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LA CROSSE LARGE CAP STOCK FUND
------------------------------
ANNUAL REPORT
OCTOBER 31, 2000
Shares of the La Crosse Funds, Inc. are distributed by an independent third
party, Sunstone Distribution Services, LLC.
-----------------------------------------------------------------------------
<PAGE>
LA CROSSE LARGE CAP STOCK FUND October 31, 2000
Dear Fellow Shareholders:
During the last twelve months, the market appears to have returned to the
concept that earnings do matter. Like other value investors, we were questioned
last year about our selection discipline in this new economy; analysts predicted
the "old" methods of valuation didn't apply today. While we never disputed that
new technology would reshape the way companies made money, we questioned the
validity of the prices investors were paying to participate.
In many cases, in 1999, investors were willing to invest in companies with
nothing more than an idea. We were cautious about participating because, as
investors, we were interested in companies that have shown a track record of
increasing shareholder value. We still believe that the best way to measure a
company's ability to increase shareholder value is to: a) look for reports of
positive earnings and b) examine the increase in the stream of earnings over
time.
Upon identifying those companies with established earnings, we paid close
attention to the prices, especially with regard to the increasing stream of
earnings. This valuation process is sometimes referred to as "intrinsic value."
Through the use of this discipline, we feel we can best position the portfolio
for long-term results, albeit sometimes at the expense of capitalizing on the
short-term momentum investments. Thus, our investment style is most likely to
continue to place us in the value category.
According to Ibbotson Associates publication Stocks, Bonds, Bills and Inflation
2000 Yearbook, value investing has outperformed the growth style for the period
from 1928 to 1999. According to the yearbook, Large Value stocks returned 12.7%
annualized versus 10.3% annualized for Large Growth stocks for this period.
However, if investors were to look at the decade of the '90s, the results are in
favor of Large Growth stocks with returns of 20.1% annualized versus 14.9%
annualized for Large Value stocks.
It is our belief that this recent dominance of Large Growth stocks over Large
Value stocks was mainly the result of the large decrease of inflation and
interest rates during this period. Given the current levels, we believe the
ability of the inflation and interest rates to show further substantial
decreases will be unlikely. Thus, we feel that our long-term methodology of
selecting companies based on earnings and the valuation of those future earnings
will remain a solid way to invest your money.
In the fiscal year ended October 31, 2000, the returns of the La Crosse Large
Cap Stock Fund suggested that the markets have again refocused their attention
to earnings. For the twelve months ended October 31, 2000, the Fund returned
11.53% while the commonly referred to S&P 500/R Index returned 6.09%. The
Lipper Large-Cap Value Index returned 5.95%, while the Large-Cap value stocks as
represented by the Russell 1000/R Value Index returned 5.52%. By all
comparisons, our performance was competitive.<F1>
<PAGE>
The higher performance of the La Crosse Large Cap Stock Fund was a result of a
higher exposure than the S&P 500/R Index to the economic sectors which we
believed represented good value at the beginning of this period. These sectors
are Financial Services, Utilities, Retail and Health. By contrast, we had less
exposure than the S&P 500/R Index to the economic sectors of Technology and
Consumer Staples. With regard to the Consumer Staples sector, we felt that the
majority of the companies appear stagnated in their ability to increase
earnings. For the Technology sector, we felt that although the majority of the
companies had good growth prospects, the valuations were higher than we could
justify.
The performance was negatively impacted by some companies that we thought
represented good value if they could solve some of their internal problems.
Unfortunately, a couple of these companies proved unsuccessful in resolving the
internal problems, and thus we decided to liquidate the positions using the
losses to reduce the capital gains distribution. Examples of these investments
would be Conseco, Inc. and Boston Scientific Corp.
Looking forward, we will continue to utilize the same discipline we have
developed and look for opportunities to invest in companies we feel have good
intrinsic value. We would like to thank our investors for their confidence in
us and their commitment to our long-term selection methodology.
Sincerely,
Steven J. Hulme, CFA
President
La Crosse Advisors, L.L.C.
Sunstone Distribution Services, LLC, distributor
<F1>Past performance is no guarantee of future results. Investment returns and
principal value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost. Performance
figures reflect fee waivers in effect. In the absence of fee waivers, total
returns would be reduced. See the following page for past performance.
The Russell 1000/R Value Index is an unmanaged index of the 1,000 largest
companies in the Russell 3000/R Index with lower forecasted growth values. This
index is heavily weighted toward stocks with large market capitalizations, with
an average market capitalization of approximately $14.1 billion. One is not
able to invest in this Index.
