-------------------
INSTITUTIONAL CLASS
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BALANCED GROWTH FUND
GROWTH AND INCOME FUND
EQUITY INDEX FUND
GROWTH FUND
SPECIAL GROWTH FUND
EMERGING GROWTH FUND
MICROCAP FUND
INTERNATIONAL EQUITY FUND
SEMI-ANNUAL REPORT
APRIL 30, 1998
TO GET THERE, START HERE.SM
FIRSTAR FUNDS
(LOGO)
NOTICE TO INVESTORS
- Shares of Firstar 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.
- - Firstar Bank affiliates serve as investment 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.......................................................1-2
FIRSTAR BALANCED GROWTH FUND............................................4-5
FIRSTAR GROWTH AND INCOME FUND..........................................6-7
FIRSTAR EQUITY INDEX FUND...............................................8-9
FIRSTAR GROWTH FUND....................................................10-11
FIRSTAR SPECIAL GROWTH FUND............................................12-13
FIRSTAR EMERGING GROWTH FUND...........................................14-15
FIRSTAR MICROCAP FUND..................................................16-17
FIRSTAR INTERNATIONAL EQUITY FUND......................................18-19
STATEMENT OF ASSETS AND LIABILITIES....................................20-21
STATEMENT OF CHANGES IN NET ASSETS.....................................22-24
FINANCIAL HIGHLIGHTS...................................................25-32
STATEMENT OF OPERATIONS................................................33-34
SCHEDULE OF INVESTMENTS................................................35-62
NOTES TO THE FINANCIAL STATEMENTS......................................63-69
REPORT OF INDEPENDENT ACCOUNTANTS.........................................57
FIRSTAR FUNDS
(LOGO)
June 1998
DEAR SHAREOWNER:
INVESTMENT REVIEW
During the first half of our fiscal year, financial markets were strong,
rewarding investors that stayed the course. Robust U.S. employment gains, rising
incomes and declining levels of inflation drove consumer confidence to record
highs. Gains in consumer spending (responsible for two-thirds of U.S. economic
activity) on everything from housing to apparel to financial services kept U.S.
economic growth at impressive levels.
Despite solid economic underpinnings, the Asian financial crisis and the fear
that inflation is "just around the corner" will sustain above-average volatility
in the financial markets. However, even with all the ups and downs, we continue
to believe the long-term return potential of stocks and high quality bonds calls
for a consistent approach to asset allocation. Remember, it's time, not timing,
and a disciplined approach to asset allocation that wins the investment
marathon.
The Taxpayer Relief Act of 1997 created additional opportunities for IRA
investors to more aggressively prepare for their retirement. Many of you may
have already taken advantage of the new tax legislation by starting a Roth IRA.
Now, more than ever, it's important to consult your tax adviser to understand
how you can best benefit from favorable new tax laws.
The renaming of our fund family - from Portico to Firstar Funds - on February 1,
1998 aligned us more closely with our parent company and eliminated any
confusion over the relationship between the two organizations. Many enhancements
have been made to Firstar Funds literature as well as to the Firstar Funds' web
site at www.firstarfunds.com. Newly introduced, Firstar Funds Direct allows you
to access information regarding your account(s) on-line. Look for transactional
capabilities to become available on-line this summer. These are just a few of
the ways we are adding value to our servicing efforts. Our goal is to make it
easy and convenient for you to access your account(s) - 24 hours a day, seven
days a week.
MARKET OUTLOOK
Looking ahead, our market forecast is predicated on the following trends:
- -The Asian "flu" has devolved to "pneumonia."
- -The absence of a Japanese economic "tugboat" to pull the Pacific Rim out of
its decline (a la the U.S. in the 1995 Mexican crisis) will deepen and
lengthen the region's financial woes.
- -Reduced demand for U.S. exports due to the dollar's strength and a surge in
Asian imports will balloon the U.S. trade deficit to $200-$250 billion in
1998, creating a drag on the U.S. economy equivalent to 2%-3% of GDP.
- -Rising U.S. wages along with today's competitive, no-pricing-power environment
are squeezing corporate profits and increasing the "urge to merge" as
companies have no alternative but to acquire their competitors and then cut
costs to grow earnings.
- -Competition from imports and global overcapacity in manufacturing (e.g. autos)
and commodities (e.g. oil) will keep U.S. inflation subdued with the Consumer
Price Index (CPI) rising just 1%-1.5% in 1998.
- -Low unemployment and rising "real" (inflation-adjusted) wages in the U.S. are
fueling a boom in consumer spending, sustaining the current U.S. economic
expansion (now in its eighth year) despite the weakness in U.S. foreign trade
and the drag from a federal budget surplus.
- -After the first quarter's strong 4.8% advance in real GDP, U.S. economic
growth will slow to a 2%-3% rate, bringing the full-year 1998 gain in economic
output to approximately 3%.
- -Prospects for continued low levels of inflation and a slowdown in U.S.
economic growth make today's historically high inflation-adjusted bond yields
very attractive.
- -U.S. bond market supply/demand trends favor lower interest rates as a likely
$75 billion swing in the federal budget from deficit to surplus reduces supply
while a strong dollar attracts foreign capital and increases demand.
- -A profits squeeze for the big, multi-national U.S. companies due to rising
wages, Asia's woes and a strong dollar could signal a cyclical peak in the
relative outperformance of large company stocks as their earnings growth slows
and the price-to-earnings multiples awarded their stocks are compressed.
- -With stock performance driven by just two variables - earnings and the
multiple investors are willing to put on those earnings - prospects for small
and medium-sized company stocks are getting brighter given their underexposure
to Asia, improved relative earnings growth and attractive valuations (i.e.
price-to-earnings multiples).
- -During the next several months, we expect one, perhaps two, stock market
declines of 10%-15%. Yet despite the likelihood of increased market volatility
in the near-term, we are sticking with our beginning-of-the-year outlook for
above-average stock market returns in calendar 1998.
IN SUMMARY
Looking ahead, we see continued moderate economic growth and low levels of
inflation. Although market volatility may heighten anxiety levels, we believe
1998 will be another good year for investors. Finally, given the market's
tremendous gains over the past few years, it may be an opportune time to review
your portfolio. Uneven gains can sidetrack a well-planned investment strategy.
Make sure you are properly diversified.
As always, we appreciate your confidence in the Firstar Funds and encourage you
to read the portfolio reviews that follow.
(photo) (photo)
J. SCOTT HARKNESS, CFA MARY ELLEN STANEK, CFA
Chairman/Chief President
Investment Officer
Firstar Investment Research & Management Company, LLC (FIRMCO)
FIRSTARFUNDS
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FIRSTARFUNDS
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BALANCED GROWTH FUND
- -------------------------------------------------------------------------------
Firstar Balanced Growth Fund has gotten off to another good start, returning
+13.5% in the first six months of the fiscal year. While the absolute return is
good, our decision to overweight the smaller- and medium-sized companies which
dominate the Standard & Poor's Mid-Cap 400 and Standard & Poor's Small-Cap 600,
continued to hamper relative performance in the first half of your Fund's fiscal
year. As has been the consistent pattern over the last three years, the Standard
& Poor's 500 solidly out-performed the Standard & Poor's 400 and Standard &
Poor's 600 with returns of +22.5%, +19.2 % and +13.2 %, respectively. During
this same time period, the average balanced fund returned +12.2% as measured by
Lipper Analytical Services, a mutual fund rating service. As of the end of
April, the Fund was invested 60% in common stocks, 34% in bonds and 6% in money
markets.
The equity portion of the Fund continues to be overweighted in finance, consumer
cyclicals, technology and healthcare. Both the finance and healthcare sectors
have benefited from the aging baby-boomer, who is consuming more financial and
healthcare services. Financial problems in Asia have fueled lower interest
rates, as well as lower prices on imported goods. This, combined with very
strong employment growth, has led to robust consumer spending. Consumer
cyclicals have been the net beneficiary. Finally, technology continues to fuel
strong productivity and remains one of the fastest growing segments of our
economy.
In terms of equity holdings, companies with market values greater than $3
billion represent 35% of the portfolio, while companies with market values
smaller than $3 billion represent 30% of the portfolio (20% equivalent in size
to the Standard & Poor's 400 and 10% equivalent in size to the Standard & Poor's
600). Although we have been wrong to date with our small-cap bet, we will
continue to stay the course with this asset allocation. From a valuation
perspective, the relative growth of the smaller companies is much greater while
the share prices, as measured by price to earnings ratios, are much lower. We
like the trade-off of more growth in earnings for a lower valuation price.
During the first calendar quarter, the companies in your portfolio had average
earnings gains of 17%, more than triple that of the S&P 500.
The objective of the fixed-income component of Firstar Balanced Growth Fund is
to provide an annual rate of total return comparable to the return of the Lehman
Brothers Government/Corporate Bond Index. A slight decrease in interest rates
(10-year U.S. Treasury rates decreased by 0.1% to 5.7%) resulted in a six month
total return for the index of +3.64%. While not as impressive as the stock
market's return, this represents a generous real rate of return when compared to
inflation, which rose just one half of one percent.
The Fund's bond holdings have an average maturity of 10.2 years and a duration
of 5.4 years. (Duration measures the price sensitivity of the Fund's bond
holdings to changes in interest rates. The longer the duration, the greater the
price swing for a given move in rates.) The Fund's holdings are high quality
with over two-thirds (69%) of the fixed-income segment invested in securities
rated Aaa/AAA or higher by Moody's or Standard & Poor's. (The Fund's asset-
backed holdings are all rated Aaa/AAA.) In the bond market, like the equity
market, we follow a research-intensive selection process. Corporate sectors that
we currently favor include finance, banking, and brokerage and dollar-
denominated international issues.
We remain optimistic for the remainder of the fiscal year and appreciate your
continued confidence in Firstar Balanced Growth Fund.
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
MARIAN E. ZENTMYER, CFA, CFP, Senior Vice President and Senior Portfolio Manager
of Firstar Investment Research & Management Company, LLC (FIRMCO) AND TERESA R.
WESTMAN, CFA, Senior Portfolio Manager co-manage the Fund, Teresa since its
inception on March 30, 1992, and Marian since June 19, 1996. Marian has been
with Firstar since 1982 and has 20 years of investment management experience.
She received her BA from Stanford University in 1978. Teresa has been with
Firstar since 1987 and has 11 years of investment management experience. Teresa
received her BA from Augustana College in 1985 and her MBA from the University
of Chicago in 1991. Marian is a Chartered Financial Analyst and a Certified
Financial Planner. Teresa is a Chartered Financial Analyst.
(PHOTO) (PHOTO)
MARIAN E. ZENTMYER, TERESA R. WESTMAN, CFA
CFA, CFP
FIRSTAR FUNDS
(LOGO)
FIRSTAR BALANCED GROWTH FUND
- ----------------------------
3/30/92 10,000
10/92 10,372
10/93 11,771
10/94 11,662
10/95 13,969
10/96 15,724
10/97 18,615
4/98 21,130
This chart assumes an initial investment of $10,000 made on 3/30/92 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Returns shown include the reinvestment of all dividends
and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
- -------------------------------------------------------------------------------
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1998
- -------------------------------------------------------------------------------
Since
Fiscal Inception
Year-to-Date 1 Year 3 Years 5 Years 3/30/92
- -------------------------------------------------------------------------------
FIRSTAR BALANCED
GROWTH FUND 13.5 30.1 19.4 14.3 13.1
LIPPER BALANCED
FUND INDEX<F1> 12.2 26.1 19.4 14.2 13.7
S&P 500 STOCK INDEX<F2> 22.5 41.1 32.0 23.3 21.1
- -------------------------------------------------------------------------------
<F1> The Lipper Balanced Fund Index is composed of the 30 largest mutual funds
whose primary objective is to conserve principal by maintaining a balanced
portfolio of stocks and bonds.
<F2> The S&P500 Stock Index is an 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.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Firstar Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. Performance reflects fee
waivers in effect. In the absence of fee waivers, total return would be reduced.
TOP 5 EQUITY HOLDINGS 4/30/98
- -------------------------------------
TYCO INTERNATIONAL, LTD. 1.5%
- -------------------------------------
SUNGARD DATA SYSTEMS, INC. 1.2%
- -------------------------------------
MGIC INVESTMENT CORPORATION 1.1%
- -------------------------------------
PROTECTIVE LIFE CORPORATION 0.9%
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WARNER LAMBERT COMPANY 0.9%
- -------------------------------------
Portfolio holdings are subject to change
and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/98
- -------------------------------------
$246,235,125
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FIRSTAR FUNDS
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GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
Helped by a strong overall market environment, Firstar Growth & Income Fund is
off to an attractive start for the first half of the fiscal year returning +23%
- - outpacing the returns of the Standard & Poor's 500, the Lipper Growth & Income
Index and the Lipper Equity Income Index which returned +22.5%, +17.0% and
+16.3%, respectively.
Strong performance came from basic blocking and tackling. The Fund's largest
holdings were also some of our best performing stocks, while those that did not
meet our expectations fundamentally were fairly small positions. Specifically,
the overweighted position in finance and consumer cyclicals contributed
significantly to the Fund's overall return as they were among the strongest
performing sectors of the Standard & Poor's 500 over the last six months.
Our emphasis in the financial area has been on companies that are asset
accumulators, or have a significant portion of fee income driving their results.
Examples include Northern Trust, Mellon Bank, Western National (recently
eliminated when purchased by American General) and Bank of New York. These
holdings, which fared well in 1997, have continued to do well in 1998 as merger
activity has increased in the group, generating a new wave of consolidation and
interest.
Consumer cyclicals were another strong sector for your portfolio, up +26% for
the six-month time period. This sector was the beneficiary of a strong consumer.
The consumer is experiencing very little inflation due to lower oil prices and
declining prices on imports, while employment levels are at all-time highs. In
addition, turmoil in Asia has led to lower interest rates, allowing the consumer
to once again refinance their home mortgage providing a little extra monthly
spending money. This led to strong performance in The Gap +41%, Hasbro +45% and
Warnaco +50%. We continue to emphasize the sector as the consumer continues to
benefit from very favorable inflation and employment trends.
In the consumer staples sector, we continue to concentrate your portfolio
holdings in pharmaceutical companies. Aging demographics, medical cost
containment and significant new breakthroughs in drug discoveries have led to
increased consumption of pharmaceuticals. Our holdings in this area include
Pfizer and Warner Lambert, which were up 53% and 40%, respectively, for the six-
month period. See page 40 for a complete listing of portfolio holdings.
With the Standard & Poor's 500 at 1130, the market is reflecting economic
nirvana. The turmoil in Asia has lowered inflation expectations, while the U.S.
economy continues to grow at a faster than expected pace. In other words,
optimism is currently priced into share prices. Given the positive fundamentals
and on-going new cash investment, we continue to believe the stock market has an
upward bias; however, we would not be surprised to see greater volatility for
the balance of the year as share prices correct at the hint of bad news.
As always, by sticking with our proven buy and sell disciplines, we believe
Firstar Growth and Income Fund can continue to provide you with attractive
returns. We thank you for your continued support.
PORTFOLIO MANAGER PROFILE
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MARIAN E. ZENTMYER, CFA, CFP, Senior Vice President and Senior Portfolio Manager
of Firstar Investment Research & Management Company, LLC (FIRMCO) AND MAYA K.
BITTAR, CFA, Vice President and Senior Portfolio Manager co-manage the Fund,
Marian since February 22, 1993, and Maya since October 1, 1995. Marian has been
with Firstar since 1982 and has 20 years of investment management experience.
She received her BA from Stanford University in 1978. Maya has been with Firstar
since 1993 and has six years of investment management experience. She received
her BBA in 1985 and her MBA and MS in 1991from the University of Wisconsin.
Marian is a Chartered Financial Analyst and a Certified Financial Planner. Maya
is a Chartered Financial Analyst.
(photo) (photo)
MARIAN E. ZENTMYER, MAYA K. BITTAR, CFA
CFA, CFP
FIRSTAR FUNDS
(LOGO)
FIRSTAR GROWTH AND INCOME FUND
- -------------------------------
12/29/89 10,000
10/90 9,304
10/91 11,688
10/92 12,368
10/93 13,596
10/94 13,846
10/95 17,307
10/96 21,963
10/97 28,734
4/98 35,344
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
- -------------------------------------------------------------------------------
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1998
- -------------------------------------------------------------------------------
Since
Fiscal Inception
Year-to-Date 1 Year 3 Years 5 Years 12/29/89
- -------------------------------------------------------------------------------
FIRSTAR GROWTH AND
INCOME FUND 23.0 43.8 32.1 21.8 16.4
S&P 500 STOCK INDEX<F1> 22.5 41.1 32.0 23.3 17.9
- -------------------------------------------------------------------------------
<F1> The S&P 500 Stock Index is an 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.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Firstar Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. Performance reflects fee
waivers in effect. In the absence of fee waivers, total return would be reduced.
TOP 5 HOLDINGS 4/30/98
- ---------------------------------------
TYCO INTERNATIONAL, LTD. 3.8%
- ---------------------------------------
GAP, INC. 3.4%
- ---------------------------------------
MCKESSON CORPORATION 3.1%
- ---------------------------------------
XEROX CORPORATION 2.8%
- ---------------------------------------
INTERPUBLIC GROUP OF
COMPANIES, INC. 2.6%
- ---------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/98
- ---------------------------------------
$641,884,239
- ---------------------------------------
FIRSTAR FUNDS
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EQUITY INDEX FUND
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Firstar Equity Index Fund seeks to provide investment returns, before Fund
expenses, comparable to the price and yield performance of publicly traded
stocks in the aggregate, as represented by the S&P 500 Index. The Fund does not
use traditional methods of financial and market analysis when making purchase
and sale decisions; rather, the Fund invests primarily in common stocks that
comprise the S&P 500 Index in proportion to their relative capitalization and
sector weightings.
Firstar Equity Index Fund's net asset value of $75.41 on April 30, 1998
represents a total return of +22.3% for the six months then ended, which was
comparable to the S&P 500's return of +22.5% over the same period.
We believe that by applying a capitalization weighting and sector balancing
technique that matches the structure of the S&P 500, as well as using S&P 500
futures contracts to equitize the cash, the Fund should reasonably track the
performance of the index.
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
DANIEL A. TRANCHITA, CFA Vice President and Senior Portfolio Manager of Firstar
Investment Research & Management Company, LLC (FIRMCO) and CARL J. SMITH,
Assistant Vice President and Portfolio Manager co-manage the Fund - Dan since
July 1, 1992 and Carl since January 1, 1996. Dan has been with Firstar since
1989 and has nine years of investment management experience. He received his BA
in 1987 and his MBA in 1989 from Marquette University. Dan is a Chartered
Financial Analyst. Carl has been with Firstar since 1982 and has six years of
investment management experience. He received his BS in 1994 from Cardinal
Stritch College.
(PHOTO) (PHOTO)
DANIEL A. TRANCHITA, CFA CARL J. SMITH
FIRSTAR FUNDS
(LOGO)
FIRSTAR EQUITY INDEX FUND
- --------------------------
12/29/89 10,000
10/90 8,854
10/91 11,767
10/92 12,869
10/93 14,644
10/94 15,157
10/95 19,101
10/96 23,624
10/97 31,037
4/98 37,954
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1998
- --------------------------------------------------------------------------------
Since
Fiscal Inception
Year-to-Date 1 Year 3 Years 5 Years 12/29/89
- --------------------------------------------------------------------------------
FIRSTAR EQUITY
INDEX FUND 22.3 40.4 31.4 22.6 17.3
S&P 500 STOCK INDEX<F1> 22.5 41.1 32.0 23.3 17.9
- --------------------------------------------------------------------------------
<F1> The S&P500 Stock Index is an 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.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Firstar Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund no longer applies to either the Series A or Series
Institutional shares. The performance for the Series Institutional shares have
been restated to reflect the elimination of the purchase price adjustment.
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced.
