<PAGE>
PRESIDENT'S MESSAGE
June 1997
Dear Shareholder:
We are very pleased to present you with the semi-annual reports for the
Republic New York Tax-Free Money Market Fund for the six months ended April
30, 1997. In this report we have provided you with a commentary from the
Investment Adviser, Republic National Bank of New York.
We hope you find this commentary and accompanying financial summaries
informative and as always we would be delighted to hear from you to answer any
questions you might have or provide you with additional information.
Financial statements and portfolio holdings for the Republic New York Tax-
Free Money Market Fund for the six months ended April 30, 1997 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 NEW YORK TAX-FREE MONEY MARKET FUND
SEMI-ANNUAL REPORT -- APRIL 30, 1997 (UNAUDITED)
TABLE OF CONTENTS
PAGE
President's Message ....................................................... 1
Commentary from the Investment Adviser .................................... 3
Statement of Net Assets ................................................... 4
Statement of Operations ................................................... 9
Statements of Changes in Net Assets ....................................... 10
Notes to Financial Statements ............................................. 11
Financial Highlights ...................................................... 15
<PAGE>
COMMENTARY FROM THE INVESTMENT ADVISER --
REPUBLIC NATIONAL BANK OF NEW YORK
U.S. ECONOMIC REVIEW
Financial markets were generally positive although volatile during the
first half of the fiscal year ending October 31, 1997. Data released during
the six months showed the U.S. economy expanded rapidly while inflation
remained tame. As the period progressed, investors became increasingly focused
on the strength of the economic activity and the likelihood that the Federal
Reserve would raise interest rates to guard against price pressures and the
risk of a recession. In March 1997, policymakers surprised few by raising the
federal funds rate a quarter of a point to 5.5%. This pre-emptive strike was
the first increase in more than two years.
The Federal Reserve tightening is not expected to derail the continued
solid economic performance of U.S. industries. The U.S. Gross Domestic Product
surged 3.8% during the last three months of 1996 and 5.8% during the first
three-months of 1997, the fastest pace in a decade. This rapid rate of growth
reflected a spike in consumer spending and a sharper-than-expected buildup in
inventories. Robust spending at the retail level led to an acceleration in
factory orders as businesses restored stock levels. Industrial production
growth was wide-spread, with automobiles, business equipment, home appliances
and high technology items all recording strong gains.
High employment figures helped fuel the surge in consumer spending. The
U.S. unemployment rate fell to 4.9% in April 1997, down from 5.2% six months
earlier, while non-farm payrolls grew by an average of 229,000 a month during
the period. Despite the robust job market and reports that skilled workers
were increasingly hard to find, the Employment Cost Index rose only modestly,
helping to keep the inflation picture positive.
PORTFOLIO REVIEW
Republic New York Tax-Free Money Market Fund
- --------------------------------------------
The Republic New York Tax-Free Money Market Fund returned 1.43% and 1.56%*
for Class C (Investor Class) and Class Y (Advisor Class) respectively, for the
six month period ended April 30, 1997, compared to 1.43% for the Lipper NY
Money Market Fund Average.**
Short-term New York tax-exempt interest rates remained steady for most of
the period. Prices for high grade municipal notes remained strong due to an
increase in demand and lack of new issuance. As the period progressed, fear of
future rate hikes by the Federal Reserve and seasonal factors such as
corporate and individual tax payments caused a moderate backup in short-term
municipal rates. In response, the Fund maintained a neutral maturity of 53
days. The Fund purchased a larger amount of tax-exempt commercial paper in
order to lock in the cheaper rates seen in April 1997. As of April 30, 1997
the Fund's portfolio consisted of 39% Floating Rate Demand Notes, 36% Tax
Exempt Commercial Paper, 24% Fixed Rate Notes and 1% cash and cash
equivalents.*** The Fund's annualized compounded 7-day yield through April 30,
1997 was 3.4% and 3.65% for Class C and Class Y, respectively.****
*The performance data quoted represents past performance and is not an
indication of future results. The investment in the Fund is neither
insured nor guaranteed by the U.S. Government. Yields will fluctuate, and
there can be no assurance that the Fund will be able to maintain a stable
NAV of $1.00 per share.
