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LA CROSSE LARGE CAP STOCK FUND
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SEMI-ANNUAL REPORT
APRIL 30, 2000
Shares of the La Crosse Funds are distributed by an independent third party,
Sunstone Distribution Services, LLC.
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<PAGE>
LA CROSSE LARGE CAP STOCK FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
Number
of Shares Value
---------- -------
COMMON STOCKS 93.2%
CONSUMER DURABLES 1.9%
20,000 Dana Corp. $ 607,500
20,500 Ford Motor Co. 1,121,094
-----------
1,728,594
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CONSUMER STAPLES 7.1%
80,000 ConAgra, Inc. 1,510,000
26,000 Eastman Kodak Co. 1,454,375
25,000 Heinz (H.J.) Co. 850,000
26,125 Kimberly-Clark Corp. 1,516,883
59,000 Phillip Morris Cos., Inc. 1,290,625
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6,621,883
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ENERGY 3.4%
38,000 Coastal Corp. 1,907,125
53,000 USX-Marathon Group 1,235,563
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3,142,688
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FINANCIALS 20.5%
66,000 Allstate Corp. 1,559,250
43,000 AXA Financial, Inc. 1,402,875
28,000 Bank of America Corp. 1,372,000
39,000 Bank One Corp. 1,189,500
15,750 Chase Manhattan Corp. 1,134,984
24,000 Citigroup, Inc. 1,426,500
72,600 Conseco, Inc. 394,762
21,000 Federal National Mortgage Assoc. 1,266,563
39,000 First Union Corp. 1,243,125
48,851 Fleet Boston Corp. 1,731,157
11,000 J.P. Morgan & Co., Inc. 1,412,125
20,000 MetLife, Inc.<F1> 331,250
22,000 Morgan Stanley Dean Witter & Co. 1,688,500
57,000 Washington Mutual, Inc. 1,457,062
38,000 Wells Fargo & Co. 1,560,375
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19,170,028
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HEALTH 9.7%
39,000 Abbott Laboratories 1,499,062
65,000 Boston Scientific Corp.<F1> 1,722,500
33,000 Cardinal Health, Inc. 1,817,062
23,000 Merck & Co., Inc. 1,598,500
35,000 Tenet Healthcare Corp. 892,500
23,250 UnitedHealth Group, Inc. 1,550,484
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9,080,108
<PAGE> ----------
LA CROSSE LARGE CAP STOCK FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
Number
of Shares Value
--------- -------
COMMON STOCKS (CONTINUED) 93.2%
INDUSTRY CYCLICALS 10.5%
19,000 Eaton Corp. $1,596,000
23,000 Emerson Electric Co. 1,262,125
25,000 General Dynamics Corp. 1,462,500
24,000 Parker-Hannifin Corp. 1,116,000
32,000 Tyco International Ltd. 1,470,000
23,000 United Technologies Corp. 1,430,313
39,000 Willamette Industries, Inc. 1,489,312
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9,826,250
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RETAIL 8.4%
53,000 Albertson's Inc. 1,725,812
35,000 Federated Department
Stores, Inc.<F1> 1,190,000
34,000 Gap, Inc. 1,249,500
31,000 Home Depot, Inc. 1,737,937
52,000 Sears, Roebuck and Co. 1,904,500
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7,807,749
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SERVICES 10.3%
31,500 AT&T Corp. 1,470,656
65,000 Burlington Northern
Santa Fe Corp. 1,568,125
62,000 Cendant Corp.<F1> 957,125
28,000 Delta Air Lines, Inc. 1,477,000
20,000 GTE Corp. 1,355,000
30,000 SBC Communications, Inc. 1,314,375
32,100 WorldCom, Inc.<F1> 1,458,544
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9,600,825
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TECHNOLOGY 17.1%
62,000 Compaq Computer Corp. 1,813,500
26,000 Computer Associates
International, Inc. 1,451,125
62,000 Compuware Corp.<F1> 778,875
35,000 Dell Computer Corp.<F1> 1,754,375
25,000 First Data Corp. 1,217,188
26,000 Gateway, Inc.<F1> 1,436,500
25,000 Honeywell International, Inc. 1,400,000
12,000 Intel Corp. 1,521,750
10,000 Micron Technology, Inc.<F1> 1,392,500
33,000 Solectron Corp.<F1> 1,544,813
31,000 Tellabs, Inc.<F1> 1,699,188
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16,009,814
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UTILITIES 4.3%
13,000 AES Corp.<F1> 1,169,188
11,000 Calpine Corp.<F1> 1,006,500
45,000 Edison International 857,813
37,000 Reliant Energy, Inc. 985,125
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4,018,626
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TOTAL COMMON STOCKS (COST $84,957,063) 87,006,565
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<PAGE>
LA CROSSE LARGE CAP STOCK FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
Principal
Amount Value
--------- -------
SHORT-TERM INVESTMENTS 9.8%
(VARIABLE RATE)
$4,521,985 Federated United States Treasury
Cash Reserve Fund, 5.52% $4,521,985
4,638,817 Federated Government
Obligations Fund, 5.88% 4,638,817
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9,160,802
TOTAL SHORT-TERM INVESTMENTS
(COST $9,160,802) 9,160,802
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TOTAL INVESTMENTS
(cost $94,117,865) 103.0% 96,167,367
LIABILITIES LESS
OTHER ASSETS(3.0%) (2,765,238)
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NET ASSETS 100.0% $93,402,129
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<F1> Non-income producing
See notes to financial statements.
