<PAGE>
PRESIDENT'S MESSAGE
June 1996
Dear Shareholder:
We are pleased to present you with the Republic New York Tax Free Money
Market 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 Adviser,
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 Fund 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 ADVISER
June 1996
DEAR SHAREHOLDER:
We are pleased to present the semi-annual report for the Republic New York
Tax Free Money Market Fund (the "Fund") for the period ending April 30, 1996.
The Fund's return for the recent semi-annual period continued to outpace the
return of the Lipper New York Money Market Fund Average, earning 1.57%
compared to 1.49%. For the latest twelve months, the Fund returned 3.30%
versus 3.15% for the Lipper Average. Standardized average annual total returns
as of the most recent calendar quarter are presented below.
The fiscal year 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 by 25 basis points in December 1995 and an
additional 25 basis points in January 1996, subsequently released economic
reports were brighter than expected, reducing fears of a recession and the
prospects for further Fed easings. The short-term tax-exempt market
experienced less volatility than the taxable markets during the recent period.
After the release of strong economic data in February, investors and portfolio
managers slowed their purchases of longer term municipal notes in favor of
short term money market instruments.
The Fund is maintaining its average maturity at a neutral position in
order to take advantage of higher yielding securities when tax season
concludes and supply/demand imbalances correct. The Fund's recent strategy has
been to decrease commercial paper holdings and increase its Floating Rate
Demand Note position. As of April 30, 1996, the Fund's portfolio was well
balanced, consisting of 52.4% Floating Rate Demand Notes, 27.8% Commercial
Paper, 18.9% Fixed Rate Notes and 1.0% Cash and Cash Equivalents. The Fund's
average maturity as of April 30, 1996 was 50 days.
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 NY Tax Free Money Market Fund 3.36% 3.38%
Lipper NY Money Market Fund Avg. 3.21% 3.39%
*November 17, 1994
Lipper NY Money Market Fund Avg.: an average of all the funds in the Lipper
New York universe.
The shares of the Fund are neither insured nor guaranteed by the U.S.
Government. While the Fund seeks to maintain a stable net asset value of $1.00
per share, there can be no assurance that it will be able to do so on a
continuing basis.
<PAGE>
REPUBLIC NEW YORK TAX FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
APRIL 30, 1996
<TABLE>
<CAPTION>
RATINGS
PRINCIPAL MOODY'S/
AMOUNT DESCRIPTION(e) RATE MATURITY S&P(b) VALUE
--------- -------------- ---- -------- -------- -----
<S> <C> <C> <C> <C> <C>
NEW YORK TAX FREE BONDS, NOTES AND COMMERCIAL PAPER -- 98.1%(a)
NEW YORK TAX FREE MUNICIPAL NOTES -- 18.7%(a)
$1,000,000 Erie County, New York, RANS, LOC - Union Bank of
Switzerland ........................................ 4.250% 4/17/97 MIG1/NR $ 1,006,028
2,000,000 Lansing, New York, BANS, AMT ......................... 3.900% 12/27/96 NR/NR 2,001,909
2,000,000 Livingston County, New York, BANS .................... 3.500% 7/29/96 NR/NR 2,000,965
2,462,000 Niagara County, New York, BANS ....................... 4.250% 12/6/96 NR/NR 2,469,800
2,000,000 North Hempstead, New York, BANS ...................... 4.125% 11/1/96 NR/NR 2,003,995
1,500,000 North Hempstead, New York, BANS ...................... 4.000% 1/30/97 NR/NR 1,506,520
1,000,000 Riverhead, New York Central School District, BANS .... 4.000% 12/6/96 NR/NR 1,002,335
-----------
11,991,552
-----------
NEW YORK TAX FREE COMMERCIAL PAPER -- 27.5%(a)
500,000 New York State Dormitory Authority, Revenue, Memorial
Sloan Kettering, LOC - Chemical Bank ............... 3.250% 5/17/96 VMIG1/A1 500,000
1,000,000 New York State Dormitory Authority, Revenue, Memorial
Sloan Kettering, LOC - Chemical Bank ............... 3.550% 5/14/96 VMIG1/A1 1,000,000
1,400,000 New York State Environmental Facilities Corp., Solid
Waste Disposal, Revenue, General Electric Co.
project ............................................ 3.200% 5/17/96 P1/A1+ 1,400,000
1,500,000 New York State Environmental Facilities Corp., Solid
Waste Disposal, Revenue, General Electric Co.
