<PAGE>
PRESIDENT'S MESSAGE
June 1996
Dear Shareholder:
We are pleased to present you with the Republic International Equity Fund
semi-annual report for the six months ended April 30, 1996. In this report, we
have provided you with a letter from the Investment Manager, Republic National
Bank of New York.
We hope you find this letter 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 six months ended April
30, 1996 also follow. We look forward to servicing your financial needs and
appreciate your continued support.
Respectfully submitted,
/s/ Philip W. Coolidge
-------------------------
Philip W. Coolidge
President
<PAGE>
LETTER TO SHAREHOLDERS FROM INVESTMENT MANAGER
June 1996
Dear Shareholder:
We are pleased to present the semi-annual report for the Republic
International Equity Fund (the "Fund") covering the six month period ending
April 30, 1996. The performance of the Fund was strong as stock markets around
the world continued to surge ahead. For the six month period, the Fund
produced a total return of 11.20%, compared to 12.09% for the Lipper
International Equity Fund Index and 13.38% for the Morgan Stanley Capital
International EAFE Index (EAFE). For the twelve months ending April 30, 1996
the Fund returned 17.97%, outpacing both the Lipper Index return of 17.32% and
the EAFE return of 11.73%. Standardized average annual total returns as of the
most recent calendar quarter are presented below.
Solid results were achieved despite considerable volatility in both bond
and stock markets around the world. The period began with expectations of
further easings by the Federal Reserve to stimulate what appeared to be a
softening US economy. While the Fed did lower short-term rates in December
1995 and again in January 1996, subsequently released economic reports were
brighter than expected, reducing fears of a US recession and the prospects for
further Fed easings. In Japan, data showed the economy was responding well to
the vigorous loosening of monetary and fiscal policy. In Europe, there were
generally few favorable economic developments, however, investors were
anticipating that private consumption and improved exports would lead to
better readings as 1996 progressed. In the Pacific ex-Japan region, economic
growth rates remained higher than in the more industrialized markets, which
continued to attract investors.
As of April 30, 1996 the Republic International Equity Portfolio (the
"Portfolio"), in which the Fund invests all of its investable assets, was
broadly diversified with 137 equity holding representing 26 countries. The
equity portfolio's weightings by geographical region were: 45.7% Europe, 29.8%
Japan, 14.9% Pacific ex-Japan and 9.6% in other regions. The five largest
holdings represented 8.7% of the equity portfolio: Astra AB (Sweden -- health
& personal care), Mannesman AG (Germany -- machinery & engineering),
Bridgestone Corp. (Japan -- industrial components), Sankyo Co. (Japan --
health & personal care) and Philips Electronics (Netherlands -- electrical &
electronics). As compared to the EAFE benchmark, the Portfolio was most
significantly overweighted in Sweden, Canada and Australia and underweighted
in Japan.
We thank you for your continued support.
Sincerely,
Republic National Bank
Standardized Average Annual Total Returns
One Since
As of March 31, 1996 Year Inception*
- ------------------------------ -------- ---------
Republic International Equity Fund 17.45% 13.19%
Lipper International Equity Fund Index 17.80% 13.85%
Morgan Stanley Capital EAFE Index 12.67% n/a
*January 9, 1995
Lipper International Equity Fund Index: is an equally weighted index composed
of the 30 largest mutual funds in this universe.
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.
As with any fund, the performance data quoted represents past performance and
is no guarantee of future results.
<PAGE>
REPUBLIC INTERNATIONAL EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 1996
ASSETS:
Investment in Republic International Equity Portfolio
("Portfolio"), at value (Note 1) ......................... $80,513,933
Tax reclaim receivable ..................................... 43,475
Deferred organization expenses (Note 2) .................... 42,869
-----------
Total Assets ......................................... 80,600,277
-----------
LIABILITIES:
Administration fee payable (Note 3) ........................ 2,271
Other accrued expenses ..................................... 34,538
-----------
Total Liabilities .................................... 36,809
-----------
NET ASSETS:
Applicable to 6,789,373 shares of beneficial interest
outstanding (par value $0.001, unlimited number of
authorized shares) ....................................... $80,563,468
===========
REPRESENTED BY:
Paid-in capital ............................................ $73,203,495
Undistributed net investment income ........................ 65,437
Net unrealized appreciation from Portfolio ................. 6,803,032
Accumulated net realized gain from Portfolio ............... 491,504
-----------
Net Assets ........................................... $80,563,468
===========
Net Asset Value Per Share .................................. $11.87
======
See accompanying notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY FUND
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED APRIL 30, 1996
NET INVESTMENT INCOME FROM PORTFOLIO (NOTE 2):
Dividend income (net of foreign withholding tax $74,158) ........ $ 443,002
Interest income ................................................. 153,416
Allocated expenses .............................................. (229,418)
----------
Net investment income from Portfolio ........................ 367,000
EXPENSES (NOTE 2):
Registration fees ................................. $ 42,081
Transfer agent fees ............................... 26,284
Administration fees ............................... 14,224
Audit ............................................. 10,132
Printing .......................................... 8,611
Fund accounting fees .............................. 6,000
Amortization of organization expenses (Note 2) .... 5,791
Trustees' fees and expenses ....................... 3,798
Insurance ......................................... 2,266
Legal ............................................. 704
Miscellaneous ..................................... 3,343
---------
Total expenses .................................. 123,234
Less: waiver of fees ............................ (9,737)
---------
Net expenses ................................................ 113,497
----------
NET INVESTMENT INCOME ........................................... 253,503
----------
NET REALIZED AND UNREALIZED GAIN FROM PORTFOLIO:
Net realized gain on:
Investments ................................................. 602,697
Foreign currency transactions ............................... 229,888
Net unrealized appreciation from Portfolio ...................... 5,167,099
----------
Net realized and unrealized gain from Portfolio ................. 5,999,684
