIONS
(COST $12,591,698) ......................................... 12,597,525
------------
TOTAL INVESTMENTS - 99.3%
(Identified Cost $192,319,443) ............................. 239,806,936
OTHER ASSETS IN EXCESS OF LIABILTIES - 0.7% 1,536,511
------------
TOTAL NET ASSETS - 100.0% .................................... $241,343,447
============
- ----------------------------------------------------------------------------------------
(a) Non-Income Producing Security
ADR - American Depository Receipt
See notes to financial statements
</TABLE>
<PAGE>
REPUBLIC PORTFOLIOS
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
FIXED INTERNATIONAL SMALL CAP
INCOME EQUITY EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS:
Investments in securities, at value (cost
$173,474,152, $223,235,911, and
$192,319,443, respectively) .............. $174,724,949 $247,267,128 $239,806,934
Receivable for investments sold ............ 41,959,500 137,940 2,529,969
Interest receivable ........................ 1,300,516 2,718 --
Dividends receivable ....................... -- 860,244 6,148
Cash ....................................... 3,175,969 81,030 97,215
Unrealized appreciation on open forward
foreign currency contracts ............... 8,936 352,022 --
Unamortized organization expenses .......... 23,275 22,645 28,240
------------ ------------ ------------
Total Assets ................................. 221,193,145 248,723,727 242,468,506
------------ ------------ ------------
LIABILITIES:
Payable for investments purchased .......... 86,281,254 734,209 488,441
Variation margin payable on futures
contracts 220,156 -- --
Unrealized depreciation on open forward
foreign currency contracts ............... -- 167,183 --
Sub-advisory fees payable .................. 145,901 99,769 407,531
Investment Management fees payable ......... 61,304 131,564 127,400
Audit fees payable ......................... 14,824 14,824 14,824
Custodian fees payable ..................... 11,133 53,648 32,201
Legal fees payable ......................... 14,747 33,755 30,265
Administration fees payable ................ 4,871 9,930 12,019
Fund accounting fees payable ............... 6,541 8,135 6,616
Other accrued expenses ..................... 2,815 22,986 5,762
------------ ------------ ------------
Total Liabilities ............................ 86,763,546 1,276,003 1,125,059
------------ ------------ ------------
NET ASSETS:
Applicable to investors' beneficial interest $134,429,599 $247,447,724 $241,343,447
============ ============ ============
See notes to financial statements.
</TABLE>
<PAGE>
REPUBLIC PORTFOLIOS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
FIXED INTERNATIONAL SMALL CAP
INCOME EQUITY EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
---------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income ................................ $4,181,565 $ 201,750 $ 319,488
Dividend income (net of foreign withholding tax
of $0, $260,982 and $850, respectively) ...... 150,342 2,073,810 123,148
---------- ----------- -----------
Total Investment Income .......................... 4,331,907 2,275,560 442,636
---------- ----------- -----------
EXPENSES:
Investment manager and sub-advisory fees ....... 301,502 791,236 933,556
Administration fees ............................ 32,266 54,651 53,282
Fund accounting fees ........................... 19,910 24,797 19,910
Custodian fees and expenses .................... 29,393 139,124 66,823
Audit fees ..................................... 8,869 8,869 8,869
Amortization of organization expenses .......... 6,697 6,878 3,982
Legal fees ..................................... 11,222 22,806 21,177
Trustees' fees ................................. 905 1,810 1,810
Insurance expense .............................. 1,448 2,896 2,715
Other expenses ................................. 15,005 26,247 15,023
---------- ----------- -----------
Total expenses ............................. 427,217 1,083,570 1,127,147
Voluntary fee reductions ................... -- -- (59,125)
---------- ----------- -----------
Total net expenses ......................... 427,217 1,079,314 1,068,022
---------- ----------- -----------
Net Investment Income (Loss) ..................... 3,904,690 1,196,246 (625,386)
---------- ----------- -----------
NET REALIZED/UNREALIZED GAINS (LOSSES) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gains (losses) on:
Investment transactions ...................... 1,631,202 11,191,739 15,202,865
Foreign currency transactions ................ 41,467 1,632,725 --
Futures ...................................... 20,216 -- --
Net unrealized appreciation (depreciation) on
investments .................................. (1,273,092) 20,794,272 19,243,231
Net unrealized appreciation (depreciation) on
foreign currency transactions ................ 47,186 (23,411) --
Net unrealized appreciation on futures contracts 102,740 -- --
---------- ----------- -----------
Net realized/unrealized gains on investments and
foreign currency transactions .................. 569,719 33,595,325 34,446,096
---------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS ..................................... $4,474,409 $34,791,571 $33,820,710
========== =========== ===========
See notes to financial statements.
