APRIL 30, 1997
SEMI-ANNUAL
REPORT
(LOGO)
MONEY MARKET
FUND
U.S. TREASURY
MONEY MARKET FUND
U.S. GOVERNMENT
MONEY MARKET FUND
TAX-EXEMPT
MONEY MARKET FUND
NOTICE TO INVESTORS
- - Shares of Portico Funds:
- ARE NOT INSURED BY THE FDIC, the US Government or any other governmental
agency;
- are not bank deposits or obligations of or guaranteed by Firstar Bank,
its parent company or its affiliates;
- are subject to investment risks, including possible loss of principal;
and
- are offered by B.C. Ziegler and Company, member NASD, SIPC, and an
independent third-party distributor.
- - There can be no assurance that the money market funds will be able to
maintain a stable net asset value of $1.00 per share.
- - Firstar Bank affiliates serve as invest ment adviser, custodian, transfer
agent, ADMINISTRATOR, and accounting services agent and receive compensation
for such services as disclosed in the current prospectus.
TABLE OF CONTENTS
Page(s)
SHAREOWNER LETTER...................................................1
PORTICO MONEY MARKET FUNDS YIELD COMPARISONS........................2
LOOKING AHEAD - THE FORECAST........................................2
STATEMENT OF ASSETS AND LIABILITIES.................................3
STATEMENT OF OPERATIONS.............................................4
STATEMENT OF CHANGES IN NET ASSETS..................................5
FINANCIAL HIGHLIGHTS...............................................6-7
SCHEDULE OF INVESTMENTS............................................8-13
NOTES TO FINANCIAL STATEMENTS.....................................14-15
June 1997
DEAR SHAREOWNER:
INVESTMENT REVIEW
The economy has continued on its path of steady growth into 1997. During the
first quarter of 1997, the economy expanded at an annual rate of 5.6%. While
near full employment has put upward pressure on wages, increased productivity
and fierce price competition have prevented higher wages from translating into
higher inflation. To keep inflation subdued, the Federal Reserve Board raised
the Federal Funds Rate 25 basis points in March to 5.50%. Short-term money
market rates, which had been very stable, rose accordingly. The Portico money
market funds' yields increased by 10 to 20 basis points. When adjusted for the
continued low levels of inflation, "real" yields on our money market funds
remain very attractive.
Portico money market funds are managed with quality and safety of principal as
our primary goals. All securities purchased by the Funds must meet strict
guidelines set by the SEC for presenting minimal credit risk as well as our own
high internal standards. Our credit research team closely monitors all
investments to ensure quality standards are met.
PORTICO MONEY MARKET FUNDS 7-DAY YIELDS*
PERIOD ENDED APRIL 30, 1997
MONEY MARKET FUND
CURRENT EFFECTIVE
4.99% 5.12%
U.S. TREASURY
MONEY MARKET FUND
CURRENT EFFECTIVE
4.72% 4.83%
U.S. GOVERNMENT
MONEY MARKET FUND
CURRENT EFFECTIVE
4.90% 5.02%
TAX-EXEMPT
MONEY MARKET FUND
CURRENT EFFECTIVE
3.56% 3.62%
* After fee waivers. Had fees not been waived, current and effective yields
would have been 4.78% and 4.91% for the Money Market Fund; 4.51% and 4.62% for
the U.S. Treasury Money Market Fund; 4.79% and 4.91% for the U.S. Government
Money Market Fund; and 3.39% and 3.45% for the Tax-Exempt Money Market Fund,
respectively. Reflects past performance; yields will vary. An investment in
any one of the Portico money market funds is neither insured nor guaranteed by
the U.S. Government nor is there any assurance the Funds will be able to
maintain a stable net asset value of $1.00 per share.
Current yield refers to income earned by a fund's investments over a 7-day
period. It is then annualized and stated as a percentage of the investment.
Effective yield is the same as current yield except that it assumes the income
earned by an investment in a fund will be reinvested.
<TABLE>
PORTICO MONEY MARKET FUNDS YIELD COMPARISONS<F1>
<CAPTION>
AVERAGE IBC'S
MONTHLY MONEY
RATES PORTICO FUND
PORTICO TAX-EXEMPT AVERAGE TM/
IBC'S PORTICO IBC'S PORTICO IBC'S TAX- IBC'S MONEY ALL TAX-FREE
PORTICO MONEY FUND U.S. TREASURY MONEY FUND U.S. GOV'T. MONEY FUND EXEMPT MONEY FUND MARKET TAX TAX
MONEY AVERAGE TM/ MONEY AVERAGE TM/ MONEY AVERAGE TM/ MONEY AVERAGE TM/ EQUIVALENT EQUIVALENT
MARKET ALL TAXABLE MARKET U.S. TREASURY MARKET GOV'T. MARKET ALL TAX-FREE YIELD YIELD<F2>
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1997
APRIL 4.94% 4.94% 4.60% 4.70% 4.85% 4.75% 3.12% 3.17% 4.88% 4.95%
MARCH 4.84% 4.84% 4.60% 4.61% 4.76% 4.68% 2.76% 2.76% 4.31% 4.31%
FEBRUARY 4.84% 4.82% 4.55% 4.57% 4.75% 4.64% 2.87% 2.87% 4.48% 4.48%
JANUARY 4.87% 4.84% 4.62% 4.56% 4.75% 4.66% 2.89% 2.90% 4.52% 4.53%
1996
DECEMBER 4.86% 4.85% 4.65% 4.58% 4.76% 4.67% 3.14% 3.07% 4.91% 4.80%
NOVEMBER 4.87% 4.84% 4.69% 4.61% 4.81% 4.68% 3.02% 2.98% 4.72% 4.66%
OCTOBER 4.96% 4.82% 4.65% 4.61% 4.81% 4.65% 3.06% 2.96% 4.78% 4.63%
SEPTEMBER 4.90% 4.83% 4.68% 4.63% 4.84% 4.66% 3.10% 3.00% 4.84% 4.69%
AUGUST 4.91% 4.82% 4.67% 4.60% 4.83% 4.65% 3.08% 2.98% 4.81% 4.66%
JULY 4.87% 4.81% 4.60% 4.56% 4.81% 4.64% 2.74% 2.67% 4.28% 4.17%
JUNE 4.82% 4.77% 4.57% 4.53% 4.76% 4.60% 2.89% 2.88% 4.52% 4.50%
MAY 4.77% 4.74% 4.56% 4.50% 4.74% 4.57% 3.28% 3.16% 5.13% 4.94%
We compare our Funds to the IBC's Money Fund Averages, which are composites of professionally managed money market investment funds
with similar objectives.