**Lipper NY Money Market Fund Average: an average of all the funds in the
Lipper New York universe.
***The composition of the Fund's holdings is subject to change.
****The performance set forth reflects the waiver of a portion of the fund's
advisory or administrative fees. In the absence of such fee waivers the 7
day yield figures would have been 3.31% and 3.56% for Class C and Class Y,
respectively.
This material must be preceeded or accompanied by a current prospectus.
<PAGE>
REPUBLIC NEW YORK TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
APRIL 30, 1997 (CONTINUED)
REPUBLIC NEW YORK TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
APRIL 30, 1997
PRINCIPAL DESCRIPTION MOODY'S/ VALUE
AMOUNT RATE MATURITY S&P(b) (NOTE 2)
------ ---- -------- ------ --------
NEW YORK TAX-FREE BONDS, NOTES AND COMMERCIAL PAPER -- 99.6% (a)
NEW YORK TAX FREE MUNICIPAL NOTES -- 24.2%
$2,000,000 Albany, New York,
Central School
District, RANS 4.375% 10/24/97 NR/NR $ 2,004,980
1,000,000 Buffalo, New York,
Revenue
Participation
Notes - Series A.
LOC - Landesbank
Hessen .......... 4.250% 07/15/97 MIG1/SP1+ 1,001,311
2,000,000 Clinton County, New
York, BANS ..... 4.000% 12/12/97 NR/NR 2,005,351
500,000 Erie County, New
York, RANS, LOC -
Union Bank of
Switzerland -
Series B ....... 4.250% 11/19/97 MIG1/NR 501,733
1,000,000 Great Neck, New
York Union Free
School District,
TANS, General
Obligation ...... 4.250% 06/30/97 MIG1/NR 1,000,559
1,000,000 Hempstead Town, New
York, BANS,
Series E ....... 4.250% 10/30/97 NR/NR 1,002,164
800,000 Hicksville, New
York, Union Free
School District,
TANS, General
Obligation ...... 4.250% 06/26/97 NR/NR 800,342
500,000 Monroe County, New
York, BANS ..... 4.500% 06/06/97 NR/NR 500,405
745,000 Municipal
Assistance Corp.,
New York,
Revenue, Series
D, AMBAC insured
4.000% 07/01/97 Aaa/AAA 745,235
3,500,000 Nassau County, New
York, TANS,
General
Obligation,
Series B ....... 4.250% 08/29/97 NR/SP1+ 3,507,878
610,000 Newcastle New York
Public
Improvement,
Secured to
Maturity ........ 5.400% 09/15/97 Aa1/NR 613,931
635,000 New York State
Housing, Finance
Agency PRERE, 11/
01/97 @ 102 .... 7.800% 05/01/01 AAA/AAA 662,222
1,000,000 North Hempstead,
New York, BANS . 4.000% 05/29/97 NR/NR 1,000,228
500,000 Oyster Bay, New
York, RANS ..... 4.125% 01/30/98 NR/NR 501,556
1,000,000 Puerto Rico
Commonwealth
TRANS ........... 4.000% 07/30/97 MIG1/SP1+ 1,001,386
420,000 Triborough Bridge &
Tunnel Authority,
New York
Convention Center
Project, Revenue,
Series E, BANS
LOC - Morgan
Guaranty Trust . 6.700% 07/01/97 Aa1/AAA 421,959
1,000,000 West Islip, New
York University
Free School
District TANS .. 4.250% 06/30/97 NR/NR 1,000,717
1,507,500 Williamson, New
York, General
Obligation, BANS 4.250% 12/23/97 NR/NR 1,513,467
-----------
19,785,424
-----------
NEW YORK TAX FREE COMMERCIAL PAPER -- 35.7% (a)
1,000,000 Municipal