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............ $6,253,187
==========
See accompanying notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD
FOR THE JANUARY 9, 1995
SIX MONTHS (COMMENCEMENT
ENDED OF OPERATIONS)
APRIL 30, 1996 TO
(UNAUDITED) OCTOBER 31, 1995
--------------- ----------------
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income ..................... $ 253,503 $ 217,620
Net realized gain (loss) from Portfolio ... 832,585 (93,408)
Net unrealized appreciation from Portfolio 5,167,099 1,635,933
----------- -----------
Net increase in net assets resulting
from operations ..................... 6,253,187 1,760,145
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ..................... (552,556) (69,610)
Net realized capital gains ................ (31,193) --
----------- -----------
Total distributions to shareholders ... (583,749) (69,610)
----------- -----------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST:
Proceeds from sales of shares ............. 41,464,036 32,852,624
Net asset value of shares issued to
shareholders from reinvestment of dividends 549,683 69,610
Cost of shares redeemed ................... (1,363,718) (368,840)
----------- -----------
Net increase in net assets resulting
from capital share transactions ..... 40,650,001 32,553,394
----------- -----------
TOTAL INCREASE IN NET ASSETS .............. 46,319,439 34,243,929
NET ASSETS:
Beginning of period ................... 34,244,029 100
----------- -----------
End of period (including undistributed
net investment income of $65,437) and
$23,782, respectively) .............. $80,563,468 $34,244,029
=========== ===========
OTHER INFORMATION:
Shares sold ............................... 3,688,325 3,201,989
Shares issued in reinvestment of dividends 49,521 6,700
Shares redeemed ........................... (120,204) (36,958)
----------- -----------
Net increase in shares outstanding .... 3,617,642 3,171,731
=========== ===========
See accompanying notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
FOR THE PERIOD
FOR THE JANUARY 9, 1995
SIX MONTHS (COMMENCEMENT
ENDED OF OPERATIONS)
APRIL 30, 1996 TO
(UNAUDITED) OCTOBER 31, 1995
--------------- ----------------
SELECTED PER SHARE DATA FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD:
Net asset value, beginning of period ...... $10.80 $10.00
----- -----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ..................... 0.11 0.08
Net realized and unrealized gain from
Portfolio ............................... 1.13 0.75
----- -----
Total increase from investment operations.. 1.24 0.83
----- -----
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ..................... (0.16) (0.03)
Net realized capital gains ................ (0.01) --
----- -----
Total distributions to shareholders ....... (0.17) (0.03)
----- -----
Net asset value, end of period ............ $11.87 $10.80
====== ======
TOTAL RETURN ................................ 11.20%(a) 8.31%(a)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ...... $80,563 $34,244
Ratio of expenses to average net assets (b) 1.21%(c) 1.14%(c)
Ratio of net investment income to average
net assets (b) .......................... 0.89%(c) 1.26%(c)
- ------------------------------------------------------------------------------
(a) Not annualized.
(b) Reflects a voluntary expense limitation by affiliated parties of the Fund.
If this limitation had not been in effect, the annualized ratios of
expenses and net investment income to average net assets for the six
months ended April 30, 1996 and the period January 9, 1995 (commencement
of operations) to October 31, 1995 would have been:
Ratio of expenses to average net
assets .............................. 1.33%(c) 2.12%(c)
Ratio of net investment income to
average net assets .................. 0.77%(c) 0.28%(c)
(c) Annualized.
See accompanying notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
APRIL 30, 1996
1. DESCRIPTION AND SHARES OF THE FUND. Republic International Equity Fund
(the "Fund") is a diversified separate series of the Republic Funds (the
"Trust"), a Massachusetts business trust organized on April 22, 1987,
which currently consists of six portfolios, each of which has different
and distinct investment objectives and policies. The Fund commenced
operations on January 9, 1995. The financial statements for the other five
portfolios are presented separately. The Declaration of Trust permits the
Trustees to create additional portfolios. The Trust is registered under
the Investment Company Act of 1940, as amended (the "Act"), as an open-
end, diversified management investment company.
The Fund's investment objective is to seek long-term growth of capital
and future income by investing 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 Fund invests all of its investable assets in the
Republic International Equity Portfolio (the "Portfolio"). The Portfolio
is a diversified open-end management investment company which has the same
investment objective as the Fund. The value of such investment reflects
the Fund's proportionate interest (75.3% at April 30, 1996) in the net
assets of the Portfolio. The performance of the Fund is directly affected
by the performance of the Portfolio. The financial statements of the
Portfolio, including the schedule of investments, are included elsewhere
in this report and should be read in conjunction with the Fund's financial
statements.
Republic National Bank of New York ("Republic" or the "Manager") acts
as Investment Manager to the Portfolio, Capital Guardian Trust Company
acts as Sub-Adviser (the "Sub-Adviser") to the Portfolio and Signature
Broker-Dealer Services, Inc. ("Signature") acts as Administrator of the
Trust and the Portfolio and Distributor and Sponsor ("Sponsor") of the
Trust.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements
in conformity with generally accepted accounting principals requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates. The following is a summary of
the significant accounting policies of the Fund:
(A) Investment Valuation: Valuation of securities by the Portfolio is
discussed in Note 1 of the Portfolio's Notes to Financial Statements which
are included elsewhere in this report.
(B) Investment Income: All the net investment income and realized and
unrealized gain and loss of the Portfolio is allocated pro rata among the
Fund and other investors in the Portfolio each day.
(C) Dividends and Distributions: Dividends substantially equal to all
of the Fund's net investment income earned are distributed to the Fund
shareholders of record semi-annually. Generally, the Fund's net investment
income consists of the interest and dividend income it earns, less
expenses.
The Fund's net realized short-term and long-term capital gains, if
any, are distributed to shareholders annually. Additional distributions
are also made to the Fund's shareholders to the extent necessary to avoid
application of the 4% non-deductible federal excise tax.
