REPUBLIC FUNDS, N-30D, 1997-01-07

REPUBLIC FUNDS
N-30D, 1997-01-07

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<PAGE>
PRESIDENT'S MESSAGE

December 1996

Dear Shareholder:

We are pleased to present you with the annual report for the Republic
International Equity Fund for the period ending October 31, 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.

Audited financial statements and portfolio holdings for the period ending
October 31, 1996 also follow. We look forward to servicing your financial needs
and appreciate your continued support.

Respectfully submitted,

/s/ George O. Martinez
George O. Martinez
President
<PAGE>
REPUBLIC INTERNATIONAL EQUITY FUND
ANNUAL REPORT -- OCTOBER 31, 1996

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 ..................................... 12

REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments .......................................... 13
Statement of Assets and Liabilities .............................. 22
Statement of Operations .......................................... 23
Statement of Changes in Net Assets ............................... 24
Financial Highlights ............................................. 24
Notes to Financial Statements .................................... 25
Independent Auditors' Report ..................................... 28
<PAGE>
LETTER TO SHAREHOLDERS FROM INVESTMENT ADVISER
December 1996
DEAR SHAREHOLDER:

We are pleased to present you with the annual report for the Republic
International Equity Fund (the "Fund") for the fiscal year ended October 31,
1996.

The Republic International Equity Fund returned 13.22% for the fiscal year
ended October 31, 1996, compared to 10.80% for the MSCI EAFE Index and 12.65%
for the Lipper International Equity Fund Index. For the period since the Fund's
inception (January 9, 1995), the Fund's average annual return was 11.91% versus
9.50% for the MSCI EAFE Index and 11.43% for the Lipper International Equity
Fund Index.

Non-U.S. stock markets rallied sharply during the fiscal year, benefiting
from a favorable environment of generally lower interest rates, positive
economic growth and benign inflation. Canada and several European markets were
among leading markets, contributing returns in excess of 30.0% when measured in
U.S. dollar terms. In the Pacific region, Hong Kong and Malaysia led the way
gaining 28.0% and 26.8%, respecitvely. Japan was the major laggard during the
period losing 0.7%, as the weakened yen translated the 10.5% local market
advance to a fractional loss for U.S. dollar based investors.

Compared to the MSCI EAFE Index benchmark, the Republic International Equity
Portfolio ("the Portfolio") remained most significantly overweighted in Sweden
and Canada, and underweighted in Japan. These favorable country weightings and
continued strong stock selection contributed to the Fund's outperformance. The
outlook for non-U.S. financial markets generally remains favorable, as the
economic conditions that have bolstered the world's financial markets for the
last year largely remain in effect.

As of October 31, 1996, the Portfolio, in which the Fund invests all of
its investable assets, was broadly diversified with 155 equity holdings
representing 28 countries. The Portfolio's weightings by geographical region
were as follows: Europe 47.3%, Japan 21.7%, Pacific Ex-Japan 12.8%, and 18.2%
in other regions. The largest five holdings of the Portfolio represent 8.3% of
the Portfolio: Mannesmann AG (Germany: machinery & engineering), Sankyo
(Japan: medical, drugs), Asea Brown Boveri (Sweden: electronic), Astra
(Sweden: medical, drugs), Telefonica de Expana (Spain: phone utility).

Audited financial statements and portfolio holdings as of October 31, 1996
follow. We appreciate your continued support.

Sincerely,

Republic National Bank of New York

Lipper International Equity Fund Index: an equally weighted average
composed of the 30 largest mutual funds within this investment objective.

MSCI EAFE Index: unmanaged index based on the share prices of
approximately 1,600 companies listed on stock exchanges in the 22
developed countries that make up the MSCI National Indices.

The performance data quoted represents past performance and is not an
indication of future results. The investment return and Net Asset Value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than the original cost.

The total return set forth may reflect the waiver of a portion of the Fund's
advisory or administrative fees for certain periods since the inception
date. In such instances, and without waiver of fees, total return would have
been lower.

International investing is subject to certain factors such as currency
exchange rate volatility, possible political, social or economic
instability, foreign taxation and differences in auditing and other
financial standards.

The composition of the portfolio is subject to change.
<PAGE>
COMPARISON OF $10,000 INVESTMENT IN THE
RAFT INTERNATIONAL EQUITY FUND AND
MORGAN STANLEY CAPITAL INVESTMENT EAFE INDEX
- --------------------------------------------------------------------------------

---------------------------
AVERAGE ANNUAL TOTAL RETURN
---------------------------
Fiscal Year Inception
to Date to 10/31/96
10/31/96 (Annualized)
---------------------------
13.22% 11.91%
---------------------------

RAFT INTERNATIONAL
EQUITY FUND EAFE INDEX
------------------ ----------
1/ 9/95 10.00 10.00
4/30/95 10.21 10.79
10/31/95 10.83 10.80
4/30/96 12.05 12.10
10/31/96 12.26 11.81

Past performance is not predictive of future performance.
- --------------------------------------------------------------------------------

BISYS FUND 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, 1996

ASSETS:
Investment in Republic International Equity
Portfolio ("Portfolio"), at value (Note 1) ....... $97,172,124
Tax reclaim receivable ............................. 100,667
Receivable for fund shares sold .................... 10,000
Unamortized organization expenses (Note 2) ......... 6,401
-----------
Total Assets ................................. 97,289,192
-----------

LIABILITIES:
Payable for fund shares redeemed ................... 257,000
Administration fee payable (Note 3) ................ 4,130
Audit fees payable ................................. 9,000
Transfer agent fees payable ........................ 7,500
Reports to shareholders payable .................... 6,314
Legal fees payable ................................. 5,182
Fund accounting fees payable (Note 3)............... 2,250
Other accrued expenses ............................. 20,647
-----------
Total Liabilities ............................ 312,023
-----------

NET ASSETS:
Applicable to 8,046,448 shares of beneficial interest
outstanding (par value $0.001, unlimited number of
authorized shares) ............................... $96,977,169
===========

REPRESENTED BY:
Paid-in capital .................................... $88,000,402
Undistributed net investment income ................ 544,232
Accumulated net realized gain from Portfolio ....... 1,346,880
Net unrealized appreciation from Portfolio ......... 7,085,655
-----------
Net Assets ................................... $96,977,169
===========

