<PAGE>
REPUBLIC FUNDS
ANNUAL REPORT - OCTOBER 31, 1999
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
President's Message......................................... 1
Commentary from the Investment Manager...................... 2
REPUBLIC FUNDS
REPUBLIC NEW YORK TAX-FREE BOND FUND AND REPUBLIC EQUITY
FUND
Schedules of Portfolio Investments.......................... 30
Statements of Assets and Liabilities........................ 38
Statements of Operations.................................... 40
Statements of Changes in Net Assets......................... 41
REPUBLIC BOND FUND, REPUBLIC OVERSEAS EQUITY FUND AND
REPUBLIC OPPORTUNITY FUND
Statements of Assets and Liabilities........................ 43
Statements of Operations.................................... 45
Statements of Changes in Net Assets......................... 46
Notes to Financial Statements............................... 49
Financial Highlights........................................ 61
Independent Auditors' Report................................ 78
REPUBLIC FIXED INCOME PORTFOLIO, REPUBLIC INTERNATIONAL
EQUITY PORTFOLIO, REPUBLIC SMALL CAP EQUITY PORTFOLIO
Schedules of Portfolio Investments.......................... 79
Statements of Assets and Liabilities........................ 107
Statements of Operations.................................... 108
Statements of Changes in Net Assets......................... 109
Notes to Financial Statements............................... 112
Financial Highlights........................................ 118
Independent Auditors' Report................................ 121
Additional Information...................................... 122
</TABLE>
<PAGE>
PRESIDENT'S MESSAGE
December 1999
DEAR SHAREHOLDER:
We are very pleased to present you with the annual reports for certain
funds of the Republic Funds for the year ended October 31, 1999.
The accompanying report contains each Fund's audited financial statements
and a detailed discussion of its performance during the 12 months ended October
31, 1999. Also, you will find a commentary from the Investment Manager, Republic
National Bank of New York, that includes an economic outlook for the coming
months.
Finally, we thank you for your continued confidence in us. We look forward
to providing you with investment management services to meet your needs now and
in the years ahead.
Sincerely,
Walter B. Grimm
Walter B. Grimm
President
1
<PAGE>
COMMENTARY FROM THE INVESTMENT MANAGER
REPUBLIC NATIONAL BANK OF NEW YORK
U.S. ECONOMIC REVIEW
The driving forces behind the U.S. economy, including rising real wage
growth, robust job creation, the continued strong pace of capital investment by
companies and stable inflation all remained intact throughout the year. Indeed,
since the 1998 global correction in the financial markets, real Gross Domestic
Product growth in the United States has consistently exceeded consensus
forecasts. Such persistent strength in domestic real growth finally resulted in
the Federal Reserve Board ('the Fed') increasing the target rate for federal
funds by 25 basis points (0.25%) in late June. This reversal in Fed policy
represented a partial rollback of the 75 basis point (0.75%) easing instituted
in the second half of 1998, implicitly signaling that the global markets had
effectively recovered from the shock of the Russian default and the near
collapse of Long Term Capital Management. Nonetheless, domestic real growth
stubbornly remained above the Fed's non-inflationary target of 3% in the months
that followed, leading to additional increases in short-term rates in August and
November. Growth now appears to be slowing, largely attributable to higher
long-term interest rates that have increased more than 100 basis points since
the fiscal year began on November 1, 1998. Now that higher interest rates appear
to be dampening domestic demand, the prospect of increased exports triggered by
a gradual strengthening in the global economy could offset this weakness.
GLOBAL ECONOMIC REVIEW
In Japan, the government's efforts to recapitalize the banking sector and
stimulate the economy began to bear significant fruit in March, pulling the
economy back from the threat of a steep spiral of debt deflation. Although the
painful restructuring process of switching the corporate sector's emphasis from
market share maximization to maximizing profits may continue to be a drag on
domestic demand, the country's leading economic indicators have rebounded
strongly. Therefore, we expect gradual economic progress in the months ahead.
Emerging market economies stabilized early in the period, helped by
continued strength in the U.S. economy, higher oil prices (which benefited
oil-producing countries), and quicker-than-expected improvement in Brazil's
financial outlook following the January currency devaluation. Despite fragile
conditions that still exist in parts of Latin America, the recovery in Asian
emerging markets is the economic highlight of this fiscal year.
The United Kingdom achieved a soft landing and throughout Europe, consumer
spending is growing along with business confidence and leading indicators are
pointing higher. For most of the fiscal year, the policy environment in the
European region was, and remains, stimulative with low short-term interest
rates, stable inflation, and a weak Euro currency.
2
<PAGE>
MARKET ENVIRONMENT
The U.S. stock market shook off its third quarter 1998 plunge and posted
impressive advances during the first three months of the Funds' fiscal year
ended October 31, 1999. Large cap growth led the way, with the Russell 1000
Growth Index(1) rising 24.20%, followed by small cap stocks up 13.24% and large
cap value up 9.09% for the period ended January 31, 1999, as represented by the
Russell 2000 Index(2) and the Russell 1000 Value Index(3). The first quarter of
1999 will most likely be remembered as the period during which the Dow Jones
Industrial Average surpassed the 10,000 level for the first time (March 29).
Indeed, the attention stemming from this milestone overshadowed continued
volatility and an increasingly narrow market advance within the large
capitalization sector. The large cap value and small cap sectors then posted
strong April returns of 9.34% and 8.96%, as indicated by the Russell 1000 Value
Index and the Russell 2000 Index, leading the second calendar quarter of 1999 to
be the first instance of value outperforming growth and small cap outperforming
large cap since the fourth and third quarters of 1997, respectively. However,
large cap growth resumed its dominance in June. The Funds' fiscal year therefore
ended with the Russell 1000 Growth performing over twice as well as the Russell
1000 Value (34.25% versus 16.53%) and the Russell 2000 returning 14.87%.
Consequently, smaller capitalization issues continue to sell at lower relative
valuations than any time in the past 40 years.
World equity markets on balance managed to weather such significant events
as the commencement of the new Euro currency, the devaluation of the Brazilian
Real, and multiple increases in long-term interest rates in the United States
without experiencing major corrections. For the first half of the fiscal year,
equity returns in the United States (+22.53% as measured by the Russell 1000
Index(4)) were almost one and a half times the results for the Morgan Stanley
Capital International Europe, Australia and Far East ('MSCI EAFE') Index(5)
(+15.44%). This gap narrowed over the next six months to 221 basis points (with
the Russell 1000 Index returning 25.58% versus 23.37% for the MSCI EAFE Index)
as growth in the United States moderated somewhat and economic activity in
Europe picked up. Emerging markets continued to rebound, reflecting more stable
economic conditions, with the International Finance Corporation Investable
(1) The Russell 1000 Growth Index contains those securities in the Russell 1000
Index with a greater- than-average growth orientation. Companies in this
index tend to exhibit higher price-to-book and price-earnings ratios, lower
dividend yields and higher forecasted growth rates.
(2) The Russell 2000 Index is an unmanaged index generally representative of
small-capitalization stocks.
(3) The Russell 1000 Value Index is comprised of those securities in the Russell
1000 Index with a less-than-average growth orientation. Companies in this
index generally have low price-to-book and price-earnings ratios, higher
dividend yields and lower forecasted growth rates.
(4) The Russell 1000 Index consists of the largest 1000 companies in the Russell
3000 Index. This index represents the universe of large capitalization
stocks from which most active money managers typically select.
(5) The Morgan Stanley Capital International Europe, Australia and Far East
Index (MSCI EAFE) is unmanaged and is generally representative of the
performance of stock markets in those regions.
3
<PAGE>
('IFCI') Emerging Markets Composite Index(6) up (+33.31%) approximately one and
a half times U.S. equities for the first half of the fiscal year, expanding to a
68% premium by the end of the period (with the IFCI Emerging Markets Composite
Index up 43.08%). In addition, emerging markets posted a return multiple of over
1.8 versus MSCI EAFE.
After rebounding from a record low reached in early October 1998, yields on
30-year U.S. Treasury debt fell modestly during the first quarter of the fiscal
year ended October 31, 1999 while yields on all other maturities rose somewhat.
Yields all across the maturity spectrum rose sharply during February. This
one-month increase, which ranged from approximately 21 basis points for 3 month
Treasuries to 67 basis points for the 5 year notes, was occasioned by several
factors. Principal among these were the further unwinding of the
'flight-to-quality' mentality that overwhelmed the market for U.S. government
issues as global equity markets collapsed in the third quarter of 1998, signs
that the U.S. economy was slowing less than previously predicted, and the
growing perception that the Fed may have eased too aggressively in response to
stock market weakness in the second half of 1998. Yields then rose steadily
across virtually all maturities during the May-August period as the Fed hiked
the federal funds rate by 25 basis points in both June and August. Bonds rallied
in September but gave back all their gains and more during the final month of
the fiscal year. For the twelve-month period, Treasury yields rose from 76 basis
points for 3 month Treasuries to 170 basis points for the 5 year notes, with the
30 year increasing by 101 basis points.
(6) IFCI Emerging Markets Composite Index represents the IFC Investable Regional
Total Return Composite. The term Investable indicates that the stocks and
the weights in the IFCI index represent the amount that the foreign
institutional investors might buy by virtue of the foreign institutional
restrictions (either at the national level or by the individual company's
corporate statute) plus factoring in minimum market capitalization and
liquidity screens. This particular index also measures the impact of
reinvestment of gross cash dividends on the price index. All IFC indices
are market capitalization weighted, with period data linked by the chained
Paasche method and reflect adjusted share price changes. All regional
indices are in U.S. dollar terms.
Investors cannot invest directly in an index.
THE PERFORMANCE DATA QUOTED REPRESENTS PART 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 THEIR ORIGINAL COST.
4
<PAGE>
PORTFOLIO REVIEW
REPUBLIC NEW YORK TAX-FREE BOND FUND'D'
The Republic New York Tax-Free Bond Fund (the 'Fund') returned (without
maximum sales charge) - 3.62% for Class A Shares(1) for the fiscal year ended
October 31, 1999, compared to - 4.47% for the Lipper N.Y. Municipal Bond Fund
Index.(2) As of October 31, 1999, the Fund's duration (interest rate
sensitivity) was 6.16 years and the Fund's annualized 30-day SEC yield was
4.96%.
Throughout this twelve-month period, the fixed income markets retreated
from the highs obtained in the fall of 1998. Continued economic growth in
employment, housing, retail and auto sales sent yields higher in each
consecutive quarter. Heavier issuance and weak money flows into tax-free bond
mutual funds, resulting from reduced demand by property and casualty insurance
companies, were contributing factors. Nonetheless, individual investors
continued their participation in the municipal market, where higher nominal
yields and volatile equity markets created good demand from high tax bracket
investors looking to shelter recent gains in their portfolios, particularly over
the last few months. The Fund utilized the same investment strategy throughout
the year, focusing on those areas of the yield curve that provided the best
risk/return profile (generally the 10-15 year sector of the curve) while
improving credit quality and maintaining a cautious duration posture. The Fund
will continue to focus on the intermediate maturities sector because it is the
most undervalued and to maintain the duration of the fund at approximately one
year shorter than the benchmark. This reflects Fund management's belief that the
Fed will remain in a tightening mode if the economy continues to exhibit strong
growth.
(1) Maximum sales charge for Class A Shares is 2.75% of the public offering
price. Class A Shares bear ongoing distribution fees and shareholder
services fees of 0.25% of the daily net assets of Class A Shares. The
Class A expenses are reflected in the performance data. The total return
set forth reflects the waiver and reimbursement of a portion of the Fund's
fees. Without waivers of fees, total return for the period would have been
lower. Class A Shares commenced operations on May 1, 1995.
(2) Lipper N.Y. Municipal Bond Fund Index is a managed index which consists of
funds that are generally representative of securities exempt from regular
Federal, New York State and New York City personal income taxes.
'D' A fund's income may be subject to certain state and local taxes and,
depending on your tax status, the federal alternative minimum tax.
THE PERFORMANCE DATE 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 THEIR ORIGINAL COST.
Portfolio composition is subject to change.
Investors cannot invest directly in an index.
5
<PAGE>
REPUBLIC N.Y. TAX-FREE BOND FUND (1),(2),(3)
<TABLE>
<CAPTION>
FISCAL
YEAR
ENDED INCEPTION TO
AVERAGE ANNUAL TOTAL RETURN 10/31/99 10/31/99
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
% return without deducting maximum Class A (3.62%) 5.11%
sales/redemption charge Class B (4.30%) (0.11%)
Class C (4.10%) (4.10%)
- ----------------------------------------------------------------------------------
% return after deducting maximum Class A (6.28%) 4.47%
sales/redemption charge Class B (7.06%) (2.06%)
Class C (5.03%) (5.03%)
- ----------------------------------------------------------------------------------
Value of $10,000 investment without Class A -- $12,515
deducting maximum sales/redemption Class B -- 9,980
charge Class C -- 9,590
</TABLE>
(1) Maximum sales charge for Class A Shares is 2.75% of the public offering
price. Class A Shares bear ongoing distribution fees and shareholder
services fees of 0.25% of the daily net assets of Class A Shares. The
Class A expenses are reflected in the performance data. The total return
set forth reflects the waiver and reimbursement of a portion of the Fund's
fees. Without waivers of fees, total return for the period would have been
lower. Class A Shares commenced operations on May 1, 1995.
(2) Maximum contingent deferred sales charge for Class B Shares is 3% and is
reduced to 0% after three years. Class B Shares bear ongoing distribution
fees and shareholder services fees of 1% of the daily net assets of Class B
Shares. These Class B expenses are reflected in the performance data.
Class B Shares commenced operations on January 6, 1998.
(3) Maximum contingent deferred sales charge for Class C Shares is 1% and is
reduced to 0% after one year. Class C Shares bear ongoing distribution fees
and shareholder services fees of 1% of the daily net assets of Class C
Shares. These Class C expenses are reflected in the performance data.
Class C Shares commenced operations on November 4, 1998.
THE PERFORMANCE DATE 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 THEIR ORIGINAL COST.
6
<PAGE>
[PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
REPUBLIC N.Y. TAX-FREE BOND FUND LIPPER N.Y. MUNICIPAL BOND
YEAR (CLASS A SHARES) FUND INDEX LEHMAN BROTHERS MUNICIPAL BOND INDEX
---- ---------------- ---------- ------------------------------------
<S> <C> <C> <C>
5/1/95 9,729 10,000 10,000
10/31/95 10,329 10,612 10,676
4/30/96 10,418 10,650 10,795
10/31/96 10,843 11,127 11,284
4/30/97 11,002 11,321 11,512
10/31/97 11,734 12,032 12,245
4/30/98 12,001 12,329 12,584
10/31/98 12,632 12,948 13,227
4/30/99 12,821 13,122 13,458
10/31/99 12,199 12,371 12,992
</TABLE>
Republic N.Y Tax-Free Bond Fund
(Class A Shares)
Lehman Brothers Municipal Bond Index(2)
Lipper N.Y. Municipal Bond
Fund Index(1)
(1) Lipper N.Y. Municipal Bond Fund Index is a managed index which consists of
funds that are generally representative of securities exempt from regular
Federal, New York State and New York City personal income taxes.
(2) The Lehman Brothers Municipal Bond Index is an unmanaged index which is
generally representative of the performance of investment-grade, fixed-rate,
long-term municipal bonds. The index does not reflect the expenses
associated with a mutual fund, such as investment management and fund
accounting fees. The fund's performance reflects the deduction of fees for
these value-added services.
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 THEIR ORIGINAL COST.
Investors cannot invest directly in an index.
7
<PAGE>
[PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
YEAR REPUBLIC N.Y TAX-FREE BOND FUND LIPPER N.Y. MUNICIPAL BOND LEHMAN BROTHERS MUNICIPAL BOND
(CLASS B SHARES) FUND INDEX INDEX
<S> <C>
1/06/98 10,000 10,000 10,000
4/30/98 9,945 10,021 10,070
10/31/98 10,428 10,525 10,585
4/30/99 10,549 10,666 10,769
10/31/99 9,810 10,055 10,397
</TABLE>
Republic N.Y. Tax-Free Bond Fund
(Class B Shares)
Lehman Brothers Municipal Bond Index(2)
Lipper N.Y. Municipal Bond
Fund Index(1)
(1) Lipper N.Y. Municipal Bond Fund Index is a managed index which consists of
funds that are generally representative of securities exempt from regular
Federal, New York State and New York City personal income taxes.
(2) The Lehman Brothers Municipal Bond Index is an unmanaged index which is
generally representative of the performance of investment-grade, fixed-rate,
long-term municipal bonds. The index does not reflect the expenses
associated with a mutual fund, such as investment management and fund
accounting fees. The fund's performance reflects the deduction of fees for
these value- added services.
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 THEIR ORIGINAL COST.
Investors cannot directly invest in an index.
8
<PAGE>
[PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
Republic N.Y. Tax-Free
Bond Fund Lipper N.Y. Municipal Bond Lehman Brothers Municipal
Year (Class C Shares) Fund Index Bond Index
<S> <C> <C> <C>
11/04/98 10,000 10,000 10,000
04/30/99 10,132 10,134 10,175
10/31/99 9,497 9,554 9,822
</TABLE>
Republic N.Y. Tax-Free Bond Fund
(Class C Shares)
Lehman Brothers Municipal Bond Index(2)
Lipper N.Y. Municipal Bond
Fund Index(1)
(1) Lipper N.Y. Municipal Bond Fund Index is a managed index which consists of
funds that are generally representative of securities exempt from regular
Federal, New York State and New York City personal income taxes.
(2) The Lehman Brothers Municipal Bond Index is an unmanaged index which is
generally representative of the performance of investment-grade, fixed-rate,
long-term municipal bonds. The index does not reflect the expenses
associated with a mutual fund, such as investment management and fund
accounting fees. The fund's performance reflects the deduction of fees for
these value- added services.
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 THEIR ORIGINAL COST.
Investors cannot directly invest in an index.
9
<PAGE>
REPUBLIC EQUITY FUND
The Republic Equity Fund (the 'Fund') seeks to provide its shareholders
with long-term growth of capital and income without excessive fluctuations in
market value. The Fund invests at least 65% of its assets in equity securities
of seasoned medium and large-sized companies that are expected to show
above-average price appreciation. To achieve its investment objective, the Fund
employs two sub-advisers, each of which pursues a different style of investing.
Alliance Capital Management, L.P. pursues a growth style of investing,
which focuses on investing in financially secure firms with established
operating histories that are proven leaders in their industry or market sector.
These companies may possess characteristics such as participation in expanding
markets, increasing unit sales volume, growth in revenues and earnings per share
or increasing return on investments.
Brinson Partners, Inc. pursues a value style of investing, which focuses on
investing in equity securities of U.S. companies believed to be undervalued
based upon internal research and proprietary analytical techniques. Investment
decisions are based on fundamental research, internally developed valuation
systems and seasoned judgment.
In total, the Class A Shares(1) of the Republic Equity Fund returned 20.23%
(without deducting maximum sales charge) for the fiscal year ended October 31,
1999. In comparison, the Lipper Growth Fund Index(2) returned 29.32% for the
same period.
The Growth portion of the Fund's portfolio ended the fiscal year 228 basis
points (2.28%), without deducting expenses, ahead of the Russell 1000 Growth
Index(3). This was attributable to favorable stock picks within the financial
services, consumer services, technology and retail sectors.
(1) Maximum sales charge for Class A Shares is 3.5% of the public offering
price. Class A Shares bear ongoing distribution fees and shareholder
services fees of 0.25% of the daily net assets of Class A Shares. These
Class A expenses are reflected in the performance data. Class A Shares
commenced operations on August 1, 1995.
(2) Lipper Growth Fund Index is a managed index which consists of managed funds
that have growth-of-earnings orientation.
(3) The Russell 1000 Growth Index contains those securities in the Russell 1000
Index with a greater- than-average growth orientation. Companies in this
tend to exhibit higher price-to-book and price- earnings ratios, lower
dividend yields and higher forecasted growth rates. The index does not
reflect the expenses associated with a mutual fund, such as investment
management and fund accounting fees. The fund's performance reflects the
deduction of fees for these value-added services.
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 THEIR ORIGINAL COST.
Portfolio composition is subject to change.
Investors cannot invest directly in an index.
10
<PAGE>
The Value portion of the Fund's portfolio ended the fiscal year 930 basis
points (9.30%), without deducting expenses, behind the Russell 1000 Value
Index(4). Throughout the fiscal year, and particularly in January, February and
October of 1999, the highest returns were achieved by a somewhat limited number
of the very largest capitalization stocks within this index. Brinson views these
securities as being the most overvalued in its research universe and has
therefore underweighted them versus the index in its portfolio. Strategic
overweighting in sectors such as aerospace, transportation and managed care also
contributed to the performance shortfall.
REPUBLIC EQUITY FUND(1),(2),(3)
<TABLE>
<CAPTION>
FISCAL
YEAR
ENDED INCEPTION TO
AVERAGE ANNUAL TOTAL RETURN 10/31/99 10/31/99
- ------------------------------------------------------------------------------------
<S> <C> <C> <C>
% return without deducting maximum Class A 20.23% 21.16%
sales/redemption charge Class B 19.32% 18.36%
Class C 19.05% 19.05%
- ------------------------------------------------------------------------------------
% return after deducting maximum Class A 16.06% 20.16%
sales/redemption charge Class B 15.32% 16.92%
Class C 18.05% 18.05%
- ------------------------------------------------------------------------------------
Value of $10,000 investment without Class A -- $22,605
deducting maximum sales/redemption charge Class B -- 13,583
Class C -- 11,905
</TABLE>
(1) Maximum sales charge for Class A Shares is 3.5% of the public offering
price. Class A Shares bear ongoing distribution fees and shareholder
services fees of 0.25% of the daily net assets of Class A Shares. These
Class A expenses are reflected in the performance data. Class A Shares
commenced operations on August 1, 1995.
(2) Maximum contingent deferred sales charge for Class B Shares is 4% and is
reduced to 0% after four years. Class B Shares bear ongoing distribution
fees and shareholder services fees of 1% of the daily net assets of
Class B Shares. The Class B expenses are reflected in the performance data.
Class B Shares commenced operations on January 6, 1998.
(3) Maximum contingent deferred sales charge for Class C Shares is 1% and is
reduced to 0% after one year. Class C Shares bear ongoing distribution fees
and shareholder services fees of 1% of the daily net assets of Class C
Shares. These Class C expenses are reflected in the performance data.
Class C Shares commenced operations on November 4, 1998.
(4) The Russell 1000 Value Index measures the performance of those Russell 1000
securities with lower price to book ratio and lower forecast growth values.
The index does not reflect the expenses associated with a mutual fund, such
as investment management and fund accounting fees. The fund's performance
reflects the deduction of fees for these value-added services.
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 THEIR ORIGINAL COST.
11
<PAGE>
[PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
Republic Equity Fund
Year (Class A Shares) Russell 1000 Index
<S> <C> <C>
8/01/95 9,653 10,000
10/31/95 9,918 10,442
4/30/96 11,168 11,863
10/31/96 11,733 12,836
4/30/97 12,997 14,515
10/31/97 15,126 16,923
4/30/98 18,403 20,634
10/31/98 18,148 20.259
4/30/99 22,016 24,823
10/31/99 21,820 25,441
</TABLE>
Republic Equity Fund
(Class A Shares)
Russell 1000 Index(1)
(1) The Russell 1000 Index consists of the largest 1000 companies in the Russell
3000 Index. This index represents the universe of large capitalization
stocks from which most active money managers typically select. The index
does not reflect the expenses associated with a mutual fund, such as
investment management and fund accounting fees. The Fund's performance
reflects the deduction of fees for these value-added services.
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 THEIR ORIGINAL COST.
Investors cannot invest directly in an index.
12
<PAGE>
[PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
Republic Equity Fund
Year (Class B Shares) Russell 1000 Index
<S> <C> <C>
1/06/98 10,000 10,000
4/30/98 11,579 11,454
10/31/98 11,384 11,246
4/30/99 13,755 13,779
10/31/99 13,283 14,122
</TABLE>
Republic Equity Fund
(Class B Shares)
Russell 1000 Index(1)
(1) The Russell 1000 Index consists of the largest 1000 companies in the Russell
3000 Index. This index represents the universe of large capitalization
stocks from which most active money managers typically select. The index
does not reflect the expenses associated with a mutual fund, such as
investment management and fund accounting fees. The Fund's performance
reflects the deduction of fees for these value-added services.
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 THEIR ORIGINAL COST.
Investors cannot invest directly in an index.
13
<PAGE>
[PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
Republic Equity Fund
Year (Class C Shares) Russell 1000 Index
<S> <C> <C>
11/04/98 10,000 10,000
4/30/99 12,045 12,253
10/31/99 11,805 12,558
</TABLE>
Republic Equity Fund
(Class C Shares)
Russell 1000 Index(1)
(1) The Russell 1000 Index consists of the largest 1000 companies in the Russell
3000 Index. This index represents the universe of large capitalization
stocks from which most active money managers typically select. The index
does not reflect the expenses associated with a mutual fund, such as
investment management and fund accounting fees. The fund's performance
reflects the deduction of fees for these value-added services.
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 THEIR ORIGINAL COST.
Investors cannot invest directly in an index.
14
<PAGE>
REPUBLIC BOND FUND
The Republic Bond Fund seeks to provide investors with above-average total
return, consistent with reasonable risk, through investments in a diversified
portfolio of fixed income securities. The Fund utilizes a two-tier structure,
commonly known as 'master-feeder', in which the Republic Bond Fund (the 'feeder
fund') invests all of its assets in the Republic Fixed Income Portfolio (the
'master fund').
The Republic Fixed Income Portfolio invests primarily in fixed income
securities, such as U.S. Government securities, corporate debt securities and
commercial paper, mortgage-backed and asset-backed securities and similar
securities issued by foreign governments and corporations. The Republic Fixed
Income Portfolio employs Miller Anderson & Sherrerd as sub-adviser.
The portfolio turnover for the Republic Fixed Income Portfolio was 433.25%.
Portfolio turnover measures the amount of trading activity as a percentage of
the total value of the portfolio. The portfolio turnover increased from the
prior year due to trades involving when-issued U.S. agency mortgages. The
largest positions in the Republic Fixed Income Portfolio for the entire fiscal
year were 30-year fixed rate U.S. agency mortgages. The most liquid manner to
hold these mortgages is on a when-issued, or TBA ('To-Be-Announced') basis.
Newly issued mortgages are sold for future settlement, which occurs once a
month. On that settlement date, a holder of TBA mortgages can either take
delivery of actual pools of U.S. agency mortgages (GNMA, FNMA or FHLMC) or trade
the current month's mortgages for mortgages to be issued the following month.
This trade is called a TBA mortgage roll, and technically consists of the
selling of the current month's TBA mortgages and purchasing the next month's TBA
mortgages without actually changing the interest rate on or par value of the
mortgage position. Because of this the portfolio turnover increased
substantially from the prior year.
For the year ended October 31, 1999, the Class A Shares(1) of the Republic
Bond Fund returned 0.68% (without maximum sales charge). This compares favorably
to the Salomon Brothers Broad Investment-Grade Bond Index(2), which returned
0.49%, and the Lipper A Rated Bond Fund Index(3), which returned - 0.27%, for
the same period.
(1) Maximum sales charge for Class A Shares is 2.75% of the public offering
price. Class A Shares bear ongoing distribution fees and shareholder
services fees of 0.25% of the daily net assets of Class A Shares. These
Class A expenses are reflected in the performance data. The total return
set forth reflects the reimbursement of a portion of the Fund's expenses.
Without reimbursement of expenses, total return for the period would have
been lower. Class A Shares commenced operations on August 26, 1996.
(2) Salomon Brothers Broad Investment - Grade Bond Index is an unmanaged market
capitalization weighted index which includes fixed rate Treasury, government
sponsored, corporate and mortgage securities. All issues mature in one year
or more and have at least $50 million face amount outstanding for entry
into the Index. The index does not reflect the expenses associated with a
mutual fund, such as investment management and fund accounting fees. The
fund's performance reflects the deduction of fees for these value-added
services.
(3) Lipper A Rated Bond Fund Index is a managed index which consists of funds
that are representative of corporate debt issues rated 'A' or better or
government issues.
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 THEIR ORIGINAL COST.
Portfolio composition is subject to change.
Investors cannot invest directly in an index.
15
<PAGE>
During the period, the Portfolio benefited from strong performance in the
corporate and mortgage sectors as compared to Treasury securities. The Portfolio
over weighted its investments in mortgages and corporates for the fiscal year
and continues to do so.
REPUBLIC BOND FUND(1),(2),(3)
<TABLE>
<CAPTION>
FISCAL
YEAR
ENDED INCEPTION TO
AVERAGE ANNUAL TOTAL RETURN 10/31/99 10/31/99
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
% return without deducting maximum Class A 0.68% 7.32%
sales/redemption charge Class B (0.01%) 1.55%
Class C 0.11% 0.11%
- ------------------------------------------------------------------------------------
% return after deducting maximum Class A (2.12%) 6.70%
sales/redemption charge Class B (2.80%) 0.55%
Class C (0.82%) (0.82%)
- ------------------------------------------------------------------------------------
Value of $10,000 investment without Class A -- $11,994
deducting maximum sales/redemption Class B -- 10,283
charge Class C -- 10,011
</TABLE>
(1) Maximum sales charge for Class A Shares is 2.75% of the public offering
price. Class A Shares bear ongoing distribution fees and shareholder
services fees of 0.25% of the daily net assets of Class A Shares. These
Class A expenses are reflected in the performance data. The total return
set forth reflects the reimbursement of a portion of the Fund's expenses.
Without reimbursement of expenses, total return for the period would have
been lower. Class A Shares commenced operations on August 26, 1996.
(2) Maximum contingent deferred sales charge for Class B Shares is 3% and is
reduced to 0% after three years. Class B Shares bear ongoing distribution
fees and shareholder services fees of 1% of the daily net assets of Class
B Shares. The Class B expenses are reflected in the performance data.
