<PAGE>
PRESIDENT'S MESSAGE
May 1997
DEAR SHAREHOLDER:
We are very pleased to present you with the Republic U.S. Government Money
Market Fund (the "Fund") semi-annual report for the six months ended March 31,
1997. In this report, we have provided you with a detailed investment review of
the six-month period from Republic National Bank of New York, the Fund's
adviser.
We hope you find this letter and accompanying financial statements
informative. As always, we would be delighted to hear from you to answer any
questions you might have or to provide you with additional information.
We look forward to serving your financial needs and appreciate your
continued support.
Respectfully submitted,
/s/ George O. Martinez
George O. Martinez
President
<PAGE>
REPUBLIC U.S. GOVERNMENT MONEY MARKET FUND
SEMI-ANNUAL REPORT -- MARCH 31, 1997
TABLE OF CONTENTS
PAGE
----
President's Message ................................................. 1
Letter to Shareholders from Investment Adviser ...................... 3
Statement of Net Assets ............................................. 4
Statement of Operations ............................................. 6
Statements of Changes in Net Assets ................................. 7
Notes to Financial Statements ....................................... 8
Financial Highlights ................................................ 11
<PAGE>
LETTER TO SHAREHOLDERS FROM INVESTMENT ADVISER
May 1997
DEAR SHAREHOLDER:
We are pleased to present the semi-annual report for the Republic U.S.
Government Money Market Fund(1) for the six months ended March 31, 1997.
The most noteworthy event since we last reported was the Federal Reserve's
pre-emptive move against inflation. By mid-February 1997, market sentiment began
shifting to a view that the U.S. economy was not just strong, but gaining
momentum. Among the data supporting the new outlook were: reports of surprising
growth in housing starts and sales, rising personal income, lower unemployment
and a 10-year high in consumer confidence. In an effort to slow down the growth
rate of the economy and keep inflation from accelerating, the federal funds rate
was raised 0.25% to 5.5% at the March meeting of the Federal Open Market
Committee. In response, money center banks promptly raised their prime lending
rates from 8.25% to 8.5%.
Looking ahead, additional Fed rate increases are expected if the economic
momentum does not slow. However, we do not believe that this is the beginning of
a long series of hikes, as real rates are currently high and inflation pressures
are not apparent. We view the higher rates as positive for the U.S. economy as
it will help maintain, rather than derail, its solid performance.
The Republic U.S. Government Money Market Fund (Class C Shares) returned
2.39%(2) for the six months ended March 31, 1997, compared to 2.34%(3) for the
Lipper U.S. Government Money Market Fund Average. For the period from inception
of the Fund's current objective (February 1, 1994), the Fund (Class C Shares)
outperformed the average for comparable funds measured by Lipper Analytical
Services, returning 4.67%(2) versus 4.61%(3) on an annualized basis.
As of March 31, 1997, the Fund's average maturity was 81 days. The ratings
on the portfolio holdings were AAA, consisting of 72% U.S. Treasury bills and
notes, 20% U.S. Government Agencies and 8% Repurchase Agreements(4). The Fund's
(Class C Shares) annualized compounded 7-day yield as of March 31, 1997 was
4.82%(5).
Financial statements and portfolio holdings as of March 31, 1997 follow. We
appreciate your continued support.
Sincerely,
Republic National Bank of New York
- ----------
(1) An investment in the Fund is neither insured nor guaranteed by the U.S.
Government. There can be no assurance that the Fund will be able to maintain
a stable net asset value of $1 per share.
(2) Total return for Class Y Shares for the six months ended March 31, 1997 is
2.50%. Total return for Class Y Shares for the period from inception of the
Fund's current objective (February 1, 1994) to March 31, 1997 was 4.69%
(annualized). This represents total return for Class C Shares for the period
from February 1, 1994 to June 30, 1996 plus the total return for the Class Y
Shares for the period from July 1, 1996 to March 31, 1997.
(3) The Lipper U.S. Government Money Market Fund Average measures the
performance of funds which invest principally in financial instruments
issued or guaranteed by the U.S. Government, its agencies or
instrumentalities with dollar-weighted average maturities of less than 90
days.