Net Asset Value, Offering and Redemption Price Per
Share ............................................ $12.05
======

See notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY FUND
STATEMENT OF OPERATIONS -- FOR THE YEAR ENDED OCTOBER 31, 1996

NET INVESTMENT INCOME FROM PORTFOLIO (NOTE 2):
Dividend income (net of foreign withholding tax $103,262) $1,211,870
Interest income ......................................... 304,393
Allocated expenses ...................................... (602,504)
----------
Net investment income from Portfolio ................ 913,759

EXPENSES (NOTE 2):
Administration fees (Note 3) .......... $ 36,129
Transfer agent fees ................... 38,351
Registration fees ..................... 36,447
Amortization of organization expenses
(Note 2) ............................ 17,259
Audit fees ............................ 20,148
Reports to shareholders ............... 13,963
Fund accounting fees (Note 3) ......... 12,000
Insurance ............................. 7,660
Trustees' fees (Note 3) ............... 6,401
Legal fees ............................ 3,775
Other expenses ........................ 24,390
---------
Total expenses ...................... 216,523
Voluntary fee reductions (Note 3) ... (20,132)
---------
Net expenses ........................................ 196,391
----------
NET INVESTMENT INCOME ................................... 717,368
----------
NET REALIZED AND UNREALIZED GAIN FROM PORTFOLIO:
Net realized gain on:
Investments ......................................... 1,330,860
Foreign currency transactions ....................... 610,430
Net unrealized appreciation from Portfolio .............. 5,449,722
----------
Net realized and unrealized gain from Portfolio ......... 7,391,012
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .... $8,108,380
==========

See notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS

FOR THE PERIOD
JANUARY 9, 1995
(COMMENCEMENT
FOR THE YEAR OF OPERATIONS)
ENDED THROUGH
OCTOBER 31, 1996 OCTOBER 31, 1995
---------------- ----------------
INCREASE (DECREASE) IN NET ASSETS FROM:

OPERATIONS:
Net investment income ................... $ 717,368 $ 217,620
Net realized gain from Portfolio ........ 1,941,290 (93,408)
Net unrealized appreciation
from Portfolio ........................ 5,449,722 1,635,933
----------- -----------
Net increase in net assets
resulting from operations ....... 8,108,380 1,760,145
----------- -----------

DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ................... (790,956) (69,610)
Net realized gains ...................... (31,193) --
----------- -----------
Total distributions to shareholders (822,149) (69,610)
----------- -----------

CAPITAL TRANSACTIONS:
Proceeds from sales of shares ........... 59,060,764 32,852,624
Net asset value of shares issued in
connection with reinvestment of
distributions ......................... 778,445 69,610
Cost of shares redeemed ................. (4,392,300) (368,840)
----------- -----------
Net increase in net assets from
capital transactions ............ 55,446,909 32,553,394
----------- -----------

TOTAL INCREASE IN NET ASSETS ............ 62,733,140 34,243,929

NET ASSETS:
Beginning of period ................. 34,244,029 100
----------- -----------
End of period (including
undistributed net investment income
of $544,232 and $23,782,
respectively) ..................... $96,977,169 $34,244,029
=========== ===========

ANALYSIS OF FUND SHARE TRANSACTIONS:
Beginning of period ..................... 3,171,731 --
Shares sold ............................. 5,181,883 3,201,989
Shares issued in connection with
reinvestment of distributions ......... 68,777 6,700
Shares redeemed ......................... (375,943) (36,958)
---------- ----------
End of period ....................... 8,046,448 3,171,731
=========== ===========

See notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS

FOR THE PERIOD
JANUARY 9, 1995
(COMMENCEMENT
FOR THE YEAR OF OPERATIONS)
ENDED THROUGH
OCTOBER 31, 1996 OCTOBER 31, 1995
---------------- ----------------
NET ASSET VALUE, BEGINNING OF PERIOD .... $10.80 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ............... 0.11 0.08
Net realized and unrealized gain from
Portfolio ......................... 1.31 0.75
----- -----
Total increase from investment
operations ........................ 1.42 0.83
----- -----
LESS DIVIDENDS:
Net investment income ............... (0.16) (0.03)
Net realized capital gains .......... (0.01) --
----- -----
Total distributions ................. (0.17) (0.03)
----- -----
NET ASSET VALUE, END OF PERIOD .......... $12.05 $10.80
====== ======
TOTAL RETURN ............................ 13.22% 8.31%(b)

RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000) ... $96,977 $34,244
Ratio of expenses to average net
assets ............................ 1.11% 1.14%(c)
Ratio of net investment income to
average net assets ................ 0.99% 1.26%(c)
Ratio of expenses to average net
assets (a)......................... 1.13% 2.12%(c)
Ratio of net investment income to
average net assets (a)............. 0.96% 0.28%(c)
- ------------------------------------------------------------------------------
(a) During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(b) Not annualized.
(c) Annualized.

See notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

REPUBLIC INTERNATIONAL EQUITY FUND
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 1996

1. ORGANIZATION. Republic International Equity Fund (the "Fund") is a
diversified separate series of the Republic Advisor Funds Trust (the
"Trust"), a Massachusetts business trust organized on April 5, 1996, which
currently consists of three funds, each of which has different and distinct
investment objectives and policies. The Fund is the successor to Republic
International Equity Fund (the "Predecessor Fund"), a series of Republic
Funds which commenced operations on January 9, 1995. The Fund assumed all of
the assets and liabilities of the Predecessor Fund in a reorganization
effective July 31, 1996. The financial statements for the other two funds
are presented separately. The Trust is registered under the Investment
Company Act of 1940, as amended (the "Act"), as a no-load open-end
management investment company.

The Fund's investment objective is to seek long-term growth of capital
and future income through investment primarily in securities of non-U.S.
issuers (including American Depository Receipts (ADR's) and U.S. registered
securities) and securities of companies whose principal markets are outside
of the United States. The Fund invests all of its investable assets in the
Republic International Equity Portfolio (the "Portfolio"). The Portfolio is
a diversified open-end management investment company which has the same
investment objective as the Fund. The value of such investment reflects the
Fund's proportionate interest (71.85% at October 31, 1996) in the net assets
of the Portfolio. The performance of the Fund is directly affected by the
performance of the Portfolio. The financial statements of the Portfolio,
including the schedule of investments, are included elsewhere in this report
and should be read in conjunction with the Fund's financial statements.

