PRESIDENT'S MESSAGE
December 1995
Dear Shareholder:
We are pleased to present you with the first Republic International Equity
Fund annual report for the period January 9, 1995 (commencement of operations)
through October 31, 1995. 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.
Audited financial statements and portfolio holdings for the period January
9, 1995 through October 31, 1995 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>
REPUBLIC INTERNATIONAL EQUITY FUND
ANNUAL REPORT -- OCTOBER 31, 1995
TABLE OF CONTENTS
PAGE
----
President's Message ................................................. 1
Letter to Shareholders from Investment Manager ...................... 3
Performance Graph ................................................... 4
REPUBLIC INTERNATIONAL EQUITY FUND
Statement of Assets and Liabilities ................................. 5
Statement of Operations ............................................. 6
Statement of Changes in Net Assets .................................. 7
Financial Highlights ................................................ 8
Notes to Financial Statements ....................................... 9
Independent Auditors' Report ........................................ 11
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments ............................................. 12
Statement of Assets and Liabilities ................................. 18
Statement of Operations ............................................. 19
Statement of Changes in Net Assets .................................. 20
Financial Highlights ................................................ 20
Notes to Financial Statements ....................................... 21
Independent Auditors' Report ........................................ 24
LETTER TO SHAREHOLDERS FROM INVESTMENT MANAGER
December 1995
DEAR SHAREHOLDER:
We are pleased to present the annual report for the Republic International
Equity Fund (the "Fund") for the period ending October 31, 1995. The Fund's
primary 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 and U.S. registered securities) and securities whose
principal markets are outside of the United States. Since its inception on
January 9, 1995, the Fund returned 8.31% as compared to 8.03% for the Morgan
Stanley Capital International EAFE Index.
Stock and bond markets around the world posted strong gains since the Fund's
inception as impressive earnings from many leading companies and shifting
sentiments regarding the strength of economic activity provided solid
underpinnings to the markets. Recently released economic data continues to
reinforce that the Federal Reserve may have achieved the desired "soft landing"
scenario in the U.S. -- moderate and sustainable growth with low and controlled
inflation. Overall, a slow growth and low inflation environment is also
developing in key global economies. The strong bond market rally around the
world, supported by a generally favorable inflation outlook, makes equity
valuations reasonable. Although the profit outlook from here is more mixed after
the strong recovery enjoyed in most countries, we believe equity markets can
rise further. Stock selection once again will be very important as our
investment strategy continues to use extensive fundamental research to identify
attractive businesses with outstanding long-term potential, selling at
reasonable prices.
As of October 31, 1995, the Republic International Equity Portfolio (the
"Portfolio"), in which the Fund invests all of its assets, was broadly
diversified with 135 equity holdings representing 22 countries. The Portfolio's
weightings by geographical region were: Europe 47.5%, Japan 29.1%, Pacific
ex-Japan 17.1%, and 6.3% in other regions. The largest five holdings of the
Portfolio as of October 31 represented 10% of the Portfolio: Mannesman AG
(Germany -- machinery & engineering), Astra AB (Sweden -- health & personal
care), Nintendo (Japan -- recreation), Kyocera (Japan -- electrical components)
and Asea Brown Boveri (Sweden -- electrical & electronics). As compared to its
benchmark, the Morgan Stanley Capital International EAFE Index, the Portfolio is
most significantly overweighted in Sweden and Australia and underweighted in
Japan. These favorable country weightings and strong stock selection contributed
to the Fund's outperformance of the index for the period since inception.
The Republic International Equity Fund will continue to strive to make the
appropriate adjustments as market conditions change in this international
marketplace. We appreciate your continued support.
Sincerely,
Republic National Bank of New York
<PAGE>
COMPARISON OF $10,000 INVESTMENT IN THE
REPUBLIC INTERNATIONAL EQUITY FUND AND
THE MORGAN STANLEY CAPITAL INTERNATIONAL EAFE INDEX
AVERAGE ANNUAL TOTAL RETURN
- ---------------------------
Fiscal Year Inception
to Date to 10/31/95
10/31/95 (Annualized)
- -------------------------------
8.31% 10.38%
- -------------------------------
Line graph with two axes: the X-axis represents years of operations; the Y-axis
represents dollar value. The graph plots two lines: the first line represents
the growth of a ten thousand dollar investment in the Fund from January, 1995 to
October, 1995; the second line represents the growth of a ten thousand dollar
investment in a portfolio of securities reflecting the composition of the Morgan
Stanley Capital International EAFE Index for the same time period. The graph
points are as follows:
Year Fund Morgan Stanley
1/31/95 $10,000 $10,000
2/28/95 9,979 9,970
3/31/95 10,175 10,600
4/30/95 10,483 11,000
5/31/95 10,565 10,870
6/30/95 10,605 10,680
7/31/95 11,192 11,350
8/31/95 11,059 10,920
9/30/95 11,295 11,140
10/31/95 10,831 10,803
Past performance is not predictive of future performance.
