<PAGE>
[Graphic Omitted]
- ----------------
REPUBLIC
NEW YORK TAX-FREE
MONEY MARKET
FUND
SEMI-ANNUAL REPORT
April 30, 1998
<PAGE>
PRESIDENT'S MESSAGE
June 1998
Dear Shareholder:
We are very pleased to present you with the semi-annual report for the
Republic New York Tax-Free Money Market Fund for the six months ended April
30, 1998. 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, 1998 also follow. We
look forward to servicing your financial needs and appreciate your continued
support.
Respectfully submitted,
/s/ Walter B. Grimm
Walter B. Grimm
President
<PAGE>
REPUBLIC NEW YORK TAX-FREE MONEY MARKET FUND
SEMI-ANNUAL REPORT -- APRIL 30, 1998
TABLE OF CONTENTS
PAGE
----
President's Message ................................................. 1
Commentary from the Investment Adviser .............................. 3
Statement of Net Assets ............................................. 4
Statement of Operations ............................................. 10
Statements of Changes in Net Assets ................................. 11
Notes to Financial Statements ....................................... 12
Financial Highlights ................................................ 16
<PAGE>
COMMENTARY FROM THE INVESTMENT ADVISER --
REPUBLIC NATIONAL BANK OF NEW YORK
U.S. ECONOMIC REVIEW
The U.S. economy sustained its rapid expansion during the first six months
of the fiscal year 1998, providing the foundation for a further extension of
favorable performance in financial markets. Despite expectations at year end
that falling export demand from Asia would quickly translate into slower US
growth, GDP expanded at an annualized 4.0 to 4.5% for the first six months.
The catalysts for strong growth has been the strength in domestic consumption
and business fixed investment. Inflation remains tame with little prospect of
a flare-up. Although labor markets remain tight, higher wages are not being
passed on to consumers in the form of higher prices. Falling raw materials and
commodities prices, especially oil, combined with intense global competition,
have helped offset labor related price pressure. Judging from the producer
price index, which continued to fall during the six month period, the
inflation outlook should remain favorable for the balance of the fiscal year.
PORTFOLIO REVIEW
Republic New York Tax-Free Money Market Fund
- --------------------------------------------
The Republic New York Tax-Free Money Market Fund returned 1.49% and 1.61%*
for Class A Shares (Investor Shares) and Class Y Shares (Adviser Shares)
respectively, for the six months ended April 30, 1998, compared to 1.49% for
the Lipper NY Money Market Fund Average.** The fund commenced sales of ("Class
B Shares") on April 29, 1998. The return for Class B Shares for the period
April 29 to April 30, 1998 is less than 0.01%.
Prices for high grade municipal notes remained strong due to an increase
in demand and lack of new issuance. Seasonal factors such as corporate and
individual tax payments caused short term variable rates to rise slightly and
the Fund purchased more of these securities to take advantage of the higher
yields. As of April 30, 1998 the Fund's average maturity was 46 days and the
portfolio consisted of 32% Floating Rate Demand Notes, 30% Tax Exempt
Commercial Paper, 36% Fixed Rate Notes and 2% cash and cash equivalents.***
The Fund's annualized compounded 7-day yield through April 30, 1998 was 3.24%
and 3.49% for Investor Shares and Adviser Shares, respectively.****
*The performance data quoted represents past performance and is not an
indication of future results. An 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. Market returns are measured in U.S. dollars and include
re-invested dividends.
**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 3.16% and 3.41% for Investor Shares and
Adviser Shares, respectively.
This material must be preceded or accompanied by a current prospectus.
