Republic Funds
Supplement dated July 13, 2000
To Prospectus for HSBC Mid-Cap Fund dated June 30, 2000
Name Change
Effective July 15, 2000, Republic Funds has been renamed the "HSBC
Investor Funds," and the HSBC Mid-Cap Fund has been renamed the "HSBC Investor
Mid-Cap Fund." References throughout the Prospectus are deemed modified
accordingly.
Correction to Performance Bar Chart and Table
The performance bar chart and table set forth on pages 6 and 7 of the
Prospectus are deleted in their entirety and replaced with the following:
"Performance Bar Chart and Table
The bar chart on this page shows the HSBC Investor Mid-Cap Fund's annual
returns for Class A Shares and how its performance has varied from year to year.
The bar chart assumes reinvestment of dividends and distributions, but does not
reflect sales charges. If sales charges were reflected, returns would be less
than those shown.
The returns for Class B Shares and Class C Shares will typically be lower,
and the returns for the Trust Shares will typically be higher, than the returns
for the Class A Shares shown in the bar chart because of differences in expenses
of each class.
Year-by-Year Total Returns as of 12/31(1) Class A Shares
-4.21% +32.96% +17.00% +30.28% +9.85% +38.82%
------ ------- ------- ------- ------ -------
1994 1995 1996 1997 1998 1999
Of course, past performance does not indicate how the Fund will perform in
the future.
Best quarter: 4Q 1999 + 21.90%
Worst quarter: 3Q 1998 - 22.61%
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1. The Fund commenced operations on June 30, 2000 upon the transfer to the
Fund of assets held in a collective investment trust (the "CTF")
maintained by HSBC Bank USA, for which HSBC Asset Management (Americas)
Inc. (HSBC) has provided day-to-day portfolio management. The CTF had
substantially the same investment objective, policies, and limitations
as the Fund. Assets from the CTF were transferred to the Fund.
The Fund calculates its performance for periods commencing prior to
June 30, 2000 by including the CTF's total return, adjusted to reflect
the deduction of fees and expenses applicable to the Fund as stated in
the Fee Table in this Prospectus (that is, adjusted to reflect
estimated expenses, including the Fund's pro rata share of the
aggregate annual operating expenses including 12b-1 fees).
The CTF was not registered with the SEC and thus was not subject to
certain investment restrictions that are imposed on the Fund. If the
CTF had been registered with the SEC, its performance might have been
adversely affected.
(Page 6)
The table below compares the Fund's performance(1) over time to that of the
S&P MidCap 400 Index. The Standard & Poor's MidCap 400 Index is a
capitalization-weighted index that measures the performance of the mid-range
sector of the US stock market.
The table assumes reinvestment of dividends and distributions, and includes
applicable sales charges.
Inception Past Year Five Year Since Inception
Date(2)
Class A July 1, 1993 33.79% 24.61% 18.82%
Class B (with
applicable CDSC) July 1, 1993 33.14% 24.11% 18.29%
Class C (with
applicable CDSC) July 1, 1993 36.14% 24.11% 18.29%
Trust Shares July 1, 1993 39.44% 25.24% 19.42%
S&P MidCap 400 Index(3) 14.72% 23.05% 17.98%
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1. The Fund commenced operations on June 30, 2000 upon the transfer to the
Fund of assets held in a collective investment trust (the "CTF")
maintained by HSBC Bank USA, for which HSBC Asset Management (Americas)
Inc. (HSBC) has provided day-to-day portfolio management. The CTF had
substantially the same investment objective, policies, and limitations
as the Fund. Assets from the CTF were transferred to the Fund.
The Fund calculates its performance for periods commencing prior to
June 30, 2000 by including the CTF's total return, adjusted to reflect
the deduction of fees and expenses applicable to the Fund as stated in
the Fee Table in this Prospectus (that is, adjusted to reflect
estimated expenses, including the Fund's pro rata share of the
aggregate annual operating expenses including 12b-1 fees).
The CTF was not registered with the SEC and thus was not subject to
certain investment restrictions that are imposed on the Fund. If the
CTF had been registered with the SEC, its performance might have been
adversely affected.
2. Prior to July 1, 1993, the collective investment trust had a different
investment objective and, therefore the performance for that time
period is not included.
3. The Standard & Poor's MidCap 400 Index is an unmanaged index containing
stocks of 400 industrial, transportation, utility, and financial
companies, regarded as generally representative of the mid-size company
segment of the U.S. market. The Index reflects income and
distributions, if any, but does not reflect brokerage commissions, or
other expenses of investing.
(Page 7)"
INVESTORS SHOULD RETAIN THIS SUPPLEMENT WITH THE PROSPECTUS FOR FUTURE REFERENCE