<PAGE>
GROWTH OF A $10,000 INVESTMENT
La Crosse
Large Cap Lipper Large Cap
Stock Fund S&P 500 Index Value Index
1/1/99 10,000 10,000 10,000
4/30/99 11,321 10,905 10,838
7/31/99 11,023 10,887 10,807
10/31/99 10,516 11,203 10,710
1/31/00 10,334 11,496 10,610
4/30/00 10,953 12,010 10,971
7/31/00 10,909 11,865 10,809
10/31/00 11,728 11,886 11,344
The La Crosse Large Cap Stock Fund's total return for twelve months and since
inception (close of business December 31, 1998) through October 31, 2000 was
11.53% and 17.29%, respectively.
This chart assumes an initial gross investment of $10,000 made on 1/1/99
(commencement of operations). Returns shown include the reinvestment of all
dividends. Past performance is not predictive of future results. Investment
return and principal value will fluctuate, so that your shares, when redeemed,
may be worth more or less than the original cost.
The S&P 500/R Index is an unmanaged index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. The Index is heavily weighted
toward stocks with large market capitalizations and represents approximately
two-thirds of the total market value of all domestic common stocks.
The Lipper Large-Cap Value Index is an unmanaged index that focuses on stock
mutual funds investing primarily in companies with large market capitalizations
that are considered undervalued relative to major stock indices based on price-
to-current earnings and price-to-book ratios.
<PAGE>
LA CROSSE LARGE CAP STOCK FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2000
Number
of Shares Value
---------------- ----------
COMMON STOCKS 95.8%
CONSUMER DURABLES 1.9%
75,000 Ford Motor Co. $1,959,375
----------
CONSUMER STAPLES 6.6%
80,000 ConAgra, Inc. 1,710,000
25,000 Heinz (H.J.) Co. 1,048,438
26,125 Kimberly-Clark Corp. 1,724,250
59,000 Phillip Morris Cos., Inc. 2,160,875
----------
6,643,563
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ENERGY 4.3%
38,000 Coastal Corp. 2,866,625
53,000 USX-Marathon Group 1,440,938
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4,307,563
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FINANCIALS 23.9%
66,000 Allstate Corp. 2,656,500
43,000 AXA Financial, Inc. 2,324,687
28,000 Bank of America Corp. 1,345,750
39,000 Bank One Corp. 1,423,500
23,625 Chase Manhattan Corp. 1,074,937
32,000 Citigroup, Inc. 1,684,000
21,000 Federal National Mortgage Assoc. 1,617,000
48,851 Fleet Boston Corp. 1,856,338
11,000 J.P. Morgan & Co., Inc. 1,820,500
70,000 MetLife, Inc. 1,933,750
22,000 Morgan Stanley Dean Witter & Co. 1,766,875
57,000 Washington Mutual, Inc. 2,508,000
45,000 Wells Fargo & Co. 2,084,063
----------
24,095,900
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HEALTH 11.9%
39,000 Abbott Laboratories 2,059,687
33,000 Cardinal Health, Inc. 3,126,750
23,000 Merck & Co., Inc. 2,068,563
55,000 Tenet Healthcare Corp.<F1> 2,162,188
23,250 UnitedHealth Group, Inc. 2,542,968
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11,960,156
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INDUSTRY CYCLICALS 10.5%
19,000 Eaton Corp. 1,293,188
23,000 Emerson Electric Co. 1,689,063
25,000 General Dynamics Corp. 1,789,062
25,000 Honeywell International, Inc. 1,345,313
24,000 Parker-Hannifin Corp. 993,000
32,000 Tyco International Ltd. 1,814,000
23,000 United Technologies Corp. 1,605,688
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10,529,314
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<PAGE>
LA CROSSE LARGE CAP STOCK FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
Number
of Shares Value
-------------- -----------
COMMON STOCKS (CONTINUED) 95.8%
RETAIL 7.0%
53,000 Albertson's Inc. 1,255,437
35,000 Federated Department Stores, Inc.<F1> 1,139,687
34,000 Gap, Inc. 877,625
52,000 Home Depot, Inc. 2,236,000
52,000 Sears, Roebuck and Co. 1,545,960
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7,054,709
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SERVICES 7.8%
65,000 Burlington Northern Santa Fe Corp. 1,726,562
28,000 Delta Air Lines, Inc. 1,323,000
44,000 SBC Communications, Inc. 2,538,250
39,400 Verizon Communications 2,277,813
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7,865,625
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TECHNOLOGY 15.5%
30,000 ADC Telecomunications, Inc.<F1> 641,250
41,000 AVX Corp. 1,173,625
62,000 Compaq Computer Corp. 1,885,420
32,000 First Data Corp. 1,604,000
26,000 Gateway, Inc.<F1> 1,341,860
24,000 Intel Corp. 1,080,000
42,000 Micron Technology, Inc. 1,459,500
25,000 Microsoft Corp.<F1> 1,721,875
55,000 Motorola, Inc. 1,371,562
41,000 Solectron Corp.<F1> 1,804,000
31,000 Tellabs, Inc.<F1> 1,548,063
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15,631,155
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UTILITIES 6.4%
38,000 AES Corp.<F1> 2,147,000
22,000 Calpine Corp.<F1> 1,736,625
45,000 Edison International 1,074,375
37,000 Reliant Energy, Inc. 1,528,562
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6,486,562
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TOTAL COMMON STOCKS (COST $78,516,255) 96,533,922
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<PAGE>
LA CROSSE LARGE CAP STOCK FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
Principal
Amount Value
--------- ------------
SHORT-TERM INVESTMENTS 6.0%
(VARIABLE RATE)
$2,798,588 Federated United States Treasury $2,798,588
Cash Reserve Fund, 5.97%<F2>
3,281,398 Federated Government Obligations
Fund, 6.41%<F2> 3,281,398
-----------
6,079,986
TOTAL SHORT-TERM INVESTMENTS
(COST $6,079,986) 6,079,986
-----------
TOTAL INVESTMENTS (COST $84,596,241) 101.8% 102,613,908
LIABILITIES LESS OTHER ASSETS (1.8)% (1,842,063)
------------
NET ASSETS 100.0% $100,771,845
============
<F1> Non-income producing
<F2> Variable rate as of 10/31/00
See notes to financial statements.