</TABLE>
<PAGE>
REPUBLIC FIXED INCOME PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED FOR THE
APRIL 30, YEAR ENDED
1998 OCTOBER 31,
(UNAUDITED) 1997
------------ ------------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income .............................. $ 3,904,690 $ 5,693,664
Net realized gains on investment transactions,
foreign currency transactions and futures ........ 1,692,885 1,474,742
Net change in unrealized appreciation on
investments, foreign currency and futures ........ (1,123,166) 1,574,239
------------ ------------
Change in net assets resulting from operations ....... 4,474,409 8,742,645
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Contributions ...................................... 24,569,606 59,757,590
Withdrawals ........................................ (17,971,207) (14,273,669)
------------ ------------
Change in net assets from capital share transactions . 11,550,242 45,483,921
------------ ------------
CHANGE IN NET ASSETS ................................. 16,024,651 54,226,566
NET ASSETS:
Beginning of period ................................ 118,404,948 64,178,382
------------ ------------
End of period ...................................... $134,429,599 $118,404,948
============ ============
See notes to financial statements.
</TABLE>
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED FOR THE
APRIL 30, YEAR ENDED
1998 OCTOBER 31,
(UNAUDITED) 1997
------------ ------------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income ............................... $ 1,196,246 $ 1,806,052
Net realized gains on investment transactions,
foreign currency transactions and futures ......... 12,824,464 10,878,480
Net change in unrealized appreciation on investments,
foreign currency and futures ...................... 20,770,861 11,662,650
------------ ------------
Change in net assets resulting from operations ........ 34,791,571 24,347,182
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Contributions ....................................... 24,569,606 84,915,450
Withdrawals ......................................... (19,042,528) (37,372,081)
------------ ------------
Change in net assets from capital share transactions .. 5,527,078 47,543,369
------------ ------------
CHANGE IN NET ASSETS .................................. 40,318,649 71,890,551
NET ASSETS:
Beginning of period ................................. 207,129,075 135,238,524
------------ ------------
End of period ....................................... $247,447,724 $207,129,075
============ ============
See notes to financial statements.
</TABLE>
<PAGE>
REPUBLIC SMALL CAP EQUITY PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED FOR THE
APRIL 30, YEAR ENDED
1998 OCTOBER 31,
(UNAUDITED) 1997
------------ ------------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment loss ................................. $ (625,386) $ (559,423)
Net realized gains on investment transactions ....... 15,202,865 20,375,972
Net change in unrealized appreciation on investments 19,243,231 23,351,706
------------ ------------
Change in net assets resulting from operations ........ 33,820,710 43,168,255
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Contributions ....................................... 29,875,081 79,877,809
Withdrawals ......................................... (36,092,186) (29,207,088)
------------ ------------
Change in net assets from capital share transactions (6,217,105) 50,670,721
------------ ------------
CHANGE IN NET ASSETS .................................. 27,603,605 93,838,976
NET ASSETS:
Beginning of period ................................. 213,739,842 119,900,866
------------ ------------
End of period ....................................... $241,343,447 $213,739,842
============ ============
See notes to financial statements.
</TABLE>
<PAGE>
REPUBLIC PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 1998
(UNAUDITED)
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 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
investments from fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
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 counterparts to meet the terms of their contracts.
The summary of open financial futures contracts at April 30, 1998 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 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 is 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 on a
straight-line basis over a five year period from the commencement of
operations.
3. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT MANAGEMENT:
Republic 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 period ended
April 30, 1998 the Manager waived $59,125 of its fee on the Small Cap
Equity 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 period ended April 30, 1998 the sub-advisory
fees for each Portfolio were as follows:
Fixed Income Portfolio ..................................... $174,382
International Equity Portfolio ............................. 513,723
Small Cap Equity Portfolio ................................. 680,147
ADMINISTRATION:
Pursuant to an administrative services agreement, 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 net assets; 0.04% of the next $1 billion of
such assets; and 0.035% of such assets in excess of $2 billion. For the
period ended April 30, 1998 BISYS earned the following fees as
Administrator for each Portfolio.
Fixed Income Portfolio ...................................... $32,266
International Equity Portfolio .............................. 54,651
Small Cap Equity Portfolio .................................. 53,282
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 period
ended April 30, 1998, the following fees were incurred for these services.