<FN>
<F1> After fee waivers. Had fees not been waived, performance would be reduced. Reflects past performance; yields will vary. An
investment in any one of the Portico money market funds is neither insured nor guaranteed by the U.S. Government nor is there
any assurance the Funds will be able to maintain a stable net asset value of $1.00 per share.
<F2> Assumes a 36% tax bracket.
</TABLE>
LOOKING AHEAD - THE FORECAST
We believe inflation will remain subdued in the 3% area. We expect money market
rates to remain high on a real, or inflation-adjusted, basis over the next six
months and anticipate at least maintaining an average maturity in the Portico
money market funds comparable to their respective industry benchmarks. The high
credit quality of our money market funds continues to be reinforced by strong
corporate earnings.
We continue to pride ourselves on meeting three important objectives for our
money market shareholders: PRESERVATION OF PRINCIPAL, LIQUIDITY and COMPETITIVE
INVESTMENT INCOME. We believe these principles, combined with a disciplined
approach to quality, continue to be appropriate for our money market investors.
We appreciate your continued confidence in the Portico money market funds, and
look forward to working with you in the future.
Jane T. Keelan
Carl J. Smith
Margaret Radske
Portfolio Managers
Firstar Investment Research & Management Company
STATEMENT OF ASSETS AND LIABILITIES
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
APRIL 30, 1997
(UNAUDITED) U.S. U.S.
TREASURY GOVERNMENT TAX-EXEMPT
MONEY MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND MARKET FUND
----------- ---------- ----------- -----------
ASSETS:
Investments, at
amortized cost $233,709 $58,975 $193,753 $94,188
Interest receivable 61 330 294 830
Other 33 11 8 7
---------- --------- --------- ---------
Total Assets 233,803 59,316 194,055 95,025
---------- --------- --------- ---------
LIABILITIES:
Dividends payable 923 236 770 227
Payable to affiliates 112 48 130 64
Accrued expenses and
other liabilities 19 32 146 110
---------- --------- --------- ---------
Total Liabilities 1,054 316 1,046 401
---------- --------- --------- ---------
NET ASSETS $232,749 $59,000 $193,009 $94,624
========== ========= ========= =========
CAPITAL STOCK, $.0001
par value
Authorized 5,000,000 5,000,000 5,000,000 5,000,000
Issued and outstanding 232,749 59,000 193,009 94,624
NET ASSET VALUE,
REDEMPTION PRICE
AND OFFERING PRICE
PER SHARE $1.00 $1.00 $1.00 $1.00
===== ===== ===== =====
See notes to the financial statements.
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
SIX MONTHS ENDED APRIL 30, 1997
(UNAUDITED) U.S. U.S.
TREASURY GOVERNMENT TAX-EXEMPT
MONEY MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND MARKET FUND
----------- ----------- ----------- -----------
INVESTMENT INCOME:
Interest income $6,200 $1,494 $4,996 $1,481
---------- --------- --------- ---------
EXPENSES:
Investment advisory fees 567 143 464 208
Administration fees 132 33 108 49
Service organization fees 20 - - -
Custody fees 20 7 24 8
Shareowner servicing and
accounting costs 117 23 30 25
Professional fees 6 11 13 12
Reports to shareowners 30 6 8 6
Federal and state
registration fees 23 5 10 8
Directors' fees and
expenses 2 2 2 2
Other - 1 2 1
---------- --------- --------- ---------
Total expenses before
waiver 917 231 661 319
Less: Waiver of expenses (237) (59) (104) (69)
---------- --------- --------- ---------
Net Expenses 680 172 557 250
---------- --------- --------- ---------
NET INVESTMENT INCOME $5,520 $1,322 $4,439 $1,231
========== ========= ========= =========
See notes to the financial statements.