The Fund accounts for and reports distributions to shareholders in
accordance with Statement of Position 93-2 "Determination, Disclosure, and
Financial Statement Presentation of Income, Capital Gain, and Return of
Capital Distributions by Investment Companies". The effect of applying
this statement was to increase Undistributed Net Investment Income and
decrease Accumulated Net Realized Gain from Portfolio by $340,708. The
adjustment is attributable to net realized foreign currency gains. Net
investment income, net realized gains and net assets were not affected by
this change.
(D) Expenses: Expenses incurred by the Trust with respect to any two
or more funds in the Trust are allocated in proportion to the net assets
of each fund in the Trust, except when allocations of direct expenses to
each fund can otherwise be made fairly. Expenses directly attributable to
a fund are charged to that fund. The Fund's share of the Portfolio's
expenses are charged against and reduce the amount of the Fund's
investment in the Portfolio.
(E) Deferred Organization Expenses: The Fund incurred organization
expenses in the amount of $58,080. These costs were deferred and are being
amortized by the Fund on a straight-line basis over a five-year period
from the commencement of operations.
(F) Federal Income Taxes: The 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 Fund will be exempt
from regular federal income taxes to the extent that it distributes
substantially all of its net investment income and net realized gains to
its shareholders.
3. TRANSACTIONS WITH AFFILIATES.
(A) Administration: Pursuant to an Administrative Services Agreement,
Signature provides the Fund with general office facilities, and supervises
the overall administration of the Fund including, among other
responsibilities, the preparation and filing of all documents required for
compliance by the Fund with applicable laws and regulations and arranging
for the maintenance of books and records of the Fund. For its services to
the Fund, Signature receives from the Fund fees payable monthly equal on
an annual basis (for the Fund's then-current fiscal year) to 0.05% of the
Fund's average daily net assets up to $100 million. Signature receives no
compensation from the Fund with respect to the Fund's assets over $100
million. The administrative services fees of the Fund are subject to an
annual minimum fee of $25,000. For the six months ended April 30, 1996,
Signature's fee for these services aggregated $14,224, of which $7,112 was
waived.
(B) Fund Accounting: Pursuant to a fund accounting agreement,
Signature Financial Services, Inc. ("SFSI") serves as fund accounting
agent to the Fund. For its services to the Fund, SFSI receives from the
Fund fees payable monthly equal on an annual basis to $12,000. For the six
months ended April 30, 1996, fees for these services aggregated $6,000, of
which $2,625 was waived.
(C) Waiver of Expenses: The Manager and Sponsor have voluntarily
agreed to waive a portion of their fees, during the six months ended April
30, 1996. Expenses of the Fund were voluntarily limited to no more than
1.21% of the average daily net assets on an annualized basis and
accordingly, the Sponsor waived fees aggregating $9,737.
(D) Trustees' Fees and Expenses: The fees and expenses of the
Trustees amounted to $3,798, for the six months ended April 30, 1996.
4. INVESTMENT TRANSACTIONS. Additions and reductions in the Fund's
investment in the Portfolio amounted to $41,464,781, and $1,520,739,
respectively.
5. PROPOSED REORGANIZATION. A special shareholder meeting has been called
for June 18, 1996 to consider and vote on a Plan of Reorganization. Under
the Plan of Reorganization all of the assets and liabilities of the Fund
will be transferred to the Republic International Equity Fund, (the
"Successor Fund") a new series of Republic Advisor Funds Trust, and each
shareholder of the Fund will receive, for his or her Fund shares, an equal
number of shares of the Successor Fund, (the "New Shares"). The
shareholder's New Shares will have a total net asset value equal to the
total net asset value of the shareholder's Fund shares immediately prior
to the consummation of the Reorganization. New Shares will be issued to
the Fund in consideration of the transfer to the Successor Fund of all
assets and liabilities of the Fund. Immediately thereafter, the Fund will
liquidate and distribute the New Shares to the shareholders. The new fund
will be managed according to the same investment objective, policies and
restrictions as the current fund. The proposed reorganization, intended to
be a tax-free reorganization, is described in more detail in the proxy
statement dated May 17, 1996 and mailed to shareholders on or about the
same date.
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
APRIL 30, 1996
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ -----
COMMON STOCKS -- 94.0%
ARGENTINA -- 0.4%
Telecom Argentina Stet ADS (Telecommunications) ... 6,000 $ 271,500
YPF Sociedad Anonima ADR (Energy Sources) ......... 6,000 131,250
------------
402,750
------------
AUSTRALIA -- 5.1%
Brambles Industries Ltd. (Business & Public
Services) ....................................... 59,000 810,204
Coca Cola Amatil Ltd. (Beverages & Tobacco) ....... 87,625 923,327
Lend Lease Corp. (Multi-Industry) ................. 35,000 534,339
News Corp. ADR (Broadcasting & Publishing) ........ 43,000 1,010,500
Western Mining Corp. (Metals & Mining) ............ 167,400 1,222,505
Westpac Banking Corp. (Banking) ................... 210,000 1,021,304
------------
5,522,179
------------
BRAZIL -- 0.9%
Electrobras PNB ADR (Utilities)(a) ................ 20,000 250,000
Telecomunicacoes Brasileiras ADR
(Telecommunications) ............................ 13,500 730,688
------------
980,688
------------
CANADA -- 6.1%
Alcan Aluminum Ltd. (Metals & Mining) ............. 12,800 408,000
Bombardier Class B Sub Voting (Machinery &
Engineering) .................................... 47,400 666,576