TOP 5 HOLDINGS 4/30/98
- -------------------------------------
GENERAL ELECTRIC COMPANY 3.1%
- -------------------------------------
MICROSOFT CORPORATION 2.4%
- -------------------------------------
COCA-COLA COMPANY 2.1%
- -------------------------------------
EXXON CORPORATION 1.9%
- -------------------------------------
PFIZER, INC. 1.6%
- -------------------------------------
Portfolio holdings are subject to change
and are not a representation of the Fund's
entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/98
- -------------------------------------
$544,526,168
- -------------------------------------
FIRSTAR FUNDS
(LOGO)
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GROWTH FUND
- --------------------------------------------------------------------------------
The U.S. stock market continued to soar during the six months ended April 30,
1998. The Standard & Poor's 500 Stock Index advanced +22.5% while the Growth
Fund kept pace with a return of +22.9%. This six-month return placed the Fund in
the top 25% of all large company stocks funds during the period.
The strong market advance caught many investors by surprise, coming after the
best three-year run in recorded market history. Investors also shrugged off the
unknown consequences of the Asian economic crisis which had depressed the market
during the Fall. Even more surprising was the strong performance of stocks
during the first calendar quarter in the face of earnings disappointments.
Technology stocks surged despite highly visible profit disappointments from
Compaq, Intel and Motorola. Of all company "pre-announcements" of poor earnings,
technology stocks represented 37% of the total, yet were the strongest
performing group during the January through April period. For the six-month
period, technology stocks represented in the S&P 500 advanced 23.3%. Our
technology stocks, which were overweighted for the time period in your
portfolio, advanced 31.7%. In light of the recent outperformance in the face of
downward earnings revisions, we have modestly reduced the exposure to technology
stocks within the Growth Fund.
A continuing theme, which has been very consistent over the last three years, is
the superior performance of large company stocks compared to small. The last six
months were no exception. The return on the S&P 400 was +19.2%, while the S&P
600 advanced +13.2% - trailing the S&P 500 by 3.3% and 9.3%, respectively. While
the "broken record" of large company price performance domination is getting
old, the relative profit growth of the giant companies is still sufficient to
gain attention. The upward shift in company size executed in the Growth Fund
last year has been a material contributor to portfolio performance.
The strong performance of Firstar Growth Fund was largely driven by stock
selection. Many of our largest holdings were also the strongest performing
stocks for the six months including Tyco International (+42%), Lucent
Technologies (+69%), Sungard Data Systems (+50%), Cincinnati Bell (+40%), Warner
Lambert (+38%) and Carnival Corporation (+42%). See page 49 for a complete
listing of portfolio holdings.
The recently announced merger of Citicorp and Travelers is further evidence of
an ongoing consolidation in the financial services industry. This consolidation
theme, coupled with strong relative earnings gains, continues to make the
finance sector attractive and worthy of our continued overweighted position. As
mentioned, technology was the first sector to be stung by Asia, and we are wary
of further commitments while bad news continues to come forth. We are, however,
very comfortable with the consistent growers we own in this overweighted sector.
Finally, consumer cyclicals continue to be of interest to us because of strong
employment and income gains.
With the S&P 500 at 1130, the market is reflecting economic nirvana. The turmoil
in Asia has lowered inflation expectations while the U.S. economy continues to
grow at a faster-than-expected pace. In other words, optimism is currently
priced into share prices. Given the positive fundamentals and ongoing new cash
investment, we continue to believe the stock market has an upward bias; however,
we would not be surprised to see greater volatility for the balance of the year
as share prices correct at the hint of bad news.
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
MARIAN E. ZENTMYER, CFA, CFP, Senior Vice President and Senior Portfolio Manager
of Firstar Investment Research & Management Company, LLC (FIRMCO), MAYA K.
BITTAR, CFA, Vice President and Senior Portfolio Manager and WALTER E. DEWEY,
CFA, Vice President and Senior Portfolio Manager co-manage the Fund - Marian
since June 19, 1996, Maya since December 1, 1996 and Walter since July 7, 1997.
Marian has been with Firstar since 1982 and has 20 years of investment
management experience. She received her BA from Stanford University in 1978.
Maya has been with Firstar since 1993 and has six years of investment management
experience. She received her BBA in 1985 and her MBA and MS in 1991 from the
University of Wisconsin. Walter has been with Firstar since 1986 and has 15
years of investment management experience. He received his BBA in 1983 from the
University of Wisconsin.
(PHOTO) (PHOTO) (PHOTO)
MARIAN E. ZENTMYER, MAYA K. BITTAR, CFA WALTER E. DEWEY, CFA
CFA, CFP
FIRSTAR FUNDS
(LOGO)
FIRSTAR GROWTH FUND
- --------------------------
12/29/92 10,000
10/93 10,753
10/94 10,813
10/95 12,927
10/96 15,360
10/97 18,671
4/98 22,944
This chart assumes an initial investment of $10,000 made on 12/29/92
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
- -------------------------------------------------------------------------------
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1998
- -------------------------------------------------------------------------------
Since
Fiscal Inception
Year-to-Date 1 Year 3 Years 5 Years 12/29/92
- -------------------------------------------------------------------------------
FIRSTAR GROWTH
FUND 22.9 42.6 25.9 19.1 16.8
S&P 500
STOCK INDEX<F1> 22.5 41.1 32.0 23.3 22.1
- -------------------------------------------------------------------------------
<F1> The S&P500 Stock Index is an 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.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Firstar Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. Performance reflects fee
waivers in effect. In the absence of fee waivers, total return would be reduced.
TOP 5 HOLDINGS 4/30/98
- -------------------------------------
TYCO INTERNATIONAL, LTD. 4.6%
- -------------------------------------
SUNGARD DATA SYSTEMS, INC 3.4%
- -------------------------------------
WARNER-LAMBERT CO. 2.7%
- -------------------------------------
PITTSTON BRINK'S GROUP 2.5%
- -------------------------------------
CINCINNATI BELL, INC. 2.5%
- -------------------------------------
Portfolio holdings are subject to change
and are not a representation of the Fund's
entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/98
- -------------------------------------
$230,013,953
- -------------------------------------
FIRSTAR FUNDS
(LOGO)
- --------------------------------------------------------------------------------
SPECIAL GROWTH FUND
- --------------------------------------------------------------------------------
As a core mid-capitalization fund, Firstar Special Growth Fund gained +16.2% for
the six months ended April 30, 1998, compared to a +19.2% return for the
benchmark, the S&P MidCap 400 Index. The Fund's return lagged the Russell MidCap
Index return of +16.9% during the six-month period, but outpaced the Wilshire
MidCap 750 Index return of +15.0%. Since the Fund's first full month of
operation in January 1990, the average annual return of +17.0% has beaten the
Wilshire MidCap 750 Index return of +16.3% and nearly matched the Russell Midcap
Index return of +17.1%. (The S&P MidCap 400 Index did not begin until 1991.)
The Fund continues to be overweighted in the areas of finance, consumer
cyclicals, technology, and healthcare. These sectors offer more consistent
growth at reasonable prices. At the same time, the Fund has typically
underweighted basic materials, capital goods, transportation, and utilities due
to their economic variability in earnings and slower growth characteristics.
Good performance in the consumer cyclical sector due to holdings such as Dollar
General, Jones Apparel, and Bed Bath & Beyond aided Fund performance in the
first half of the fiscal year. With a strong consumer, cyclical stocks have
outperformed the average stock return. In addition, the Fund's decision to
overweight the healthcare and technology sectors has added to the six-month
results. The basic materials, capital goods, and transportation sectors
continued their strong performance due to a booming economy and low interest
rates, thus hurting the Fund's relative results. As the relative growth rates of
larger industrial companies slows to a single-digit rate, we believe investors
will rotate toward small and mid-sized companies that emphasize sustainable
growth and consistent operating results.
During the first half of the fiscal year, the top performing stocks were Dollar
General (a deep discount general merchandise retailer), Cadence Design (a design
automation software developer), Jones Apparel (a women's apparel manufacturer),
Tech Data (a computer hardware and software distributor), and Protective Life
(an insurance company). Laggards included ADC Telecommunications (a broad-band
telecommunications equipment company), Corrections Corporation of America (a
prison operator), Phycor (a physician practice management company), and Teva
Pharmaceutical (an Israeli generic drug maker). See page 51 for a complete
listing of portfolio holdings.
The Fund's current weighted average market capitalization of $3.9 billion
closely matches that of the S&P MidCap 400 Index. The weighted price-to-earnings
ratio of the Fund at 26X is slightly higher than the benchmark but the Fund's
holdings have estimated earnings growth of near 30%, far greater than the
benchmark. We believe the MidCap area of the domestic equity market offers good
values at current prices; hence, we remain fully invested.
We feel the Fund is well positioned in the current low inflation, slow growth
environment and appreciate your continued support.
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
J. SCOTT HARKNESS, CFA, Chief Investment Officer of Firstar Investment Research
&Management Company, LLC (FIRMCO), and TODD M. KRIEG, CFA, JD, Senior Vice
President, Senior Portfolio Manager and Research Director co-manage the Fund -
Scott since its inception on December 28, 1989 and Todd since September 1994.
Scott has been with Firstar for 18 years and has more than 20 years of
investment management experience. He received his BA from the University of
Wisconsin in 1977. Todd has been with Firstar for six years and received his BA
from Williams College in 1983 and a JD from Georgetown University in 1989. Scott
and Todd are both Chartered Financial Analysts.
(PHOTO) (PHOTO)
J. SCOTT HARKNESS, CFA TODD M. KRIEG, CFA, JD
FIRSTAR FUNDS
(LOGO)
FIRSTAR SPECIAL GROWTH FUND
- ---------------------------
12/28/89 10,000
10/90 8,953
10/91 14,346
10/92 15,617
10/93 18,138
10/94 18,641
10/95 23,449
10/96 26,399
10/97 32,323
4/98 37,570
This chart assumes an initial investment of $10,000 made on 12/28/89
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
- -------------------------------------------------------------------------------
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1998
- -------------------------------------------------------------------------------
Fiscal Since Inception
Year-to-Date1 Year3 Years 5 Years 12/28/89
- -------------------------------------------------------------------------------
FIRSTAR SPECIAL GROWTH FUND 16.2 36.6 23.6 18.2 17.2
S&P 500 STOCK INDEX<F1> 22.5 41.1 32.0 23.3 17.9
S&P MIDCAP 400 INDEX<F2> 19.2 47.9 28.4 20.6 18.4
- -------------------------------------------------------------------------------
<F1> The S&P500 Stock Index is an 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.
<F2> The S&PMidCap 400 Index is a capital-weighted index, representing the
aggregate market value of the common equity of 400 stocks chosen by
Standard &Poor's with a median capitalization of approximately $700
million.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Firstar Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. Performance reflects fee
waivers in effect. In the absence of fee waivers, total return would be reduced.
TOP 5 HOLDINGS 4/30/98
- ------------------------------------
PROTECTIVE LIFE CORPORATION 4.8%
- ------------------------------------
AMBAC, INC. 4.3%
- ------------------------------------
HEALTH MANAGEMENT
ASSOCIATES, INC. 4.1%
- ------------------------------------
SHARED MEDICAL SYSTEMS
CORPORATION 3.9%
- ------------------------------------
TECH DATA CORPORATION 3.8%
- ------------------------------------
Portfolio holdings are subject to change
and are not a representation of the Fund's
entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/98
- ------------------------------------
$766,830,892
- ------------------------------------
FIRSTAR FUNDS
(LOGO)
- --------------------------------------------------------------------------------
EMERGING GROWTH FUND
- --------------------------------------------------------------------------------
Firstar Emerging Growth Fund seeks capital appreciation through investments in
securities of small-sized companies with stock market capitalizations between
$250 million and $2 billion. The Fund's current weighted average market
capitalization is $900 million, compared to its designated benchmark, the S&P
SmallCap 600 Index, at a weighted average market capitalization of $1.0 billion.
The first half of the fiscal year is off to a good start for the Fund with a
return of +14.1% - ahead of the +13.2% return of the S&P SmallCap 600 Index
during the same period.
Through the first half of the fiscal year, the Fund ended with a weighted
average 1998 price-to-earnings ratio of 23X against a 22X price-to-earnings
ratio for the S&P SmallCap 600 Index. At the same time, the estimated 1998
earnings growth rate for Firstar Emerging Growth Fund holdings is over 25%,
which is significantly greater than the benchmark index's estimated earnings
growth rate. In addition, the Fund's holdings maintain a greater portion of
their revenues under long-term contract or recurring revenue streams.
Portfolio holdings which significantly contributed to performance in the first
half of the fiscal year included Software AG (a mainframe maintenance and
information technology services company), Enhance Financial Services (a
municipal bond re-insurer), Acxiom Corporation (a data and direct marketing
services provider), Goody's Family Clothing (a moderately priced apparel
retailer), Quorum Health Group (a hospital operator), and Mastech (an
information technology staffing company). Weak performing holdings included
Philip Services (an environmental services provider), Petco Animal Supplies (a
pet food store retailer), Graham Field Health (a health care products
distributor), and Mentor Corporation (a medical products manufacturer).
The Fund remains overweighted in consumer cyclicals, healthcare, and technology.
Underweighted sectors compared to the benchmark included basic materials,
transportation, and utilities - mostly due to their slow growth characteristics
and sensitivity to economic cycles. The Fund benefited from good relative
performance in the consumer cyclical sector and the technology sector due to
holdings like Goody's Family Clothing, World Access, Sylvan Learning Systems,
Avant!, and JDA Software.
The Fund's performance in finance companies and healthcare companies roughly
matched the S&P SmallCap 600 Index. Weak performing sectors included energy and
capital goods. Lower oil prices in early calendar 1998 reduced some production
expectations in the oil and gas industry while the Fund's capital goods returns
were negatively impacted by Philip Services and slower recycling growth. See
page 53 for a complete listing of portfolio holdings.
With the Fund's current price-to-earnings ratio approximately equal to that of
the larger S&P 500 Index companies, we believe valuations can improve for small
and midcap stocks as the relative growth rates of small and mid-sized companies
outstrip large stocks. As a result, we are optimistic about Firstar Emerging
Growth Fund and look forward to providing our shareowners with attractive growth
opportunities.
PORTFOLIO MANAGER PROFILE
- ------------------------------------------------------------------------------
TODD KRIEG, CFA, JD, Senior Vice President and Senior Portfolio Manager of
Firstar Investment Research & Management Company, LLC (FIRMCO) and MATTHEW
D'ATTILIO, CFA, Vice President and Portfolio Manager have co-managed the Fund
since its inception on August 15, 1997. Todd has been with Firstar since 1992
and has six years of investment management experience. He received his BA from
Williams College in 1983 and a JD from Georgetown University in 1989. Matt has
been with Firstar since 1993 and has five years of investment management
experience. He received his BA from Bowdoin College in 1993. Todd and Matt are
both Chartered Financial Analysts.
(PHOTO) (PHOTO)
TODD KRIEG, CFA, JD MATTHEW D'ATTILIO, CFA
FIRSTAR FUNDS
(LOGO)
FIRSTAR EMERGING GROWTH FUND
- ---------------------------
10/96 10,000
10/97 10,310
4/98 11,762
This chart assumes an initial investment of $10,000 made on 8/15/97 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Returns shown include the reinvestment of all dividends
and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
- -------------------------------------------------------------------------------
CUMMULATIVE RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1998
- -------------------------------------------------------------------------------
Fiscal Since Inception
Year-to-Date 8/15/97
- -------------------------------------------------------------------------------
FIRSTAR EMERGING GROWTH FUND 14.1 17.6
S&P SMALLCAP 600<F1> 13.2 19.5
WILSHIRE NEXT 1750 INDEX<F2> 14.3 20.8
S&P 500 STOCK INDEX<F3> 22.5 21.6
- -------------------------------------------------------------------------------
<F1> The S&PSmallCap 600 Index is a capitalization weighted index that measures
the performance of selected U.S. stocks with small market capitalizations.
<F2> The Wilshire Next 1750 Index is an unmanaged index which shows the next
largest 1,750 companies after the Top 750 of the Wilshire 5000 Stock Index.
<F3> The S&P500 Stock Index is an index of an unmanaged group 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.
An investment cannot be made directly in an index.
Series A shares, unlike the Series Institutional shares, have a 4% maximum sales
load and are subject to an annual 0.25% service organization fee. Performance
reflects fee waivers in effect. In the absence of fee waivers, total return
would be reduced.
TOP 5 HOLDINGS 4/30/98
- -----------------------------------------
GOODY'S FAMILY CLOTHING, INC. 4.3%
- -----------------------------------------
ACXIOM CORPORATION 3.4%
- -----------------------------------------
QUORUM HEALTH GROUP, INC. 3.3%
- -----------------------------------------
ENHANCE FINANCIAL
SERVICES GROUP, INC. 2.9%
- -----------------------------------------
STEIN MART, INC. 2.9%
- ------------------------------------
Portfolio holdings are subject to change
and are not a representation of the Fund's
entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/98
- ------------------------------------
$77,184,309
- ------------------------------------
FIRSTAR FUNDS
(LOGO)
- --------------------------------------------------------------------------------
MICROCAP FUND
- --------------------------------------------------------------------------------
Firstar MicroCap Fund ended the first six months of the fiscal year with an
impressive return of +18.8%, outpacing the +11.9% return of its benchmark, the
Russell 2000. This outperformance was achieved even though the first three
months of this period were somewhat difficult due to the Asia/Pacific economic
crisis (which caused a demand for highly liquid large cap stocks). Sentiment
changed in late January, however, as slowing earnings growth of large cap stocks
became the focus and small and microcap stocks performed better due to stronger
earnings growth, less Asia/Pacific exposure and discounted valuations.
Strong money flows early in 1998 helped the IPO (initial public offering) market
take off again after nearly shutting down late in 1997. As a result, the
MicroCap Fund was an active participant in new issues. Because we felt stocks
with reasonably strong growth and visible earnings would eventually outperform,
we emphasized service companies and consumer stocks such as RemedyTemp, Tier
Technologies, French Fragrances and A.C. Moore. On the flipside, we eliminated
positions where there was a lack of visibility, or high exposure to Asia.
Examples include Eltron International and Simulation Sciences.
Another segment which performed well during the past six months was small ticket
equipment leasing - a subset of the financial sector. Stocks such as T&W
Financial, First Sierra Financial and LINC Capital added approximately +2.61% to
the overall performance of the Fund. Additionally, good visibility in computer
information technology and its attractive return potential prompted us to
emphasize this area by adding Computer Management Sciences, Condor Technology,
Data Processing Research Corporation, and E.C. Soft to the portfolio. These
holdings added approximately +2.75% to overall performance.
We caution our shareowners to the inherent volatility of this Fund as continued
uncertainty in the Far East, liquidity concerns and an interest rate tug-of-war
could lead to underperformance. Conversely, given a scenario of lower interest
rates and stable global economies, we feel the Fund can outperform.
Looking ahead at the remainder of the fiscal year, however, we feel the MicroCap
Fund is prepared for outperformance relative to the Russell 2000. This is due to
the Fund's focus on financial, consumer, and service stocks whose valuations are
compelling relative to their peers and the overall market, and who have
recurring revenues, or strong persistency, in their income statements.
We appreciate your continued confidence in Firstar MicroCap Fund.
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
JOSEPH A. FROHNA, CFA, CPA, Vice President and Portfolio Manager of Firstar
Investment Research & Management Company, LLC (FIRMCO) has managed the Fund
since September 9, 1997. Joe has been with Firstar since 1995 and has five years
of investment management experience. Joe received his BBA from the University of
Wisconsin in 1986 and his MBA from the University of Michigan in 1994. Joe is a
Chartered Financial Analyst.
(PHOTO)
JOSEPH A. FROHNA, CFA, CPA
FIRSTAR FUNDS
(LOGO)
FIRSTAR MICROCAP FUND
- ------------------------
10/94 10,000
10/95 16,393
10/96 17,188
10/97 22,365
4/98 26,564
This chart assumes an initial investment of $10,000 made on 8/1/95 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Returns shown include the reinvestment of all dividends
and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
- -------------------------------------------------------------------------------
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1998
- -------------------------------------------------------------------------------
Fiscal Since Inception
Year-to-Date 1 Year 8/1/95
- -------------------------------------------------------------------------------
FIRSTAR MICROCAP FUND 18.8 73.2 42.7
S&P 500 STOCK INDEX<F1> 22.5 41.1 31.0
RUSSELL 2000<F2> 11.9 42.4 20.7
<F1>The S&P500 Stock Index is an index of an unmanaged group 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.