Assistance Corp 3.650% 07/16/97 P1/A1+ 1,000,000
3,000,000 Municipal
Assistance Corp 3.350% 05/07/97 P1/A1+ 3,000,000
750,000 New York City
Municipal Water
Finance
Authority, Water
& Sewer System,
Revenue PRERE,
06/15/97 @ 102 . 9.000% 06/15/97 Aaa/Aaa 769,845
1,800,000 New York State
Dormitory
Authority,
Memorial Sloan
Kettering, LOC -
Chase Manhattan 3.600% 07/14/97 VMIG1/A1+ $ 1,800,000
1,000,000 New York State
Dormitory
Authority,
Memorial Sloan
Kettering, LOC -
Chase Manhattan 3.400% 05/09/97 VMIG1/A1 1,000,000
1,000,000 New York State
Dormitory
Authority,
Memorial Sloan
Kettering, LOC -
Chase Manhattan 3.400% 06/13/97 VMIG1/A1 1,000,000
1,000,000 New York State
Dormitory
Authority,
Memorial Sloan
Kettering, LOC -
Chase Manhattan 3.400% 06/13/97 VMIG1/A1 1,000,000
300,000 New York State
Dormitory
Authority, City
University ..... 8.125% 07/01/17 AAA/AAA 308,167
1,000,000 New York State
Dormitory
Authority, Public
University, LOC -
Canadian Imperial
Bank ........... 4.300% 07/01/22 VMIG1/A1+ 1,000,000
500,000 New York State
Dormitory
Authority,
Memorial Sloan
Kettering, LOC -
Chase Manhattan 3.400% 05/16/97 NA/NA 500,000
2,200,000 New York State
Environmental
Authority,
Memorial Sloan
Kettering ....... 3.600% 07/14/97 VMIG1/A1+ 2,200,000
1,900,000 New York State
Environmental
Facilities Corp.,
Solid Waste
Disposal,
Revenue, General
Electric Co.
Project, Memorial
Sloan Kettering 3.550% 05/05/97 P1/A1+ 1,900,000
1,500,000 New York State,
General
Obligation, LOC -
Westdeutsche
Landesbank ...... 3.400% 05/06/97 VMIG1/A1 1,500,000
1,500,000 New York City
Municipal Water,
LOC - Barclays
Bank ............ 3.750% 07/31/97 P1/A1+ 1,500,000
2,600,000 New York State
Power Authority
Bond, Revenue &
General Purpose 3.500% 09/01/97 VMIG1/A1+ 2,600,000
1,080,000 New York State
Power Authority 3.500% 05/15/97 P1/A1 1,080,000
1,000,000 New York State
General
Obligation, LOC -
Barclays Bank .. 3.450% 06/24/97 VMIG1/P1 1,000,000
2,000,000 New York State
General
Obligation, LOC -
Barclays Bank .. 3.400% 05/09/97 VMIG1/P1 2,000,000
2,000,000 Puerto Rico
Government
Development Bank
4.000% 07/24/97 P1/A1+ 2,000,000
1,000,000 Puerto Rico
Government
Development Bank
3.250% 05/07/97 NR/A1+ 1,000,000
1,000,000 Puerto Rico
Government
Development Bank
3.500% 05/07/97 NR/A1+ 1,000,000
-----------
29,158,012
-----------
VARIABLE RATE DEMAND NOTES -- 39.0% (a)(c)
$1,000,000 New York State
Local Government
Assistance Corp.,
Revenue, Series
G, LOC -
Landesbank Hessen 4.500% 04/01/25 VMIG1/A1+ $ 1,000,000
1,000,000 New York State
Local Government
Assistance Corp.,
Revenue, Series
G, LOC - Societe
Generale ....... 4.400% 04/01/25 VMIG1/A1+ 1,000,000
3,600,000 Babylon New York
Industrial
Development
Authority, LOC -
Union Bank of
Switzerland ..... 3.900% 12/01/24 NR/A1+ 3,600,000
100,000 Duchess County, New
York, Industrial
Development
Agency, Laerdal
Medical Corp.