Republic National Bank of New York ("Republic" or the "Manager") acts
as Investment Manager to the Portfolio. Capital Guardian Trust Company
acts as Sub-Adviser ("Sub Adviser") to the Portfolio. Effective October 1,
1996 BISYS Fund Services, Inc. ("BISYS"), replaced Signature Broker-Dealer
Services, Inc. ("Signature") as Administrator of the Trust and the
Portfolio and as Distributor and Sponsor ("Sponsor") of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the
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.

INVESTMENT VALUATION:
Valuation of securities by the portfolio is discussed in Note 2 of the
Portfolio's Notes to Financial Statements which are included elsewhere in
this report.

INVESTMENT TRANSACTIONS AND RELATED 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.

EXPENSE ALLOCATION:
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.

DIVIDENDS TO SHAREHOLDERS:
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. In computing interest income,
premiums are not amortized nor are discounts accrued on long-term debt
securities in the Portfolio, except as required for federal income tax
purposes.

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 gains on foreign
currency transactions. For the year ended October 31, 1996, the Fund
reclassified the effects of certain differences between the financial
statement amounts and distributions determined in accordance with income tax
regulations. These differences increased undistributed net investment income
and decreased accumulated net realized gain/loss by $594,038 and $594,037,
respectively.

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.

UNAMORTIZED ORGANIZATION EXPENSES:
The Fund incurred organization expenses in the amount of $33,080. 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.

3. RELATED PARTY TRANSACTIONS.

ADMINISTRATION:
Pursuant to an Administrative Services Agreement, Signature Broker-Dealer
Services, Inc. ("Signature") provided the Fund with general office
facilities, and supervised 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
arranged for the maintenance of books and records of the Fund for the period
November 1, 1995 through September 30, 1996. For its services to the Fund,
Signature received from the Fund fees payable monthly equal on an annual
basis to 0.05% of the Fund's average daily net assets; for this period
Signature received $31,999 for its services of which $16,007 was voluntarily
reduced.

Effective October 1, 1996, BISYS Fund Services, Inc. ("BISYS") was
appointed as administrator to the Fund, pursuant to an Administrative
Services Agreement. BISYS serves as administrator with substantially
identical terms as described above. In this capacity, BISYS earned $4,130
for the period October 1, 1996 through October 31, 1996.

FUND ACCOUNTING:
Pursuant to a Fund Accounting Agreement, Signature Financial Services, Inc.,
("SFSI") served as fund accounting agent to the Fund for the period November
1, 1995 through September 30, 1996. For its services to the Fund, SFSI
received fees payable monthly equal on an annual basis to $12,000. For this
period, fees for these services aggregated $11,000 of which $4,125 was
voluntarily reduced.

Effective October 1, 1996, Investors Bank and Trust Co. ("IBT"),
provides fund accounting services to the Fund. For the period October 1,
1996 through October 31, 1996, the IBT fee for these services aggregated
$1,000.

TRUSTEES' FEES:
The fees paid and the amount of out-of-pocket expenses reimbursed to the
Trustees amounted to $6,401 for the year ended October 31, 1996.

WAIVER OF EXPENSES:
Signature and SFSI voluntarily agreed to waive a portion of their fees, and
to the extent necessary, reimburse the Fund for additional expenses during
the period November 1, 1995 through October 31, 1996. Expenses of the Fund
were voluntarily limited to no more than 1.11% of the average daily net
assets on an annualized basis. For the year ended October 31, 1996 Signature
and SFSI voluntarily reduced fees aggregating $20,132.

4. INVESTMENT TRANSACTIONS. Additions and reductions in the Fund's
investment in the Portfolio amount to $59,093,038 and $4,355,171,
respectively.
<PAGE>
INDEPENDENT AUDITOR'S REPORT

The Board of Trustees
Republic Advisor Funds Trust:

We have audited the accompanying statement of net assets of Republic
International Equity Fund (the "Fund"), a portfolio of Republic Advisor Funds
Trust, as of October 31, 1996 and the related statements of operations and
changes in net assets and the financial highlights for the year then ended.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsbility is to express an opinion on these
financial statements and financial highlights based on our audit. The statement
of changes in net assets and financial highlights for the period from January 9.
1995, (commencement of operations) to October 31, 1995 were audited by other
auditors whose report thereon, dated December 8, 1995, expressed an unqualified
opinion on that statement and those financial highlights.

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 1996 financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Republic International Equity Fund at October 31, 1996, the results
of its operations, the changes in its net assets and the financial highlights
for the year then ended in conformity with generally accepted accounting
principles.

KPMG Peat Marwick LLP

Boston, Massachusetts
December 20, 1996
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS -- OCTOBER 31, 1996