<PAGE>
REPUBLIC NEW YORK TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED) -- APRIL 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL MOODY'S/ VALUE
AMOUNT DESCRIPTION RATE MATURITY S&P(b) (NOTE 2)
------ ----------- ---- -------- ------ --------
<S> <C> <C> <C> <C>
NEW YORK TAX FREE BONDS, NOTES AND COMMERCIAL PAPER -- 97.4%(a)
NEW YORK TAX FREE MUNICIPAL NOTES -- 34.5%(a)
$2,000,000 Bay Shore, New York, Union Free
School District, TANS ........ 4.250% 06/29/98 NR/NR $ 2,004,980
900,000 Bay Shore, New York, Union Free
School District, General
Obligations, TANS ............ 4.250% 06/29/98 NR/NR 900,565
1,000,000 Brentwood, New York, Union Free
School District, General
Obligation, TANS ............. 4.250% 06/30/98 MIG1/NE 1,000,553
3,000,000 Brentwood, New York, Union Free
School District, General
Obligation, TANS ............. 4.250% 06/30/98 MIG1/NE 3,002,893
2,500,000 Buffalo, New York, General
Obligation, RANS ............. 4.400% 08/05/98 MIG1/SP-1+ 2,503,721
1,700,000 Chautauqua County, New York,
General Obligation, TANS ..... 4.000% 12/22/98 NE/SP-1+ 1,704,558
2,000,000 Commonwealth of Puerto Rico .... 4.500% 07/30/98 MIG1/SP-1+ 2,003,623
1,500,000 Connetquot, New York, Central
School District, General
Obligation, TANS ............. 4.250% 06/25/98 MIG1/NR 1,500,874
1,000,000 Erie County, New York, RANS, LOC
- Union Bank of Switzerland -
Series B ..................... 4.500% 10/29/98 MIG1/NR 1,003,247
3,200,000 Greatneck, Union Free School
District, General Obligation,
TANS ......................... 4.250% 06/30/98 MIG1/NR 3,201,234
2,000,000 Hempstead Town, New York,
General Obligation, Series D,
BANS ......................... 4.000% 10/15/98 NE/NR 2,001,762
1,250,000 Manhasset, New York, Union Free
School District, General
Obligation ................... 7.300% 01/01/99 NE/NR 1,280,635
650,000 Massapequa, New York, Union Free
School District, General
Obligation, BANS ............. 4.250% 10/29/98 NE/NR 651,240
2,000,000 Nassau City, General Obligation,
TANS ......................... 4.250% 08/31/98 NR/SP-1 2,003,062
1,975,000 Nassau City, General Obligation,
TANS ......................... 4.250% 08/31/98 NR/SP-1 1,979,300
2,000,000 Nassau County, New York, General
Obligation, BANS ............. 4.000% 08/17/98 MIG1/Sp-1 2,002,332
1,000,000 New York City, General
Obligations, RANS ............ 4.500% 06/30/98 MIG1/Sp-1+ 1,001,169
500,000 New York State, Dormitory
Authority Revenue, St. Mary's
Hospital Amsterdam, LOC - MBIA 4.250% 05/01/98 Aaa/AAA 500,000
2,000,000 Palmyra Macedon, New York,
Central School District ...... 4.375% 06/12/98 MIG1/SP-1+ 2,001,163
1,785,000 Port Authority of New York & New
Jersey Special Obligation .... 3.350% 06/05/98 P1/A1+ 1,785,000
3,000,000 Suffolk County, New York,
General Obligation ........... 4.250% 08/13/98 MIG1/Sp-1+ 3,005,456
2,000,000 West Babylon, New York, Union
Free School District, General
Obligation, TANS ............. 4.250% 06/25/98 NR/NR 2,000,867
2,000,000 Westchester County, New York,
TANS ......................... 3.590% 12/29/98 MIG1/NE 2,000,246
------------
TOTAL NEW YORK TAX FREE MUNICIPAL NOTES .................................. 41,034,759
------------
NEW YORK TAX FREE COMMERCIAL PAPER -- 28.6%(a)
1,915,000 Monroe County .................. 3.800% 05/14/98 P1/A1+ 1,915,000
3,000,000 New York City, Municipal Water
Finance Authority ............ 3.350% 05/01/98 P1/A1+ 3,000,000
1,500,000 New York City, Municipal Water
Finance Authority ............ 3.600% 06/25/98 NR/A1+ 1,500,000
3,000,000 New York State, Dormitory
Authority, Columbia........... 3.350% 05/13/98 P1/A1+ 3,000,000
1,000,000 New York State, Dormitory
Authority, Sloan ............. 3.350% 06/05/98 VMIG1/A1+ 1,000,000
1,000,000 New York State, Dormitory
Authority, Sloan ............. 3.250% 05/14/98 VMIG1/A1+ 1,000,000
2,000,000 New York State, Dormitory
Authority, Sloan Tax Exempt .. 3.300% 05/13/98 VMIG1/A1+ 2,000,000
2,000,000 New York State, Dormitory
Authority, Sloan Tax Exempt .. 3.450% 05/12/98 VMIG1/A1+ 2,000,000
2,200,000 New York State, Environmental,