CAE Industries (Aerospace) ........................ 92,000 803,965
Cominco Ltd. (Metal & Mining) ..................... 6,000 142,500
Diamonds Fields Resources (Metal & Mining)(a) ..... 29,000 892,308
Inco Ltd. (Metal & Mining) ........................ 23,000 776,250
Northern Telecom (Electrical & Electronics) ....... 14,000 721,000
Rogers Communication Class (Broadcasting &
Publishing) ..................................... 53,000 529,319
Royal Bank of Canada (Banking) .................... 33,500 793,373
Seagrams Company Ltd. (Beverages & Tobacco) ....... 25,300 857,037
------------
6,590,328
------------
DENMARK -- 0.5%
Tele Danmark ADR (Telecommunications) ............. 21,300 537,825
------------
FINLAND -- 0.7%
Nokia K (Electrical & Electronics) ................ 3,000 105,920
Nokia A (Electrical & Electronics) ................ 20,000 713,976
------------
819,896
------------
FRANCE -- 4.6%
Euro Disneyland (Leisure & Tourism)(a) ............ 105,000 312,464
Pechiney Cert Inv (Metals & Mining) ............... 21,030 989,528
Renault (Automobiles) ............................. 29,300 887,210
Societe National ELF-Aquitaine (Energy Sources)(a) 14,000 1,039,652
Synthelabo (Health & Personal Care)(a) ............ 5,850 455,678
TV Francaise (Services)(a) ........................ 4,800 519,420
Valeo (Industrial Components) ..................... 11,200 620,707
------------
4,824,659
------------
GERMANY -- 4.7%
Mannesman AG (Machinery & Engineering) ............ 5,350 1,826,344
Muchener Rueckversicherungs Nam (Insurance) ....... 190 344,767
Muenchener Rueckerver (Insurance)(a) .............. 200 327,666
Siemens AG (Electrical & Electronics) ............. 1,000 547,175
Volkswagen AG (Automobiles) ....................... 3,000 1,034,888
Wolters Kluwer (Broadcasting & Publishing)(a) ..... 8,800 961,913
------------
5,042,753
------------
HONG KONG -- 3.9%
Citic Pacific (Multi-Industry) .................... 90,000 353,685
Consolidated Electric Power Asia (Utilities) ...... 206,600 341,854
Hong Kong Electric (Utilities) .................... 304,000 966,739
Hong Kong Telecom (Telecommunications) ............ 392,000 747,444
Hutchison Whampoa (Multi-Industry) ................ 132,000 819,060
Swire Pacific Class A (Multi-Industry) ............ 113,000 964,100
------------
4,192,882
------------
INDONESIA -- 0.4%
PT Indonesia Satellite ADR (Telecommunications)(a). 12,000 418,500
------------
IRELAND -- 0.8%
Allied Irish Banks PLC (Banking) .................. 155,000 810,809
------------
ITALY -- 3.0%
Alleanza Assicurazioni SPA (Insurance) ............ 43,000 404,949
Alleanza Assicuraz (Insurance) .................... 72,300 501,101
Italcementi Fabbriche Riunite (Building Materials &
Components) ..................................... 22,200 161,199
Stet Risp (Telecommunications) .................... 250,000 654,449
Telecom Italia Mobile RSP (Telecommunications) .... 788,000 1,109,859
Telecom Italia Mobile ORD (Telecommunications) .... 125,000 274,168
Telicom Italia SPA (Telecommunications) ........... 70,500 143,347
------------
3,249,072
------------
JAPAN -- 28.6%
Acom Co. (Financial Services) ..................... 23,000 864,209
Advantest Corp. (Electronic Instruments) .......... 18,000 888,656
Banyu Pharmaceutical (Health & Personal Care) ..... 47,000 675,101
Bridgestone Corp. (Industrial Components) ......... 82,000 1,513,246
Chudenko (Construction & Housing) ................. 7,150 250,973
Dai-Ni-Denden (Telecomunications)(a) .............. 108 923,586
Fuji Photo Film (Recreational & Other Consumer) ... 36,000 1,116,385
Higashi Nihon House (Construction & Housing)(a) ... 33,000 533,650
Hitachi Ltd. (Electrical & Electronics) ........... 63,000 677,194
Japan Airlines (Transportation: Airlines)(a) ...... 109,000 867,853
Jusco Co. (Merchandising)(a) ...................... 29,000 893,793
Kao Corporation (Food & Household Products) ....... 35,000 466,112
Kawasaki Heavy Industries (Machinery & Engineering) 78,000 401,408
Kawasaki Kisen (Transportation: Shipping) ......... 122,000 447,962
Kurita Water Industries (Machinery & Engineering) . 30,800 770,549
Kyocera Corp. (Electronic Components) ............. 7,000 524,709
Kyocera Corp. ADR (Electronic Components) ......... 3,000 452,625
Makita Corp. (Electrical & Electronics) ........... 17,000 273,294
Mitsubishi Heavy Industries, Inc. (Machinery &
Engineering) .................................... 155,000 1,377,122
Mitsui Fudosan (Real Estate) ...................... 91,000 1,194,578
Murata Mfg. (Electronic Components) ............... 24,000 933,746
NKK Corp. (Metals & Mining) ....................... 273,000 851,786
Nihon Dempa Kogyo (Electronic Components) ......... 4,000 93,603
Nintendo (Recreation & Other Consumer Products) ... 16,300 1,240,428
Nikon Corporation (Industrial Components) ......... 82,000 1,099,834
Nippon Telephone & Telegraph (Telecommunications) . 154 1,190,058
Nomura Securities (Financial Services) ............ 42,000 910,916
Orix Corporation (Financial Services) ............. 7,000 288,323
Rohm Co. (Electrical & Electronics)(a) ............ 15,000 948,870
Sankyo Co. (Health & Personal Care) ............... 61,500 1,485,945
Sanyo Electric Co. Ltd. (Appliances & Household
Goods) .......................................... 140,000 889,608
Secom (Business & Public Services) ................ 4,000 281,570
Sekisui House (Construction & Housing) ............ 72,000 890,369
Sony Corp. (Appliances & Household Goods) ......... 9,200 595,101
Sumitomo Realty & Development (Real Estate) ....... 90,000 720,856
Suzuki Motor (Automobiles) ........................ 51,000 645,232
Tokyo Broadcast Systems (Broadcasting &
Publishing) ..................................... 17,000 282,996
Tostem Corp. (Building Materials & Components) .... 3,000 92,747
Toyota Motor Corp. (Automobiles) .................. 41,000 932,128
Yasuda Fire & Marine (Insurance) .................. 129,000 1,012,366
------------
30,499,487
------------
MALAYSIA -- 2.0%
Genting Berhad (Leisure & Tourism)(a) ............. 42,000 377,301