Class B Shares commenced operations on January 6, 1998.
(3) Maximum contingent deferred sales charge for Class C Shares is 1% and is
reduced to 0% after one year. Class C Shares bear ongoing distribution fees
and shareholder services fees of 1% of the daily net assets of Class C
Shares. These Class C expenses are reflected in the performance data.
Class C Shares commenced operations on November 4, 1998.
THE PERFORMANCE DATA QUOTED REPRESENTS PART 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 THEIR ORIGINAL COST.
16
<PAGE>
[PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
REPUBLIC BOND FUND SALOMON BROTHERS BROAD INVESTMENT-GRADE
YEAR (CLASS A SHARES) BOND INDEX
- ---- ---------------- ----------
<S> <C> <C>
8/26/96 9,728 10,000
10/31/96 10,079 10,403
4/30/97 10,318 10,576
10/31/97 10,952 11,322
4/30/98 11,303 11,737
10/31/98 11,589 12,386
4/30/99 11,850 12,477
10/31/99 11,697 12,446
</TABLE>
Republic Bond Fund
(Class A Shares)
Salomon Brothers Broad Investment-Grade
Bond Index(1)
(1) Salomon Brothers Broad Investment-Grade Bond Index is an unmanged market
capitalization weighted index which includes fixed rate Treasury, government
sponsored, corporate and mortgage securities. All issues mature in one year
or more and have at least $50 million face amount outstanding for entry
into the index. The index does not reflect the expenses associated with a
mutual fund, such as investment management and fund accounting fees. The
fund's performance reflects the deduction of fees for these value-added
services.
THE PERFORMANCE DATA QUOTED REPRESENTS PART 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 THEIR ORIGINAL COST.
Investors cannot invest directly in an index.
17
<PAGE>
[PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
REPUBLIC BOND FUND SALOMON BROTHERS BROAD INVESTMENT-GRADE
YEAR (CLASS B SHARES) BOND INDEX
- ---- ---------------- ----------
<S> <C> <C>
1/06/98 10,000 10,000
4/30/98 10,079 10,213
10/31/98 10,284 10,778
4/30/98 10,481 10,857
10/31/98 10,123 10,831
</TABLE>
Republic Bond Fund
(Class B Shares)
Salomon Brothers Broad Investment-Grade
Bond Index(1)
(1) Salomon Brothers Broad Investment-Grade Bond Index is an unmanaged market
capitalization weighted index which includes fixed rate Treasury, government
sponsored, corporate and mortgage securities. All issues mature in one year
or more and have at least $50 million face amount outstanding for entry
into the index. The index does not reflect the expenses associated with a
mutual fund, such as investment management and fund accounting fees. The
fund's performance reflects the deduction of fees for these value-added
services.
THE PERFORMANCE DATA QUOTED REPRESENTS PART 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 THEIR ORIGINAL COST.
Investors cannot invest directly in an index.
18
<PAGE>
[PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
REPUBLIC BOND FUND SALOMON BROTHERS BROAD INVESTMENT-GRADE
YEAR (CLASS C SHARES) BOND INDEX
- ---- ---------------- ----------
<S> <C> <C>
11/04/98 10,000 10,000
4/30/99 10,203 10,073
10/31/99 9,918 10,049
</TABLE>
Republic Bond Fund
(Class C Shares)
Salomon Brothers Broad Investment-Grade
Bond Index(1)
(1) Salomon Brothers Broad Investment-Grade Bond Index is an unmanaged market
capitalization weighted index which includes fixed rate Treasury, government
sponsored, corporate and mortgage securities. All issues mature in one year
or more and have at least $50 million face amount outstanding for entry
into the index. The index does not reflect the expenses associated with a
mutual fund, such as investment management and fund accounting fees. The
fund's performance reflects the deduction of fees for these value-added
services.
THE PERFORMANCE DATA QUOTED REPRESENTS PART 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 THEIR ORIGINAL COST.
Investors cannot invest directly in an index.
19
<PAGE>
REPUBLIC OVERSEAS EQUITY FUND'D'
The Republic Overseas Equity Fund (the 'Fund') seeks to provide its
shareholders with long-term growth of capital and future income by investing
primarily in securities of non-U.S. issuers and securities of issuers whose
principal markets are outside of the United States. The Republic Overseas Equity
Fund employs a two-tier fund structure, known as 'master-feeder', in which the
Republic Overseas Equity Fund (the 'feeder fund') invests all of its assets in
the Republic International Equity Portfolio (the 'master fund').
The International Equity Portfolio (the 'Portfolio') invests primarily in
equity securities of companies organized and domiciled in developed nations
outside the United States or for which the principal trading market is outside
the United States, including Europe, Canada, Australia and the Far East. The
Portfolio employs Capital Guardian Trust Company as sub-adviser.
For the fiscal year ended October 31, 1999, the Class A Shares(1) of the
Republic Overseas Equity Fund returned 45.41% (without deducting maximum sales
charge). This compares quite favorably to the performance for the Lipper
International Equity Funds Index(2) and the MSCI EAFE Index(3), which were
23.05% and 23.37%, respectively, for the same period.
The Fund's performance was helped by advantageous stock selection in Japan,
Germany, the United Kingdom and Taiwan. The Portfolio invested more heavily in
countries that outperformed the MSCI EAFE Index during the year, including
Mexico, Finland, Korea and Japan. The Portfolio also invested less in countries
that underperformed the MSCI EAFE Index during the year, such as Switzerland and
Spain. The combination of good stock and country selection resulted in the
Fund's favorable performance for the year.
(1) Maximum sales charge for Class A Shares is 3.5% of the public offering
price. Class A Shares bear ongoing 12b-1 fees and distribution fees of
0.25% of the daily net assets of Class A Shares. These Class A expenses
are reflected in the performance data. The performance set forth reflects
the waiver and reimbursement of a portion of the Fund's fees. Without
waivers of fees, total return for the period would have been lower.
Class A Shares commenced operations on August 26, 1996.
(2) Lipper International Equity Funds Index is a managed index which consists of
funds that are representative of securities with primary trading markets
outside of the United States.
(3) MSCI EAFE Index is an 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 index does not reflect
the expenses associated with a mutual fund, such as investment management
and fund accounting fees. The fund's performance reflects the deduction of
fees for these value-added services.
'D' International investing involves increased risk and volatility.
THE PERFORMANCE DATA QUOTED REPRESENTS PART 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 THEIR ORIGINAL COST.
Portfolio composition is subject to change.
Investors cannot invest directly in an index.
20
<PAGE>
REPUBLIC OVERSEAS EQUITY FUND(1),(2),(3)
<TABLE>
<CAPTION>
FISCAL
YEAR
ENDED INCEPTION TO
AVERAGE ANNUAL TOTAL RETURN 10/31/99 10/31/99
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
% return without deducting maximum Class A 45.41% 16.26%
sales/redemption charge Class B 44.25% 23.05%
Class C 41.84% 41.84%
- ------------------------------------------------------------------------------------
% return after deducting maximum Class A 40.34% 15.40%
sales/redemption charge Class B 40.25% 21.65%
Class C 40.84% 40.84%
- ------------------------------------------------------------------------------------
Value of $10,000 investment without Class A -- $17,167
deducting maximum sales/redemption charge Class B -- 14,576
Class C -- 14,184
</TABLE>
(1) Maximum sales charge for Class A Shares is 3.5% of the public offering
price. Class A Shares bear ongoing distribution fees and shareholder
services fees of 0.25% of the daily net assets of Class A Shares. These
Class A expenses are reflected in the performance data. The performance set
forth reflects the waiver and reimbursement of a portion of the Fund's
fees. Without waivers of fees, total return for the period would have been
lower. Class A Shares commenced operations on August 26, 1996.
(2) Maximum contingent deferred sales charge for Class B Shares is 4% and is
reduced to 0% after four years. Class B Shares bear ongoing distribution
fees and shareholder services fees of 1% of the daily net assets of
Class B Shares. The Class B expenses are reflected in the performance data.
Class B Shares commenced operations on January 6, 1998.
(3) Maximum contingent deferred sales charge for Class C Shares is 1% and is
reduced to 0% after one year. Class C Shares bear ongoing distribution fees
and shareholder services fees of 1% of the daily net assets of Class C
Shares. These Class C expenses are reflected in the performance data.
Class C Shares commenced operations on November 4, 1998.
THE PERFORMANCE DATA QUOTED REPRESENTS PART 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 THEIR ORIGINAL COST.
21
<PAGE>
[PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
REPUBLIC OVERSEAS EQUITY
YEAR FUND MSCI EAFE INDEX
---- ---- ---------------
<S> <C> <C>
8/26/96 9,653 10,000
10/31/96 9,797 10,166
4/30/97 10,752 10,340
10/31/97 11,177 10,666
4/30/98 13,001 12,329
10/31/98 11,396 11,727
4/30/99 14,021 13,538
10/31/999 16,570 14,468
</TABLE>
Republic Overseas Equity Fund
(Class A Shares)
MSCI EAFE Index(1)
(1) MSCI EAFE Index is an 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 index does not reflect
the expenses associated with a mutual fund, such as investment management
and fund accounting fees. The fund's performance reflects the deduction of
fees for these value-added services.
THE PERFORMANCE DATA QUOTED REPRESENTS PART 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 THEIR ORIGINAL COST.
Investors cannot invest directly in an index.
22
<PAGE>
[PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
YEAR REPUBLIC OVERSEAS EQUITY FUND
(CLASS B SHARES) MSCI EAFE INDEX
<S> <C> <C>
1/06/98 10,000 10,000
4/30/98 11,590 11,572
10/31/98 10,105 11,007
4/30/99 12,376 12,707
10/31/99 14,276 13,579
</TABLE>
Republic Overseas Equity Fund
(Class B Shares)
MSCI EAFE Index(1)
(1) MSCI EAFE Index is an 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 index does not reflect
the expenses associated with a mutual fund, such as investment management
and fund accounting fees. The fund's performance reflects the deduction of
fees for these value-added services.
THE PERFORMANCE DATA QUOTED REPRESENTS PART 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 THEIR ORIGINAL COST.
Investors cannot invest directly in an index.
23
<PAGE>
[PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
Republic Overseas Equity Fund
Year (Class C Shares) MSCI EAFE Index
<S> <C> <C>
11/04/98 10,000 10,000
04/30/99 12,045 11,544
10/31/99 14,084 12,337
</TABLE>
Republic Overseas Equity Fund
(Class C Shares)
MSCI EAFE Index(1)
(1) MSCI EAFE Index is an 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 index does not reflect
the expenses associated with a mutual fund, such as investment management
and fund accounting fees. The fund's performance reflects the deduction of
fees for these value-added services.
THE PERFORMANCE DATA QUOTED REPRESENTS PART 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 THEIR ORIGINAL COST.
Investors cannot invest directly in an index.
24
<PAGE>
REPUBLIC OPPORTUNITY FUND'D'
The Republic Opportunity Fund (the 'Fund') seeks to provide its
shareholders with long-term growth of capital by investing in equity securities
of emerging small and medium-sized companies that are expected to show earnings
growth over time that is well above the growth rate of the overall economy and
the rate of inflation. The Republic Opportunity Fund employs a two-tier
structure, commonly referred to as 'master-feeder', in which the Republic
Opportunity Fund (the 'feeder fund') invests all of its assets in the Republic
Small Cap Equity Portfolio (the 'master fund').
The Republic Small Cap Equity Portfolio (the 'Portfolio') invests primarily
in common stocks of small and medium-sized companies that are early in their
life cycle but which may have potential to become major enterprises. The
Portfolio employs MFS Institutional Advisers, Inc. as sub-adviser.
For the fiscal year ended October 31, 1999, the Class A Shares(1) of the
Republic Opportunity Fund returned 23.80% (without deducting maximum sales
charge). In comparison, the performance of the Lipper Small Cap Fund Index(2)
was 26.62% while that for the Russell 2000 Index(3) was 14.87%.
The Portfolio overweighted miscellaneous business services and technology,
which were strong performers during the period. In addition, good stock
selection within these two sectors contributed to the favorable returns for the
Fund. The Portfolio has focused its technology holdings more on software and
infrastructure than on the Internet itself. Given that the Russell 2000 Index
owes much of its performance for the period to Internet stocks, we feel that the
Fund's performance is particularly noteworthy. The Portfolio also benefited from
investments in the utilities & communications and energy sectors.
(1) Maximum sales charge for Class A Shares is 3.5% of the public offering
price. Class A Shares bear ongoing 12b-1 fees and distribution fees of
0.25% of the daily net assets of Class A Shares. These Class A expenses
are reflected in the performance data. The performance set forth reflects
the waiver and reimbursement of a portion of the Fund's fees. Without
waivers of fees, total return for the year would have been lower. Class A
Shares commenced operations on September 23, 1996.
(2) Lipper Small Cap Fund Index is a managed index which consists of funds that
are representative of securities of companies with market capitalization of
less than $1 billion.
(3) The Russell 2000 Index is an unmanaged broad index of equity securities of
small capitalization U.S. companies, with an average market capitalization
of $526.4 million as of October 31, 1999. The index does not reflect the
expenses associated with a mutual fund, such as investment management and
fund accounting fees. The fund's performance reflects the deduction of fees
for these value-added services.
'D' Small company funds typically carry additional risks since smaller companies
generally have higher company specific risk and, historically, their stocks
have experienced a greater degree of market volatility than larger company
stocks on average.
THE PERFORMANCE DATA QUOTED REPRESENTS PART 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 THEIR ORIGINAL COST.
Portfolio composition is subject to change.
Investors cannot invest directly in an index.
25
<PAGE>
REPUBLIC OPPORTUNITY FUND(1),(2),(3)
<TABLE>
<CAPTION>
FISCAL
YEAR
ENDED INCEPTION TO
AVERAGE ANNUAL TOTAL RETURN 10/31/99 10/31/99
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
% return without deducting maximum Class A 23.80% 12.98%
sales/redemption charge Class B 22.93% 10.23%
Class C 21.00% 21.00%
- ------------------------------------------------------------------------------------
% return after deducting maximum Class A 19.48% 11.70%
sales/redemption charge Class B 18.93% 8.96%
Class C 20.00% 20.00%
- ------------------------------------------------------------------------------------
Value of $10,000 investment without Class A -- $14,604
deducting maximum sales/redemption charge Class B -- 11,935
Class C -- 12,100
</TABLE>
(1) Maximum sales charge for Class A Shares is 3.5% of the public offering
price. Class A Shares bear ongoing distribution fees and shareholder
services fees of 0.25% of the daily net assets of Class A Shares. These
Class A expenses are reflected in the performance data. The performance set
forth reflects the waiver and reimbursement of a portion of the Fund's
fees. Without waivers of fees, total return for the year would have been
lower. Class A Shares commenced operations on September 23, 1996.
(2) Maximum contingent deferred sales charge for Class B Shares is 4% and is
reduced to 0% after four years. Class B Shares bear ongoing distribution
fees and shareholder services fees of 1% of the daily net assets of Class
B Shares. The Class B expenses are reflected in the performance data.
Class B Shares commenced operations on January 6, 1998.
(3) Maximum contingent deferred sales charge for Class C Shares is 1% and is
reduced to 0% after one year. Class C Shares bear ongoing distribution fees
and shareholder services fees of 1% of the daily net assets of Class C
Shares. These Class C expenses are reflected in the performance data.
Class C Shares commenced operations on November 4, 1998.
THE PERFORMANCE DATA QUOTED REPRESENTS PART 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 THEIR ORIGINAL COST.
26
<PAGE>
[PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
Republic Opportunity Fund
Year (Class A Shares) Russell 2000 Index
<S> <C> <C>
9/23/96 9,653 10,000
10/31/96 9,459 9,846
4/30/97 9,319 10,004
10/31/97 11,946 12,734
4/30/98 13,867 14,246
10/31/98 11,387 11,226
4/30/99 12,675 12,928
10/31/99 14,097 12,895
</TABLE>
Republic Opportunity Fund
(Class A Shares)
Russell 2000 Index(1)
(1) The Russell 2000 Index is an unmanaged broad index of equity securities of
small capitalization U.S. companies with an average market capitalization of
$526.4 million as of October 31, 1999. The index does not reflect the
expenses associated with a mutual fund, such as investment management and
fund accounting fees. The fund's performance reflects the deduction of fees
for these value-added services.
THE PERFORMANCE DATA QUOTED REPRESENTS PART 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 THEIR ORIGINAL COST.
Investors cannot invest directly in an index.
27
<PAGE>
[PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
Republic Opportunity
Fund
Year (Class B Shares) Russell 2000 Index
<S> <C> <C>
1/06/98 10,000 10,000
4/30/98 11,871 11,067
10/31/98 9,708 8,721
4/30/99 10,765 10,043
10/31/99 11,635 10.017
</TABLE>
Republic Opportunity Fund
(Class B Shares)
Russell 2000 Index(1)
(1) The Russell 2000 Index is an unmanaged broad index of equity securities of
small capitalization U.S. companies with an average market capitalization of
$526.4 million as of October 31, 1999. The index does not reflect the
expenses associated with a mutual fund, such as investment management and
fund accounting fees. The fund's performance reflects the deduction of
fees for these value-added services.
THE PERFORMANCE DATA QUOTED REPRESENTS PART 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 THEIR ORIGINAL COST.
Investors cannot invest directly in an index.
28
<PAGE>
[PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
YEAR REPUBLIC OPPORTUNITY FUND
(CLASS C SHARES) RUSSELL 2000 INDEX
<S> <C> <C>
11/04/98 10,000 10,000
4/30/99 10,930 11,516
10/31/99 12,000 11,487
</TABLE>
Republic Opportunity Fund
(Class C Shares)
Russell 2000 Index(1)
(1) The Russell 2000 Index is an unmanaged broad index of equity securities of
small capitalization U.S. companies with an average market capitalization of
$526.4 million as of October 31, 1999. The index does not reflect the
expenses associated with a mutual fund, such as investment management and
fund accounting fees. The fund's performance reflects the deduction of fees
for these value-added services.
THE PERFORMANCE DATA QUOTED REPRESENTS PART 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 THEIR ORIGINAL COST.
Investors cannot invest directly in an index.
29
<PAGE>
REPUBLIC NEW YORK TAX-FREE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- OCTOBER 31, 1999
<TABLE>
<CAPTION>
MOODY'S/S&P PRINCIPAL MARKET
DESCRIPTION RATINGS(b) AMOUNT VALUE
----------- ---------- ------ -----
<S> <C> <C> <C>
MUNICIPAL BONDS (97.7%)
NEW YORK (93.9%)
Brookhaven GO (FGIC Insured),
5.50%, 10/1/12.................. Aaa/AAA $ 500,000 $ 500,150
Erie County GO Series B (FGIC
Insured), 5.38%, 6/15/07........ Aaa/AAA 250,000 255,630
Essex County Industrial
Development Agency Pollution
Control, 5.55%, 1/1/14.......... A3/BBB+ 600,000 574,140
Metropolitan Transit Authority of
New York, Transportation
Facility
Revenue - Series C-1, 5.75%,
7/1/13.......................... Baa1/BBB+ 285,000 289,674
Metropolitan Transit Authority of
New York, Transportation
Facility Revenue - Series C-1
(FGIC Insured), 5.25%, 7/1/17... Aaa/AAA 970,000 891,818
Monroe County Airport Authority,
Greater Rochester International
Airport, AMT (MBIA Insured),
5.75%, 1/1/14................... Aaa/AAA 750,000 755,363
New York City GO Series H, 6.00%,
8/1/14.......................... A3/A- 1,000,000 1,008,340
New York City GO Series L, 5.875%,
8/1/15.......................... A3/A- 1,000,000 990,780
New York City Housing Development
Corp., 5.75%, 11/1/18........... Aa2/AA 1,000,000 982,990
New York City Housing Development
Corp., 5.60%, 11/1/19........... Aa2/AA 100,000 92,959
New York City Industrial
Development Agency, Special
Facilities Revenue Terminal One
Group Project, AMT, 6.00%,
1/1/15.......................... A3/A 1,000,000 998,420
New York City Municipal Water &
Sewer Finance Authority, Revenue
- Series A, 5.75%, 6/15/16..... A1/A 750,000 733,853
New York City Transitional
Financial Authority Revenue
(FGIC Insured), 6.00%,
8/15/15......................... Aaa/AAA 1,000,000 1,017,240
</TABLE>
30
<PAGE>
REPUBLIC NEW YORK TAX-FREE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- OCTOBER 31, 1999 (CONTINUED)
<TABLE>
<CAPTION>
MOODY'S/S&P PRINCIPAL MARKET
DESCRIPTION RATINGS(b) AMOUNT VALUE
----------- ---------- ------ -----
<S> <C> <C> <C>
New York State Dormitory Authority
Court Facilities Lease Revenue,
5.625%, 5/15/13................. A3/BBB+ $1,000,000 $ 977,750
New York State Dormitory Authority
Revenue, 6.25%, 5/15/17......... A3/A 375,000 403,125
New York State Dormitory Authority
Revenue, 5.75%, 7/1/17.......... Baa1/BBB+ 1,000,000 956,640
New York State Dormitory Authority
Revenue, City University, Series
A (AMBAC-TCRS Insured), 5.625%,
7/1/16.......................... Aaa/AAA 1,000,000 992,440
New York State Dormitory Authority
Revenue, Mental Health Service
Facility Series B, 6.50%,
8/15/11......................... A3/A- 225,000 240,779
New York State Dormitory Authority
Revenue, Mental Health Services
Series B, 5.50%, 8/15/17........ A3/A- 1,000,000 936,850
New York State Dormitory Authority
Revenue, Rochester Institute of
Technology (MBIA Insured),
5.30%, 7/1/17................... Aaa/AAA 1,000,000 929,950
New York State Dormitory Authority
Revenue, Rockefeller University,
5.25%, 7/1/13................... Aaa/AAA 500,000 488,760
New York State Dormitory Authority
Revenue, State Secured Hospital
New York Downtown, 5.20%,
2/15/13......................... Baa1/BBB+ 1,000,000 930,710
New York State Dormitory Authority
Revenue, State University
Educational Facilities, 5.75%,
5/15/09......................... A3/A- 500,000 514,420
New York State Dormitory
Authority, New York University
(MBIA Insured), 5.75%, 7/1/24... Aaa/AAA 1,000,000 1,013,280
New York State Environmental
Facilities Corp. Pollution,
5.85%, 1/15/15.................. Aaa/AAA 400,000 402,160
New York State Housing Finance
Agency, Service Contract,
5.875%, 9/15/14................. Baa1/BBB+ 1,000,000 1,001,890
</TABLE>
31
<PAGE>
REPUBLIC NEW YORK TAX-FREE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- OCTOBER 31, 1999 (CONTINUED)
<TABLE>
<CAPTION>
MOODY'S/S&P PRINCIPAL MARKET
DESCRIPTION RATINGS(b) AMOUNT VALUE
----------- ---------- ------ -----
<S> <C> <C> <C>
New York State Local Government
Assistance Corp. Revenue, 6.00%,
4/1/16.......................... A3/A+ $1,000,000 $ 1,010,970
New York State Medical Care
Facilities Revenue, Hospital &
Nursing Home, 6.40%, 8/15/14.... Aaa/AAA 375,000 390,326
New York State Mortgage Agency
Revenue, 5.375%, 10/1/17........ Aa2/NR 1,000,000 942,350
New York State Mortgage Agency
Revenue, AMT, 5.60%, 10/1/14.... Aa2/AA 1,000,000 970,450
New York State Thruway Authority,
Service Contract Revenue,
5.875%, 4/1/14.................. Baa1/N/R 1,000,000 1,061,640
New York State Urban Development
Corp., Revenue, 5.75%, 4/1/12... Baa1/BBB+ 1,000,000 1,000,310
New York State Urban Development
Corp., Revenue, 5.75%, 4/1/12... Baa1/BBB+ 500,000 501,075
Port Authority of New York & New
Jersey, Special Obligation,
Revenue, JFK International
Terminal, AMT (MBIA Insured),
5.75%, 12/1/22.................. Aaa/AAA 500,000 486,585
Triborough Bridge & Tunnel
Authority, Revenue, Series Y,
6.00%, 1/1/12................... Aa3/A+ 100,000 104,793
-----------
25,348,610
-----------
PUERTO RICO (3.8%)
Puerto Rico Electric Power
Authority Revenue, 6.00%,
7/1/14.......................... Baa1/BBB+ 1,000,000 1,020,530
-----------
TOTAL MUNICIPAL BONDS (COST $26,792,892) 26,369,140
-----------
NEW YORK TAX-FREE NOTES AND COMMERCIAL PAPER (0.7%)
NEW YORK (0.7%)
Nassau County IDA Civic Facility
for Cold Spring Harbor Labs,
3.55%*, 11/1/99................. VMIG1, A-1+ 200,000 200,000
-----------
TOTAL NEW YORK TAX-FREE NOTES AND COMMERCIAL PAPER (COST
$200,000) 200,000
-----------
</TABLE>
32
<PAGE>
REPUBLIC NEW YORK TAX-FREE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- OCTOBER 31, 1999 (CONTINUED)
<TABLE>
<CAPTION>
MARKET
DESCRIPTION SHARES VALUE
----------- ------ -----
<S> <C> <C>
SHORT-TERM INVESTMENTS (0.7%)
Provident New York Tax-Free Money Market Fund.... 194,600 $ 194,600
-----------
TOTAL SHORT-TERM INVESTMENTS
(COST $194,600)................................ 194,600
-----------
TOTAL INVESTMENTS (COST $27,187,492) (a) -- 99.1% 26,763,740
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.9% 242,845
-----------
NET ASSETS -- 100.0% $27,006,585
-----------
-----------
</TABLE>
- ------------
Percentages indicated are based on net assets of $27,006,585.
(a) Cost for financial reporting and federal income tax purposes and differs
from value by net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation................... $ 204,298
Gross unrealized depreciation................... (628,050)
---------
Net unrealized depreciation..................... $(423,752)
---------
---------
</TABLE>
(b) The Moody's or Standard & Poor's rating indicated is believed to be the most
recent ratings available at October 31, 1999 for the securities listed.
Ratings are generally ascribed to securities at the time of issuance. While
the agencies may from time to time revise such ratings, they undertake no
obligation to do so, and the ratings do not neccessarily represent what the
agencies would ascribe to these securities at October 31, 1999. These
ratings are unaudited.
<TABLE>
<S> <C>
AMBAC - American Muncipal Bond Assurance Corporation
Interest on security is subject to Federal Alternative
AMT - Minimum Tax
FGIC - Federal Guaranty Insurance Corporation
GO - General Obligation
MBIA - Municipal Bond Insurance Association
</TABLE>
(c) At October 31, 1999 the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
NUMBER OF EXPIRATION CONTRACT (DEPRECIATION)
SHORT CONTRACTS CONTRACTS DATE VALUE OF CONTRACTS
--------------- --------- ---- ----- ------------
<S> <C> <C> <C> <C>
U.S. T-Bonds Future.... 50 12/21/99 $5,679,688 $(18,248)
</TABLE>
* Variable rate investments. The rate presented on the Schedule of Portfolio
Investments is the rate in effect at October 31, 1999. The date presented
reflects the next rate change date.
See notes to financial statements.