General Obligation ........... 3.500% 05/05/98 P1/A1+ 2,200,000
2,900,000 New York State, Environmental,
General Obligation ........... 3.300% 06/12/98 P1/A1+ 2,900,000
500,000 New York State, Environmental,
General Obligation ........... 3.550% 05/22/98 P1/A1+ 500,000
1,000,000 New York State, Environmental,
General Obligation ........... 3.400% 06/01/98 VMIG1/P1 1,000,000
1,000,000 New York State, General
Obligation ................... 3.550% 05/07/98 VMIG1/P1 1,000,000
2,000,000 New York State, General
Obligation ................... 3.600% 05/15/98 VMIG1/P1 2,000,000
2,000,000 New York State, General
Obligation ................... 3.800% 07/08/98 VMIG1/P1 2,000,000
1,000,000 New York, Municipal Assistance
Corp. ........................ 3.550% 05/08/98 P1/A1+ 1,000,000
2,500,000 New York, Municipal Assistance
Corp. ........................ 3.450% 05/08/98 P1/A1+ 2,500,000
1,000,000 New York, Municipal Assistance
Corp. ........................ 3.500% 05/11/98 P1/A1+ 1,000,000
500,000 New York State, Power Authority,
Revenue & General Purpose .... 3.400% 05/20/98 P1/A1 500,000
2,000,000 Westchester County Health ...... 3.500% 05/22/98 P1/A1+ 2,000,000
------------
TOTAL NEW YORK TAX FREE COMMERCIAL PAPER ................................. 34,015,000
------------
VARIABLE RATE DEMAND NOTES -- 34.3%(a)(c)
2,000,000 Babylon, New York, Industrial
Development Authority LOC
Union Bank of Switzerland .... 3.900% 01/01/19 VMIG1/A1 2,000,000
3,000,000 Babylon, New York, Industrial
Development Authority LOC
Union Bank of Switzerland .... 4.200% 12/01/24 NR/A1+ 3,000,000
2,000,000 Babylon, New York, Industrial
Development Authority LOC
Union Bank of Switzerland .... 4.200% 12/01/24 NR/A1+ 2,000,000
100,000 Dutchess County, New York,
Industrial Development Agency,
Laerdal Medical Corp. Project,
Revenue, LOC - Bank of New
York, AMT .................... 3.800% 10/01/15 NR/NR 100,000
1,000,000 Hempstead Town, New York,
General Obligation, Series D,
BANS ......................... 4.100% 09/15/15 Aa1/NR 1,000,000
1,382,100 New York City, Housing
Development LOC Citibank ..... 3.950% 02/01/07 NR/A1+ 1,382,100
617,900 New York City, Housing
Development LOC Citibank ..... 3.950% 02/01/07 NR/A1+ 617,900
2,000,000 New York City, Health Hospital
Corp., LOC - Canadian Imperial
Bank ......................... 3.850% 02/15/26 VMIG1/A1+ 2,000,000
900,000 New York City, Health Hospital
Corp., LOC - Toronto Dominion
Bank ......................... 3.850% 02/15/26 VMIG1/A1+ 900,000
3,000,000 New York City, Industrial
Development Authority, Korean
Airlines Co., LOC - Bankers
Trust ........................ 3.950% 11/01/24 VMIG1/A1 3,000,000
1,800,000 New York City, TR Cultural
Revenue, Museum of
Broadcasting, LOC -
Kredietbank N.V .............. 3.950% 05/01/14 VMIG1/A1+ 1,800,000
1,000,000 New York City, TR Cultural
Revenue, Museum of
Broadcasting, LOC -
Kredietbank N.V .............. 3.950% 05/01/14 VMIG1/A1+ 1,000,000
1,000,000 New York State, Energy Research
& Development Authority ...... 4.500% 11/01/20 P1/NR 1,000,000
2,000,000 New York State, Energy Research
& Development Authority ...... 4.500% 11/01/20 P1/NR 2,000,000
1,000,000 New York State, Energy Research
& Development Authority,
Brooklyn Union ............... 3.950% 12/01/20 VMIG1/A1+ 1,000,000
1,000,000 New York State, Energy Research
& Development Authority,
Brooklyn Union ............... 3.950% 12/01/20 P1/NR 1,000,000
2,000,000 New York State, General
Obligation ................... 4.000% 02/15/16 VMIG1/A1+ 2,000,000
3,000,000 New York State, Industrial
Development Agency, Civic Fac
Revenue, Cold Spring, HBR Lab
project ...................... 4.100% 07/01/19 VMIG1/A1+ 3,000,000
900,000 New York State, Industrial
Development Agency, Civic Fac
Revenue, Cold Spring, HBR Lab
project ...................... 4.100% 07/01/19 VMIG1/A1+ 900,000
1,700,000 New York State, Local Government
Assistance Corp. ............. 3.900% 04/01/25 VMIG1/A1+ 1,700,000
300,000 New York State, Local Government
Assistance Corp. ............. 3.900% 04/01/25 VMIG1/A1+ 300,000
2,000,000 New York State, Power Authority,