SIGNATURE BROKER-DEALER SERVICES, INC. IS THE DISTRIBUTOR OF THE REPUBLIC
INTERNATIONAL EQUITY FUND (THE "FUND").
REPUBLIC NATIONAL BANK OF NEW YORK ("REPUBLIC") SERVES AS INVESTMENT MANAGER AND
MAKES THE FUND AVAILABLE SOLELY IN ITS CAPACITY AS SHAREHOLDER SERVICING AGENT
FOR CUSTOMERS. INVESTMENTS IN THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY, REPUBLIC OR ANY OTHER BANK. SHARES OF THE FUND ARE
NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD, OR ANY OTHER GOVERNMENTAL AGENCY.
Performance data quoted herein represents past performance. Please remember that
past performance is not a guarantee of future performance. Fund returns are net
of fees. All returns assume reinvestment of income and capital gains and reflect
the reimbursement of certain Fund expenses as described in the Prospectus.
MORE COMPLETE INFORMATION ABOUT THE FUND, INCLUDING MANAGEMENT FEES AND OTHER
EXPENSES, IS PROVIDED IN THE PROSPECTUS, WHICH SHOULD BE READ CAREFULLY BEFORE
INVESTING. YOU MAY OBTAIN ADDITIONAL COPIES OF THE PROSPECTUS BY CALLING 1-
800-782-8183.
<PAGE>
REPUBLIC INTERNATIONAL EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES -- OCTOBER 31, 1995
ASSETS:
Investment in Republic International Equity Portfolio
("Portfolio"), at value (Note 1) ........................... $34,220,743
Tax reclaim receivable ..................................... 26,683
Prepaid insurance .......................................... 2,695
Deferred organization expenses (Note 2) .................... 48,660
-----------
Total Assets ......................................... 34,298,781
-----------
LIABILITIES:
Organization expense payable (Note 2) ...................... 5,613
Administration fee payable (Note 3) ........................ 689
Other accrued expenses ..................................... 48,450
-----------
Total Liabilities .................................... 54,752
-----------
NET ASSETS:
Applicable to 3,171,731 shares of beneficial interest
outstanding (par value $0.001, unlimited number of
authorized shares) ....................................... $34,244,029
===========
REPRESENTED BY:
Paid-in capital ............................................ $32,553,494
Undistributed net investment income ........................ 23,782
Accumulated net realized gain from Portfolio ............... 30,820
Net unrealized appreciation from Portfolio ................. 1,635,933
-----------
Net Assets ........................................... $34,244,029
===========
Net Asset Value, Offering and Redemption Price Per Share ... $10.80
======
See accompanying notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY FUND
STATEMENT OF OPERATIONS -- FOR THE PERIOD ENDED OCTOBER 31, 1995*
NET INVESTMENT INCOME FROM PORTFOLIO (NOTE 2):
Dividend income (net of foreign withholding tax $73,375) ........ $ 319,659
Interest income (net of foreign withholding tax $128) ........... 95,183
Allocated expenses .............................................. (114,755)
----------
Net investment income from Portfolio ........................ 300,087
EXPENSES (NOTE 2):
Administration fees ............................... $ 20,274
Registration fees ................................. 14,970
Transfer agent fees ............................... 38,377
Fund accounting fees .............................. 9,732
Trustees' fees and expenses ....................... 5,792
Audit ............................................. 8,000
Legal ............................................. 1,407
Insurance ......................................... 2,376
Printing .......................................... 6,266
Miscellaneous ..................................... 103
Amortization of organization expenses ............. 9,420
---------
Total expenses .................................. 116,717
Less: reimbursement of expenses ................. (22,082)
Less: waiver of fees ............................ (12,168)
---------
Net expenses ................................................ 82,467
----------
NET INVESTMENT INCOME ........................................... 217,620
----------
NET REALIZED AND UNREALIZED GAIN FROM PORTFOLIO:
Net realized gain (loss) on:
Investments ................................................. 30,820
Foreign currency transactions ............................... (124,228)
Net unrealized appreciation from Portfolio ...................... 1,635,933
----------
Net realized and unrealized gain from Portfolio ................. 1,542,525
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............ $1,760,145
==========
*For the period January 9, 1995 (commencement of operations) to October 31,
1995.