VALUE
SECURITY DESCRIPTION SHARES (NOTE 2)
- -------------------- ------ --------

COMMON STOCKS -- 91.4%
ARGENTINA -- 0.2%
Perez Compac ADR ................................. 59,000 $ 736,578
Telecom Argentina Stet Orb B ADR ................. 6,000 226,500
YPF Sociedad Anonima ADR ......................... 6,000 136,500
------------
1,099,578
------------
AUSTRALIA -- 4.5%
Amatil Ltd., Coca Cola .......................... 117,625 1,615,390
Bramble Industries Ltd. ......................... 59,000 976,060
Lend Lease Corp. ................................ 35,861 607,172
The News Corp. Ltd., ADS ....................... 43,000 972,875
Western MNG Corp. Holding Ltd. .................. 217,400 1,364,618
Westpac Banking Corp. ........................... 210,000 1,196,824
------------
6,732,939
------------
BRAZIL -- 1.0%
Telecomunicacoes Brasileiras ADR ................ 13,500 1,005,750
Elecrobras PN ................................... 21,000 345,188
------------
1,350,938
------------
CANADA -- 7.2%
Alcan Aluminium Ltd. ............................ 27,800 913,925
Bombardier, Inc. Class B ........................ 15,100 243,448
Cominco Ltd. .................................... 6,000 139,500
Cae Industries .................................. 92,000 769,099
IMASCO Ltd. ..................................... 52,000 1,209,032
Inco Ltd. ....................................... 35,430 1,124,903
Inco Ltd., Class VBN ............................ 7,250 183,990
Northern Telecom Ltd. ........................... 14,000 911,750
Rogers Communications ........................... 53,000 427,244
Royal Bank Of Canada ............................ 48,500 1,603,695
Seagrams Co., Ltd. .............................. 25,300 958,238
Shell Canada Ltd., .............................. 2,800 102,512
Suncor Ltd. ..................................... 30,000 1,170,000
------------
9,757,336
------------
DENMARK -- 0.4%
Tele Danmark A/S ADR ............................ 21,300 532,500
------------
FINLAND -- 1.0%
Nokia AB-K Shares ............................... 3,000 138,653
Nokia AB-A ...................................... 27,000 1,244,911
------------
1,383,564
------------
FRANCE -- 4.8%
Bougues ......................................... 9,000 879,882
Euro Disneyland Sca ............................. 105,000 205,921
Pechiney SA-A SHS ............................... 21,385 915,984
Renault SA ...................................... 29,300 630,649
Synthelabo ...................................... 6,600 628,504
Societe National Elf-Aquitaine .................. 16,500 1,316,252
TV Francaise .................................... 8,800 934,170
Valeo ........................................... 16,318 976,937
------------
6,488,299
------------
GERMANY -- 4.8%
Commerzbank AG .................................. 40,000 893,281
Mannesmann AG ................................... 7,850 3,040,711
Muencher Ruck INH ............................... 190 453,096
Muencher Ruck Nam 50% paid ...................... 125 242,918
Siemans AG ...................................... 10,000 515,481
Volkswagen N/V VZG .............................. 3,000 1,178,360
------------
6,323,847
------------
HONG KONG -- 3.8%
Citic Pacific Ltd. .............................. 90,000 437,645
Consolidated Electric PWR Asia .................. 260,000 605,253
Hong Kong Electric .............................. 304,000 973,061
Hong Kong Telecom ............................... 592,000 1,045,071
Hutchison Whampoa ............................... 152,000 1,061,521
Swire Pacific ................................... 113,000 997,407
------------
5,119,958
------------
INDONESIA -- 0.3%
Pt Indonesia Satellite ADR ...................... 12,000 361,500
------------
IRELAND -- 0.8%
Allied Irish Banks Plc .......................... 162,900 1,032,007
------------
ITALY -- 2.3%
Alleanza Assicurraziona Spa Azione Nom .......... 47,300 333,382
Alleanza Assicuraz Di Risp It 2000 .............. 79,530 411,351
Stet Risp Non CVT ITL 1000 ...................... 250,000 666,370
Talcenenti Fabriche Riunit ITL 2000 ............. 6,300 33,415
Telecom Italia Mobile-DrNc ITL100 ............... 788,000 902,321
Telecom Italia Mobile ........................... 125,000 257,461
Telicom Italia Spa ITL 1000 ..................... 220,500 492,492
------------
3,096,792
------------
JAPAN -- 21.1%
Acom Co. Ltd. ................................... 23,000 881,666
Adventest Corp. ................................. 27,000 1,018,421
Bank Of Tokyo Mitsubishi ........................ 32,000 651,228
Banyu Pharmaceutical Co. ........................ 47,000 597,807
Bridgestone Corp. ............................... 72,000 1,212,632
Chudenko Corp. .................................. 7,150 218,890
DDI Corp. ....................................... 108 810,000
East Japan Rail ................................. 109 500,061
Fuji Photo Film ................................. 36,000 1,032,632
Higashi Nihon House ............................. 33,000 474,737
Hitachi Ltd. .................................... 63,000 558,158
Japan Airlines .................................. 90,000 513,158
Jusco Co. ....................................... 34,000 1,008,070
Kawasaki Heavy Industries ....................... 78,000 356,474
Kawasaki Kisen .................................. 122,000 323,193
Kurita Water Industries ......................... 30,800 618,702
Kyocera Corp. ADR ............................... 3,000 394,125
Kyocera Corp. ................................... 7,000 461,140
Mitsubishi Heavy ................................ 138,000 1,059,211
Mitsui Fudosan .................................. 67,000 828,684
Murata MFG Co., Ltd. ............................ 21,000 681,579
Nichei Co., Ltd. ................................ 6,200 412,246
Nintendo Corp. .................................. 19,300 1,218,947
NKK Corp. ....................................... 145,000 363,772
Nippon Telegraph And Tel Corp. .................. 124 864,737
Nikon Corp. .................................... 110,000 1,215,789
Nomura Securities Co., Ltd. ..................... 25,000 412,281
Orix Corp. ..................................... 1,200 44,632
Rohm Company .................................... 15,000 888,158
Sankyo Co., Ltd. ................................ 91,500 2,263,421
Seiksui House Ltd. .............................. 72,000 757,895
Soft Bank Corp. ................................. 10,220 968,211
Sony Corp. ..................................... 20,200 1,210,228
Sumitomo Reality & Development .................. 90,000 653,684
Suzuki Motor Corp. .............................. 101,000 1,027,719
Tokyo Broadcasting .............................. 17,000 259,474
Toyota Motor Co. ................................ 41,000 967,456
Yasuda Fire & Marine Insurance .................. 129,000 818,132
------------
28,547,350
------------
KOREA -- 0.3%
Samsung Electronics ............................. 19,000 874,000
------------
MALAYSIA -- 1.7%
Genting Berhad .................................. 14,200 106,226
New Straits Times Press Berhard ................. 127,000 668,553
Renong Berhard .................................. 256,000 403,277
Sime Darby Berhard .............................. 311,000 1,101,702
------------
2,279,758
------------
MEXICO -- 2.0%
Cemex Sa Cl B ADR ............................... 15,800 112,575
Grupo Financiero Banamex Series "L" Shares ...... 55,337 113,583
Grupo Financieri Banamex Accivl series "B" NPV .. 261,800 553,745
Panamerican Beverages Inc., Class A ............. 20,000 872,500
Telefonos De Mexico ADR ......................... 32,900 1,003,450
------------
2,655,853
------------
NETHERLANDS -- 3.3%
Aegon NV ........................................ 16,500 837,150
Asm Lithography Holding NV ...................... 17,000 609,659
Philips Electronics NV .......................... 35,100 1,234,005
Philips Electronics N.V ADR ..................... 18,000 634,500
Wolters Kluwer N.V .............................. 8,800 1,128,358
------------
4,443,672
------------
NEW ZEALAND -- 0.6%
Telecome New Zealand ............................ 156,100 811,108
------------
NORWAY -- 0.8%
Orkla As A-AKS JER .............................. 17,000 1,084,767
------------
PERU -- 0.7%
Telefonica Del Peru ADR ......................... 45,000 928,125
------------
PHILIPPINES -- 0.2%
Philippine Long Distance Tel .................... 4,000 239,500
------------
PORTUGAL -- 0.8%
Portugal Telecom S.A. ADR ....................... 43,800 1,133,325
------------
SINGAPORE -- 0.8%
City Developments ............................... 35,000 275,825
Singapore Press Holdings Ltd. ................... 47,400 787,476
------------
1,063,301
------------
SPAIN -- 2.4%
Banco de Santander .............................. 20,400 1,044,804
Corporacion Mapfre ESB 500 ...................... 9,338 457,399
Telefonica De Espana ............................ 85,900 1,719,478
------------
3,221,681
------------
SWEDEN -- 7.7%
Asea Brown Boveri ............................... 16,700 1,889,872
Aga AB B Free ................................... 46,000 737,174
Astra AB A-F .................................... 47,900 2,197,364
Atlas Copco AB-Ser "B" Free ..................... 40,000 823,301
Autoliv AB ...................................... 18,000 762,845
Ericsson AB B Free .............................. 53,660 1,450,876
Ericsson Lm Telephone ADR ....................... 7,000 193,375
Hennes & Mauritz AB A-F ......................... 8,500 1,124,597
Incentive Ab-B .................................. 12,000 714,541
Volvo Aktiebolag B Free ......................... 26,500 549,463
------------
10,443,408
------------
SWITZERLAND -- 5.2%
D Asea Brown Boveri ............................. 125 153,922
Baloise Holdings ................................ 343 713,851
CS Holdings Registered SHS ...................... 12,005 1,194,822
Ciba-Geigy AG-R52F 100 .......................... 933 1,145,196
Holderbank Finan Glaris-B ....................... 1,630 1,124,359
Nestle .......................................... 1,489 1,611,665
Sandoz AG-Regd .................................. 286 329,401
Swissair-Regd ................................... 900 698,857
------------
6,972,073
------------
TAIWAN -- 1.1%
Acer Inc. ....................................... 109,380 779,332
China Steel Corp. ............................... 35,000 678,563
------------
1,457,895
------------
THAILAND -- 0.4%
Bangkok Bank Co., Ltd. .......................... 45,000 479,755
------------
UNITED KINGDOM -- 10.0%
Bank Of Scotland ................................ 206,800 951,899
BAT Industries .................................. 15,200 105,814
Bicc Plc 50p .................................... 46,090 219,274
British Petroleum Plc ........................... 4,700 604,538
British Petroleum Plc ADR ....................... 46,000 494,554
British Sky Broadcasting Plc .................... 112,800 1,061,369
Electrocomponents Plc ........................... 95,000 638,930
English China Clays Plc ......................... 119,000 367,752
Guinness Plc .................................... 94,000 672,720
HSBC Holdings Plc ............................... 59,300 1,244,222
Lloyds TSB Group Plc ............................ 190,000 1,205,235
Morgan Crucible Company Plc ..................... 51,800 400,200
Reckitt and Collman Plc ......................... 78,200 920,872
Reuters Holdings Plc ............................ 110,000 1,367,805
Shell Trans and Trading Plc (New) ............... 6,400 627,200
Shell Trans and Trading Plc ...................... 13,000 213,031
Storehouse Plc .................................. 50,000 226,490
Thorn Plc ....................................... 84 471
Vodafone Group Plc .............................. 170,434 658,376
Zeneca Group Plc ................................ 56,000 1,524,745
Zeneca Group Plc ADR ............................ 300 24,450
------------
13,529,947
------------
TOTAL COMMON STOCK (Cost $114,412,023) ........... 123,444,776
------------