New Straits Times Press Berhad (Broadcasting &
Publishing)(a) .................................. 127,000 682,494
Renong Berhad (Multi-Industry) .................... 256,000 445,574
Sime Darby BHD (Multi-Industry) ................... 238,000 658,593
------------
2,163,962
------------
MEXICO -- 1.8%
Cemex SA Cl B ADR (Building Materials &
Components)(a) .................................. 48,000 402,000
Grupo Financiero Banamex "L" (Financial
Services)(a) .................................... 47,483 97,753
Grupo Financiero Banamex "B" (Financial
Services)(a) .................................... 269,654 622,796
Telefonos De Mexico ADR (Telecommunications) ...... 22,900 778,600
------------
1,901,149
------------
NETHERLANDS -- 3.3%
Aegon (Insurance) ................................. 16,500 785,760
ABN-AMRO Holding (Banking) ........................ 9,200 476,242
Asm Lithography Holding NV (Electronic
Components)(a) .................................. 17,000 757,981
Philips Electronics NV (Appliances & Household
Goods) .......................................... 23,100 815,611
Philips Electronics NV ADR (Appliances & Household
Goods) .......................................... 18,000 645,750
------------
3,481,344
------------
NEW ZEALAND -- 0.9%
Lion Nathan (Beverages & Tobacco) ................. 94,000 234,196
Telecom New Zealand (Telecommunications) .......... 184,000 780,463
------------
1,014,659
------------
NORWAY -- 0.8%
Orkla AS A-Aksjer (Multi-Industry)(a) ............. 17,000 829,911
------------
PHILIPPINES -- 0.2%
Philippine Long Distance ADR (Telecommunications) . 4,000 201,000
------------
PORTUGAL -- 0.4%
Portugal Telecom ADR (Telecommunications) ......... 22,000 475,750
------------
SINGAPORE -- 1.1%
City Developments (Real Estate) ................... 35,000 306,297
Singapore Press Holdings Ltd. (Broadcasting &
Publishing)(a) .................................. 47,400 897,075
------------
1,203,372
------------
SPAIN -- 2.3%
Banco de Santander (Banking) ...................... 20,400 947,160
Corporacion Mapfre Regular (Insurance) ............ 9,000 452,510
Telefonica de Espana (Telecommunications) ......... 60,900 1,083,656
------------
2,483,326
------------
SWEDEN -- 8.2%
AGA AB Free (Chemicals)(a) ........................ 46,000 737,201
Asea A Free (Electrical & Electronics) ............ 11,700 1,193,842
Astra AB A Free (Health & Personal Care) .......... 47,900 2,123,364
Atlas Copco AB-Ser B (Machinery & Engineering) .... 40,000 758,667
Autoliv AB (Industrial Components) ................ 17,000 924,810
Ericsson B Free (Electrical & Electronics) ........ 43,660 882,649
Hennes & Mauritz B Free (Merchandising) ........... 8,500 584,880
Incentive (Multi-Industry)(a) ..................... 12,000 635,163
Volvo Aktiebolag B Free (Automobiles) ............. 38,500 880,224
------------
8,720,800
------------
SWITZERLAND -- 5.3%
BBC Brown Boveri A Inhaber (Electrical &
Electronics) .................................... 125 150,261
Baloise Holdings (Insurance) ...................... 343 734,508
CS Holding Inhaber (Banking) ...................... 12,005 1,087,637
Ciba-Geigy (Chemicals) ............................ 835 966,842
Holderbank Finan Glaris Class B (Building Materials
& Components) ................................... 1,330 1,003,511
Nestle Registered Shares (Food & Household
Products) ....................................... 1,289 1,430,381
Swissair (Transportation: Airlines)(a) ............ 350 345,078
------------
5,718,218
------------
THAILAND -- 0.6%
Bangkok Bank (Banking) ............................ 45,000 652,148
------------
UNITED KINGDOM -- 7.4%
BAT Industries (Multi-Industry) ................... 15,200 115,143
Bicc PLC (Industrial Components) .................. 39,000 204,010
British Petroleum PLC ADR (Energy Sources) ........ 4,700 513,475
British Petroleum PLC (Energy Sources) ............ 46,000 415,723
British Sky Broadcasting PLC (Broadcasting &
Publishing) ..................................... 147,500 1,062,863
English China Clays (Miscellaneous Materials &
Commodities) .................................... 119,000 522,929
HSBC Holdings PLC (Financial Services) ............ 49,300 730,935
Morgan Crucible Co. (Industrial Components) ....... 51,800 337,342
Reckitt & Coleman PLC (Food & Household Products) . 77,400 850,499
Shell Transport & Trading (Energy Sources) ........ 13,000 171,772
Shell Transport & Trading (NY registered) (Energy
Sources) ........................................ 6,400 512,000
Storehouse PLC (Merchandising) .................... 50,000 259,290
Thorn EMI PLC (Recreation & Other Consumer
Products) ....................................... 84 2,333
United News & Media PLC (Broadcasting &
Publishing) ..................................... 45,440 475,053
Vodafone Group PLC (Telecommunications) ........... 170,434 682,147
Zeneca Group PLC (Health & Personal Care) ......... 46,000 965,630
------------
7,821,144
------------
TOTAL COMMON STOCK ................................ 100,558,611
------------
RIGHTS -- 0.0% (b)
MALAYSIA
Renong Berhad Warrant Rights (Multi-Industry)(a) .. 32,000 193
Renong Berhad Rights (Multi-Industry)(a) .......... 51,200 14,373
------------
14,566
------------
WARRANTS -- 0.2%
ITALY
Softe-Sip Risp (expires 3/24/97)
(Telecommunications)(a) ......................... 110,000 225,352
------------
PREFERRED STOCK -- 0.1%
GERMANY
Volkswagon N/V VZG (Automobiles) .................. 600 152,345
------------
PRINCIPAL
AMOUNT
---------
LONG TERM CORPORATE DEBT -- 2.3%
JAPAN -- 0.3%
MBL International, 3.00%, 11/30/02 (Banking) ...... $ 270,000 307,800
------------
SPAIN -- 0.0% (b)
Corporacion Mapfre, 8.50%, 2/27/99 (Insurance) .... 1,760,000 13,827
------------
SWITZERLAND -- 0.6%
BBC Brown Boveri, 4.00%, 7/10/98 (Electrical &
Electronics) .................................... 637,500 632,634
------------
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- -------------------- --------- -----
UNITED KINGDOM 1.3%
British Air Capitol, 9.75%, 6/15/05