See accompanying notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD
JANUARY 9, 1995
(COMMENCEMENT
OF OPERATIONS)
THROUGH
OCTOBER 31, 1995
----------------
INCREASE IN NET ASSETS FROM:
OPERATIONS:
Net investment income ...................................... $ 217,620
Net realized loss from Portfolio ........................... (93,408)
Net unrealized appreciation from Portfolio ................. 1,635,933
-----------
Net increase in net assets resulting from operations ... 1,760,145
-----------
DIVIDENDS TO SHAREHOLDERS:
Dividends paid to shareholders from net investment income .. (69,610)
-----------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST:
Proceeds from sales of shares .............................. 32,852,624
Net asset value of shares issued to shareholders from 69,610
reinvestment of dividends ..................................
Cost of shares redeemed .................................... (368,840)
-----------
Net increase in net assets resulting from capital share
transactions ........................................ 32,553,394
-----------
TOTAL INCREASE IN NET ASSETS ............................... 34,243,929
NET ASSETS:
Beginning of period .................................... 100
-----------
End of period (including undistributed net investment
income of $23,782) .................................... $34,244,029
===========
ANALYSIS OF FUND SHARE TRANSACTIONS:
Shares sold ................................................ 3,201,989
Shares issued in reinvestment of dividends ................. 6,700
Shares redeemed ............................................ (36,958)
-----------
Net increase in shares outstanding ..................... 3,171,731
===========
See accompanying notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
FOR THE PERIOD
JANUARY 9, 1995
(COMMENCEMENT
OF OPERATIONS)
THROUGH
OCTOBER 31, 1995
----------------
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
Net asset value, beginning of period ..................... $10.00
-----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .................................... 0.08
Net realized and unrealized gain from Portfolio .......... 0.75
-----
Total increase from investment operations ................ 0.83
-----
LESS DIVIDENDS:
Dividends from net investment income ..................... (0.03)
-----
Total dividends .......................................... (0.03)
-----
Net asset value, end of period ........................... $10.80
-----
-----
TOTAL RETURN ............................................... 8.31%(a)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ..................... $34,244
Ratio of expenses to average net assets (b) .............. 1.14%(c)
Ratio of net investment income to average net assets (b) . 1.26%(c)
- ------------------------------------------------------------------------------
(a) Not annualized.
(b) Reflects a voluntary expense limitation and waiver of fees 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 period January 9, 1995 (commencement of operations) to
October 31, 1995 would have been 2.12% and 0.28%, respectively.
(c) Annualized.
See accompanying notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY FUND
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 1995
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. On October 6, 1994, the Fund
was initiated with a sale of ten shares for $100 to Signature Financial
Group, Inc. 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 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 "Port- folio"), a diversified open-end
management investment company having the same investment objectives as the
Fund. The value of such investment reflects the Fund's proportionate
interest (86% at October 31, 1995) 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 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.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to realized losses on
foreign currency transactions. During the period ended October 31, 1995, the
Fund reclassified the effects of certain differences between the financial
statement amounts and distributions determined in accordance with income tax
regulations. These differences decreased undistributed net investment income
and increased accumulated net realized gain by $124,228.
(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 period from January 9, 1995 to
October 31, 1995, Signature's fee for these services aggregated $20,274, of
which $5,914 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 period January 9, 1995
to October 31, 1995, fees for these services aggregated $9,732, of which
$6,254 was waived.
(C) Reimbursement and Waiver of Expenses: The Manager and Sponsor have
voluntarily agreed to waive a portion of their fees, and to the extent
necessary, reimburse the Fund for additional expenses during the period
January 9, 1995 through October 31, 1995. For the period ended October 31,
1995, expenses of the Fund were voluntarily limited to no more than 1.14% of
the average daily net assets on an annualized basis and accordingly, the
Manager and Sponsor waived fees and reimbursed expenses aggregating $34,250.
(D) Trustees' Fees: The fees and expenses of the Trustees amounted to
$5,792, for the period January 9, 1995 to October 31, 1995.
4. INVESTMENT TRANSACTIONS. Additions and reductions in the Fund's
investment in the Portfolio amounted to $32,839,363, and $430,735,
respectively.
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To the Shareholders of Republic International Equity Fund
and the Board of Trustees of Republic Funds:
We have audited the accompanying statement of assets and liabilities of
Republic International Equity Fund (the "Fund", one of the series comprising
the Republic Funds, the "Trust"), as of October 31, 1995, and the related
statement of operations, the statement of changes in net assets and the
financial highlights for the period from January 9, 1995 (commencement of
operations) to October 31, 1995. These financial statements and financial
highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Republic International Equity Fund, a portfolio of Republic
Funds, at October 31, 1995, the results of its operations, the changes in
its net assets and its financial highlights for the period from January 9,
1995 (commencement of operations) to October 31, 1995, in conformity with
generally accepted accounting principles.