RIGHTS -- 0.0%
MALAYSIA
Renong Berhad Warrants Issue 5/22/95 Exp 11/21/00 32,000 13,046
Ronong Berhard 4% ICULS 2001 Stock ............... 51,200 18,745
------------
31,791
------------

WARRANTS -- 0.2
ITALY
Softe-Sip Risp WTS Bonus Warrants ................ 110,000 222,075
------------

PREFERRED STOCK -- 0.2%
CANADA -- 0.1%
NCO Ltd., Series E 5.5% Convertible Preferred .... 2,639 136,898
------------

GERMANY -- 0.1%
Volkswagen AG .................................... 600 181,621
------------
TOTAL PREFERRED STOCK (Cost $265,691) ............ 318,519
------------
PRINCIPAL
AMOUNT
-----------
LONG TERM CORPORATE DEBT -- 1.7%
JAPAN -- 0.6%
Sankyo Co., Ltd., 0.70% DTD 3/31/94 Due 3/30/01 JPY 14,000,000 161,491
Fujitsu Ltd., Convertible Ser 81.9% DTD 12/22/94
Due 3/29/03 ................................... 15,000,000 146,316
Fujitsu Ltd., Convertible Ser 102% DTD 12/22/94
Due 3/31/04 ................................... 19,000,000 184,333
Fujitsu Ltd., Convertible Ser 91.95% DTD 12/22/94
Due 3/31/03 ................................... 31,000,000 302,115
------------
794,255
------------
SWITZERLAND -- 0.5%
BBC Brown Boveri 4% DTD 7/10/90 Due 7/10/98 .... CHF 637,500 632,223
------------
UNITED KINGDOM -- 0.6%
British Air Capital 9.55% DTD 10/20/89 Due 6/15/05 GBP 197,000 775,418
------------
TOTAL LONG TERM CORPORATE DEBT (Cost $1,990,112) . 2,201,895
------------
SHARES
SHORT TERM INVESTMENTS -- 6.9% ------
Investors Cash Reserve Fund ...................... 8,234,607 8,234,607
------------
TOTAL INVESTMENTS -- 99.4%
Identified Cost ($125,409,391)* ................ 134,453,664
------------
OTHER ASSETS LESS LIABILITIES -- 0.6%............. 784,860
------------
TOTAL NET ASSETS 100.0% .......................... $135,238,524
============
- ------------------------------------------------------------------------------
ADR = American depository receipt CHF = Swiss Francs
ADS = American depository share GBP = Pound Sterling
JPY = Japanese Yen