<PAGE>
LA CROSSE LARGE CAP STOCK FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
ASSETS:
Investments, at value (cost $84,596,241) $102,613,908
Interest and dividends receivable 144,855
Receivable for capital shares sold 16,155
Prepaid expenses and other assets 26,781
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Total Assets 102,801,699
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LIABILITIES:
Payable for securities purchased 1,939,180
Accrued investment advisory fee 53,601
Accrued expenses and other liabilities 37,073
------------
Total Liabilities 2,029,854
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NET ASSETS $100,771,845
============
NET ASSETS CONSIST OF:
Paid-in-capital $81,077,610
Undistributed net investment income 78,143
Accumulated undistributed net realized
gain on investments 1,598,425
Net unrealized appreciation on investments 18,017,667
------------
NET ASSETS $100,771,845
============
SHARES OUTSTANDING, $0.00001 PAR VALUE,
(UNLIMITED SHARES AUTHORIZED) 4,028,604
NET ASSET VALUE, REDEMPTION,
AND OFFERING PRICE PER SHARE (NET
ASSETS/SHARES OUTSTANDING) $ 25.01
============
See notes to financial statements.
<PAGE>
LA CROSSE LARGE CAP STOCK FUND
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2000
INVESTMENT INCOME:
Interest $ 196,223
Dividends 1,450,305
----------
Total Investment Income 1,646,528
----------
EXPENSES:
Investment advisory fees 683,246
Fund administration and accounting fees 222,199
Professional fees 35,282
Transfer agent fees and expenses 21,315
Federal and state registration fees 19,394
Custody fees 8,985
Printing and postage expenses 4,050
Directors' fees and expenses 3,459
Miscellaneous 21,865
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Total Expenses 1,019,795
Less waiver of fees by adviser (108,800)
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Net Expenses 910,995
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NET INVESTMENT INCOME 735,533
----------
REALIZED AND UNREALIZED GAIN:
Net realized gain on investments 1,598,427
Change in unrealized appreciation 8,632,709
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Net Gain on Investments 10,231,136
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NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $10,966,669
===========
See notes to financial statements.