Ernst & Young LLP
December 8, 1995
Boston, Massachusetts
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS -- OCTOBER 31, 1995
VALUE
SECURITY DESCRIPTION SHARES (NOTE 1)
- -------------------- ------ --------
COMMON STOCKS -- 92.7%
ARGENTINA -- 0.8%
Telecom Argentina Stet ADS (Telecommunications) .... 6,000 $ 230,250
YPF Soc Anonima ADR D Sponsored (Energy Sources) ... 6,000 103,500
-----------
333,750
-----------
AUSTRALIA -- 4.0%
Brambles Industries Ltd. (Business & Public
Services) ........................................ 34,000 361,367
Coca Cola Amatil Ltd. (Beverages & Tobacco) ........ 59,625 461,218
Western Mining Corp. (Metals: Nonferrous) .......... 63,000 403,866
Westpac Banking Corp. (Banking) .................... 86,000 352,916
-----------
1,579,367
-----------
BRAZIL -- 0.6%
Electrobras ADR (Utilities: Electric & Gas) ........ 6,000 85,234
Telebras PN Sponsored ADR (Telecommunications) ..... 3,500 140,000
-----------
225,234
-----------
CANADA -- 4.6%
Alcan Aluminum Ltd. (Metals: Nonferrous) ........... 10,300 325,738
Bombardier Class B Sub Voting (Machinery &
Engineering) ..................................... 27,400 334,458
Cominco Ltd. (Metal: Nonferrous) ................... 6,000 116,250
Inco Ltd. (Metal: Nonferrous) ...................... 6,000 206,250
Petro-Canada (Energy Services) ..................... 16,800 181,588
Rogers Communication Class B (Broadcasting &
Publishing) ...................................... 27,000 264,163
Seagrams Company Ltd. (Beverages & Tobacco) ........ 11,000 396,000
-----------
1,824,447
-----------
DENMARK -- 1.0%
Tele Danmark B ADR (Telecommunications) ............ 15,000 391,875
-----------
FRANCE -- 3.8%
Canal Plus (Broadcasting & Publishing) ............. 717 123,986
Compagnie De Saint Goban (Miscellaneous Materials &
Commodities) ..................................... 2,000 238,614
Eurotunnel/Euro SA (Business & Public Services) .... 58,400 91,426
Euro Disneyland (Leisure & Tourism) ................ 105,000 353,470
Havas (Business & Public Services) ................. 2,200 152,623
Pechiney Cert Inv (Metals: Nonferrous) ............. 2,300 120,023
Renault (Automobiles) .............................. 5,300 165,945
Valeo (Industrial Components) ...................... 6,200 280,275
-----------
1,526,362
-----------
GERMANY -- 6.0%
Landis & Gyr AG (Electrical & Electronics) ......... 530 $ 319,446
Mannesman AG (Machinery & Engineering) ............. 3,050 1,002,849
Muchener Rueckversicherungs Nam (Insurance) ........ 175 362,904
Siemens AG (Electrical & Electronics) .............. 500 261,879
Volkswagen AG (Automobiles) ........................ 600 188,851
Wolters Kluwer (Broadcasting & Publishing) ......... 2,900 263,753
-----------
2,399,682
-----------
HONG KONG -- 4.2%
Citic Pacific (Multi-Industry) ..................... 90,000 281,130
Consolidated Electric Power Asia (Electric & Gas) .. 66,000 133,600
Hong Kong Electric (Utilities: Electric & Gas) ..... 105,000 357,184
Hong Kong Telecom (Telecommunications) ............. 142,000 247,953
Hutchison Whampoa (Multi-Industry) ................. 58,000 319,584
Swire Pacific Class A (Multi-Industry) ............. 47,000 352,593
-----------
1,692,044
-----------
ITALY -- 1.6%
Italcementi Fabbriche Riunite (Building Materials &
Components) ...................................... 22,200 137,475
Telecom Italia Mobile (Telecommunications) ......... 178,000 196,368
Telecom Italia Mobile ORD (Telecommunications) ..... 125,000 210,539
Telecom Italia Ord (Telecommunications) ............ 70,500 108,158
-----------
652,540
-----------
JAPAN -- 28.3%
Banyu Pharmaceutical (Health & Personal Care) ...... 31,000 327,433
Bridgestone Corp. (Industrial Components) .......... 35,000 486,064
Chudenko (Construction & Housing) .................. 7,150 260,826
Fuji Photo Film (Recreational & Other Consumer) .... 13,000 321,663
Hitachi Ltd. (Electrical & Electronics) ............ 46,000 472,372
Ito Yokado Co. Ltd. (Merchandising) ................ 5,000 273,350