* The aggregate cost of investments at October 31, 1996 for federal income tax
purposes is $125,515,477. Gross unrealized appreciation and depreciation of
securities was $13,842,794 and $4,904,607, respectively, resulting in net
unrealized appreciation of $8,938,187.
<PAGE>
<TABLE>
SCHEDULE OF OPEN FORWARD FOREIGN CURRENCY CONTRACTS
<CAPTION>
NET
UNREALIZED
EXPIRATION PRINCIPAL VALUE VALUE APPRECIATION/
DATE CONTRACT TO DELIVER LOCAL CURRENCY COST US$ (NOTE 2) (DEPRECIATION)
---------- ------------------- -------------- -------- -------- --------------
<C> <C> <C> <C> <C> <C>
CONTRACTS TO BUY:
01/29/97 Canadian Dollar 417,487 307,881 $ 313,382 $ 5,501
11/01/97 British Pound 33,004 53,202 53,681 479
11/04/96 British Pound 44,163 71,055 71,825 770
11/05/96 British Pound 18,937 30,940 30,798 (142)
11/01/96 Japanese Yen 2,650,565 23,181 23,253 72
11/05/96 Japanese Yen 5,251,909 45,952 46,100 148
03/10/97 Japanese Yen 116,897,000 1,100,000 1,044,285 (55,715)
05/19/97 Japanese Yen 9,900,000 96,126 89,297 (6,829)
05/30/97 Japanese Yen 21,500,000 206,890 194,232 (12,658)
12/13/96 Swedish Krona 472,000 72,178 71,756 (422)
11/04/96 Swiss Franc 1,263,823 1,000,652 996,313 (4,339)
---------- --------
2,934,922 (73,135)
---------- --------
CONTRACTS TO SELL:
11/04/96 Australian Dollar 11,174 8,836 8,844 (8)
01/29/97 Canadian Dollar 417,487 301,000 313,382 (12,382)
11/04/96 Swiss Franc 1,263,823 1,009,000 996,687 12,313
11/25/96 Swiss Franc 391,980 311,540 309,737 1,803
01/17/97 Swiss Franc 251,130 200,000 199,488 512
03/27/97 Swiss Franc 928,023 754,000 742,207 11,793
04/09/97 Swiss Franc 379,379 308,000 303,810 4,190
11/05/96 German Deutsche Mark 1,097 726 723 3
11/05/96 German Deutsche Mark 1,193 789 786 3
11/15/96 German Deutsche Mark 569,318 372,493 375,394 (2,901)
11/25/96 German Deutsche Mark 349,572 228,482 230,642 (2,160)
12/13/96 German Deutsche Mark 407,850 272,000 269,424 2,576
11/04/96 Spanish Peseta 1,659,990 13,025 12,977 48
11/25/96 French Franc 1,626,600 314,331 317,846 (3,515)
12/18/96 French Franc 874,785 171,000 171,176 (176)
11/14/97 Hong Kong Dollar 2,837,328 365,000 366,353 (1,353)
11/01/96 Japanese Yen 16,510,106 144,395 144,845 (450)
11/01/96 Japanese Yen 1,575,125 13,789 13,819 (30)
11/05/96 Japanese Yen 5,309,735 46,458 46,608 (150)
11/12/96 Japanese Yen 21,495,830 202,000 188,866 13,134
01/16/97 Japanese Yen 101,682,500 923,757 901,753 22,004
03/10/97 Japanese Yen 60,257,010 561,000 538,299 22,701
05/19/97 Japanese Yen 19,843,200 195,000 178,984 16,016
05/30/97 Japanese Yen 64,953,750 625,000 583,542 41,458
10/31/97 Japanese Yen 112,906,374 1,038,000 1,041,908 (3,908)
11/01/96 Malaysian Ringgit 4,445 1,758 1,759 (1)
11/01/96 New Zealand Dollar 30,902 21,604 21,844 (240)
11/04/96 New Zealand Dollar 25,367 17,815 17,923 (108)
11/05/96 New Zealand Dollar 25,654 18,077 18,126 (49)
11/06/96 New Zealand Dollar 28,753 20,262 20,313 (51)
11/01/96 Swedish Krona 18,630 2,840 2,830 10
12/13/96 Swedish Krona 943,713 141,000 143,468 (2,468)
02/04/97 Swiss Franc 1,263,823 1,009,685 1,005,068 4,617
---------- --------
9,489,431 123,231
---------- --------
UNREALIZED APPRECIATION/(DEPRECIATION) ON OPEN FORWARD FOREIGN CURRENCY CONTRACTS ................... $ 50,096
========
</TABLE>
<PAGE>
<TABLE>
INDUSTRY DIVERSIFICATION (UNAUDITED)
<CAPTION>
PERCENT OF PERCENT OF
PORTFOLIO PORTFOLIO
--------- ---------
<S> <C> <C> <C>
Energy ..................................... 4.0% Beverages & Tobacco .................... 3.0%
Electric & Gas ............................. 1.4% Food & Household Products .............. 1.8%
Building Materials & Components ............ 0.9% Health & Personal Care ................. 6.5%
Chemicals .................................. 0.4% Recreation, Other Consumer Products .... 1.6%
Metals: Nonferous .......................... 3.5% Broadcasting & Publishing .............. 5.3%
Metals: Steel .............................. 0.8% Business & Public Services ............. 1.7%
Miscellaneous Materials & Commodities ...... 0.3% Leisure & Tourism ...................... 0.2%
Aerospace & Military Technology ............ 0.7% Merchandising .......................... 1.7%
Construction & Housing. .................... 1.6% Telecommunications ..................... 10.2%
Data Processing & Reproduction ............. 1.0% Transportation: Airlines ............... 1.5%
Electrical & Electronics ................... 5.7% Transportation: Rail & Road ............ 0.4%
Electronic Components ...................... 2.6% Transportation: Shipping ............... 0.2%
Electronic Instruments ..................... 0.8% Banking ................................ 9.0%
Industrial Components ...................... 3.5% Financial Services ..................... 1.3%
Machinery & Engineering .................... 4.4% Insurance .............................. 3.2%
Appliances & Household Durables ............ 2.9% Real Estate ............................ 1.3%
Automobiles ................................ 3.4% Multi - Industry ....................... 5.7%
-----
92.5
Cash & Equivalent Investments .......... 7.5%
-----
100.0%
=====
</TABLE>
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES -- OCTOBER 31, 1996