(4) Portfolio composition is subject to change.
(5) Past performance is not predictive of future performance as yields on money
market funds fluctuate daily. The 7-day yield for the Class Y Shares was
5.07% as of March 31, 1997. Some of the fees of the Fund are currently being
waived, resulting in higher yields in the Fund than would occur if full fees
were charged. If full fees had been charged, the 7-day yield as of March 31,
1997 would have been 4.97% and 4.72% for Class Y and C shares, respectively.
<PAGE>
REPUBLIC U.S. GOVERNMENT MONEY MARKET FUND
STATEMENT OF NET ASSETS -- MARCH 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MATURITY AMORTIZED
AMOUNT DESCRIPTION DATE COST
------ ----------- ---- ----
U.S. GOVERNMENT AND GOVERNMENT AGENCY
OBLIGATIONS -- (91.0% OF NET ASSETS)
<S> <C> <C>
$ 1,000,000 Federal Farm Credit Bank 5.25% ............ 04/01/97 $ 1,000,000
1,000,000 Federal Farm Credit Bank 5.24% ............ 05/01/97 1,000,000
10,000,000 Federal Farm Credit Bank 5.46%** .......... 05/01/97 9,994,300
10,000,000 Federal Home Loan Bank 5.60% .............. 04/02/97 9,995,866
10,000,000 Student Loan Marketing Assn. 5.65%* ....... 04/01/97 9,991,495
600,000 Student Loan Marketing Assn. 5.76%* ....... 04/01/97 600,115
3,000,000 Student Loan Marketing Assn. 5.76%* ....... 04/01/97 3,001,175
5,000,000 Student Loan Marketing Assn. 5.60%* ....... 04/01/97 4,998,438
10,000,000 Student Loan Marketing Assn. 5.60%* ....... 04/01/97 9,986,328
5,000,000 Student Loan Marketing Assn. 5.62%* ....... 04/01/97 4,982,770
10,000,000 Student Loan Marketing Assn. 5.63%* ....... 04/01/97 9,954,100
5,000,000 Student Loan Marketing Assn. 5.62%* ....... 04/01/97 4,997,592
20,000,000 U.S. Treasury Bills ....................... 04/03/97 19,479,278
5,000,000 U.S. Treasury Bills ....................... 04/03/97 4,875,029
5,000,000 U.S. Treasury Bills ....................... 04/24/97 4,870,325
10,000,000 U.S. Treasury Bills ....................... 05/01/97 9,744,589
5,000,000 U.S. Treasury Bills ....................... 05/08/97 4,872,294
10,000,000 U.S. Treasury Bills ....................... 05/08/97 9,743,936
10,000,000 U.S. Treasury Bills ....................... 05/15/97 9,745,846
5,000,000 U.S. Treasury Bills ....................... 05/22/97 4,875,153
25,000,000 U.S. Treasury Bills ....................... 06/05/97 24,389,931
5,000,000 U.S. Treasury Bills ....................... 06/05/97 4,873,928
5,000,000 U.S. Treasury Bills ....................... 06/12/97 4,873,358
5,000,000 U.S. Treasury Bills ....................... 07/03/97 4,871,210
10,000,000 U.S. Treasury Bills ....................... 07/10/97 9,743,936
5,000,000 U.S. Treasury Bills ....................... 07/10/97 4,873,917
5,000,000 U.S. Treasury Bills ....................... 07/24/97 4,871,163
5,000,000 U.S. Treasury Bills ....................... 07/31/97 4,872,294
5,000,000 U.S. Treasury Bills ....................... 07/31/97 4,871,336
5,000,000 U.S. Treasury Bills ....................... 08/07/97 4,871,463
15,000,000 U.S. Treasury Bills ....................... 08/21/97 14,619,317
10,000,000 U.S. Treasury Bills ....................... 08/21/97 9,747,857
10,000,000 U.S. Treasury Bills ....................... 08/21/97 9,745,706
15,000,000 U.S. Treasury Bills ....................... 08/21/97 14,618,179
10,000,000 U.S. Treasury Bills ....................... 08/28/97 9,744,694
15,000,000 U.S. Treasury Bills ....................... 09/04/97 14,607,941
10,000,000 U.S. Treasury Bills ....................... 09/18/97 9,731,768
10,000,000 U.S. Treasury Bills ....................... 09/25/97 9,729,528
5,000,000 U.S. Treasury Bills ....................... 09/25/97 4,865,901
5,000,000 U.S. Treasury Bills ....................... 01/08/98 4,742,613
5,000,000 U.S. Treasury Bills ....................... 01/08/98 4,736,224