Revenue & General Purpose .... 3.600% 03/01/16 VMIG1/A1+ 2,000,000
200,000 Port Authority of New York & New
Jersey Special Obligation .... 4.150% 08/01/24 VMIG1/A1+ 200,000
100,000 Port Authority of New York & New
Jersey Special Obligation .... 4.150% 08/01/24 VMIG1/A1+ 100,000
1,000,000 Port Authority of New York & New
Jersey Special Obligation .... 4.300% 08/01/28 VMIG1/A1+ 1,000,000
800,000 Port Authority of New York & New
Jersey Special Obligation .... 4.300% 08/01/28 VMIG1/A1+ 800,000
1,000,000 Port Authority of New York & New
Jersey Special Obligation .... 4.300% 08/01/28 VMIG1/A1+ 1,000,000
1,000,000 Suffolk County, Industrial
Development Agency YWHA, LOC -
European American Bank ....... 4.300% 12/01/12 VMIG1/NR 1,000,000
1,500,000 Suffolk County, New York, Water
Authority .................... 4.000% 02/08/01 VMIG1/NR 1,500,000
1,000,000 Suffolk County, New York, Water
Authority .................... 4.000% 02/08/01 VMIG1/NR 1,000,000
600,000 Suffolk County, New York, Water
Authority .................... 4.000% 02/08/01 VMIG1/NR 600,000
------------
TOTAL VARIABLE RATE DEMAND NOTES ......................................... 40,900,000
------------
TOTAL NEW YORK TAX FREE BONDS, NOTES AND
COMMERCIAL PAPER ....................................................... 115,949,759
------------
<PAGE>
<CAPTION>
VALUE
SHARES DESCRIPTION MATURITY (NOTE 2)
------ ----------- -------- --------
<S> <C> <C> <C>
OTHER MUNICIPAL -- 1.9%(a)
MUTUAL FUNDS
2,285,000 Provident NY Tax Free Money Market Fund ........................... $ 2,285,000
------------
TOTAL INVESTMENTS AT AMORTIZED COST}D{ ................................................ 118,234,759
CASH .................................................................................. 888
INTEREST RECEIVABLE ................................................................... 1,180,489
DEFERRED ORGANIZATION EXPENSE ......................................................... 9,911
DIVIDENDS PAYABLE ..................................................................... (339,652)
SHAREHOLDER SERVICE FEES PAYABLE ...................................................... (24,524)
INVESTMENT ADVISORY FEES PAYABLE ...................................................... (10,588)
REGISTRATION AND FILING FEES PAYABLE .................................................. (7,706)
PROFESSIONAL FEES PAYABLE ............................................................. (25,049)
ADMINISTRATION FEE PAYABLE ............................................................ (20,025)
OTHER LIABILITIES IN EXCESS OF ASSETS ................................................. (13,789)
------------
NET ASSETS ............................................................................ $118,984,714
============
Represented by:
Paid-in capital ..................................................................... $118,996,319
Distributions in excess of net investment income .................................... (208)
Accumulated net realized losses on investments ...................................... (11,397)
------------
NET ASSETS ............................................................................ $118,984,714
============
NET ASSETS:
Investor shares -- Applicable to 101,385,481 shares of beneficial interest outstanding
(unlimited number of shares authorized) ............................................. $101,375,451
Class B Shares -- Applicable to 105,074 shares of beneficial interest outstanding
(unlimited number of shares authorized) ............................................. 105,074
Adviser Shares -- Applicable to 17,505,765 shares of beneficial interest outstanding
(unlimited number of shares authorized) ............................................. 17,504,189
------------
Net Assets ............................................................................ $118,984,714
============
Net Asset Value, Offering Price and Redemption Price Per Share
(Class A Shares, Class B Shares and Adviser Shares) ................................. $1.00
=====
(a) Percentages indicated are based on net assets.
