LA CROSSE LARGE CAP STOCK FUND
------------------------------
SEMI-ANNUAL REPORT
APRIL 30, 1999
Shares of the La Crosse Funds are distributed by an independent third party,
Sunstone Distribution Services, LLC.
<PAGE>
LA CROSSE LARGE CAP STOCK FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999 (UNAUDITED)
Number
of Shares Value
- --------- --------
COMMON STOCKS 97.8%
CONSUMER DURABLES 5.3%
33,000 Dana Corp. $1,555,125
20,500 Ford Motor Co. 1,310,719
48,000 Goodyear Tire & Rubber Co. 2,745,000
25,250 Tommy Hilfiger Corp.<F1> 1,764,344
------------
7,375,188
------------
CONSUMER STAPLES 7.9%
60,000 American Greetings Corp. 1,571,250
28,000 Eastman Kodak Co. 2,089,500
73,125 Kimberly-Clark Corp. 4,483,477
62,000 Newell Rubbermaid, Inc. 2,941,125
------------
11,085,352
------------
ENERGY 4.3%
100,000 Diamond Offshore Drilling, Inc. 3,306,250
92,000 Transocean Offshore, Inc. 2,731,250
------------
6,037,500
------------
FINANCIALS 26.2%
101,000 Allstate Corp. 3,673,875
70,000 Bank One Corp. 4,130,000
99,000 BankBoston Corp. 4,851,000
58,750 Chase Manhattan Corp. 4,861,562
117,000 Conseco, Inc. 3,692,812
62,000 First Union Corp. 3,433,250
53,750 Morgan Stanley Dean Witter & Co. 5,331,328
83,000 Travelers Property Casualty Corp. Cl. A 2,863,500
93,000 Washington Mutual, Inc. 3,824,625
------------
36,661,952
------------
HEALTH 5.4%
67,250 Dura Pharmaceuticals, Inc.<F1> 807,000
168,000 HEALTHSOUTH Corp.<F1> 2,257,500
56,000 Tenet Healthcare Corp.<F1> 1,323,000
57,250 United HealthCare Corp. 3,213,156
------------
7,600,656
------------
INDUSTRY CYCLICALS 18.3%
91,000 AlliedSignal, Inc. 5,346,250
37,750 Case Corp. 1,307,094
78,000 Caterpillar, Inc. 5,021,250
74,000 Deere & Co. 3,182,000
19,250 Johnson Controls, Inc. 1,404,047
22,750 Nucor Corp. 1,335,141
38,000 Parker-Hannifin Corp. 1,783,625
38,000 Tenneco, Inc. 1,026,000
35,750 United Technologies Corp. 5,179,281
------------
25,584,688
------------
<PAGE>
LA CROSSE LARGE CAP STOCK FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
Number
of Shares Value
- --------- --------
COMMON STOCKS (continued) 97.8%
RETAIL 6.9%
171,000 AutoNation, Inc.<F1> $2,447,437
39,250 AutoZone, Inc.<F1> 1,177,500
43,000 Federated Department Stores, Inc.<F1> 2,007,563
88,000 Sears, Roebuck and Co. 4,048,000
------------
9,680,500
------------
SERVICES 9.6%
31,500 AT&T Corp. 1,590,750
115,000 Burlington Northern Santa Fe Corp. 4,211,875
61,000 CSX Corp. 3,004,250
46,000 Delta Air Lines, Inc. 2,918,125
21,000 UAL Corp.<F1> 1,695,750
------------
13,420,750
------------
TECHNOLOGY 12.8%
10,875 Cisco Systems, Inc.<F1> 1,240,430
105,250 Compaq Computer Corp. 2,348,391
120,000 First Data Corp. 5,092,500
43,000 Gateway 2000, Inc.<F1> 2,846,062
66,000 Intel Corp. 4,038,375
38,000 Sun Microsystems, Inc.<F1> 2,272,875
------------
17,838,633
------------
UTILITIES 1.1%
31,500 PECO Energy Co. 1,494,281
------------
TOTAL COMMON STOCKS (cost $116,771,081) 136,779,500
------------
Principal
Amount
- ---------
SHORT-TERM INVESTMENTS 2.1%
(VARIABLE RATE)
916,245 Federated Trust for US Treasury
Obligations Fund, 4.376% 916,245
2,010,595 Federated Government Obligations
Fund, 4.740% 2,010,595
------------
2,926,840
------------
TOTAL SHORT-TERM INVESTMENTS (COST $2,926,840) 2,926,840
------------
TOTAL INVESTMENTS
(COST $119,697,921) 99.9% 139,706,340
CASH AND OTHER ASSETS
LESS LIABILITIES 0.1% 78,605
------------
NET ASSETS 100.0% $139,784,945
============
<F1> Non-income producing
See notes to financial statements.