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
U.S. TREASURY
MONEY MARKET FUND MONEY MARKET FUND
---------------------- --------------------
Six months Year Six months Year
ended ended ended ended
April 30, Oct. 31, April 30, Oct. 31,
1997 1996 1997 1996
-------- -------- -------- --------
OPERATIONS: (Unaudited) (Unaudited)
Net investment income $ 5,520 $ 9,564 $ 1,322 $ 2,946
--------- --------- --------- ---------
Increase in net assets
resulting from
operations 5,520 9,564 1,322 2,946
--------- --------- --------- ---------
CAPITAL SHARE
TRANSACTIONS:
Shares sold 279,681 537,145 150,167 187,850
Shares issued to
owners in reinvestment
of dividends 5,165 8,880 173 315
Shares redeemed (276,133) (494,250) (144,770) (199,390)
--------- --------- --------- ---------
Net increase (decrease) 8,713 51,775 5,570 (11,225)
--------- --------- --------- ---------
DIVIDENDS PAID FROM:
Net investment income (5,520) (9,564) (1,322) (2,946)
--------- --------- --------- ---------
TOTAL INCREASE
(DECREASE) IN
NET ASSETS 8,713 51,775 5,570 (11,225)
NET ASSETS:
Beginning of period 224,036 172,261 53,430 64,655
--------- --------- --------- ---------
End of period $232,749 $224,036 $ 59,000 $ 53,430
========= ========= ========= =========
See notes to the financial statements.
STATEMENT OF CHANGES IN NET ASSETS (continued)
(AMOUNTS IN THOUSANDS)
U.S. GOVERNMENT TAX-EXEMPT
MONEY MARKET FUND MONEY MARKET FUND
--------------------- --------------------
Six months Year Six months Year
ended ended ended ended
April 30, Oct. 31, April 30, Oct. 31,
1997 1996 1997 1996
-------- -------- -------- --------
OPERATIONS: (Unaudited) (Unaudited)
Net investment income $ 4,439 $ 9,302 $ 1,231 $ 2,445
--------- --------- --------- ---------
Increase in net assets
resulting from
operations 4,439 9,302 1,231 2,445
--------- --------- --------- ---------
CAPITAL SHARE
TRANSACTIONS:
Shares sold 404,873 945,438 88,702 156,757
Shares issued to
owners in reinvestment
of dividends 1,442 2,681 510 990
Shares redeemed (411,640) (912,853) (73,916) (162,503)
--------- --------- --------- ---------
Net increase (decrease) (5,325) 35,266 15,296 (4,756)
--------- --------- --------- ---------
DIVIDENDS PAID FROM:
Net investment income (4,439) (9,302) (1,231) (2,445)
--------- --------- --------- ---------
TOTAL INCREASE
(DECREASE) IN
NET ASSETS (5,325) 35,266 15,296 (4,756)
NET ASSETS:
Beginning of period 198,334 163,068 79,328 84,084
--------- --------- --------- ---------
End of period $193,009 $198,334 $94,624 $ 79,328
========= ========= ========= =========
See notes to the financial statements.
FINANCIAL HIGHLIGHTS
MONEY MARKET FUND
------------------
Six months
ended Year ended October 31,
April 30, ------------------------------------------
1997 1996 1995 1994 1993 1992<F1>
---- ---- ---- ---- ---- --------
Per Share Data: (Unaudited)
Net asset value,
beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment
operations:
Net investment
income <F2> 0.02 0.05 0.05 0.03 0.03 0.04
------ ------ ------ ------ ------ ------
Total from investment
operations 0.02 0.05 0.05 0.03 0.03 0.04
------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net
investment income (0.02) (0.05) (0.05) (0.03) (0.03) (0.04)
------ ------ ------ ------ ------ ------
Total distributions (0.02) (0.05) (0.05) (0.03) (0.03) (0.04)
------ ------ ------ ------ ------ ------
Net asset value,
end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ====== ======
Total Return <F3> 2.44% 5.06% 5.51% 3.42% 2.71% 3.73%
Supplemental data and ratios:
Net assets, in
thousands,
end of period $232,749 $224,036 $172,261 $165,018 $132,568 $146,012
Ratio of net
expenses to
average net
assets <F4> 0.60% 0.60% 0.60% 0.60% 0.60% 0.58%
Ratio of net
investment
income to average
net assets <F4> 4.87% 4.94% 5.36% 3.44% 2.67% 3.84%
See notes to the financial statements.
FINANCIAL HIGHLIGHTS (continued)
U.S. TREASURY
MONEY MARKET FUND
-----------------
Six months
ended Year ended October 31,
April 30, -------------------------------------------
1997 1996 1995 1994 1993 1992<F1>
---- ---- ---- ---- ---- --------
Per Share Data: (Unaudited)
Net asset value,
beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment
operations:
Net investment
income <F2> 0.02 0.05 0.05 0.03 0.03 0.04
------ ------ ------ ------ ------ ------
Total from investment
operations 0.02 0.05 0.05 0.03 0.03 0.04
------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net
investment income (0.02) (0.05) (0.05) (0.03) (0.03) (0.04)
------ ------ ------ ------ ------ ------
Total distributions (0.02) (0.05) (0.05) (0.03) (0.03) (0.04)
------ ------ ------ ------ ------ ------
Net asset value,
end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ====== ======
Total Return <F3> 2.32% 4.80% 5.16% 3.20% 2.59% 3.48%
Supplemental data and ratios:
Net assets, in
thousands,
end of period $59,000 $53,430 $64,655 $56,020 $40,744 $37,342
Ratio of net
expenses to
average net
assets <F4> 0.60% 0.60% 0.60% 0.60% 0.60% 0.60%
Ratio of net
investment
income to average
net assets <F4> 4.63% 4.70% 5.04% 3.14% 2.55% 3.42%
See notes to the financial statements.