10,000,000 U.S. Treasury Notes 5.63% ................. 10/31/97 10,012,127
------------
TOTAL U.S. GOVERNMENT AND GOVERNMENT
AGENCY OBLIGATIONS ....................................... 328,723,020
------------
REPURCHASE AGREEMENTS -- (8.4% OF NET ASSETS)
$30,488,400 Repurchase Agreement with Yamaichi Securities dated 3/31/97
due 4/1/97, 6.35%, repurchase proceeds of $30,493,778
(collateralized by $32,065,000 U.S. Treasury Bill,
10/16/97, market value $31,099,844) ....................... $ 30,488,400
------------
TOTAL INVESTMENTS AT AMORTIZED COST*** ...................... 359,211,420
INTEREST RECEIVABLE ...................................................... 3,770,378
DIVIDENDS PAYABLE ........................................................ (1,479,040)
ADVISORY FEES PAYABLE .................................................... (76,796)
ADMINISTRATIVE FEES PAYABLE .............................................. (123,448)
DISTRIBUTION AND SHAREHOLDER SERVICING FEES PAYABLE (CLASS C) ........... (73,991)
OTHER LIABILITIES ........................................................ (60,870)
------------
NET ASSETS ............................................................... $361,167,653
============
Represented by:
Paid-in capital ........................................................ $361,066,654
Undistributed net investment income .................................... 23,770
Accumulated undistributed net realized gains from investment transactions 77,229
------------
NET ASSETS .............................................................. $361,167,653
============
NET ASSETS
Class C Shares -- Applicable to 349,353,578 shares of beneficial
interest outstanding ................................................ $349,429,341
Class Y Shares -- Applicable to 11,736,846 shares of beneficial
interest outstanding ................................................ 11,738,312
------------
$361,167,653
============
Net Asset Value, Offering Price and Redemption Price Per Share (Class C
Shares and Class Y Shares) ............................................ $1.00
=====
* Variable rate notes. Interest rate resets weekly.
** Variable rate notes. Interest rate resets monthly.
*** Represents the aggregate cost of securities for federal income tax purposes.
</TABLE>
See notes to financial statements.
<PAGE>
REPUBLIC U.S. GOVERNMENT MONEY MARKET FUND
STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED MARCH 31, 1997
(UNAUDITED)
INVESTMENT INCOME:
Investment income ......................................... $7,906,146
EXPENSES:
Investment advisory fees ............................ $ 292,898
Administrative services fees (Class C and Class Y) .. 146,449
Distribution and Shareholder Servicing fees (Class C) 366,123
Transfer agent fees.................................. 36,608
Fund accounting fees ................................ 25,213
Legal and audit fees ................................ 27,313
Reports to shareholders ............................. 7,007
Custodian fees and expenses ......................... 32,604
Registration fees ................................... 20,306
Trustees' fees ...................................... 8,723
Insurance expense ................................... 7,436
Other expenses ...................................... 56,835
----------
Total expenses before voluntary fee reductions ........ 1,027,515
Voluntary fee reductions .............................. (146,449)
---------- ----------
Net expenses ............................................ 881,066
----------
Net investment income ....................................... 7,025,080
----------
REALIZED GAINS ON INVESTMENTS:
Net realized gains on investments ......................... 77,229
----------
Net increase in net assets resulting from operations ...... $7,102,309
==========
See notes to financial statements.