33
<PAGE>
REPUBLIC EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
OCTOBER 31, 1999
<TABLE>
<CAPTION>
MARKET
DESCRIPTION SHARES VALUE
- ----------- ------ -----
<S> <C> <C>
COMMON STOCKS (98.93%)
AEROSPACE & AIRCRAFT (3.50%)
AlliedSignal, Inc. .................................. 44,000 $ 2,505,250
Lockheed Martin Corp. ............................... 89,300 1,786,000
Raytheon Co., Class B................................ 110,600 3,221,225
United Technologies Corp. ........................... 36,000 2,178,000
------------
9,690,475
------------
BANKING & FINANCE (17.64%)
Amsouth Bancorporation............................... 118,204 3,043,753
Associates First Capital Corp. ...................... 56,100 2,047,650
Bank of America Corp. ............................... 105,600 6,797,999
Chase Manhattan Corp. ............................... 44,000 3,844,500
Citigroup, Inc. ..................................... 171,450 9,279,730
Fleet Boston Corp. .................................. 63,200 2,757,100
Greenpoint Financial Corp. .......................... 93,900 2,676,150
Hibernia Corp., Class A.............................. 168,000 2,383,500
Household International, Inc. ....................... 64,100 2,860,463
MBNA Corp. .......................................... 140,700 3,886,838
PNC Bank Corp. ...................................... 52,700 3,142,238
Wells Fargo Co. ..................................... 127,500 6,104,062
------------
48,823,983
------------
CHEMICALS (2.48%)
Dow Chemical Co. .................................... 19,100 2,258,575
Du Pont (E.I) de Nemours............................. 33,900 2,184,431
IMC Global, Inc. .................................... 104,400 1,331,100
Lyondell Chemical Co. ............................... 89,300 1,082,763
------------
6,856,869
------------
CONSTRUCTION & HOUSING (3.58%)
Fleetwood Enterprises, Inc. ......................... 38,200 833,238
Lafarge Corp. ....................................... 71,000 2,107,813
Masco Corp. ......................................... 35,000 1,067,500
Southdown, Inc. ..................................... 57,744 2,789,756
USG Corp. ........................................... 36,300 1,799,119
York International Corp. ............................ 55,900 1,317,144
------------
9,914,570
------------
CONSUMER MANUFACTURING (4.15%)
General Electric Co. ................................ 48,500 6,574,782
Harley-Davidson, Inc. ............................... 49,300 2,924,106
Lear Corp. (b)....................................... 58,500 1,974,375
------------
11,473,263
------------
</TABLE>
34
<PAGE>
REPUBLIC EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
MARKET
DESCRIPTION SHARES VALUE
- ----------- ------ -----
<S> <C> <C>
COMMON STOCKS (CONTINUED)
CONSUMER PRODUCTS (4.48%)
Avon Products, Inc. ................................. 45,000 $ 1,451,250
Coca-Cola Co. ....................................... 23,000 1,357,000
Colgate-Palmolive Co. ............................... 62,200 3,763,100
Mattel, Inc. ........................................ 71,800 960,325
Newell Rubbermaid, Inc. ............................. 76,900 2,662,663
Philip Morris Cos., Inc. ............................ 87,100 2,193,831
------------
12,388,169
------------
CONSUMER SERVICES (7.72%)
Consolidated Stores Corp. (b)........................ 124,300 2,276,244
Dayton-Hudson Corp. ................................. 17,000 1,098,625
Gap, Inc. ........................................... 21,700 805,613
Home Depot, Inc. .................................... 86,600 6,538,299
Kohl's Corp. (b)..................................... 53,800 4,024,912
Kroger Co. (b)....................................... 105,000 2,185,313
Wal-Mart Stores, Inc. ............................... 78,000 4,421,624
------------
21,350,630
------------
ELECTRICAL & ELECTRONICS (2.11%)
Emerson Electric Co. ................................ 40,800 2,450,550
Johnson Controls, Inc. .............................. 55,800 3,389,850
------------
5,840,400
------------
GAS & ELECTRIC UTILITY (5.32%)
Carolina Power & Light Co. .......................... 86,600 2,987,700
Central & South West Corp. .......................... 155,700 3,454,594
CMS Energy Corp. .................................... 69,000 2,544,375
Dominion Resources, Inc. ............................ 78,300 3,768,187
New Century Energies, Inc. .......................... 60,000 1,953,750
------------
14,708,606
------------
HEALTH CARE (3.24%)
Medtronic, Inc. ..................................... 64,400 2,229,850
St. Jude Medical, Inc. .............................. 122,600 3,356,175
United HealthCare Corp. ............................. 65,100 3,364,856
------------
8,950,881
------------
INSURANCE (1.79%)
Aetna, Inc. ......................................... 6,300 316,575
American International Group......................... 29,000 2,985,187
AON Corp. ........................................... 5,373 190,742
Mbia, Inc. .......................................... 25,500 1,455,094
------------
4,947,598
------------
</TABLE>
35
<PAGE>
REPUBLIC EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
MARKET
DESCRIPTION SHARES VALUE
- ----------- ------ -----
<S> <C> <C>
COMMON STOCKS (CONTINUED)
INTERNET RELATED (0.42%)
America Online, Inc. (b)............................. 9,000 $ 1,167,188
------------
MEDIA (2.55%)
AT&T - Liberty Media Group (b)....................... 142,000 5,635,625
MediaOne Group, Inc. (b)............................. 19,900 1,414,144
------------
7,049,769
------------
MISCELLANEOUS MANUFACTURING (3.29%)
Illinois Tool Works.................................. 27,700 2,029,025
National Service Industries, Inc. ................... 31,700 1,022,325
Pentair, Inc. ....................................... 33,600 1,264,200
Tyco International Ltd. ............................. 120,000 4,792,500
------------
9,108,050
------------
OIL & GAS (0.94%)
Ultramar Diamond Shamrock Corp. ..................... 38,300 938,350
Valero Energy Corp. ................................. 90,900 1,670,288
------------
2,608,638
------------
PHARMACEUTICALS (7.66%)
Bristol-Myers Squibb Co. ............................ 87,000 6,682,687
Merck & Co., Inc. ................................... 37,000 2,943,813
Pfizer, Inc. ........................................ 88,800 3,507,600
Schering-Plough Corp. ............................... 109,000 5,395,500
Watson Pharmaceutical, Inc. (b)...................... 84,000 2,667,000
------------
21,196,600
------------
TECHNOLOGY (17.45%)
Advanced Micro Devices, Inc. (b)..................... 116,400 2,306,175
Altera Corp. (b)..................................... 70,000 3,403,750
Cisco Systems, Inc. (b).............................. 100,500 7,436,999
Computer Sciences Corp. (b).......................... 37,200 2,555,175
Dell Computer Corp. (b).............................. 153,400 6,155,175
Electronic Data Systems Corp. ....................... 64,000 3,744,000
Intel Corp. ......................................... 91,000 7,046,812
International Business Machines Corp. ............... 28,500 2,803,688
Microsoft Corp. (b).................................. 62,700 5,803,669
Solectron Corp. (b).................................. 93,200 7,013,300
------------
48,268,743
------------
TELECOMMUNICATIONS (4.71%)
AT&T Corp. .......................................... 34,900 1,631,575
MCI Worldcom, Inc. (b)............................... 59,200 5,080,100
Nextel Communications, Inc., Class A (b)............. 30,900 2,663,194
</TABLE>
36
<PAGE>
REPUBLIC EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
MARKET
DESCRIPTION SHARES VALUE
- ----------- ------ -----
<S> <C> <C>
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS - (CONTINUED)
US West, Inc. ....................................... 59,900 $ 3,657,644
------------
13,032,513
------------
TELECOMMUNICATIONS-EQUIPMENT (1.27%)
Lucent Technologies, Inc. ........................... 22,300 1,432,775
Nokia Oyj ADR........................................ 18,000 2,080,125
------------
3,512,900
------------
TRANSPORTATION (4.63%)
Burlington Northern Santa Fe Corp. .................. 119,500 3,809,063
FDX Corp. (b)........................................ 108,400 4,667,974
Gatx Corp. .......................................... 74,000 2,455,875
Norfolk Southern Corp. .............................. 77,000 1,881,688
------------
12,814,600
------------
TOTAL COMMON STOCKS
(COST $225,393,177)........................................... 273,704,445
------------
SHORT-TERM INVESTMENTS (1.17%)
MONEY MARKET FUND (1.17%)
Dreyfus Cash Management Fund......................... 3,245,625 3,245,625
------------
TOTAL SHORT-TERM INVESTMENTS
(COST $3,245,625)............................................. 3,245,625
------------
TOTAL INVESTMENTS (COST $228,638,802) (a) -- 100.10%.......... 276,950,070
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.10)%.............. (264,798)
------------
NET ASSETS -- 100.00%........................................... $276,685,272
------------
------------
</TABLE>
- ------------
Percentages indicated are based on net assets of $276,685,272.
ADR - American Depositary Receipt
(a) Represents cost for financial reporting purposes and differs for federal
income tax purposes by the amount of losses recognized for financial
reporting purposes in excess of federal income tax reporting of
approximately $718,158. Cost for federal income tax purposes differs from
value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation................................... $63,445,454
Unrealized depreciation................................... (15,852,344)
------------
Net unrealized appreciation............................... $47,593,110
------------
------------
</TABLE>
(b) Represents non-income producing security
(c) At October 31, 1999 the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
NUMBER OF EXPIRATION CONTRACT APPRECIATION
LONG CONTRACTS CONTRACTS DATE VALUE OF CONTRACTS
-------------- --------- ---- ---------- -------------
<S> <C> <C> <C> <C>
S&P Future December 1999 3 12/16/99 $1,032,150 $39,129
</TABLE>
37
<PAGE>
REPUBLIC FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
<TABLE>
<CAPTION>
NEW YORK
TAX-FREE EQUITY
BOND FUND FUND
--------- ------
<S> <C> <C>
ASSETS:
Investments, at value (cost $27,187,492 and
$228,638,802, respectively).................... $26,763,740 $276,950,070
Cash............................................. 99,954 --
Interest receivable.............................. 384,945 --
Dividends receivable............................. -- 232,605
Receivable for investments sold.................. -- 2,974,154
Receivable for capital shares issued............. 40,000 507
Variation margin receivable on open futures
contracts...................................... -- 19,500
Deferred organization costs...................... 2,353 3,088
Prepaid expenses................................. 329 2,734
----------- ------------
TOTAL ASSETS....................................... 27,291,321 280,182,658
----------- ------------
LIABILITIES:
Payable to custodian for overdraft............... -- 6,675
Dividends payable................................ 47,473 --
Payable for investments purchased................ -- 3,209,955
Payable for capital shares redeemed.............. 41,732 33,813
Variation margin payable on open futures
contracts...................................... 65,625 --
Accrued expenses and other payables:
Investment management fees..................... -- 69,533
Administration fees............................ 1,941 18,848
Distribution fees (Class B Shares)............. 402 1,703
Shareholder servicing fees (Class A, B, C
Shares)...................................... 3,997 6,361
Custodian fees and expenses.................... 21,802 10,583
Other payables................................. 101,764 139,915
----------- ------------
TOTAL LIABILITIES.................................. 284,736 3,497,386
----------- ------------
NET ASSETS......................................... $27,006,585 $276,685,272
----------- ------------
----------- ------------
</TABLE>
-- continued --
38
<PAGE>
REPUBLIC FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
<TABLE>
<CAPTION>
NEW YORK
TAX-FREE EQUITY
BOND FUND FUND
----------- ------------
<S> <C> <C>
COMPOSITION OF NET ASSETS:
Capital.......................................... $27,565,983 $203,018,265
Accumulated net investment income/(loss)......... (1,202) 89,738
Accumulated net realized gains/(losses) from
investment and futures transactions............ (116,196) 25,226,872
Unrealized appreciation/(depreciation) from
investments and futures........................ (442,000) 48,350,397
----------- ------------
NET ASSETS......................................... $27,006,585 $276,685,272
----------- ------------
----------- ------------
NET ASSETS:
Class A Shares................................... $17,568,282 $ 27,942,125
Class B Shares................................... 563,933 1,775,376
Class C Shares................................... 255,670 1,626,089
Class Y (Adviser) Shares......................... 8,618,700 245,341,682
----------- ------------
Total Net Assets................................... $27,006,585 $276,685,272
----------- ------------
----------- ------------
Shares Outstanding (par value $0.001, unlimited
number of shares authorized):
Class A Shares................................... 1,743,609 1,404,790
Class B Shares................................... 56,016 89,948
Class C Shares................................... 25,290 81,988
Class Y (Adviser) Shares......................... 855,557 12,332,087
CLASS A SHARES (INVESTOR SHARES)
Net Asset Value, Offering Price and Redemption
Price per share................................ $10.08 $19.89
------ ------
------ ------
Maximum offering price per share (Net asset value
plus a sales charge of 2.75% and 3.50% of each
Fund's offering price, respectively)........... $10.37 $20.61
------ ------
------ ------
CLASS B SHARES
Net Asset Value and Offering Price per share*.... $10.07 $19.74
------ ------
------ ------
CLASS C SHARES
Net Asset Value and Offering Price per share*.... $10.11 $19.83
------ ------
------ ------
CLASS Y SHARES (ADVISER SHARES)
Net Asset Value, Offering Price and Redemption
Price per share................................ $10.07 $19.89
------ ------
------ ------
* Redemption price per share varies by length of time shares are held.
</TABLE>
See notes to financial statements.
39
<PAGE>
REPUBLIC FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1999
<TABLE>
<CAPTION>
NEW YORK
TAX-FREE EQUITY
BOND FUND FUND
----------- -----------
<S> <C> <C>
INVESTMENT INCOME:
Interest income.................................... $ 1,606,568 $ --
Dividend income.................................... -- 3,272,208
----------- -----------
TOTAL INVESTMENT INCOME.............................. 1,606,568 3,272,208
----------- -----------
EXPENSES:
Investment management fees......................... 77,672 1,225,897
Administration fees................................ 26,007 254,825
Distribution fees -- (Class B, C Shares)(a)........ 2,442 9,755
Shareholder service fees -- (Class A, B, C
Shares)(a)....................................... 59,372 79,841
Accounting fees.................................... 55,202 68,248
Custodian fees and expenses........................ 12,429 102,081
Transfer agent fees................................ 43,664 44,194
Printing fees...................................... 22,496 71,756
Other expenses..................................... 59,386 119,492
----------- -----------
Total expenses before voluntary fee reductions
and reimbursements............................. 358,670 1,976,089
Voluntary fee reductions and reimbursement of
expenses....................................... (77,728) --
----------- -----------
Net expenses..................................... 280,942 1,976,089
----------- -----------
NET INVESTMENT INCOME................................ 1,325,626 1,296,119
----------- -----------
REALIZED/UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS:
Net realized gains/(losses) from investment and
futures transactions............................. (116,195) 26,280,422
Change in unrealized appreciation/ (depreciation)
from investments and futures..................... (2,293,233) 19,851,181
----------- -----------
Net realized/unrealized gains/(losses) from
investment and futures transactions.............. (2,409,428) 46,131,603
----------- -----------
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS....... $(1,083,802) $47,427,722
----------- -----------
----------- -----------
(a) Commencement of operations was November 4, 1998 for Class C Shares.
</TABLE>
See notes to financial statements.
40
<PAGE>
REPUBLIC NEW YORK TAX-FREE BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
OCTOBER 31,
-------------------------
1999 1998
---- ----
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income...................... $ 1,325,626 $ 1,320,105
Net realized gains/(losses) from investment
and futures transactions................ (116,195) 45,989
Change in unrealized
appreciation/(depreciation) from
investments and futures................. (2,293,233) 898,647
----------- -----------
Change in net assets resulting from
operations................................. (1,083,802) 2,264,741
----------- -----------
DIVIDENDS TO SHAREHOLDERS:
Net investment income:
Class A Shares.......................... (909,157) (921,138)
Class B Shares.......................... (21,353) (6,690)
Class C Shares(a)....................... (5,591) --
Class Y (Adviser) Shares................ (388,326) (393,477)
In excess of net investment income:
Class A Shares.......................... (858) --
Class B Shares.......................... (23) --
Class Y (Adviser) Shares................ (320) --
Net realized gains from investment and
futures transactions:
Class A Shares.......................... (32,437) (81,787)
Class B Shares.......................... (900) --
Class Y (Adviser) Shares................ (12,643) (33,681)
----------- -----------
Change in net assets from shareholder
dividends............................... (1,371,608) (1,436,773)
CHANGE IN NET ASSETS FROM CAPITAL SHARE
TRANSACTIONS............................... (2,950,317) 1,889,357
----------- -----------
CHANGE IN NET ASSETS......................... (5,405,727) 2,717,325
NET ASSETS:
Beginning of period........................ 32,412,312 29,694,987
----------- -----------
End of period.............................. $27,006,585 $32,412,312
----------- -----------
----------- -----------
</TABLE>
(a) Commencement of operations was November 4, 1998.
See notes to financial statements.
41
<PAGE>
REPUBLIC EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
OCTOBER 31,
---------------------------
1999 1998
---- ----
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income.................... $ 1,296,119 $ 997,078
Net realized gains from investment and
futures transactions.................. 26,280,422 4,469,866
Change in unrealized appreciation from
investments and futures............... 19,851,181 21,654,911
------------ ------------
Change in net assets resulting from
operations............................... 47,427,722 27,121,855
------------ ------------
DIVIDENDS TO SHAREHOLDERS:
Net investment income:
Class A Shares........................ (63,369) (57,050)
Class B Shares........................ -- (289)
Class C Shares (a).................... -- --
Class Y (Adviser) Shares.............. (1,164,923) (918,974)
In excess of net investment income:
Class B Shares........................ (449) --
Class C Shares (a).................... (1,888) --
Net realized gains from investment and
futures transactions:
Class A Shares........................ (546,206) (745,988)
Class B Shares........................ (23,569) --
Class C Shares (a).................... (295) --
Class Y (Adviser) Shares.............. (4,883,735) (7,858,305)
------------ ------------
Change in net assets from shareholder
dividends............................. (6,684,434) (9,580,606)
CHANGE IN NET ASSETS FROM CAPITAL SHARE
TRANSACTIONS............................. 928,285 142,049,151
------------ ------------
CHANGE IN NET ASSETS....................... 41,671,573 159,590,400
NET ASSETS:
Beginning of period...................... 235,013,699 75,423,299
------------ ------------
End of period............................ $276,685,272 $235,013,699
------------ ------------
------------ ------------
</TABLE>
(a) Commencement of operations was November 4, 1998.
See notes to financial statements.
42
<PAGE>
REPUBLIC FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
<TABLE>
<CAPTION>
OVERSEAS
BOND EQUITY OPPORTUNITY
FUND FUND FUND
---- -------- -----------
<S> <C> <C> <C>
ASSETS:
Investments, at value................... $4,808,964 $8,344,272 $13,856,272
Receivable for capital shares issued.... -- 50 297
Receivable from investment manager...... 45,409 30,493 41,520
Deferred organization costs............. 8,233 6,268 5,190
Miscellaneous receivables and
prepaids.............................. 19,701 27,117 --
---------- ---------- -----------
Total Assets.............................. 4,882,307 8,408,200 13,903,279
---------- ---------- -----------
LIABILITIES:
Dividends payable....................... 20,717 -- --
Payable for capital shares redeemed..... 1,067 52,462 20,357
Accrued expenses and other payables:
Administration fees................... 171 292 471
Distribution fees..................... 306 115 504
Shareholder services fees............. 1,020 1,735 2,692
Accounting fees....................... 2,038 2,039 2,039
Transfer agent fees................... 26,178 26,167 26,145
Other payables........................ -- -- 10,908
---------- ---------- -----------
TOTAL LIABILITIES......................... 51,497 82,810 63,116
---------- ---------- -----------
NET ASSETS................................ $4,830,810 $8,325,390 $13,840,163
---------- ---------- -----------
---------- ---------- -----------
</TABLE>
-- continued --
43
<PAGE>
REPUBLIC FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
OVERSEAS
BOND EQUITY OPPORTUNITY
FUND FUND FUND
---------- ---------- -----------
<S> <C> <C> <C>
COMPOSITION OF NET ASSETS:
Capital................................. $5,187,054 $6,010,781 $11,762,898
Accumulated net investment loss......... (7,350) (30,251) --
Accumulated net realized gains/(losses)
from investments, futures and foreign
currency transactions................. (176,020) 98,510 1,213,208
Unrealized appreciation/(depreciation)
from investments, futures and foreign
currencies............................ (172,874) 2,246,350 864,057
---------- ---------- -----------
NET ASSETS................................ $4,830,810 $8,325,390 $13,840,163
---------- ---------- -----------
---------- ---------- -----------
NET ASSETS:
Class A (Investor) Shares............... $4,334,233 $8,137,741 $13,015,159
Class B Shares.......................... 345,041 89,658 535,602
Class C Shares.......................... 151,536 97,991 289,402
---------- ---------- -----------
Net Assets................................ $4,830,810 $8,325,390 $13,840,163
---------- ---------- -----------
---------- ---------- -----------
SHARES OUTSTANDING (par value $0.001,
unlimited number of shares authorized)--
Class A (Investor) Shares............... 443,308 481,621 986,926
Class B Shares.......................... 35,274 5,372 41,020
Class C Shares.......................... 15,515 5,817 22,040
CLASS A SHARES (INVESTOR SHARES)
Net Asset Value, Offering Price and
Redemption Price per share.............. $9.78 $16.90 $13.19
---------- ---------- -----------
---------- ---------- -----------
Maximum offering price per share (Net
asset value plus a sales charge of
2.75%, 3.50% and 3.50% of each funds
offering price, respectively)........... $10.06 $17.51 $13.67
---------- ---------- -----------
---------- ---------- -----------
CLASS B SHARES
Net Asset Value, Offering Price and
Redemption Price per share*............. $9.78 $16.69 $13.06
---------- ---------- -----------
---------- ---------- -----------
CLASS C SHARES
Net Asset Value, Offering Price and
Redemption Price per share*............. $9.77 $16.85 $13.13
---------- ---------- -----------
---------- ---------- -----------
</TABLE>
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
44
<PAGE>
REPUBLIC FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1999
<TABLE>
<CAPTION>
OVERSEAS
BOND EQUITY OPPORTUNITY
FUND FUND FUND
--------- ---------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME/(LOSS):
Investment income from portfolio......... $ 363,309 $ 127,288 $ 49,632
Tax reclaims............................. -- 4,156 --
Foreign tax withholding from portfolio... -- (17,341) (8)
Expenses from portfolio.................. (29,186) (65,844) (143,110)
--------- ---------- ----------
TOTAL INVESTMENT INCOME/(LOSS)............. 334,123 48,259 (93,486)
--------- ---------- ----------
EXPENSES:
Administration fees...................... 2,463 3,417 6,405
Shareholder service fees................. 14,276 16,466 30,641
Distribution fees........................ 1,942 184 2,875
Accounting fees.......................... 17,076 17,088 17,088
Transfer agent fees...................... 36,535 36,398 36,932
Legal fees............................... 1,184 888 2,368
Audit fees............................... 7,750 7,750 7,400
Printing fees............................ 4,295 5,557 9,427
Registration fees........................ 17,468 16,952 17,466
Amortization of organization costs....... 3,828 3,917 2,893
Other expenses........................... 5,639 4,032 21,229
--------- ---------- ----------
Total expenses before voluntary fee
reductions........................... 112,456 112,649 154,724
Voluntary fee reductions............... (82,181) (42,632) (54,437)
--------- ---------- ----------
Net expenses........................... 30,275 70,017 100,287
--------- ---------- ----------
NET INVESTMENT INCOME/(LOSS)............... 303,848 (21,758) (193,773)
--------- ---------- ----------
REALIZED/UNREALIZED GAINS/(LOSSES) FROM
INVESTMENTS:
Net realized gains/(losses) from
investments, futures and foreign
currency transactions.................. (176,984) 223,700 1,513,003
Change in unrealized
appreciation/(depreciation) from
investments, futures and foreign
currencies............................. (97,937) 2,283,371 1,552,817
--------- ---------- ----------
Net realized/unrealized gains/(losses)
from investments, futures and foreign
currency transactions.................. (274,921) 2,507,071 3,065,820
--------- ---------- ----------
CHANGE IN NET ASSETS RESULTING FROM
OPERATIONS............................... $ 28,927 $2,485,313 $2,872,047
--------- ---------- ----------
--------- ---------- ----------
</TABLE>
See notes to financial statements.
45
<PAGE>
REPUBLIC BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
OCTOBER 31,
-----------------------
1999 1998
---------- ----------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income............................... $ 303,848 $ 250,585
Net realized gains/(losses) from investments and
futures transactions.............................. (176,984) 106,492
Change in unrealized depreciation from investments
and futures transactions.......................... (97,937) (109,447)
---------- ----------
Change in net assets resulting from operations........ 28,927 247,630
---------- ----------
DIVIDENDS TO SHAREHOLDERS:
Net investment income:
Class A (Investor) Shares......................... (280,856) (242,580)
Class B Shares.................................... (18,835) (8,005)
Class C Shares (a)................................ (4,157) --
Net realized gains from investments and futures
transactions:
Class A (Investor) Shares......................... (98,834) --
Class B Shares.................................... (7,515) --
Class C Shares (a)................................ (143) --
In excess of net realized gains from investments and
futures transactions:
Class A (Investor) Shares......................... (10,993) --
Class B Shares.................................... (829) --
---------- ----------
Change in net assets from shareholder dividends..... (422,162) (250,585)
---------- ----------
CHANGE IN NET ASSETS FROM CAPITAL SHARE
TRANSACTIONS........................................ 34,615 2,750,115
---------- ----------
CHANGE IN NET ASSETS.................................. (358,620) 2,747,160
NET ASSETS:
Beginning of period................................. 5,189,430 2,442,270
---------- ----------
End of period....................................... $4,830,810 $5,189,430
---------- ----------
---------- ----------
</TABLE>
(a) The Fund commenced offering Class B Shares on January 6, 1998.
(b) The Fund commenced offering Class C Shares on November 4, 1998.
See notes to financial statements.
46
<PAGE>
REPUBLIC OVERSEAS EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
OCTOBER 31,
-----------------------
1999 1998
---------- ----------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment loss................................. $ (21,758) $ (4,639)
Net realized gains/(losses) from investments and
foreign currency transactions..................... 223,700 (116,085)
Change in unrealized appreciation from investments
and foreign currency transactions................. 2,283,371 111,571
---------- ----------
Change in net assets resulting from operations........ 2,485,313 (9,153)
---------- ----------
DIVIDENDS TO SHAREHOLDERS:
Net investment income:
Class A (Investor) Shares......................... (9,884) (25,605)
Net realized gains from investments and foreign
currency transactions:
Class A (Investor) Shares......................... -- (23,270)
---------- ----------
Change in net assets from shareholder dividends..... (9,884) (48,875)
---------- ----------
CHANGE IN NET ASSETS FROM CAPITAL SHARE
TRANSACTIONS........................................ (261,508) 2,509,845
---------- ----------
CHANGE IN NET ASSETS.................................. 2,213,921 2,451,817
NET ASSETS:
Beginning of period................................. 6,111,469 3,659,652
---------- ----------
End of period....................................... $8,325,390 $6,111,469
---------- ----------
---------- ----------
</TABLE>
See notes to financial statements.
47
<PAGE>
REPUBLIC OPPORTUNITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
OCTOBER 31,
-------------------------
1999 1998
----------- -----------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment loss............................... $ (193,773) $ (143,512)
Net realized gains from investment transactions... 1,513,003 852,630
Change in unrealized appreciation/(depreciation)
from investments................................ 1,552,817 (1,475,208)
----------- -----------
Change in net assets resulting from operations...... 2,872,047 (766,090)
----------- -----------
DIVIDENDS TO SHAREHOLDERS:
In excess of net investment income:
Class A (Investor) Shares....................... (42,676) --
Class B Shares.................................. (1,322) --
Class C Shares (a).............................. (131) --
Net realized gains from investment transactions:
Class A (Investor) Shares....................... (723,716) (379,714)
Class B Shares.................................. (22,200) --
Class C Shares (a).............................. (1,482) --
----------- -----------
Change in net assets from shareholder dividends... (791,527) (379,714)
----------- -----------
CHANGE IN NET ASSETS FROM CAPITAL SHARE
TRANSACTIONS...................................... (1,726,997) 4,649,296
----------- -----------
CHANGE IN NET ASSETS................................ 353,523 3,503,492
NET ASSETS:
Beginning of period............................... 13,486,640 9,983,148
----------- -----------
End of period..................................... $13,840,163 $13,486,640
----------- -----------
----------- -----------
</TABLE>
(a) The Fund commenced offering Class C Shares on November 4, 1998.
See notes to financial statements.
48
<PAGE>
REPUBLIC FUNDS
NOTES TO FINANCIAL STATEMENTS - OCTOBER 31, 1999
1. ORGANIZATION:
The Republic New York Tax-Free Bond Fund (the 'New York Tax-Free Bond
Fund'), Republic Equity Fund (the 'Equity Fund'), Republic Bond Fund (the
'Bond Fund'), Republic Overseas Equity Fund (the 'Overseas Equity Fund') and
Republic Opportunity Fund (the 'Opportunity Fund') (individually a 'Fund',
collectively the 'Funds') are separate series of Republic Funds (the
'Trust'), a Massachusetts business trust organized on April 22, 1987. The
Trust is registered under the Investment Company Act of 1940, as amended
(the 'Act'), as an open-end management investment company.
The investment objective of the New York Tax-Free Bond Fund is to
provide shareholders of the Fund with income exempt from regular Federal,
New York State and New York City personal income taxes.
The investment objective of the Equity Fund is long-term growth of
capital and income without excessive fluctuations in market value.
The Bond Fund, Overseas Equity Fund and Opportunity Fund (individually
a 'Feeder Fund,' collectively the 'Feeder Funds') seek to achieve their
investment objectives by investing all of their investable assets in the
Republic Fixed Income Portfolio, Republic International Equity Portfolio and
Republic Small Cap Equity Portfolio (individually a 'Portfolio,'
collectively the 'Portfolios'), respectively. The investments, at value,
included in the accompanying statements of assets and liabilities reflects
each Feeder Fund's proportionate beneficial interest in the net assets of
their corresponding Portfolio. At October 31, 1999, the Feeder Funds held
proportionate interests in the corresponding Portfolios of the following
amounts:
<TABLE>
<S> <C>
Bond Fund......................................... 2.4%
Overseas Equity Fund.............................. 2.9%
Opportunity Fund.................................. 5.8%
</TABLE>
The performance of each Feeder Fund is directly affected by the
performance of its corresponding Portfolio. The financial statements of each
Portfolio, including its schedule of investments, are included elsewhere
within this report and should be read in conjunction with each corresponding
Feeder Fund's financial statements.
The New York Tax Free Bond and Equity Funds are authorized to issue
four classes of shares, Class A Shares, Class B Shares, Adviser (Class Y)
Shares and beginning November 3, 1998 Class C Shares. Each class of shares
in the two Funds has identical rights and privileges except with respect to
fees paid under shareholder servicing or distribution plans, voting rights
on matters affecting a single class of shares, and the exchange privilege of
each class of shares. The Bond Fund, Overseas Equity Fund and Opportunity
Fund each are authorized to
49
<PAGE>
REPUBLIC FUNDS
NOTES TO FINANCIAL STATEMENTS - OCTOBER 31, 1999
(CONTINUED)
offer three classes of shares which have the same features as the Class A
Shares, Class B Shares and Class C Shares of the New York Tax-Free Bond Fund
and Equity Fund.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of the significant accounting policies
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles.
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of income and expenses for the period. Actual results could differ from
those estimates.
SECURITIES VALUATION:
Bonds and other fixed income securities (other than short-term
obligations but including listed issues) in the New York Tax-Free Bond Fund's
portfolio are valued on the basis of valuations furnished by a pricing
service, the use of which has been approved by the Funds' Board of Trustees.
In making such valuations, the pricing service utilizes both dealer-supplied
valuations and electronic data processing techniques which take into account
appropriate factors such as institutional-size trading in similar groups of
securities, yield, quality, coupon rate, maturity, type of issue, trading
characteristics other than market data and without exclusive reliance upon
quoted prices or exchanges or over-the-counter prices, since such valuations
are believed to reflect more accurately the fair value of such securities.
Short-term debt obligations are valued at amortized cost, which approximates
market value, as determined by the Board of Trustees.