ASSETS:
Investment at value (cost $125,409,391) ........................ $134,453,664
Receivable for investments sold ................................ 1,114,874
Cash (cost $643,127) ........................................... 646,921
Dividends receivable ........................................... 229,015
Unrealized appreciation on open forward foreign currency
contracts (Note 2) ............................................. 160,151
Unamortized organization expenses .............................. 43,429
Interest receivable ............................................ 25,880
Tax reclaim receivable ......................................... 398
------------
Total Assets ........................................... 136,674,332
------------

LIABILITIES:
Payable for investments purchased .............................. 1,123,970
Unrealized depreciation on open forward foreign currency
contracts (Note 2) ............................................. 110,055
Sub-advisory fee payable (Note 3) .............................. 113,791
Administration fee payable (Note 3) ............................ 5,729
Legal fees payable ............................................. 24,387
Custodian fee payable .......................................... 24,348
Audit fees payable ............................................. 19,000
Other accrued expenses ......................................... 14,528
------------
Total Liabilities ...................................... 1,435,808
------------

NET ASSETS:
Applicable to investors' beneficial interest ................... $135,238,524
============

See notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF OPERATIONS -- FOR THE YEAR ENDED OCTOBER 31, 1996

INVESTMENT INCOME (NOTE 2):
Dividend income (net of withholding tax of
$263,811) ......................................... $1,511,515
Interest income ................................... 409,813
----------
$ 1,921,328

EXPENSES:
Manager and sub-advisory fees (Note 3) .......... $ 758,625
Administration fees (Note 3) .................... 48,750
Fund accounting fees (Note 3) ................... 43,750
Custodian fees and expenses ..................... 148,389
Audit fees ...................................... 21,984
Legal fees ...................................... 22,746
Amortization of organization expenses ........... 13,655
Insurance expense ............................... 9,300
Trustees' fees (Note 3) ......................... 7,963
Other expenses .................................. 1,427
----------
Total expenses ................................ 1,076,589
Voluntary fee reductions (Note 3).............. (243,868)
Reimbursements (Note 3)........................ (18,844)
----------
Net expenses ............................................... 813,877
-----------
NET INVESTMENT INCOME .......................................... 1,107,451
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on:
Investments ................................................ 1,681,532
Foreign currency transactions .............................. 736,466
Net unrealized appreciation of investments ..................... 7,862,402
Net unrealized depreciation of foreign currency contracts and (471,202)
translations ................................................. -----------
Net realized and unrealized gain on investments and foreign 9,809,198
currency transactions ........................................
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ........... $10,916,649
===========

See notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD
JANUARY 9, 1995
FOR THE YEAR (COMMENCEMENT
ENDED OF OPERATIONS) TO
OCTOBER 31, 1996 OCTOBER 31, 1995
---------------- ----------------
INCREASE IN NET ASSETS FROM:

OPERATIONS:
Net investment income ................. $ 1,107,451 $ 293,335
Net realized gain (loss) from
investment and foreign currency
transactions ........................ 2,417,998 (98,258)
Net unrealized appreciation of
investments and foreign currency
translations ........................ 7,391,200 1,700,597
------------ -----------
Net increase in net assets
resulting from operations ....... 10,916,649 1,895,674
------------ -----------

CAPITAL TRANSACTIONS:
Contributions ......................... 90,808,909 38,444,279
Withdrawals ........................... (6,415,942) (461,145)
------------ -----------
Net increase in net assets from
capital transactions ............ 84,392,967 37,983,134
------------ -----------

TOTAL INCREASE IN NET ASSETS .......... 95,309,616 39,878,808

NET ASSETS:
Beginning of period ............... 39,928,908 50,100
------------ -----------
End of period ..................... $135,238,524 $39,928,908
============ ===========

- ------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR THE PERIOD
JANUARY 9, 1995
FOR THE YEAR (COMMENCEMENT
ENDED OF OPERATIONS) TO
OCTOBER 31, 1996 OCTOBER 31, 1995
---------------- ----------------
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000) ......... $135,239 $39,929
Ratio of expenses to average net assets ... 0.83% 0.64%(b)
Ratio of net investment income to
average net assets ...................... 1.14% 1.55%(b)
Ratio of expenses to average net assets (a) 1.10% 1.39%(b)
Ratio of net investment income to
average net assets (a) .................. 0.87% 0.80%(b)
Portfolio Turnover ........................ 23.3% 3.07%
Average Commission Rate ................... 0.30%
- ------------------------------------------------------------------------------
(a) During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(b) Annualized.

See notes to financial statements
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS -- OCTOBER 31, 1996

1. ORGANIZATION. The Republic International Equity Portfolio (the "Portfolio")
is a diversified separate series of Republic Portfolios (the "Portfolio
Trust"), 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 Trust was organized as a master trust fund under the laws of
the State of New York on November 21, 1994. The Portfolio commenced
operations on January 9, 1995. The Declaration of Trust permits the Trustees
to issue an unlimited number of beneficial interests in the Portfolio.

2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the
significant accounting policies followed by the Portfolio in the preparation
of its financial statements. The policies are in conformity with U.S.
generally accepted accounting principles. The preparation of financial
statements requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses for the year.
Actual results could differ from those estimates.