(Transportation: Airlines) ...................... $ 197,000 $ 662,260
Royal Insurance, 7.25%, 12/12/07 (Insurance) ...... 390,000 740,785
------------
1,403,045
------------
TOTAL LONG TERM CORPORATE DEBT .................... 2,357,306
------------
REPURCHASE AGREEMENTS -- 2.7%
Salomon Brothers, 4.81%, dated 4/30/96, due 5/01/
96, proceeds $2,859,470 (collateralized by
$621,598 U.S. Treasury Note 11.25%, due 2/15/15,
valued at $616,215 and $2,143,316 U.S. Treasury
Note, 7.875%, due 11/15/04, valued at $2,384,075)
(cost $2,859,088) ............................... 2,859,088
------------
TOTAL INVESTMENTS 99.3%
(Identified Cost $97,948,127) ................... 106,167,268
OTHER ASSETS LESS LIABILITIES 0.7% ................ 792,571
------------
TOTAL NET ASSETS 100.0% ........................... $106,959,839
============
- ------------------------------------------------------------------------------
(a) Non-income producing security
(b) Less than 0.1%
ADR = American depository receipt
ADS = American depository share
<TABLE>
INDUSTRY DIVERSIFICATION
<CAPTION>
PERCENT OF PERCENT OF
PORTFOLIO PORTFOLIO
---------- ----------
<S> <C> <C> <C>
Telecommunications ......................... 10.4% Recreational & Other Consumers ......... 2.2%
Electrical & Electronics ................... 6.4% Real Estate ............................ 2.1%
Banking .................................... 5.7% Beverages & Tobacco .................... 1.9%
Broadcasting & Publishing .................. 5.5% Airlines ............................... 1.8%
Machinery & Engineering .................... 5.4% Merchandise ............................ 1.6%
Health & Personal Care ..................... 5.3% Chemicals .............................. 1.6%
Multi-Industry ............................. 5.0% Construction & Housing ................. 1.6%
Insurance .................................. 5.0% Building Materials & Components ........ 1.6%
Metals: Nonferrous ......................... 4.9% Utilities .............................. 1.5%
Industrial Components ...................... 4.4% Business & Public Services ............. 1.0%
Automobiles ................................ 4.2% Electronic Instruments ................. 0.8%
Financial Services ......................... 3.3% Aerospace & Military Technology ........ 0.8%
Appliances & Household Goods ............... 2.8% Leisure & Tourism ...................... 0.6%
Energy Sources ............................. 2.6% Services ............................... 0.5%
Electrical Components ...................... 2.6% Miscellaneous Materials & Commodities .. 0.5%
Food & Household Products .................. 2.6% Shipping ............................... 0.4%
------
96.6%
Short Term & Other Assets Less
Liabilities .......................... 3.4%
------
100.0%
======
</TABLE>
See accompanying notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 1996
ASSETS:
Investment at value (cost $97,948,127) ......................... $106,167,268
Foreign currency at value (cost $45,757) ....................... 41,778
Receivable for investments sold ................................ 1,174,825
Interest receivable ............................................ 45,435
Dividends receivable ........................................... 335,956
Net unrealized appreciation on forward currency contracts
(Note 2) ..................................................... 262,673
Deferred organization expenses (Note 1) ........................ 50,219
Receivable from affiliate (Note 2) ............................. 26,886
------------
Total Assets ............................................. 108,105,040
------------
LIABILITIES:
Payable for investments purchased .............................. 1,020,579
Sub-advisery fees payable (Note 2) ............................. 44,124
Administration fee payable (Note 2) ............................ 4,227
Accrued expenses and other liabilities ......................... 76,271
------------
Total Liabilities ........................................ 1,145,201
------------
NET ASSETS:
Applicable to investors' beneficial interest ................... $106,959,839
============
See accompanying notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED APRIL 30, 1996
INVESTMENT INCOME (NOTE 1):
Dividends (net of foreign withholding tax $97,234) .............. $ 582,160
174,583
Interest ........................................................ ----------
Investment Income ........................................... 756,743
EXPENSES (NOTE 2):
Sub-advisory fees ................................. $ 203,677
Custody fees ...................................... 56,893
Fund accounting fees .............................. 25,000
Administration fees ............................... 18,548
Audit fees ........................................ 11,119
Amortization of organization expenses (Note 2) .... 6,865
Trustees' fees and expenses ....................... 3,745
Insurance ......................................... 2,266
Printing .......................................... 1,200
Legal fees ........................................ 850
Other expenses .................................... 1,350
---------
Total expenses .................................. 331,513
Less: reimbursement of expenses ................. (26,052)
Less: waiver of fees ............................ (6,250)
---------
Net expenses ................................................ 299,211
----------
NET INVESTMENT INCOME ........................................... $ 457,532
==========
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments ................................................. 775,747
Foreign currency transactions ............................... 304,039
Net unrealized appreciation of investments ...................... 7,037,270
Net unrealized depreciation of foreign currency contracts and (256,611)
translations .................................................. ----------
Net realized and unrealized gain on investments and foreign
currency transactions ......................................... 7,860,445