project ............................................ 3.250% 5/9/96 P1/A1+ 1,500,000
3,250,000 New York State Environmental Facilities Corp., Solid
Waste Disposal, Revenue, General Electric Co.
project, AMT ....................................... 3.250% 5/17/96 P1/A1+ 3,250,000
600,000 New York State Environmental Facilities Corp., Solid
Waste Disposal, Revenue, General Electric Co.
project, AMT ....................................... 3.300% 5/9/96 P1/A1+ 600,000
1,000,000 New York State Power Authority, Revenue &
General Purpose .................................... 3.250% 5/10/96 P1/A1 1,000,000
1,080,000 New York State Power Authority, Revenue &
General Purpose .................................... 3.400% 8/15/96 P1/A1 1,080,000
500,000 New York State Power Authority, Revenue &
General Purpose .................................... 3.200% 5/8/96 P1/A1 500,000
1,900,000 Niagara County of New York Industrial Development
Agency, Solid Waste Disposal, Revenue, American
Refinery Fuel Company, AMT ......................... 3.400% 5/9/96 VMIG1/A1 1,900,000
1,400,000 Niagara County of New York Industrial Development
Agency, Solid Waste Disposal, Revenue, American
Refinery Fuel Company, AMT ......................... 3.700% 5/10/96 VMIG1/A1 1,400,000
2,490,000 Port Authority of New York & New Jersey, AMT ......... 3.250% 5/17/96 P1/A1+ 2,490,000
1,000,000 Port Authority of New York & New Jersey, AMT ......... 3.250% 5/13/96 P1/A1+ 1,000,000
-----------
17,620,000
-----------
STANDARD VARIABLE RATE DEMAND MUNICIPAL NOTES -- 51.9%(a)(c)
200,000 Dutchess County New York Industrial Development Agency,
Laerdal Medical Corp, AMT, LOC - Bank of New York .. 4.300% 8/1/15 NR/NR 200,000
3,200,000 Metropolitan Transportation Authority, New York,
Commuter Facilities Mitsubishi Bank Limited, Revenue
Bond, LOC - Morgan Guarantee Trust, Bank of Tokyo,
Mitsubishi Ltd. .................................... 3.900% 7/1/21 VMIG1/A1 3,200,000
2,600,000 New York City Housing Development, Mortgage Revenue,
East 17th Street Project, LOC - Chemical Bank ...... 4.000% 1/1/23 NR/A1 2,600,000
1,200,000 New York City Housing Development, Mortgage Revenue,
East 96th Street Project, LOC - Mitsubishi LTD ..... 3.600% 8/1/15 VMIG1/NR 1,200,000
100,000 New York City Cultural Resource, Revenue, Carnegie
Hall, LOC - Dai-Ichi Kangyo ........................ 3.750% 12/1/10 VMIG1/A1 100,000
500,000 New York City Housing Development, Upper 5th Avenue
Project, LOC - Bankers Trust ....................... 3.900% 1/1/16 VMIG1/NR 500,000
200,000 New York City Municipal Water & Sewer System, Revenue,
Series C, Credit Support FGIC Insurance ............ 4.000% 6/15/23 VMIG1/A1+ 200,000
100,000 New York City Municipal Water Finance Authority, Water
& Sewer System, Revenue, Series C, Credit Support
FGIC Insurance ..................................... 4.000% 6/15/22 VMIG1/A1+ 100,000
2,300,000 New York City Municipal Water Finance Authority, Water
and Sewer System, Revenue, Series C, Credit Support
FGIC Insurance ..................................... 4.100% 6/15/25 VMIG1/A1+ 2,300,000
200,000 New York City, General Obligation, Subseries
B-4, Credit Support MBIA Insurance ................. 4.000% 8/15/23 VMIG1/A1+ 200,000
1,000,000 New York City, General Obligation, Subseries
B-4, LOC - Union Bank of Switzerland ............... 4.200% 8/15/22 VMIG1/A1+ 1,000,000
100,000 New York City, General Obligation, Subseries
B-4, LOC - United Bank of Switzerland .............. 4.200% 8/15/21 VMIG1/A1+ 100,000
200,000 New York City, General Obligation, Subseries
E-4, LOC - State Street Bank ....................... 4.000% 8/1/21 VMIG1/A1+ 200,000
600,000 New York City, IDA, Civil Facilities, Revenue,
National Audobon Society, LOC - Swiss Bank ......... 3.900% 12/1/14 NR/A1+ 600,000
2,100,000 New York State Dormitory Authority, Oxford
University Press, LOC - Wachovia Bank .............. 4.300% 7/1/23 VMIG1/NR 2,100,000
1,500,000 New York State Dormitory Authority, Revenue,
Metropolitan Museum of Art, MBIA Surity Bond ....... 4.000% 7/1/23 VMIG1/A1+ 1,500,000
2,200,000 New York State Dormitory Authority, Revenue, Miriam