Kao Corporation (Food & Household Products) ........ 23,000 278,924
Kawasaki Heavy Industries (Machinery & Engineering) 78,000 326,494
Kawasaki Kisen (Transportation: Shipping) .......... 122,000 326,924
Kokusai Electric (Electrical & Electronics) ........ 6,000 136,724
Kyocera Corp. (Electronic Components) .............. 8,000 655,648
Makita Corp. (Electrical & Electronics) ............ 17,000 264,352
Mitsubishi Heavy Industries, Inc. (Machinery &
Engineering) ..................................... 70,000 540,147
Mitsui Fudosan (Real Estate) ....................... 30,000 343,276
Murata Mfg. (Electronic Components) ................ 11,000 377,604
JAPAN continued
Nihon Dempa Kogyo (Electronic Components) .......... 4,000 $ 102,494
Nikon Corporation (Industrial Components) .......... 23,000 328,411
Nintendo (Recreation, Other Consumer Products) ..... 10,300 757,516
Nippon Telephone & Telegraph (Telecommunications) .. 69 568,305
Nomura Securities (Financial Services) ............. 24,000 438,924
Omron Corp. (Electrical & Electronics) ............. 13,000 305,134
Orix Corporation (Financial Services) .............. 7,000 246,455
Sankyo Co. (Health & Personal Care) ................ 25,500 561,125
Secom (Business & Public Services) ................. 4,000 260,538
Sekisui House (Construction & Housing) ............. 29,000 334,670
Sony Corp. (Appliances & Household Goods) .......... 7,600 341,907
Sumitomo Bank (Banking) ............................ 12,000 212,421
Sumitomo Reality & Development (Real Estate) ....... 30,000 197,164
Suzuki Motor (Automobiles) ......................... 21,000 211,540
Tokyo Broadcast Systems (Broadcasting Publishing) .. 17,000 249,389
Tostem Corp. (Building Materials & Components) ..... 6,000 184,254
Toyota Motor Corp. (Automobiles) ................... 16,000 297,311
Yasuda Fire & Marine (Insurance) ................... 52,000 315,306
-----------
11,304,665
-----------
MALAYSIA -- 1.5%
Renong Berhad (Multi-Industry) ..................... 136,000 207,748
Sime Darby BHD (Multi-Industry) .................... 156,000 390,000
-----------
597,748
-----------
MEXICO -- 1.4%
Grupo Financiero Banamex "L" (Finance) ............. 3,100 5,091
Grupo Financiero Banamex "B" (Finance) ............. 76,800 130,425
Telefonos de Mexico L ADR (Telecommunications) ..... 15,900 437,250
-----------
572,766
-----------
NETHERLANDS -- 2.7%
Aegon (Insurance) .................................. 9,500 360,409
ABN-AMRO Holding (Banking) ......................... 9,200 386,320
International Nederlanden Group (Insurance) ........ 5,500 327,792
-----------
1,074,521
-----------
NEW ZEALAND -- 1.8%
Brierly Investments (Multi-Industry) ............... 367,000 285,625
Lion Nathan (Beverages & Tobacco) .................. 94,000 213,272
Telecom New Zealand (Telecommunications) ........... 56,000 232,320
-----------
731,217
-----------
NORWAY -- 1.3%
Orkla AS A-Aksjer (Multi-Industry) ................. 7,000 $ 361,809
Norsk Hydro Ord (Energy Sources) ................... 4,200 167,196
-----------
529,005
-----------
PHILIPPINE -- 0.6%
Philippine Long Distance Telephone ADR
(Telecommunications) ............................. 4,000 224,500
-----------
SINGAPORE -- 2.1%
City Developments (Real Estate) .................... 35,000 216,814
Overseas Chinese Banking Corp. Foreign (Banking) ... 27,000 317,310
Singapore Press Holdings Ltd. (Broadcasting &
Publishing) ...................................... 19,400 303,533
-----------
837,657
-----------
SPAIN -- 2.2%
Banco De Santander (Banking) ....................... 5,400 235,138
Corporacion Mapfre Regular (Insurance) ............. 3,000 153,468
Repsol SA ADR (Energy Sources) ..................... 4,600 136,275
Repsol SA ADS (Energy Sources) ..................... 1,500 44,751
Telefonica de Espana (Telecommunications) .......... 25,900 326,466
-----------
896,098
-----------
SWEDEN -- 9.1%
AGA AB Free (Chemicals) ............................ 26,000 336,925
Akt Electrolux B Free (Appliances & Household