FINANCIAL HIGHLIGHTS (continued)
U.S. GOVERNMENT
MONEY MARKET FUND
------------------
Six months
ended Year ended October 31,
April 30, -----------------------------------------
1997 1996 1995 1994 1993 1992<F1>
---- ---- ---- ---- ---- -------
Per Share Data: (Unaudited)
Net asset value,
beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment
operations:
Net investment
income <F2> 0.02 0.05 0.05 0.03 0.03 0.04
------ ------ ------ ------ ------ ------
Total from investment
operations 0.02 0.05 0.05 0.03 0.03 0.04
------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net
investment income (0.02) (0.05) (0.05) (0.03) (0.03) (0.04)
------ ------ ------ ------ ------ ------
Total distributions (0.02) (0.05) (0.05) (0.03) (0.03) (0.04)
------ ------ ------ ------ ------ ------
Net asset value,
end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ====== ======
Total Return <F3> 2.39% 4.96% 5.37% 3.35% 2.63% 3.60%
Supplemental data and ratios:
Net assets, in
thousands,
end of period $193,009 $198,334 $163,068 $183,591 $203,165 $221,521
Ratio of net
expenses to
average net
assets <F4> 0.60% 0.60% 0.60% 0.60% 0.60% 0.60%
Ratio of net
investment
income to average
net assets <F4> 4.78% 4.84% 5.24% 3.29% 2.59% 3.56%
See notes to the financial statements.
FINANCIAL HIGHLIGHTS (continued)
TAX-EXEMPT
MONEY MARKET FUND
-----------------
Six months
ended Year ended October 31,
April 30, -------------------------------------------
1997 1996 1995 1994 1993 1992<F1>
---- ---- ---- ---- ---- --------
Per Share Data: (Unaudited)
Net asset value,
beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment
operations:
Net investment
income <F2> 0.01 0.03 0.03 0.02 0.02 0.03
------ ------ ------ ------ ------ ------
Total from investment
operations 0.01 0.03 0.03 0.02 0.02 0.03
------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net
investment income (0.01) (0.03) (0.03) (0.02) (0.02) (0.03)
------ ------ ------ ------ ------ ------
Total distributions (0.01) (0.03) (0.03) (0.02) (0.02) (0.03)
------ ------ ------ ------ ------ ------
Net asset value,
end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ====== ======
Total Return <F3> 1.48% 3.13% 3.42% 2.25% 2.17% 2.91%
Supplemental data and ratios:
Net assets, in
thousands,
end of period $94,624 $79,328 $84,084 $70,436 $73,621 $74,343
Ratio of net
expenses to
average net
assets <F4> 0.60% 0.60% 0.60% 0.60% 0.60% 0.60%
Ratio of net
investment
income to average
net assets <F4> 2.96% 3.09% 3.36% 2.23% 2.12% 2.83%
<F1> Effective February 3, 1992, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F2> For the Tax-Exempt Money Market Fund, substantially all investment income
is exempt from Federal income tax.
<F3> Not annualized for the period ended April 30, 1997, for all Funds.
<F4> Annualized for the period ended April 30, 1997, for all Funds.
See notes to the financial statements.
MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1997
(UNAUDITED)
Principal Amortized
Amount Cost
(in thousands) (in thousands)
------------- -------------
COMMERCIAL PAPER 93.5%
AGRICULTURAL PRODUCTS 4.3%
John Deere Capital:
$5,000 5.31%, 5/08/97 $ 4,995
5,000 5.56%, 6/25/97 4,957
----------
9,952
----------
ASSET-BACKED SECURITY 8.5%
Ciesco L.P.:
5,000 5.60%, 7/01/97 4,953
5,000 5.62%, 7/07/97 4,948
Corporate Asset Funding Co., Inc.:
5,000 5.53%, 5/29/97 4,978
5,000 5.55%, 6/26/97 4,957
----------
19,836
----------
AUTOS & TRUCKS 4.3%
Ford Credit Europe PLC,
5,000 5.60%, 6/30/97 4,953
Ford Motor Credit Company,
5,000 5.56%, 6/11/97 4,969
----------
9,922
----------
BANKING - DOMESTIC 2.1%
Barclays US Funding Corporation,
5,000 5.37%, 6/13/97 4,968
----------
BANKING - FOREIGN 4.3%
Deutsche Bank Financial, Inc.:
5,000 5.24%, 5/23/97 4,984
5,000 5.35%, 6/06/97 4,973
----------
9,957
----------
BASIC INDUSTRY 8.5%
Monsanto Company:
5,000 5.58%, 6/10/97 4,969
5,000 5.60%, 7/08/97 4,947
RTZ America, Inc.:
5,000 5.52%, 6/23/97 4,959
5,000 5.60%, 7/10/97 4,946