Osborn Memorial Home, LOC - Banque Paribas ......... 4.250% 7/1/24 VMIG1/A2 2,200,000
2,200,000 New York State Dormitory Authority, Cornell Univ.,
Series B, LOC - Morgan Guarantee Trust ............. 3.900% 7/1/25 VMIG1/A1+ 2,200,000
400,000 New York State Energy Research and Development,
Pollution Control, Revenue, Niagara Mohawk Power,
LOC - Canadian Imperial ............................ 4.000% 12/1/25 P1/NR 400,000
1,000,000 New York State Energy Research and Development,
Pollution Control, Revenue, Niagara Mohawk Power,
LOC - Toronto Dominion ............................. 4.000% 12/1/25 Aa2/NR 1,000,000
300,000 New York State Energy Research and Development,
Pollution Control, Revenue, Niagara Mohawk Power,
LOC - Toronto Dominion ............................. 4.050% 7/1/15 NR/A1+ 300,000
1,500,000 New York State Energy Research and Development,
Pollution Control, Revenue, NY Electric & Gas, LOC -
United Bank of Switzerland ......................... 3.850% 10/1/29 VMIG1/A1+ 1,500,000
3,000,000 New York State Housing Finance Agency, Revenue,
Normandie Court Project, LOC - Societe Generale .... 3.950% 5/1/15 VMIG1/A1+ 3,000,000
200,000 New York State Housing Finance Agency, Revenue,
Memorial Sloan Kettering, Morgan Guarantee Revolving
Credit ............................................. 3.550% 11/1/15 NR/A1+ 200,000
1,000,000 New York State Local Government Assistance
Corporation, Series B, LOC - Bank of Nova Scotia ... 4.100% 4/1/25 VMIG1/A1+ 1,000,000
1,320,000 New York State Power Authority, Revenue & General
Purpose ............................................ 3.250% 3/1/16 VMIG1/A1 1,320,000
2,800,000 New York State Thruway Authority, General Revenue,
Credit Support FGIC Insurance ...................... 3.950% 1/1/24 VMIG1/AAA 2,800,000
1,200,000 Niagara Falls, New York Bridge Commission, Series A,
Credit Support FGIC Insurance ...................... 3.950% 10/1/19 VMIG1/A1+ 1,200,000
-----------
33,220,000
-----------
TOTAL NEW YORK TAX FREE BONDS, NOTES AND COMMERCIAL PAPER ................................... 62,831,552
-----------
OTHER MUNICIPAL -- 1.0%(a)
MUTUAL FUNDS
660,000 Dreyfus NY Tax Free Money Market Fund (Cost $660,000) ....................................... 660,000
-----------
TOTAL INVESTMENTS AT AMORTIZED COST(d) ........................................................................ 63,491,552
CASH .......................................................................................................... 508,017
INTEREST RECEIVABLE ........................................................................................... 252,085
DEFERRED ORGANIZATION EXPENSES (NOTE 2) ....................................................................... 22,459
DIVIDENDS PAYABLE ............................................................................................. (175,858)
ADVISORY FEE PAYABLE (NOTE 3) ................................................................................. (8,447)
ADMINISTRATIVE SERVICE FEE PAYABLE (NOTE 3) ................................................................... (5,907)
DISTRIBUTION EXPENSES PAYABLE (NOTE 3) ........................................................................ (12,415)
LIABILITIES LESS OTHER ASSETS ................................................................................. (44,376)
-----------
NET ASSETS .................................................................................................... $64,027,110
===========
Represented by:
Paid-in capital ............................................................................................... $64,027,110
-----------
NET ASSETS -- Applicable to 64,027,110 shares of beneficial interest outstanding
(unlimited number of shares authorized) ..................................................................... $64,027,110
===========
Net Asset Value, Offering Price and Redemption Price Per Share ................................................ $1.00
=====
<FN>
(a) Percentages indicated are based on net assets of $64,027,110, which correspond to a net asset value per common share of $1.00.