(b) The Moody's or Standard & Poor's rating indicated are believed to be the most recent ratings available
at April 30, 1998 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, 1998. These ratings are unaudited.
(c) Represents a variable rate demand note. Interest resets daily or weekly. Interest rate disclosed
represents current rate at April 30, 1998.
(d) For Federal income tax purposes, the cost of securities owned at April 30, 1998 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
</TABLE>
<PAGE>
REPUBLIC NEW YORK TAX-FREE MONEY MARKET FUND
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED APRIL 30, 1998
INVESTMENT INCOME:
Interest income .................................................. $2,357,003
EXPENSES:
Shareholder service fees -- Investor shares ......... $142,059
Advisory fees ....................................... 99,252
Administrative service fees ......................... 66,071
Custodian fees and expenses ......................... 14,903
Fund accounting fees ................................ 22,319
Registration fees ................................... 7,928
Transfer agent fees ................................. 14,836
Legal Fees .......................................... 12,565
Audit fees .......................................... 8,102
Reports to shareholders ............................. 4,215
Insurance expense ................................... 1,653
Trustees' fees ...................................... 1,100
Other expenses ...................................... 17,395
--------
Total expenses ........................................ 412,398
Voluntary fee reductions and reimbursement of expenses (53,223)
--------
Total net expenses ......................................... 359,175
----------
NET INVESTMENT INCOME ............................................ 1,997,828
----------
REALIZED LOSSES ON INVESTMENTS:
Net realized losses on investment transactions ................. (1,486)
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............. $1,996,342
==========
See notes to financial statements
<PAGE>
REPUBLIC NEW YORK TAX-FREE MONEY MARKET FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
PERIOD
ENDED FOR THE
APRIL 30, 1998 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1997
----------------- --------------------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income ................................. $ 1,997,828 $ 2,941,757
Net realized losses on investment transactions ........ (1,486) (9,911)
------------ ------------
Change in net assets resulting from operations ........ 1,996,342 2,931,846
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A Shares ...................................... (1,702,375) (2,637,696)
Class B Shares (a) .................................. (15) --
Adviser Shares (b) .................................. (295,452) (304,270)
------------ ------------
Change in net assets from shareholder distributions ... (1,997,827) (2,941,966)
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares ........................ 326,546,067 456,818,399
Dividends reinvested ................................ 1,566,298 2,449,643
Payments for shares redeemed ........................ (341,124,484) (409,567,308)
------------ ------------
Change in net assets from capital share transactions .. (13,012,119) 49,700,734
------------ ------------
CHANGE IN NET ASSETS .................................. (13,013,604) 49,690,614
NET ASSETS:
Beginning of period ................................. 131,998,318 82,307,704
------------ ------------
End of period (including distributions in excess of
income of $208 and $209, respectively) ............ $118,984,714 $131,998,318
============ ============
(a) The Fund commenced offering Class B Shares on April 29, 1998.
(b) The Fund commenced offering Adviser Shares on July 1, 1996.
See notes to financial statements
</TABLE>
<PAGE>
REPUBLIC NEW YORK TAX-FREE MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 1998 (UNAUDITED)
1. ORGANIZATION: Republic New York Tax-Free Money Market Fund (the "Fund") is
a separate series of Republic Funds (the "Trust"), a Massachusetts
business trust organized on April 22, 1987, which currently consists of
seven funds, each of which has different 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 diversified
management investment company.
The Fund is authorized to issue three classes of shares, Class A
Shares (formerly designated Class C Shares) ("Investor Shares"), ("Class B
Shares") and Class Y Shares ("Adviser Shares"). 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 and transfer agent of 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:
Pursuant to Rule 2a-7 of the Investment Company Act of 1940, all
securities of the Fund are valued at amortized cost, which approximates
market value, in order to maintain a constant net asset value of $1.00 per
share. 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 amortized cost of the security lot sold with
the net sales proceeds.
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 it distributes substantially all of its net
investment income and net realized gains to their shareholders.
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 return of capital distributions.
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.
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 period ended April 30, 1998, the
advisory fee was $99,252 of which $53,223 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 Fund. 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 period ended April 30, 1998, the
administrative service fees were $66,071.