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............ $8,317,977
==========
See accompanying notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD
FOR THE JANUARY 9, 1995
SIX MONTHS (COMMENCEMENT
ENDED OF OPERATIONS)
APRIL 30, 1996 TO
(UNAUDITED) OCTOBER 31, 1995
---------------- ----------------
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income .................... $ 457,532 $ 293,335
Net realized gain (loss) from investment
and foreign currency transactions ....... 1,079,786 (98,258)
Net unrealized appreciation of investments
and foreign currency and translations ... 6,780,659 1,700,597
------------ -----------
Net increase in net assets resulting from
operations .............................. 8,317,977 1,895,674
------------ -----------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST:
Additions ................................ 60,467,253 38,444,279
Reductions ............................... (1,754,299) (461,145)
------------ -----------
Net increase in net assets from
transactions in investors' beneficial
interest ................................ 58,712,954 37,983,134
------------ -----------
NET INCREASE IN NET ASSETS ............... 67,030,931 39,878,808
NET ASSETS:
Beginning of period ...................... 39,928,908 50,100
----------- ----------
End of period ............................ $106,959,839 $39,928,908
============ ===========
- ------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR THE PERIOD
FOR THE JANUARY 9, 1995
SIX MONTHS (COMMENCEMENT
ENDED OF OPERATIONS)
APRIL 30, 1996 TO
(UNAUDITED) OCTOBER 31, 1995
--------------- ----------------
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (in 000's) .... $106,960 $39,929
Ratios:
Expenses to average net assets (a) ........ 0.81%(b) 0.64%(b)
Net investment income to average net
assets (a) .............................. 1.23%(b) 1.55%(b)
Portfolio turnover ........................ 13%(c) 3%(c)
Average commission rate paid per share (d) $0.0355 --
(a) Reflects a voluntary expense limitation and waiver of fees by affiliated
parties of the Portfolio. If this limitation had not been in effect, the
annualized ratios of expenses and net investment income to average net
assets for the six months ended April 30, 1996 and the period January 9,
1995 (commencement of operations) to October 31, 1995 would have been:
Expenses to average net assets ...... 0.89%(b) 4.63%(b)
Net investment income to average net
assets ............................ 1.15%(b) (2.69%)(b)
(b) Annualized.
(c) Not annualized.
(d) Most foreign securities markets do not charge commissions based on a rate
per share but as a percentage of the principal value of the transaction.
As a result, the above rate is not indicative of the commission
arrangements currently in effect.
See accompanying notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
APRIL 30, 1996
1. ORGANIZATION. The Republic International Equity Portfolio (the
"Portfolio") is a diversified separate series of Republic Portfolios,
which is registered under the Investment Company Act of 1940, as amended
(the "Act"), as a no-load, open-end management investment company. The
Portfolio is a series of the Republic Portfolios (the "Portfolio Trust")
which was organized as a master trust fund under the laws of the State of
New York on November 21, 1994. The Portfolio commenced operations on
January 9, 1995. The Declaration of Trust permits the Trustees to issue an
unlimited number of beneficial interests in the Portfolio.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements
in conformity with generally accepted accounting principals requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates. The following is a summary of
the Portfolio's significant accounting policies.
(A) Investment Security Valuations: The net asset value of the
Portfolio is determined on each day on which the New York Stock Exchange
("NYSE") is open for trading. The Sub-Advisor typically completes its
trading on behalf of the Portfolio in various markets before 4:00 p.m.,
and the value of 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 under
the direction of the Board of Trustees of the Portfolio Trust.
(B) Foreign Currency Translation: The accounting records of the
Portfolio 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 Portfolio
does not isolate that portion of the results of operations resulting from
changes in foreign exchange rates on investments from the 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.
(C) Forward Foreign Currency Exchange Contracts: The Portfolio may
enter into forward foreign currency exchange contracts in connection with
planned purchases or sales of securities, to hedge the U.S. dollar value
of portfolio securities denominated in a particular currency. The
Portfolio 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. At April 30, 1996, the
Portfolio had open forward currency contracts as follows:
<PAGE>
<TABLE>
SUMMARY OF OPEN FORWARD FOREIGN CURRENCY CONTRACTS
AT APRIL 30, 1996
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL
VALUE U.S. DOLLAR NET UNREALIZED
LOCAL EXPIRATION VALUE AT APPRECIATION/
CONTRACTS TO BUY CURRENCY DATE PROCEEDS 4/30/96 (DEPRECIATION)
---------------- ---------- ---------- ---------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
Deutche Mark ................... 135,163 5/13/96 $ 100,433 $ 88,291 $(12,142)
Japanese Yen ................... 88,363,480 5/16/96 846,163 842,516 (3,647)
Japanese Yes ................... 48,167,340 9/12/96 463,629 461,815 (1,814)
Japanese Yen ................... 68,077,600 6/28/96 696,860 652,889 (43,971)
Japanese Yen ................... 59,669,085 7/05/96 566,067 572,775 6,708
Japanese Yen ................... 5,662,791 7/19/96 57,754 54,460 (3,294)
Japanese Yen ................... 22,506,120 8/06/96 229,444 216,970 (12,474)
Japanese Yen ................... 47,614,000 10/08/96 461,086 462,911 1,825
Japanese Yen ................... 64,922,350 10/15/96 635,373 631,780 (3,593)