<F2>The Russell 2000, an unmanaged index, consists of
the smallest 2,000 companies in a group of 3,000 U.S. companies in the
Russell 3000 Index, as ranked by total market capitalization.
An investment cannot be made directly in an index.
Series A shares, unlike the Series Institutional shares, have a 4% maximum sales
load and are subject to an annual 0.25% service organization fee. Performance
reflects fee waivers in effect. In the absence of fee waivers, total return
would be reduced.
TOP 5 HOLDINGS 4/30/98
- ------------------------------------
COINMACH LAUNDRY CORPORATION 3.9%
- ------------------------------------
REMEDYTEMP, INC. 3.1%
- ------------------------------------
CAPITAL AUTOMOTIVE REIT 2.7%
- ------------------------------------
A.C. MOORE ARTS &CRAFTS, INC. 2.6%
- ------------------------------------
T&W FINANCIAL CORPORATION 2.4%
- ------------------------------------
Portfolio holdings are subject to change
and are not a representation of the Fund's
entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/98
- ------------------------------------
$135,352,407
- ------------------------------------
FIRSTAR FUND
(LOGO)
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
Hansberger Global Investors, Inc. (HGI) has been sub-adviser to the Firstar
International Equity Fund since September 2, 1997 and completed its portfolio
restructuring effort in the fourth quarter of 1997. The number of holdings in
the portfolio has been reduced, but greater diversification was achieved. We
purchased stocks that are domiciled in countries that were previously not
represented in the portfolio. As of April 30, 1998, the International Equity
Fund was broadly diversified among 142 stocks in 39 countries. 92% of the
portfolio was invested in stocks, with the largest geographic exposure in Europe
(58%), followed by the Far East including Australia/New Zealand (27%), and the
Americas (7.7%).
Performance among stock markets varied significantly during the six months ended
April 30, 1998, as indices representing European markets gained +26%, Japan
declined by -2%, Latin American markets were flat, and emerging Asian markets
declined -16.7% on average (as measured by the respective MSCI indices). An
important part of HGI's strategy during the fourth quarter of 1997 and early
1998 involved taking advantage of depressed stock prices in Asia and Eastern
Europe. These positions have been established with a long-term view as we
believe the most rewarding investment opportunities arise when markets are in
distress. This strategy was rewarding in many cases - particularly in Korea
where stocks have recovered significantly; however, lingering macroeconomic
uncertainties continued to depress shares in other Asian countries, Eastern
Europe, and Russia, thus contributing to the Fund's short-term underperformance.
Western European stocks continued to perform strongly, and they remain the
largest representation in the portfolio (55.2%). This exposure contributed to
much of the Fund's positive performance as favorable interest rate trends,
strong corporate earnings, and growing domestic liquidity led to strength in
European markets. HGI remains underweighted in the Japanese market, but the Fund
benefited from the relative outperformance of individual Japanese holdings.
As European stock markets continue to rise, strong expectations are increasingly
discounted in companies' valuations. HGI's largest regional exposure remains in
Europe, but an increasing number of new ideas are being discovered in the
depressed Asian and Eastern European stock markets. We will continue to focus on
quality, undervalued companies with a long-term investment horizon and low
portfolio turnover.
We appreciate your confidence in Firstar International Equity Fund.
Note: Investments in foreign securities involve some risk not associated with
investments in domestic securities such as foreign currency fluctuations, and
economic and political risks.
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
JAMES E. CHANEY, Chief Investment Officer of Hansberger Global Investors, Inc.
(HGI), the Fund's sub-adviser, JOHN HOCK, CFA, Research Analyst and Assistant
Portfolio Manager of HGI, ROBERT MAZUELOS, Research Analyst and Assistant
Portfolio Manager of HGI, and DANIEL A. TRANCHITA, CFA, Vice President and
Senior Portfolio Manager of Firstar Investment Research & Management Company,
LLC (FIRMCO), the Fund's adviser, co-manage the Fund - James, John and Robert
since September 2, 1997 (when the sub-advisory agreement with HGI went into
affect) and Dan since the funds inception April 28, 1994. Jim has been with HGI
since 1996 and has 14 years of investment management experience. He received his
BS from the University of Massachusetts - Amherst in 1979, his MS from
Northeastern University in 1983 and his MBA from Columbia University in 1987.
John has been with HGI since 1995 and has eight years of investment management
experience. He received his BS from Cornell University in 1990 and his MBA from
New York University in 1995. John is a Chartered Financial Analyst. Robert has
been with HGI since 1995 and has eight years of investment management
experience. He received his BS from the University of Florida in 1990. Dan has
been with Firstar since 1989 and has nine years of investment management
experience. He received his BA in 1987 and his MBA in 1989 from Marquette
University. Dan is a Chartered Financial Analyst.
(PHOTO) (PHOTO) (PHOTO) (PHOTO)
JAMES E. CHANEY JOHN HOCK, CFA ROBERT MAZUELOS DANIEL
TRANCHITA, CFA
FIRSTAR FUNDS
(LOGO)
FIRSTAR INTERNATIONAL EQUITY FUND
- ---------------------------------
10/93 10,000
10/94 9,995
10/95 9,620
10/96 10,410
10/97 9,879
4/98 10,659
This chart assumes an initial investment of $10,000 made on 4/28/94 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Returns shown include the reinvestment of all dividends
and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1998
- --------------------------------------------------------------------------------
Fiscal Since Inception
Year-to-Date 1 Year 3 Years 4/28/94
- --------------------------------------------------------------------------------
FIRSTAR INTERNATIONAL
EQUITY FUND 7.9 2.8 2.2 1.6
EAFEINDEX<F1> 15.4 18.9 9.5 8.5
- --------------------------------------------------------------------------------
<F1> The Morgan Stanley Capital International Europe, Australia and Far East
Index, ("MSCI/EAFE") is an unmanaged index composed of companies
representative of the market structure of 20 European and Pacific Basin
countries. The MSCI/EAFE Index is the most recognized international index
and is weighted by market capitalization.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Firstar Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund no longer applies to either the Series A or Series
Institutional shares. The performance for the Series Institutional shares have
been restated to reflect the elimination of the purchase price adjustment.
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced.
TOP 5 COUNTRIES 4/30/98
- -----------------------------------
GREAT BRITAIN 13.6%
- -----------------------------------
FRANCE 6.5%
- -----------------------------------
HONG KONG 5.9%
- -----------------------------------
JAPAN 5.7%
- -----------------------------------
SPAIN 5.6%
- -----------------------------------
Portfolio holdings are subject to change
and are not a representation of the Fund's
entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/98
- -----------------------------------
$74,313,259
- -----------------------------------
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
APRIL 30, 1998
(UNAUDITED)
BALANCED GROWTH GROWTH AND INCOME EQUITY INDEX
FUND FUND FUND
---------------- ------------------ ------------
<C> <C> <C>
ASSETS:
Investments, at value (cost $188,225, $402,858,
$306,672, $141,233, $502,585, $68,292,
$106,708, and $73,567, respectively) $242,558 $645,360 $543,415
Foreign currency (cost $401) _ _ _
Cash _ _ _
Income receivable 1,278 1,003 647
Capital shares sold 2,084 2,117 1,120
Receivable for securities sold 2,874 2,588 560
Receivable for foreign currency sold _ _ _
Other assets 17 22 24
--------- --------- ---------
Total Assets 248,811 651,090 545,766
--------- --------- ---------
LIABILITIES:
Payable for securities purchased 2,215 8,083 803
Payable for foreign currency purchased _ _ _
Capital shares redeemed 161 577 198
Payable to affiliates 181 518 216
Accrued expenses and other liabilities 19 28 23
--------- --------- ---------
Total Liabilities 2,576 9,206 1,240
--------- --------- ---------
NET ASSETS $246,235 $641,884 $544,526
========= ========= =========
NET ASSETS CONSIST OF:
Capital stock $185,324 $374,884 $302,760
Undistributed net investment income (loss) 438 666 551
Undistributed accumulated net
realized gains (losses) on:
Investments 6,140 23,832 3,721
Foreign currency _ _ _
Unrealized net appreciation
(depreciation) on:
Investments 54,333 242,502 236,743
Futures contracts _ _ 751
Foreign currency _ _ _
--------- --------- ---------
Total Net Assets $246,235 $641,884 $544,526
========= ========= =========
SERIES A:
Net assets $ 58,744 $178,853 $105,331
Shares authorized ($.0001 par value) 500,000 500,000 500,000
Shares issued and outstanding 1,869 3,854 1,398
Net asset value and redemption price per share<F1> $31.43 $46.41 $75.33
========= ========= =========
Maximum offering price per share<F1> $32.74 $48.34 $78.47
========= ========= =========
SERIES INSTITUTIONAL:
Net assets $187,491 $463,031 $439,195
Shares authorized ($.0001 par value) 500,000 500,000 500,000
Shares issued and outstanding 5,958 9,966 5,824
Net asset value, redemption price and
offering price per share<F1> $31.47 $46.46 $75.41
========= ========= =========
<F1> Amounts may not recalculate due to rounding.
</TABLE>
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
SPECIAL EMERGING INTERNATIONAL
GROWTH GROWTH GROWTH MICROCAP EQUITY
FUND FUND FUND FUND FUND
---------------- -------------- ------------ --------- ---------------
<C> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost $188,225, $402,858,
$306,672, $141,233, $502,585, $68,292,
$106,708, and $73,567, respectively) $225,345 $766,003 $ 76,990 $138,399 $ 72,678
Foreign currency (cost $401) _ _ _ _ 382
Cash _ _ _ _ 694
Income receivable 166 155 65 14 413
Capital shares sold 447 1,201 298 _00 159
Receivable for securities sold 5,138 8,077 3,015 241 603
Receivable for foreign currency sold _ _ _ _ 4
Other assets 14 17 46 23 16
--------- --------- --------- --------- ---------
Total Assets 231,110 775,453 80,414 138,677 74,949
--------- --------- --------- --------- ---------
LIABILITIES:
Payable for securities purchased 741 7,153 3,138 2,951 370
Payable for foreign currency purchased _ _ _ _ _
Capital shares redeemed 136 775 6 175 22
Payable to affiliates 202 649 76 193 100
Accrued expenses and other liabilities 17 45 10 6 144
--------- --------- --------- --------- ---------
Total Liabilities 1,096 8,622 3,230 3,325 636
--------- --------- --------- --------- ---------
NET ASSETS $230,014 $766,831 $ 77,184 $135,352 $ 74,313
========= ========= ========= ========= =========
NET ASSETS CONSIST OF:
Capital stock $128,356 $485,022 $ 67,086 $ 87,232 $ 75,238
Undistributed net investment income (loss) 10 (1,020) (8) (933) 273
Undistributed accumulated net
realized gains (losses) on:
Investments 17,536 19,411 1,408 17,362 (214)
Foreign currency _ _ _ _ (76)
Unrealized net appreciation
(depreciation) on:
Investments 84,112 263,418 8,698 31,691 (889)
Futures contracts _ _ _ _ _
Foreign currency _ _ _ _ (19)
--------- --------- --------- --------- ---------
Total Net Assets $230,014 $766,831 $77,184 $135,352 $ 74,313
========= ========= ========= ========= =========
SERIES A:
Net assets $ 34,481 $172,611 $10,598 $ 18,772 $7,910
Shares authorized ($.0001 par value) 500,000 500,000 500,000 500,000 500,000
Shares issued and outstanding 933 3,722 909 1,000 405
Net asset value and redemption price per share<F1> $36.97 $46.37 $11.66 $18.76 $19.52
========= ========= ========= ========= =========
Maximum offering price per share<F1> $38.51 $48.30 $12.15 $19.54 $20.33
========= ========= ========= ========= =========
SERIES INSTITUTIONAL:
Net assets $195,533 $594,220 $ 66,586 $116,580 $ 66,403
Shares authorized ($.0001 par value) 500,000 500,000 500,000 500,000 500,000
Shares issued and outstanding 5,247 12,690 5,704 6,167 3,389
Net asset value, redemption price and
offering price per share<F1> $37.26 $46.83 $11.67 $18.90 $19.59
========= ========= ========= ========= =========
<F1> Amounts may not recalculate due to rounding.
</TABLE>
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
(UNAUDITED) BALANCED GROWTH FUND GROWTH AND INCOME FUND
------------------------- --------------------------
Six months Year Six months Year
ended ended ended ended
April 30, Oct. 31, April 30, Oct. 31,
1998 1997 1998 1997
--------- --------- --------- ---------
(Unaudited) (Unaudited)
<C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 2,301 $ 4,197 $ 2,674 $ 5,272
Net realized gain on:
Investments 6,617 17,108 23,870 17,736
Foreign currency _ _ _ _
Change in unrealized
appreciation on:
Investments 19,372 9,540 89,776 83,976
Foreign currency _ _ _ _
--------- --------- --------- ---------
Net increase in net assets
resulting from operations 28,290 30,845 116,320 106,984
--------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Shares sold 42,455 82,936 104,520 182,721
Shares issued to owners in
reinvestment of dividends 19,178 13,325 18,105 27,125
Shares redeemed (32,617) (63,501) (70,872) (90,531)
--------- --------- --------- ---------
Net increase in net assets
as a result of capital
share transactions 29,016 32,760 51,753 119,315
--------- --------- --------- ---------
DISTRIBUTIONS TO SERIES
A SHAREOWNERS:
From net investment income (490) (722) (576) (1,107)
From net realized gains (3,620) (1,751) (4,638) (5,918)
--------- --------- --------- ---------
(4,110) (2,473) (5,214) (7,025)
--------- --------- --------- ---------
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREOWNERS:
From net investment income (1,833) (3,385) (1,967) (4,136)
From net realized gains (13,536) (7,788) (13,098) (19,246)
--------- --------- --------- ---------
(15,369) (11,173) (15,065) (23,382)
--------- --------- --------- ---------
TOTAL INCREASE IN NET ASSETS 37,827 49,959 147,794 195,892
NET ASSETS:
Beginning of period 208,408 158,449 494,090 298,198
--------- --------- --------- ---------
End of period (including
undistributed net investment
income (loss) of $438, $460,
$666, $535, $551, $513, $10, $121,
$(1,020), $(2), $(8) and $117,
respectively) $246,235 $208,408 $641,884 $494,090
========= ========= ========= =========
<F1> Commencement of operations.
</TABLE>
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
(UNAUDITED) EQUITY INDEX GROWTH SPECIAL GROWTH EMERGING GROWTH
FUND FUND FUND FUND
------------------------------------------- ------------------- ------------------
Six months Year Six months Year Six months Year Six monthsAug.15, 1997<F1>
ended ended ended ended ended ended ended through
April 30, Oct. 31, April 30, Oct. 31, April 30, Oct. 31, April 30, Oct. 31,
1998 1997 1998 1997 1998 1997 1998 1997
--------- --------- --------- --------- --------- --------- --------- ---------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 3,137 $ 5,279 $ 90 $ 119 $ (1,021)$ (2,028) $ 6 _
Net realized gain on:
Investments 4,316 7,245 17,766 30,037 20,540 70,219 1,411 $117
Foreign currency _ _ _ _ _ _ _ 306
Change in unrealized
appreciation on:
Investments 84,860 68,766 26,792 6,762 90,219 67,861 7,824 873
Foreign currency _ _ _ _ _ _ _ _
--------- --------- --------- --------- --------- --------- --------- ---------
Net increase in net assets
resulting from operations 92,313 81,290 44,648 36,918 109,738 136,052 9,241 1,296
--------- --------- --------- --------- --------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Shares sold 104,366 164,226 30,893 56,737 82,477 204,220 18,206 52,281
Shares issued to owners in
reinvestment of dividends 9,298 7,676 23,938 5,867 64,516 67,741 352 _
Shares redeemed (43,819) (103,969) (45,805) (57,271) (134,766) (210,150) (3,575) (178)
--------- --------- --------- --------- --------- --------- --------- ---------
Net increase in net assets
as a result of capital
share transactions 69,845 67,933 9,026 5,333 12,227 61,811 14,983 52,103
--------- --------- --------- --------- --------- --------- --------- ---------
DISTRIBUTIONS TO SERIES
A SHAREOWNERS:
From net investment income (537) (822) (16) _ 3 _ (12) _
From net realized gains (1,399) (516) (3,671) (740) (14,739) (14,101) (33) _
--------- --------- --------- --------- --------- --------- --------- ---------
(1,936) (1,338) (3,687) (740) (14,736) (14,101) (45) _
--------- --------- --------- --------- --------- --------- --------- ---------
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREOWNERS:
From net investment income (2,562) (4,327) (185) _ _ _ (118) _
From net realized gains (5,759) (2,661) (26,481) (6,747) (56,822) (61,354) (276) _
--------- --------- --------- --------- --------- --------- --------- ---------
(8,321) (6,988) (26,666) (6,747) (56,822) (61,354) (394) _
--------- --------- --------- --------- --------- --------- --------- ---------
TOTAL INCREASE IN NET ASSETS 151,901 140,897 23,321 34,764 50,407 122,408 23,785 53,399
NET ASSETS:
Beginning of period 392,625 251,728 206,693 171,929 716,424 594,016 53,399 _
--------- --------- --------- --------- --------- --------- --------- ---------
End of period (including
undistributed net investment
income (loss) of $438, $460,
$666, $535, $551, $513, $10, $121,
$(1,020), $(2), $(8) and $117,
respectively) $544,526 $392,625 $230,014 $206,693 $766,831 $716,424 $77,184 $53,399
========= ========= ========= ========= ========= ========= ========= =========
<F1> Commencement of operations.
</TABLE>
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
(UNAUDITED) MICROCAP FUND INTERNATIONAL EQUITY FUND
------------------------ ----------------------------
Six months Year Six months Year
ended ended ended ended
April 30, 1998 Oct. 31, 1997 April 30, 1998 Oct. 31, 1997
--------------- ------------- -------------- --------------
(Unaudited) (Unaudited)
<C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ (930) $ (1,086) $ 307 $ (174)
Net realized gain (loss) on:
Investments 17,375 12,681 (211) 1,964
Foreign currency _ _ (76) 28
Change in unrealized appreciation
(depreciation) on:
Investments 5,223 13,904 5,340 (5,960)
Foreign currency _ _ (26) (1)
--------- --------- --------- ---------
Net increase (decrease) in net assets
resulting from operations 21,668 25,499 5,334 (4,143)
--------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Shares sold 1,787 28,930 10,162 32,361
Shares issued to owners in
reinvestment of dividends 9,448 11,413 1,248 1,265
Shares redeemed (6,770) (8,081) (4,574) (11,236)
--------- --------- --------- ---------
Net increase in net assets as a
result of capital share transactions 4,465 32,262 6,836 22,390
--------- --------- --------- ---------
DISTRIBUTIONS TO SERIES A SHAREOWNERS:
From net investment income _ _ (31) (25)
From net realized gains (1,599) (1,540) (135) (92)
--------- --------- --------- ---------
(1,599) (1,540) (166) (117)
--------- --------- --------- ---------
DISTRIBUTIONS TO SERIES INSTITUTIONAL
SHAREOWNERS:
From net investment income _ _ (277) (363)
From net realized gains (9,815) (11,229) (1,122) (1,010)
--------- --------- --------- ---------
(9,815) (11,229) (1,399) (1,373)
--------- --------- --------- ---------
TOTAL INCREASE IN NET ASSETS 14,719 44,992 10,605 16,757
NET ASSETS:
Beginning of period 120,633 75,641 63,708 46,951
--------- --------- --------- ---------
End of period (including undistributed
net investment income
(loss) of $(933), $(2),
$273 and $275, respectively) $135,352 $120,633 $74,313 $63,708
========= ========= ========= =========
</TABLE>
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
BALANCED GROWTH FUND
--------------------------------------------------------------------------------------------------
Six months ended Year ended Year ended Year ended Year ended
April 30, 1998 October 31, 1997 October 31, 1996 October 31, 1995<F3> October 31,
----------------- -------------------- ----------------- --------------------- ----------------
Series Series Series Series Series Series Series Series
A Inst'l. A Inst'l. A Inst'l. A Inst'l. 1994 1993
------ ------ ------ ------ ------ ----- ------- ------ ------ ------
Per Share Data: (Unaudited)
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $30.48 $30.51 $27.98 $27.99 $25.89 $25.90 $22.10 $22.10 $22.76 $20.49
Income from investment
operations:
Net investment income 0.27 0.30 0.58 0.66 0.47<F8> 0.55<F8> 0.49 0.53 0.44 0.47
Net realized and
unrealized gains
(losses) on securities 3.46 3.47 4.19 4.20 2.64 2.62 3.77 3.78 (0.66) 2.27
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total from investment
operations 3.73 3.77 4.77 4.86 3.11 3.17 4.26 4.31 (0.22) 2.74
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment income (0.28) (0.31) (0.59) (0.66) (0.47) (0.53) (0.47) (0.51) (0.44) (0.47)
Distributions from
capital gains (2.50) (2.50) (1.68) (1.68) (0.55) (0.55) _ _ _ _
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total distributions (2.78) (2.81) (2.27) (2.34) (1.02) (1.08) (0.47) (0.51) (0.44) (0.47)
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Net asset value,
end of period $31.43 $31.47 $30.48 $30.51 $27.98 $27.99 $25.89 $25.90 $22.10 $22.76
===== ===== ===== ===== ===== ===== ===== ===== ===== =====
Total return <F4><F5> 13.38% 13.50% 18.07% 18.39% 12.30% 12.56% 19.55% 19.79% (0.93)% 13.49%
Supplemental data
and ratios:
Net assets, in thousands,
end of period $58,744 $187,491 $44,026 $164,382 $29,034 $129,415 $21,832 $104,552 $94,657 $82,099
Ratio of net
expenses to average
net assets <F6> 1.00% 0.75% 1.00% 0.75% 1.00% 0.75% 0.94% 0.75% 0.75% 0.75%
Ratio of net investment
income to average net
assets <F6> 1.89% 2.14% 2.06% 2.31% 1.80% 2.05% 2.05% 2.24% 2.03% 2.24%
Portfolio turnover
rate <F4><F7> 24.80% 24.80% 69.90% 69.90% 63.91% 63.91% 61.87% 61.87% 59.77% 71.60%
Average commission rate
paid <F7> $0.0496 $0.0496 $0.0552 $0.0552 $0.0581 $0.0581
</TABLE>
<F1> Commencement of operations.
