To the Shareholders and
Audit Committee of the
HSBC Investor Funds (formerly Republic Funds):
In planning and performing our audit of the financial statements
of the HSBC Investor Funds - HSBC Investor Money Market Fund, HSBC
Investor U.S. Government Money Market Fund, HSBC Investor New York
Tax-Free Money Market Fund, HSBC Investor New York Tax-Free Bond
Fund, HSBC Investor Equity Fund, HSBC Investor Mid-Cap Fund, HSBC
Investor Bond Fund, HSBC Investor Overseas Equity Fund, and HSBC
Investor Opportunity Fund, for the periods ended October 31, 2000,
we considered its internal control, including control activities
for safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the
financial statements and to comply with the requirements of
Form N-SAR, not to provide assurance on internal control.
The management of the HSBC Investor Funds is responsible for
establishing and maintaining internal control. In fulfilling
this responsibility, estimates and judgments by management
are required to assess the expected benefits and related costs
of controls. Generally, controls that are relevant to an
audit pertain to the entity's objective of preparing financial
statements for external purposes that are fairly presented in
conformity with accounting principles generally accepted in the
United States of America. Those controls include the
safeguarding of assets against unauthorized acquisition, use,
or disposition.
Because of inherent limitations in any internal control, errors
or fraud may occur and not be detected. Also, projection of any
evaluation of internal control to future periods is subject to
the risk that it may become inadequate because of changes in
conditions or that the effectiveness of the design and operation
may deteriorate.
Our consideration of internal control would not necessarily
disclose all matters in internal control that might be material
weaknesses under standards established by the American Institute
of Certified Public Accountants. A material weakness is a
condition in which the design or operation of one or more
internal control components does not reduce to a relatively
low level the risk that misstatements caused by error or
fraud in amounts that would be material in relation to the
financial statements being audited may occur and not be
detected within a timely period by employees in the normal
course of performing their assigned functions. However,
we noted no matters involving internal control and its
operation, including controls for safeguarding securities,
that we consider to be material weaknesses as defined above
as of October 31, 2000.
This report is intended solely for the information and use of
management, the Audit Committee of the HSBC Investor Funds
and the Securities and Exchange Commission and is not intended
to be and should not be used by anyone other than these
specified parties.
Columbus, Ohio
December 8, 2000