(b) The Moody's or Standard & Poor's ratings indicated are believed to be the most recent ratings available at April 30, 1996
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, 1996. Moody's Investors Service, Inc. and Standard &
Poor's Corp. are the leading independent rating agencies for debt securities. Moody's uses the designation "Moody's
Investment Grade", or "MIG" for most short-term municipal obligations, adding a "V" ("VMIG") for bonds with a demand or
variable feature; the designation "P" is used for tax-exempt commercial paper. Standard & Poor's uses "SP" for notes
maturing in three years or less, "A" for bonds with a demand or variable feature. These ratings are unaudited.
DESCRIPTION OF MOODY'S INVESTORS SERVICES, INC.'S LONG-TERM RATINGS:
Aaa = Best quality; carries smallest degree of investment risk
Aa = High quality; rated lower than best bonds because margins of protection may not be as large as in Aaa securities
DESCRIPTION OF MOODY'S INVESTORS SERVICES, INC.'S RATINGS OF STATE AND MUNICIPAL NOTES:
MIG1/VMIG1 = Best quality; strong protection of cash flow, superior liquidity and broad access to refinancing
MIG2/VMIG2 = High quality; ample protection of cash flow, liquidity support and ability to refinance
DESCRIPTION OF MOODY'S INVESTORS SERVICES, INC.'S RATINGS OF COMMERCIAL PAPER:
P1 = Superior capacity for repayment
P2 = Strong capacity for repayment
DESCRIPTION OF STANDARD & POOR'S CORPORATION'S LONG-TERM DEBT RATINGS:
AAA = Highest ratings by S&P; capacity to pay interest and repay principal is extremely high
AA = Strong capacity to pay interest and repay principal and differs from the higher-rated issues only in small degree
DESCRIPTION OF STANDARD & POOR'S CORPORATION'S COMMERCIAL PAPER RATINGS:
A = Greatest capacity for timely payment: are delineated with the numbers 1, 2 and 3 to indicate relative degree of safety
A1 = Overwhelming degree of credit protection, issues determined to possess overwhelming safety characteristics are denoted
with a plus (+) sign
A2 = Strong capacity for timely payment
NR/NR = Not rated by Moody's/S&P as applicable.
(c) Represents a variable rate demand note. Interest rate disclosed represents current rate at April 30, 1996.
(d) The aggregate identified cost on a tax basis is the same.
(e) Approximately 54% 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.
RANs = Revenue Anticipation Notes
BANs = Bond Anticipation Notes
TANs = Tax Anticipation Notes
AMT = Alternative Minimum Tax
FGIC = Financial Guaranty Insurance Corp.
LOC = Letter of Credit
</TABLE>
See accompanying notes to financial statements
<PAGE>
REPUBLIC NEW YORK TAX FREE MONEY MARKET FUND
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED APRIL 30, 1996
INCOME:
Tax exempt interest income (net of amortization of $42,719)
(note 2) .................................................... $1,147,747
EXPENSES:
Distribution expenses and shareholder services fees
(note 3) ........................................ $ 80,267
Advisory fees (note 3) ............................ 48,160
Administration fees (note 3) ...................... 48,160
Custodian fees and expenses ....................... 25,470
Fund accounting fees .............................. 14,010
Audit ............................................. 11,882
Printing .......................................... 8,773
Transfer agent fees ............................... 7,984
Registration fees ................................. 6,761
Trustees' fees and expenses (note 3) .............. 4,817
Amortization of organization expenses (note 2) .... 3,160
Insurance ......................................... 2,507
Legal ............................................. 1,500
Other expenses .................................... 1,717
---------
Total expenses before waivers ....................... 265,168
Less: waiver of fees (note 3) ..................... (104,506)
---------
Net expenses ................................................ 160,662
----------
NET INVESTMENT INCOME ........................................... $ 987,085
==========
See accompanying notes to financial statements
<PAGE>
REPUBLIC NEW YORK TAX FREE MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE FOR THE PERIOD
SIX MONTHS NOVEMBER 17, 1994
ENDED (COMMENCEMENT OF
APRIL 30, 1996 OPERATIONS) TO
(UNAUDITED) OCTOBER 31, 1995
-------------- ------------------
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income ...................... $ 987,085 $ 1,773,793
Net realized loss on investment transactions -- (13,869)
------------- -------------
Net increase in net assets resulting from
operations ............................... 987,085 1,759,924