<PAGE>
REPUBLIC U.S. GOVERNMENT MONEY MARKET FUND
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS
ENDED
MARCH 31, YEAR ENDED
1997 SEPTEMBER 30,
(UNAUDITED) 1996
---------------- ---------------
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income ................ $ 7,025,080 $ 8,700,988
Net realized gains on investments .... 77,229 27,879
------------ ------------
Net increase in net assets resulting
from operations .................... 7,102,309 8,728,867
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class C Shares ..................... (6,856,577) (8,678,224)
Class Y Shares ..................... (168,503) (28,554)
------------ ------------
Total Dividends to Shareholders .. (7,025,080) (8,706,778)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET REALIZED GAINS:
Class C Shares ..................... -- (22,089)
Class Y Shares ..................... -- --
------------ ------------
Total Distributions to Shareholders -- (22,089)
------------ ------------
Total Dividends and Distributions to
Shareholders ....................... (7,025,080) (8,728,867)
------------ ------------
CAPITAL TRANSACTIONS:
Capital share transactions at net
asset value of $1.00 per share:
Proceeds from sales of shares .... 762,974,330 893,945,410
Net asset value of shares issued in
connection with reinvestment of
distributions .................. 5,495,472 7,578,329
Cost of shares repurchased ....... (655,161,252) (766,959,907)
------------ ------------
Net increase in net assets from
capital share transactions ....... 113,308,550 134,563,832
------------ ------------
Total Increase in Net Assets ....... 113,385,779 134,563,832
NET ASSETS:
Beginning of year .................. 247,781,874 113,218,042
------------ ------------
End of year (including undistributed
net investment income of $23,770 and
$23,770, respectively) ........... $361,167,653 $247,781,874
============ ============
See notes to financial statements.
<PAGE>
REPUBLIC U.S. GOVERNMENT MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS -- MARCH 31, 1997 (UNAUDITED)
1. ORGANIZATION: Republic U.S. Government Money Market Fund (the "Fund") is a
separate series of Republic Funds (the "Trust"), a Massachusetts Business
trust organized on April 22, 1987, which currently consists of seven funds,
each of which has different investment objectives and policies. The
financial statements for six of the funds are presented separately. The
Fund's investment objective is liquidity and high income consistent with
preservation of capital. The Declaration of Trust permits the Trustees to
create additional funds. 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 is authorized to issue two classes of shares, Class C Shares
(Investor Shares), and as of July 1, 1996, Class Y Shares (Advisor Class).
Each class of shares in the Fund has identical rights and privileges except
with respect to fees paid under shareholder servicing or distribution plans,
expenses allocable exclusively to each class of shares, voting rights on
matters affecting a single class of shares, and the exchange privilege of
each class of shares.
The Trust retains Republic National Bank of New York ("Republic") as
Investment Adviser ("Adviser") and BISYS Fund Services ("BISYS") as
Administrator, Distributor and Sponsor ("Sponsor").
2. SIGNIFICANT ACCOUNTING POLICIES: The following is a summary of significant
accounting policies followed by the Fund in the preparation of its financial
statements. The policies are in conformity with generally accepted
accounting principles. The preparation of financial statements requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements
and the reported amounts of income and expenses for the period. Actual
results could differ from those estimates.
SECURITIES VALUATION:
Investments of the Fund are valued at amortized cost, which approximates
market value. Under the amortized cost method, discount or premium is
amortized on a constant basis to the maturity of the security. In addition,
the Fund may not a) purchase any instrument with a remaining maturity
greater than thirteen months unless such investment is subject to a demand
feature, or b) maintain a dollar-weighted average portfolio maturity which
exceeds 90 days.
SECURITY TRANSACTIONS AND RELATED INCOME:
Security transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the accrual
basis and includes, where applicable, the amortization of premium or
discount. Gains or losses realized on sales of securities are determined by
comparing the identified cost of the security lot sold with the net sales
proceeds.
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 seven funds are allocated in proportion to
the net asset levels of each fund, except where allocations of direct
expenses to each fund can otherwise be made fairly.
FEDERAL INCOME TAXES:
The Fund is treated as a separate taxable entity for federal tax purposes.