<F2> Effective June 17, 1993, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F3> On January 9, 1995, all previously existing series of shares of each Fund
were reclassified as Series A shares. Effective January 9, 1995,
Institutional shareowners exchanged their Series A shares for the Funds'
Institutional series shares. For the year ended October 31, 1995, the
Financial Highlights ratios of net expenses to average net assets, ratios
of net investment income to average net assets, total return and the per
share income from investment operations and distributions are presented on
a basis whereby the Funds' net investment income, net expenses, net
realized and unrealized gains (losses) and distributions for the period
November 1, 1994, through January 9, 1995, were allocated to each class of
shares based upon the relative net assets of each class of shares as of the
close of business on January 9, 1995, and the results thereof combined with
the results of operations and distributions for each applicable class for
the period January 10, 1995, through October 31, 1995.
<F4> Not annualized for the period ended October 31, 1993, for the Growth Fund,
for the period ended October 31, 1997, for the Emerging Growth Fund, for
the periods ended October 31, 1996 and June 30, 1996, for the MicroCap
Fund, for the period ended October 31, 1994, for the International Equity
Fund, and for the period ended April 30, 1998 for all Funds.
<F5> The total return does not reflect the 4% front-end sales charge for Series
A.
<F6> Annualized for the period ended October 31, 1993, for the Growth Fund, for
the period ended October 31, 1997, for the Emerging Growth Fund, for the
periods ended October 31, 1996 and June 30, 1996, for the MicroCap Fund,
for the period ended October 31, 1994, for the International Equity Fund
and for the period ended April 30, 1998 for all Funds.
<F7> Portfolio turnover and average commission rate paid is calculated on the
basis of the Fund as a whole without distinguishing between the classes of
shares issued.
<F8> Net investment income per share is calculated using ending balances prior
to consideration of adjustments for permanent book and tax differences.
<F9> Effective September 2, 1997, Hansberger Global Investors assumed the
investment sub-advisory responsibilities of State Street Global Advisors.
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
GROWTH AND INCOME FUND
--------------------------------------------------------------------------------------------------
Six months ended Year ended Year ended Year ended Year ended
April 30, 1998 October 31, 1997 October 31, 1996 October 31, 1995<F3> October 31,
----------------- -------------------- ----------------- --------------------- ----------------
Series Series Series Series Series Series Series Series
A Inst'l. A Inst'l. A Inst'l. A Inst'l. 1994 1993<F2>
------ ------ ------ ------ ------ ----- ------- ------ ------ ------
Per Share Data: (Unaudited)
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $39.24 $39.28 $33.07 $33.08 $27.62 $27.63 $23.09 $23.09 $23.70 $22.27
Income from investment
operations:
Net investment income 0.16 0.21 0.37 0.46 0.42<F8> 0.50<F8> 0.37 0.42 0.43 0.56
Net realized and
unrealized gains
(losses) on securities 8.56 8.56 8.92 8.94 6.61 6.61 5.14 5.14 (0.03) 1.63
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total from investment
operations 8.72 8.77 9.29 9.40 7.03 7.11 5.51 5.56 0.40 2.19
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment income (0.16) (0.20) (0.39) (0.47) (0.39) (0.47) (0.38) (0.42) (0.42) (0.57)
Distributions from
capital gains (1.39) (1.39) (2.73) (2.73) (1.19) (1.19) (0.60) (0.60) (0.59) (0.19)
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total distributions (1.55) (1.59) (3.12) (3.20) (1.58) (1.66) (0.98) (1.02) (1.01) (0.76)
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Net asset value,
end of period $46.41 $46.46 $39.24 $39.28 $33.07 $33.08 $27.62 $27.63 $23.09 $23.70
===== ===== ===== ===== ===== ===== ===== ===== ===== =====
Total return <F4><F5> 22.88% 23.00% 30.47% 30.83% 26.62% 26.90% 24.75% 25.00% 1.84% 9.93%
Supplemental data
and ratios:
Net assets, in thousands,
end of period $178,853 $463,031 $128,070 $366,020 $71,310 $226,888 $42,424 $162,752 $164,053$160,704
Ratio of net
expenses to average
net assets <F6> 1.12% 0.87% 1.12% 0.87% 1.15% 0.90% 1.09% 0.90% 0.90% 0.88%
Ratio of net investment
income to average net
assets <F6> 0.77% 1.02% 1.09% 1.34% 1.42% 1.67% 1.51% 1.70% 1.89% 2.44%
Portfolio turnover
rate <F4><F7> 19.34% 19.34% 31.36% 31.36% 51.37% 51.37% 47.85% 47.85% 56.85% 86.24%
Average commission rate
paid <F7> $0.0505 $0.0505 $0.0558 $0.0558 $0.0573 $0.0573
</TABLE>
<F1> Commencement of operations.
<F2> Effective June 17, 1993, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F3> On January 9, 1995, all previously existing series of shares of each Fund
were reclassified as Series A shares. Effective January 9, 1995,
Institutional shareowners exchanged their Series A shares for the Funds'
Institutional series shares. For the year ended October 31, 1995, the
Financial Highlights ratios of net expenses to average net assets, ratios
of net investment income to average net assets, total return and the per
share income from investment operations and distributions are presented on
a basis whereby the Funds' net investment income, net expenses, net
realized and unrealized gains (losses) and distributions for the period
November 1, 1994, through January 9, 1995, were allocated to each class of
shares based upon the relative net assets of each class of shares as of the
close of business on January 9, 1995, and the results thereof combined with
the results of operations and distributions for each applicable class for
the period January 10, 1995, through October 31, 1995.
<F4> Not annualized for the period ended October 31, 1993, for the Growth Fund,
for the period ended October 31, 1997, for the Emerging Growth Fund, for
the periods ended October 31, 1996 and June 30, 1996, for the MicroCap
Fund, for the period ended October 31, 1994, for the International Equity
Fund, and for the period ended April 30, 1998 for all Funds.
<F5> The total return does not reflect the 4% front-end sales charge for Series
A.
<F6> Annualized for the period ended October 31, 1993, for the Growth Fund, for
the period ended October 31, 1997, for the Emerging Growth Fund, for the
periods ended October 31, 1996 and June 30, 1996, for the MicroCap Fund,
for the period ended October 31, 1994, for the International Equity Fund
and for the period ended April 30, 1998 for all Funds.
<F7> Portfolio turnover and average commission rate paid is calculated on the
basis of the Fund as a whole without distinguishing between the classes of
shares issued.
<F8> Net investment income per share is calculated using ending balances prior
to consideration of adjustments for permanent book and tax differences.
<F9> Effective September 2, 1997, Hansberger Global Investors assumed the
investment sub-advisory responsibilities of State Street Global Advisors.
<F10>Net investment income per share is calculated using the average shares
outstanding.Commencement of operations.
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
EQUITY INDEX FUND
--------------------------------------------------------------------------------------------------
Six months ended Year ended Year ended Year ended Year ended
April 30, 1998 October 31, 1997 October 31, 1996 October 31, 1995<F3> October 31,
----------------- -------------------- ----------------- --------------------- ----------------
Series Series Series Series Series Series Series Series
A Inst'l. A Inst'l. A Inst'l. A Inst'l. 1994 1993
------ ------ ------ ------ ------ ----- ------- ------ ------ ------
Per Share Data: (Unaudited)
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $63.11 $63.16 $49.40 $49.43 $41.07 $41.08 $33.41 $33.41 $33.04 $29.72
Income from investment
operations:
Net investment income 0.40<F10> 0.49<F10>0.80 0.95 0.77<F8> 0.91<F8> 0.70 0.76 0.77 0.75
Net realized and
unrealized gains
(losses) on securities 13.34 13.35 14.33 14.33 8.69 8.68 7.70 7.71 0.35 3.32
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total from investment
operations 13.74 13.84 15.13 15.28 9.46 9.59 8.40 8.47 1.12 4.07
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment income (0.41) (0.48) (0.81) (0.94) (0.78) (0.89) (0.68) (0.74) (0.75) (0.75)
Distributions from
capital gains (1.11) (1.11) (0.61) (0.61) (0.35) (0.35) (0.06) (0.06) _ _
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total distributions (1.52) (1.59) (1.42) (1.55) (1.13) (1.24) (0.74) (0.80) (0.75) (0.75)
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Net asset value,
end of period $75.33 $75.41 $63.11 $63.16 $49.40 $49.43 $41.07 $41.08 $33.41 $33.04
===== ===== ===== ===== ===== ===== ===== ===== ===== =====
Total return <F4><F5> 22.14% 22.28% 31.08% 31.38% 23.36% 23.68% 25.79% 26.02% 3.51% 13.79%
Supplemental data
and ratios:
Net assets, in thousands,
end of period $105,331 $439,195 $76,866 $315,759 $39,656 $212,072 $18,663 $138,106 $107,563 $83,820
Ratio of net
expenses to average
net assets <F6> 0.62% 0.37% 0.63% 0.38% 0.66% 0.41% 0.66% 0.46% 0.50% 0.50%
Ratio of net investment
income to average net
assets <F6> 1.17% 1.42% 1.40% 1.66% 1.76% 2.01% 2.14% 2.34% 2.38% 2.32%
Portfolio turnover
rate <F4><F7> 2.11% 2.11% 9.81% 9.81% 7.48% 7.48% 4.61% 4.61% 13.28% 13.78%
Average commission rate
paid <F7> $0.0559 $0.0559 $0.0592 $0.0592 $0.0604 $0.0604
</TABLE>
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
GROWTH FUND
--------------------------------------------------------------------------------------------------
Six months ended Year ended Year ended Year ended Year Dec 29, 1992<F2>
April 30, 1998 October 31, 1997 October 31, 1996 October 31, 1995<F3> ended through
----------------- -------------------- ----------------- ---------------------
Series Series Series Series Series Series Series Series Oct. 31, Oct. 31,
A Inst'l. A Inst'l. A Inst'l. A Inst'l. 1994 1993
------ ------ ------ ------ ------ ----- ------- ------ ------ ------
Per Share Data: (Unaudited)
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $35.27 $35.48 $30.32 $30.43 $25.58 $25.61 $21.47 $21.47 $21.40 $20.09
Income from investment
operations:
Net investment income (0.03) 0.02 (0.05) <F8>0.04<F8>(0.07) <F8>(0.01) <F8>(0.02) 0.03 0.06 0.09
Net realized and
unrealized gains
(losses) on securities 6.92 6.96 6.30 6.31 4.81 4.83 4.16 4.16 0.06 1.32
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total from investment
operations 6.89 6.98 6.25 6.35 4.74 4.82 4.14 4.19 0.12 1.41
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment income (0.02) (0.03) _ _ _ _ (0.03) (0.05) (0.05) (0.10)
Distributions from
capital gains (5.17) (5.17) (1.30) (1.30) _ _ _ _ _ _
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total distributions (5.19) (5.20) (1.30) (1.30) _ _ (0.03) (0.05) (0.05) (0.10)
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Net asset value,
end of period $36.97 $37.26 $35.27 $35.48 $30.32 $30.43 $25.58 $25.61 $21.47 $21.40
===== ===== ===== ===== ===== ===== ===== ===== ===== =====
Total return <F4><F5> 22.73% 22.88% 21.30% 21.56% 18.53% 18.82% 19.31% 19.55% 0.56% 7.53%
Supplemental data
and ratios:
Net assets, in thousands,
end of period $34,481 $195,533 $25,043 $181,650 $16,636 $155,293 $10,105 $134,428 $113,197 $84,467
Ratio of net
expenses to average
net assets <F6> 1.14% 0.89% 1.14% 0.89% 1.15% 0.90% 1.09% 0.90% 0.88% 0.89%
Ratio of net investment
income to average net
assets <F6> (0.13)% 0.12% (0.16)% 0.09% (0.29)% (0.04)% (0.06)% 0.13% 0.30% 0.57%
Portfolio turnover
rate <F4><F7> 21.38% 21.38% 62.09% 62.09% 56.75% 56.75% 49.84% 49.84% 33.24% 46.29%
Average commission rate
paid <F7> $0.0498 $0.0498 $0.0557 $0.0557 $0.0582 $0.0582
</TABLE>
<F1> Commencement of operations.
<F2> Effective June 17, 1993, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F3> On January 9, 1995, all previously existing series of shares of each Fund
were reclassified as Series A shares. Effective January 9, 1995,
Institutional shareowners exchanged their Series A shares for the Funds'
Institutional series shares. For the year ended October 31, 1995, the
Financial Highlights ratios of net expenses to average net assets, ratios
of net investment income to average net assets, total return and the per
share income from investment operations and distributions are presented on
a basis whereby the Funds' net investment income, net expenses, net
realized and unrealized gains (losses) and distributions for the period
November 1, 1994, through January 9, 1995, were allocated to each class of
shares based upon the relative net assets of each class of shares as of the
close of business on January 9, 1995, and the results thereof combined with
the results of operations and distributions for each applicable class for
the period January 10, 1995, through October 31, 1995.
<F4> Not annualized for the period ended October 31, 1993, for the Growth Fund,
for the period ended October 31, 1997, for the Emerging Growth Fund, for
the periods ended October 31, 1996 and June 30, 1996, for the MicroCap
Fund, for the period ended October 31, 1994, for the International Equity
Fund, and for the period ended April 30, 1998 for all Funds.
<F5> The total return does not reflect the 4% front-end sales charge for Series
A.
<F6> Annualized for the period ended October 31, 1993, for the Growth Fund, for
the period ended October 31, 1997, for the Emerging Growth Fund, for the
periods ended October 31, 1996 and June 30, 1996, for the MicroCap Fund,
for the period ended October 31, 1994, for the International Equity Fund
and for the period ended April 30, 1998 for all Funds.
<F7> Portfolio turnover and average commission rate paid is calculated on the
basis of the Fund as a whole without distinguishing between the classes of
shares issued.
<F8> Net investment income per share is calculated using ending balances prior
to consideration of adjustments for permanent book and tax differences.
<F9> Effective September 2, 1997, Hansberger Global Investors assumed the
investment sub-advisory responsibilities of State Street Global Advisors.
<F10>Net investment income per share is calculated using the average shares
outstanding.Commencement of operations.
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
SPECIAL GROWTH FUND
--------------------------------------------------------------------------------------------------
Six months ended Year ended Year ended Year ended Year ended
April 30, 1998 October 31, 1997 October 31, 1996 October 31, 1995<F3> October 31,
----------------- -------------------- ----------------- --------------------- ----------------
Series Series Series Series Series Series Series Series
A Inst'l. A Inst'l. A Inst'l. A Inst'l. 1994 1993
------ ------ ------ ------ ------ ----- ------- ------ ------ ------
Per Share Data: (Unaudited)
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $44.36 $44.70 $41.38 $41.58 $41.40 $41.47 $33.19 $33.19 $32.34 $28.50
Income from investment
operations:
Net investment income (0.10)<F10> (0.05)<F10>(0.20)<F8>(0.11)<F8>(0.13)<F8>(0.04) <F8>(0.07) 0.00 0.04 0.07
Net realized and
unrealized gains
(losses) on securities 6.57 6.64 8.44 8.49 4.70 4.74 8.49 8.49 0.85 4.47
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total from investment
operations 6.47 6.59 8.24 8.38 4.57 4.70 8.42 8.49 0.89 4.54
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment income _ _ _ _ _ _ _ _00 (0.04) (0.08)
Distributions from
capital gains (4.46) (4.46) (5.26) (5.26) (4.59) (4.59) (0.21) (0.21) _00 (0.62)
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total distributions (4.46) (4.46) (5.26) (5.26) (4.59) (4.59) (0.21) (0.21) (0.04) (0.70)
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Net asset value,
end of period $46.37 $46.83 $44.36 $44.70 $41.38 $41.58 $41.40 $41.47 $33.19 $32.34
===== ===== ===== ===== ===== ===== ===== ===== ===== =====
Total return <F4><F5> 16.07% 16.23% 22.18% 22.44% 12.27% 12.58% 25.56% 25.79% 2.77% 16.15%
Supplemental data
and ratios:
Net assets, in thousands,
end of period $172,611 $594,220 $147,396 $569,028 $111,159 $482,857 $87,269 $434,228 $395,584$347,130
Ratio of net
expenses to average
net assets <F6> 1.13% 0.88% 1.12% 0.87% 1.13% 0.88% 1.09% 0.90% 0.89% 0.88%
Ratio of net investment
income to average net
assets <F6> (0.48)% (0.23)% (0.50)% (0.25)% (0.35)% (0.10)% (0.19)% 0.00% 0.13% 0.24%
Portfolio turnover
rate <F4><F7> 45.47% 45.47% 97.40% 97.40% 103.34% 103.34% 79.25% 79.25% 69.74% 58.80%
Average commission rate
paid <F7> $0.0514 $0.0514 $0.0550 $0.0550 $0.0576 $0.0576
</TABLE>
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
EMERGING GROWTH FUND
--------------------------------------
Six months August 15, 1997 <F1>
ended through
April 30, 1998 October 31, 1997
----------------- --------------------
Series Series Series Series
A Inst'l. A Inst'l.
------ ------ ------ ------
Per Share Data: (Unaudited)
<C> <C> <C> <C>
Net asset value,
beginning of period $10.31 $10.31 $10.00 $10.00
Income from investment
operations:
Net investment income (0.01)<F10>_<F10> 0.02 0.02
Net realized and
unrealized gains
(losses) on securities 1.43 1.43 0.29 0.29
----- ----- ----- -----
Total from investment
operations 1.42 1.43 0.31 0.31
----- ----- ----- -----
Less distributions:
Dividends from net
investment income (0.02) (0.02) _ _
Distributions from
capital gains (0.05) (0.05) _ _
----- ----- ----- -----
Total distributions (0.07) (0.07) _ _
----- ----- ----- -----
Net asset value,
end of period $11.66 $11.67 $10.31 $10.31
===== ===== ===== =====
Total return <F4><F5> 13.94% 14.08% 3.10% 3.10%
Supplemental data
and ratios:
Net assets, in thousands,
end of period $10,598 $66,586 $5,355 $48,044
Ratio of net
expenses to average
net assets <F6> 1.15% 0.90% 1.15% 0.90%
Ratio of net investment
income to average net
assets <F6> (0.20)% 0.05% 0.93% 1.18%
Portfolio turnover
rate <F4><F7> 58.07% 58.07% 14.51% 14.51%
Average commission rate
paid <F7> $0.0491 $0.0491 $0.0493 $0.0493
</TABLE>
<F1> Commencement of operations.