<PAGE>
LA CROSSE LARGE CAP STOCK FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS:
Investments, at value (cost $94,117,865) $96,167,367
Interest and dividends receivable 133,250
Receivable for capital stock sold 325
Prepaid expenses and other assets 15,433
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Total Assets 96,316,375
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LIABILITIES:
Accrued investment advisory fee 49,715
Payyable for securities purchased 2,818,310
Accrued expenses and other liabilities 46,221
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Total Liabilities 2,914,246
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NET ASSETS $93,402,129
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NET ASSETS CONSIST OF:
Paid-in-capital $80,038,696
Undistributed net investment income 43,876
Accumulated undistributed net realized
gain on investments 11,270,055
Net unrealized appreciation on investments 2,049,502
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NET ASSETS $93,402,129
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SHARES OUTSTANDING, $0.00001 par value,
(UNLIMITED SHARES AUTHORIZED) 3,983,314
NET ASSET VALUE, REDEMPTION,
AND OFFERING PRICE PER SHARE (NET
ASSETS/SHARES OUTSTANDING) $23.45
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See notes to financial statements.
<PAGE>
LA CROSSE LARGE CAP STOCK FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
INVESTMENT INCOME:
Interest $80,745
Dividends 681,135
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Total Investment Income 761,880
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EXPENSES:
Investment advisory fees 324,250
Fund administration and accounting fees 107,448
Professional fees 17,422
Transfer agent fees and expenses 12,857
Federal and state registration fees 9,609
Printing and postage expenses 6,811
Custody fees 5,105
Directors' fees and expenses 2,552
Miscellaneous 8,444
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Total Expenses 494,498
Less waiver of fees by adviser (62,144)
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Net Expenses 432,354
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NET INVESTMENT INCOME 329,526
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REALIZED AND UNREALIZED GAIN:
Net realized gain on investments 11,270,057
Change in unrealized depreciation (7,335,456)
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Net Gain on Investments 3,934,601
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NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $4,264,127
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See notes to financial statements.
<PAGE>
LA CROSSE LARGE CAP STOCK FUND
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS
ENDED PERIOD
APRIL 30, 2000 ENDED
(UNAUDITED) OCTOBER 31, 1999<F1>
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OPERATIONS:
Net investment income $329,526 $513,273
Net realized gain on
investments 11,270,057 1,803,226
Change in unrealized
(depreciation) appreciation (7,335,456) 3,859,404
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Net increase in net assets
resulting from operations 4,264,127 6,175,903
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9,789,682
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 16,600,498 26,541,549
Proceeds from shares sold during
common and collective trust
fund conversions - 109,864,251
Shares issued to shareholders
in reinvestment of dividends 5,192 693
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16,605, 136,406,493
Redemption of shares (18,786,309) (48,756,928)
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Net (decrease) increase from
capital share transactions (2,180,619) 87,649,565
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DIVIDENDS PAID FROM:
Net investment income (357,351) (446,268)
Net realized gains (1,803,228) -
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(2,160,579) (446,268)
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TOTAL (DECREASE) INCREASE IN NET ASSETS (77,071) 93,379,200
NET ASSETS:
Beginning of period 93,479,200 100,000
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End of period $93,402,129 $93,479,200
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TRANSACTIONS IN SHARES:
Shares sold 755,519 1,128,782
Shares sold during common and
collective trust fund
conversions - 4,991,561
Issued in reinvestment
of dividends 223 29
Shares redeemed (825,827) (2,071,516)
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Net (decrease) increase (70,085) 4,048,856
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<F1> Commenced operations after the close of business on December 31, 1998
See notes to financial statements.
<PAGE>
LA CROSSE LARGE CAP STOCK FUND
FINANCIAL HIGHLIGHTS
SIX MONTHS PERIOD
ENDED ENDED
APRIL 30, 2000 OCTOBER 31,
For a Fund Share Outstanding Throughout (UNAUDITED) 1999<F3>
the Period. -------------- -------------
NET ASSET VALUE, BEGINNING OF PERIOD $23.06 $22.01
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.08 0.10
Net realized and unrealized gain
on investments 0.87 1.04
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Total from Investment Operations 0.95 1.14
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DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income (0.09) (0.09)
Distributions from net realized gains (0.47) -
------- -------
Total Distributions (0.56) (0.09)
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NET ASSET VALUE, END OF PERIOD $23.45 $23.06
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TOTAL RETURN <F1> 4.16% 5.16%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s) $93,402 $93,479
Ratio of expenses to average net assets,
net of waivers <F2> 1.00% 1.00%
Ratio of expenses to average net assets,
Before waivers <F2> 1.14% 1.10%
Ratio of net investment income to
average net assets, net of waivers <F2> 0.76% 0.51%
Ratio of net investment income to
average net assets, before waivers <F2> 0.62% 0.41%
Portfolio turnover rate <F1> 47% 67%
<F1> Not annualized
<F2> Annualized
<F3>Commenced operations after the close of business on December 31, 1998
See notes to financial statements.
<PAGE>
LA CROSSE LARGE CAP STOCK FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2000 (UNAUDITED)
1. Organization
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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 for the period ended October 31, 1999 represent the
market value of the common and collective trust funds at the date of
conversion.
2. Significant Accounting Policies
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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, 2000 (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, 2000 (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 March 31, 2001
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, 2000 the Adviser waived $62,144 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, 2000 was
$39,898,071 and $43,516,841, respectively. There were no purchases or sales
of long-term U.S. government securities.
The cost basis of securities for financial statement and federal income tax
purposes at April 30, 2000 was $94,117,865. At April 30, 2000, gross
unrealized appreciation and depreciation on investments were as follows:
Unrealized appreciation $11,316,099
(Unrealized depreciation) (9,266,597)
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Net unrealized appreciation on investments $2,049,502
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<PAGE>
DIRECTORS Lois Z. Grubb
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 objectives, risks and operating policies of the
Fund. Read the Prospectus carefully.
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