The value of each security held by the Equity Fund is based either on
the last sale price on a national securities exchange, or in the absence of
recorded sales, at the closing bid prices on such exchanges, or at the quoted
bid price in the over-the-counter market. Securities or other assets for
which market quotations are not readily available are valued at fair market
value as determined in good faith by or at the direction of the Board of
Trustees. All debt portfolio securities with a remaining maturity of 60 days
or less are valued at amortized cost, which approximates market value. All
debt portfolio securities with a remaining maturity greater than 60 days are
valued at market value.
SECURITIES TRANSACTIONS AND RELATED INCOME:
Security transactions in the New York Tax-Free Bond Fund and the Equity
Fund 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
50
<PAGE>
REPUBLIC FUNDS
NOTES TO FINANCIAL STATEMENTS - OCTOBER 31, 1999
(CONTINUED)
applicable, the amortization of premium or discount. Dividend income is
recorded on the ex-dividend date. Securities gains and losses are calculated
on the identified cost basis.
The Bond Fund, Overseas Equity Fund and Opportunity Fund record their
proportionate share of the corresponding Portfolio's income, expenses and
realized and unrealized gains and losses on a daily basis. In addition, the
Feeder Funds accrue their own expenses daily as incurred. Realized
gain/losses and changes in unrealized appreciation/depreciation represent the
Feeder Fund's share of such elements allocated from the corresponding
Portfolio.
FUTURES CONTRACTS:
The New York Tax-Free Bond Fund and Equity Fund may invest in financial
futures contracts for the purpose of hedging their existing portfolio
securities or securities it intends to purchase against fluctuations in fair
value caused by changes in prevailing market interest rates. Upon entering
into a financial futures contract, the New York Tax-Free Bond Fund and Equity
Fund are required to pledge to the broker an amount of cash and/or other
assets equal to a certain percentage of the contract amount (initial margin
deposit). Subsequent payments, known as 'variation margin', are made or
received by the New York Tax-Free Bond Fund and Equity Fund each day,
depending on the daily fluctuations in the fair value of the underlying
security. The New York Tax-Free Bond Fund and Equity Fund recognize a gain or
loss equal to the daily variation margin. Should market conditions move
unexpectedly, the New York Tax-Free Bond Fund and the Equity Fund may not
achieve the anticipated benefits of the financial futures contracts and may
realize a loss. The use of futures transactions involves the risk of
imperfect correlation in movements in the price of futures contracts,
interest rates and the underlying hedged assets.
Futures contracts may also be entered into for non-hedging purposes. A
'sale' of futures contract means a contractual obligation to deliver the
securities of foreign currency called for by the contract at a fixed price at
a specified time in the future. A 'purchase' of a futures contract means a
contractual obligation to acquire the securities or foreign currency at a
fixed price at a specified time in the future.
DIVIDENDS TO SHAREHOLDERS:
The New York Tax-Free Bond Fund and the Bond Fund declare all net
investment income daily as dividends to their shareholders and distribute
such dividends monthly. Dividends from net investment income are declared and
distributed quarterly in the case of the Equity Fund, semi-annually in the
case of the Opportunity Fund and annually in the case of the Overseas Equity
Fund.
51
<PAGE>
REPUBLIC FUNDS
NOTES TO FINANCIAL STATEMENTS - OCTOBER 31, 1999
(CONTINUED)
The Funds' net realized capital gains, if any, are distributed to
shareholders at least annually. Additional distributions are also made to the
Funds' shareholders to the extent necessary to avoid the federal excise tax
on certain undistributed income and net capital gains of regulated investment
companies.
The amount of distributions from net investment income and 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 to paid-in capital; temporary differences do not require
reclassification.
As of October 31, 1999, the following reclassifications have been made
to increase (decrease) such accounts with offsetting adjustments made to
capital:
<TABLE>
<CAPTION>
ACCUMULATED ACCUMULATED NET
NET INVESTMENT REALIZED GAIN/(LOSS)
INCOME/(LOSS) ON INVESTMENTS
------------- --------------
<S> <C> <C>
Bond Fund................. $( 1,112) $ 1,112
Overseas Fund............. (27,723) 28,135
Opportunity Fund.......... 237,902 (237,902)
</TABLE>
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. The expenses of the Funds are allocated to each class of shares in
proportion to their respective net asset levels except to expenses allocable
exclusively to a particular class.
FEDERAL INCOME TAXES:
Each Fund is a separate taxable entity for federal tax purposes. Each
Fund has qualified and intends to qualify each year as a 'regulated
investment company' under Subchapter M of the Internal Revenue Code, as
amended and to distribute substantially all of their taxable net investment
income and net realized gains, if any, to their shareholders. Accordingly, no
provision for federal income of excise tax is required.
ORGANIZATION EXPENSES:
Costs incurred in connection with the organization and initial
registration of the Trust, which have been allocated among the Funds, have
been deferred and are being amortized over a five year period, beginning with
each Fund's commencement of operations.
52
<PAGE>
REPUBLIC FUNDS
NOTES TO FINANCIAL STATEMENTS - OCTOBER 31, 1999
(CONTINUED)
3. RELATED PARTY TRANSACTIONS WITH AFFILIATES:
INVESTMENT MANAGEMENT:
Republic National Bank of New York ('Republic' or the 'Investment
Manager'), a wholly owned subsidiary of Republic New York Corporation, a
registered bank holding company, acts as Investment Manager to the New York
Tax-Free Bond Fund. For its services as Investment Manager, Republic is
entitled to receive a fee, computed daily and paid monthly, at an annual
percentage rate of the New York Tax Free Bond Fund's average daily net
assets. Republic New York Corporation has agreed to be acquired by HSBC
Holdings plc.
Republic also serves as Investment Manager to the Equity Fund. As
Investment Manager, Republic provides general supervision over the investment
management functions provided by the Sub-Advisers (as defined below). For its
services as Investment Manager, Republic earns a fee, computed daily and paid
monthly, at an annual percentage rate of the Equity Fund's average daily net
assets.
SUB-ADVISORY:
Alliance Capital Management L.P. and Brinson Partners, Inc.
(collectively, the 'Sub-Advisers') continuously manage the investment
portfolio of the Equity Fund subject to the supervision of the Investment
Manager, pursuant to separate Sub-Advisory Agreements with the Investment
Manager. For their services, the Sub-Advisers were paid fees by the Equity
Fund, computed daily and based on the Equity Fund's average daily net assets
allocated to each of the Sub-Advisers for management, equal on an annual
basis to 0.325% of the net assets up to $50 million, 0.25% of the net assets
over $50 million up to $100 million, 0.20% of the net assets over $100
million up to $200 million, and 0.15% of net assets over $200 million.
ADMINISTRATION:
BISYS Fund Services Limited Partnership ('BISYS') and BISYS Fund
Services Ohio, Inc. ('BISYS Ohio') are wholly-owned subsidiaries of The BISYS
Group, Inc. BISYS Ohio, with whom certain officers of the Trust are
affiliated, serves the Trust as Administrator. Such officers are paid no fees
directly by the Funds for serving as officers of the Trust. Under the terms
of the administration agreement, BISYS Ohio receives from the New York
Tax-Free Bond Fund and Equity Fund a fee accrued daily and paid monthly at an
annual rate of:
53
<PAGE>
REPUBLIC FUNDS
NOTES TO FINANCIAL STATEMENTS - OCTOBER 31, 1999
(CONTINUED)
<TABLE>
<CAPTION>
ADMINISTRATION
BASED ON AVERAGE DAILY NET ASSETS FEE RATE
--------------------------------- --------
<S> <C>
Up to $1 billion..................................... 0.10%
In excess of $1 billion but not exceeding
$2 billion......................................... 0.08%
In excess of $2 billion.............................. 0.07%
</TABLE>
For its services to the Bond Fund, Overseas Equity Fund and Opportunity
Fund, BISYS Ohio receives from each Fund a fee accrued daily and paid monthly
equal on an annual basis to:
<TABLE>
<CAPTION>
ADMINISTRATION
BASED ON AVERAGE DAILY NET ASSETS FEE RATE
--------------------------------- --------
<S> <C>
Up to $1 billion...................................... 0.050%
In excess of $1 billion but not exceeding
$2 billion.......................................... 0.040%
In excess of $2 billion............................... 0.035%
</TABLE>
The fees paid by the Trust are allocated to each Fund based upon its pro
rata share of their net assets.
Prior to April 1, 1999, the fee breakpoints were determined on the basis
of each Fund's average daily net assets. Effective April 1, 1999 the fee
breakpoints are determined on the basis of the aggregate average daily net
assets of all registered investment companies advised by the Investment
Manager for which BISYS serves as Administrator.
DISTRIBUTION PLAN:
The Trust has adopted a non-compensatory Distribution Plan and Agreement
(the 'Plan') pursuant to Rule 12b-1 of the Act. The Plan provides for a
monthly payment by the Funds to the Sponsor for amounts representing actual
expenses incurred by the Sponsor for marketing costs and services rendered in
distributing the Funds' shares at a rate not to exceed 0.25% of the average
daily net assets of Class A Shares and 0.75% of the average daily net assets
of Class B Shares and Class C Shares of the Funds. BISYS, as the Funds'
distributor, recovered $ 28,700 in commissions from sales of the funds of
which none was reallowed to affiliated brokers and dealers.
SHAREHOLDER SERVICING EXPENSES:
The Trust has entered into a Shareholder Servicing Agreement with its
Shareholder Servicing Agent (which currently consists of Republic and its
affiliates) for providing various shareholder services. The aggregate fees
paid to the Distributor pursuant to the Distribution Plan and to shareholder
servicing agents pursuant to the Shareholder Servicing Agreement may not
exceed 0.25% of the average daily net assets of Class A Shares and 1.00% of
the average daily net
54
<PAGE>
REPUBLIC FUNDS
NOTES TO FINANCIAL STATEMENTS - OCTOBER 31, 1999
(CONTINUED)
assets of Class B Shares and Class C Shares. The Distributor also receives
the proceeds of any CDSC imposed on redemptions of Class B Shares.
In addition, the Distributor retains a portion of the front-end sales
charge. The following is a summary of dealer commissions paid to the
Distributor and Republic Bank for Class A, Class B and Class C Shares:
<TABLE>
<CAPTION>
REPUBLIC
DISTRIBUTOR BANK
----------- ----
<S> <C> <C>
Equity Fund........................ $10 $3,580
Bond Fund.......................... 69 --
</TABLE>
OTHER:
Effective April 17, 1999 BISYS Ohio replaced Investors Bank & Trust
Company as fund accountant to the Funds and as Transfer Agent for Class A
Shares and Adviser (Class Y) Shares. BISYS Ohio acted as transfer agent for
all other classes of each Fund throughout the fiscal year. In addition,
Republic serves as custodian for the Equity Fund and New York Tax-Free Bond
Fund. For services to the Funds, BISYS Ohio and Republic receive an annual
per fund fee computed daily and paid monthly.
VOLUNTARY FEE REDUCTIONS:
The Manager and BISYS have voluntarily agreed to waive a portion of
their fees, and to the extent necessary, reimburse the Funds for certain
expenses. For the year ended October 31, 1999, expenses of the Funds were
voluntarily reduced by amounts as detailed below:
<TABLE>
<CAPTION>
INVESTMENT MANAGEMENT FEES
--------------------------
ANNUAL FEES AS
A PERCENTAGE OF
AVERAGE DAILY FEES VOLUNTARILY VOLUNTARILY
NET ASSETS REDUCED REIMBURSED
---------- ------- ----------
<S> <C> <C> <C>
New York Tax-Free Bond
Fund.................... 0.250% $77,672 $56
Equity Fund............... 0.175% -- --
Bond Fund................. -- 82,181 --
Overseas Fund............. -- 42,632 --
Opportunity Fund.......... -- 54,437 --
</TABLE>
There was no waiver of fees or reimbursement of expenses for the Equity
Fund for the year ended October 31, 1999.
4. INVESTMENT TRANSACTIONS:
Purchases of and proceeds from sales and maturities of investments,
excluding short-term securities, for the Funds for the year ended October
31, 1999 totaled:
55
<PAGE>
REPUBLIC FUNDS
NOTES TO FINANCIAL STATEMENTS - OCTOBER 31, 1999
(CONTINUED)
<TABLE>
<CAPTION>
PURCHASES SALES
--------- -----
<S> <C> <C>
New York Tax-Free Bond Fund............ $ 14,020,486 $ 15,982,866
Equity Fund............................ 194,164,060 185,979,335
</TABLE>
5. CONCENTRATION OF CREDIT RISK:
The New York Tax-Free Bond Fund invests primarily in debt obligations
issued by the State of New York and its respective political subdivisions,
agencies and public authorities. 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.
The New York Tax-Free Bond Fund had the following concentrations by
municipal funding source at October 31, 1999 (as a percentage of total
investments):
<TABLE>
<S> <C>
Airport......................................... 2.82%
Development..................................... 4.48%
Facilities...................................... 9.26%
General Obligation.............................. 17.87%
Higher Education................................ 16.22%
Investment Companies............................ 0.73%
Medical......................................... 11.45%
Multifamily Housing............................. 7.76%
Nursing Homes................................... 1.46%
Pollution Control............................... 3.65%
Power........................................... 3.81%
Single Family Housing........................... 7.15%
Transportation.................................. 10.59%
Utilities....................................... 2.75%
------
100.00%
------
------
</TABLE>
56
<PAGE>
REPUBLIC FUNDS
NOTES TO FINANCIAL STATEMENTS - OCTOBER 31, 1999
(CONTINUED)
6. CAPITAL SHARE TRANSACTIONS:
Transactions in capital and shares of beneficial interest by class for
the Fund's for the year ended October 31, 1999:
<TABLE>
<CAPTION>
NEW YORK TAX-FREE
BOND FUND EQUITY FUND
-------------------------- ---------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
OCT. 31, OCT. 31, OCT. 31, OCT. 31,
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A SHARES:
Proceeds from shares issued....................... $ 7,798,622 $ 9,053,946 $ 5,496,804 $ 25,237,948
Dividends reinvested.............................. 955,019 987,570 608,893 802,213
Cost of shares redeemed........................... (12,646,454) (8,280,543) (5,897,024) (16,859,901)
------------ ----------- ------------ ------------
Class A capital transactions...................... $ (3,892,813) $ 1,760,973 $ 208,673 $ 9,180,260
------------ ----------- ------------ ------------
CLASS B SHARES:
Proceeds from shares issued....................... $ 22,456 $ 714,872 $ 696,169 $ 1,003,947
Dividends reinvested.............................. 22,028 5,467 22,102 288
Cost of shares redeemed........................... (50,000) (105,064) (84,128) (68,027)
------------ ----------- ------------ ------------
Class B capital transactions...................... $ (5,516) $ 615,275 $ 634,143 $ 936,208
------------ ----------- ------------ ------------
CLASS C SHARES:
Proceeds from shares issued....................... $ 378,258 $ -- $ 1,634,402 $ --
Dividends reinvested.............................. 5,024 -- 2,182 --
Cost of shares redeemed........................... (108,371) -- (27,532) --
------------ ----------- ------------ ------------
Class C capital transactions...................... $ 274,911 $ -- $ 1,609,052 $ --
------------ ----------- ------------ ------------
ADVISER (CLASS Y) SHARES:
Proceeds from shares issued....................... $ 850,001 $ 1,135,320 $ 14,387,714 $180,741,731
Dividends reinvested.............................. 119,112 126,861 5,707,524 8,466,531
Cost of shares redeemed........................... (296,012) (1,749,072) (21,618,821) (57,275,579)
------------ ----------- ------------ ------------
Adviser (Class Y) capital transactions............ $ 673,101 $ (486,891) $ (1,523,583) $131,932,683
------------ ----------- ------------ ------------
Change in net assets from capital transactions....... $ (2,950,317) $ 1,889,357 $ 928,285 $142,049,151
------------ ----------- ------------ ------------
------------ ----------- ------------ ------------
SHARE TRANSACTIONS:
CLASS A SHARES:
Issued............................................ 719,171 840,385 283,248 1,624,241
Reinvested........................................ 89,403 91,604 34,417 54,888
Redeemed.......................................... (1,183,310) (767,305) (302,849) (1,113,199)
------------ ----------- ------------ ------------
Change in Class A Shares.......................... (374,736) 164,684 14,816 565,930
------------ ----------- ------------ ------------
CLASS B SHARES:
Issued............................................ 2,086 66,033 36,475 60,642
Reinvested........................................ 2,066 505 1,264 17
Redeemed.......................................... (4,744) (9,931) (4,317) (4,133)
------------ ----------- ------------ ------------
Change in Class B Shares.......................... (592) 56,607 33,422 56,526
------------ ----------- ------------ ------------
CLASS C SHARES:
Issued............................................ 35,104 -- 83,258 --
Reinvested........................................ 476 -- 113 --
Redeemed.......................................... (10,290) -- (1,383) --
------------ ----------- ------------ ------------
Change in Class C Shares.......................... 25,290 -- 81,988 --
------------ ----------- ------------ ------------
ADVISER (CLASS Y) SHARES:
Issued............................................ 81,145 105,274 740,789 11,008,053
Reinvested........................................ 11,145 11,779 321,224 579,552
Redeemed.......................................... (27,424) (162,716) (1,145,548) (3,374,186)
------------ ----------- ------------ ------------
Change in Adviser (Class Y) Shares................ 64,866 (45,663) (83,535) 8,213,419
------------ ----------- ------------ ------------
Change in shares from capital share transactions..... (285,172) 175,628 46,691 8,835,875
------------ ----------- ------------ ------------
------------ ----------- ------------ ------------
</TABLE>
57
<PAGE>
REPUBLIC FUNDS
NOTES TO FINANCIAL STATEMENTS - OCTOBER 31, 1999
(CONTINUED)
<TABLE>
<CAPTION>
BOND FUND OVERSEAS EQUITY FUND OPPORTUNITY FUND
------------------------- ------------------------- --------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
OCT. 31, OCT. 31, OCT. 31, OCT. 31, OCT. 31, OCT. 31,
1999 1998 1999 1998 1999 1998
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A SHARES:
Proceeds from shares
issued................ $ 896,358 $ 7,724,815 $ 1,626,201 $ 8,741,117 $ 1,578,167 $ 15,752,214
Dividends reinvested.... 383,348 214,559 9,884 48,697 766,392 379,185
Cost of shares
redeemed.............. (1,408,465) (5,554,605) (2,010,092) (6,327,900) (4,459,217) (11,862,429)
----------- ----------- ----------- ----------- ----------- ------------
Class A capital
transactions.......... $ (128,759) $ 2,384,769 $ (374,007) $ 2,461,914 $(2,114,658) $ 4,268,970
----------- ----------- ----------- ----------- ----------- ------------
CLASS B SHARES:
Proceeds from shares
issued................ $ 33,260 $ 358,446 $ 31,518 $ 55,562 $ 196,257 $ 386,074
Dividends reinvested.... 26,282 7,000 -- -- 21,745 --
Cost of shares
redeemed.............. (52,075) (100) (4,256) (7,631) (96,495) (5,748)
----------- ----------- ----------- ----------- ----------- ------------
Class B capital
transactions.......... $ 7,467 $ 365,346 $ 27,262 $ 47,931 $ 121,507 $ 380,326
----------- ----------- ----------- ----------- ----------- ------------
CLASS C SHARES:
Proceeds from shares
issued................ $ 168,677 $ -- $ 85,237 $ -- $ 270,095 $ --
Dividends reinvested.... 3,536 -- -- -- 1,613 --
Cost of shares
redeemed.............. (16,306) -- -- -- (5,554) --
----------- ----------- ----------- ----------- ----------- ------------
Class C capital
transactions.......... $ 155,907 $ -- $ 85,237 $ -- $ 266,154 $ --
----------- ----------- ----------- ----------- ----------- ------------
ADVISER (CLASS Y) SHARES:
Proceeds from shares
issued................ $ -- $ -- $ -- $ -- $ -- $ --
Dividends reinvested.... -- -- -- -- -- --
Cost of shares
redeemed.............. -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ------------
Adviser capital
transactions.......... $ -- $ -- $ -- $ -- $ -- $ --
----------- ----------- ----------- ----------- ----------- ------------
Change in net assets from
capital transactions...... $ 34,615 $ 2,750,115 $ (261,508) $ 2,509,845 $(1,726,997) $ 4,649,296
----------- ----------- ----------- ----------- ----------- ------------
----------- ----------- ----------- ----------- ----------- ------------
</TABLE>
58
<PAGE>
REPUBLIC FUNDS
NOTES TO FINANCIAL STATEMENTS - OCTOBER 31, 1999
(CONTINUED)
<TABLE>
<CAPTION>
BOND FUND OVERSEAS EQUITY FUND OPPORTUNITY FUND
------------------------- ------------------------- --------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
OCT. 31, OCT. 31, OCT. 31, OCT. 31, OCT. 31, OCT. 31,
1999 1998 1999 1998 1999 1998
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
SHARE TRANSACTIONS:
CLASS A SHARES:
Issued.................. 87,644 729,278 104,324 773,666 132,922 1,328,366
Reinvested.............. 37,693 20,355 799 4,336 67,901 33,527
Redeemed................ (141,248) (523,028) (144,937) (572,805) (373,048) (1,009,731)
----------- ----------- ----------- ----------- ----------- ------------
Change in Class A
Shares................ (15,911) 226,605 (39,814) 205,197 (172,225) 352,162
----------- ----------- ----------- ----------- ----------- ------------
CLASS B SHARES:
Issued.................. 3,342 33,955 2,028 4,346 16,198 31,384
Reinvested.............. 2,582 664 -- -- 1,934 --
Redeemed................ (5,260) (9) (278) (724) (8,008) (488)
----------- ----------- ----------- ----------- ----------- ------------
Change in Class B
Shares................ 664 34,610 1,750 3,622 10,124 30,896
----------- ----------- ----------- ----------- ----------- ------------
CLASS C SHARES:
Issued.................. 16,745 -- 5,817 -- 22,386 --
Reinvested.............. 357 -- -- -- 143 --
Redeemed................ (1,587) -- -- -- (489) --
----------- ----------- ----------- ----------- ----------- ------------
Change in Class C
Shares................ 15,515 -- 5,817 -- 22,040 --
----------- ----------- ----------- ----------- ----------- ------------
ADVISER (CLASS Y) SHARES:
Issued.................. -- -- -- -- -- --
Reinvested.............. -- -- -- -- -- --
Redeemed................ -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ------------
Change in Adviser
Shares................ -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ------------
Change in shares from
capital share
transactions.............. 268 261,215 (32,247) 208,819 (140,061) 383,058
----------- ----------- ----------- ----------- ----------- ------------
----------- ----------- ----------- ----------- ----------- ------------
</TABLE>
59
<PAGE>
REPUBLIC FUNDS
NOTES TO FINANCIAL STATEMENTS - OCTOBER 31, 1999
(CONTINUED)
7. FEDERAL INCOME TAX INFORMATION (UNAUDITED):
For the taxable year ended October 31, 1999, the following percentages
of income dividends paid by the Funds qualify for the dividends received
deduction available to corporations:
<TABLE>
<CAPTION>
QUALIFIED
DIVIDEND
INCOME
------
<S> <C>
Equity Fund.................................... 98.03%
</TABLE>
For federal income tax purposes, the following Funds have capital loss
carryforwards as of October 31, 1999, which are available to offset future
capital gains, if any:
<TABLE>
<CAPTION>
AMOUNT EXPIRES
------ -------
<S> <C> <C>
New York Tax-Free Bond Fund........... $134,443 2007
Bond Fund............................. 174,274 2007
</TABLE>
During the year ended October 31, 1999, the New York Tax-Free Bond Fund
paid $1,337,443 tax-exempt income distributions.
During the year ended October 31, 1999, the Funds declared long-term
capital gain distributions in the following amounts:
<TABLE>
<CAPTION>
20% CAPITAL GAINS
-----------------
<S> <C>
New York Tax-Free Bond Fund............. $ 45,980
Equity Fund............................. 5,453,805
Bond Fund............................... 6,190
Overseas Fund........................... 8,316
Opportunity Fund........................ 65,062
</TABLE>
The Overseas Equity Fund will pass through foreign source income of
$127,288 and foreign taxes paid of $13,185.
60
<PAGE>
REPUBLIC NEW YORK TAX-FREE BOND FUND
FINANCIAL HIGHLIGHTS - CLASS A SHARES
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEARS ENDED OCTOBER 31, MAY 1, 1995
------------------------------------ TO OCTOBER 31,
1999 1998 1997 1996 1995(e)
------ ------ ------ ------ --------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD................. $10.93 $10.64 $10.30 $10.38 $10.00
------ ------ ------ ------ ------
INVESTMENT ACTIVITIES:
Net investment income..... 0.46 0.47 0.45 0.54 0.25
Net realized and
unrealized
gains/(losses) from
investment
transactions............ (0.83) 0.33 0.36 (0.01) 0.38
------ ------ ------ ------ ------
Total from investment
activities................ (0.37) 0.80 0.81 0.53 0.63
------ ------ ------ ------ ------
DIVIDENDS:
Net investment income..... (0.46) (0.47) (0.45) (0.54) (0.25)
In excess of net
investment income....... (0.00)* -- -- -- --
Net realized gains from
investment
transactions............ (0.02) (0.04) (0.02) (0.07) --
------ ------ ------ ------ ------
Total dividends............. (0.48) (0.51) (0.47) (0.61) (0.25)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF
PERIOD.................... $10.08 $10.93 $10.64 $10.30 $10.38
------ ------ ------ ------ ------
------ ------ ------ ------ ------
TOTAL RETURN (EXCLUDES SALES
CHARGE)................... (3.62%) 7.65% 8.22% 4.75% 6.39%(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of
period (000's).......... $17,568 $23,153 $20,794 $6,353 $6,908
Ratio of expenses to
average net assets...... 0.96% 0.95% 0.92% 0.58% 0.50%(b)
Ratio of net investment
income to average net
assets.................. 4.22% 4.28% 4.46% 4.78% 4.91%(b)
Ratio of expenses to
average net
assets (a).............. 1.21% 1.20% 1.55% 2.21% 2.40%(b)
Portfolio turnover (d).... 46.56% 100.35% 163.46% 178.11% 130.00%
</TABLE>
* Less than $0.01 per share.
(a) During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole,
without distinguishing between the classes of shares issued.
(e) Period from commencement of operations.
See notes to financial statements.
61
<PAGE>
REPUBLIC NEW YORK TAX-FREE BOND FUND
FINANCIAL HIGHLIGHTS - CLASS B SHARES
<TABLE>
<CAPTION>
FOR THE FOR THE PERIOD
YEAR ENDED JANUARY 6, 1998
OCTOBER 31, TO OCTOBER 31,
1999 1998(e)
----------- ---------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD............. $10.92 $10.81
------ ------
INVESTMENT ACTIVITIES:
Net investment income.......................... 0.38 0.37
Net realized and unrealized gains/(losses) from
investment transactions...................... (0.83) 0.11
------ ------
Total from investment activities................. (0.45) 0.48
------ ------
DIVIDENDS:
Net investment income.......................... (0.38) (0.37)
In excess of net investment income............. (0.00)* --
Net realized gains from investment
transactions................................. (0.02) --
------ ------
Total dividends.................................. (0.40) (0.37)
------ ------
NET ASSET VALUE, END OF PERIOD................... $10.07 $10.92
------ ------
------ ------
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE)........ (4.30%) 4.50%(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000's)............ $564 $618
Ratio of expenses to average net assets........ 1.71% 1.70%(b)
Ratio of net investment income to average net
assets....................................... 3.48% 3.53%(b)
Ratio of expenses to average net assets (a).... 1.96% 1.95%(b)
Portfolio turnover (d)......................... 46.56% 100.35%
</TABLE>
* Less than $0.01 per share.
(a) During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole,
without distinguishing between the classes of shares issued.
(e) Period from commencement of operations.
See notes to financial statements.
62
<PAGE>
REPUBLIC NEW YORK TAX-FREE BOND FUND
FINANCIAL HIGHLIGHTS - CLASS C SHARES
<TABLE>
<CAPTION>
FOR THE PERIOD
NOVEMBER 4,
1998
TO OCTOBER 31,
1999(e)
---------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $10.90
------
INVESTMENT ACTIVITIES:
Net investment income..................................... 0.34
Net realized and unrealized losses from investment
transactions............................................ (0.77)
------
Total from investment activities............................ (0.43)
------
DIVIDENDS:
Net investment income..................................... (0.34)
Net realized gains from investment transactions........... (0.02)
------
Total dividends............................................. (0.36)
------
NET ASSET VALUE, END OF PERIOD.............................. $10.11
------
------
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE)................... (4.10%)(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000's)....................... $256
Ratio of expenses to average net assets................... 1.70%(b)
Ratio of net investment income to average net assets...... 3.46%(b)
Ratio of expenses to average net assets (a)............... 2.02%(b)
Portfolio turnover (d).................................... 46.56%
</TABLE>
* Less than $0.01 per share.
(a) During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole,
without distinguishing between the classes of shares issued.
(e) Period from commencement of operations.
See notes to financial statements.
63
<PAGE>
REPUBLIC NEW YORK TAX-FREE BOND FUND
FINANCIAL HIGHLIGHTS - CLASS Y (ADVISER) SHARES
<TABLE>
<CAPTION>
FOR THE
PERIOD
FOR THE YEARS JULY 1, 1996
ENDED OCTOBER 31, TO OCTOBER
-------------------------- 31,
1999 1998 1997 1996(e)
------ ------ ------ --------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD.............................. $10.93 $10.64 $10.30 $10.18
------ ------ ------ ------
INVESTMENT ACTIVITIES:
Net investment income............... 0.48 0.49 0.46 0.16
Net realized and unrealized
gains/(losses) from investment
transactions...................... (0.84) 0.33 0.36 0.12
------ ------ ------ ------
Total from investment activities...... (0.36) 0.82 0.82 0.28
------ ------ ------ ------
DIVIDENDS:
Net investment income............... (0.48) (0.49) (0.46) (0.16)
In excess of net investment
income............................ (0.00)* -- -- --
Net realized gains from investment
transactions...................... (0.02) (0.04) (0.02) --
------ ------ ------ ------
Total dividends....................... (0.50) (0.53) (0.48) (0.16)
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD........ $10.07 $10.93 $10.64 $10.30
------ ------ ------ ------
------ ------ ------ ------
TOTAL RETURN.......................... (3.45%) 7.87% 8.38% 3.52%(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period
(000's)........................... $8,619 $8,641 $8,901 $8,233
Ratio of expenses to average net
assets............................ 0.71% 0.70% 0.78% 0.60%(b)
Ratio of net investment income to
average
net assets........................ 4.49% 4.53% 4.66% 4.78%(b)
Ratio of expenses to average net
assets (a)........................ 0.96% 0.95% 1.27% 2.26%(b)
Portfolio turnover (d).............. 46.56% 100.35% 163.46% 178.11%
</TABLE>
* Less than $0.01 per share.