INVESTMENT VALUATION:
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-adviser
typically completes its trading on behalf of the Portfolio in various
markets before 4:00 p.m., and the value of the portfolio securities is
determined when the primary market for those securities closes for the day.
Foreign currency exchange rates are also determined prior to 4:00 p.m.,
however, if extraordinary events occur that are expected to affect the value
of a portfolio security after the close of the primary exchange on which it
is traded, the security will be valued at fair value as determined in good
faith under the direction of the Board of Trustees of the Portfolio Trust.

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 fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS:
The Portfolio may enter into forward foreign currency exchange contracts in
connection with planned purchases or sales of securities or to hedge the
U.S. dollar value of portfolio securities denominated in a particular
currency. The 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.

ACCOUNTING FOR INVESTMENTS:
Securities transactions are recorded on a trade date basis. 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.

EXPENSE ALLOCATION:
Expenses incurred by the Portfolio Trust with respect to any two or more
portfolios in the Trust are allocated in proportion to the net assets of
each portfolio, except when allocations of direct expenses to each portfolio
can otherwise be made fairly. Expenses directly attributable to a portfolio
are charged to that portfolio.

TAXES:
Income received by the Portfolio from sources within foreign countries may
be subject to withholding and other income or similar taxes imposed by such
countries.

The Portfolio intends to comply with the requirements of the U.S.
Internal Revenue Code (the "Code"). The Portfolio tends to conduct its
operations so that the Funds investing in the Portfolio can qualify as
registered investment companies under Sub-chapter M of the Code. The
Portfolio will be treated as a partnership for U.S. Federal income tax
purposes and is therefore not subject to U.S. Federal income tax.

3. RELATED PARTY TRANSACTIONS.
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
is entitled to receive from the Portfolio, a fee, payable monthly at an
annual rate of 0.25% of the Portfolio's average daily net assets. For the
year ended October 31, 1996 the Manager waived its entire fee of $243,751.

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 the net assets up to $25 million, 0.55% of the net
assets over $25 million and up to $50 million, 0.425% of net assets over $50
million and 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 year ended October 31,
1996 the sub-advisory fee was $514,874.

ADMINISTRATION:
Pursuant to an Administrative Services Agreement, Signature Broker-Dealer
Services, Inc., ("Signature") and Signature Financial Group (Cayman) Ltd.
("Signature (Cayman)") provided the Portfolio with general office
facilities, and supervised 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 arranged for the maintenance of books and records of the
Portfolio for the period November 1, 1995 through September 30, 1996. For
its services to the Portfolio, Signature and Signature (Cayman) received
from the Portfolio fees payable monthly equal on an annual basis to 0.05% of
the Portfolio's average daily net assets. For this period Signature and
Signature (Cayman) received $43,021 for its services, of which $117 was
voluntarily reduced.

Effective October 1, 1996, BISYS Fund Services Ireland Ltd. ("BISYS")
was appointed as administrator to the Portfolio, pursuant to an
Administrative Services Agreement. BISYS serves as administrator in
substantially identical terms as described above. In this capacity, BISYS
earned $5,729 for the period October 1, 1996 through October 31, 1996.

FUND ACCOUNTING:
Pursuant to a Fund Accounting Agreement, Signature Financial Services, Inc.,
("SFSI") served as fund accounting agent to the Portfolio for the period
November 1, 1995 through September 30, 1996. For its services to the
Portfolio, SFSI received fees payable monthly equal on an annual basis to
$50,000. For this period, fees for these services aggregated $40,104.

Effective October 1, 1996, Investors Bank and Trust Co. ("IBT"),
provides fund accounting services to the Portfolio. For the period October
1, 1996 through October 31, 1996 the IBT fee for these services aggregated
$3,646.

TRUSTEES' FEES:
The fees paid and out-of-pocket expenses reimbursed to the Trustees amounted
to $7,963 for the year ended October 31, 1996.

REIMBURSEMENT AND WAIVER OF EXPENSES: The Manager and Signature have
voluntarily agreed to waive a portion of their fees, and to the extent
necessary, reimburse the Portfolio for additional expenses. For the year
ended October 31, 1996 expenses of the Portfolio were voluntarily limited to
no more than 0.83% of the average daily net assets on an annualized basis.
For the year ended October 31, 1996 the Manager and Signature waived fees
and reimbursed expense aggregating $262,712.

4. INVESTMENT TRANSACTIONS. Purchases and sales of investments, other than
US Government securities and short-term obligations, aggregated
$98,969,740, and $18,222,422, respectively for the year.
<PAGE>
INDEPENDENT AUDITORS' REPORT

The Board of Trustees
Republic Portfolios:

We have audited the accompanying statement of net assets of Republic
International Equity Portfolio (the "Fund"), a portfolio of Republic Portfolios,
as of October 31, 1996 and the related statements of operations and changes in
net assets and the financial highlights for the year then ended. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audit. The statement of changes
in net assets and financial highlights for the period from January 9, 1995
(commencement of operations) to October 31, 1995 were audited by other auditors
whose report thereon, dated December 8, 1995, expressed an unqualified opinion
on that statement and those financial highlights.

We conducted our audit in accordance with United States 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. Our procedures included confirmation of securities
owned as of October 31, 1996 by correspondence with the custodian or brokers. 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 1996 financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Republic International Equity Portfolio at October 31, 1996, the
results of its operations, the changes in its net assets and the financial
highlights for the year then ended in conformity with United States generally
accepted accounting principles.

KPMG

Toronto, Ontario
December 20, 1996
<PAGE>
FEDERAL INCOME TAX STATUS OF DIVIDENDS (UNAUDITED)

All dividends paid by the funds were paid out as short-term capital gain
dividends on net investment income dividends. For federal income tax purposes,
dividends from short-term capital gain are classified as ordinary income.

REPUBLIC INTERNATIONAL EQUITY

Pursuant to Treasury Regulations, the Fund will elect to pass through foreign
tax credit in the amount of $103,401 for the fiscal year ended October 31, 1996.
<PAGE>
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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
BISYS Fund Services, Inc.
3435 Stelzer Road
Columbus, OH 43219

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

[graphic omitted]

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REPUBLIC

INTERNATIONAL EQUITY

FUND

ANNUAL REPORT
OCTOBER 31, 1996