<F2> Effective June 17, 1993, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F3> On January 9, 1995, all previously existing series of shares of each Fund
were reclassified as Series A shares. Effective January 9, 1995,
Institutional shareowners exchanged their Series A shares for the Funds'
Institutional series shares. For the year ended October 31, 1995, the
Financial Highlights ratios of net expenses to average net assets, ratios
of net investment income to average net assets, total return and the per
share income from investment operations and distributions are presented on
a basis whereby the Funds' net investment income, net expenses, net
realized and unrealized gains (losses) and distributions for the period
November 1, 1994, through January 9, 1995, were allocated to each class of
shares based upon the relative net assets of each class of shares as of the
close of business on January 9, 1995, and the results thereof combined with
the results of operations and distributions for each applicable class for
the period January 10, 1995, through October 31, 1995.
<F4> Not annualized for the period ended October 31, 1993, for the Growth Fund,
for the period ended October 31, 1997, for the Emerging Growth Fund, for
the periods ended October 31, 1996 and June 30, 1996, for the MicroCap
Fund, for the period ended October 31, 1994, for the International Equity
Fund, and for the period ended April 30, 1998 for all Funds.
<F5> The total return does not reflect the 4% front-end sales charge for Series
A.
<F6> Annualized for the period ended October 31, 1993, for the Growth Fund, for
the period ended October 31, 1997, for the Emerging Growth Fund, for the
periods ended October 31, 1996 and June 30, 1996, for the MicroCap Fund,
for the period ended October 31, 1994, for the International Equity Fund
and for the period ended April 30, 1998 for all Funds.
<F7> Portfolio turnover and average commission rate paid is calculated on the
basis of the Fund as a whole without distinguishing between the classes of
shares issued.
<F8> Net investment income per share is calculated using ending balances prior
to consideration of adjustments for permanent book and tax differences.
<F9> Effective September 2, 1997, Hansberger Global Investors assumed the
investment sub-advisory responsibilities of State Street Global Advisors.
<F10>Net investment income per share is calculated using the average shares
outstanding.Commencement of operations.
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
MICROCAP FUND
-----------------------------------------------------------------------------
Six months Year July 1, 1996 August 1, 1995<F1>
ended ended through through
April 30, 1998 October 31, 1997 October 31, 1996 June 30, 1996
----------------- -------------------- ----------------- ---------------------
Series Series Series Series Series Series Series Series
A Inst'l. A Inst'l. A Inst'l. A Inst'l.
------ ------ ------ ------ ------ ----- ------- ------
Per Share Data: (Unaudited)
<C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $17.47 $17.57 $16.16 $16.20 $ 15.42 $ 15.45 $ 10.00 $ 10.00
Income from investment
operations:
Net investment income (0.14)<F10>(0.12) <F10>(0.18) <F8>(0.15) <F8>(0.08) <F8>(0.07) <F8>(0.02)(0.02)
Net realized and
unrealized gains
(losses) on securities 3.10 3.12 4.24 4.27 0.82 0.82 6.10 6.14
----- ----- ----- ----- ----- ----- ----- -----
Total from investment
operations 2.96 3.00 4.06 4.12 0.74 0.75 6.08 6.12
----- ----- ----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment income _ _ _ _ _ _ (0.04) (0.05)00
Distributions from
capital gains (1.67) (1.67) (2.75) (2.75) _ _ (0.62) (0.62)
----- ----- ----- ----- ----- ----- ----- -----
Total distributions (1.67) (1.67) (2.75) (2.75) _ _ (0.66) (0.67)
----- ----- ----- ----- ----- ----- ----- -----
Net asset value,
end of period $18.76 $18.90 $17.47 $17.57 $ 16.16 $ 16.20 $ 15.42 $ 15.45
===== ===== ===== ===== ===== ===== ===== =====
Total return <F4><F5> 18.63% 18.77% 29.78% 30.12% 4.80% 4.85% 63.52% 63.93%
Supplemental data
and ratios:
Net assets, in thousands,
end of period $18,772 $116,580 $16,793 $103,840 $ 9,273 $66,368 $9,036 $ 63,595
Ratio of net
expenses to average
net assets <F6> 1.98% 1.73% 1.95% 1.70% 1.97% 1.72% 1.99% 1.74%
Ratio of net investment
income to average net
assets <F6> (1.79)% (1.54)% (1.42)% (1.21)% (1.69)% (1.44)% (0.36)% (0.16)%
Portfolio turnover
rate <F4><F7> 74.11% 74.11% 158.39% 158.39% 64.44% 64.44% 283.67% 283.67%
Average commission rate
paid <F7> $0.0515 $0.0515 $0.0475 $0.0475 $0.0460 $0.0460 $ 0.0423 $ 0.0423
</TABLE>
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------------------------
Six months ended Year ended Year ended Year ended April 28, 1994<F1>
April 30, 1998 October 31, 1997<F9> October 31, 1996 October 31, 1995<F3> through
----------------- -------------------- ----------------- ---------------------
Series Series Series Series Series Series Series Series October 31,
A Inst'l. A Inst'l. A Inst'l. A Inst'l. 1994
------ ------ ------ ------ ------ ----- ------- ------ ------
Per Share Data: (Unaudited)
<C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $18.58 $18.64 $20.21 $20.27 $19.15 $19.19 $19.99 $19.99 $20.00
Income from investment
operations:
Net investment income 0.06 0.08 0.06<F8> 0.10<F8> 0.07<F8> 0.11<F8> 0.08 0.12 0.04
Net realized and
unrealized gains
(losses) on securities 1.33 1.33 (1.10) (1.10) 1.43 1.44 (0.87) (0.87) (0.05)
----- ----- ----- ----- ----- ----- ----- ----- -----
Total from investment
operations 1.39 1.41 (1.04) (1.00) 1.50 1.55 (0.79) (0.75) (0.01)
----- ----- ----- ----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment income (0.08) (0.09) (0.13) (0.17) (0.07) (0.10) (0.04) (0.04) _
Distributions from
capital gains (0.37) (0.37) (0.46) (0.46) (0.37) (0.37 (0.01) (0.01) _
----- ----- ----- ----- ----- ----- ----- ----- -----
Total distributions (0.45) (0.46) (0.59) (0.63) (0.44) (0.47) (0.05) (0.05) _
----- ----- ----- ----- ----- ----- ----- ----- -----
Net asset value,
end of period $19.52 $19.59 $18.58 $18.64 $20.21 $20.27 $19.15 $19.19 $19.99
===== ===== ===== ===== ===== ===== ===== ===== =====
Total return <F4><F5> 7.81% 7.88% (5.30)% (5.10)% 7.95% 8.21% (3.95)% (3.75)% (0.05)%
Supplemental data
and ratios:
Net assets, in thousands,
end of period $7,910 $66,403 $6,502 $57,206 $3,769 $43,182 $1,633 $31,187 $23,756
Ratio of net
expenses to average
net assets <F6> 1.75% 1.50% 1.75% 1.50% 1.75% 1.50% 1.70% 1.50% 1.49%
Ratio of net investment
income to average net
assets <F6> 0.72% 0.97% (0.55)% (0.30)% 0.37% 0.62% 0.46% 0.66% 0.44%
Portfolio turnover
rate <F4><F7> 18.98% 18.98% 97.09% 97.09% 31.57% 31.57% 15.12% 15.12% 6.55%
Average commission rate
paid <F7> $0.0159 $0.0159 $0.0087 $0.0087 $0.0167 $0.0167
</TABLE>
<F1> Commencement of operations.
<F2> Effective June 17, 1993, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F3> On January 9, 1995, all previously existing series of shares of each Fund
were reclassified as Series A shares. Effective January 9, 1995,
Institutional shareowners exchanged their Series A shares for the Funds'
Institutional series shares. For the year ended October 31, 1995, the
Financial Highlights ratios of net expenses to average net assets, ratios
of net investment income to average net assets, total return and the per
share income from investment operations and distributions are presented on
a basis whereby the Funds' net investment income, net expenses, net
realized and unrealized gains (losses) and distributions for the period
November 1, 1994, through January 9, 1995, were allocated to each class of
shares based upon the relative net assets of each class of shares as of the
close of business on January 9, 1995, and the results thereof combined with
the results of operations and distributions for each applicable class for
the period January 10, 1995, through October 31, 1995.
<F4> Not annualized for the period ended October 31, 1993, for the Growth Fund,
for the period ended October 31, 1997, for the Emerging Growth Fund, for
the periods ended October 31, 1996 and June 30, 1996, for the MicroCap
Fund, for the period ended October 31, 1994, for the International Equity
Fund, and for the period ended April 30, 1998 for all Funds.
<F5> The total return does not reflect the 4% front-end sales charge for Series
A.
<F6> Annualized for the period ended October 31, 1993, for the Growth Fund, for
the period ended October 31, 1997, for the Emerging Growth Fund, for the
periods ended October 31, 1996 and June 30, 1996, for the MicroCap Fund,
for the period ended October 31, 1994, for the International Equity Fund
and for the period ended April 30, 1998 for all Funds.
<F7> Portfolio turnover and average commission rate paid is calculated on the
basis of the Fund as a whole without distinguishing between the classes of
shares issued.
<F8> Net investment income per share is calculated using ending balances prior
to consideration of adjustments for permanent book and tax differences.
<F9> Effective September 2, 1997, Hansberger Global Investors assumed the
investment sub-advisory responsibilities of State Street Global Advisors.
<F10>Net investment income per share is calculated using the average shares
outstanding.Commencement of operations.
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
SIX MONTHS ENDED APRIL 30, 1998
(UNAUDITED) BALANCED GROWTH EQUITY
GROWTH AND INCOME INDEX GROWTH
FUND FUND FUND FUND
--------- --------- --------- ---------
<C> <C> <C> <C>
INVESTMENT INCOME:
Dividend income:
Domestic $ 300 $ 4,279 $ 3,294 $ 586
Foreign (net of
withholding taxes of $84) _ _ _ _
Interest income:
Domestic 2,892 1,029 798 496
Foreign _ _ _ _
Other income: _ _ 6 2
3,192 5,308 4,098 1,084
EXPENSES:
Investment advisory fees 828 2,094 571 806
Administration fees 122 309 252 119
Shareowner servicing
and accounting costs 63 102 79 50
Service organization fees _ Series A 63 186 111 36
Custody fees 35 50 49 25
Federal and state registration fees 12 32 16 9
Professional fees 13 13 13 12
Reports to shareowners 18 42 28 10
Amortization of organization costs _ _ _ _
Directors' fees and expenses 4 4 4 4
Other 3 9 7 3
Total expenses before waiver 1,161 2,841 1,130 1,074
Less: Waiver of expenses (270) (207) (169) (80)
Net Expenses 891 2,634 961 994
NET INVESTMENT INCOME 2,301 2,674 3,137 90
REALIZED AND UNREALIZED GAIN:
Net realized gain on:
Investments 6,617 23,870 4,316 17,766
Foreign currency _ _ _ _
Change in unrealized
appreciation on:
Investments 19,372 89,776 84,860 26,792
Foreign currency _ _ _ _
Net gain on investments
and foreign currency 25,989 113,646 89,176 44,558
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $28,290 $116,320 $92,313 $44,648
</TABLE>
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
SIX MONTHS ENDED APRIL 30, 1998
(UNAUDITED)
SPECIAL EMERGING INTERNATIONAL
GROWTH GROWTH MICROCAP EQUITY
FUND FUND FUND FUND
--------- --------- --------- ---------
<C> <C> <C> <C>
INVESTMENT INCOME:
Dividend income:
Domestic $ 1,020 $ 106 $ 49 _
Foreign (net of
withholding taxes of $84) _ _ _ $ 742
Interest income:
Domestic 1,264 189 62 _
Foreign _ _ _ 59
Other income: 51 _ _ _
2,335 295 111 801
EXPENSES:
Investment advisory fees 2,700 234 883 435
Administration fees 398 34 65 36
Shareowner servicing
and accounting costs 141 42 48 65
Service organization
fees _ Series A 193 9 20 9
Custody fees 82 15 24 79
Federal and state
registration fees 24 11 4 13
Professional fees 14 13 13 16
Reports to shareowners 58 12 21 4
Amortization of
organization costs _ 3 2 3
Directors' fees and expenses 4 4 3 4
Other 9 2 2 1
Total expenses before waiver 3,623 379 1,085 665
Less: Waiver of expenses (267) (90) (44) (171)
Net Expenses 3,356 289 1,041 494
NET INVESTMENT INCOME (LOSS) (1,021) 6 (930) 307
REALIZED AND UNREALIZED
GAIN (LOSS):
Net realized gain (loss) on:
Investments 20,540 1,411 17,375 (211)
Foreign currency _ _ _ (76)
Change in unrealized
appreciation
(depreciation) on:
Investments 90,219 7,824 5,223 5,340
Foreign currency _ _ _ (26)
Net gain on investments
and foreign currency 110,759 9,235 22,598 5,027
NET Increase IN NET Assets
RESULTING FROM OPERATIONS $109,738 $9,241 $21,668 $5,334
</TABLE>
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ----------------
COMMON STOCKS 59.9%
AEROSPACE & AIRCRAFT 0.7%
39,300 Gulfstream Aerospace Corporation <F1> $1,648
AIR TRANSPORTATION 0.5%
16,900 FDX Corporation <F1> 1,149
AUTO & TRUCK 0.0%
1,200 Applied Power, Inc. - Class A 45
--------
BANKING 1.1%
5,875 Charter One Financial, Inc. 398
15,600 First Union Corporation 942
500 Peoples Heritage Financial Group, Inc. 24
18,400 Washington Mutual, Inc. 1,289
--------
2,653
--------
BUILDING MATERIALS 0.3%
21,600 Royal Group Technologies Ltd. <F1> 671
--------
BUSINESS MACHINES & SOFTWARE 2.5%
45,600 Cadence Design Systems, Inc. <F1> 1,656
2,900 Computer Associates International, Inc. 170
1,700 Digi International, Inc. <F1> 45
3,800 HNC Software, Inc. <F1> 148
1,700 Harbinger Corporation<F1> 62
10,000 Hypercom Corporation<F1> 130
5,150 National Instruments Corporation <F1> 183
21,300 Network Associates, Inc. <F1> 1,459
15,000 Parametric Technology Company<F1> 479
18,700 Sterling Commerce, Inc. <F1> 796
22,200 Synopsys, Inc. <F1> 955
--------
6,083
--------
BUSINESS SERVICES 7.1%
9,900 ABR Information Services, Inc. <F1> 286
25,792 AccuStaff, Inc. <F1> 925
4,400 American Business Information, Inc. - Class A <F1> 59
3,600 American Business Information, Inc. - Class B <F1> 51
1,700 Catalina Marketing Corporation<F1> 88
500 Central Parking Corporation 23
20,700 Cambridge Technology Partners, Inc. <F1> 1,082
24,000 Ciber, Inc. <F1> 780
24,800 Cintas Corporation 1,181
25,800 Cognizant Corporation 1,327
37,000 Concord EFS, Inc. <F1> 1,166
8,700 First Data Corporation 295
21,325 FIserv, Inc. <F1> 1,394
13,400 F.Y.I. Incorporated <F1> 365
4,400 Gartner Group, Inc. <F1> 146
4,400 Manpower, Inc. 194
11,100 Mastech Corporation <F1> 294
24,900 May & Speh, Inc. <F1> 370
Number Market Value
of Shares (in thousands)
- ----------- ---------------
BUSINESS SERVICES 7.1% (CONT.)
11,700 National Data Corporation $ 478
7,200 Nova Corporation<F1> 245
52,900 Pittston Brink's Group 2,070
8,200 PMT Services, Inc. <F1> 160
21,350 Robert Half International, Inc. <F1> 1,156
5,900 Sabre Group Holdings, Inc. v 215
80,900 SunGard Data Systems, Inc. 2,882
17,100 Sykes Enterprises, Inc. <F1> 359
--------
17,591
--------
CHEMICALS 0.8%
11,900 Du pont (E.I.) De Nemours and Company 866
26,400 Sigma-Aldrich Corporation 1,053
--------
1,919
--------
COMMUNICATIONS & MEDIA 1.1%
4,500 Ha-Lo Industries, Inc. <F1> 151
30,500 Interpublic Group of Companies, Inc. 1,948
15,600 Omnicom Group, Inc. 739
--------
2,838
--------
COMPUTERS 1.3%
3,400 Black Box Corporation<F1> 113
8,800 CDW Computer Centers, Inc. <F1> 427
4,100 Compaq Computer Corporation 115
7,400 Dell Computer Corporation <F1> 598
37,800 Tech Data Corporation<F1> 1,885
--------
3,138
--------
CONSTRUCTION 0.1%
3,600 D.R. Horton, Inc. 67
8,000 Granite Construction, Inc. 236
1,200 Standard Pacific Corporation 20
--------
323
--------
CONSUMER PRODUCTS 0.4%
20,200 Newell Company 976
--------
DATA PROCESSING 0.6%
34,800 Acxiom Corporation <F1> 844
7,500 CCC Information Systems Group Inc. <F1> 180
9,100 CSG Systems International, Inc. <F1> 414
5,400 National Computer Systems, Inc. 135
--------
1,573
--------
DRUGS/MEDICAL SUPPLIES 2.2%
7,300 Barr Laboratories, Inc. <F1> 296
11,400 Elan Corporation PLC ADR <F1> 708
12,000 Merck & Co., Inc. 1,446
11,500 Warner-Lambert Company 2,176
17,300 Watson Pharmaceuticals, Inc. <F1> 744
--------
5,370
--------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
ELECTRONICS & SCIENTIFIC INSTRUMENTS 1.2%
19,950 Cisco Systems, Inc. <F1> $ 1,461
3,100 Gemstar International Group Limited <F1> 120
8,700 Hewlett-Packard Company 655
18,310 Molex, Inc. - Class A 492
1,800 Plexus Corporation<F1> 40
2,600 Seitel, Inc. <F1> 44
5,000 Thermo Instrument Systems Inc. <F1> 148
--------
2,960
--------
ENTERTAINMENT & LEISURE 1.0%
35,900 American Skiing Company<F1> 556
6,000 Cinar Films Inc. - Class B <F1> 116
6,200 Hasbro, Inc. 228
4,900 Imax Corporation<F1> 134
3,500 Scientific Games Holdings Corporation<F1> 78
1,800 Signature Resorts, Inc. <F1> 32
3,900 Steiner Leisure Ltd. <F1> 123
9,500 The Walt Disney Company 1,181
--------
2,448
--------
FINANCIAL SERVICES 4.9%
9,300 ARM Financial Group, Inc. - Class A 199
10,900 Associates First Capital Corporation 815
200 BancTec, Inc. <F1> 4
8,400 The BISYS Group, Inc. <F1> 332
3,700 CMAC Investment Corporation 239
48,700 E*TRADE Group, Inc. <F1> 1,214
16,800 Federal National Mortgage Association 1,006
5,200 Financial Security Assurance Holdings Ltd. 311
18,200 Franklin Resources, Inc. 974
3,100 Heller Financial, Inc. <F1> 84
9,400 Kansas City Southern Industries, Inc. 425
35,900 MBNA Corporation 1,216
2,000 Medallion Financial Corp. 60
2,800 Newcourt Credit Group, Inc. 138
51,400 The Charles Schwab Corporation 1,799
2,500 SEI Investments Company 185
11,300 State Street Corporation 808
21,450 SunAmerica, Inc. 1,071
4,400 T. Rowe Price Associates, Inc. 332
14,550 Travelers Group, Inc. 890
--------
12,102
--------
HEALTH CARE SERVICES & SUPPLIES 5.4%
7,350 Cardinal Health, Inc. 707
3,700 Cooper Companies, Inc. <F1> 142
3,400 First Health Group Corporation<F1> 201
32,100 Graham-Field Health Products, Inc. <F1> 213
29,350 Health Care & Retirement Corporation <F1> 1,196
60,502 Health Management Associates, Inc. - Class A <F1> 1,906
27,300 Healthsouth Corporation 824
26,100 Lincare Holdings, Inc. <F1> 2,117
8,300 Medtronic, Inc. 437
FIRSTAR FUNDS
(LOGO)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
HEALTH CARE SERVICES & SUPPLIES 5.4% (CONT.)