------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income .................. (987,085) (1,759,924)
------------- -------------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST:
Proceeds from sales of shares .......... 149,374,185 191,998,598
Net asset value of shares issued in
reinvestment of dividends ............ 817,197 1,046,922
Cost of shares repurchased ............. (138,816,749) (140,393,043)
------------- -------------
Net increase in net assets resulting from
capital share transactions ............... 11,374,633 52,652,477
------------- -------------
Net increase in Net Assets ................. 11,374,633 52,652,477
NET ASSETS:
Beginning of period .................... 52,652,477 0
------------- -------------
End of period .......................... $ 64,027,110 $ 52,652,477
============= =============
See accompanying notes to financial statements
<PAGE>
REPUBLIC NEW YORK TAX FREE MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
FOR THE FOR THE PERIOD
SIX MONTHS NOVEMBER 17, 1994
ENDED (COMMENCEMENT OF
APRIL 30, 1996 OPERATIONS) TO
(UNAUDITED) OCTOBER 31, 1995
--------------- -----------------
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
Net Asset Value, beginning of period ..... $ 1.00 $ 1.00
------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................ 0.016 0.033
------- -------
Total income from investment
operations ......................... 0.016 0.033
------- -------
Less dividends from:
Net investment income ................ (0.016) (0.033)
------- -------
Total dividends distributed to
shareholders ....................... (0.016) (0.033)
------- -------
Net asset value, end of period ........... $ 1.00 $ 1.00
======= =======
Total return ............................. 1.57%(a) 3.31%(a)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ... $64,027 $52,652
Ratio of expenses to average net
assets (b) ........................... 0.50%(c) 0.41%(c)
Ratio of net investment income to
average net assets(b) ................ 3.07%(c) 3.45%(c)
- ------------------------------------------------------------------------------
(a) Not Annualized.
(b) Reflects a voluntary waiver of fees by affiliated parties of the Fund. If
this limitation and waiver 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 November 17, 1994 (commencement
of operations) to October 31, 1995 would have been:
Ratio of expenses to average net
assets ........................... 0.83%(c) 0.65%(c)
Ratio of net investment income to
average net assets ............... 2.75%(c) 3.20%(c)
(c) Annualized.
See accompanying notes to financial statements
<PAGE>
REPUBLIC NEW YORK TAX FREE MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1996 (UNAUDITED)
1. DESCRIPTION AND SHARES OF THE FUND. Republic New York Tax Free Money
Market Fund (the "Fund") is a non-diversified separate series (portfolio)
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 November 17, 1994. 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, management
investment company. The Fund's objective is to provide shareholders of the
Fund with liquidity and as high a level of current income exempt from
federal, New York State and New York City personal income taxes as is
consistent with the preservation of capital.
The Trust retains Republic National Bank of New York ("Republic") as
Investment Adviser ("Adviser") and Signature Broker-Dealer Services, Inc.
("Signature") as Administrator, Distributor and Sponsor ("Sponsor").
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 Fund's significant accounting policies:
(A) Security Valuation. The valuation of the Fund's portfolio
instruments is determined by means of the amortized cost method, which
approximates market value, as set forth in Rule 2a-7 under the Act. The
amortized cost of an instrument is determined by valuing it at cost
originally and thereafter amortizing any discount or premium from its face
value at a constant rate until maturity.
(B) Security Transactions and Related Investment Income. Investment
transactions are accounted for on the trade date (date the security is
purchased or sold). Interest income is accrued as earned. Identified cost
of investments sold is used to calculate gains and losses for both
financial statement and federal income tax purposes.
(C) Expense Allocation. The Fund bears all costs of its operations
other than expenses specifically assumed by the Adviser or Sponsor.
Expenses directly attributable to the Fund are charged to the Fund.
Expenses incurred by the Trust with respect to any two or more of the
Trust's six portfolios are allocated in proportion to the net asset levels
of each portfolio, except where allocations of direct expenses to each
portfolio can otherwise be made fairly.