----------
19,821
----------
BEVERAGES 2.2%
Bass Finance (C.I.) Ltd.,
5,000 5.35%, 5/06/97 4,996
----------
CHEMICAL 2.1%
Air Products & Chemical, Inc.,
5,000 5.45%, 6/20/97 4,962
----------
Principal Amortized
Amount Cost
(in thousands) (in thousands)
------------- -------------
CONSUMER STAPLES 4.3%
Hitachi America, Ltd.:
$5,000 5.60%, 6/24/97 $ 4,958
5,000 5.61%, 7/02/97 4,952
----------
9,910
----------
FINANCE - MISCELLANEOUS 19.2%
American Express Credit Corp.,
5,000 5.27%, 5/15/97 4,990
American General Finance Corporation,
5,000 5.35%, 5/19/97 4,987
Beneficial Corporation,
5,000 5.59%, 6/17/97 4,963
CIT Group Holdings, Inc.,
5,000 5.25%, 5/01/97 5,000
General Electric Capital Corporation:
5,000 5.35%, 5/07/97 4,996
5,000 5.62%, 7/15/97 4,941
Household Finance Corporation,
5,000 5.62%, 7/14/97 4,942
National Rural Utilities:
5,000 5.56%, 6/03/97 4,974
5,000 5.55%, 6/16/97 4,965
----------
44,758
----------
FINANCE - SERVICES 10.7%
Goldman Sachs Group, L.P.:
5,000 5.65%, 7/21/97 4,936
5,000 5.63%, 7/22/97 4,936
Merrill Lynch and Co., Inc.:
5,000 5.35%, 5/21/97 4,985
5,000 5.60%, 6/04/97 4,974
Morgan Stanley Group, Inc.,
5,000 5.31%, 5/12/97 4,992
----------
24,823
----------
FOREST & PAPER PRODUCTS 2.1%
Weyerhauser Company,
5,000 5.48%, 5/22/97 4,984
----------
INSURANCE 6.4%
American Family Financial Services, Inc.,
5,000 5.56%, 6/18/97 4,963
ITT Hartford Group, Inc.,
5,000 5.28%, 6/02/97 4,977
Prudential Funding Corporation,
5,000 5.37%, 5/20/97 4,986
----------
14,926
----------
MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1997
(UNAUDITED)
Principal Amortized
Amount Cost
(in thousands) (in thousands)
------------- -------------
MISCELLANEOUS 3.8%
International Lease Finance Corporation:
$ 5,000 5.32%, 5/28/97 $ 4,980
3,905 5.32%, 5/30/97 3,888
----------
8,868
----------
PRINTING & PUBLISHING 2.1%
Reed Elsevier, Inc.,
5,000 5.60%, 7/09/97 4,946
----------
SOVEREIGN 4.3%
The Canadian Wheat Board,
5,000 5.28%, 5/14/97 4,991
Wool International,
5,000 5.32%, 5/05/97 4,997
----------
9,988
----------
TECHNOLOGY 2.2%
Xerox Credit Corporation,
5,000 5.27%, 5/13/97 4,991
----------
UTILITIES 2.1%
Southwestern Bell,
5,000 5.40%, 6/09/97 4,971
----------
Total Commercial Paper 217,579
----------
VARIABLE RATE DEMAND NOTES 4.7%
11,000 WPL Holdings 11,000
----------
Total Variable Rate Demand Notes 11,000
----------
Number Amortized
of Shares Cost
(in thousands) (in thousands)
------------- -------------
INVESTMENT COMPANIES 2.2%
10 Financial Square Prime Obligation Fund $ 10
5,120 Short-Term Investments Co.
Liquid Assets Portfolio 5,120
----------
Total Investment Companies 5,130
----------
Total Investments 100.4% 233,709
----------
Liabilities, less Other Assets (0.4)% (960)
----------
NET ASSETS 100.0% $232,749
==========
See notes to the financial statements.
U.S. TREASURY MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1997
(UNAUDITED)
Principal Amortized
Amount Cost
(in thousands) (in thousands)
- -------------- --------------
U.S. TREASURIES 90.7%
U.S.TREASURY NOTES 30.2%
$ 5,000 8.50%, 5/15/97 $ 5,006
1,500 5.88%, 7/31/97 1,501
2,000 8.63%, 8/15/97 2,018
1,000 5.75%, 9/30/97 1,001
5,750 5.75%, 10/31/97 5,751
2,500 7.88%, 1/15/98 2,535
----------
17,812
----------
U.S. TREASURY BILLS 60.5%
10,000 5.36%, 5/01/97 10,000
2,000 4.96%, 5/22/97 1,994
5,000 4.96%, 6/12/97 4,971
7,000 5.18%, 7/24/97 6,916
7,000 5.26%, 8/07/97 6,900
5,000 5.28%, 8/21/97 4,918
----------
35,699
----------
Total U.S. Treasuries 53,511
----------
Number
of Shares
(in thousands)
- --------------
INVESTMENT COMPANIES 9.3%
2,946 Institutional Liquid Assets
Treasury Instruments Portfolio 2,946
2,518 Short-Term Investments Co.
Treasury Tax Advantage Portfolio 2,518
----------
Total Investment Companies 5,464
----------
Total Investments 100.0% 58,975
----------
Other Assets, less Liabilities 0.0% 25
----------
NET ASSETS 100.0% $ 59,000
==========
See notes to the financial statements.