project, Revenue,
LOC - Bank of New
York, AMT ...... 3.650% 10/01/15 NR/NR 100,000
500,000 New York City,
Public
Improvements,
General
Obligation LOC -
West Deuche
Landesbank ...... 3.950% 08/15/05 VMIG1/A1+ 500,000
2,000,000 New York City,
Health Hospital
Corp., LOC -
Canadian Imperial
Bank ........... 4.350% 02/15/26 VMIG1/A1+ 2,000,000
2,000,000 New York New York,
General
Obligation, LOC -
State Street ... 4.000% 08/01/21 VMIG1/A1+ 2,000,000
600,000 New York New York,
General
Obligation,
Refunding Bonds,
LOC - FGIC ..... 4.000% 08/01/19 VMIG1/A1+ 600,000
300,000 New York New York,
General
Obligation,
Refunding Bonds,
LOC - Morgan
Guaranty ........ 4.000% 08/01/19 VMIG1/A1+ 300,000
600,000 New York New York,
General
Obligation,
Refunding Bonds,
LOC - Morgan
Guaranty ........ 4.000% 08/01/20 VMIG1/A1+ 600,000
1,300,000 New York City
Housing
Development, East
17th Street
Project, Revenue,
LOC - Chase
Manhattan 3.950% 01/01/23 NR/A1 1,300,000
1,200,000 New York City
Industrial
Development
Agency, Brooklyn
Navy Yard, LOC -
Bank of America 4.550% 07/01/29 P1/NR 1,200,000
2,000,000 New York City
Industrial
Development
Agency, Brooklyn
Navy Yard, LOC -
Bank of America 4.500% 07/01/29 P1/NR 2,000,000
1,400,000 New York City
Municipal Water
Finance
Authority, Water
& Sewer System,
Revenue, LOC -
FGIC 4.050% 06/15/23 VMIG1/A1+ 1,400,000
3,000,000 New York City
Industrial
Development
Authority Korean
Airlines Co., LOC
- Bankers Trust 4.450% 11/01/24 VMIG1/A1 3,000,000
$1,500,000 New York State
Dormitory
Authority,
Metropolitan
Museum of Art,
Revenue, Series
B, LOC - MBIA
Surety BD ...... 4.300% 07/01/15 VMIG1/A1+ $ 1,500,000
1,200,000 New York State
Dormitory
Authority,
Metropolitan
Museum of Art,
Revenue, Series
B, LOC - MBIA
Surety BD ...... 4.300% 07/01/23 VMIG1/A1+ 1,200,000
500,000 New York State
Energy Research &
Development
Authority,
Niagara, Mohawk
Power
Corporation, LOC
- Toronto
Dominion Bank .. 4.050% 12/01/26 P1/ NR 500,000
200,000 New York State
Energy Research &
Development
Authority,
Pollution
Control, Revenue
LOC - Union Bank
of Switzerland . 3.750% 10/01/29 VMIG1/A1+ 200,000
1,000,000 New York State
Energy Research &
Development
Niagara Mohawk,
LOC - Morgan
Guaranty ........ 4.050% 12/01/23 NR/A1+ 1,000,000
700,000 New York State
Energy Research &
Development
Niagara Mohawk,
LOC - Morgan
Guaranty ........ 4.050% 07/01/27 NR/A1+ 700,000
1,800,000 New York State
Energy Research &
Development
Niagara Mohawk,
LOC - Canadian
Imperial Bank .. 4.000% 12/01/25 P1/NR 1,800,000
1,000,000 New York State
Thruway
Authority, LOC -
FGIC 3.950% 01/01/24 VMIG1/A1+ 1,000,000
1,000,000 Port Authority of
New York & New
Jersey .......... 3.950% 06/01/20 VMIG1/A1+ 1,000,000
700,000 Port Authority of
New York & New
Jersey, Special
Obligations ..... 3.950% 08/01/24 VMIG1/A1+ 700,000
645,000 Port Authority of
New York & New
Jersey .......... 3.400% 05/09/97 P1/A1+ 645,000
1,000,000 Suffolk County
Industrial
Development
Agency YWHA, LOC
- European
American Bank .. 4.550% 12/01/12 VMIG1/NR 1,000,000
-----------
31,845,000
OTHER MUNICIPAL -- 0.7% (a)
MUTUAL FUNDS
530,000 Dreyfus NY Tax Free Money Market Fund ........... 530,000
TOTAL INVESTMENTS AT AMORTIZED COST }D{ ....................... 81,318,436
CASH .......................................................... 178
INTEREST RECEIVABLE ........................................... 612,291
DEFERRED ORGANIZATION EXPENSE ................................. 16,116
RECEIVABLE FOR INVESTMENTS SOLD ............................... 47,167
PREPAID EXPENSES .............................................. 88,068
INVESTMENT ADVISORY FEES PAYABLE .............................. (50,619)
DISTRIBUTION PAYABLE .......................................... (225,835)
SHAREHOLDER SERVICE FEES PAYABLE - CLASS C .................... (94,925)
ADMINISTRATION FEE PAYABLE .................................... (11,648)
OTHER ACCRUED EXPENSES ........................................ (68,291)
NET ASSETS .................................................... $81,630,938
-----------
Represented by:
Paid-in capital ............................................... 81,630,938
-----------
NET ASSETS:
Class C -- Applicable to 75,675,613 shares of beneficial
interest outstanding (unlimited number of shares
authorized) ...................................... 75,675,613
Class Y -- Applicable to 5,955,325 shares of beneficial
interest outstanding (unlimited number of shares
authorized) ...................................... 5,955,325
-----------
Net Assets .................................................... $81,630,938