The Fund has qualified and intends to continue to qualify as a "regulated
investment company" under Subchapter M of the Internal Revenue Code, as
amended, and to distribute substantially all of its taxable income and net
realized gains, if any, to its shareholders. Accordingly, no provision for
federal income or excise tax is required.
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income are declared daily and paid monthly and
distributable net realized capital gains, if any, are declared and
distributed at least annually for the Fund.
Dividends from net investment income and net realized capital gains are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily
due to differing treatments for net operating losses, expiring capital loss
carryforwards, and deferral of certain losses.
REPURCHASE AGREEMENTS:
The Fund may acquire repurchase agreements with an entity which is a member
of the Federal Reserve System or which is a "primary dealer" (as designated
by the Federal Reserve Bank of New York) in U.S. Government obligations. The
repurchase price generally equals the price paid by the Fund plus interest
negotiated on the basis of current short-term rates, which may be more or
less than the rate on the underlying portfolio securities. The seller, under
a repurchase agreement, is required to maintain the value of collateral held
pursuant to the agreement at not less than the repurchase price (including
accrued interest). Securities subject to repurchase agreements are held by
the Fund's custodian, either physically or in book entry form. Repurchase
agreements are considered to be loans by the Fund under the 1940 Act.
3. RELATED PARTY TRANSACTIONS:
ADVISORY FEES:
The Fund retains Republic to act as Investment Adviser. 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 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 from the Fund a fee, payable monthly, at the annual rate of 0.20%
of average daily net assets. For the six months ended March 31, 1997, the
advisory fee was $292,898, of which $146,449 was voluntarily waived.
ADMINISTRATION:
The Fund retains BISYS to serve as Administrator, Distributor and Sponsor.
BISYS provides management and administrative services necessary for the
operation of the Fund, furnishes office space and facilities required for
conducting the business of the Fund and pays the compensation of the Fund's
officers. For these services, BISYS receives from the Fund a fee, payable
monthly, at the annual rate of 0.10% of the first billion of the Fund's
average daily net assets; 0.08% of the next $1 billion of the Fund's average
daily net assets, and 0.07% of such assets in excess of $2 billion.
DISTRIBUTION AND SHAREHOLDER SERVICING PLANS:
The Trust has adopted a Distribution Plan with respect to the Investor
Shares of the Fund for costs and expenses incurred by the Distributor in
connection with the distribution of Investor Shares of the Fund and for the
provision of certain shareholder services with respect to Investor Shares.
The Trust has also entered into a Shareholder Servicing Agreement with its
Shareholder Servicing Agents (which currently consists of Republic and its
affiliates) for providing various shareholder services. The aggregate fees
paid to the Distributor pursuant to the Distribution Plan and to Shareholder
Servicing Agents pursuant to the Shareholder Servicing Agreement will not
exceed 0.25% on an annual basis of the Fund's average daily net assets
represented by Investor Shares outstanding during the period for which
payment is being made.
4. CAPITAL SHARE TRANSACTIONS: Transactions in shares of beneficial interest
for the Fund were as follows:
SIX MONTHS ENDED MARCH 31, 1997
-------------------------------------------
CLASS C SHARES CLASS Y SHARES
(UNAUDITED) (UNAUDITED)
---------- ----------
Shares issued .................. 685,533,310 77,441,020
Shares reinvested .............. 5,429,208 66,264
Redeemed ....................... (587,977,436) (67,183,816)
------------ -----------
Net increase ................... 102,985,082 10,323,468
============ ===========
YEAR ENDED SEPTEMBER 30, 1996
-------------------------------------------
CLASS C SHARES CLASS Y SHARES(a)
-------------- -----------------
Shares issued .................. 880,109,172 13,836,238
Shares reinvested .............. 7,578,279 50
Redeemed ....................... (754,536,997) (12,422,910)
------------ -----------
Net increase ................... 133,150,454 1,413,378
============ ===========
(a) For the period from July 1, 1996 (date of initial offering) to September
30, 1996.