(a) During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole,
without distinguishing between the classes of shares issued.
(e) Period from commencement of operations.
See notes to financial statements.
64
<PAGE>
REPUBLIC EQUITY FUND
FINANCIAL HIGHLIGHTS - CLASS A SHARES
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEARS ENDED OCTOBER 31, AUGUST 1, 1995
--------------------------------- TO OCTOBER 31,
1999 1998 1997 1996 1995(e)
------ ------ ------ ------ ----------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.... $16.95 $15.00 $11.93 $10.24 $10.00
------ ------ ------ ------ ------
INVESTMENT ACTIVITIES:
Net investment income................. 0.05 0.05 0.07 0.19 0.04
Net realized and unrealized gains from
investment transactions............. 3.32 2.80 3.32 1.67 0.24
------ ------ ------ ------ ------
Total from investment activities........ 3.37 2.85 3.39 1.86 0.28
------ ------ ------ ------ ------
DIVIDENDS:
Net investment income................. (0.04) (0.05) (0.10) (0.17) (0.04)
Net realized gains from investment
transactions........................ (0.39) (0.85) (0.22) -- --
------ ------ ------ ------ ------
Total dividends......................... (0.43) (0.90) (0.32) (0.17) (0.04)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD.......... $19.89 $16.95 $15.00 $11.93 $10.24
------ ------ ------ ------ ------
------ ------ ------ ------ ------
TOTAL RETURN (EXCLUDES SALES CHARGE).... 20.23% 19.98% 28.92% 18.30% 2.75%(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000's)... $27,942 $23,559 $12,363 $3,918 $22,092
Ratio of expenses to average net
assets.............................. 0.94% 1.03% 1.21% 1.28% 1.47%(b)
Ratio of net investment income to
average net assets.................. 0.26% 0.30% 0.48% 1.83% 1.59%(b)
Ratio of expenses to average net
assets (a).......................... 0.94% 1.03% 1.28% 1.59% 2.44%(b)
Portfolio turnover (d)................ 70.85% 176.34% 99.02% 86.18% 2.00%(b)
</TABLE>
(a) During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole,
without distinguishing between the classes of shares issued.
(e) Period from commencement of operations.
See notes to financial statements.
65
<PAGE>
REPUBLIC EQUITY FUND
FINANCIAL HIGHLIGHTS - CLASS B SHARES
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE JANUARY 6, 1998
YEAR ENDED TO OCTOBER 31,
OCTOBER 31, 1999 1998(e)
---------------- -------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.... $16.92 $14.88
------ ------
INVESTMENT ACTIVITIES:
Net investment loss................... (0.08) (0.01)
Net realized and unrealized gains from
investment transactions............. 3.30 2.07
------ ------
Total from investment activities........ 3.22 2.06
------ ------
DIVIDENDS:
Net investment income................. -- (0.02)
In excess of net investment income.... (0.01) --
Net realized gains from investment
transactions........................ (0.39) --
------ ------
Total dividends......................... (0.40) (0.02)
------ ------
NET ASSET VALUE, END OF PERIOD.......... $19.74 $16.92
------ ------
------ ------
TOTAL RETURN (EXCLUDES REDEMPTION
CHARGE)............................... 19.32% 13.84%(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000's)... $1,775 $956
Ratio of expenses to average net
assets.............................. 1.69% 1.78%(b)
Ratio of net investment loss to
average net assets.................. (0.50%) (0.45%)(b)
Ratio of expenses to average net
assets (a).......................... 1.69% 1.78%(b)
Portfolio turnover (d)................ 70.85% 176.34%
</TABLE>
(a) During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole,
without distinguishing between the classes of shares issued.
(e) Period from commencement of operations.
See notes to financial statements.
66
<PAGE>
REPUBLIC EQUITY FUND
FINANCIAL HIGHLIGHTS - CLASS C SHARES
<TABLE>
<CAPTION>
FOR THE PERIOD
NOVEMBER 4, 1998
TO OCTOBER 31,
1999(e)
----------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................... $17.08
------
INVESTMENT ACTIVITIES:
Net investment income................................. --
Net realized and unrealized gains from investment
transactions........................................ 3.19
------
Total from investment activities........................ 3.19
------
DIVIDENDS:
Net investment income................................. --
In excess of net investment income.................... (0.05)
Net realized gains from investment transactions....... (0.39)
------
Total dividends......................................... (0.44)
------
NET ASSET VALUE, END OF PERIOD.......................... $19.83
------
------
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE)............... 19.05%(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000's)................... $1,626
Ratio of expenses to average net assets............... 1.33%(b)
Ratio of net investment loss to average net assets.... (0.16%)(b)
Ratio of expenses to average net assets (a)........... 1.33%(b)
Portfolio turnover (d)................................ 70.85%
</TABLE>
(a) During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole,
without distinguishing between the classes of shares issued.
(e) Period from commencement of operations.
See notes to financial statements.
67
<PAGE>
REPUBLIC EQUITY FUND
FINANCIAL HIGHLIGHTS - CLASS Y (ADVISER) SHARES
<TABLE>
<CAPTION>
FOR THE YEARS ENDED FOR THE PERIOD
OCTOBER 31, JULY 1, 1996
------------------------- TO OCTOBER 31,
1999 1998 1997 1996(e)
------ ------ ------ --------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD......... $16.95 $15.01 $11.93 $11.49
------ ------ ------ ------
INVESTMENT ACTIVITIES:
Net investment income...................... 0.10 0.08 0.10 0.08
Net realized and unrealized gains from
investment transactions.................. 3.32 2.79 3.33 0.42
------ ------ ------ ------
Total from investment activities............. 3.42 2.87 3.43 0.50
------ ------ ------ ------
DIVIDENDS:
Net investment income...................... (0.09) (0.08) (0.13) (0.06)
Net realized gains from investment
transactions............................. (0.39) (0.85) (0.22) --
------ ------ ------ ------
Total dividends.............................. (0.48) (0.93) (0.35) (0.06)
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD............... $19.89 $16.95 $15.01 $11.93
------ ------ ------ ------
------ ------ ------ ------
TOTAL RETURN................................. 20.59% 20.16% 29.28% 4.72%(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000's)........ $245,342 $210,498 $63,060 $33,155
Ratio of expenses to average net assets.... 0.69% 0.78% 0.96% 0.66%(b)
Ratio of net investment income to average
net assets............................... 0.51% 0.55% 0.77% 1.93%(b)
Ratio of expenses to average net
assets (a)............................... 0.69% 0.78% 1.03% 0.97%(b)
Portfolio turnover (d)..................... 70.85% 176.34% 99.02% 86.18%
</TABLE>
(a) During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole,
without distinguishing between the classes of shares issued.
(e) Period from commencement of operations.
See notes to financial statements.
68
<PAGE>
REPUBLIC BOND FUND
FINANCIAL HIGHLIGHTS - CLASS A (INVESTOR) SHARES
<TABLE>
<CAPTION>
FOR THE YEARS ENDED FOR THE PERIOD
OCTOBER 31, AUGUST 26, 1996
------------------------ TO OCTOBER 31,
1999 1998 1997 1996(d)
------ ------ ------ ----------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD........................ $10.51 $10.50 $10.26 $10.00
------ ------ ------ ------
INVESTMENT ACTIVITIES:
Net investment income......... 0.57 0.59 0.57 0.10
Net realized and unrealized
gains/(losses) from
investments and futures
transactions................ (0.49) 0.01 0.30 0.26
------ ------ ------ ------
Total from investment
activities.................... 0.08 0.60 0.87 0.36
------ ------ ------ ------
DIVIDENDS:
Net investment income......... (0.57) (0.59) (0.57) --
Net realized gains from
investments and futures
transactions................ (0.22) -- (0.06) (0.10)
In excess of net realized
gains
from investments and futures
transactions................ (0.02) -- -- --
------ ------ ------ ------
Total dividends................. (0.81) (0.59) (0.63) (0.10)
------ ------ ------ ------
NET ASSET VALUE, END OF
PERIOD........................ $ 9.78 $10.51 $10.50 $10.26
------ ------ ------ ------
------ ------ ------ ------
Total return (excludes sales
charge)....................... 0.68% 5.83% 8.71% 3.61%(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period
(000's)..................... $4,331 $4,826 $2,439 $21
Ratio of expenses to average
net assets.................. 1.07% 1.10% 1.10% 1.04%(b)
Ratio of net investment income
to average net assets....... 5.84% 5.51% 5.40% 5.23%(b)
Ratio of expenses to average
net assets (a).............. 2.62% 1.61% 5.24% 280.50%(b)
Portfolio turnover (e)........ 433.26% 126.40% 349.00% 152.00%
</TABLE>
(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.
(c) Not annualized.
(d) Period from commencement of operations.
(e) Portfolio turnover is calculated on the basis of the Portfolio.
See notes to financial statements.
69
<PAGE>
REPUBLIC BOND FUND
FINANCIAL HIGHLIGHTS - CLASS B SHARES
<TABLE>
<CAPTION>
FOR THE FOR THE PERIOD
YEAR ENDED JANUARY 6, 1998
OCTOBER 31, TO OCTOBER 31,
1999 1998(e)
----------- ----------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........... $10.51 $10.63
------ ------
INVESTMENT ACTIVITIES:
Net investment income........................ 0.49 0.41
Net realized and unrealized losses from
investments and futures transactions....... (0.49) (0.12)
------ ------
Total from investment activities............... 0.00 0.29
------ ------
DIVIDENDS:
Net investment income........................ (0.49) (0.41)
Net realized gains from investments and
futures transactions....................... (0.22) --
In excess of net realized gains from
investments and futures transactions....... (0.02) --
------ ------
Total dividends................................ (0.73) (0.41)
------ ------
NET ASSET VALUE, END OF PERIOD................. $9.78 $10.51
------ ------
------ ------
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE)...... (0.01%) 2.84%(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000's).......... $345 $364
Ratio of expenses to average net assets...... 1.79% 1.85%(b)
Ratio of net investment income to average net
assets..................................... 5.13% 4.76%(b)
Ratio of expenses to average net assets
(a)........................................ 3.37% 2.36%(b)
Portfolio turnover (e)....................... 433.26% 126.40%
</TABLE>
(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.
(c) Not annualized.
(d) Period from commencement of operations.
(e) Portfolio turnover is calculated on the basis of the Portfolio.
See notes to financial statements.
70
<PAGE>
REPUBLIC BOND FUND
FINANCIAL HIGHLIGHTS - CLASS C SHARES
<TABLE>
<CAPTION>
FOR THE PERIOD
NOVEMBER 4, 1998
TO OCTOBER 31,
1999(d)
----------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $10.46
------
INVESTMENT ACTIVITIES:
Net investment income..................................... 0.47
Net realized and unrealized losses from investments and
futures transactions.................................... (0.45)
------
Total from investment activities............................ 0.02
------
DIVIDENDS:
Net investment income..................................... (0.47)
Net realized gains from investments and futures
transactions............................................ (0.24)
------
Total dividends............................................. (0.71)
------
NET ASSET VALUE, END OF PERIOD.............................. $9.77
------
------
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE)................... 0.11%(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000's)....................... $152
Ratio of expenses to average net assets................... 1.95%(b)
Ratio of net investment income to average net assets...... 4.96%(b)
Ratio of expenses to average net assets (a)............... 3.50%(b)
Portfolio turnover (e).................................... 433.26%
</TABLE>
(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.
(c) Not annualized.
(d) Period from commencement of operations.
(e) Portfolio turnover is calculated on the basis of the Portfolio.
See notes to financial statements.
71
<PAGE>
REPUBLIC OVERSEAS EQUITY FUND
FINANCIAL HIGHLIGHTS - CLASS A (INVESTOR) SHARES
<TABLE>
<CAPTION>
FOR THE YEARS ENDED FOR THE PERIOD
OCTOBER 31, AUGUST 26, 1996
------------------------ TO OCTOBER 31,
1999 1998 1997 1996(d)
------ ------ ------ ----------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD................. $11.64 $11.57 $10.15 $10.00
------ ------ ------ ------
INVESTMENT ACTIVITIES:
Net investment loss..... (0.04) (0.01) (0.00)* --
Net realized and
unrealized gains from
investments and
foreign currency
transactions.......... 5.32 0.23 1.43 0.15
------ ------ ------ ------
Total from investment
activities.............. 5.28 0.22 1.43 0.15
------ ------ ------ ------
DIVIDENDS:
Net investment income... (0.02) (0.08) (0.01) --
Net realized gains from
investments and
foreign currency
transactions.......... -- (0.07) (0.00)* --
------ ------ ------ ------
Total dividends........... (0.02) (0.15) (0.01) --
------ ------ ------ ------
NET ASSET VALUE, END OF
PERIOD.................. $16.90 $11.64 $11.57 $10.15
------ ------ ------ ------
------ ------ ------ ------
TOTAL RETURN (EXCLUDES
SALES CHARGE)........... 45.41% 1.96% 14.08% 1.50%(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of
period (000's)........ $8,138 $6,070 $3,660 $142
Ratio of expenses to
average net assets.... 1.86% 1.77% 1.71% 1.69%(b)
Ratio of net investment
income/(loss) to
average net assets.... (0.30%) (0.08%) (0.16%) 0.05%(b)
Ratio of expenses to
average net
assets (a)............ 2.44% 1.86% 4.10% 33.34%(b)
Portfolio turnover
(e)................... 34.26% 40.47% 30.00% 23.30%
</TABLE>
* Less than $0.01 per share.
(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.
(c) Not annualized.
(d) Period from commencement of operations.
(e) Portfolio turnover is calculated on the basis of the Portfolio.
See notes to financial statements.
72
<PAGE>
REPUBLIC OVERSEAS EQUITY FUND
FINANCIAL HIGHLIGHTS - CLASS B SHARES
<TABLE>
<CAPTION>
FOR THE FOR THE PERIOD
YEAR ENDED JANUARY 6, 1998
OCTOBER 31, TO OCTOBER 31,
1999 1998(d)
----------- ----------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.. $11.57 $11.45
------ ------
INVESTMENT ACTIVITIES:
Net investment loss................. (0.12) (0.07)
Net realized and unrealized gains
from investments and foreign
currency transactions............. 5.24 0.19
------ ------
Total from investment activities...... 5.12 0.12
------ ------
NET ASSET VALUE, END OF PERIOD........ $16.69 $11.57
------ ------
------ ------
TOTAL RETURN (EXCLUDES REDEMPTION
CHARGE)............................. 44.25% 1.05%(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period
(000's)........................... $90 $42
Ratio of expenses to average net
assets............................ 2.59% 2.52%(b)
Ratio of net investment
income/(loss) to average net
assets (a)........................ (1.04%) (0.83%)(b)
Ratio of expenses to average net
assets (a)........................ 3.24% 2.61%(b)
Portfolio turnover (e).............. 34.26% 40.47%
</TABLE>
(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.
(c) Not annualized.
(d) Period from commencement of operations.
(e) Portfolio turnover is calculated on the basis of the Portfolio.
See notes to financial statements.
73
<PAGE>
REPUBLIC OVERSEAS EQUITY FUND
FINANCIAL HIGHLIGHTS - CLASS C SHARES
<TABLE>
<CAPTION>
FOR THE PERIOD
NOVEMBER 4, 1998
TO OCTOBER 31, 1999(d)
----------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................... $11.88
------
INVESTMENT ACTIVITIES:
Net investment loss.................................. (0.08)
Net realized and unrealized gains from investments
and foreign currency transactions.................. 5.04
------
Total from investment activities....................... 4.96
------
NET ASSET VALUE, END OF PERIOD......................... $16.84
------
------
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE).............. 41.84%(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000's).................. $98
Ratio of expenses to average net assets.............. 2.57%(b)
Ratio of net investment loss to average net assets... (1.01%)(b)
Ratio of expenses to average net assets (a).......... 3.15%(b)
Portfolio turnover (e)............................... 34.26%
</TABLE>
(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.
(c) Not annualized.
(d) Period from commencement of operations.
(e) Portfolio turnover is calculated on the basis of the Portfolio.
See notes to financial statements.
74
<PAGE>
REPUBLIC OPPORTUNITY FUND
FINANCIAL HIGHLIGHTS - CLASS A (INVESTOR) SHARES
<TABLE>
<CAPTION>
FOR THE YEARS ENDED FOR THE PERIOD
OCTOBER 31, SEPTEMBER 23, 1996
------------------------ TO OCTOBER 31,
1999 1998 1997 1996(d)
------ ------ ------ ----------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD........................ $11.33 $12.37 $ 9.80 $10.00
------ ------ ------ ------
INVESTMENT ACTIVITIES:
Net investment loss......... (0.19) (0.13) (0.07) --
Net realized and unrealized
gains/(losses) from
investment transactions... 2.78 (0.46) 2.64 (0.20)
------ ------ ------ ------
Total from investment
activities.................. 2.59 (0.59) 2.57 (0.20)
------ ------ ------ ------
DIVIDENDS:
In excess of net investment
income.................... (0.04) -- -- --
Net realized gains from
investment transactions... (0.69) (0.45) (0.00)* --
------ ------ ------ ------
Total dividends............... (0.73) (0.45) (0.00)* --
------ ------ ------ ------
NET ASSET VALUE, END OF
PERIOD...................... $13.19 $11.33 $12.37 $9.80
------ ------ ------ ------
------ ------ ------ ------
TOTAL RETURN (EXCLUDES SALES
CHARGE)..................... 23.80% (4.68%) 26.28% (2.00%)(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period
(000's)................... $13,015 $13,137 $9,983 $3,184
Ratio of expenses to average
net assets................ 1.75% 1.63% 1.55% 1.22%(b)
Ratio of net investment loss
to average net assets..... (1.38%) (1.17%) (1.05%) (0.28%)(b)
Ratio of expenses to average
net assets (a)............ 2.14% 1.64% 2.01% 2.90%(b)
Portfolio turnover (e)...... 77.74% 154.69% 92.18% 50.55%
</TABLE>
* Less than $0.01 per share.
(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.
(c) Not annualized.
(d) Period from commencement of operations.
(e) Portfolio turnover is calculated on the basis of the Portfolio.
See notes to financial statements.
75
<PAGE>
REPUBLIC OPPORTUNITY FUND
FINANCIAL HIGHLIGHTS - CLASS B SHARES
<TABLE>
<CAPTION>
FOR THE FOR THE PERIOD
YEAR ENDED JANUARY 6, 1998
OCTOBER 31, TO OCTOBER 31,
1999 1998(d)
----------- ----------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.... $11.31 $11.65
------ ------
INVESTMENT ACTIVITIES:
Net investment loss................... (0.23) (0.09)
Net realized and unrealized
gains/(losses) from investment
transactions........................ 2.71 (0.25)
------ ------
Total from investment activities........ 2.48 (0.34)
------ ------
DIVIDENDS:
In excess of net investment income.... (0.04) --
Net realized gains from investment
transactions........................ (0.69) --
------ ------
Total dividends......................... (0.73) --
------ ------
NET ASSET VALUE, END OF PERIOD.......... $13.06 $11.31
------ ------
------ ------
TOTAL RETURN (EXCLUDES REDEMPTION
CHARGE)............................... 22.93% (2.92%)(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000's)... $536 $349
Ratio of expenses to average net
assets.............................. 2.48% 2.38%(b)
Ratio of net investment loss to
average net assets.................. (2.12%) (1.92%)(b)
Ratio of expenses to average net
assets (a).......................... 2.92% 2.39%(b)
Portfolio turnover (e)................ 77.74% 154.69%
</TABLE>
(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.
(c) Not annualized.
(d) Period from commencement of operations.
(e) Portfolio turnover is calculated on the basis of the Portfolio.
See notes to financial statements.
76
<PAGE>
REPUBLIC OPPORTUNITY FUND
FINANCIAL HIGHLIGHTS - CLASS C SHARES
<TABLE>
<CAPTION>
FOR THE PERIOD
NOVEMBER 4, 1998
TO OCTOBER 31, 1999(d)
----------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................... $11.55
------
INVESTMENT ACTIVITIES:
Net investment loss.................................. (0.10)
Net realized and unrealized gains from investment
transactions....................................... 2.41
------
Total from investment activities....................... 2.31
------
DIVIDENDS:
In excess of net investment income................... (0.04)
Net realized gains from investment transactions...... (0.69)
------
Total dividends........................................ (0.73)
------
NET ASSET VALUE, END OF PERIOD......................... $13.13
------
------
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE).............. 21.00%(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000's).................. $289
Ratio of expenses to average net assets.............. 2.38%(b)
Ratio of net investment loss to average net assets... (2.02%)(b)
Ratio of expenses to average net assets (a).......... 2.77%(b)
Portfolio turnover (e)............................... 77.74%
</TABLE>
(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.
(c) Not annualized.
(d) Period from commencement of operations.
(e) Portfolio turnover is calculated on the basis of the Portfolio.
See notes to financial statements.
77
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees
Republic Funds:
We have audited the accompanying statements of assets and liabilities of
Republic New York Tax-Free Bond Fund, Republic Equity Fund, Republic Bond Fund,
Republic Overseas Equity Fund and Republic Opportunity Fund (collectively, the
Funds), including the schedules of portfolio investments of Republic New York
Tax-Free Bond Fund and Republic Equity Fund, as of October 31, 1999, and the
related statements of operations, statements of changes in net assets and the
financial highlights for each of the periods indicated herein. These financial
statements and the financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits. The financial
highlights for the period ended October 31, 1995 were audited by other auditors
whose reports thereon, dated December 8, 1995, expressed unqualified opinions on
those financial highlights.
We conducted our audits 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. Our procedures included verification of securities owned by Republic
New York Tax-Free Bond Fund and Republic Equity Fund as of October 31, 1999, by
examination, correspondence with brokers and other appropriate audit procedures.
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 audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position the
Funds as of October 31, 1999, the results of their operations, the changes in
their net assets and the financial highlights for each of the periods indicated
herein, in conformity with generally accepted accounting principles.
KPMG LLP
Columbus, Ohio
December 27, 1999
78
<PAGE>
REPUBLIC FIXED INCOME PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS
OCTOBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION MARKET VALUE
--------- -------------------- ------------
<S> <C> <C>
CORPORATE OBLIGATIONS (27.16%)
AUTOMOTIVE (0.65%)
700,000 Delphi Auto Systems Corp., 7.13%, 5/1/29........... $ 629,738
730,000 Ford Motor Co., 6.63%, 10/1/28..................... 652,012
------------
1,281,750
------------
BANKING (1.08%)
380,000 BankAmerica, 5.88%, 2/15/09........................ 346,598
870,000 BankAmerica Institutional, 8.07%, 12/31/26,
Callable 12/31/06 @ 104.04 (d)................... 845,558
585,000 Bayer Hypo-Vereinsbank Trust, 8.74%, 6/30/31,
Callable 6/30/29 @ 100 (d)....................... 580,536
385,000 Chase Manhattan Corp., 6.00%, 2/15/09.............. 355,136
------------
2,127,828
------------
COMPUTER SOFTWARE & SYSTEMS (0.64%)
625,000 AST Research, Inc., 7.45%, 10/1/02 (d)............. 606,605
75,000 Hyundai Semiconductor, 8.25%, 5/15/04 (d).......... 61,893
290,000 Hyundai Semiconductor, 8.63%, 5/15/07 (d).......... 221,354
370,000 Sun Microsystems, 7.65%, 8/15/09................... 377,844
------------
1,267,696
------------
FINANCE (7.57%)
650,000 Abbey National PLC, 7.95%, 10/26/29................ 663,431
675,000 Ahold Finance USA, Inc., 6.88%, 5/1/29............. 609,744
365,000 Anthem Insurance, 9.00%, 4/1/27 (d)................ 346,870
155,000 Associates Corp., 6.95%, 11/1/18................... 147,050
710,000 BT Institutional Capital Trust A, 8.09%, 12/1/26,
Callable 12/1/06 @ 104.05 (d).................... 667,823
75,000 DR Structured Finance, 1994-K2, 9.35%, 8/15/19..... 71,854
365,000 EOP Operating LP, 6.76%, 6/15/07................... 341,582
170,000 EOP Operating LP, 7.25%, 6/15/28................... 147,445
325,000 EOP Operating LP, 7.50%, 4/19/29................... 290,357
505,000 Equitable Cos., 6.50%, 4/1/08...................... 480,115
585,000 Equitable Life, 6.95%, 12/1/05 (d)................. 574,514
475,000 Farmers Insurance Exchange, 8.63%, 5/1/24 (d)...... 485,475
250,000 Florida Property & Casualty, 7.38%, 7/1/03 (d)..... 250,935
500,000 Florida Windstorm, 6.70%, 8/25/04 (d).............. 486,006
615,000 Florida Windstorm, 7.13%, 2/25/19 (d).............. 575,277
75,000 Great Western Finance, 8.21%, 2/1/27, Callable
2/1/07 @ 104.10.................................. 72,805
630,000 Household Financial Corp., 5.88%, 2/1/09........... 567,523
</TABLE>
See notes to financial statements.
79
<PAGE>
REPUBLIC FIXED INCOME PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION MARKET VALUE
--------- -------------------- ------------
<S> <C> <C>
CORPORATE OBLIGATIONS (CONTINUED)
FINANCE - (CONTINUED)
905,000 Hutchison Whampoa Ltd., 7.45%, 8/1/17 (d).......... $ 788,097
115,000 Lehman Brothers Holdings, 8.50%, 8/1/15............ 120,189
625,000 Metropolitan Life Insurance Co., 7.45%, 11/1/23,
Callable 11/1/03 @ 103.53 (d).................... 576,692
300,000 Metropolitan Life Insurance Co., 7.80%, 11/1/25
(d).............................................. 296,348
550,000 Nationwide Mutual Life, 7.50%, 2/15/24, Callable
2/15/04 @ 103.27 (d)............................. 516,520
500,000 New York Life, 7.50%, 12/15/23, Callable 12/15/03 @
103.61 (d)....................................... 460,689
417,948 Oil Purchase Co., 7.10%, 4/30/02 (d)............... 394,317
230,000 Oil Purchase Co., 10.73%, 1/31/04 (d).............. 225,242
350,000 Paiton Energy Funding BV, 9.34%, 2/15/14 (d)....... 63,000
805,000 Petrozuata Finance, Inc., 8.22%, 4/1/17 (d)........ 552,416
475,000 PNC Institutional Capital Trust A, 7.95%, 12/15/26,
Callable 12/15/06 @ 103.98 (d)................... 445,464
215,000 Prime Property Funding II, 6.80%, 8/15/02 (d)...... 212,503
420,000 Prime Property Funding II, 7.00%, 8/15/04 (d)...... 411,926
930,000 Prudential Insurance Co., 8.30%, 7/1/25 (d)........ 969,319
262,780 Smart (CFS) 97 6 A1, 7.71%, 4/15/06 (f)............ 65,695
247,824 Smart Sec Multi Asset Rated, 7.45%, 3/16/06 (f).... 61,956
440,000 Washington Mutual Capital, 8.38%, 6/1/27, Callable
6/1/07 @ 104.096................................. 427,718
378,590 World Financial, 6.91%, 9/1/13 (d)................. 363,742
1,240,000 World Financial, 6.95%, 9/1/13 (d)................. 1,192,724
------------
14,923,363
------------
GOVERNMENTS (FOREIGN) (0.35%)
675,000 Province Of Quebec, 7.50%, 9/15/29................. 680,553
------------
HEALTH CARE (0.74%)
215,000 Columbia HCA Healthcare, 9.00%, 12/15/14........... 206,767
430,000 Columbia HCA Healthcare, 7.19%, 11/15/15........... 341,968
290,000 Columbia HCA Healthcare, 7.69%, 6/15/25............ 229,645
325,000 Columbia HCA Healthcare, 7.58%, 9/15/25............ 259,336
425,000 Rhone-Poulenc Rorer, Inc., 8.62%, 1/5/21........... 420,691
------------
1,458,407
------------
HOTELS & LODGING (0.35%)
605,000 HMH Properties, 7.88%, 8/1/05, Callable 8/1/02 @
103.94........................................... 550,550
150,000 Host Marriott LP, 8.38%, 2/15/06................... 138,375
------------
688,925
------------
</TABLE>
See notes to financial statements.