Durables) ........................................ 4,500 192,571
Asea A Free (Electrical & Electronics) ............. 6,500 651,322
Astra AB A Free (Health & Personal Care) ........... 24,500 900,776
Ericsson B Free (Electrical & Electronics) ......... 15,600 331,440
Hennes & Mauritz B Free (Merchandising) ............ 7,800 510,088
Sandvik A Free (Machinery & Engineering) ........... 9,500 178,219
Sandvik B Free (Machinery & Engineering) ........... 8,200 154,449
Svenska Handelsbken A Free (Banking) ............... 16,000 280,871
Svenska Handelsbken B Free (Banking) ............... 5,100 85,685
-----------
3,622,346
-----------
SWITZERLAND -- 5.3%
BBC Brown Boveri A Inhager (Electrical &
Electronics) ..................................... 125 144,853
Baloise Holding Namen (Insurance) .................. 163 334,175
CS Holding Inhaber (Banking) ....................... 3,275 334,272
Elektrowatt Inhaber (Electric & Gas) ............... 580 175,046
Holderbank Finan Glaris Class B (Building Materials
& Components) .................................... 470 377,158
SWITZERLAND continued
Nestle Registered Shares (Food & Household Products) 489 $ 512,019
Swissair (Transportation: Airlines) ................ 350 220,194
-----------
2,097,717
-----------
UNITED KINGDOM -- 9.8%
Allied Irish Banks PLC (Banking) ................... 55,000 278,323
BAT Industries (Multi-Industry) .................... 15,200 124,681
Bicc PLC (Industrial Components) ................... 39,000 161,649
British Petroleum PLC ADR (Energy Sources) ......... 2,400 211,800
British Sky Broadcasting PLC (Broadcasting &
Publishing) ...................................... 50,000 299,789
Cable & Wireless PLC (Telecommunications) ......... 38,207 249,329
Carlton Communications (Broadcasting & Publishing) . 11,000 166,814
English China Clays (Miscellaneous Materials &
Commodities) ..................................... 19,000 103,099
Mai PLC (Business & Public Services) ............... 46,000 237,964
Morgan Crucible Co. (Industrial Components) ........ 51,800 319,595
National Westminster Bank (Banking) ................ 8,600 85,848
News International PLC (Broadcasting & Publishing) . 40,000 180,347
Reckitt & Coleman PLC (Food & Household Products) .. 28,400 301,472
Rolls-Royce PLC (Aerospace & Military Technology) .. 55,407 134,987
Storehouse PLC (Merchandising) ..................... 50,000 238,882
Thorn EMI PLC (Recreation, Other Consumer Products) 17,000 395,342
Vodafone Group PLC (Telecommunications) ............ 50,000 204,869
Zeneca Group PLC (Health & Personal Care) .......... 11,000 205,490
-----------
3,900,280
-----------
TOTAL COMMON STOCK ................................. 37,013,821
-----------
WARRANTS -- 0.4%
ITALY -- 0.3%
Softe-Sip Risp Warrants (Telecommunications) (a) ... 110,000 143,534
SWEDEN -- 0.1%
Ericson B Free (Electrical & Electronics) .......... 1,560 33,144
-----------
176,678
-----------
PREFERRED STOCK -- 0.3%
GERMANY -- 0.3%
Volkswagon N/V VZG (Automobiles) ................... 600 $ 136,689
-----------
PRINCIPAL
AMOUNT
----------
LONG TERM CORPORATE DEBT -- 0.7%
JAPAN -- 0.7%
MBL International Fin (Banking), 3.00%, 11/30/02 ... $ 270,000 282,150
-----------
REPURCHASE AGREEMENTS -- 4.1%
UNITED STATES -- 4.1%
Salomon Brothers, 5.35%, dated 10/31/95, due 11/01/ 95, proceeds $1,655,619
(collateralized by various U.S. Treasury Securities with rates from 6.50% to
7.50%, due from 4/18/96 to 11/19/97, value
$1,699,252) ...................................... 1,655,373 1,655,373
-----------
TOTAL INVESTMENTS 98.3%
(Identified Cost $38,082,840) .................... 39,264,711
-----------
OTHER ASSETS LESS LIABILITIES 1.7% ................. 664,197
-----------
TOTAL NET ASSETS 100.0% ............................ $39,928,908
===========
- ------------------------------------------------------------------------------
<PAGE>
(a) Non-income producing security.
Note: ADR = American depository receipt.
ADS = American depository shares.