<PAGE>
LA CROSSE LARGE CAP STOCK FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999 (UNAUDITED)
ASSETS:
Investments, at value (cost $119,697,921) $139,706,340
Interest and dividends receivable 186,500
Receivable for capital stock sold 475
Prepaid expenses and other assets 14,271
------------
Total Assets 139,907,586
------------
LIABILITIES:
Accrued investment advisory fee 70,835
Accrued expenses and other liabilities 51,806
------------
Total Liabilities 122,641
------------
NET ASSETS $139,784,945
============
NET ASSETS CONSIST OF:
Paid-in-capital $118,989,306
Undistributed net investment income 46,687
Accumulated net realized gain on investments 740,533
Net unrealized appreciation on investments 20,008,419
------------
NET ASSETS $139,784,945
============
SHARES OUTSTANDING, $0.00001 PAR VALUE,
(UNLIMITED SHARES AUTHORIZED) 5,618,677
NET ASSET VALUE, REDEMPTION,
AND OFFERING PRICE PER SHARE (NET ASSETS/SHARES OUTSTANDING) $24.88
============
See notes to financial statements.
<PAGE>
LA CROSSE LARGE CAP STOCK FUND
STATEMENT OF OPERATIONS
PERIOD ENDED APRIL 30, 1999 (UNAUDITED)<F1>
INVESTMENT INCOME:
Interest $54,571
Dividends 610,085
-----------
Total Investment Income 664,656
-----------
EXPENSES:
Investment advisory fees 311,648
Fund administration and accounting fees 89,316
Federal and state registration fees 17,544
Professional fees 11,056
Printing and postage expenses 9,740
Transfer agent fees and expenses 8,933
Custody fees 4,601
Directors' fees and expenses 1,492
Miscellaneous 7,965
-----------
Total Expenses 462,295
Less waiver of fees (46,759)
-----------
Net expenses 415,536
-----------
NET INVESTMENT INCOME 249,120
-----------
REALIZED AND UNREALIZED GAIN:
Net realized gain on investments 740,533
Change in unrealized appreciation 14,482,865
-----------
Net Gain on Investments 15,223,398
-----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $15,472,518
===========
See notes to financial statements.
<F1> Commenced operations after the close of business on December 31, 1998
<PAGE>
LA CROSSE LARGE CAP STOCK FUND
STATEMENT OF CHANGES IN NET ASSETS
PERIOD ENDED APRIL 30, 1999 (UNAUDITED)<F1>
OPERATIONS:
Net investment Income $249,120
Net realized gain on investments 740,533
Change in unrealized appreciation\depreciation 14,482,865
------------
Net increase in net assets resulting from operations 15,472,518
------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 20,579,383
Proceeds from shares sold during common and
collective trust fund conversions 109,964,251
Shares issued to holders in reinvestment of dividends 241
------------
130,543,875
Redemption of shares (6,129,015)
------------
Net increase from capital share transactions 124,414,860
------------
DIVIDENDS PAID FROM:
Net investment income (202,433)
------------
(202,433)
------------
TOTAL INCREASE IN NET ASSETS 139,684,945
NET ASSETS:
Beginning of period 100,000
------------
End of period $139,784,945
------------
TRANSACTIONS IN SHARES:
Shares sold 878,562
Shares sold during common and collective
trust fund conversions 4,996,104
Issued in reinvestment of dividends 10
Shares redeemed (260,542)
------------
Net increase 5,614,134
============
See notes to financial statements.