CUSTODY:
The custody function was transferred to Republic National Bank of New York
on December 1, 1997.
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
$45,000.
TRANSFER AGENT:
Pursuant to a Transfer Agent Agreement, Investors Bank & Trust Company
("IBT") serves as a transfer agent for the Fund's Investor Shares and
Adviser Shares. BISYS serves as a transfer agent for the Fund's Class B
Shares. For its services to the Fund, IBT receives fees payable monthly
equal on an annual basis to $30,000 and BISYS receives fees payable
monthly equal on an annual basis to $5,000.
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 the Fund's Investor Shares and Class B Shares at a rate
not to exceed 0.25% of the average daily net assets of the Investor Shares
and Class B Shares. During the period, no distribution fees were incurred
or paid by the Fund.
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. The aggregate fees paid to
the Distributor pursuant to the Plan and to shareholder servicing agents
pursuant to the Administrative Services Plan historically have not
exceeded 0.25% annually of the Fund's average daily net assets of Class A
Shares and 1.00% of the Fund's average daily net assets of Class B Shares.
During the period ended April 30, 1998, shareholder servicing fees were
$142,059.
WAIVER OF EXPENSES:
The Manager voluntarily agreed to waive a portion of its fees. For the
period ended April 30, 1998, expenses of the Fund were voluntarily limited
to 0.65%, 1.40% and 0.40 % of the Fund's average daily net assets
attributable to the Class A Shares, Class B Shares and Adviser Shares
respectively. During the period ended April 30, 1998, the combined amount
of fees waived for Class A Shares, Class B Shares and Adviser Shares were
$45,780, $2 and $7,441, respectively.
TRUSTEES' FEES:
The fees paid and the amount of out-of-pocket expenses reimbursed to the
Trustees amounted to $1,100 for the period ended April 30, 1998.
4. CAPITAL SHARE TRANSACTIONS:
Transactions in shares of beneficial interest for the Fund were as
follows:
<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES ADVISER SHARES
PERIOD ENDED PERIOD ENDED PERIOD ENDED
APRIL 30, 1998 APRIL 30, 1998(a) APRIL 30, 1998
-------------- ----------------- --------------
<S> <C> <C> <C>
Shares issued ............. 205,808,505 105,074 120,632,489
Shares reinvested ......... 1,509,376 0 56,922
Shares redeemed ........... (229,265,315) 0 (111,859,169)
------------ ------- ------------
Net increase .......... (21,947,434) 105,074 8,830,242
============ ======= ============
<CAPTION>
CLASS A SHARES ADVISER SHARES
YEAR ENDED YEAR ENDED
OCTOBER 31, 1997 OCTOBER 31, 1997(b)
---------------- -------------------
<S> <C> <C>
Shares issued ............. 285,607,214 171,211,185
Shares reinvested ......... 2,398,796 50,847
Shares redeemed ........... (243,267,094) (166,300,214)
------------ ------------
Net increase .......... 44,738,916 4,961,818
============ ============
(a) For the period from April 29,1998 (date of initial offering) to April 30, 1998.
(b) For the period from July 1,1996 (date of initial offering) to October 31, 1996.
</TABLE>
5. 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 A SHARES
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE NOVEMBER 17,
PERIOD 1994
ENDED FOR THE FOR THE (COMMENCEMENT
APRIL 30, YEAR ENDED YEAR ENDED OF OFFERING) TO
1998 OCTOBER 31, OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1997 1996 1995
----------- ----------- ----------- --------------
<S> <C> <C> <C> <C>
NET ASSET VALUE PER SHARE,
BEGINNING OF PERIOD ....... $1.00 $1.00 $1.00 $1.00
----- ----- ----- -----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ..... 0.015 0.030 0.030 0.033
Net realized losses on
investment transactions . 0.000 0.000* -- --
----- ----- ----- -----
Total income from investment
operations ................ 0.015 0.030 0.030 0.033
----- ----- ----- -----
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends to shareholders
from net investment
income .................. (0.015) (0.030) (0.030) (0.033)
----- ----- ----- -----
Total dividends and
distributions ............. (0.015) (0.030) (0.030) (0.033)
----- ----- ----- -----
NET ASSET VALUE PER SHARE,
END OF PERIOD ............. $1.00 $1.00 $1.00 $1.00
===== ===== ===== =====
Total return ................ 1.49%(c) 3.01% 3.04% 3.31%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of
period (000's) .......... $101,375 $123,324 $78,594 $52,652
Ratio of expenses to
average net assets ...... 0.57%(b) 0.60% 0.54% 0.41%(b)
Ratio of net investment
income to average net
assets .................. 2.98%(b) 2.98% 2.97% 3.45%(b)
Ratio of expenses to
average net assets (a) .. 0.65%(b) 0.72% 0.63% 0.65%(b)
Ratio of net investment
income to average net
assets (a) .............. 2.90%(b) 2.86% 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.