===========
Net Asset Value, Offering Price and Redemption Price Per Share $1.00
=====
(a) Percentages indicated are based on net assets of $81,630,938, which
correspond to a net asset value per common share of $1.00.
(b) The Moody's or Standard & Poor's rating indicated are believed to be the
most recent ratings available at April 30, 1997 for the securities listed.
Ratings are generally ascribed to securities at the time of issuance.
While agencies may from time to time revise such ratings, they undertake
no obligation to do so, and the ratings do not necessarily represent what
the agencies would ascribe to these securities at April 30, 1997. These
ratings are unaudited.
(c) Represents a variable rate demand note. Interest resets daily or weekly.
Interest rate disclosed represents current rate at 04/30/97.
(d) For Federal income tax purposes, the cost of securities owned at April 30,
1997 was substantially the same as the cost of securities for financial
statement purposes.
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Interest on security is subject to Federal Alternative
Minimum Tax
BANs -- Bond Anticipation Notes
FGIC -- Federal Guaranty Insurance Corporation
FSA -- Financial Security Assurance Holding
LOC -- Letter of Credit
MBIA -- Municipal Bond Insurance Association
RANs -- Revenue Anticipation Notes
TANs -- Tax Anticipation Notes
See notes to financial statements
<PAGE>
REPUBLIC NEW YORK TAX-FREE MONEY MARKET FUND
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED APRIL 30, 1997
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest income .............................................................. $1,593,459
EXPENSES:
Shareholder service fees -- Class C ......................... $105,386
Advisory fees ............................................... 66,786
Administration fees ......................................... 43,578
Custodian fees and expenses ................................. 22,460
Fund accounting fees ........................................ 14,022
Legal Fees .................................................. 13,656
Transfer agent fees ......................................... 11,286
Reports to shareholders ..................................... 8,379
Audit fees .................................................. 7,524
Trustees' fees .............................................. 3,367
Other expenses .............................................. 21,345
--------
Total expenses .......................................... 317,789
Voluntary fee reductions and expense reimbursements ..... (51,352)
--------
Total net expenses ..................................................... 266,437
----------
NET INVESTMENT INCOME ........................................................ 1,327,022
----------
NET REALIZED GAINS ON INVESTMENTS ............................................ 209
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ......................... $1,327,231
==========
</TABLE>
See notes to financial statements
<PAGE>
REPUBLIC NEW YORK TAX-FREE MONEY MARKET FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED FOR THE
APRIL 30, 1997 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1996
----------------- --------------------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income ................................. $ 1,327,022 $ 2,066,770
Net realized gains (losses) on investment transactions 209 (5,393)
------------ ------------
Change in net assets resulting from operations ........ 1,327,231 2,061,377
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class C Shares ...................................... (1,207,428) (2,008,480)
Class Y Shares ...................................... (119,804) (52,897)
------------ ------------
Change in net assets from shareholder distributions ... (1,327,232) (2,061,377)
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued ......................... 184,315,871 315,094,256
Dividends reinvested ................................ 1,174,287 1,757,502
Cost of shares redeemed ............................. (186,166,923) (287,196,531)
------------ ------------
Change in net assets from capital share transactions .. (676,765) 29,655,227
------------ ------------
CHANGE IN NET ASSETS .................................. (676,766) 29,655,227
NET ASSETS:
Beginning of period ................................. 82,307,704 52,652,477
------------ ------------
End of period ....................................... $ 81,630,938 $ 82,307,704
============ ============
ANALYSIS OF FUND SHARE TRANSACTIONS:
Class C Shares:
Beginning of period ................................. 78,593,998 52,652,477
Shares sold ......................................... 112,420,172 292,716,687
Shares issued in connection with reinvestment of
distributions ..................................... 1,157,777 1,757,502
Shares redeemed ..................................... (116,496,334) (268,532,668)
------------ ------------
End of period ....................................... 75,675,613 78,593,998
============ ============
Class Y Shares(a):
Beginning of period ................................. 3,713,706 --
Shares sold ......................................... 71,895,699 22,377,569
Shares issued in connection with reinvestment of
distributions ..................................... 16,510 --
Shares redeemed ..................................... (69,670,590) (18,663,863)
------------ ------------
End of period ....................................... 5,955,325 3,713,706
============ ============
</TABLE>
(a) The Fund commenced offering Class Y Shares on July 1, 1996.
See notes to financial statements
<PAGE>
REPUBLIC NEW YORK TAX-FREE MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 1997
(UNAUDITED)
1. ORGANIZATION:
Republic New York Tax-Free Money Market Fund (the "Fund") is a separate
series of the Republic Funds (the "Trust"), a Massachusetts business trust
organized on April 22, 1987, which currently consists of seven funds, each
of which has different and distinct investment objectives and policies.
The financial statements for the other six funds are presented separately.
The Trust is registered under the Investment Company Act of 1940, as
amended (the "Act"), as an open-end management investment company.
The Fund is authorized to issue two classes of shares (par value
$0.001 per share), Class C Shares (Investor Class), and 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 exclusively allocable 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 Fund's investment objective is to provide shareholders of the Fund
with liquidity and as high a level of current income exempt from federal,
New York State and New York City personal income taxes as is consistent
with the preservation of capital. The Fund seeks to achieve its investment
objective by investing the assets of the Fund primarily in a non-
diversified portfolio of short-term, high quality, fixed rate and variable
rate tax-exempt money market instruments with maturities of 397 days or
less, including obligations issued by or on behalf of the State of New
York and its authorities, agencies, instrumentalities and political
subdivisions, and in participation interests issued by banks, insurance
companies or other financial institutions with respect to such
obligations.
Republic National Bank of New York ("Republic" or the "Adviser")
serves as Investment Adviser to the Fund. BISYS Fund Services, Inc.,
("BISYS" or the "Sponsor") serves as administrator, distributor and
sponsor to the Fund.
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 and disclosures in the
financial statements. 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 397 days 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.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
The Fund's net investment income is declared daily and paid monthly to
shareholders of record at the close of business on record date. Net
realized gains on portfolio securities, if any, are distributed at least
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 on certain undistributed income and net
capital gains of regulated investment companies.
The amount of dividends from net investment income and of
distributions from net realized gains are determined in accordance with
federal income tax regulations which may differ from generally accepted
accounting principles. These "book/tax" differences are either considered
temporary or permanent in nature. To the extent these differences are
permanent in nature, such amounts are reclassified within the composition
of net assets based on their federal tax-basis treatment; temporary
differences do not require reclassification. Dividends and distributions
to shareholders which exceed net investment income and net realized
capital gains for financial reporting purposes but not for tax purposes
are reported as dividends in excess of net investment income or net
distributions in excess of net realized gains. To the extent they exceed
net investment income and net realized gains for tax purposes, they are
reported as distributions of capital.