9,700 Mentor Corporation $ 264
40,700 PhyCor, Inc. <F1> 926
6,325 PSS World Medical, Inc. <F1> 143
25,250 Quorum Health Group, Inc. <F1> 811
21,300 Rural/Metro Corporation <F1> 692
10,700 Henry Schein, Inc. <F1> 417
19,500 Shared Medical Systems Corporation 1,422
9,200 Universal Health Services, Inc. - Class B<F1> 530
9,900 Vencor, Inc. <F1> 268
4,800 Weider Nutrition International, Inc. 68
--------
13,284
--------
HOSPITAL SUPPLIES & SERVICES 0.4%
8,300 Ballard Medical Products 209
10,100 Boston Scientific Corporation <F1> 730
4,600 Omnicare, Inc. 158
--------
1,097
--------
HOUSING 0.4%
34,600 Toll Brothers, Inc. <F1> 964
--------
INDUSTRIAL DISTRIBUTION 0.2%
700 Aviation Sales Company<F1> 25
4,000 Barnett, Inc. <F1> 81
600 Fastenal Company 34
5,900 MSC Industrial Direct Co., Inc. - Class A <F1> 300
--------
440
INSURANCE 6.0%
12,750 AFLAC, Inc. 829
34,800 AMBAC, Inc. 1,973
3,000 Annuity and Life Re (Holdings), Ltd. <F1> 72
26,500 Chartwell Re Corporation 817
3,070 Delphi Financial Group, Inc. <F1> 175
11,600 Enhance Financial Services Group, Inc. 796
5,300 Executive Risk Incorporated 353
28,200 MBIA, Inc. 2,104
42,300 MGIC Investment Corporation 2,666
63,000 Protective Life Corporation 2,339
29,700 ReliaStar Financial Corporation 1,355
8,500 Terra Nova (Bermuda) Holdings Ltd. 260
13,300 United Wisconsin Services, Inc. 413
13,100 Vesta Insurance Group, Inc. 742
--------
14,894
--------
LODGING 0.4%
21,090 Promus Hotel Corporation <F1> 953
--------
MEDICAL INSTRUMENTS 0.3%
2,500 Physio-Control International Corporation <F1> 57
7,900 Sofamor Danek Group, Inc. <F1> 693
--------
750
--------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
MULTI-INDUSTRY 2.3%
16,700 Leggett & Platt, Inc. $ 867
22,150 Thermo Electron Corporation <F1> 882
69,900 Tyco International, Ltd. 3,810
--------
5,559
--------
NATURAL GAS 0.4%
21,500 Enron Corporation 1,058
--------
OIL & GAS - DOMESTIC 0.4%
9,600 Barrett Resources Corporation<F1> 356
2,100 Cabot Oil & Gas Corporation 49
13,700 Denbury Resources, Inc. <F1> 229
25,500 Forest Oil Corporation<F1> 398
--------
1,032
--------
OIL & GAS - SERVICES 1.3%
9,500 Halliburton Company 523
43,500 Newpark Resources, Inc. <F1> 1,047
14,300 Schlumberger, Ltd. 1,185
24,770 Swift Energy Company <F1> 494
--------
3,249
--------
POLLUTION CONTROL 0.6%
4,543 Philip Services Corp. <F1> 35
20,000 Tetra Technologies, Inc. <F1> 479
17,200 USA Waste Services, Inc. <F1> 844
--------
1,358
--------
REAL ESTATE INVESTMENT TRUSTS (REIT'S) 0.2%
13,400 Golf Trust of America, Inc. 437
--------
RESTAURANTS 0.0%
1,100 Papa John's International, Inc. <F1> 46
--------
RETAIL 6.0%
29,700 Bed Bath and Beyond, Inc. <F1> 1,463
500 Byrlane, Inc. <F1> 29
24,800 Costco Companies, Inc. <F1> 1,386
48,046 Dollar General Corporation 1,820
32,800 Eagle Hardware & Garden, Inc. <F1> 598
22,900 Federated Department Stores, Inc. <F1> 1,126
69,700 Food Lion, Inc. - Class A 706
26,800 General Nutrition Companies, Inc. <F1> 962
21,700 Goody's Family Clothing, Inc. <F1> 1,075
7,800 Home Depot, Inc. 543
700 Hughes Supply, Inc. 27
10,700 The Men's Wearhouse, Inc. <F1> 451
14,800 Office Depot, Inc. <F1> 490
21,200 Petco Animal Supplies, Inc. <F1> 419
31,600 Pier 1 Imports, Inc. 833
11,800 Ross Stores, Inc. 545
25,400 Safeway, Inc. <F1> 971
24,800 Staples, Inc. <F1> 612
Number Market Value
of Shares (in thousands)
- ----------- ---------------
RETAIL 6.0% (CONT.)
19,900 Stein Mart, Inc. <F1> $ 701
--------
14,757
--------
SCHOOLS 0.4%
13,800 Apollo Group, Inc. <F1> 473
12,000 Computer Learning Centers, Inc. <F1> 145
7,300 Sylvan Learning Systems, Inc. <F1> 360
--------
978
--------
SECURITY SERVICES 0.4%
27,500 Corrections Corporation of America <F1> 763
1,000 The Wackenhut Corporation - Class A 24
6,500 Wackenhut Corrections Corporation<F1> 170
--------
957
--------
SEMICONDUCTORS 1.0%
10,900 Intel Corporation 881
41,600 Maxim Integrated Products, Inc. <F1> 1,680
--------
2,561
--------
SHIPBUILDING 0.1%
10,500 Avondale Industries, Inc. <F1> 282
--------
SOFTWARE 1.0%
18,000 Avant! Corporation<F1> 522
2,000 Axent Technologies, Inc. <F1> 52
6,600 Electronic Arts, Inc.* 305
4,100 Hyperion Software Corporation<F1> 178
2,600 JDA Software Group, Inc. <F1> 131
9,500 Microsoft Corporation <F1> 856
15,300 Software AG Systems, Inc. <F1> 379
--------
2,423
--------
TELECOMMUNICATIONS 1.6%
55,000 Cincinnati Bell, Inc. 2,104
34,500 MCI Communications Corporation 1,736
--------
3,840
--------
TELECOMMUNICATIONS EQUIPMENT 2.1%
14,700 Advanced Fibre Communications, Inc. <F1> 623
22,500 CIENA Corporation <F1> 1,254
13,100 ECI Telecommunications Limited Designs 399
22,200 Lucent Technologies, Inc. 1,690
13,100 Tellabs, Inc. <F1> 928
4,900 World Access, Inc. <F1> 189
--------
5,083
--------
Textiles & Apparel 1.7%
5,500 Columbia Sportswear Company<F1> 117
29,100 Jones Apparel Group, Inc. <F1> 1,741
14,900 Liz Claiborne, Inc. 733
29,000 Polo Ralph Lauren Corporation <F1> 816
24,000 Wolverine World Wide, Inc. 693
--------
4,100
--------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
TRANSPORTATION 0.8%
55,300 Harley-Davidson, Inc. $ 1,991
--------
TRAVEL & RECREATION 0.7%
25,600 Carnival Corporation - Class A 1,781
--------
Total Common Stocks (Cost $96,433) 147,361
--------
PREFERRED STOCK 0.1%
INSURANCE 0.1%
5,000 U.S. West Communications Group (convertible to 293
--------
Enhance Financial Services
Group common stock)
Total Preferred Stock (Cost $203) 293
--------
Principal
Amount
(in thousands)
- ---------------
LONG-TERM INVESTMENTS 33.6%
ASSET-BACKED SECURITIES 5.3%
AUTO LOAN RECEIVABLES 0.1%
Premier Auto Trust,
$ 76 Series 1993-5, Class A2, 4.22%, 3/02/99 76
Western Financial Grantor Trust,
159 Series 1995-2, Class A-1, 7.10%, 7/01/00 160
--------
236
--------
CREDIT CARD RECEIVABLES 5.2%
Banc One Credit Card Master Trust,
1,750 Series 1995-B, Class A, 6.30%, 9/15/00 1,767
Chase Credit Card Master Trust,
2,300 Series 1995-2, Class XX, 6.23%, 6/15/03 2,319
Chemical Master Credit Card Trust I,
500 Series 1996-1, Class A, 5.55%, 9/15/03 496
Citibank Credit Card Master Trust, Principal Only,
3,300 Series 1996-1, 0.00%, 2/07/01 2,804
First Chicago Master Trust II,
1,150 Series 1994-L, Class A, 7.15%, 2/15/00 1,165
Household Affinity Credit Card Master Trust I,
500 Series 1993-2, Class A, 5.60%, 11/15/00 498
HFC Private Label Credit Card Master Trust II,
292 Series 1994-2, Class A, 7.80%, 9/20/03 295
Sears Credit Account Master Trust:
2,700 Series 1994-1, Class A, 7.00%, 8/15/00 2,735
700 Series 1995-2, Class A, 8.10%, 1/15/01 723
--------
12,802
--------
CORPORATE BONDS 9.1%
Atlantic Richfield Co. Debentures,
300 8.50%, 4/01/12 360
BankAmerica Corporation Subordinated Notes,
350 7.75%, 7/15/02 369
Barclays American Corp. Debentures,
250 9.75%, 5/15/21 283
Chase Manhattan Corporation Debentures,
250 10.00%, 6/15/99 261
Principal
Amount Market Value
(in thousands) (in thousands)
- --------------- ---------------
CORPORATE BONDS 9.1% (CONT.)
Commonwealth Edison Debentures,
$ 900 9.875%, 6/15/20 $1,054
Continental Bank Subordinated Notes,
300 12.50%, 4/01/01 348
Continental Cablevision, Inc. Debentures:
350 8.875%, 9/15/05 394
600 9.50%, 8/01/13 703
Dayton Hudson Corporation Debentures,
250 10.00%, 1/01/11 323
Deseret Generation & Transmission Coop
194 Debentures, 9.375%, 1/02/11 202
Dresdner Bank New York Subordinated Debentures,
800 7.25%, 9/15/15 829
Federal Express Corporation Debentures,
250 9.625%, 10/15/19 268
Federal Express Corporation Notes,
500 9.65%, 6/15/12 643
Ford Capital BV Notes,
250 10.125%, 11/15/00 273
Ford Motor Credit Co. Notes,
650 6.375%, 4/15/00 653
General Motors Acceptance Corp. Medium Term Notes,
1,000 6.70%, 4/30/01 1,014
Georgia Pacific Corporation Debentures:
300 9.50%, 12/01/11 368
300 9.875%, 11/01/21 334
100 9.50%, 5/15/22 114
Goldman Sachs Group Notes,
1,500 6.25%, 2/01/03 (Acquired 2/01/96;
Cost $1,496) <F2> 1,493
GTE Corporation Debentures,
250 10.25%, 11/01/20 280
Heller Financial, Inc. Notes,
350 7.875%, 11/01/99 358
Household Finance Corporation Limited Senior
1,000 Notes, 7.125%, 4/30/99 1,011
Household Finance Corporation Senior Subordinated
500 Notes, 9.625%, 7/15/00 534
Lehman Brothers Holdings, Inc. Notes:
350 6.65%, 11/08/99 354
300 8.875%, 2/15/00 314
Lehman Brothers, Inc. Debentures,
700 9.875%, 10/15/00 756
Lehman Brothers, Inc. Senior Subordinated Notes,
700 10.00%, 5/15/99 727
The May Department Stores Company Debentures,
300 9.875%, 6/15/21 342
NCNB Corporation Subordinated Notes,
750 10.20%, 7/15/15 1,004
News America Holdings, Inc., Debentures,
300 10.125%, 10/15/12 354
Oneok, Inc. Debentures,
400 9.70%, 12/01/19 434
See notes to the financial statements.
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Principal
Amount Market Value
(in thousands) (in thousands)
- --------------- ---------------
CORPORATE BONDS 9.1% (CONT.)
Paine Webber Group Notes,
$500 8.875%, 3/15/05 $ 562
J.C. Penney Company, Inc. Debentures,
625 9.75%, 6/15/21 696
Rochester Telephone Debentures,
400 9.00%, 8/15/21 442
Rohm & Haas, Debentures,
650 9.50%, 4/01/21 738
Salomon, Inc. Senior Notes:
350 7.75%, 5/15/00 360
575 6.75%, 2/15/03 584
Salomon Smith Barney Holdings, Inc. Notes,
700 6.875%, 6/15/05 713
The Charles Schwab Corporation Medium
550 Term Notes, 5.90%, 10/01/99 549
Tenneco, Inc. Debentures,
425 7.45%, 12/15/25 445
U.S. West Communications Group Debentures,
575 8.875%, 6/01/31 636
--------
22,479
--------
MORTGAGE-BACKED SECURITIES 0.4%
Westam Mortgage Financial Corporation,
850 Series 11, Class A, 6.36%, 8/26/20 869
--------
INTERNATIONAL/YANKEE (U.S. $ DENOMINATED) 1.9%
Hydro-Quebec Debentures:
350 11.75%, 2/01/12 509
500 9.75%, 1/15/18 566
Korea Development Bank Bonds,
285 7.125%, 9/17/01 269
Korea Electric Power Debentures:
290 7.75%, 4/01/13 250
200 6.75%, 8/01/27 175
Midland Bank PLC Subordinated Notes,
950 6.95%, 3/15/11 963
National Bank of Hungary Debentures,
250 8.875%, 11/01/13 289
Norsk Hydro A/S Debentures,
350 9.00%, 4/15/12 422
Pohang Iron & Steel Notes,
200 7.125%, 7/15/04 177
Quebec (Province of) Debentures,
250 11.00%, 6/15/15 282
Sweden (Kingdom of) Debentures,
150 11.125%, 6/01/15 222
Wharf Capital International Ltd. Notes:
325 8.875%, 11/01/04 315
225 7.625%, 3/13/07 195
--------
4,634
--------
Principal
Amount Market Value
(in thousands) (in thousands)
- --------------- ---------------
U.S. GOVERNMENT AGENCY-BACKED MORTGAGE ISSUES 1.8%
Federal Home Loan Mortgage Corporation (FHLMC)
Real Estate Mortgage Investment Conduit (REMIC):
$ 569 Series 85, Class C, 8.60%, 1/15/21 $ 590
790 Series 1169, Class D, 7.00%, 5/15/21 797
800 Series 1136, Class H, 6.00%, 9/15/21 791
665 Series 1201, Class E, 7.40%, 12/15/21 676
Federal National Mortgage Association (FNMA)
Real Estate Mortgage Investment Conduit (REMIC):
577 Series 1989-37, Class XX, 8.00%, 7/25/19 596
538 Series 1990-30, Class E, 6.50%, 3/25/20 539
548 Series 1990-105, Class J, 6.50%, 9/25/20 547
--------
4,536
--------
U.S. TREASURY OBLIGATIONS 15.1%
U.S. Treasury Bonds:
3,200 10.75%, 2/15/03 3,867
3,975 10.75%, 8/15/05 5,138
20,910 9.25%, 2/15/16 28,255
--------
37,260
--------
Total Long-Term Investments (Cost $79,501) 82,816
--------
Number
of Shares
(in thousands)
- ---------------
SHORT-TERM INVESTMENTS 4.9%
Investment Companies 2.9%
10 Financial Square Prime Obligation Fund 10
7,078 Short-Term Investments Co.
Liquid Assets Portfolio 7,078
--------
7,088
--------
Principal
Amount
(in thousands)
- ---------------
VARIABLE RATE DEMAND NOTES 2.0%
$5,000 Warner-Lambert Co. 5,000
--------
Total Short-Term Investments (Cost $12,088) 12,088
--------
Total Investments (Cost $188,225) 98.5% 242,558
--------
Other Assets, less Liabilities 1.5% 3,677
--------
TOTAL NET ASSETS 100.0% $246,235
========
<F1> Non-income producing
<F2> Unregistered Security
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
COMMON STOCKS 86.4%
Automotive Supply 0.8%
123,000 Snap-On Tools, Inc. $ 5,204
--------
BANKING 6.3%
202,300 Bank of New York 11,948
100,000 Mellon Bank Corporation 7,200
133,300 Northern Trust Corporation 9,731
292,200 Norwest Corporation 11,597
--------
40,476
--------
BUILDING MATERIALS 0.7%
97,700 Martin Marietta Materials, Inc. 4,586
--------
BUSINESS MACHINES & SOFTWARE 4.1%
209,400 Diebold, Inc. 8,585
159,500 Xerox Corporation 18,103
--------
26,688
--------
BUSINESS SERVICES 1.8%
85,500 Automatic Data Processing, Inc. 5,723
128,400 H & R Block, Inc. 5,778
--------
11,501
--------
CHEMICALS 4.5%
108,900 BetzDearborn, Inc. 5,840
200,200 Ecolab, Inc. 6,344
67,925 Dupont (E.I.) De Nemours & Company 4,946
64,600 Monsanto Company 3,416
95,750 Praxair, Inc. 4,817
87,900 Valspar Corporation 3,505
--------
28,868
--------
COMMUNICATIONS & MEDIA 4.1%
257,450 Interpublic Group of Companies, Inc. 16,445
139,600 New York Times Company - Class A 9,903
--------
26,348
--------
CONSUMER PRODUCTS 3.0%
188,000 Avery Dennison Corporation 9,846
196,050 Newell Company 9,472
--------
19,318
--------
CONSUMER SERVICES 1.2%
181,838 Service Corporation International 7,501
--------
CONTAINERS 0.9%
128,400 Bemis Company, Inc. 5,714
--------
Number Market Value
of Shares (in thousands)
- ----------- ---------------
COSMETICS & SOAP 4.3%
91,900 Avon Products, Inc. $ 7,553
100,600 Estee Lauder Companies - Class A 6,684
23,800 Gillette Company 2,747
130,250 Procter & Gamble Company 10,705
--------
27,689
--------
DRUGS & MEDICAL SUPPLY 13.2%
64,100 American Home Products Corporation 5,969
104,300 Baxter International, Inc. 5,782
106,400 Becton, Dickinson & Company 7,408
97,100 Johnson & Johnson 6,931
282,000 McKesson Corporation 19,934
61,500 Medtronic, Inc. 3,236
120,500 Pfizer, Inc. 13,714
97,900 SmithKline Beecham - PLC ADR 5,831
83,000 Warner-Lambert Company 15,703
--------
84,508
--------
ELECTRIC - UTILITIES 1.0%
240,700 NIPSCO Industries, Inc. 6,454
--------
ELECTRICAL EQUIPMENT 1.3%
75,300 Grainger (W.W.), Inc. 8,203
--------
ELECTRONICS 0.7%
54,200 Hewlett-Packard Company 4,082
--------
FINANCIAL SERVICES 5.5%
192,800 Alliance Capital Management L.P. 5,121
251,475 Equifax 9,729
103,300 Federal National Mortgage Association 6,185
62,200 Household International, Inc. 8,175
92,850 Travelers Group, Inc. 5,681
--------
34,891
--------
INSURANCE 3.5%
107,400 MBIA, Inc. 8,015
317,500 ReliaStar Financial Corporation 14,505
--------
22,520
--------
MULTI-INDUSTRY 5.8%
242,100 Dover Corporation 9,563
72,300 Harsco Corporation 3,326
449,600 Tyco International, Ltd. 24,503
--------
37,392
--------
NATURAL GAS 2.0%
144,800 Enron Corporation 7,122
187,000 The Williams Companies, Inc. 5,914
--------
13,036
--------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
OIL - DOMESTIC 0.9%
118,400 Phillips Petroleum Company $ 5,868
--------
OIL - INTERNATIONAL 1.5%
120,450 Mobil Corporation 9,516
--------
OIL & GAS SERVICES 1.2%
95,000 Schlumberger, Ltd. 7,873
--------
PAPER & FOREST PRODUCTS 0.6%
72,500 Kimberly-Clark Corporation 3,679
--------
PRINTING & PUBLISHING 1.6%
40,400 Houghton Mifflin Company 1,316
113,100 McGraw-Hill, Inc. 8,758
--------
10,074
--------
REAL ESTATE INVESTMENT TRUSTS (REIT'S) 3.4%
6,100 Bay Apartments Communities, Inc. 226
107,600 Boston Properties, Inc. 3,558
219,300 CCA Prison Realty Trust 7,771
147,400 Post Properties, Inc. 6,016
185,000 Security Capital Industrial 4,521
--------
22,092
--------
RETAIL 6.8%
131,900 CVS Corporation 9,728
421,000 Gap, Inc. 21,655
67,775 Hannaford Brothers Company 3,012
239,550 Hasbro, Inc. 8,818
17,700 Walgreen Company 611
--------
43,824
--------
TELECOMMUNICATIONS 0.9%
101,600 GTE Corporation 5,937
--------
TELECOMMUNICATIONS EQUIPMENT 1.9%
162,596 Lucent Technologies, Inc. 12,378
--------
TEXTILES & APPAREL 2.1%
94,200 Liz Claiborne, Inc. 4,633
210,000 Warnaco Group - Class A 8,872
--------
13,505
--------
TRANSPORTATION 0.8%
364,600 Laidlaw, Inc. - Class B 5,082
--------
Total Common Stock (Cost $321,141) 554,807
--------
PREFERRED STOCK 2.9%
Financial Services 0.6%
59,400 PLC Capital Trust II (convertible to
Protective Life Corporation common stock) 3,712
--------
Number Market Value
of Shares (in thousands)
- ----------- ---------------
SOFTWARE 0.7%
45,800 MicroSoft Corporation
(convertible to Microsoft Corp. common stock) $ 4,265
--------
TELECOMMUNICATIONS 1.6%
151,400 Salomon, Inc.