80
<PAGE>
REPUBLIC FIXED INCOME PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION MARKET VALUE
--------- -------------------- ------------
<S> <C> <C>
CORPORATE OBLIGATIONS (CONTINUED)
INDUSTRIAL (4.27%)
200,000 American Standard Co., 7.38%, 4/15/05.............. $ 185,500
500,000 Browning-Ferris, 7.40%, 9/15/35.................... 384,185
685,000 CSC Holdings, Inc., 7.88%, 12/15/07................ 674,725
595,000 Glencore Nickel Property Ltd., 9.00%, 12/1/14...... 511,700
515,000 Grupo Minero Mexico, 8.25%, 4/1/08................. 406,850
485,000 International Game Technology, 8.38%, 5/15/09...... 461,963
175,000 Jet Equipment Trust, 10.00%, 6/15/12 (d)........... 195,351
390,000 Midwest Energy Bond, 9.38%, 10/15/29 (d)........... 404,639
1,025,000 Monsanto Co., 6.60%, 12/1/28 (d)................... 885,977
245,000 Multicanal SA, 13.13%, 4/15/09..................... 232,750
265,000 Multicanal SA, 10.50%, 4/15/18..................... 200,738
700,000 News America Corp., 7.28%, 6/30/28................. 627,091
130,000 News America Holdings, 8.88%, 4/26/23.............. 138,059
120,000 News America Holdings, 7.75%, 1/20/24.............. 113,632
965,000 Scotia Pacific Company LLC, 7.71%, 1/20/14......... 627,250
500,000 Tenet Healthcare Corp., 7.63%, 6/1/08.............. 465,000
605,000 Time Warner, Inc., 7.57%, 2/1/24................... 599,652
610,000 Time Warner, Inc., 6.63%, 5/15/29.................. 537,190
700,000 USA Waste, 7.00%, 7/15/28.......................... 507,351
320,000 Waste Management, Inc., 7.38%, 5/15/29 (d)......... 239,453
------------
8,399,056
------------
OIL & GAS (1.20%)
1,025,000 Conoco, Inc., 6.95%, 4/15/29....................... 954,945
560,000 Enron Corp., 6.95%, 7/15/28........................ 500,242
265,000 Enron Corp., 6.95% 7/15/28......................... 236,722
370,000 Oxymar, 7.50%, 2/15/16 (d)......................... 270,903
445,000 Tennessee Gas Pipeline, 7.00%, 10/15/28............ 403,016
------------
2,365,828
------------
RETAIL (1.88%)
745,000 Albertsons, Inc., 7.45%, 8/1/29.................... 736,935
820,000 Federated Department Stores, 6.90%, 4/1/29......... 726,213
640,000 Fred Meyer, Inc., 7.38%, 3/1/05.................... 640,323
165,000 Fred Meyer, Inc., 7.45%, 3/1/08.................... 163,643
220,000 K-Mart Funding Corp., 8.80%, 7/1/10................ 215,169
220,000 Lowes Companies, 6.88%, 2/15/28.................... 200,108
</TABLE>
See notes to financial statements.
81
<PAGE>
REPUBLIC FIXED INCOME PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION MARKET VALUE
--------- -------------------- ------------
<S> <C> <C>
CORPORATE OBLIGATIONS (CONTINUED)
RETAIL - (CONTINUED)
630,000 Lowes Companies, 6.50%, 3/15/29.................... $ 543,619
560,000 Saks, Inc., 7.38%, 2/15/19......................... 468,695
------------
3,694,705
------------
SPECIAL PURPOSE (1.84%)
680,000 Farmers Exchange Capital, 7.05%, 7/15/28 (d)....... 588,046
390,000 First Chicago NBD Institutional, 7.95%, 12/1/26,
Callable 12/1/06 @ 103.84 (d).................... 372,073
575,000 First Union Capital, 8.04%, 12/1/26, Callable
12/1/06 @ 104.02................................. 555,858
775,000 FPL Group Capital, 7.63%, 9/15/06.................. 788,460
845,000 GS Escrow Corp., 7.13%, 8/1/05..................... 774,966
540,000 PNC Funding Corp., 7.50%, 11/1/09.................. 545,286
------------
3,624,689
------------
TELECOMMUNICATIONS (3.51%)
1,030,000 AT&T Corp., 6.50%, 3/15/29......................... 906,400
160,000 Comcast Cable Communications, 8.38%, 5/1/07........ 168,241
410,000 Comcast Cable Communications, 6.20%, 11/15/08...... 377,564
85,000 Cox Communications, 6.80%, 8/1/28.................. 75,313
615,000 GTE Corp., 6.94%, 4/15/28.......................... 578,888
630,000 Intermedia Communication, 0.00%, 7/15/07, Callable
7/15/02 @ 105.625................................ 436,275
195,000 Intermedia Communication, 8.50%, 1/15/08, Callable
1/15/03 @ 104.25................................. 172,088
75,000 Intermedia Communication, 8.60%, 6/1/08, Callable
6/1/03 @ 104.30.................................. 66,375
435,000 Lenfest Communications, 8.38%, 11/1/05............. 445,875
660,000 Lenfest Communications, 7.63%, 2/15/08............. 653,400
670,000 Nextel Communications, 0.00%, 9/15/07, Callable
9/15/02 @ 105.325................................ 504,175
590,000 Orange PLC, 8.75%, 6/1/06 (d)...................... 604,750
585,000 Qwest Communications International, 0.00%, 2/1/08,
Callable 2/1/03 @ 104.145........................ 432,900
300,000 Qwest Communications International, 7.50%,
11/1/08.......................................... 294,000
1,265,000 WorldCom, Inc., 6.95%, 8/15/28..................... 1,187,065
------------
6,903,309
------------
TRANSPORTATION (1.06%)
175,086 Continental Airlines, 7.46%, 4/1/15................ 171,377
684,937 Continental Airlines, 6.65%, 9/15/17............... 637,876
</TABLE>
See notes to financial statements.
82
<PAGE>
REPUBLIC FIXED INCOME PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION MARKET VALUE
--------- -------------------- ------------
<S> <C> <C>
CORPORATE OBLIGATIONS (CONTINUED)
TRANSPORTATION - (CONTINUED)
314,865 Continental Airlines, 6.55%, 2/2/19................ $ 286,467
190,000 Union Pacific Corp., 6.79%, 11/9/07................ 183,159
385,000 Union Pacific Corp., 6.63%, 2/1/08................. 365,648
510,000 Union Pacific Corp., 6.63%, 2/1/29................. 439,256
------------
2,083,783
------------
UTILITIES (2.02%)
665,000 CMS Energy Corp., 7.50%, 1/15/09................... 611,350
300,000 Edison Mission Energy, 7.33%, 9/15/08 (d).......... 293,832
280,000 Edison Mission Energy, 7.73%, 6/15/09 (d).......... 279,724
310,000 El Paso Energy, 6.75%, 5/15/09..................... 294,555
670,000 Empresa Nacional Electric, 7.75%, 7/15/08.......... 627,907
100,000 Empresa Nacional Electric, 7.33%, 2/1/37........... 90,686
305,000 Israel Electric, 7.75%, 12/15/27 (d)............... 269,770
151,513 Mobil Energy Services, 8.67%, 1/1/17 (e)........... 45,454
1,115,000 RAS Laffan Liquid Natural Gas, 8.29%, 3/15/14 (d).. 1,005,733
460,000 Southern Energy, 7.90%, 7/15/09 (d)................ 448,142
------------
3,967,153
------------
TOTAL CORPORATE OBLIGATIONS
(COST $58,022,773)............................... 53,467,045
------------
PREFERRED STOCKS (0.35%)
INDUSTRIAL (0.35%)
825 Home Ownership Funding Corp., 13.33% (d)........... 682,862
------------
TOTAL PREFERRED STOCKS (COST $826,654)............. 682,862
------------
ASSET BACKED SECURITIES (20.10%)
605,000 Arcadia Automobile Receivables Trust 97 C A4,
6.38%, 1/15/03................................... 603,905
664,099 Arcadia Automobile Receivables Trust 97 D, 6.20%,
5/15/03.......................................... 662,405
675,000 Arcadia Automobile Receivables Trust 98 A A3,
5.90%, 11/15/02.................................. 672,793
595,859 Banc One Home Equity Trust 99 1 A1, 6.06%,
1/25/12.......................................... 590,676
341,288 BankBoston Home Equity Loan Trust 98 2 A1, 6.28%,
11/25/10......................................... 339,697
975,000 BMW 99 A A2, 6.16%, 12/25/01....................... 973,839
851,593 Centex 99 2 A1, 5.91%, 4/25/19..................... 843,750
754,308 Centex Home Equity 99 1 A1, 6.07%, 3/25/18......... 749,451
305,424 Chevy Chase Auto Receivables Trust, 97 4 A, 6.25%,
6/15/04, Callable 9/15/01 @ 100.................. 303,522
</TABLE>
See notes to financial statements.
83
<PAGE>
REPUBLIC FIXED INCOME PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION MARKET VALUE
--------- -------------------- ------------
<S> <C> <C>
ASSET BACKED SECURITIES (CONTINUED)
1,150,000 Citibank Credit 98 7 A, 5.42%, 11/15/99 (c)........ $ 1,149,598
397,983 Comed Transitional Funding Trust 98 1 A1, 5.38%,
3/25/02.......................................... 397,012
130,344 Contimortgage Home Equity Loan Trust 98 2 A2B,
5.41%, 11/15/99 (c).............................. 130,276
704,657 Contimortgage Home Equity Loan Trust 99 1 A1,
6.01%, 12/25/13.................................. 700,182
146,794 Daimler-Benz AGT 97 A A, 6.05%, 3/31/05, Callable
10/20/00 @ 100................................... 146,298
571,718 Daimler-Benz Vehicle Trust 98 A A2, 5.23%,
12/20/01......................................... 570,300
295,655 EQCC Home Equity Loan Trust 98 2 A1F, 6.24%,
4/15/08.......................................... 294,889
643,552 EQCC Home Equity Loan Trust 99 1 A1F, 5.77%,
5/20/10.......................................... 638,918
865,555 EQCC Home Equity Loan Trust 99 2 A1F, 6.05%,
1/25/10.......................................... 860,232
1,450,399 EQCC Home Equity Loan Trust 99 3 A1F, 6.55%,
4/25/10.......................................... 1,443,611
1,000,000 First Security 99 2 A2, 5.49%, 4/15/02............. 996,650
695,571 First Security Auto Grantor Trust 97 B A, 6.10%,
4/15/03, Callable 9/15/00 @ 100.................. 693,985
407,142 First Security Auto Grantor Trust 98 A A, 5.97%,
4/15/04, Callable 4/15/01 @ 100.................. 404,699
675,000 First USA Credit Card Master Trust 97 10 A, 5.50%,
11/17/99 (c)..................................... 674,771
301,731 Ford Credit Auto Owner Trust 97 B A3, 6.05%,
4/15/01.......................................... 301,665
1,975,000 Ford Credit Auto Owner Trust 99 B, 5.47%,
9/15/01.......................................... 1,964,691
1,925,000 Ford Credit Auto Owner Trust 99 C A3, 5.77%,
11/15/01......................................... 1,917,225
1,950,000 Ford Credit Auto Owner Trust 99 D A3, 6.20%,
4/15/02.......................................... 1,947,629
950,000 Green Tree Financial Corp. 99 1 A2, 5.43%,
11/1/06.......................................... 944,699
1,020,335 Green Tree Financial Corp. 99 2 A1, 5.60%,
12/1/30.......................................... 1,012,856
1,400,000 Green Tree Financial Corp. 99 3 A2, 5.51%,
2/1/31........................................... 1,393,098
788,229 Green Tree Home Equity Loan Trust 98 A A2, 6.04%,
6/15/29.......................................... 786,266
1,337,824 Green Tree Home Equity Loan Trust 99 C A1, 5.99%,
7/15/30.......................................... 1,333,824
427,424 Green Tree Home Improvement Loan Trust 98 E HIA 1,
5.91%, 11/15/99 (c).............................. 426,475
865,907 Harley-Davidson Eaglemark Motorcycle Trust 99 2 A1,
5.84%, 10/15/03.................................. 863,734
342,670 Honda Auto Receivables Grantor Trust 97 A, 5.85%,
2/15/03, Callable 6/15/00 @ 100.................. 341,848
402,003 Indymac HEL 98 A A1, 5.45%, 11/25/99 (c)........... 400,913
139,038 Long Beach Acceptance Auto Grantor Trust 97 2 A,
6.69%, 9/25/04 (d)............................... 138,524
</TABLE>
See notes to financial statements.
84
<PAGE>
REPUBLIC FIXED INCOME PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION MARKET VALUE
--------- -------------------- ------------
<S> <C> <C>
ASSET BACKED SECURITIES (CONTINUED)
1,450,000 MMCA Automobile Trust 99 2 A1, 6.30%, 6/15/02...... $ 1,449,266
975,000 Navistar Financial Corp. Owner Trust 99 A, 5.55%,
2/15/02.......................................... 970,096
630,690 Nissan Auto Receivables Grantor Trust 97 A, 6.15%,
2/15/03, Callable 7/15/00 @ 100.................. 630,065
1,138,644 Nissan Auto Receivables Grantor Trust 98 A A,
5.45%, 4/15/04, Callable 7/15/01 @ 100........... 1,126,051
711,282 Oakwood 99 B A1, 5.50%, 11/15/99 (c)............... 711,459
839,087 Option One 99 2 A1, 5.88%, 5/25/29................. 833,518
1,925,000 Premier Auto Trust 99 3 A2, 5.82%, 2/8/02.......... 1,916,915
386,678 Salomon Brothers Mortgage Securities VII 98 NC7 A1,
6.06%, 1/25/29................................... 384,946
334,721 Textron Financial Corp. Receivable 98 A A1, 5.82%,
1/15/02 (d)...................................... 333,412
425,612 UCFC Home Equity Loan 97 D A2, 6.48%, 6/15/12...... 424,701
427,097 UCFC Home Equity Loan 98 C A1, 5.53%, 11/15/99
(c).............................................. 427,051
224,325 WFS Financial Owner Trust 97 C A3, 6.10%,
3/20/02.......................................... 224,177
608,106 WFS Financial Owner Trust 97 D A3, 6.25%,
3/20/02.......................................... 608,148
917,050 World Omni Automobile Lease Securitization 97 B A2,
6.08%, 11/25/03.................................. 916,830
------------
TOTAL ASSET BACKED SECURITIES
(COST $39,729,663)............................... 39,571,541
------------
COLLATERALIZED MORTGAGE OBLIGATIONS (3.87%)
4,247,276 American Southwest Financial Securities Corp. IO 93
2 S1, 1.09%, 11/1/99 (c)......................... 120,249
89,439 American Southwest Financial Securities Corp. 93 2
A1, 7.30%, 1/18/09............................... 88,491
275,000 Asset Securitization Corp. 96 MDS A1C SEQ, 7.04%,
11/13/26......................................... 272,300
193,026 B A Mortgage Securities, Inc. 97 1 A2, 5.84%,
11/25/99 (c)..................................... 193,109
2,673,931 DLJ Mortgage Acceptance Corp. 97 CF1 S, IO, 1.09%,
11/1/99 (c) (d).................................. 116,038
150,000 DR Structured Financial Trust, 93 K1 A2, 7.43%,
8/15/18.......................................... 128,026
276,906 DR Structured Financial Trust, 94 K1 A1, 7.60%,
8/15/07.......................................... 264,278
250,000 DR Structured Financial Trust, 94 K1 A2, 8.38%,
8/15/15.......................................... 232,085
123,949 Fannie Mae 94 97 FC, 6.14%, 11/25/99 (c)........... 123,827
64,868 Fannie Mae 96 14 PO, 0.00%, 12/25/23............... 42,060
178,737 Fannie Mae 97 70 FA, 5.89%, 11/18/99 (c)........... 178,377
658,654 Fannie Mae 98 22 FA, 5.81%, 11/18/99 (c)........... 654,434
</TABLE>
See notes to financial statements.
85
<PAGE>
REPUBLIC FIXED INCOME PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION MARKET VALUE
--------- -------------------- ------------
<S> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (CONTINUED)
392 Fannie Mae INV IE 92 89 SQ, 3915.71%, 6/25/22...... $ 30,591
1,000 Fannie Mae INV IE 97 30 SP, 4178.19%, 4/25/22...... 87,073
1,757,589 Fannie Mae IO 270 2, 8.50%, 9/1/23................. 468,027
1,712,292 Fannie Mae IO 291 2, 8.00%, 11/1/27................ 483,036
2,125,490 Fannie Mae IO 296 2, 8.00%, 4/1/24................. 615,729
364,393 Freddie Mac 1710 D, 5.89%, 11/15/99(c)............. 360,117
5,825,143 Freddie Mac IO 1534 K, 1.96%, 11/15/99, Callable
10/15/18 @ 100(c)................................ 244,656
1,448,438 Freddie Mac IO 186, 8.00%, 8/1/27.................. 427,968
1,667,436 Freddie Mac IO 85 PR, 8.00%, 7/15/27............... 477,054
5,397,244 GMAC 96 C1 X2 IO, 1.26%, 11/1/99(c)................ 319,857
2,117,999 GMAC 97 C2 X IO, 1.85%, 11/1/99 (c)................ 137,952
4,953,583 Government National Mortgage Association IO 99 29
SD, 2.75%, 3/16/26............................... 247,184
5,420,519 Government National Mortgage Association IO 99 30
S, 3.43%, 8/16/26................................ 384,857
5,145,697 Government National Mortgage Association IO 99 30
SA, 2.80%, 8/1/29................................ 291,246
3,952,389 Government National Mortgage Association IO 99 32
SB, 2.75%, 7/16/27............................... 205,129
1,271,323 GS Mortgage Securities Corp. IO 97 GL X2, 1.07%,
11/1/99 (c)...................................... 50,187
372,511 Moserv, Inc. 96 2 1A1, 6.23%, 11/25/99(c).......... 373,714
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST
$7,240,554)...................................... 7,617,651
------------
U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS
(85.63%)
FEDERAL HOME LOAN MORTGAGE CORP. (32.80%)
8,000,000 4.77%, 11/16/99.................................... 7,982,968
16,000,000 5.20%, 11/29/99.................................... 15,936,415
41,627 Pool #180881, 10.50%, 10/1/11...................... 44,789
33,751 Pool #308433, 10.50%, 11/1/18...................... 36,510
39,892 Pool #555201, 11.00%, 9/1/16....................... 44,427
152,700 Pool #555283, 10.00%, 9/1/17....................... 163,619
374,640 Pool #A00814, 10.00%, 11/1/20...................... 406,389
292,381 Pool #A01417, 10.00%, 3/1/21....................... 317,168
128,408 Pool #A01521, 9.50%, 12/1/16....................... 137,879
303,083 Pool #A01663, 10.00%, 11/1/16...................... 328,809
</TABLE>
See notes to financial statements.
86
<PAGE>
REPUBLIC FIXED INCOME PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION MARKET VALUE
--------- -------------------- ------------
<S> <C> <C>
U.S. GOVERNMENT AND GOVERNMENT AGENCY
OBLIGATIONS (CONTINUED)
FEDERAL HOME LOAN MORTGAGE CORP. - (CONTINUED)
372,451 Pool #A01706, 10.00%, 6/1/17....................... $ 404,026
361,995 Pool #D18976, 10.00%, 3/1/20....................... 392,229
41,150,000 TBA November 1999, 6.00%, 11/1/29 (b).............. 38,385,213
------------
64,580,441
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (34.51%)
8,000,000 5.24%, 11/3/99..................................... 7,997,671
43,517 Pool #124783, 10.50%, 12/1/16...................... 47,193
45,585 Pool #303157, 10.00%, 5/1/22....................... 49,124
298,551 Pool #323073, 10.50%, 10/1/18...................... 323,685
641,083 Pool #323166, 9.50%, 8/1/22........................ 686,671
576,977 Pool #323559, 10.00%, 6/1/20....................... 621,582
1,760,058 Pool #323692, 6.00%, 4/1/29........................ 1,641,467
7,144,566 Pool #323702, 6.00%, 4/1/29........................ 6,660,299
12,687,066 Pool #323715, 6.00%, 5/1/29 (b).................... 11,832,228
773,973 Pool #418458, 10.00%, 11/1/18...................... 834,057
729,654 Pool #427683, 10.50%, 6/1/09....................... 789,563
84,244 Pool #44176, 10.00%, 6/1/20........................ 90,727
22,451 Pool #82931, 10.00%, 10/1/19....................... 24,191
48,180 Pool #83435, 10.00%, 11/1/19....................... 51,905
6,831 Pool #83880, 10.00%, 11/1/19....................... 7,359
8,600 Pool #84964, 10.00%, 11/1/19....................... 9,266
6,649 Pool #87291, 10.00%, 1/1/20........................ 7,161
38,900,000 TBA November 1999, 6.00%, 11/1/29 (b).............. 36,249,938
------------
67,924,087
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (18.32%)
26,816 Pool #120587, 13.50%, 11/15/14..................... 31,356
33,454 Pool #136224, 10.00%, 11/15/15..................... 36,560
20,298 Pool #150312, 11.50%, 2/15/16...................... 23,031
18,419 Pool #163997, 10.50%, 8/15/16...................... 20,477
25,070 Pool #164353, 10.50%, 6/15/16...................... 27,871
74,750 Pool #164356, 10.50%, 6/15/16...................... 83,101
43,843 Pool #199010, 10.00%, 1/15/17...................... 47,879
24,258 Pool #227192, 10.00%, 6/15/19...................... 26,481
22,947 Pool #253821, 10.00%, 10/15/18..................... 25,052
19,142 Pool #257153, 10.00%, 11/15/18..................... 20,898
8,761 Pool #258345, 10.00%, 6/15/19...................... 9,563
20,251 Pool #265085, 10.00%, 4/15/19...................... 22,106
</TABLE>
See notes to financial statements.
87
<PAGE>
REPUBLIC FIXED INCOME PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION MARKET VALUE
--------- -------------------- ------------
<S> <C> <C>
U.S. GOVERNMENT AND GOVERNMENT AGENCY
OBLIGATIONS (CONTINUED)
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -
(CONTINUED)
23,959 Pool #266007, 10.00%, 9/15/19...................... $ 26,154
20,910 Pool #271874, 10.00%, 4/15/19...................... 22,825
74,295 Pool #278742, 10.50%, 9/15/19...................... 82,651
115,066 Pool #282210, 10.50%, 11/15/19..................... 128,007
31,406 Pool #301274, 10.00%, 1/15/21...................... 34,265
55,807 Pool #38500, 11.00%, 1/15/10....................... 62,035
26,519 Pool #38712, 11.00%, 3/15/10....................... 29,478
27,482 Pool #39798, 11.00%, 6/15/10....................... 30,549
36,020 Pool #41650, 11.00%, 8/15/10....................... 40,039
51,519 Pool #41840, 11.00%, 8/15/10....................... 57,268
37,532 Pool #42490, 11.00%, 7/15/10....................... 41,720
25,121 Pool #43699, 11.00%, 9/15/10....................... 27,924
28,011 Pool #44103, 11.00%, 9/15/10....................... 31,137
727,871 Pool #780047, 9.00%, 12/15/17...................... 770,073
295,780 Pool #780066, 10.50%, 12/15/20..................... 328,949
98,050 Pool #780081, 10.00%, 2/15/25...................... 106,913
94,695 Pool #780127, 10.50%, 4/15/25...................... 104,496
177,067 Pool #780164, 10.00%, 12/15/17..................... 193,365
499,537 Pool #780203, 9.50%, 12/15/17...................... 536,017
364,580 Pool #780311, 9.50%, 12/15/21...................... 391,169
660,132 Pool #780377, 9.00%, 12/15/19...................... 697,586
178,139 Pool #780378, 11.00%, 1/15/19...................... 199,821
191,871 Pool #780384, 11.00%, 2/15/17...................... 215,426
286,981 Pool #780472, 10.00%, 3/15/25...................... 312,922
69,158 Pool #780517, 10.50%, 1/15/18...................... 76,966
475,127 Pool #780614, 11.00%, 3/15/18...................... 533,213
489,440 Pool #780784, 10.00%, 8/15/21...................... 533,992
1,339,587 Pool #780804, 10.00%, 12/15/20..................... 1,461,827
884,549 Pool #780826, 9.50%, 5/15/18....................... 948,126
583,021 Pool #780904, 9.50%, 7/15/18....................... 625,552
685,008 Pool #780991, 9.00%, 11/15/24...................... 722,047
284,756 Pool #80094, 6.63%, 7/20/27........................ 286,128
806,664 Pool #80106, 6.63%, 8/20/27........................ 810,550
529,352 Pool #80114, 6.63%, 9/20/27........................ 531,902
778,025 Pool #80123, 6.13%, 10/20/27....................... 779,072
976,779 Pool #80137, 6.50%, 11/20/27....................... 978,093
240,390 Pool #80145, 6.50%, 12/20/27....................... 240,714
</TABLE>
See notes to financial statements.
88
<PAGE>
REPUBLIC FIXED INCOME PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY DESCRIPTION MARKET VALUE
--------- -------------------- ------------
<S> <C> <C>
U.S. GOVERNMENT AND GOVERNMENT AGENCY
OBLIGATIONS (CONTINUED)
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -
(CONTINUED)
236,684 Pool #80156, 6.50%, 1/20/28........................ $ 237,140
152,772 Pool #8599, 6.88%, 2/20/25......................... 154,267
431,071 Pool #8613, 6.88%, 3/20/25......................... 435,289
101,537 Pool #8619, 6.38%, 4/20/25......................... 102,531
526,271 Pool #8621, 6.38%, 4/20/25......................... 531,421
373,384 Pool #8623, 6.38%, 4/20/25......................... 377,038
792,057 Pool #8624, 6.38%, 4/20/25......................... 799,808
119,961 Pool #8628, 6.38%, 5/20/25......................... 121,135
238,925 Pool #8631, 6.38%, 5/20/25......................... 241,263
136,120 Pool #8634, 6.38%, 5/20/25......................... 137,453
335,602 Pool #8643, 6.38%, 6/20/25......................... 338,886
216,726 Pool #8646, 6.38%, 6/20/25......................... 218,846
150,412 Pool #8663, 6.63%, 7/20/25......................... 152,068
560,479 Pool #8686, 6.63%, 8/20/25......................... 566,651
18,650,000 TBA November 1999, 7.00%, 11/15/29 (b)............. 18,288,655
------------
36,075,797
------------
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY
OBLIGATIONS (COST $169,302,122).................. 168,580,325
------------
U.S. TREASURY OBLIGATIONS (8.88%)
1,250,000 U.S. Treasury Bonds, 8.75%, 8/15/20................ 1,566,016
6,000,000 U.S. Treasury Notes, 7.50%, 2/15/05................ 6,373,128
578,976 U.S. Treasury Notes, Inflation Index, 3.63%,
7/15/02.......................................... 575,539
5,657,697 U.S. Treasury Notes, Inflation Index, 3.38%,
1/15/07.......................................... 5,392,493
7,800,000 U.S. Treasury Strips, 0.00%, 2/15/19............... 2,220,964
5,250,000 U.S. Treasury Strips, 0.00%, 8/15/20............... 1,358,485
------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $18,040,290)............................... 17,486,625
------------
YANKEE BONDS (1.06%)
735,000 Mexico Series A, 6.25%, 12/31/19................... 551,250
500,000 Mexico Series B, 6.25%, 12/31/19................... 375,000
615,000 Republic of Argentina, 11.75%, 4/7/09.............. 605,996
740,000 Republic of Columbia, 8.70%, 2/15/16............... 558,700
------------
TOTAL YANKEE BONDS (COST $2,192,011)............... 2,090,946
------------
</TABLE>
See notes to financial statements.
89
<PAGE>
REPUBLIC FIXED INCOME PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
SHARES SECURITY DESCRIPTION MARKET VALUE
------ -------------------- ------------
<S> <C> <C>
SHORT-TERM INVESTMENTS (0.15%)
MONEY MARKET FUND (0.15%)
290,324 Dreyfus Cash Management Fund....................... $ 290,324
------------
TOTAL SHORT-TERM INVESTMENTS
(COST $290,324).................................. 290,324
------------
TOTAL INVESTMENTS (COST $295,644,391) (A)
-- 147.20%..................................... 289,787,319
LIABILITIES IN EXCESS OF OTHER ASSETS
-- (47.20)%..................................... (92,915,856)
------------
NET ASSETS -- 100.00%............................. $196,871,463
------------
------------
</TABLE>
- ------------
Percentages indicated are based on net assets of $196,871,463.
IE -- Ioette
IO -- Interest Only
LLC -- Limited Liability Company
PLC -- Public Limited Company
PO -- Principal Only
SA -- Societe Anonyme (French Corp.)
TBA -- Pool number to be announced
(a) Represents cost for financial reporting purposes and differs for federal
income tax purposes by the amount of losses recognized for financial
reporting purposes in excess of federal income tax reporting of
approximately $71,543. Cost for federal income tax purposes differs from
value by net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 1,547,553
Unrealized depreciation..................................... (7,476,168)
-----------
Net unrealized depreciation................................. $(5,928,615)
-----------
-----------
</TABLE>
(b) Security purchased on a delayed delivery basis.
(c) Represents a variable rate note. Interest rate disclosed represents current
rate at October 31, 1999.
(d) Security exempt from registration under Rule 144a of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(e) Non-income producing security.
(f) Represents an illiquid security, valued in good faith by the investment
manager. The Portfolio has received partial payment for this security.
See notes to financial statements.
90
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS
OCTOBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ ------
<S> <C> <C>
COMMON STOCKS (91.82%)
AUSTRALIA (3.10%)
Australia & New Zealand Bank Group, Ltd............. 225,821 $ 1,489,251
Broken Hill Proprietary............................. 86,597 894,356
Broken Hill Proprietary ADR......................... 83,800 1,770,274
Coles Myer, Ltd..................................... 309,109 1,536,425
Lend Lease Corp., Ltd............................... 105,318 1,210,923
News Corp., Ltd..................................... 26,933 194,627
News Corp., Ltd. ADR................................ 8,275 245,147
Westpac Banking Corp., Ltd.......................... 251,005 1,609,429
-----------
8,950,432
-----------
CANADA (5.02%)
Bank of Nova Scotia................................. 75,000 1,713,237
Bombardier Class B.................................. 169,000 2,981,542
Clarica Life Insurance Co. (b)...................... 57,000 922,292
Manulife Financial Corp. (b)........................ 24,000 288,803
National Bank of Canada............................. 52,100 634,027
Newbridge Networks Corp. ADR (b).................... 39,500 769,376
Newcourt Credit Group, Inc.......................... 6,900 112,350
Nortel Networks Corp. ADR........................... 30,800 1,907,675
Suncor Energy, Inc.................................. 20,400 777,750
Teleglobe, Inc...................................... 41,100 972,384
Teleglobe, Inc. ADR................................. 2,300 54,481
Thomson Corp........................................ 115,493 3,376,299
-----------
14,510,216
-----------
FINLAND (4.52%)
Metra Oy B Shares................................... 61,000 1,154,054
Nokia Corp. ADR..................................... 8,000 924,500
Nokia Oyj Class A................................... 72,000 8,234,266
UPM-Kymmene......................................... 87,000 2,743,242
-----------
13,056,062
-----------
FRANCE (5.68%)
Banque Nationale De Paris........................... 18,245 1,601,231
Bougues............................................. 4,084 1,420,814
Christian Dior SA................................... 3,700 661,889
Compagnie De Saint Gobain........................... 11,000 1,907,657
Groupe Danone....................................... 4,900 1,248,911
LVMH................................................ 1,100 331,817
Peugeot SA.......................................... 11,000 2,109,984
Sanofi Synthelabo SA (b)............................ 60,320 2,659,604
Television Francaise................................ 10,000 3,132,130
</TABLE>
See notes to financial statements.