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.
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 where allocations of direct expenses to each fund can
otherwise be made fairly. Expenses directly attributable to a fund are
charged to that fund.
FEDERAL INCOME TAXES:
The Fund is treated as a separate taxable entity for federal tax purposes.
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 they distribute substantially all of their net
investment income and net realized gains to their shareholders.
UNAMORTIZED ORGANIZATION EXPENSES:
The Fund incurred certain costs in connection with its organization. Such
costs have been 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:
ADVISORY FEES:
Republic acts as investment adviser to the Fund. Republic is responsible
for the investment management of the Fund's assets, including the
responsibility for making investment decisions and placing orders for the
purchase and sale of the Fund's investments directly with the issuers or
with brokers or dealers selected by it in its discretion. Republic 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 0.15%
of average daily net assets. During the six months ended April 30, 1997,
the advisory fee was $66,786, of which $49,105 was voluntarily waived.
ADMINISTRATION:
Pursuant to an Administrative Services Agreement, BISYS provides the Fund
with general office facilities and supervises the overall administration
of the Fund including, among other responsibilities, assisting in 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 Funds. For its services to the
Fund, BISYS receives from the Fund fees payable monthly equal on an annual
basis to 0.10% of the Fund's average daily net assets up to $1 billion;
0.08% of the next $1 billion of such assets; and 0.07% of such assets in
excess of $2 billion. During the six months ended April 30, 1997, the
administrative services fee was $43,578.
FUND ACCOUNTING:
Pursuant to a Fund Accounting Agreement, Investors Bank & Trust Company
("IBT") serves as a fund accounting agent to the Fund. For its services to
the Fund, IBT receives fees payable monthly equal on an annual basis to
$30,000.
RULE 12B-1 PLAN EXPENSES:
The Fund has adopted a noncompensatory Distribution Plan and Agreement
(the "Plan") pursuant to Rule 12b-1 of the Act. The Plan provides for a
monthly payment by the Fund to the Sponsor for amounts representing actual
expenses incurred by the Sponsor for marketing costs and services rendered
in distributing Fund shares at a rate not to exceed 0.25% of the average
daily net assets of the Class C Shares.
SHAREHOLDER SERVICING EXPENSES:
The Fund has entered into a Shareholder Servicing Agreement with each
shareholder servicing agent pursuant to the Administrative Services Plan.
Each shareholder servicing agent receives a fee from the Fund, which may
be paid periodically, determined by a formula based upon the number of
accounts serviced, the level of activity in such accounts and the expenses
incurred by the shareholder servicing agent. It is currently intended that
the aggregate fees paid to the Distributor pursuant to the Plan and to
shareholder servicing agents pursuant to the Administrative Services Plan
will not exceed 0.25% per annum of the Fund's average daily net assets of
Class C Shares. During the six months ended April 30, 1997, shareholder
servicing fees were $105,386.
REIMBURSEMENT AND WAIVER OF EXPENSES:
The Manager has voluntarily agreed to waive a portion of its fees, and to
the extent necessary, reimbursed the Funds for certain expenses. For the
six months ended April 30, 1997, expenses of the Fund were voluntarily
limited to 0.65% and 0.40 % of the Fund's average daily net assets
attributable to the Class C shares and Class Y shares respectively. During
the six months ended April 30, 1997, the amount of fees waived and
expenses reimbursed were $49,105 and $2,247, respectively.
4. CONCENTRATION OF CREDIT RISK:
The Fund invests primarily in debt obligations issued by the State of New
York and its respective political subdivisions, agencies and public
authorities to obtain funds for various public purposes. The Fund is more
susceptible to economic and political factors adversely affecting issuers
of New York specific municipal securities than are municipal bond funds
that are not concentrated in these issuers to the same extent.