<TABLE>
<CAPTION>
INDUSTRY DIVERSIFICATION
PERCENT OF PERCENT OF
---------- ----------
PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
Electrical & Electronics ................... 10.8% Automobiles ............................ 2.7%
Telecommunications ......................... 10.4% Energy Sources ......................... 2.2%
Banking .................................... 7.6% Real Estate ............................ 2.1%
Machinery & Engineering .................... 6.7% Utilities: Electric & Gas .............. 2.0%
Multi-Industry ............................. 6.2% Building Materials & Components ........ 1.9%
Health & Personal Care ..................... 5.3% Financial Services ..................... 1.8%
Insurance .................................. 4.9% Construction & Housing ................. 1.6%
Broadcasting & Publishing .................. 4.9% Appliances & Household Goods ........... 1.4%
Industrial Components ...................... 4.2% Leisure & Tourism ...................... 0.9%
Recreation & Other Consumer ................ 3.9% Miscellaneous Materials & Commodities .. 0.9%
Metals: Nonferrous ......................... 3.1% Chemicals .............................. 0.9%
Business & Public Services ................. 2.9% Transportation: Shipping ............... 0.9%
Food & Household Products .................. 2.9% Transportation: Airlines ............... 0.6%
Beverages & Tobacco ........................ 2.8% Finance ................................ 0.4%
Merchandising .............................. 2.7% Aerospace & Military Technology ........ 0.4%
------
Total .......................... 100.0%
------
</TABLE>
See accompanying notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES -- OCTOBER 31, 1995
ASSETS:
Investment at value (cost $38,082,840) .......................... $39,264,711
Cash ............................................................ 120,885
Foreign currency at value (cost $321,525) ....................... 324,162
Receivable for investments sold ................................. 135,150
Interest receivable ............................................. 754
Dividends receivable ............................................ 57,682
Prepaid insurance ............................................... 2,696
Net unrealized appreciation on forward currency contracts ....... 521,069
Deferred organization expenses .................................. 56,965
Receivable from affiliate (Note 2) .............................. 51,071
-----------
Total assets .............................................. 40,535,145
-----------
LIABILITIES:
Payable for investments purchased ............................... 553,714
Withholding tax payable ......................................... 150
Sub-advisery fees payable (Note 2) .............................. 22,164
Administration fee payable (Note 2) ............................. 1,583
Accrued expenses and other liabilities .......................... 28,626
-----------
Total liabilities ......................................... 606,237
-----------
NET ASSETS:
Applicable to investors' beneficial interest .................... $39,928,908
===========
See accompanying notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF OPERATIONS -- FOR THE PERIOD ENDED OCTOBER 31, 1995*
INVESTMENT INCOME (NOTE 1):
Dividends (net of foreign withholding tax $79,144) .............. $ 313,008
101,630
Interest (net of foreign withholding tax $150) .................. ----------
Investment Income ........................................... 414,638
EXPENSES (NOTE 2):
Sub-advisery fees ................................. $ 131,059
Administration fees ............................... 9,433
Custody fees ...................................... 41,964
Fund accounting fees .............................. 40,548
Audit fees ........................................ 15,000
Legal fees ........................................ 1,641
Trustees' fees and expenses ....................... 6,745
Insurance ......................................... 2,376
Printing .......................................... 3,342
Amortization of organization expenses ............. 11,028
Other expenses .................................... 836
---------
Total expenses .................................. 263,972
Less: reimbursement of expenses ................. (129,834)
Less: waiver of fees ............................ (12,835)
---------
Net expenses ................................................ 121,303
----------
NET INVESTMENT INCOME ........................................... 293,335
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments ................................................. 32,114
Foreign currency transactions ............................... (130,372)
Net unrealized appreciation of investments ...................... 1,181,871
Net unrealized appreciation of foreign currency contracts and 518,726
translations ....................................................
----------
Net realized and unrealized gain on investments and foreign 1,602,339
currency transactions ...........................................
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............ $1,895,674
==========
*For the period January 9, 1995 (commencement of operations) to October 31,
1995.
See accompanying notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD
JANUARY 9, 1995
(COMMENCEMENT
OF OPERATIONS)
THROUGH
OCTOBER 31, 1995
-------------------
INCREASE IN NET ASSETS FROM:
OPERATIONS:
Net investment income ................................... $ 293,335
Net realized loss from investment and foreign currency
transactions ............................................ (98,258)
Net unrealized appreciation of investments and foreign
currency and translations ............................... 1,700,597
-----------
Net increase in net assets resulting from operations .... 1,895,674
-----------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST:
Additions ............................................... 38,444,279
Reductions .............................................. (461,145)
-----------
Net increase in net assets from transactions in
investors' beneficial interest .......................... 37,983,134
-----------
NET INCREASE IN NET ASSETS .............................. 39,878,808
NET ASSETS:
Beginning of period ..................................... 50,100
-----------
End of period ........................................... $39,928,908
===========
- ------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR THE PERIOD
JANUARY 9, 1995
(COMMENCEMENT
OF OPERATIONS)
THROUGH
OCTOBER 31, 1995
-------------------
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (in 000's) .................. $39,929
Ratios:
Expenses to average net assets (a) ...................... 0.64%(b)
Net investment income to average net assets (a) ......... 1.55%(b)
Portfolio turnover ...................................... 3%(c)
(a) The Portfolio expenses reflect reimbursements and waivers by Republic and
Signature Financial Services, Inc. If this agreement to reimburse the
Portfolio had not been in place for the period January 9, 1995 (commencement
of operations) to October 31, 1995, the annualized ratios of expenses and
net investment income to average daily net assets would have been 1.39% and
0.80%, respectively.
(b) Annualized.