U.S. GOVERNMENTMONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1997
(UNAUDITED)
Principal Amortized
Amount Cost
(in thousands) (in thousands)
- -------------- --------------
U.S. GOVERNMENT AGENCIES 89.5%
FEDERAL FARM CREDIT BANK 18.0%
Federal Farm Credit Bank Discount Notes:
$5,000 5.20%, 5/07/97 $ 4,996
6,000 5.36%, 5/09/97 5,993
5,000 5.17%, 5/23/97 4,984
5,000 5.21%, 6/02/97 4,977
5,000 5.41%, 6/23/97 4,960
4,000 5.45%, 7/07/97 3,959
5,000 5.51%, 8/20/97 4,915
----------
34,784
----------
FEDERAL HOME LOAN BANK 4.6%
Federal Home Loan Bank Discount Notes:
5,000 5.16%, 5/21/97 4,986
4,000 5.51%, 8/08/97 3,939
----------
8,925
----------
FEDERAL HOME LOAN MORTGAGE CORPORATION 18.0%
Federal Home Loan Mortgage Corporation
Discount Notes:
5,000 5.17%, 5/16/97 4,989
5,000 5.49%, 6/13/97 4,967
5,000 5.46%, 6/24/97 4,959
5,000 5.51%, 7/08/97 4,948
5,000 5.27%, 7/14/97 4,946
5,000 5.48%, 7/15/97 4,943
5,000 5.47%, 7/21/97 4,939
----------
34,691
----------
FEDERAL NATIONAL MORTGAGE ASSN. 23.1%
Federal National Mortgage Assn. Discount Notes:
5,000 5.25%, 5/01/97 5,000
5,000 5.23%, 5/22/97 4,985
5,000 5.23%, 5/27/97 4,981
5,000 5.27%, 5/29/97 4,980
5,000 5.10%, 6/16/97 4,967
5,000 5.50%, 7/11/97 4,946
5,000 5.48%, 7/17/97 4,941
5,000 5.54%, 7/18/97 4,940
5,000 5.45%, 7/23/97 4,937
----------
44,677
----------
OTHER 14.5%
Tennessee Valley Authority Discount Notes:
5,000 5.30%, 5/02/97 4,999
5,000 5.20%, 5/12/97 4,992
5,000 5.26%, 5/14/97 4,991
6,000 5.52%, 6/11/97 5,962
3,000 5.44%, 6/12/97 2,981
4,000 5.42%, 6/18/97 3,971
----------
27,896
----------
Principal Amortized
Amount Cost
(in thousands) (in thousands)
- -------------- --------------
STUDENT LOAN MARKETING ASSN. 11.3%
Student Loan Marketing Assn. Discount Notes,
$5,000 5.47%, 6/30/97 $ 4,954
Student Loan Marketing Assn. Floating Rate Notes:
3,810 5.71%, 10/30/97* 3,811
5,000 5.71%, 11/20/97* 5,001
8,000 5.61%, 4/21/98* 7,998
----------
21,764
----------
Total U.S. Government Agencies 172,737
----------
U.S. TREASURIES 2.1%
U.S. TREASURY NOTES,
4,000 8.75%, 10/15/97 4,058
----------
Number
of Shares
(in thousands)
- --------------
INVESTMENT COMPANIES 8.8%
9,377 Financial Square Government Obligation Fund 9,377
7,581 Short-Term Investments Co. Treasury Portfolio 7,581
----------
Total Investment Companies 16,958
----------
Total Investments 100.4% 193,753
----------
Liabilities, less Other Assets (0.4)% (744)
----------
NET ASSETS 100.0% $ 193,009
==========
* Stated maturity with weekly interest rate reset
See notes to the financial statements.
TAX-EXEMPTMONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1997
(UNAUDITED)
Principal Amortized
Amount Cost
(in thousands) (in thousands)
- -------------- -------------
GENERAL OBLIGATION 1.9%
Honolulu, Hawaii, City and County,
$ 500 7.15%, 7/01/97 $ 503
Northwestern Mutual Life,
316 4.50%, 2/15/09*# 316
Will County, IL School District,
1,000 6.00%, 12/01/97 1,013
----------
Total General Obligation 1,832
----------
NOTES AND BONDS 5.3%
INDUSTRIAL DEVELOPMENT/POLLUTION
CONTROL REVENUE 3.2%
Illinois Development Finance Authority,
2,000 Enterprise Office, 3.65%, 12/01/17*# 2,000
Sauget, Illinois Regional Wastewater
1,000 Treatment, 4.20%, 5/01/97 1,000
----------
3,000
----------
MISCELLANEOUS 1.6%
Iowa State School, Cash Anticipation Program,
1,500 4.25%, 1/30/98 1,507
----------
UNIVERSITY REVENUE 0.5%
Cook County, Illinois, Community College District,
500 7.10%, 1/01/98 511
----------
Total Notes and Bonds 5,018
----------
PREREFUNDED AND ESCROWED
TO MATURITY 17.6%
District of Columbia - Series A,
1,000 7.75%, 6/01/01, Prerefunded 6/01/97 1,018
Du Page, Illinois, Water Commission,
1,000 6.88%, 5/01/14, Prerefunded 5/01/97 1,020
Indian Trace, Florida, Community Development
District,
700 8.75%, 5/01/07, Prerefunded 5/01/97 714
Indianapolis, IN Local Public Improvement,
2,525 8.40%, 2/01/07, Prerefunded 2/1/98 2,663
Kentucky State Turnpike Authority:
1,890 13.13%, 7/01/09, Prerefunded 7/01/97 1,919
990 6.20%, 7/01/11, Prerefunded 7/02/97 994
Lake County, IL Lake Forest Preservation
1,500 District, 6.95%, 2/01/03, Prerefunded 2/01/98 1,558
Milwaukee County, WI,
1,000 8.50%, 9/01/97, Escrowed to Maturity 1,016