(convertible to Cincinnati Bell,
Inc. common stock) 10,390
--------
Total Preferred Stock (Cost $15,917) 18,367
--------
Number
of Shares
(in thousands)
- --------------
LONG-TERM INVESTMENTS 3.0%
CORPORATE CONVERTIBLE BONDS 3.0%
190 DECS Trust II, 6.875%, 11/15/00 (convertible to
Royal Group Technologies common stock) 5,546
91 Merrill Lynch Strypes, 6.50%, 8/15/98 (convertible
to MGIC Investment Corporation common stock) 9,586
Principal
Amount
(in thousands)
- ---------------
$2,900 Federated Department Stores,
5.00%, 10/01/03 (convertible to Federated
Department Stores, Inc. common stock) 4,339
--------
Total Long-Term Investments (Cost $13,085) 19,471
--------
Number
of Shares
(in thousands)
- ---------------
SHORT-TERM INVESTMENTS 8.2%
INVESTMENT COMPANIES 3.5%
10 Financial Square Prime Obligation Fund 10
22,705 Short-Term Investments Co.
Liquid Assets Portfolio 22,705
--------
22,715
--------
Principal
Amount
(in thousands)
- ---------------
VARIABLE RATE DEMAND NOTES 4.7%
$10,000 American Family Insurance 10,000
20,000 Warner-Lambert Co. 20,000
--------
30,000
--------
Total Short-Term Investments (Cost $52,715) 52,715
--------
Total Investments (Cost $402,858) 100.5% 645,360
--------
Liabilities, less Other Assets (0.5)% (3,476)
--------
TOTAL NET ASSETS 100.0% $641,884
========
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
COMMON STOCKS 94.7%
Aerospace & Aircraft 1.9%
34,100 Allied Signal, Inc. $ 1,494
60,326 Boeing Company 3,020
6,400 General Dynamics Corporation 270
11,834 Lockheed Martin Corporation 1,318
3,800 Northrop Grumman Corporation 402
20,900 Raytheon Company 1,185
12,600 Rockwell International Corporation 705
9,300 Textron, Inc. 728
13,600 United Technologies Corporation 1,339
--------
10,461
--------
AIR TRANSPORTATION 0.5%
5,800 AMR Corporation <F1> 884
4,300 Delta Air Lines, Inc. 500
9,500 FDX Corporation <F1> 646
12,700 Southwest Airlines Company 348
5,300 US Airways Group, Inc. <F1> 377
--------
2,755
--------
APPLIANCES 0.2%
3,300 Armstrong World Industries, Inc. 283
5,300 Black & Decker Corporation 274
6,200 Maytag Corporation 319
3,700 Whirlpool Corporation 266
--------
1,142
--------
AUTOS & TRUCKS 1.9%
10,100 Autozone, Inc. <F1> 305
38,750 Chrysler Corporation 1,557
6,600 Dana Corporation 390
4,500 Eaton Corporation 416
3,700 Echlin, Inc. 175
71,800 Ford Motor Company 3,289
42,400 General Motors Corporation 2,857
11,237 Genuine Parts Company 405
5,600 ITT Industries, Inc. 204
4,240 PACCAR, Inc. 252
3,100 Snap-On Tools, Inc. 131
8,200 TRW, Inc. 433
--------
10,414
--------
BANKING 8.1%
38,569 Banc One Corporation 2,268
8,500 Bank of Boston Corporation 917
22,600 Bank of New York Company, Inc. 1,335
40,324 BankAmerica Corporation 3,428
5,600 Bankers Trust New York Corporation 723
8,700 BB&T Corporation 585
25,210 Chase Manhattan Corporation 3,493
26,700 Citicorp 4,018
9,300 Comerica, Inc. 623
14,850 Fifth Third Bancorp 817
Number Market Value
of Shares (in thousands)
- ----------- ---------------
BANKING 8.1% (CONT.)
16,985 First Chicago Corporation $ 1,577
57,128 First Union Corporation 3,449
15,871 Fleet Financial Group, Inc. 1,371
10,000 Huntington Bancshares Incorporated 356
15,900 Mellon Bank Corporation 1,145
7,600 Mercantile Bancorporation, Inc. 421
10,400 J.P. Morgan & Company, Inc. 1,365
54,906 NationsBank Corporation 4,159
6,200 Northern Trust Corporation 453
44,100 Norwest Corporation 1,750
18,300 PNC Bank Corporation 1,106
3,300 Republic New York Corporation 441
9,800 State Street Corporation 701
11,600 Summit Bancorp. 581
12,300 Sun Trust Banks, Inc. 1,002
11,400 Synovus Financial Corp. 401
14,685 US Bancorp 1,865
12,300 Wachovia Corporation 1,045
15,390 Washington Mutual, Inc. 1,078
5,233 Wells Fargo & Company 1,928
--------
44,401
--------
BIO-TECHNOLOGY 0.2%
15,100 Amgen, Inc. <F1> 900
--------
BUILDING & HOUSING 0.2%
4,600 Fluor Corporation 217
10,200 Masco Corporation 592
4,900 Owens-Corning Fiberglass Corporation 204
6,100 The Stanley Works 312
--------
1,325
--------
BUILDING MATERIALS 0.1%
4,800 Johnson Controls, Inc. 285
--------
BUSINESS MACHINES & SOFTWARE 3.0%
6,500 Apple Computer, Inc. <F1> 178
88,690 COMPAQ Computer Corporation 2,489
9,650 Digital Equipment Corporation <F1> 537
7,700 Honeywell, Inc. 717
57,400 International Business Machines Corporation 6,651
58,912 Oracle Systems Corporation <F1> 1,524
16,900 Pitney-Bowes, Inc. 811
22,600 Sun Microsystems, Inc. <F1> 931
2,700 UNOVA, Inc.* 63
19,050 Xerox Corporation 2,162
--------
16,063
--------
BUSINESS SERVICES 2.1%
3,300 Autodesk, Inc. 155
18,700 Automatic Data Processing, Inc. 1,252
5,700 H & R Block, Inc. 257
4,400 Ceridian Corporation <F1> 249
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
BUSINESS SERVICES 2.1% (CONT.)
59,500 Cisco Systems, Inc. <F1> $ 4,358
32,787 Computer Associates International, Inc. 1,920
8,800 Computer Sciences Corporation <F1> 464
4,700 Deluxe Corporation 157
10,921 Dun & Bradstreet Corporation 388
7,600 Equifax Inc. 294
25,800 First Data Corporation 874
3,600 Moore Corporation Limited 56
2,600 National Service Industries 141
15,100 Service Corporation International 623
15,000 Unisys Corporation<F1> 337
--------
11,525
CHEMICALS 2.4%
6,400 Air Products and Chemicals, Inc. 556
13,200 Dow Chemical Company 1,276
67,700 Dupont (E.I.) De Nemours & Company 4,929
6,600 Ecolab, Inc. 209
4,300 W.R. Grace & Company 87
3,100 Great Lakes Chemical Corporation 156
5,300 Hercules, Inc. 253
1,800 Millipore Corporation 62
34,600 Monsanto Company 1,829
6,900 Morton International, Inc. 221
2,500 Nalco Chemical Company 99
10,600 PPG Industries, Inc. 749
10,400 Praxair, Inc. 523
3,300 Rohm & Haas Company 356
8,500 Rubbermaid, Inc. 243
10,100 Sherwin-Williams Company 360
6,300 Sigma-Aldrich Corporation 251
6,450 Union Carbide Corporation 313
24,600 The Williams Companies, Inc. 778
--------
13,250
--------
COMMUNICATIONS & MEDIA 2.0%
4,350 Andrew Corporation <F1> 100
42,600 CBS Corporation<F1> 1,518
7,400 Clear Channel Communications, Inc. <F1> 697
20,400 Comcast Corporation - Class A 731
6,500 Dow Jones & Company, Inc. 316
17,000 Gannett Company, Inc. 1,155
3,400 Harcourt General, Inc. 177
7,150 Interpublic Group of Companies, Inc. 457
5,000 Knight-Ridder, Inc. 292
5,400 New York Times Company - Class A 383
9,000 Omnicom Group, Inc. 426
28,600 Tele-Communications, Inc. - Class A <F1> 922
34,600 Time Warner, Inc. 2,716
6,023 Times Mirror Company - Class A 369
6,900 Tribune Company 455
--------
10,714
--------
Number Market Value
of Shares (in thousands)
- ----------- ---------------
COMPUTERS 1.0%
39,100 Dell Computer Corporation <F1> $ 3,157
29,700 EMC Corporation <F1> 1,370
8,500 Gateway 2000, Inc.<F1> 499
13,900 Seagate Technology, Inc. <F1> 371
9,400 Silicon Graphics, Inc. <F1> 123
--------
5,520
--------
CONSUMER DURABLES 0.3%
4,637 Eastman Chemical Company 319
19,450 Eastman Kodak Company 1,404
2,128 Polaroid Corporation 94
--------
1,817
--------
CONSUMER PRODUCTS 0.2%
5,600 Avery Dennison Corporation 293
9,821 Cognizant Corporation 505
9,000 Newell Company 435
3,200 Tupperware Corporation 87
--------
1,320
--------
CONTAINERS 0.3%
2,100 Bemis Company, Inc. 93
6,900 Crown Cork & Seal Company, Inc. 359
8,900 Owens-Illinois, Inc. <F1> 352
9,604 Sealed Air Corporation<F1> 602
--------
1,406
--------
COSMETICS & SOAP 2.5%
7,900 Avon Products, Inc. 649
6,100 Clorox Company 512
17,700 Colgate-Palmolive Company 1,587
33,544 Gillette Company 3,872
5,800 International Flavors & Fragrances, Inc. 284
80,400 Procter & Gamble Company 6,608
--------
13,512
--------
DISTRIBUTION 0.0%
9,358 Ikon Office Solutions, Inc. 226
--------
DIVERSIFIED 0.5%
38,300 Unilever N.V. 2,858
--------
DRUGS 9.3%
45,800 Abbott Laboratories 3,349
4,800 Allergan, Inc. 200
3,900 Alza Corporation <F1> 187
38,900 American Home Products Corporation 3,623
3,100 Bard (C.R.), Inc. 111
16,300 Baxter International, Inc. 904
7,200 Becton, Dickinson & Company 501
58,520 Bristol-Meyers Squibb Company 6,196
6,400 Cardinal Health, Inc. 616
9,500 Humana, Inc. <F1> 257
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
DRUGS 9.3% (CONT.)
80,500 Johnson & Johnson $ 5,746
66,400 Eli Lilly & Company 4,619
28,000 Medtronic, Inc. 1,474
70,800 Merck & Company, Inc. 8,531
76,500 Pfizer, Inc. 8,707
29,555 Pharmacia & Upjohn, Inc. 1,243
43,800 Schering-Plough 3,509
5,400 St. Jude Medical, Inc. <F1> 191
17,500 Tenet Healthcare Corporation <F1> 655
--------
50,619
--------
ELECTRIC 0.8%
7,700 Ameren Corporation 305
8,032 CINenergy Corporation 280
13,300 Consolidated Edison Company of New York, Inc. 602
21,128 Duke Power Company 1,223
21,400 Edison International 638
7,600 General Public Utilities Corporation 301
17,300 PacifiCorp 402
13,900 Texas Utilities Company 556
--------
4,307
--------
ELECTRICAL EQUIPMENT 3.5%
11,900 AMP, Inc. 468
26,600 Emerson Electric Company 1,692
195,900 General Electric Company 16,676
2,800 Grainger (W.W.), Inc. 305
--------
19,141
--------
ELECTRONICS 3.5%
3,400 General Signal Corporation 150
4,200 Harris Corporation 203
62,300 Hewlett-Packard Company 4,692
98,000 Intel Corporation 7,920
34,900 Motorola, Inc. 1,941
8,500 National Semiconductor Corporation <F1> 187
30,700 Northern Telecom Ltd. 1,869
2,100 Perkin-Elmer Corporation 144
3,450 Tektronix, Inc. 148
23,400 Texas Intruments, Inc. 1,499
2,500 Thomas & Betts Corporation 146
3,700 Western Atlas, Inc. <F1> 292
--------
19,191
--------
ENERGY 1.7%
10,900 American Electric Power Company 520
10,250 Baltimore Gas & Electric Company 323
9,900 Carolina Power & Light Company 426
14,100 Central & South West Corporation 367
6,725 Coastal Corporation 480
4,800 Consolidated Natural Gas Company 276
12,400 Dominion Resources, Inc. 491
7,800 DTE Energy Company 306
FIRSTAR FUNDS
(LOGO)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
ENERGY 1.7% (CONT.)
14,900 Entergy Corporation $ 371
13,000 FirstEnergy Corp. 393
10,600 FPL Group, Inc. 658
18,572 Houston Industries, Inc. 540
11,600 Niagara Mohawk Power Corporation <F1> 142
3,300 NICOR, Inc. 135
4,500 Northern States Power Company 254
4,600 Pacific Enterprises, Inc. 179
24,700 Pacific Gas & Electric Company 800
15,400 Peco Energy Company 367
12,500 Public Service Enterprises Group, Inc. 420
6,400 Sonat, Inc. 284
41,400 Southern Company 1,097
12,300 Unicom Corporation 427
--------
9,256
--------
ENERGY - RAW MATERIALS 0.4%
10,000 Baker Hughes, Inc. 405
10,200 Dresser Industries, Inc. 539
14,800 Halliburton Company 814
19,100 Occidental Petroleum Corporation 562
--------
2,320
--------
ENTERTAINMENT & LEISURE 1.0%
4,500 Brunswick Corporation 146
7,125 Hasbro, Inc. 262
16,387 Mattel, Inc. 628
41,200 McDonald's Corporation 2,549
10,200 Mirage Resorts, Incorporated <F1> 225
6,062 Starwood Hotels & Resorts 304
20,685 Viacom, Inc. - Class B <F1> 1,200
8,050 Wendy's International, Inc. 194
--------
5,508
--------
ENVIRONMENTAL SERVICES 0.1%
22,100 Laidlaw, Inc. - Class B 308
--------
FINANCE 2.3%
27,800 American Express Company 2,836
3,100 Beneficial Corporation 404
6,400 H.F. Ahmanson & Company 488
6,000 Household International, Inc. 789
6,100 Lehman Brothers Holdings, Inc. 433
20,000 Merrill Lynch & Company, Inc. 1,755
19,700 National City Corporation 1,364
68,618 Travelers Group, Inc. 4,199
--------
12,268
--------
FINANCIAL SERVICES 2.3%
20,745 Associates First Capital Corporation - Class A 1,551
10,400 Conseco, Inc. 516
5,600 Countrywide Credit Industries, Inc. 271
63,500 Federal National Mortgage Association 3,802
See notes to the financial statements.
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
FINANCIAL SERVICES 2.3% (CONT.)
15,000 Franklin Resources, Inc. $ 803
8,200 Green Tree Financial Corporation 334
5,400 MBIA, Inc. 403
28,475 MBNA Corporation 965
35,466 Morgan Stanley Group, Inc. 2,797
11,300 SunAmerica, Inc. 564
17,400 The Charles Schwab Corporation 609
--------
12,615
--------
FOOD, BEVERAGES & TOBACCO 6.2%
570 Agribrands International, Inc.<F1> 22
34,294 Archer-Daniels-Midland Company 737
16,200 Bestfoods 889
27,300 Campbell Soup Company 1,401
148,100 Coca-Cola Company 11,237
28,450 ConAgra, Inc. 830
2,025 CPC International, Inc. 72
9,800 Dardeen Restaurants, Inc. 157
10,000 Fortune Brands, Inc. 369
9,500 General Mills, Inc. 642
21,900 Heinz (H.J.) Company 1,194
8,300 Hershey Foods Corporation 608
24,000 Kellogg Company 990
9,900 Lowe's Companies, Inc 692
90,900 PepsiCo, Inc. 3,608
145,200 Philip Morris Companies, Inc. 5,418
10,200 Pioneer Hi-Bred International, Inc. 385
7,800 Quaker Oats Company 406
6,400 Ralston-Ralston Purina Group 678
28,300 Sara Lee Corporation 1,686
18,600 Sysco Corporation 443
9,320 Tricon Global Restaurants, Inc. <F1> 296
10,900 UST, Inc. 300
6,800 Wrigley (Wm) Jr. Company 605
--------
33,665
--------
GOLD & PRECIOUS METALS 0.2%
21,200 Barrick Gold Corporation 476
13,600 Battle Mountain Gold Company 98
3,500 Cyprus Amax Minerals Company 60
9,600 Freeport McMoRan Copper & Gold, Inc. 181
6,100 Homestake Mining Company 71
11,361 Placer Dome, Inc. 168
--------
1,054
--------
HEALTH CARE SERVICES & SUPPLIES 1.4%
2,900 Bausch & Lomb, Inc. 143
11,500 Boston Scientific Corporation <F1> 832
37,828 Columbia/HCA Healthcare Corporation 1,246
12,300 HBO & Company 736
22,900 HEALTHSOUTH Corporation <F1> 691
3,400 Manor Care, Inc. 119
10,600 United Healthcare Corporation 745
FIRSTAR FUNDS
(LOGO)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
HEALTH CARE SERVICES & SUPPLIES 1.4% (CONT.)
16,300 Warner-Lambert Company $ 3,084
--------
7,596
--------
HOSPITAL SUPPLIES & SERVICES 0.1%
6,500 Biomet, Inc. 195
2,900 US Surgical Corporation 91
--------
286
--------
HOUSEHOLD PRODUCTS 0.1%
11,900 Federated Department Stores <F1> 585
--------
INSURANCE 3.8%
8,394 Aetna Life and Casualty Company 678
25,073 Allstate Corporation 2,413
15,200 American General Corporation 1,013
42,032 American International Group, Inc. 5,530
9,500 Aon Corporation 613
9,600 Chubb Corporation 758
4,200 CIGNA Corporation 869
3,000 Cincinnati Financial Corporation 382
4,500 General Re Corporation 1,006
6,900 The Hartford Financial Services Group, Inc. 764
6,225 Jefferson-Pilot Corporation 365
26,304 KeyCorp 1,044
6,100 Lincoln National Corporation 542
10,640 Marsh & McLennan Companies, Inc. 970
6,400 MGIC Investment Corporation 403
4,100 Progressive Corporation 555
6,400 Providian Corporation 385
9,400 SAFECO Corporation 469
6,467 St Paul Companies, Inc. 548
7,900 Torchmark Corporation 352
3,700 Transamerica Corporation 427
8,000 UNUM Corporation 430
--------
20,516
--------
LIQUOR 0.4%
29,300 Anheuser-Busch Companies, Inc. 1,342
3,400 Brown-Foreman Corporation - Class B 193
19,900 Seagram Company Ltd. 849
--------
2,384
--------
MACHINERY - AGRICULTURE & AUTOMOTIVE 0.0%
3,700 Case Equipment 235
--------
MACHINERY - INDUSTRIAL 0.1%
3,400 Harnischfeger Industries, Inc. 96
9,500 Thermo Electron Corporation <F1> 378
--------
474
--------
MEDICAL INSTRUMENTS 0.1%
8,400 Guidant Corporation 562
See notes to the financial statements.