(D) Organization Expenses. Costs incurred in connection with the
organization and initial registration of the Fund have been deferred and
are being amortized on a straight-line basis over a five-year period
beginning with the commencement of operations for the Fund. The amount of
such cost aggregated $31,677.
(E) 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. 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 capital gains to its
shareholders.
(F) Dividends and Distributions to Shareholders. Dividends and
distributions to shareholders are recorded daily by the Fund and
distributed monthly to shareholders.
3. TRANSACTIONS WITH AFFILIATES.
(A) Advisory Fees. Republic serves as investment adviser to the Fund.
Republic is responsible for the investment management of the Fund's
assets, including the responsibility for making investment decisions and
placing orders for the purchase and sale of the Fund's investments
directly with the issuers or with brokers or dealers selected by it in its
discretion. Republic does not place orders with the Distributor. Republic
also furnishes to the Board of Trustees, which has overall responsibility
for the business affairs of the Trust, periodic reports on the investment
performance of the Fund. For its services as Investment Adviser, Republic
receives a fee payable monthly, at the annual rate of 0.15% of the Fund's
average daily net assets. During the six months ended April 30, 1996,
advisory fees were $48,160, of which $32,107 was waived.
(B) Administration. The Fund retains Signature to serve as
Administrator, Distributor, and Sponsor. Signature provides management and
administrative services necessary for the operation of the Fund, furnishes
office space and facilities required for conducting business of the Fund
and pays the compensation of the Fund's officers.
For these services, Signature receives from the Fund a fee, payable
monthly, at an annual rate of 0.15% of the Fund's average daily net
assets. During the six months ended April 30, 1996, the administration
fees were $48,160, of which $16,053 was waived.
(C) Distribution Expenses and Shareholder Service Fees. The Trust has
adopted a noncompensatory Distribution Plan and Agreement (the "Plan")
pursuant to Rule 12b-1 of the Act, as amended. Pursuant to the plan
Signature, the distributor is reimbursed by the Fund for marketing costs
and services rendered in distributing the Fund. The Fund has also entered
into a shareholder servicing agreement pursuant to which shareholder
servicing agents may be paid for certain services provided to its
customers. It is currently intended that distribution expenses and
shareholder service fees in the aggregate not exceed, on an annual basis,
0.25% of average daily net assets which, for the six months ended April
30, 1996, totaled $80,267. Of this amount Signature was reimbursed $23,921
for distribution expenses and the balance of $56,346 was waived.
(D) Trustees' Fees and Expenses. The fees paid and the amount of
out-of-pocket expenses reimbursed to the Trustees amounted to $4,817 for the
six months ended April 30, 1996.
(E) Expense Waivers. The Adviser and Sponsor have voluntarily agreed
to waive all or a portion of their fees for the six months ended April 30,
1996. For the six months ended April 30, 1996 expenses for the Fund were
voluntarily limited to no more than 0.50% of average daily net assets on
an annualized basis. For the six months ended April 30, 1996, the Adviser
and Sponsor voluntarily waived expenses aggregating $104,506.
4. SUBSEQUENT EVENT. On January 15, 1996, the Trustees approved a Multiple
Class Plan pursuant to Rule 18f-3 under the 1940 Act, pursuant to which
the Fund is authorized to issue two classes of shares, Class C shares and
Class Y shares, effective May 22, 1996. The existing shares of the Fund
have been designated as Class C shares. The Class C shares are subject to
the terms of the Distribution and Administration Services Plans previously
adopted by the Board pursuant to Rule 12b-1 under the 1940 Act for the
existing shares of the Fund.
<PAGE>
- -----
REPUBLIC
NEW YORK TAX FREE
MONEY MARKET
FUND
INVESTMENT ADVISER
Republic National Bank of New York
452 Fifth Avenue
New York, NY 10018
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 02111
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
99 High Street
Boston, MA 02110
LEGAL COUNSEL
Dechert Price & Rhoads
1500 K Street, N.W.
Washington, D.C. 20005
SHAREHOLDER SERVICING AGENTS:
Republic National Bank of New York
Republic Bank for Savings
452 Fifth Avenue
New York, NY 10018
(800) 782-8183
FOR NON-REPUBLIC CLIENTS:
Investors Bank & Trust Company
89 South Street
Boston, MA 02111
(800) 782-8183
- -----
REPUBLIC
NEW YORK TAX FREE
MONEY MARKET
FUND
SEMI-ANNUAL REPORT
APRIL 30, 1996