New Jersey Health Care Facilities,
1,000 8.38%, 8/01/20, Prerefunded 2/1/98 1,046
Pennsylvania State Turnpike, Common Turnpike
1,000 Revenue, 7.15%, 12/01/97, Escrowed to Maturity 1,022
Pottsville, Pennsylvania Hospital Authority, Good
3,050 Samaritan, 8.25%, 8/01/12, Prerefunded 8/01/97 3,141
Summit County, CO, School District
500 9.80%, 12/01/97, Escrowed to Maturity 512
----------
Total Prerefunded and Escrowed to Maturity 16,623
----------
Principal Amortized
Amount Cost
(in thousands) (in thousands)
- -------------- -------------
REVENUE BONDS 69.3%
ELECTRIC REVENUE 5.3%
County of Mason, Kentucky, Series 1984B,
$2,050 4.05%, 10/15/14* $ 2,050
Putnam County, Florida Development Authority -
2,935 Seminole Electric, 4.05%, 3/15/14* 2,935
----------
4,985
----------
HOSPITAL REVENUE 17.5%
Illinois Development Finance Authority,
2,000 Council for Jewish Elderly, 4.60%, 3/01/15* 2,000
Illinois Development Finance Authority,
2,000 Uhlich Children's Home, 4.60%, 6/01/15* 2,000
Illinois Health Facilities Finance Authority,
1,200 Uhlich Children's Home, 4.60%, 4/01/07* 1,200
Indiana Hospital Equipment Finance Authority
3,000 4.55%, 12/01/15* 3,000
Jefferson Parish, Louisiana, Hospital,
2,600 4.00%, 12/01/15* 2,600
Louisiana PFA Hospital Equipment,
1,300 4.30%, 12/01/05* 1,300
Wisconsin State Health & Educational Facilities -
2,000 Blood Center, 4.60%, 6/01/19* 2,000
Wisconsin State Health & Educational Facilities -
2,500 Marshfield Clinic, 4.50%, 6/01/10* 2,500
----------
16,600
----------
HOUSING REVENUE 12.1%
Broward County, Florida, Housing Finance Authority-
2,000 Quiet Creek Apartments, 4.80%, 12/01/29* 2,000
Clayton County, GA Housing Authority
1,400 4.00%, 1/01/21* 1,400
Dade County, Florida, Housing Finance Authority,
1,600 Waterside, 4.15%, 8/01/05* 1,600
Dade County, Florida, Housing Finance Authority,
1,800 Nob Hill Project Series 1, 4.15%, 12/01/29* 1,800
Illinois Development Finance Authority -
1,625 St. Paul's House, 4.50%, 2/01/25* 1,625
Orland Hills, Illinois, Multi-Family,
2,470 4.50%, 12/01/04* 2,470
Washington State Housing Finance - Community
555 Multifamily Mortgage, 4.15%, 10/01/20* 555
----------
11,450
----------
INDUSTRIAL DEVELOPMENT/POLLUTION
CONTROL REVENUE 9.0%
Moffat County, Colorado, Pollution Control,
1,800 4.05%, 7/01/10* 1,800
Oakbrook Terrace, Illinois, Industrial Development,
4,100 3.65%, 12/01/25* 4,100
Oklahoma County, Oklahoma Finance Authority -
2,600 Perrine Office Project, 3.70%, 12/01/14* 2,600
----------
8,500
----------
TAX-EXEMPTMONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1997
(UNAUDITED)
Principal Amortized
Amount Cost
(in thousands) (in thousands)
- -------------- --------------
MISCELLANEOUS 13.2%
Cook County, IL,
$3,030 4.50%, 5/1/20* $ 3,030
Glendale, California, Reliance Development
1,000 Public Parking, 3.55%, 12/01/14* 1,000
Illinois Development Finance Authority
2,000 Rest Haven, 4.50%, 1/01/27* 2,000
Illinois Development Finance Authority,
1,500 Presbyterian Home Lake-A, 4.50%, 9/01/31* 1,500
Illinois Educational Facilities Authority,
2,000 Chicago Zoological, 4.50%, 12/15/25* 2,000
Wisconsin State Health & Education
3,000 Facility Authority, 4.60%, 8/15/16* 3,000
----------
12,530
----------
POOLED GOVERNMENT AUTHORITY REVENUE 3.4%
Indiana Health Facility - Finance Authority,
3,200 4.55%, 8/01/06* 3,200
----------
UNIVERSITY REVENUE 8.8%
Illinois Development Finance Authority -
3,000 St. Ignatius College Prep, 4.50%, 6/01/24* 3,000
Texas Higher Education Authority,
1,855 4.00%, 12/01/25* 1,855
University of North Carolina -
3,500 Chapel Hill, 3.95%, 10/01/09* 3,500
----------
8,355
----------
Total Revenue Bonds 67,127
----------
Number Amortized
of Shares Cost
(in thousands) (in thousands)
- -------------- -------------
INVESTMENT COMPANIES 5.4%
685 Financial Square Tax-Exempt Money Market Fund $ 685
4,410 Tax Free Cash Reserves 4,410
----------
Total Investment Companies 5,095
----------
Total Investments 99.5% 94,188
----------
Other Assets, less Liabilities 0.5% 436
----------
NET ASSETS 100.0% $94,624
==========
* Variable rate security
# Stated maturity with option to put
See notes to the financial statements.