<PAGE>
REPUBLIC U.S. GOVERNMENT MONEY MARKET FUND
FINANCIAL HIGHLIGHTS -- CLASS C SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
MARCH 31, YEARS ENDED SEPTEMBER 30,
1997 ---------------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993
---------------------- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
YEAR .......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------
Income from investment
operations:
Net investment income ......... 0.024 0.049 0.052 0.035 0.027
------- ------- ------- ------- -------
Total from investment
operations ................ 0.024 0.049 0.052 0.035 0.027
------- ------- ------- ------- -------
Less dividends:
Investment income ............. (0.024) (0.049) (0.052) (0.035) (0.027)
------- ------- ------- ------- -------
Total distributions ......... (0.024) (0.049) (0.052) (0.035) (0.027)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF YEAR .... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total return .................... 2.39%(a) 4.98% 5.27% 3.51% 2.70%
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of period
(000) ....................... $349,429 $246,368 $113,218 $100,443 $73,284
Ratio of expenses to average
net assets .................. 0.60%(b) 0.57% 0.58% 0.24% 0.56%
Ratio of net investment income
to average net assets ....... 4.73%(b) 4.80% 5.17% 3.50% 2.66%
Ratio of expenses to
average net assets* ......... 0.70%(b) 0.75% 0.78% 0.67% 0.93%
Ratio of net investment income
to average net assets* ...... 4.63%(b) 4.62% 4.97% 3.08% 2.28%
- ------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Not annualized.
(b) Annualized.
</TABLE>
See notes to financial statements.
<PAGE>
REPUBLIC U.S. GOVERNMENT MONEY MARKET FUND
FINANCIAL HIGHLIGHTS -- CLASS Y SHARES
SIX MONTHS
ENDED
MARCH 31, PERIOD ENDED
1997 SEPTEMBER 30,
(UNAUDITED) 1996(a)
-------------- ---------------
NET ASSET VALUE, BEGINNING OF YEAR ......... $ 1.00 $ 1.00
------- -------
Income from investment operations:
Net investment income .................... 0.025 0.012
------- -------
Total from investment operations ..... 0.025 0.012
------- -------
Less dividends:
Investment income ........................ (0.025) (0.012)
------- -------
Total Distributions .................. (0.025) (0.012)
------- -------
NET ASSET VALUE, END OF YEAR ............... $ 1.00 $ 1.00
======= =======
Total return ............................... 2.50%(c) 5.03%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of period (000) ....... $11,738 $ 1,413
Ratio of expenses to average net assets .. 0.35%(d) 0.43%(d)
Ratio of net investment income to average
net assets ............................. 4.97%(d) 4.90%(d)
Ratio of expenses to average net assets* . 0.45%(d) 0.61%(d)
Ratio of net investment income to average
net assets* ............................ 4.87%(d) 4.72%(d)
- ----------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) For the period from July 1, 1996 (commencement of operations) to September
30, 1996.
(b) Represents total return for Class C Shares for the period from October 1,
1995 to June 30, 1996 plus the total return for the Class Y Shares for the
period from July 1, 1996 to September 30, 1996.
(c) Not annualized.
(d) Annualized.
See notes to financial statements.
<PAGE>
REPUBLIC
U.S. GOVERNMENT
MONEY MARKET
FUND
INVESTMENT ADVISER
Republic National Bank of New York
452 Fifth Avenue
New York, NY 10018
ADMINISTRATOR, DISTRIBUTOR AND SPONSOR
BISYS Fund Services, Inc.
3435 Stelzer Road
Columbus, OH 43219
CUSTODIAN AND TRANSFER AGENT
Investors Bank & Trust Company
200 Clarendon Street, 16th Floor
Boston, MA 02116
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) 522-5214
FOR NON-REPUBLIC CLIENTS:
Investors Bank & Trust Company
200 Clarendon Street, 16th Floor
Boston, MA 02116
(800) 782-8183
5/97
[Graphic Omitted]
REPUBLIC
U.S. GOVERNMENT
MONEY MARKET
FUND
SEMI-ANNUAL REPORT
MARCH 31, 1997