Fixed Income Portfolio ...................................... $19,910
International Equity Portfolio .............................. 24,797
Small Cap Equity Portfolio .................................. 19,910
TRUSTEES' FEES:
The fees paid and out-of-pocket expenses reimbursed to the Trustees for
the year ended April 30, 1998 were as follows:
Fixed Income Portfolio ....................................... $ 905
International Equity Portfolio ............................... 1,810
Small Cap Equity Portfolio ................................... 1,810
CUSTODY:
The custody function was transferred to Republic National Bank of New York
effective from December 1, 1997 for the Funds and the Portfolios excluding
the International Equity Portfolio for which IBT continues to serve as
custodian.
REIMBURSEMENT AND WAIVER OF EXPENSES:
The Manager has voluntarily agreed to waive a portion of its fees, for
certain expenses. For the period ended April 30, 1998 expenses of the
Republic Portfolios were voluntarily reduced by amounts as detailed below:
AMOUNTS
WAIVED
------
Small Cap Equity Portfolio .................................. $59,125
4. INVESTMENT TRANSACTIONS. During the year ended April 30, 1998, each
Portfolio purchased and sold portfolio securities, excluding short-term
securities, in the following amounts:
PURCHASES SALES
--------- -----
Fixed Income Portfolio ............. $201,938,589 $138,188,362
International Equity Portfolio ..... 43,493,369 40,802,333
Small Cap Equity Portfolio ......... 66,038,954 77,432,778
<PAGE>
REPUBLIC FIXED INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE FOR THE PERIOD
SIX MONTHS JANUARY 9, 1995
ENDED FOR THE FOR THE (COMMENCEMENT
APRIL 30, YEAR ENDED YEAR ENDED OF OPERATIONS) TO
1998 OCTOBER 31, OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1997 1996 1995
----------- ----------- ----------- -----------------
<S> <C> <C> <C> <C>
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of year (000) $134,430 $118,405 $64,178 $30,023
Ratio of expenses to average
net assets ..................... 0.66%(b) 0.57% 0.67% 0.46%(b)
Ratio of net investment
income to average net assets ... 6.04%(b) 6.17% 5.66% 6.04%(b)
Ratio of expenses to average
net assets (a) ................. 0.66%(b) 0.77% 0.90% 1.00%(b)
Ratio of net investment
income to average net assets (a) 6.04%(b) 5.97% 5.43% 5.51%(b)
Portfolio turnover ............... 101.16% 349.00% 152.00% 100.00%
(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.
See notes to financial statements.
</TABLE>
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE FOR THE PERIOD
SIX MONTHS JANUARY 9, 1995
ENDED FOR THE FOR THE (COMMENCEMENT
APRIL 30, YEAR ENDED YEAR ENDED OF OPERATIONS) TO
1998 OCTOBER 31, OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1997 1996 1995
----------- ----------- ----------- -----------------
<S> <C> <C> <C> <C>
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year (000) $247,448 $207,129 $135,239 $39,929
Ratio of expenses to average
net assets ................ 0.98%(b) 0.76% 0.83% 0.64%(b)
Ratio of net investment
income to average net assets ... 1.10%(b) 1.21% 1.14% 1.55%(b)
Ratio of expenses to average
net assets (a) ............ 0.98%(b) 1.01% 1.10% 1.39%(b)
Ratio of net investment
income to average net assets (a) 1.10%(b) 0.96% 0.87% 0.80%(b)
Portfolio turnover .......... 18.99% 30.00% 23.30% 3.07%
Average commission rate paid (c) $0.0164 $0.0020 $0.0030 --
(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) 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>
<PAGE>
REPUBLIC SMALL CAP EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SEPTEMBER 3,
SIX MONTHS FOR THE 1996
ENDED YEAR (COMMENCEMENT
APRIL 30, ENDED OF OPERATIONS) TO
1998 OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1997 1996
----------- ----------- ------------------
<S> <C> <C> <C>
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of year (000's) ......... $241,343 $213,740 $119,901
Ratio of expenses to average net assets 1.00%(b) 0.84% 0.82%(b)
Ratio of net investment loss to average net
assets ................................... (0.59%)(b) (0.33%) (0.11%)(b)
Ratio of expenses to average net assets (a) 1.06%(b) 1.09% 1.10%(b)
Ratio of net investment loss to average net
assets (a) ............................... (0.65%)(b) (0.58%) (0.39%)(b)
Portfolio turnover ........................ 31.85% 92.18% 50.55%
Average commission rate paid (c) ........... $0.0567 $0.0566 $0.0093
(a) During the period, 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.
See notes to financial statements.
</TABLE>
<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 AND CUSTODIAN 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
200 Clarendon Street -- 16th Floor
Boston, MA 02116 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
1775 Eye Street N.W.
Washington, D.C. 20006
RFFRC (6/98)