91
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
FRANCE (CONTINUED)
Valeo............................................... 18,460 $ 1,325,183
-----------
16,399,220
-----------
GERMANY (9.06%)
Bayerische Motoren Werke AG......................... 36,400 1,159,225
Daimler Chrysler AG................................. 11,000 855,555
Deutsche Telekom AG................................. 61,400 2,820,158
Epcos AG (b)........................................ 10,500 430,184
Mannesmann AG....................................... 71,300 11,203,517
Metallgesellschaft AG............................... 83,300 1,729,162
Muenchener Rueckversicher AG........................ 5,800 1,328,948
Siemens AG.......................................... 56,500 5,068,455
Thyssen Krupp AG (b)................................ 66,000 1,560,810
-----------
26,156,014
-----------
HONG KONG (0.84%)
Hong Kong Electric Holdings......................... 26,325 80,471
Hong Kong Telecom, Ltd.............................. 610,800 1,395,414
Hutchison Whampoa, Ltd.............................. 96,000 963,767
-----------
2,439,652
-----------
IRELAND (0.04%)
Eircom PLC (b)...................................... 29,700 123,772
-----------
ITALY (3.63%)
Alleanza Assicurazioni SpA Azione Nom............... 330 3,361
Assicurazioni Generali.............................. 69,000 2,211,936
ENI SpA............................................. 363,000 2,121,314
Telecom Italia Mobile RNC........................... 988,000 3,426,845
Telecom Italia SpA.................................. 58,611 505,762
Telecom Italia SpA RNC.............................. 452,000 2,218,600
-----------
10,487,818
-----------
JAPAN (26.39%)
Advantest Corp...................................... 33,400 5,024,720
Aiful Corp.......................................... 4,250 659,735
Asahi Breweries, Ltd................................ 75,000 1,065,781
Fujitsu, Ltd........................................ 37,000 1,113,261
Hirose Electronics Co., Ltd......................... 34,000 5,926,214
Hitachi, Ltd........................................ 150,000 1,619,873
Honda Motor Co., Ltd................................ 26,000 1,096,205
Kao Corp............................................ 32,000 975,086
</TABLE>
See notes to financial statements.
92
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
JAPAN (CONTINUED)
Keyence Corp........................................ 16,500 $ 4,419,076
Kyocera Corp........................................ 19,600 1,878,113
Mitsubishi Heavy Industries, Ltd.................... 275,000 1,077,759
Mitsubishi Motors Corp.............................. 12,000 62,208
Mitsui Chemicals, Inc............................... 193,000 1,923,341
Murata Manufacturing Co., Ltd....................... 45,000 5,778,073
Nichiei Co., Ltd.................................... 28,540 1,476,772
Nikon Corp.......................................... 131,000 3,113,069
Nintendo Corp....................................... 15,800 2,505,652
Nippon Telegraph & Telephone Corp................... 113 1,732,464
Nissan Motors....................................... 239,000 1,431,343
Nomura Securities Co., Ltd.......................... 95,000 1,566,644
NTT Mobile Communications Network, Inc.............. 316 8,387,502
Rohm Company........................................ 16,000 3,587,580
Sakura Bank, Ltd.................................... 87,000 746,953
Sankyo Co., Ltd..................................... 500 14,230
Sony Corp........................................... 45,400 7,073,628
Sony Corp. ADR...................................... 2,200 351,450
Sony Music Entertainment Corp....................... 3,300 429,733
Suzuki Motor Corp................................... 96,000 1,457,109
Takefuji Corp....................................... 11,200 1,448,830
Tokyo Electron, Ltd................................. 78,900 6,547,276
Toray Industries, Inc............................... 103,000 567,506
Yasuda F & M Insurance.............................. 177,000 1,197,412
-----------
76,254,598
-----------
MALAYSIA (0.07%)
Malaysian Airlines System Berhad.................... 122,400 115,314
Rothmans Pall Mall.................................. 9,000 62,763
Sime Darby Berhad................................... 18,655 22,288
-----------
200,365
-----------
MEXICO (1.83%)
Panamerican Beverage Inc., Class A.................. 55,000 883,438
Telefonos De Mexico ADR............................. 51,600 4,411,800
-----------
5,295,238
-----------
NETHERLANDS (6.44%)
ABN AMRO Holding NV................................. 66,106 1,597,362
Aegon NV............................................ 53,758 4,958,083
ASM Lithography Holding NV (b)...................... 68,000 4,795,734
</TABLE>
See notes to financial statements.
93
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
NETHERLANDS (CONTINUED)
DSM NV.............................................. 37,100 $ 1,403,783
Heineken NV......................................... 48,500 2,471,824
ING Groep NV........................................ 14,000 825,201
STMicroelectronics NV............................... 10,000 877,627
STMicroelectronics NY Shares........................ 18,500 1,681,188
-----------
18,610,802
-----------
NORWAY (0.09%)
Orkla ASA A Shares.................................. 18,800 262,423
-----------
SINGAPORE (0.60%)
Singapore Press Holdings, Ltd....................... 100,370 1,719,240
-----------
SOUTH AFRICA (0.81%)
De Beers Consolidated Mines, Ltd.................... 46,000 1,244,875
Sasol, Ltd.......................................... 159,700 1,099,311
-----------
2,344,186
-----------
SOUTH KOREA (1.37%)
Pohang Iron & Steel Co.............................. 35,000 1,168,125
Samsung Electronics, Ltd............................ 33,520 2,782,160
-----------
3,950,285
-----------
SPAIN (0.93%)
Telefonica SA....................................... 162,966 2,678,905
-----------
SWEDEN (1.48%)
Forenings Sparbanken................................ 78,900 1,254,628
Hennes & Mauritz AB B Shares........................ 62,000 1,644,408
Telefonaktiebolaget LM Ericsson B Shares............ 33,020 1,370,786
-----------
4,269,822
-----------
SWITZERLAND (4.14%)
Compagnie Financiere Richemont AG................... 990 1,891,981
Holderbank Financiere Glaris, Ltd. Class B.......... 1,630 2,007,900
Nestle.............................................. 509 982,099
Novartis AG Registered.............................. 1,727 2,584,148
Roche Holding AG.................................... 72 864,717
Schweizerische Rueckversicherungs Reg............... 451 935,306
Swisscom AG......................................... 8,821 2,689,020
-----------
11,955,171
-----------
</TABLE>
See notes to financial statements.
94
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
TAIWAN (3.18%)
Asustek Computer, Inc............................... 252,840 $ 3,565,044
Taiwan Semiconductor ADR (b)........................ 162,310 5,619,984
-----------
9,185,028
-----------
TURKEY (0.31%)
Turkive IS Bankasi.................................. 451,080 891,334
-----------
UNITED KINGDOM (12.19%)
AstraZeneca PLC..................................... 72,200 3,249,717
AstraZeneca PLC..................................... 93,551 4,218,654
AstraZeneca PLC ADR................................. 5,600 256,200
Barclays PLC........................................ 37,300 1,142,709
BG PLC.............................................. 202,000 1,119,513
BOC Group PLC....................................... 139,900 2,995,786
Cadbury Schweppes PLC............................... 164,400 1,070,964
Caradon PLC......................................... 400,000 945,159
Dixons Group PLC.................................... 60,663 1,074,058
Enterprise Oil PLC.................................. 133,200 944,214
GKN PLC............................................. 69,200 1,107,684
Invensys PLC........................................ 630,900 3,100,559
Lloyds TSB Group PLC................................ 86,400 1,192,319
National Westminster Bank PLC....................... 31,376 707,403
Orange PLC (b)...................................... 84,100 2,089,318
Reuters Group PLC................................... 257,666 2,378,276
Reuters Group PLC ADR............................... 780 43,144
Royal & Sun Alliance Insurance Group PLC............ 195,396 1,328,993
Shell Transport & Trading Co. PLC................... 158,000 1,209,459
Standard Chartered PLC.............................. 88,000 1,229,561
Tate & Lyle PLC..................................... 240,000 1,569,358
TI Group PLC........................................ 190,000 1,284,498
Tomkins PLC......................................... 280,000 940,729
-----------
35,198,275
-----------
UNITED STATES (0.10%)
Korea Telecom Corp. ADR (b)......................... 7,800 274,950
-----------
TOTAL COMMON STOCKS (COST $173,650,272)............. 265,213,808
-----------
</TABLE>
See notes to financial statements.
95
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ ------
<S> <C> <C>
PREFERRED STOCKS (1.87%)
AUSTRALIA (0.25%)
News Corp., Ltd..................................... 104,927 $ 709,895
-----------
JAPAN (1.62%)
NEC Corp............................................ 232,000 4,690,684
-----------
TOTAL PREFERRED STOCKS (COST $3,534,197)............ 5,400,579
-----------
RIGHTS & WARRANTS (0.03%)
FRANCE (0.01%)
Banque Nationale De Paris Warrants (b).............. 6,565 38,779
-----------
NORWAY (0.02%)
Orkla ASA Rights.................................... 22,400 42,118
-----------
TOTAL RIGHTS & WARRANTS (COST $0)................... 80,897
-----------
SHORT-TERM INVESTMENTS (5.42%)
UNITED STATES (5.42%)
Investors Cash Reserve.............................. 15,665,558 15,665,558
-----------
TOTAL SHORT-TERM INVESTMENTS
(COST $15,665,558)................................ 15,665,558
-----------
</TABLE>
See notes to financial statements.
96
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
SECURITY DESCRIPTION RATE DATE AMOUNT VALUE
- -------------------- ---- -------- --------- ------
<S> <C> <C> <C> <C>
CONVERTIBLE BONDS (0.76%)
JAPAN (0.76%)
Asahi Breweries, 12/26/03,
Convertible Bond, Convertible to
858.3691 Shares Until
12/25/03........................ 1.00% 12/26/03 $ 14,000,000 $ 176,006
Sakura Finance, 0.75%, 10/1/01,
Convertible Bond, Convertible to
11,787.819 Shares Until
9/30/01......................... .80 10/1/01 120,000,000 2,007,952
------------
TOTAL CONVERTIBLE BONDS
(COST $1,207,138)............... 2,183,958
------------
TOTAL INVESTMENTS -- 99.9%
(COST $194,057,165) (a)......... 288,544,800
------------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.1%............ 284,706
------------
NET ASSETS -- 100.0%............. $288,829,506
------------
------------
</TABLE>
- ------------------
Percentages indicated are based on net assets of $288,829,506.
(a) Represents cost for financial reporting purposes and differs for federal
income tax purposes by the amount of losses recognized for financial
reporting purposes in excess of federal income tax reporting of
approximately $1,914,574. Cost for federal income tax purposes differs from
value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation................ $99,441,587
Unrealized depreciation................ (6,868,526)
-----------
Net unrealized appreciation............ $92,573,061
-----------
-----------
</TABLE>
(b) Represents non-income producing securities.
AB -- Aktiebolag (Swedish Stock Co.)
ADR -- American Depositary Receipt
AG -- Aktiengesellschaft (West German Stock Co.)
NV -- Naamlozo Vonnotschaap (Dutch Corp.)
PLC -- Public Limited Company
SA -- Societe Anonyme (French Corp.)
SpA -- Societa per Azioni (Italian Corp.)
See notes to financial statements.
97
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
At October 31, 1999, the Fund's open forward foreign currency contracts were as
follows:
<TABLE>
<CAPTION>
UNREALIZED
DELIVERY CONTRACT CONTRACT CONTRACT APPRECIATION/
CURRENCY DATE PRICE AMOUNT VALUE MARKET VALUE (DEPRECIATION)
- -------- -------- -------- -------- -------- ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
LONG CONTRACTS
British Pound 11/3/99 $ .610109 $ 39,415 $ 64,604 $ 64,687 $ 83
British Pound 11/5/99 .607744 189,354 311,569 310,795 (774)
Euro 11/1/99 .949758 62,088 65,373 65,258 (115)
Euro 11/2/99 .951429 89,593 94,188 94,167 (21)
Euro 11/4/99 .927120 209,589 226,064 220,423 (5,641)
Euro 11/30/99 .947867 49,961 52,709 52,752 43
Euro 12/7/99 .927765 599,052 645,693 632,905 (12,788)
Euro 12/8/99 .959196 529,113 551,621 559,064 7,443
Euro 12/20/99 .954927 6,191 6,483 6,548 65
Euro 1/19/00 .966840 1,555,851 1,609,212 1,649,325 40,113
Euro 1/20/00 .921535 3,414,822 3,705,579 3,620,222 (85,357)
Euro 1/20/00 .918758 1,344,746 1,463,657 1,425,632 (38,025)
Euro 1/28/00 .929458 559,419 601,877 593,383 (8,494)
Euro 1/28/00 .929783 949,710 1,021,431 1,007,369 (14,062)
Euro 3/23/00 .941550 1,048,666 1,113,766 1,116,288 2,522
Euro 3/31/00 .934800 1,978,458 2,116,452 2,107,122 (9,330)
Swiss Franc 11/1/99 1.5216 49,911 32,802 32,756 (46)
Swiss Franc 11/1/99 1.5227 109,256 71,751 71,703 (48)
Japanese Yen 11/1/99 104.149991 5,312,816 51,011 50,908 (103)
----------- ----------- ---------
TOTAL LONG CONTRACTS $13,805,842 $13,681,307 $(124,535)
----------- ----------- ---------
----------- ----------- ---------
SHORT CONTRACTS
Australian Dollar 1/19/00 $ 1.512524 $ 2,433,973 $ 1,609,212 $ 1,555,686 $ 53,526
British Pound 11/2/99 .605162 340,212 562,184 558,255 3,929
British Pound 11/3/99 .607327 68,016 111,992 111,625 367
British Pound 11/3/99 .610564 41,198 67,475 67,613 (138)
British Pound 11/4/99 .615886 139,230 226,064 228,512 (2,448)
British Pound 1/28/00 .599831 612,686 1,021,431 1,007,708 13,723
Canadian Dollar 12/7/99 1.491846 963,275 645,693 655,316 (9,623)
Canadian Dollar 1/28/00 1.471054 885,393 601,877 603,326 (1,449)
Canadian Dollar 3/23/00 1.473149 1,640,743 1,113,766 1,118,740 (4,974)
Euro 11/30/99 .947867 346,756 365,828 366,124 (296)
Korean Won 3/31/00 1206.113355 1,157,632,000 959,804 965,095 (5,291)
Taiwan Dollar 3/31/00 31.879868 36,873,760 1,156,647 1,161,743 (5,096)
Japanese Yen 11/1/99 104.149999 18,849,876 180,988 180,623 365
Japanese Yen 11/2/99 105.043997 2,737,206 26,058 26,228 (170)
Japanese Yen 11/4/99 104.279636 2,115,749 20,311 20,289 22
Japanese Yen 1/20/00 105.829105 392,158,130 3,705,579 3,814,637 (109,058)
Japanese Yen 1/20/99 105.533089 154,464,225 1,463,657 1,502,519 (38,862)
Japanese Yen 2/28/00 107.840000 193,788,480 1,797,000 1,896,688 (99,688)
----------- ----------- ---------
TOTAL SHORT CONTRACTS $15,635,566 $15,840,727 $(205,161)
----------- ----------- ---------
----------- ----------- ---------
</TABLE>
See notes to financial statements.
98
<PAGE>
REPUBLIC SMALL CAP EQUITY PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS
OCTOBER 31, 1999
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
SECURITY DESCRIPTION AMOUNT VALUE
- -------------------- ------ -----
<S> <C> <C>
COMMON STOCKS (96.0%)
ADVERTISING (0.5%)
Catalina Marketing Corp. (b)................. 12,400 $ 1,160,950
------------
AIRLINES (0.4%)
Skywest, Inc................................. 33,600 833,700
------------
COMMERCIAL SERVICES (10.5%)
Alternative Resources Corp. (b).............. 54,770 212,234
Boron Lepore & Associates, Inc. (b).......... 68,800 447,200
Bright Horizons Family Solutions, Inc. (b)... 29,800 437,688
Caremark Rx, Inc. (b)........................ 808,700 3,942,412
Diamond Technology Partners, Inc. (b)........ 1,800 116,325
Gartner Group, Inc. (b)...................... 37,900 369,525
Gartner Group, Inc. Class B.................. 2,050 19,219
Interim Services, Inc. (b)................... 88,124 1,448,538
International Telecommunication Data Systems,
Inc. (b)................................... 98,100 974,869
Jupiter Communications, Inc. (b)............. 225 7,734
Learning Tree International, Inc. (b)........ 117,500 2,159,062
Luminant Worldwide Corp. (b)................. 39,425 1,542,503
Meta Group, Inc. (b)......................... 59,570 856,319
Modis Professional Services, Inc. (b)........ 109,864 1,229,104
National Processing, Inc. (b)................ 84,700 735,831
NOVA Corp. (b)............................... 208,040 5,409,039
Orthodontic Centers Of America (b)........... 72,000 990,000
Parexel International Corp. (b).............. 137,800 1,317,713
Professional Detailing, Inc. (b)............. 19,500 487,500
Renaissance Worldwide, Inc. (b).............. 116,000 398,750
Sodexho Marriot Services, Inc. (b)........... 63,500 1,194,594
Superior Consultant Holdings (b)............. 55,100 585,438
------------
24,881,597
------------
COMPUTER EQUIPMENT (4.3%)
APEX, Inc. (b)............................... 72,800 1,237,600
Black BOX Corp. (b).......................... 19,600 994,700
Computer Network Technology Corp. (b)........ 108,900 1,749,206
</TABLE>
See notes to financial statements.
99
<PAGE>
REPUBLIC SMALL CAP EQUITY PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
SECURITY DESCRIPTION AMOUNT VALUE
- -------------------- ------ -----
<S> <C> <C>
COMMON STOCKS (CONTINUED)
COMPUTER EQUIPMENT (CONTINUED)
Crossroads Systems, Inc. (b)................. 21,775 $ 1,548,747
MMC Networks, Inc. (b)....................... 26,300 838,313
Paradyne Networks Corp. (b).................. 34,200 1,038,825
TriQuint Semiconductor, Inc. (b)............. 35,500 2,840,000
------------
10,247,391
------------
COMPUTER SERVICES (12.9%)
Affiliated Computer Services, Inc. (b)....... 75,805 2,880,590
Ceridian Corp. (b)........................... 69,500 1,524,656
CheckFree Holdings Corp. (b)................. 60,900 2,276,138
Complete Business Solutions (b).............. 97,500 1,413,750
Computer Horizons Corp. (b).................. 34,200 380,475
Entrust Technologies, Inc. (b)............... 32,800 824,100
Mecon, Inc. (b).............................. 18,600 113,925
RSA Security, Inc. (b)....................... 234,100 8,310,550
Sungard Data Systems, Inc. (b)............... 210,352 5,140,477
Synopsys, Inc. (b)........................... 29,518 1,839,340
Technology Solutions Co. (b)................. 227,225 4,658,113
VeriSign, Inc. (b)........................... 11,400 1,407,900
------------
30,770,014
------------
COMPUTER SOFTWARE (22.4%)
Acxiom Corp. (b)............................. 33,740 556,710
Aspen Technology, Inc. (b)................... 148,700 1,895,925
Cadence Design Systems, Inc. (b)............. 136,166 2,068,021
Cambridge Technology Partners, Inc. (b)...... 10,500 116,156
CBT Group PLC, ADR (b)....................... 267,900 5,525,437
Clarify, Inc. (b)............................ 39,200 3,028,200
CSG Systems International (b)................ 49,400 1,695,038
Cysive, Inc. (b)............................. 9,250 532,453
Data Return Corp. (b)........................ 525 7,908
Dendrite International, Inc. (b)............. 29,636 929,830
Digital Insight Corp. (b).................... 11,000 435,875
</TABLE>
See notes to financial statements.
100
<PAGE>
REPUBLIC SMALL CAP EQUITY PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
SECURITY DESCRIPTION AMOUNT VALUE
- -------------------- ------ -----
<S> <C> <C>
COMMON STOCKS (CONTINUED)
COMPUTER SOFTWARE (CONTINUED)
DST Systems, Inc. (b)........................ 31,158 $ 1,984,375
Edify Corp. (b).............................. 47,200 610,650
Fiserv, Inc. (b)............................. 17,762 568,384
Harbinger Corp. (b).......................... 173,350 2,762,766
Hcia, Inc. (b)............................... 71,800 758,388
Hyperion Solutions Corp. (b)................. 95,300 2,322,938
IDX Systems Corp. (b)........................ 77,600 1,416,200
IMRglobal Corp. (b).......................... 209,800 2,150,450
infoUSA, Inc. (b)............................ 114,190 631,613
Inspire Insurance Solutions, Inc. (b)........ 14,200 90,525
JDA Software Group, Inc. (b)................. 65,000 585,000
Liberate Technologies (b).................... 28,825 1,963,703
Macromedia, Inc. (b)......................... 16,900 1,088,994
Netopia, Inc. (b)............................ 22,400 1,195,600
Network Solutions, Inc. (b).................. 29,600 3,507,599
Peerless Systems Corp. (b)................... 17,600 168,850
Probusiness Services, Inc. (b)............... 54,500 1,369,313
Proxicom, Inc. (b)........................... 12,200 936,350
Security First Technologies Corp. (b)........ 25,700 1,032,819
Silver Stream Software, Inc. (b)............. 6,825 355,753
Sportsline USA, Inc. (b)..................... 83,900 3,015,156
Sterling Software, Inc. (b).................. 53,500 1,173,656
Transaction Systems Architects, Inc. Class A
(b)........................................ 100,535 3,091,451
Trintech Group PLC (b)....................... 1,050 18,506
Vantive Corp. (b)............................ 121,300 1,410,113
VerticalNet, Inc. (b)........................ 9,100 509,600
Wind River Systems (b)....................... 70,600 1,438,475
Xionics Document Technologies, Inc. (b)...... 62,000 372,000
------------
53,320,780
------------
CONSUMER GOODS & SERVICES (0.4%)
Blyth Industries, Inc. (b)................... 34,775 871,548
------------
</TABLE>
See notes to financial statements.
101
<PAGE>
REPUBLIC SMALL CAP EQUITY PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
SECURITY DESCRIPTION AMOUNT VALUE
- -------------------- ------ -----
<S> <C> <C>
COMMON STOCKS (CONTINUED)
DISTRIBUTION (0.0%)
Valley Media, Inc. (b)....................... 4,500 $ 51,188
------------
ELECTRICAL & ELECTRONICS (10.2%)
AFC Cable Systems, Inc. (b).................. 26,800 1,008,350
Analog Devices (b)........................... 35,540 1,888,063
Belden, Inc.................................. 42,945 789,114
Burr-Brown Corp. (b)......................... 64,543 2,537,346
Cable Design Technologies Corp. (b).......... 62,047 1,202,161
Credence Systems Corp. (b)................... 36,300 1,656,188
Dupont Photomasks, Inc. (b).................. 28,215 1,396,643
Etec Systems, Inc. (b)....................... 75,900 2,898,430
Lattice Semiconductor Corp. (b).............. 67,100 2,373,662
Microchip Technology, Inc. (b)............... 18,182 1,211,376
MKS Instruments, Inc. (b).................... 33,200 697,200
Photronics, Inc. (b)......................... 61,300 1,283,469
PMC-Sierra, Inc. (b)......................... 18,600 1,753,050
Sawtek, Inc. (b)............................. 33,000 1,353,000
Sipex Corp. (b).............................. 96,200 1,106,300
Varian, Inc.................................. 56,700 1,070,213
------------
24,224,565
------------
FINANCIAL SERVICES (1.7%)
Federated Investors.......................... 63,200 1,090,200
Student Loan Corp............................ 27,000 1,319,625
Waddel & Reed Financial, Inc................. 64,600 1,550,400
------------
3,960,225
------------
FOOD & BEVERAGE PRODUCTS (1.4%)
Del Monte Foods Co. (b)...................... 171,800 2,394,463
Tootsie Roll Industries, Inc................. 29,221 925,940
------------
3,320,403
------------
</TABLE>
See notes to financial statements.
102
<PAGE>
REPUBLIC SMALL CAP EQUITY PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
SECURITY DESCRIPTION AMOUNT VALUE
- -------------------- ------ -----
<S> <C> <C>
COMMON STOCKS (CONTINUED)
HEALTH CARE (7.8%)
Cyberonics (b)............................... 60,700 $ 853,594
Cytyc Corp. (b).............................. 76,400 3,036,899
Haemonetics Corp. (b)........................ 49,400 923,163
Henry Schein, Inc. (b)....................... 53,200 691,600
Hologic, Inc. (b)............................ 18,000 63,000
Idexx Laboratories, Inc. (b)................. 246,400 3,726,799
Impath, Inc. (b)............................. 40,500 972,000
Lifepoint Hospital, Inc...................... 69,800 824,513
MID Atlantic Medical Services, Inc. (b)...... 110,800 602,475
Osteotech, Inc. (b).......................... 70,900 926,131
PSS World Medical, Inc. (b).................. 97,400 754,850
Quorum Health Group, Inc. (b)................ 82,600 660,800
Steris Corp. (b)............................. 43,400 577,763
Total Renal Care Holdings (b)................ 344,892 2,522,023
V.I. Technologies, Inc. (b).................. 58,100 257,819
Ventana Medical Systems (b).................. 53,300 1,069,331
------------
18,462,760
------------
INDUSTRIAL (0.4%)
Dycom Industries, Inc. (b)................... 31,500 1,025,719
------------
INTERNET RELATED (0.5%)
Akamai Technologies, Inc. (b)................ 425 11,050
Ticketmaster Online-CitySearch, Inc. (b)..... 47,300 1,064,250
------------
1,075,300
------------
MACHINERY & EQUIPMENT (0.4%)
Kulicke & Soffa Industries (b)............... 36,000 1,059,750
------------
MEDIA (2.4%)
Emmis Broadcasting Corp. Class A (b)......... 1,100 79,338
Hearst - Argyle Television, Inc. (b)......... 14,000 284,375
Scholastic Corp. (b)......................... 81,900 3,808,349
Spanish Broadcasting System, Inc. (b)........ 11,100 295,538
</TABLE>
See notes to financial statements.
103
<PAGE>
REPUBLIC SMALL CAP EQUITY PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
SECURITY DESCRIPTION AMOUNT VALUE
- -------------------- ------ -----
<S> <C> <C>
COMMON STOCKS (CONTINUED)
MEDIA (CONTINUED)
VDI MultiMedia (b)........................... 44,100 $ 427,219
Young Broadcasting, Inc. Class A (b)......... 17,900 830,112
------------
5,724,931
------------
OIL & GAS (3.8%)
Dril-Quip (b)................................ 20,300 474,513
Global Industries Ltd. (b)................... 290,800 2,326,399
Input/Output, Inc. (b)....................... 95,500 501,375
National-Oilwell, Inc. (b)................... 43,400 588,613
Newfield Exploration Co. (b)................. 65,200 1,919,325
Noble Drilling Corp. (b)..................... 94,400 2,094,500
Weatherford International, Inc. (b).......... 34,470 1,167,671
------------
9,072,396
------------
PACKAGING & CONTAINERS (0.4%)
Ivex Packaging Corp. (b)..................... 110,300 1,040,956
------------
PHARMACEUTICALS (0.1%)
Amerisource Health Corp. Class A (b)......... 20,400 306,000
------------
REAL ESTATE INVESTMENT TRUST (0.5%)
Kilroy Realty Corp........................... 27,000 518,063
Meristar Hospitality Corp.................... 43,900 705,143
------------
1,223,206
------------
RESTAURANTS, LODGING & HOSPITALITY (2.6%)
Applebee's International, Inc................ 44,145 1,271,928
Buffets, Inc. (b)............................ 120,494 1,122,100
Four Seasons Hotels, Inc..................... 19,700 821,244
Landry's Seafood Restaurants (b)............. 49,700 372,750
Papa John's International, Inc. (b).......... 32,100 1,199,738
Sonic Corp. (b).............................. 46,827 1,311,155
------------
6,098,915
------------
</TABLE>
See notes to financial statements.
104
<PAGE>
REPUBLIC SMALL CAP EQUITY PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
SECURITY DESCRIPTION AMOUNT VALUE
- -------------------- ------ -----
<S> <C> <C>
COMMON STOCKS (CONTINUED)
RETAIL STORES (2.5%)
BJ's Wholesale Club, Inc. (b)................ 11,500 $ 354,344
CSK Auto Corp. (b)........................... 65,000 1,161,875
Gymboree Corp. (b)........................... 112,400 723,575
Office Depot, Inc. (b)....................... 84,800 1,054,700
PETCO Animal Supplies, Inc. (b).............. 105,400 1,218,688
Regis Corp................................... 70,650 1,311,440
------------
5,824,622
------------
TELECOMMUNICATIONS (5.3%)
Adelphia Business Solutions, Inc. (b)........ 48,000 1,362,000
Allegiance Telecom, Inc. (b)................. 12,100 834,900
DSP Communications, Inc. (b)................. 75,400 2,653,138
Intermedia Communications, Inc. (b).......... 148,000 3,847,999
Nextlink Communications, Inc. (b)............ 25,400 1,519,238
Transaction Network Services, Inc. (b)....... 57,500 2,289,219
Triton PCS Holdings, Inc. (b)................ 900 31,725
------------
12,538,219
------------
TELECOMMUNICATIONS-EQUIPMENT (4.1%)
Advanced Fibre Communication (b)............. 69,100 1,511,563
Aether Systems, Inc. (b)..................... 525 36,520
American Tower Corp. (b)..................... 34,885 664,995
Antec Corp. (b).............................. 24,100 1,168,850
Natural Microsystems Corp. (b)............... 38,100 912,019
Pinnacle Holdings, Inc. (b).................. 87,900 2,109,600
Proxim, Inc. (b)............................. 31,700 1,483,956
RF Micro Devices, Inc. (b)................... 26,400 1,362,900
Tekelec (b).................................. 29,900 379,356
------------
9,629,759
------------
TRANSPORTATION & SHIPPING (0.5%)
Atlas Air, Inc. (b).......................... 45,950 1,240,650
------------
TOTAL COMMON STOCKS (COST $211,371,252)...... 227,965,544
------------
</TABLE>
See notes to financial statements.