<F1> Commenced operations after the close of business on December 31, 1998
<PAGE>
LA CROSSE LARGE CAP STOCK FUND
FINANCIAL HIGHLIGHTS
PERIOD ENDED APRIL 30, 1999 (UNAUDITED)<F3>
For a Fund Share Outstanding Throughout the Period.
NET ASSET VALUE, BEGINNING OF PERIOD $22.01
--------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.04
Net realized and unrealized gain on investments 2.87
--------
Total from Investment Operations 2.91
--------
DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.04)
--------
Total Distributions (0.04)
--------
NET ASSET VALUE, END OF PERIOD $24.88
========
TOTAL RETURN<F1> 13.21%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s) $139,785
Ratio of expenses to average net assets, less waivers <F2> 1.00%
Ratio of expenses to average net assets, before waivers <F2> 1.11%
Ratio of net investment income to average net assets,
net of waivers <F2> 0.60%
Ratio of net investment income to average net assets,
before waivers <F2> 0.49%
Portfolio turnover rate<F1> 5%
<F1> Not annualized
<F2> Annualized
See notes to financial statements.
<F3> Commenced operations after the close of business on December 31, 1998
<PAGE>
LA CROSSE LARGE CAP STOCK FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1999 (UNAUDITED)
1. Organization
------------
La Crosse Funds, Inc. (the "Corporation") was incorporated on September 4,
1998 as a Wisconsin corporation and is registered under the Investment
Company Act of 1940 (the "1940 Act") as an open-end management investment
company. The La Crosse Large Cap Stock Fund (the "Fund") commenced
operations after the close of business on December 31, 1998.
As of December 31, 1998, assets of the common and collective trust funds of
the North Central Trust Company Common Fund C Equity and North Central Trust
Company Growth Common Fund were transferred to the La Crosse Large Cap Stock
Fund under Section 584(h) of the Internal Revenue Code. These transfers
were treated as a tax-free event. To qualify as a tax-exempt transaction,
the securities were transferred at market value with the original cost basis
and purchase dates being retained for book and tax purposes. Proceeds from
commingled and common trust fund conversions, as shown on the Statement of
Changes in Net Assets, represent the market value of the commingled and
common trust funds at the date of conversion. The net change in unrealized
appreciation on investments on the Statement of Operations does not reflect
the $5,525,554 unrealized appreciation for the Fund that existed at the date
of common trust fund transfer.
2. Significant Accounting Policies
-------------------------------
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles
("GAAP"). The presentation of financial statements in conformity with GAAP
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 revenues and expenses during the
reporting period. Actual results could differ from those estimates.
<PAGE>
LA CROSSE LARGE CAP STOCK FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
(a) Investment Valuation - Common stocks and other equity-type securities
are valued at the last sales price on a national securities exchange or
Nasdaq on which such securities are primarily traded, however,
securities traded on a national securities exchange or Nasdaq for which
there were no transactions on a given day, and securities not listed on
a national securities exchange or Nasdaq, are valued at the average of
the most recent bid and asked prices. Any securities or other assets
for which market quotations are not readily available are valued at fair
value as determined in good faith by the Board of Directors of the Fund
or its delegate. The Board of Directors may approve the use of pricing
services to assist the Fund in the determinations of net asset value.
All money market instruments held by the Fund will be valued on an
amortized cost basis.
(b) Federal Income Taxes - The Fund intends to comply with the requirements
of the Internal Revenue Code necessary to qualify as a regulated
investment company and to make the requisite distributions of income to
its shareholders which will be sufficient to relieve it from all or
substantially all federal income taxes.