MONEY MARKET FUND
U.S. TREASURY MONEY MARKET FUND
U.S. GOVERNMENT MONEY MARKET FUND
TAX-EXEMPT MONEY MARKET FUND
NOTES TO THE FINANCIAL STATEMENTS
(UNAUDITED)
1. ORGANIZATION
Portico Funds, Inc. (the "Company") was incorporated on February 15, 1988,
as a Wisconsin Corporation and is registered as an open-end management
investment company under the Investment Company Act of 1940, as amended. The
Money Market, U.S. Treasury Money Market (formerly the U.S. Federal Money Market
Fund), U.S. Government Money Market and Tax-Exempt Money Market Funds (the
"Funds") are separate, diversified investment portfolios of the Company. The
Money Market, U.S. Treasury Money Market, U.S. Government Money Market and Tax-
Exempt Money Market Funds commenced operations on March 16, 1988, April 29,
1991, August 1, 1988 and June 27, 1988, respectively.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
a) Investment Valuation - The securities are valued on the basis of amortized
cost for financial reporting purposes and federal income tax purposes, which
approximates market value. Variable rate demand notes are valued at cost which
approximates market value.
b) Federal Income Taxes - No provision for federal income taxes has been made
since the Funds have complied with the provisions of the Internal Revenue Code
available to regulated investment companies and intend to continue to so comply
in future years.
c) Use of Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent 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.
d) Expenses - The Funds are charged for those expenses that are directly
attributable to each portfolio such as advisory, administration, service
organization fees and certain shareowner service fees. Expenses that are not
directly attributable to a portfolio are typically allocated among the Company's
portfolios in proportion to their respective net assets, number of shareowner
accounts or net sales, where applicable.
e) Distributions to Shareowners - Dividends from net investment income are
declared daily and paid monthly. Distributions of net realized capital gains, if
any, will be declared at least annually.
f) Other - The Funds recognize interest income on the accrual basis. For
securities with put provisions, discounts and premiums are amortized to the
earlier of the put date or maturity. For the remainder of securities, discounts
and premiums are amortized over the life of the respective securities.
Investment and shareowner transactions are recorded no later than the first
business day after the trade date. Realized gains and losses from investment
transactions are reported on an identified cost basis which is the same basis
the Funds use for federal income tax purposes. The U.S. Government Money Market
Fund has investments in floating rate government agency notes. The notes have
weekly interest rate reset provisions which are tied to the 90-day Treasury bill
rate. The Fund values the securities at amortized cost, which approximates
market. Transactions in capital shares at $1.00 per share are shown in the
Statement of Changes in Net Assets. Generally accepted accounting principles
require that permanent financial reporting and tax differences be reclassified
to capital stock.
3. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Funds have entered into an Investment Advisory Agreement with Firstar
Investment Research & Management Company ("FIRMCO"). FIRMCO is a subsidiary of
Firstar Corporation, a publicly held bank holding company. Pursuant to its
Advisory Agreement with the Funds, FIRMCO is entitled to receive a fee,
calculated daily and payable monthly, at the annual rate of 0.50% on the first
$2 billion of each Fund's average daily net assets, and 0.40% of each Fund's
average daily net assets in excess of $2 billion. For the six months ended April
30, 1997, FIRMCO voluntarily waived $154, $38, $36 and $38 of its advisory fees,
in thousands, for the Money Market, U.S. Treasury Money Market, U.S. Government
Money Market and Tax-Exempt Money Market Funds, respectively.
Firstar Trust Company, an affiliate of FIRMCO, serves as custodian, transfer
agent and accounting services agent for the Funds.
The Company has entered into a Co-Administration Agreement with B.C. Ziegler
and Company and Firstar Trust Company (the "Co-Administrators") for certain
administrative services. Pursuant to the Co-Administration Agreement with the
Company, the Co-Administrators are entitled to receive a fee, computed daily and
payable monthly, at the annual rate of 0.125% of the Company's first $2 billion
of average aggregate daily net assets plus 0.10% of the Company's average
aggregate daily net assets in excess of $2 billion. For the six months ended
April 30, 1997, $83, $21, $68 and $31 of administration fees, in thousands, were
voluntarily waived for the Money Market, U.S. Treasury Money Market, U.S.
Government Money Market and Tax-Exempt Money Market Funds, respectively.
The Funds have adopted a Service and Distribution Plan pursuant to Rule
12b-1 of the Investment Company Act of 1940 and made payments, in thousands,
for the Money Market Fund of $20, for the six months ended April 30, 1997. No
payments for the U.S. Government Money Market, U.S. Treasury Money Market or
Tax-Exempt Money Market Funds were made during the six months ended April 30,
1997.
Each Director of the Company who is not affiliated with FIRMCO receives an
annual fee from the Company for service as a Director and is eligible to
participate in a deferred compensation plan with respect to these fees.
Participants in the plan may designate their deferred Director's fees as if
invested in any one of the Portico Funds (with the exception of the MicroCap
Fund)or in 90-day U.S. Treasury bills. The value of each Director's deferred
compensation account will increase or decrease as if it were invested in shares
of the selected Portico Funds or 90-day U.S. Treasury bills. The Funds maintain
their proportionate share of the Company's liability for deferred fees.
This page intentionally left blank.
- - PORTICO FUNDS ARE AVAILABLE THROUGH:
- the Portico Funds Center,
- Investment Specialists who are registered representatives of Elan
Investment Services, Inc., a registered broker/dealer, NASD and SIPC
member,
- and through selected shareholder organizations.
This report is authorized for distribution only when preceded or accompanied by
a current prospectus.
TO OPEN AN ACCOUNT OR
REQUEST INFORMATION
1-800-982-8909
1-414-287-3710
FOR ACCOUNT BALANCES AND
INVESTOR SERVICES
1-800-228-1024
1-414-287-3808
PORTICO FUNDS CENTER
615 EAST MICHIGAN STREET
P.O. BOX 3011
MILWAUKEE, WI53201-3011
NASDREF#FX1997-0603-0035