(c) Not annualized.
See accompanying notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 1995
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. 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 was initially
capitalized with an investment of $50,000 from Republic International Equity
Fund Ltd., a Cayman Island exempted company, and $100 from Republic
International Equity Fund. 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.
The following is a summary of the significant accounting policies of the
Portfolio:
(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.
<PAGE>
SUMMARY OF OPEN FORWARD FOREIGN CURRENCY CONTRACTS
AT OCTOBER 31, 1995
- ------------------------------------------------------------------------------
U.S. DOLLAR NET UNREALIZED
EXPIRATION COST/ VALUE AT APPRECIATION/
SALE CONTRACTS DATE PROCEEDS 10/31/95 (DEPRECIATION)
-------------- ---------- -------- ----------- --------------
British Pound $ (7)
Sterling ........... 11/03/95 $ 29,889 $ 29,896
Canadian Dollar .... 11/27/95 182,000 185,917 (3,917)
Canadian Dollar .... 1/24/96 253,000 258,852 (5,852)
French Franc ....... 05/13/96 100,433 99,487 946
Hong Kong Dollars .. 8/14/96 165,000 165,486 (486)
Japanese Yen ....... 11/01/95 79,066 78,785 281
Japanese Yen ....... 12/12/95 353,162 315,846 37,316
Japanese Yen ....... 02/16/96 751,793 626,039 125,754
Japanese Yen ....... 04/10/96 1,414,181 1,323,013 91,168
Japanese Yen ....... 04/11/96 622,004 547,316 74,688
Japanese Yen ....... 06/28/96 1,007,300 860,265 147,035
Japanese Yen ....... 07/19/96 128,812 115,224 13,588
Japanese Yen ....... 08/06/96 260,000 229,579 30,421
Japanese Yen ....... 10/15/96 682,000 669,076 12,924
Japanese Yen ....... 10/30/96 410,000 408,984 1,016
Swiss Franc ........ 11/03/95 2,375 2,377 (2)
Swiss Franc ........ 12/13/95 257,000 259,859 (2,859)
PURCHASE CONTRACTS
------------------
Deutsche Mark ...... 05/16/96 100,433 96,815 (3,618)
Italian Lira ....... 11/30/95 191,378 194,051 2,673
--------
NET UNREALIZED APPRECIATION ON FORWARD FOREIGN
CURRENCY CONTRACTS .................................. $521,069
========
(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 and capital gains derived by the Portfolio
are not subject to taxes in that jurisdiction.
2. 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-Advisory: Capital Guardian Trust Company (the "Sub-Adviser")
continuously manages the investment portfolio of the Portfolio pursuant to a
Sub-Advisory 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 period from
January 9, 1995 to October 31, 1995, the sub-advisory fee was $131,059.
(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 period
from January 9, 1995 to October 31, 1995, Signature (Cayman)'s fee for these
services aggregated $9,433.
(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 period from January 9,
1995 to October 31, 1995, fees for these services aggregated $40,548, of
which $12,835 was waived.
(E) Trustees Fees: The fees and expenses of the Trustees amounted to
$6,745 for the period January 9, 1995 to October 31, 1995.
(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 during the period
January 9, 1995 to October 31, 1995. For the period ended October 31, 1995,
expenses of the Portfolio were voluntarily limited to no more than 0.64% of
the average daily net assets on an annualized basis. For the period ended
October 31, 1995, the Manager and SFSI waived fees and reimbursed expenses
aggregating $142,669.
3. INVESTMENT TRANSACTIONS. Purchase and sales of investments, other than
U.S. Government securities and short-term obligations, aggregated
$38,559,967, and $2,181,655, respectively for the period.
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To Owners of Beneficial Interest of Republic International Equity Portfolio
and the Board of Trustees of Republic Portfolios:
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of Republic International Equity
Portfolio (the "Portfolio", one of the series comprising the Republic
Portfolios, the "Portfolio Trust"), as of October 31, 1995, and the related
statement of operations, the statement of changes in net assets and the
financial highlights for the period from January 9, 1995 (commencement of
operations) to October 31, 1995. These financial statements and financial
highlights are the responsibility of the Portfolio Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 1995, by correspondence with the
custodian and brokers or other appropriate auditing procedures where replies
from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of the Republic International Equity Portfolio, a portfolio of
Republic Portfolios, at October 31, 1995, the results of its operations, the
changes in its net assets and its financial highlights for the period from
January 9, 1995 (commencement of operations) to October 31, 1995, in
conformity with accounting principles generally accepted in the United
States of America.
Ernst & Young LLP
December 8, 1995
Grand Cayman, Cayman Islands
<PAGE>
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 02111
Independent Auditors
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
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
INTERNATIONAL EQUITY
FUND
ANNUAL REPORT
October 31, 1995