<PAGE>
LA CROSSE LARGE CAP STOCK FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR PERIOD
ENDED ENDED
OCTOBER 31, OCTOBER 31,
2000 1999<F1>
OPERATIONS: ----------- ---------
Net investment income $ 735,533 $ 513,273
Net realized gain on investments 1,598,427 1,803,226
Change in unrealized appreciation 8,632,709 3,859,404
------------ ------------
Net increase in net assets
resulting from operations 10,966,669 6,175,903
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 24,688,699 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 6,031 693
------------ ------------
24,694,730 136,406,493
Redemption of shares (25,836,436) (48,756,928)
------------ ------------
Net (decrease) increase from capital
share transactions (1,141,706) 87,649,565
------------ ------------
DIVIDENDS PAID FROM:
Net investment income (729,090) (446,268)
Net realized gains (1,803,228) -
------------ ------------
(2,532,318) (446,268)
------------ ------------
TOTAL INCREASE IN NET ASSETS 7,292,645 93,379,200
NET ASSETS:
Beginning of period 93,479,200 100,000
------------ ------------
End of period (includes
undistributed net investment
income of $78,143 and
$71,700, respectively) $100,771,845 $93,479,200
============ ===========
TRANSACTIONS IN SHARES:
Shares sold 1,094,543 1,128,782
Shares sold during common and
collective trust fund
conversions - 4,991,561
Issued in reinvestment of dividends 258 29
Shares redeemed (1,119,596) (2,071,516)
------------ -------------
Net (decrease) increase (24,795) 4,048,856
============ ============
<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
YEAR PERIOD
For a Fund Share Outstanding ENDED ENDED
Throughout the Period. OCTOBER 31, OCTOBER 31,
2000 1999<F3>
----------- -----------
NET ASSET VALUE, BEGINNING OF PERIOD $23.06 $22.01
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.19 0.10
Net realized and unrealized gain
on investments 2.42 1.04
-------- --------
Total from Investment Operations 2.61 1.14
-------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income (0.19) (0.09)
Distributions from net realized gains (0.47) -
--------- ---------
Total Distributions (0.66) (0.09)
---------- ---------
NET ASSET VALUE, END OF PERIOD $25.01 $23.06
========== =========
TOTAL RETURN 11.53% 5.16%<F1>
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s) $100,772 $93,479
Ratio of expenses to average net assets,
net of waivers 1.00% 1.00%<F2>
Ratio of expenses to average net assets,
before waivers 1.12% 1.10%<F2>
Ratio of net investment income to
average net assets, net of waivers 0.81% 0.51%<F2>
Ratio of net investment income to
average net assets, before waivers 0.69% 0.41%<F2>
Portfolio turnover rate 60% 67%<F1>
<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
OCTOBER 31, 2000
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 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
-------------------------------
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)
OCTOBER 31, 2000
(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 determination 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 and paid 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. The Fund
hereby designates approximately $1,598,427 as a capital gain dividend
for the purpose of the dividends paid deduction. For the year ended
October 31, 2000, 100% of the dividends from taxable income, including
short-term gains, qualify for the dividends received deduction
available to corporate shareholders.
(d) Other - Investment transactions are accounted for on a trade date
-----
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)
OCTOBER 31, 2000
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
year ended October 31, 2000, the Adviser waived $108,800 in fees. Total
fees waived subject to recoupment by the Adviser are $210,264.
4. Investment Transactions
-----------------------
The aggregate purchases and sales of securities, excluding short-term
investments, for the Fund for the year ended October 31, 2000 were
$53,162,391 and $53,550,339, 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 October 31, 2000 was $84,596,241. At October 31, 2000, gross
unrealized appreciation and depreciation on investments were as follows:
Unrealized appreciation $22,525,465
(Unrealized depreciation) (4,507,798)
------------
Net unrealized appreciation on investments $18,017,667
===========
<PAGE>
(LOGO)
ARTHUR ANDERSEN
Report of Independent Public Accountants
To the Shareholders and Board of Directors of LaCrosse Funds, Inc.:
We have audited the accompanying statement of assets and liabilities of
LaCrosse Funds, Inc. (the "Company", a Wisconsin corporation, which includes
LaCrosse Large Cap Stock Fund), including the portfolio of investments, as of
October 31, 2000, and the related statements of operations for the year then
ended, changes in net assets for the year then ended and the period from
inception, which commenced after the close of business on December 31, 1998
to October 31, 1999, and the financial highlights for the year then ended
and the period from inception to October 31, 1999. These financial statements
and financial highlights are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements and
financial highlights based upon our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. 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 confirmation of securities
owned as of October 31, 2000, by correspondence with the custodians and
brokers. 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
LaCrosse Funds, Inc. as of October 31, 2000, and the results of its
operations for the year then ended, changes in net assets for the year then
ended and the period from inception to October 31, 1999, and the financial
highlights for the year then ended and the period from inception to October 31,
1999, in conformity with accounting principles generally accepted in the United
States.
/s/Arthur Andersen LLP
ARTHUR ANDERSEN
Milwaukee, Wisconsin
November 15, 2000
<PAGE>
This page intentionally left blank.
<PAGE>
DIRECTORS Lois Z. Grubb Ralph A. La Point
Steven J. Hulme Joseph T. Kastantin
Darwin F. Isaacson
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 803 West Michigan Street, Suite A
Milwaukee, WI 53233
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 KIRKLAND & ELLIS
200 East Randolph Drive
Chicago, IL 60601
DISTRIBUTOR SUNSTONE DISTRIBUTION SERVICES, LLC
803 West Michigan Street, Suite A
Milwaukee, WI 53233
DIVIDEND-DISBURSING LA CROSSE FUNDS, INC.
AND TRANSFER AGENT c/o Sunstone Financial Group, Inc.
803 West Michigan Street, Suite A
Milwaukee, WI 53233
PLEASE MAIL CORRESPONDENCE TO:
La Crosse Funds
P.O. Box 717
Milwaukee, WI 53201-0717
1-888-661-7600
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.
LF-408-1200
<PAGE>
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<PAGE>