* Less than $0.01 per share.
See notes to financial statements.
</TABLE>
<PAGE>
REPUBLIC NEW YORK TAX-FREE MONEY MARKET FUND
FINANCIAL HIGHLIGHTS - CLASS B SHARES
FOR THE
PERIOD
APRIL 29, 1998
(COMMENCEMENT OF
OFFERING) TO
APRIL 30, 1998
(UNAUDITED)
----------------
NET ASSET VALUE PER SHARE, BEGINNING OF PERIOD ............ $1.00
-----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................. 0.000*
Net realized losses on investment transactions ........ 0.000
-----
Total income from investment operations ................... 0.000
-----
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends to shareholders from net investment income .. 0.000*
-----
Total dividends and distributions ......................... 0.000
-----
NET ASSET VALUE PER SHARE, END OF PERIOD .................. $1.00
=====
Total return .............................................. 0.01%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of period (000's) .................. $ 105
Ratio of expenses to average net assets ............... 1.32%(b)
Ratio of net investment income to average net assets .. 2.23%(b)
Ratio of expenses to average net assets (a) ........... 1.40%(b)
Ratio of net investment income to average net assets (a) 2.15%(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.
The total return is calculated excluding the contingent deferred sales
charge that applies to redemptions of Class B shares.
* Less than $0.001 per share.
See notes to financial statements.
<PAGE>
REPUBLIC NEW YORK TAX-FREE MONEY MARKET FUND
FINANCIAL HIGHLIGHTS - ADVISOR SHARES
<TABLE>
<CAPTION>
FOR THE FOR THE PERIOD
PERIOD FOR THE JULY 1, 1996
ENDED YEAR (COMMENCEMENT OF
APRIL 30 ENDED OFFERING) TO
1998 OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1997 1996
---------- ----------- --------------
<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 ....................... 0.016 0.032 0.010
Net realized losses on investment
transactions .............................. 0.000 0.000* --
----- ----- -----
Total income from investment operations ....... 0.016 0.032 0.010
----- ----- -----
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends to shareholders from net investment
income .................................... (0.016) (0.032) (0.010)
----- ----- -----
Total dividends and distributions ............. (0.016) (0.032) (0.010)
----- ----- -----
NET ASSET VALUE PER SHARE, END OF PERIOD ..... $1.00 $1.00 $1.00
===== ===== =====
Total return .................................. 1.61%(c) 3.27% 1.03%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets, at end of period (000's) ........ $17,504 $8,674 $3,714
Ratio of expenses to average net assets ..... 0.32%(b) 0.35% 0.35%(b)
Ratio of net investment income to average net
assets .................................... 3.23%(b) 3.23% 3.12%(b)
Ratio of expenses to average net assets (a) . 0.40%(b) 0.47% 0.45%(b)
Ratio of net investment income to average net
assets (a) ................................ 3.15%(b) 3.13% 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.
* Less than $0.001 per share.
See notes to financial statements.
</TABLE>
<PAGE>
- ----------------
REPUBLIC
NEW YORK TAX-FREE
MONEY MARKET FUND
INVESTMENT ADVISER AND CUSTODIAN
Republic National Bank of New York
452 Fifth Avenue
New York, NY 10018
ADMINISTRATOR, DISTRIBUTOR, SPONSOR
AND TRANSFER AGENT
BISYS Fund Services, Inc.
3435 Stelzer Road
Columbus, OH 43219
TRANSFER AGENT
Investors Bank & Trust Company
200 Clarendon Street
16th Floor
Boston, MA 02116
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
99 High Street
Boston, MA 02110
LEGAL COUNSEL
Dechert Price & Rhoads
1775 Eye Street, N.W.
Washington, D.C. 20006
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
200 Clarendon Street
16th Floor
Boston, MA 02116