<PAGE>
REPUBLIC NEW YORK TAX-FREE MONEY MARKET FUND
FINANCIAL HIGHLIGHTS -- CLASS C SHARES
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE NOVEMBER 17, 1994
SIX MONTHS FOR THE (COMMENCEMENT
ENDED YEAR OF OPERATIONS)
APRIL 30, 1997 ENDED THROUGH
(UNAUDITED) OCTOBER 31, 1996 OCTOBER 31,1995
-------------- ---------------- -----------------
<S> <C> <C> <C>
NET ASSET VALUE PER SHARE, BEGINNING
OF PERIOD ......................... $ 1.00 $ 1.00 $ 1.00
------- ------- -------
Income from investment operations:
Net investment income ............. 0.014 0.030 0.033
------- ------- -------
Total income from investment
operations ...................... 0.014 0.030 0.033
------- ------- -------
Less dividends:
Dividends to shareholders from net
investment income ............... (0.014) (0.030) (0.033)
------- ------- -------
Total dividends ................... (0.014) (0.030) (0.033)
------- ------- -------
NET ASSET VALUE PER SHARE, END OF
PERIOD .......................... $ 1.00 $ 1.00 $ 1.00
======= ======= =======
Total return ........................ 1.43%(c) 3.04% 3.31%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000) . $75,676 $78,594 $52,652
Ratio of expenses to average net
assets .......................... 0.60%(b) 0.54% 0.41%(b)
Ratio of net investment income to
average net assets .............. 2.86%(b) 2.97% 3.45%(b)
Ratio of expenses to average net
assets (a) ...................... 0.71%(b) 0.63% 0.65%(b)
Ratio of net investment income to
average net assets (a) .......... 2.75%(b) 2.88% 3.20%(b)
- ----------
(a) During the period, certain fees were voluntarily reduced and expenses reimbursed. If such
voluntary fee reductions and expense reimbursements had not occurred, the ratios would have
been as indicated.
(b) Annualized.
(c) Not annualized.
</TABLE>
See notes to financial statements
<PAGE>
REPUBLIC NEW YORK TAX-FREE MONEY MARKET FUND
FINANCIAL HIGHLIGHTS -- CLASS Y SHARES
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE JULY 1, 1996
SIX MONTHS (DATE OF INITIAL
ENDED OFFERING)
APRIL 30, 1997 THROUGH
(UNAUDITED) OCTOBER 31, 1996
--------------- ----------------
<S> <C> <C>
NET ASSET VALUE PER SHARE, BEGINNING OF PERIOD ..... $ 1.00 $ 1.00
------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ............................ 0.015 0.010
------- -------
Total from investment operations ................. 0.015 0.010
------- -------
Less dividends:
Dividends to shareholders from net Investment
income ......................................... (0.015) (0.010)
------- -------
Total dividends .................................. (0.015) (0.010)
------- -------
NET ASSET VALUE PER SHARE, END OF PERIOD ......... $ 1.00 $ 1.00
======= =======
Total return ....................................... 1.56%(c) 1.03%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of period (000) ............... $ 5,955 $ 3,714
Ratio of expenses to average net assets .......... 0.35%(b) 0.35%(b)
Ratio of net investment income to average net
assets ......................................... 3.10%(b) 3.12%(b)
Ratio of expenses to average net assets (a) ...... 0.46%(b) 0.45%(b)
Ratio of net investment income to average net
assets (a) ..................................... 2.99%(b) 3.02%(b)
- ----------
(a) During the period, certain fees were voluntarily reduced and expenses reimbursed. If such
voluntary fee reductions and expense reimbursements had not occurred, the ratios would have
been as indicated.
(b) Annualized.
(c) Not annualized.
</TABLE>
See notes to financial statements
<PAGE>
REPUBLIC
NEW YORK TAX-FREE
MONEY MARKET
FUND
INVESTMENT ADVISER
Republic National Bank of New York
452 Fifth Avenue
New York, NY 10018
ADMINISTRATOR, DISTRIBUTOR AND SPONSOR
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
REPUBLIC FAMILY OF FUNDS
CUSTOMER SERVICE:
Republic National Bank of New York
452 Fifth Avenue
New York, NY 10018
(888) 525-5757 (Toll Free)
[GRAPHIC OMITTED]
REPUBLIC
NEW YORK TAX-FREE
MONEY MARKET
FUND
SEMI-ANNUAL REPORT
APRIL 30, 1997