Japanese Yen ................... 39,626,500 10/30/96 408,984 386,389 (22,595)
--------
(94,997)
--------
CONTRACTS TO SELL
-----------------
Canadian Dollar ................ 1,148,250 7/23/96 843,000 844,407 (1,407)
Canadian Dollar ................ 959,717 7/29/96 705,000 705,830 (830)
Canadian Dollar ................ 417,487 1/29/97 301,000 307,534 (6,534)
Deutche Mark ................... 400,982 6/01/96 272,000 262,384 9,616
Deutche Mark ................... 589,991 7/01/96 401,000 386,551 14,449
French Franc ................... 487,600 5/13/96 100,433 94,278 6,155
Hong Kong Dollar ............... 1,282,050 8/14/96 165,000 165,767 (767)
Japanese Yen ................... 4,572,065 5/01/96 42,870 43,498 (628)
Japanese Yen ................... 6,557,640 5/02/96 62,023 62,398 (375)
Japanese Yen ................... 105,100,749 5/14/96 997,000 1,001,808 (4,808)
Japanese Yen ................... 150,396,960 5/16/96 1,428,000 1,433,984 (5,984)
Japanese Yen ................... 48,167,340 6/26/96 481,000 461,814 19,186
Japanese Yen ................... 68,078,600 6/28/96 831,000 652,888 178,112
Japanese Yen ................... 157,950,690 7/05/96 1,556,000 1,516,197 39,803
Japanese Yen ................... 7,550,582 7/19/96 89,000 72,616 16,384
Japanese Yen ................... 22,506,120 8/06/96 260,000 216,970 43,030
Japanese Yen ................... 33,064,350 9/12/96 319,000 320,337 (1,337)
Japanese Yen ................... 8,496,835 10/08/96 829,000 826,076 2,924
Japanese Yen ................... 94,914,900 10/11/96 900,000 923,150 (23,150)
Japanese Yen ................... 64,922,350 10/15/96 682,000 631,780 50,220
Japanese Yen ................... 39,626,500 10/30,96 410,000 386,389 23,611
--------
357,670
--------
NET UNREALIZED APPRECIATION ON FORWARD FOREIGN CURRENCY CONTRACTS ............................ $262,673
========
</TABLE>
(D) Accounting for Investments: Securities transactions are recorded
on a trade date basis. For financial and tax reporting purposes, realized
gains and losses are determined on the basis of specific identification.
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 where recovery of such taxes is not assured.
Interest income is accrued daily.
(E) Expenses: 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.
(F) Taxes: There is, at present, no direct taxation in the Cayman
Islands, and therefore, interest, dividends and capital gains derived by
the Portfolio are not subject to taxes in that jurisdiction.
3. TRANSACTIONS WITH AFFILIATES.
(A) Investment Management: Republic National Bank of New York
("Republic" or the "Manager") is the Investment Manager to the Portfolio
pursuant to an investment management agreement with the Portfolio Trust.
For its services, the Investment Manager receives no compensation from the
Portfolio.
(B) Sub-Adviser: Capital Guardian Trust Company (the "Sub-Adviser")
continuously manages the investment portfolio of the Portfolio pursuant to
a Sub-Advisery Agreement with the Manager. For its services, the Sub-
Adviser is paid a fee by the Portfolio, computed daily and based on the
Portfolio's average daily net assets, equal to 0.70% of net assets up to
$25 million, 0.55% of 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. It is the responsibility of the Sub-Adviser
not only to make investment decisions for the Portfolio, but also to place
purchase and sale orders for the portfolio transactions of the Portfolio.
For the six months ended April 30, 1996, the sub-advisory fee was
$203,677.
(C) Administration: Pursuant to an Administrative Services Agreement,
Signature Financial Group (Cayman) Ltd. ("Signature (Cayman)") provides
the Portfolio with general office facilities, and supervises the overall
administration of the Portfolio including, among other responsibilities,
the preparation and filing of all documents required for compliance by the
Portfolio with applicable laws and regulations and arranging for the
maintenance of books and records of the Portfolio. For its services to the
Portfolio, Signature (Cayman) receives from the Portfolio fees payable
monthly equal on an annual basis (for the Portfolio's then-current fiscal
year) to 0.05% of the Portfolio's average daily net assets. For the six
months ended April 30, 1996, Signature (Cayman)'s fee for these services
aggregated $18,548.
(D) Fund Accounting: Pursuant to a fund accounting agreement,
Signature Financial Services, Inc. ("SFSI") serves as fund accounting
agent to the Portfolio. For its services to the Portfolio, SFSI receives
fees payable monthly equal on an annual basis to $50,000. For the six
months ended April 30, 1996, fees for these services aggregated $25,000,
of which $6,250 was waived.
(E) Trustees Fees and expenses: The fees and expenses of the Trustees
amounted to $3,745 for the six months ended April 30, 1996.
(F) Reimbursement and Waiver of Expenses: The Manager and SFSI have
voluntarily agreed to waive a portion of their fees, and to the extent
necessary, reimburse the Portfolio for additional expenses. For the six
months ended April 30, 1996, expenses of the Portfolio were voluntarily
limited to no more than 0.81% of the average daily net assets on an
annualized basis. For the six months ended April 30, 1996, the Manager and
SFSI waived fees and reimbursed expenses aggregating $32,302.
4. INVESTMENT TRANSACTIONS. Purchase and sales of investments, other than
short-term obligations, aggregated $66,843,684, and $8,957,858,
respectively for the period.
<PAGE>
REPUBLIC FUNDS
- --------------
- -------------
REPUBLIC
INTERNATIONAL EQUITY
FUND
INVESTMENT MANAGER
REPUBLIC NATIONAL BANK OF NEW YORK
452 FIFTH AVENUE
NEW YORK, NY 10018
SUB-ADVISER
CAPITAL GUARDIAN TRUST COMPANY
333 SOUTH HOPE STREET
LOS ANGELES, CA 90071
ADMINISTRATOR, DISTRIBUTOR, AND SPONSOR
SIGNATURE BROKER-DEALER SERVICES, INC.
6 ST. JAMES AVENUE
BOSTON, MA 02116
CUSTODIAN AND TRANSFER AGENT
INVESTORS BANK & TRUST COMPANY
89 SOUTH STREET
BOSTON, MA 02116
REPUBLIC FUNDS
- --------------
REPUBLIC
INTERNATIONAL EQUITY
FUND
SEMI-ANNUAL REPORT
APRIL 30, 1996