(c) Distributions to Shareholders - Dividends from net investment income, if
any, will be declared and paid quarterly. Distributions of net realized
gains, if any, will be declared at least annually. Distributions to
shareholders are recorded on the ex-dividend date. The Fund may
periodically make reclassifications among certain of its capital
accounts as a result of the timing and characterization of certain
income and capital gains distributions determined in accordance with
federal tax regulations, which may differ from GAAP.
(d) Other - Investment transactions are accounted for on a trade date, plus-
one, basis. The Fund determines the gain or loss realized from the
investment transactions by comparing the original cost of the security
lot sold with the net sale proceeds. Dividend income is recognized on
the ex-dividend date. Certain dividends from foreign securities will be
recorded as soon as the Fund is informed of the dividend if such
information is obtained subsequent to the ex-dividend date. Interest
income is recognized on an accrual basis.
<PAGE>
LA CROSSE LARGE CAP STOCK FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
3. Investment Advisory Agreement
-----------------------------
The Fund has an agreement with La Crosse Advisers, L.L.C. (the "Adviser") to
furnish investment advisory services to the Fund. Under the terms of this
agreement, the Adviser is compensated at the rate of 0.75% of the average
daily net assets of the Fund. The Adviser has agreed until December 31,
1999 that it will waive its fees and/or reimburse the Fund's operating
expenses to the extent necessary to ensure that the Fund's total operating
expenses (on an annual basis) do not exceed 1.00% of the Fund's average
daily net assets. The Adviser may recoup amounts waived or reimbursed for
up to three years from the date of such waiver or reimbursement. For the
period ended April 30, 1999 the Adviser waived $46,759 in fees.
4. Investment Transactions
-----------------------
The aggregate purchases and sales of securities, excluding short-term
investments, for the Fund for the period ended April 30, 1999 was
$120,877,094 and $4,846,546, respectively. There were no purchases or sales
of long-term U.S. government securities.
The cost of securities on a tax basis for the Fund is $119,697,921. At
April 30, 1999, gross unrealized appreciation and depreciation on
investments for federal income tax purposes were as follows:
Unrealized appreciation $26,743,737
(Unrealized depreciation) (6,735,318)
-----------
Net unrealized appreciation on investments $20,008,419
===========
DIRECTORS Steven J. Hulme
Darwin F. Isaacson
Ralph A. La Point
Joseph T. Kastantin
OFFICERS Steven J. Hulme
Darwin F. Isaacson
INVESTMENT ADVISER LA CROSSE ADVISERS, L.L.C.
311 Main Street
La Crosse, WI 54601
ADMINISTRATOR AND SUNSTONE FINANCIAL GROUP, INC.
FUND ACCOUNTANT 207 East Buffalo Street, Suite 400
Milwaukee, WI 53202
CUSTODIAN NORTH CENTRAL TRUST COMPANY
311 Main Street
La Crosse, WI 54601
INDEPENDENT ACCOUNTANTS ARTHUR ANDERSEN, LLP
100 East Wisconsin Avenue
Milwaukee, WI 53202
LEGAL COUNSEL GODFREY & KAHN, S.C.
780 North Water Street
Milwaukee, WI 53202
DISTRIBUTOR SUNSTONE DISTRIBUTION SERVICES, LLC
207 East Buffalo Street, Suite 315
Milwaukee, WI 53202
DIVIDEND-DISBURSING LA CROSSE FUNDS, INC.
AND TRANSFER AGENT c/o Sunstone Financial Group, Inc.
207 East Buffalo Street, Suite 315
Milwaukee, WI 53202
This report is submitted for the general information of shareholders of the La
Crosse Large Cap Stock Fund. It is not authorized for distribution to
prospective investors unless accompanied or preceded by an effective Prospectus
for the Fund. The Prospectus provides more complete information, including fees
and expenses, the investment objective, risks and operating policies of the
Fund. Read the Prospectus carefully.
LF-410-0699
<PAGE>