105
<PAGE>
REPUBLIC SMALL CAP EQUITY PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
SECURITY DESCRIPTION AMOUNT VALUE
- -------------------- ------ -----
<S> <C> <C>
U.S. GOVERNMENT AND GOVERNMENT
AGENCY OBLIGATIONS (3.2%)
FEDERAL HOME LOAN MORTGAGE CORP. (3.2%)
5.16%, 11/1/99............................... 7,500,000 $ 7,500,000
------------
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY
OBLIGATIONS
(COST $7,500,000).......................... 7,500,000
------------
TOTAL INVESTMENTS -- 99.2%
(COST $218,871,252) (a).................... 235,465,544
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.8%...................... 1,839,641
------------
NET ASSETS -- 100.0%....................... $237,305,185
------------
------------
</TABLE>
Percentages indicated are based on net assets of $237,305,185.
ADR -- American Depositary Receipt
PLC -- Public Limited Company
(a) Represents cost for financial reporting purposes and differs for federal
income tax purposes by the amount of losses recognized for financial
reporting purposes in excess of federal income tax reporting of
approximately $2,106,758. Cost for federal income tax purposes differs from
value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.................. $ 42,173,214
Unrealized depreciation.................. (27,685,680)
------------
Net unrealized appreciation.............. $ 14,487,534
------------
------------
</TABLE>
(b) Non-income producing security.
See notes to financial statements.
106
<PAGE>
REPUBLIC PORTFOLIOS
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
<TABLE>
<CAPTION>
FIXED INTERNATIONAL SMALL CAP
INCOME EQUITY EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- ------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (cost
$295,644,391, $194,057,165, and
$218,871,252, respectively)....... $289,787,319 $288,544,800 $235,465,544
Foreign cash, at value (cost $0,
$469,802, and $0, respectively)... -- 470,185 --
Receivable for investments sold..... 594,822 1,422,203 4,739,544
Interest receivable................. 1,860,792 -- --
Dividends receivable................ -- 253,665 11,214
Unrealized appreciation on open
forward foreign currency
contracts......................... -- 122,201 --
Deferred organization costs......... 2,550 2,688 15,315
------------ ------------ ------------
TOTAL ASSETS.......................... 292,245,483 290,815,742 240,231,617
------------ ------------ ------------
LIABILITIES:
Payable to custodian for
overdraft......................... 245,320 -- 138,921
Payable for investments purchased... 95,006,235 742,693 2,557,180
Payable for closed forward foreign
currency contracts................ -- 556,124 --
Unrealized depreciation on open
forward foreign currency
contracts......................... -- 451,897 --
Accrued expenses and other payables:
Investment management fees........ 66,090 168,763 167,115
Administration fees............... 6,949 474 7,954
Accounting fees................... 6,033 6,285 3,992
Custodian fees.................... 6,551 60,000 10,498
Other payables.................... 36,842 -- 40,772
------------ ------------ ------------
TOTAL LIABILITIES..................... 95,374,020 1,986,236 2,926,432
------------ ------------ ------------
NET ASSETS:
Applicable to investors' beneficial
interest.......................... $196,871,463 $288,829,506 $237,305,185
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
See notes to financial statements.
107
<PAGE>
REPUBLIC PORTFOLIOS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1999
<TABLE>
<CAPTION>
FIXED INTERNATIONAL SMALL CAP
INCOME EQUITY EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income........................ $13,101,433 $ 313,020 $ 440,535
Dividend income........................ 109,981 4,028,573 342,378
Foreign tax withholding................ -- (588,260) (129)
----------- ----------- -----------
TOTAL INVESTMENT INCOME.................. 13,211,414 3,753,333 782,784
----------- ----------- -----------
EXPENSES:
Investment management fees............. 734,220 1,762,032 1,908,984
Administration fees.................... 87,775 113,851 100,277
Accounting fees........................ 46,560 68,086 48,245
Custodian fees and expenses............ 61,693 238,170 128,970
Legal fees............................. 18,352 37,296 34,632
Audit fees............................. 14,504 14,504 14,504
Amortization of organization costs..... 13,501 13,936 8,107
Other expenses......................... 75,194 -- 7,145
----------- ----------- -----------
Total expenses....................... 1,051,799 2,247,875 2,250,864
----------- ----------- -----------
NET INVESTMENT INCOME/(LOSS)............. 12,159,615 1,505,458 (1,468,080)
----------- ----------- -----------
REALIZED/UNREALIZED GAINS/(LOSSES) FROM
INVESTMENTS:
Net realized gains/(losses) from
investments, futures and foreign
currency transactions................ (5,842,322) 15,448,935 26,630,272
Change in unrealized
appreciation/(depreciation) from
investments, futures and foreign
currencies........................... (3,882,328) 77,634,898 21,946,566
----------- ----------- -----------
Net realized/unrealized gains/(losses)
from investments, futures and foreign
currency transactions................ (9,724,650) 93,083,833 48,576,838
----------- ----------- -----------
CHANGE IN NET ASSETS RESULTING FROM
OPERATIONS............................. $ 2,434,965 $94,589,291 $47,108,758
----------- ----------- -----------
----------- ----------- -----------
</TABLE>
See notes to financial statements.
108
<PAGE>
REPUBLIC FIXED INCOME PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
OCTOBER 31,
------------------------------
1999 1998
------------ ------------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income.......................... $ 12,159,615 $ 8,751,072
Net realized gains/(losses) from investments
and futures transactions..................... (5,842,322) 4,450,864
Change in unrealized depreciation from
investments and futures...................... (3,882,328) (4,437,928)
------------ ------------
Change in net assets resulting from operations... 2,434,965 8,764,008
------------ ------------
CHANGE IN NET ASSETS FROM TRANSACTIONS IN
INVESTORS' BENEFICIAL INTERESTS................ 21,363,820 45,903,722
------------ ------------
CHANGE IN NET ASSETS............................. 23,798,785 54,667,730
NET ASSETS:
Beginning of period............................ 173,072,678 118,404,948
------------ ------------
End of period.................................. $196,871,463 $173,072,678
------------ ------------
------------ ------------
</TABLE>
See notes to financial statements.
109
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
OCTOBER 31,
---------------------------
1999 1998
------------ ------------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income............................ $ 1,505,458 $ 1,809,383
Net realized gains from investments and foreign
currency transactions.......................... 15,448,935 6,875,073
Change in unrealized appreciation/(depreciation)
from investments and foreign currencies........ 77,634,898 (4,090,471)
------------ ------------
Change in net assets resulting from operations..... 94,589,291 4,593,985
------------ ------------
CHANGE IN NET ASSETS FROM TRANSACTIONS IN
INVESTORS' BENEFICIAL INTERESTS.................. (11,497,147) (5,985,698)
------------ ------------
CHANGE IN NET ASSETS............................... 83,092,144 (1,391,713)
NET ASSETS:
Beginning of period.............................. 205,737,362 207,129,075
------------ ------------
End of period.................................... $288,829,506 $205,737,362
------------ ------------
------------ ------------
</TABLE>
See notes to financial statements.
110
<PAGE>
REPUBLIC SMALL CAP EQUITY PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
OCTOBER 31,
---------------------------
1999 1998
------------ ------------
<S> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment loss.............................. $ (1,468,080) $ (1,220,797)
Net realized gains from investment
transactions................................... 26,630,272 23,431,405
Change in unrealized appreciation/(depreciation)
from investments............................... 21,946,566 (33,590,706)
------------ ------------
Change in net assets resulting from operations..... 47,108,758 (11,380,098)
------------ ------------
CHANGE IN NET ASSETS FROM TRANSACTIONS IN
INVESTORS' BENEFICIAL INTERESTS.................. 3,679,033 (15,842,350)
------------ ------------
CHANGE IN NET ASSETS............................... 50,787,791 (27,222,448)
NET ASSETS:
Beginning of period.............................. 186,517,394 213,739,842
------------ ------------
End of period.................................... $237,305,185 $186,517,394
------------ ------------
------------ ------------
</TABLE>
See notes to financial statements.
111
<PAGE>
REPUBLIC PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS - OCTOBER 31, 1999
1. ORGANIZATION:
The Republic Fixed Income Portfolio, Republic International Equity
Portfolio and Republic Small Cap Equity Portfolio (individually a
'Portfolio', collectively the 'Portfolios') are diversified series of the
Republic Portfolios (the 'Portfolio Trust'), an 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 1, 1994. The Portfolios
operate as master funds in master-feeder arrangements. The Declaration of
Trust permits the Trustees to issue an unlimited number of beneficial
interests in the Portfolios.
The investment objective of the Republic Fixed Income Portfolio is to
realize above-average total return over a market cycle of three to five
periods, consistent with reasonable risk, through investment in a
diversified portfolio of U.S. Government securities, corporate bonds
(including bonds rated below investment grade commonly referred to as 'junk
bonds'), foreign fixed-income securities, mortgage-backed securities of
domestic issuers and other fixed-income securities. The Fixed Income
Portfolio's average weighted maturity will ordinarily exceed five years.
The investment objective of the Republic International Equity Portfolio
is to seek long-term growth of capital and future income through investment
primarily in securities of non-U.S. issuers and securities of issuers whose
principal markets are outside of the United States.
The investment objective of the Small Cap Equity Portfolio is to seek
long-term growth of capital by investing primarily in equity securities of
small- and medium-sized companies that are early in their life cycle but
which may have potential to become major enterprises ('emerging growth
companies').
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of the significant accounting policies
followed by the Portfolios in the preparation of their 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 period. Actual results could differ
from those estimates.
SECURITIES VALUATION:
The value of each security held by the portfolios is based either on
the last sale price on a national securities exchange, or in the absence of
recorded sales, at the closing bid prices on such exchanges, or at the
quoted bid price in the over-the-counter market. Securities or other assets
for which market quotations are not
112
<PAGE>
REPUBLIC PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS - OCTOBER 31, 1999 (CONTINUED)
readily available are valued at fair market value as determined in good
faith by or at the direction of the Board of Trustees. All debt portfolio
securities with a remaining maturity of less than 60 days or less are valued
at amortized cost, which approximates market value. All debt portfolio
securities with a remaining maturity greater than 60 days are valued at
market value.
Bonds and other fixed-income securities which are traded
over-the-counter and on a stock exchange will be valued according to the
broadest and most representative market. It is expected that for bonds and
other fixed income securities this ordinarily will be the over-the-counter
market. Bonds and other fixed income securities (other than short-term
obligations but including listed issues) in the Portfolios may be valued on
the basis of valuations furnished by a pricing service, the use of which has
been approved by the Board of Trustees of the Portfolio Trust. In making
such valuations, the pricing service utilizes both dealer-supplied
valuations and electronic data processing techniques which take into account
appropriate factors such as institutional-size trading in similar groups of
securities, yield, quality, coupon rate, maturity, type of issue, trading
characteristics and other market data, without exclusive reliance upon
quoted prices or exchange or over-the-counter prices, since such valuations
are believed to reflect more accurately the fair value of such securities.
Short-term debt obligations are valued at amortized cost, which constitutes
fair value as determined by the Board of Trustees of the Portfolio Trust.
Bonds and other fixed income securities listed on a foreign exchange
are valued at the last quoted sales price available before the time when net
assets are valued.
Futures contracts are normally valued at the settlement price on the
exchange on which they are traded.
Portfolio securities (other than short-term obligations) for which
there are no such valuations are valued at fair value as determined in good
faith by or under the direction of the Board of Trustees of the Portfolio
Trust.
FOREIGN CURRENCY TRANSLATION:
The accounting records of the Portfolios 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 Portfolios do 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
113
<PAGE>
REPUBLIC PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS - OCTOBER 31, 1999 (CONTINUED)
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 Portfolios 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 Portfolios 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.
FUTURES CONTRACTS:
Each Fund may invest in financial futures contracts for the purpose of
hedging their existing portfolio securities or securities it intends to
purchase against fluctuations in fair value caused by changes in prevailing
market interest rates. Upon entering into a financial futures contract, the
Fund is required to pledge to the broker an amount of cash and/or other
assets equal to a certain percentage of the contract amount (initial margin
deposit). Subsequent payments, known as 'variation margin', are made or
received by the Fund each day, depending on the daily fluctuations in the
fair value of the underlying security. The Fund recognizes a gain or loss
equal to the daily variation margin. Should market conditions move
unexpectedly, the Fund may not achieve the anticipated benefits of the
financial futures contracts and may realize a loss. The use of futures
transactions involves the risk of imperfect correlation in movements in the
price of futures contracts, interest rates and the underlying hedged assets.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS:
The Fixed Income Portfolio records when-issued or delayed delivery
transactions on the trade date and maintains qualifying liquid assets having
a value sufficient to make payment for securities purchased. Securities
purchased on a when-issued or delayed delivery basis are marked to market
daily and begin earning interest on the settlement date. Losses may arise
due to changes in the market of the underlying securities or if the
counterparty does not perform under the contract.
SECURITIES TRANSACTIONS AND RELATED INCOME:
Securities transactions are accounted for on the trade date. Realized
gains and losses on investments sold are recorded on the identified cost
basis.
114
<PAGE>
REPUBLIC PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS - OCTOBER 31, 1999 (CONTINUED)
Investment income is accrued as earned. Dividend income is recorded on the
ex-dividend date.
EXPENSES 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.
FEDERAL INCOME TAXES:
Each Portfolio will be treated as a partnership for U.S. Federal income
tax purposes. Accordingly, each Portfolio passes through all of its net
investment income and gains and losses to its partners, and is therefore not
subject to U.S. Federal income tax. As such, an investor in the Portfolios
will be taxed on their share of the Portfolios' ordinary income and capital
gains. It is intended that the Portfolios will be managed in such a way that
an investor will be able to satisfy the requirements of the Internal Revenue
Code applicable to regulated investment companies.
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.
ORGANIZATION EXPENSES:
Costs incurred in connection with the organization and initial
registration of the Trust, which have been allocated among the Funds, have
been deferred and are being amortized over a five year period, beginning
with each Fund's commencement of operations.
3. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES:
INVESTMENT MANAGEMENT:
Republic National Bank of New York ('Republic' or the 'Investment
Manager') serves as the Investment Manager to the Portfolios pursuant to an
investment management contract with the Portfolio Trust. Subject to the
general guidance and the policies set by the Trustees of the Portfolio
Trust, Republic provides general supervision over the investment management
functions performed by the Sub-Advisers (defined below). For its services
under the Investment Management Contract, the Manager is entitled to receive
from the Portfolios, fees computed daily and paid monthly, at the annual
rate of 0.20% of the Fixed Income Portfolio's average daily net assets and
at the annual rate of 0.25% of each of the International Equity Portfolio's
and Small Cap Equity Portfolio's average daily net
115
<PAGE>
REPUBLIC PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS - OCTOBER 31, 1999 (CONTINUED)
assets. Republic New York Corporation has agreed to be acquired by HSBC
Holdings plc.
SUB-ADVISORY:
Miller, Anderson & Sherrerd (the 'Fixed Income Sub-Adviser')
continuously manages the investment portfolio of the Fixed Income Portfolio
pursuant to a sub-advisory agreement with the Investment Manager. For its
services, the Fixed Income Sub-Adviser is paid a fee by the Fixed Income
Portfolio, computed daily and based on the Fixed Income Portfolio's average
daily net assets, equal on an annual basis to 0.375% of the net assets up to
$50 million, 0.25% of the net assets over $50 million up to $95 million,
$300,000 in total when net assets exceed $95 million up to $150 million,
0.20% of net assets over $150 million up to $250 million, and 0.15% of net
assets over $250 million.
Capital Guardian Trust Company (the 'International Equity Sub-Adviser')
continuously manages the investment portfolio of the International Equity
Portfolio pursuant to a sub-advisory agreement with the Investment Manager.
For its services, the International Equity Sub-Adviser is paid a fee by the
International Equity Portfolio, computed daily and based on the
International Equity Portfolio's average daily net assets, equal on an
annual basis to 0.70% of the net assets up to $25 million, 0.55% of the net
assets over $25 million up to $50 million, 0.425% of net assets over $50
million up to $250 million, and 0.375% of net assets over $250 million.
MFS Institutional Advisors, Inc. (the 'Small Cap Equity Sub-Adviser')
continuously manages the investment portfolio of the Small Cap Equity
Portfolio pursuant to a sub-advisory agreement with the Investment Manager.
For its services, the Small Cap Equity Sub-Adviser is paid a fee by the
Small Cap Equity Portfolio, computed daily and based on the Small Cap Equity
Portfolio's average daily net assets, equal on an annual basis to 0.75% of
the net assets up to $50 million and 0.60% of the net assets in excess of
$50 million.
ADMINISTRATION:
BISYS Fund Services Limited Partnership ('BISYS'), and BISYS Fund
Services Ohio, Inc. ('BISYS Ohio') are wholly-owned subsidiaries of The
BISYS Group, Inc. BISYS Ohio, with whom certain officers of the Trust are
affiliated, serves the Trust as Administrator. Such officers are paid no
fees directly by the Funds for serving as officers of the Trust. Under the
terms of the administration agreement with the Fixed Income Portfolio,
International Equity Portfolio and Small Cap Equity Portfolio, BISYS Ohio
receives from each Fund a fee accrued daily and paid monthly equal on an
annual basis to:
<TABLE>
<CAPTION>
ADMINISTRATION
BASED ON AVERAGE DAILY NET ASSETS OF FEE RATE
------------------------------------ --------
<S> <C>
Up to $1 billion........................................ 0.050%
In excess of $1 billion but not exceeding $2 billion.... 0.040%
In excess of $2 billion................................. 0.035%
</TABLE>
116
<PAGE>
REPUBLIC PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS - OCTOBER 31, 1999 (CONTINUED)
The fees paid by the Trust are allocated to each Fund based upon its pro
rata share of their net assets.
Prior to April 1, 1999, the fee breakpoints were determined on the basis
of each Fund's average daily net assets. Effective April 1, 1999 the fee
breakpoints are determined on the basis of the aggregate average daily net
assets of all registered investment companies advised by the Investment
Manager for which BISYS serves as Administrator.
FUND ACCOUNTING:
Effective April 17, 1999 BISYS replaced Investors Bank & Trust Company
('IBT'), as fund accounting agent to the Portfolios. For its services to
the Portfolios, BISYS receives an annual per fund fee paid monthly for the
Fixed Income Portfolio, Small Cap Equity Portfolio and the International
Equity Portfolio.
CUSTODY:
Republic National Bank of New York Serves as custodian to the Fixed
Income Portfolio and Small Cap Equity Portfolio. IBT serves as custodian to
the International Equity Portfolio.
4. INVESTMENT TRANSACTIONS:
During the year ended October 31, 1999, each Portfolio purchased and
sold securities, excluding short-term securities, in the following amounts:
<TABLE>
<CAPTION>
PURCHASES SALES
--------- -----
<S> <C> <C>
Fixed Income Portfolio.............. $1,126,745,596 $1,064,720,665
International Equity Portfolio...... 82,121,578 108,563,830
Small Cap Equity Portfolio.......... 162,620,424 163,418,311
</TABLE>
5. CONCENTRATION OF RISK:
The Fixed Income Portfolio conducts a high level of trading and invests
a substantial portion of its assets in when-issued federal agency securities,
and therefore, it may be more affected by economic developments in these
markets than would be a comparable fixed income mutual fund.
117
<PAGE>
REPUBLIC FIXED INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEARS ENDED OCTOBER 31, JANUARY 9, 1995
-------------------------------------------- TO OCTOBER 31,
1999 1998 1997 1996 1995(c)
---- ---- ---- ---- ----------------
<S> <C> <C> <C> <C> <C>
RATIOS/SUPPLEMENTARY
DATA:
Net assets at end
of period
(000's).......... $196,871 $173,073 $118,405 $64,178 $30,023
Ratio of expenses
to average net
assets........... 0.56% 0.62% 0.57% 0.67% 0.46%(b)
Ratio of net
investment income
to average net
assets........... 6.43% 6.03% 6.17% 5.66% 6.04%(b)
Ratio of expenses
to average net
assets........... 0.56% 0.62% 0.77%(a) 0.90%(a) 1.00%(a),(b)
Portfolio
turnover......... 433.26% 126.40% 349.00% 152.00% 100.00%
</TABLE>
(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.
(c) Period from commencement of operations.
See notes to financial statements.
118
<PAGE>
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEARS ENDED OCTOBER 31, JANUARY 9, 1995
-------------------------------------------- TO OCTOBER 31,
1999 1998 1997 1996 1995(c)
---- ---- ---- ---- ----------------
<S> <C> <C> <C> <C> <C>
RATIOS/SUPPLEMENTARY
DATA:
Net assets at end
of year
(000's).......... $288,830 $205,737 $207,129 $135,239 $39,929
Ratio of expenses
to average net
assets........... 0.91% 0.97% 0.76% 0.83% 0.64%(b)
Ratio of net
investment income
to average net
assets........... 0.61% 0.80% 1.21% 1.14% 1.55%(b)
Ratio of expenses
to average net
assets........... 0.91% 0.97% 1.01%(a) 1.10%(a) 1.39%(a),(b)
Portfolio
turnover......... 34.26% 40.47% 30.00% 23.30% 3.07%
</TABLE>
(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.
(c) Period from commencement of operations.
See notes to financial statements.
119
<PAGE>
REPUBLIC SMALL CAP EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEARS ENDED OCTOBER 31, SEPTEMBER 3, 1996
---------------------------------- TO OCTOBER 31,
1999 1998 1997 1996(c)
---- ---- ---- ----------------
<S> <C> <C> <C> <C>
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of year
(000's).................. $237,305 $186,517 $213,740 $119,901
Ratio of expenses to
average net assets....... 1.04% 1.03% 0.84% 0.82%(b)
Ratio of net investment
loss to average net
assets................... (0.68%) (0.57%) (0.33%) (0.11%)(b)
Ratio of expenses to
average net assets....... 1.04% 1.06%(a) 1.09%(a) 1.10%(a),(b)
Portfolio turnover......... 77.74% 154.69% 92.18% 50.55%
</TABLE>
(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.
(c) Period from commencement of operations.
See notes to financial statements.
120
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees
Republic Portfolios:
We have audited the accompanying statements of assets and liabilities of
Republic Fixed Income Portfolio, Republic International Equity Portfolio and
Republic Small Cap Equity Portfolio (collectively, the Funds), including the
schedules of portfolio investments, as of October 31, 1999, and the related
statements of operations, statements of changes in net assets and the financial
highlights for each of the periods indicated herein. These financial statements
and the financial highlights are the responsibility of the Funds' management.
Our responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights for the
period ended October 31, 1995 were audited by other auditors whose reports
thereon, dated December 8, 1995, expressed unqualified opinions on those
financial highlights.
We conducted our audits 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. Our procedures included verification of securities owned as of
October 31, 1999, by examination for Republic Fixed Income Portfolio and
Republic Small Cap Equity Portfolio, confirmation with the custodian for
Republic International Equity Portfolio, correspondence with brokers and other
appropriate audit procedures. 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
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of the
Funds as of October 31, 1999, the results of their operations, the changes in
their net assets and the financial highlights for each of the periods indicated
herein, in conformity with generally accepted accounting principles.
KPMG LLP
Columbus, Ohio
December 27, 1999
121
<PAGE>
REPUBLIC FUNDS
ADDITIONAL INFORMATION
SPECIAL MEETING OF SHAREHOLDERS (UNAUDITED):
A joint special meeting of the shareholders of the Republic Funds and the
Republic Advisor Funds Trust ('Companies') was held on September 10, 1999. This
meeting is required because Republic National Bank of New York ('Republic') will
undergo a change in control upon consummation of the acquisition by HSBC
Holdings plc of Republic's parent holding company Republic New York Corporation
('RNYC'). At the meeting shareholders voted on the following proposals:
PROPOSAL 1:
To approve, for each series of the Companies new investment advisory
agreements with Republic to take effect immediately following completion of the
acquisition by HSBC Holding plc of Republic's parent holding company, RNYC.
<TABLE>
<CAPTION>
% OF % OF % OF
FOR VOTING AGAINST VOTING ABSTAIN VOTING
FUND NAME VOTES SHARES VOTES SHARES VOTES SHARES
- --------- ----- ------ ----- ------ ----- ------
<S> <C> <C> <C> <C> <C> <C>
New York Tax-Free
Bond............... 2,703,138 97.27% 50,820 1.83% 25,001 0.90%
Equity Fund.......... 13,201,495 95.71% 586,687 4.25% 5,333 0.04%
Bond Fund............ 561,158 99.89% -- 0.00% 634 0.11%
Overseas Equity...... 502,726 99.84% 88 0.02% 734 0.14%
Opportunity Fund..... 762,239 99.81% 186 0.03% 1,245 0.16%
</TABLE>
PROPOSAL 2:
To approve, for those Funds with respect to which Republic has entered into
sub-advisory agreements with certain non-affiliate investment advisers
(collectively 'Sub-Advisers') new sub-advisory agreements between Republic and
the Sub-Advisers to take effect immediately following completion of the
acquisition.
<TABLE>
<CAPTION>
% OF % OF % OF
FOR VOTING AGAINST VOTING ABSTAIN VOTING
FUND NAME VOTES SHARES VOTES SHARES VOTES SHARES
- --------- ----- ------ ----- ------ ----- ------
<S> <C> <C> <C> <C> <C> <C>
Equity Fund.......... 13,196,584 95.67% 587,694 4.26% 9,237 0.07%
Bond Fund............ 561,634 99.97% 158 0.03% -- 0.00%
Overseas Equity...... 503,245 99.94% 88 0.02% 215 0.04%
Opportunity Fund..... 763,178 99.94% 186 0.02% 306 0.04%
</TABLE>
122
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
REPUBLIC NEW YORK TAX-FREE BOND FUND
REPUBLIC EQUITY FUND
REPUBLIC BOND FUND
REPUBLIC OVERSEAS EQUITY FUND
REPUBLIC OPPORTUNITY FUND
REPUBLIC FIXED INCOME PORTFOLIO
REPUBLIC INTERNATIONAL EQUITY PORTFOLIO
REPUBLIC SMALL CAP EQUITY PORTFOLIO
REPUBLIC FAMILY OF FUNDS:
CUSTOMER SERVICE
Republic National Bank of New York
452 Fifth Avenue
New York, NY 10018
(800) 782-8183
INVESTMENT MANAGER
Republic National Bank of New York
452 Fifth Avenue
New York, NY 10018
ADMINISTRATOR, TRANSFER AGENT,
DISTRIBUTOR AND SPONSOR
BISYS Fund Services
3435 Stelzer Road
Columbus, OH 43219
CUSTODIANS:
REPUBLIC NEW YORK
TAX-FREE BOND FUND,
REPUBLIC EQUITY FUND,
REPUBLIC FIXED INCOME PORTFOLIO AND
REPUBLIC SMALL CAP EQUITY PORTFOLIO
Republic National Bank of
New York
452 Fifth Avenue
New York, NY 10018
REPUBLIC INTERNATIONAL EQUITY
PORTFOLIO
Investors Bank & Trust Company
200 Clarendon Street -- 16th Floor
Boston, MA 02116
INDEPENDENT AUDITORS
KPMG LLP
Two Nationwide Plaza
Columbus, OH 43215
LEGAL COUNSEL
Dechert Price & Rhoads
1775 Eye Street N.W.
Washington, D.C. 20006
SUB-ADVISERS:
REPUBLIC EQUITY FUND
Alliance Capital Management, L.P.
1345 Avenue of the Americas
New York, NY 10105
Brinson Partners, Inc.
209 South LaSalle Street
Chicago, IL 60604
REPUBLIC FIXED INCOME PORTFOLIO
Miller Anderson & Sherrerd
One Tower Bridge
West Conshohocken, PA 19428
REPUBLIC INTERNATIONAL EQUITY
PORTFOLIO
Capital Guardian Trust Company
11100 Santa Monica Boulevard
Los Angeles, CA 90025
REPUBLIC SMALL CAP EQUITY
PORTFOLIO
MFS Institutional Advisors, Inc.
500 Boylston Street
Boston, MA 02116
This report is for the information of the shareholders of Republic Funds Trust.
Its use in connection with any offering of the Trust's shares is authorized only
in the case of a concurrent or prior delivery of the Trust's current prospectus.
Shares of the Fund are not an obligation of or guaranteed or endorsed by
Republic Bank of New York or its affiliates. In addition, such shares are not
insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board,
or any other agency and may involve investment risks, including the possible
loss of principal.
<PAGE>
ANNUAL REPORT
- -------------------
OCTOBER 31, 1999
REPUBLIC
NEW YORK TAX-FREE
BOND FUND
REPUBLIC EQUITY FUND
REPUBLIC BOND FUND
REPUBLIC
OVERSEAS EQUITY FUND
REPUBLIC
OPPORTUNITY FUND
REPUBLIC FAMILY OF FUNDS
STATEMENT OF DIFFERENCES
------------------------
The dagger symbol shall be expressed as................................ 'D'