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
METALS & MINERALS 0.3%
12,160 Allegheny Teledyne, Inc. $ 309
6,200 Nucor Corporation 372
17,266 USX Corporation-Marathon Group, Inc. 618
4,793 USX Corporation-US Steel Group, Inc. 188
5,125 Worthington Industries, Inc. 92
--------
1,579
--------
MISCELLANEOUS 0.8%
21,300 Applied Materials, Inc. <F1> 769
4,100 Mallinckrodt Group, Inc. 132
10,400 PP&L Resources, Inc. 240
22,700 3 Com Corporation <F1> 778
23,900 3M Corporation 2,256
--------
4,175
--------
MULTI-INDUSTRY 0.8%
46,241 Cendant Corporation<F1> 1,156
13,900 Corning, Inc. 556
6,500 Loews Corporation 650
9,624 Tenneco, Inc. 414
34,300 Tyco International, Ltd. 1,869
--------
4,645
--------
NATURAL GAS 0.2%
18,000 Enron Corporation 885
--------
NON-FERROUS METALS 0.4%
13,250 Alcan Aluminum Ltd. 431
9,600 Aluminum Company of America 744
1,200 ASARCO, Inc. 30
6,300 Englehard Corporation 133
8,100 Inco, Ltd. 142
9,436 Newmont Mining Corporation 304
3,300 Phelps Dodge Corporation 222
5,200 Reynolds Metals Company 343
--------
2,349
--------
OFFICE EQUIPMENT 0.0%
16,700 Novell, Inc. <F1> 167
--------
OIL - DOMESTIC 1.4%
4,700 Amerada Hess Corporation 270
58,200 Amoco Corporation 2,575
3,200 Anadarko Petroleum Corporation 234
3,800 Ashland, Inc. 201
19,200 Atlantic Richfield Company 1,498
11,892 Burlington Resources, Inc. 559
2,700 Columbia Gas System, Inc. 219
3,400 Kerr-McGee Corporation 224
4,900 Oryx Energy Company <F1> 128
2,400 Pennzoil Company 154
15,800 Phillips Petroleum Company 783
FIRSTAR FUNDS
(LOGO)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
OIL - DOMESTIC 1.4% (CONT.)
4,400 Rowan Companies, Inc. <F1> $ 130
3,800 Sun Company, Inc. 154
15,500 Unocal Corporation 635
--------
7,764
--------
OIL - INTERNATIONAL 5.0%
7,400 Apache Corporation 262
39,300 Chevron Corporation 3,250
145,500 Exxon Corporation 10,612
46,900 Mobil Corporation 3,705
128,400 Royal Dutch Petroleum Company 7,263
32,000 Texaco, Inc. 1,968
--------
27,060
--------
OIL & GAS SERVICES 0.5%
29,800 Schlumberger, Ltd. 2,470
12,938 Union Pacific Resources Group 309
--------
2,779
--------
PAPER & FOREST PRODUCTS 1.1%
2,500 Boise Cascade Corporation 94
5,500 Champion International Corporation 296
11,700 Fort James Corporation 581
5,600 Georgia-Pacific Corporation 432
17,700 International Paper Company 924
32,512 Kimberly-Clark Corporation 1,650
4,972 Louisiana Pacific Corporation 109
6,200 Mead Corporation 215
3,250 Temple-Inland, Inc. 210
4,050 Union Camp Corporation 245
6,825 Westvaco Corporation 207
12,650 Weyerhaeuser Company 729
5,800 Willamette Industries 225
--------
5,917
--------
POLLUTION CONTROL 0.2%
11,200 Browning-Ferris Industries, Inc. 382
26,400 Waste Management, Inc. 884
--------
1,266
--------
PRINTING & PUBLISHING 0.2%
6,300 McGraw-Hill, Inc. 488
9,300 R.R. Donnelley & Sons Company 410
--------
898
--------
PRODUCTION 1.0%
1,200 Briggs & Stratton Corporation 54
22,100 Caterpillar, Inc. 1,258
7,800 Cooper Industries, Inc. 522
14,400 Deere & Company 842
12,000 Dover Corporation 474
1,900 FMC Corporation <F1> 147
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
PRODUCTION 1.0% (CONT.)
1,600 Foster Wheeler Corporation $ 44
2,650 Hussmann International, Inc. 46
14,100 Illinois Tool Works, Inc. 994
10,100 Ingersoll-Rand Company 465
6,366 Pall Corporation 125
6,525 Parker-Hannifin Corporation 291
4,700 Raychem Corporation 189
4,900 Timken Company 196
--------
5,647
--------
RAILROADS 0.6%
8,781 Burlington Northern Santa Fe 869
13,620 CSX Corporation 715
21,300 Norfolk Southern Corporation 712
14,700 Union Pacific Corporation 805
--------
3,101
--------
RETAIL 4.4%
14,300 Albertson's, Inc. 715
4,400 American Greetings Corporation 204
15,600 American Stores Company 374
6,800 Circuit City Stores, Inc. 276
6,000 Consolidated Stores Corporation<F1> 240
12,421 Costco Companies, Inc.<F1> 694
13,100 Dayton Hudson Corporation 1,144
5,500 Dillard Department Stores, Inc. - Class A 202
23,700 Gap, Inc. 1,219
2,500 Giant Food, Inc. 93
43,750 Home Depot, Inc. 3,046
28,500 Kmart Corporation <F1> 497
14,300 Kroger Corporation <F1> 599
15,911 The Limited, Inc. 534
13,476 The May Department Stores Company <F1> 831
3,100 Mercantile Stores Company, Inc. 226
4,200 Nordstrom, Inc. 275
14,600 J.C. Penney Company, Inc. 1,038
3,300 Pep Boys _ Manny, Moe & Jack 72
14,200 Rite Aid Corporation 456
23,800 Sears Roebuck and Company 1,412
3,500 Supervalu, Inc. 153
5,700 Tandy Corporation 284
8,700 TJX Companies, Inc. 385
15,625 Toys 'R' Us, Inc. <F1> 431
30,300 Walgreen Company 1,045
134,500 Wal-Mart Stores, Inc. 6,801
9,500 Winn-Dixie Stores, Inc. 357
6,600 Woolworth Corporation <F1> 152
--------
23,755
--------
SAVINGS & LOAN 0.4%
40,600 Federal Home Loan Mortgage Corporation 1,880
3,400 Golden West Financial Corporation 358
--------
2,238
--------
Number Market Value
of Shares (in thousands)
- ----------- ---------------
SEMICONDUCTORS 0.2%
7,500 Advanced Micro Devices, Inc. <F1> $ 208
4,500 KLA-Tencor Corporation <F1> 181
7,100 LSI Logic Corp <F1> 193
13,500 Micron Technology Incorporated 419
--------
1,001
--------
SOFTWARE 2.6%
3,300 Adobe Systems Incorporated 165
15,300 Bay Networks <F1> 359
144,700 Microsoft Corporation <F1> 13,041
16,200 Parametric Technology Company <F1> 518
--------
14,083
--------
TELECOMMUNICATIONS 7.9%
33,800 Airtouch Communications, Inc. <F1> 1,796
10,400 Alltell Corporation 445
65,500 Ameritech Corporation 2,788
95,656 AT&T Corporation 5,745
45,404 Bell Atlantic Corporation 4,248
59,300 BellSouth Corp. 3,806
7,300 Cabletron Systems <F1> 97
5,800 DSC Communications Corporation <F1> 104
9,300 Frontier Corporation 278
57,300 GTE Corporation 3,348
77,892 Lucent Technologies, Inc. 5,930
40,700 MCI Communications Corporation 2,048
16,200 Nextel Communications, Inc.<F1> 465
107,288 SBC Communications, Inc. 4,446
25,100 Sprint Corporation 1,715
28,953 US West, Inc. 1,527
36,353 US West Media Group, Inc. <F1> 1,372
60,600 WorldCom, Inc. <F1> 2,593
--------
42,751
--------
TELECOMMUNICATIONS EQUIPMENT 0.2%
8,400 General Instrument Corporation<F1> 188
10,000 Tellabs, Inc. <F1> 709
--------
897
--------
TEXTILES & APPAREL 0.4%
11,400 CVS Corporation 841
4,100 Fruit of The Loom, Inc. <F1> 153
3,600 Liz Claiborne, Inc. 177
17,300 Nike, Inc. - Class B 826
2,600 Reebok International Ltd. 76
2,000 Russell Corporation 54
6,554 VF Corporation 341
--------
2,468
--------
See notes to the financial statements.
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
TIRE & RUBBER 0.2%
4,800 Cooper Tire & Rubber Company $ 115
4,100 Goodrich (B.F.) Company 221
8,762 Goodyear Tire & Rubber Company 613
--------
949
--------
TRANSPORTATION EQUIPMENT 0.0%
1,700 Cummins Engine Company, Inc. 92
--------
TRAVEL & RECREATION 1.2%
40,400 The Walt Disney Company 5,022
4,950 Harrahs Entertainment, Inc. <F1> 129
14,700 Hilton Hotels Corporation 469
15,300 Marriott International, Inc. 505
7,500 Marriott International, Inc. - Class A 240
1,875 Sodexho Marriot Services, Inc. 48
--------
6,413
--------
TRUCKING 0.0%
3,550 Ryder System, Inc. 124
--------
Total Common Stock (Cost $279,045) 515,787
--------
Principal
Amount Market Value
(in thousands) (in thousands)
- --------------- --------------
SHORT-TERM INVESTMENTS 5.1%
U.S. TREASURIES 0.3%
$ 1,600 U.S. Treasury Bill, 4.91%, 8/20/98 $ 1,576
--------
Total U.S. Treasuries (Cost $1,575) 1,576
--------
VARIABLE RATE DEMAND NOTES 4.8%
11,891 American Family Financial Services, Inc. 11,891
14,161 Warner-Lambert Co. 14,161
--------
Total Variable Rate Demand Notes (Cost $26,052) 26,052
--------
Total Short-Term Investments (Cost $27,627) 27,628
--------
Total Investments (Cost $306,672) 99.8% 543,415
--------
Other Assets, less Liabilities 0.2% 1,111
--------
TOTAL NET ASSETS 100.0% $544,526
========
<F1>Non-income producing
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
COMMON STOCKS 92.0%
AEROSPACE & AIRCRAFT 2.0%
109,000 Gulfstream Aerospace Corporation <F1> $ 4,571
--------
AIR TRANSPORTATION 1.4%
48,000 FDX Corporation <F1> 3,264
--------
BANKING 4.2%
17,005 Charter One Financial, Inc. 1,151
43,000 First Union Corporation 2,596
32,200 State Street Corporation 2,302
50,100 Washington Mutual, Inc. 3,510
--------
9,559
--------
BUILDING MATERIALS 0.8%
62,300 Royal Group Technologies Ltd. <F1> 1,935
--------
BUSINESS MACHINES & SOFTWARE 2.8%
7,900 Computer Associates International, Inc. 463
25,700 Microsoft Corporation <F1> 2,316
42,800 Parametric Technology Company<F1> 1,368
51,300 Sterling Commerce, Inc. <F1> 2,183
--------
6,330
--------
BUSINESS SERVICES 9.9%
72,000 Cintas Corporation 3,429
71,500 Cognizant Corporation 3,678
23,600 First Data Corporation 799
12,000 Manpower, Inc. 529
149,900 Pittston Brink's Group 5,865
17,100 Sabre Group Holdings, Inc. <F1> 622
221,200 SunGard Data Systems, Inc. <F1> 7,880
--------
22,802
--------
CHEMICALS 2.4%
33,500 Du pont (E.I.) De Nemours and Company 2,439
75,500 Sigma-Aldrich Corporation 3,011
--------
5,450
--------
COMMUNICATIONS & MEDIA 3.3%
86,600 Interpublic Group of Companies, Inc. 5,532
42,400 Omnicom Group, Inc. 2,009
--------
7,541
--------
COMPUTERS 0.7%
11,700 Compaq Computers Corporation 328
16,000 Dell Computer Corporation <F1> 1,292
--------
1,620
--------
CONSUMER PRODUCTS 1.2%
56,400 Newell Company 2,725
--------
Number Market Value
of Shares (in thousands
- ----------- ---------------
DRUGS 6.2%
32,300 Elan Corporation, PLC ADR <F1> $ 2,007
33,500 Merck & Co., Inc. 4,037
33,000 Warner-Lambert Company 6,243
46,700 Watson Pharmaceuticals, Inc.<F1> 2,008
--------
14,295
--------
ELECTRONICS & SCIENTIFIC INSTRUMENTS 3.4%
56,400 Cisco Systems, Inc. <F1> 4,131
24,000 Hewlett-Packard Company 1,807
52,470 Molex, Inc. - Class A 1,410
14,750 Thermo Instrument Systems Inc. <F1> 435
--------
7,783
--------
ENTERTAINMENT & LEISURE 0.3%
17,700 Hasbro, Inc. 651
--------
FINANCIAL SERVICES 7.5%
29,600 Associates First Capital Corporation 2,213
46,600 Federal National Mortgage Association 2,790
52,700 Franklin Resources, Inc. 2,819
98,850 MBNA Corporation 3,348
8,100 Newcourt Credit Group, Inc. 398
60,700 SunAmerica, Inc. 3,031
41,685 Travelers Group, Inc. 2,551
--------
17,150
--------
HEALTH CARE SERVICES & SUPPLIES 5.5%
28,200 Boston Scientific Corporation <F1> 2,039
14,700 Cardinal Health, Inc. 1,415
81,450 Health Care & Retirement Corporation <F1> 3,319
76,000 Healthsouth Corporation<F1> 2,294
28,300 Lincare Holdings, Inc. <F1> 2,296
22,600 Medtronic, Inc. 1,189
--------
12,552
--------
INSURANCE 5.0%
35,025 AFLAC, Inc. 2,277
75,800 MBIA, Inc. 5,656
55,900 MGIC Investment Corporation 3,526
--------
11,459
--------
LODGING 1.2%
62,160 Promus Hotel Corporation <F1> 2,809
--------
MULTI-INDUSTRY 6.6%
42,500 Leggett & Platt, Inc. 2,207
62,200 Thermo Electron Corporation <F1> 2,476
194,600 Tyco International, Ltd. 10,606
--------
15,289
--------
NATURAL GAS 1.3%
61,600 Enron Corporation 3,030
--------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
GROWTH FUND
SCHEDULE OF INVESTMENTS
April 30, 1998
(Unaudited)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
OIL & GAS SERVICES 2.1%
26,600 Halliburton Company $ 1,463
40,900 Schlumberger, Ltd. 3,390
--------
4,853
--------
POLLUTION CONTROL 1.0%
47,300 USA Waste Services, Inc. <F1> 2,321
--------
RETAIL 6.7%
12,500 Bed Bath & Beyond, Inc. <F1> 616
70,400 Costco Companies, Inc. <F1> 3,934
61,800 Federated Department Stores, Inc. <F1> 3,040
199,200 Food Lion, Inc. - Class A 2,017
21,700 Home Depot, Inc. 1,511
70,200 Safeway, Inc. <F1> 2,685
69,300 Staples, Inc.<F1> 1,711
--------
15,514
--------
SEMICONDUCTORS 1.0%
29,600 Intel Corporation 2,392
--------
TELECOMMUNICATIONS 4.6%
152,100 Cincinnati Bell, Inc. 5,818
94,700 MCI Communications Corporation 4,765
--------
10,583
--------
TELECOMMUNICATIONS EQUIPMENT 3.1%
60,800 Lucent Technologies, Inc. 4,628
35,100 Tellabs, Inc. <F1> 2,488
--------
7,116
--------
TEXTILES & APPAREL 1.8%
40,900 Liz Claiborne, Inc. 2,012
79,500 Polo Ralph Lauren Corporation <F1> 2,236
--------
4,248
--------
TRANSPORTATION 2.4%
153,800 Harley-Davidson, Inc. 5,537
--------
TRAVEL & RECREATION 3.6%
71,100 Carnival Corporation - Class A 4,946
26,700 The Walt Disney Company 3,319
--------
8,265
--------
Total Common Stock (Cost $127,532) 211,644
--------
Number
of Shares Market Value
(in thousands) (in thousands)
- -------------- ---------------
SHORT-TERM INVESTMENTS 6.0%
Investment Companies 1.6%
10 Financial Square Prime Obligation Fund $ 10
3,691 Short-Term Investments Co.
Liquid Assets Portfolio 3,691
--------
Total Investment Companies (Cost $3,701) 3,701
--------
Principal
Amount
(in thousands)
- ---------------
VARIABLE RATE DEMAND NOTES 4.4%
$10,000 Warner-Lambert Co. 10,000
--------
Total Variable Rate Demand Notes (Cost $10,000) 10,000
--------
Total Short-Term Investments (Cost $13,701) 13,701
--------
Total Investments (Cost $141,233) 98.0% 225,345
--------
Other Assets, less Liabilities 2.0% 4,669
--------
TOTAL NET ASSETS 100.0% $230,014
========
<F1> Non-income producing
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
SPECIAL GROWTH FUND
SCHEDULE OF INVESTMENTS
April 30, 1998
(Unaudited)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
COMMON STOCKS 97.3%
AUTO & TRUCK 0.1%
29,200 Applied Power, Inc. - Class A $ 1,091
--------
BUSINESS MACHINES & SOFTWARE 4.9%
333,900 Network Associates, Inc.<F1> 22,872
343,100 Synopsys, Inc.<F1> 14,753
--------
37,625
--------
BUSINESS SERVICES 11.7%
279,900 AccuStaff, Inc. <F1> 10,041
374,500 Ciber, Inc. <F1> 12,173
564,200 Concord EFS, Inc. <F1> 17,772
98,600 CSG Systems International, Inc.<F1> 4,486
375,700 FIserv, Inc. <F1> 24,561
69,800 Gartner Group, Inc. - Class A<F1> 2,312
333,650 Robert Half International, Inc. <F1> 18,059
--------
89,404
--------
COMPUTERS 3.8%
579,000 Tech Data Corporation <F1> 28,878
--------
FINANCIAL SERVICES 7.9%
805,500 E*TRADE Group, Inc.<F1> 20,087
48,500 Heller Financial, Inc.<F1> 1,310
144,500 Kansas City Southern Industries, Inc. 6,530
3,100 Peoples Heritage Financial Group, Inc. 150
70,400 T. Rowe Price Associates, Inc. 5,315
784,700 The Charles Schwab Corporation 27,464
--------
60,856
--------
HEALTH CARE SERVICES & SUPPLIES 14.2%
42,400 First Health Group Corporation<F1> 2,502
1,005,893 Health Management Associates, Inc. - Class A<F1> 31,686
62,700 Henry Schein, Inc.<F1> 2,445
242,775 Lincare Holdings, Inc. <F1> 19,695
627,775 PhyCor, Inc. <F1> 14,282
413,000 Shared Medical Systems Corporation 30,123
142,600 Universal Health Services, Inc. - Class B<F1> 8,208
--------
108,941
--------
HOSPITAL SUPPLIES & SERVICES 0.3%
79,300 Omnicare, Inc. 2,716
--------
HOUSING 2.2%
598,900 Toll Brothers, Inc. <F1> 16,694
--------
INSURANCE 16.3%
587,300 AMBAC, Inc. 33,293
342,200 MGIC Investment Corporation 21,559
986,950 Protective Life Corporation 36,641
482,800 ReliaStar Financial Corporation 22,028
204,425 Vesta Insurance Group, Inc. 11,576
--------
125,097
--------
FIRSTAR FUNDS
(LOGO)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
MEDICAL INSTRUMENTS 0.9%
75,300 Sofamor Danek Group, Inc. <F1> $ 6,608
--------
OIL & GAS - DOMESTIC 0.7%
152,000 Barrett Resources Corporation<F1> 5,643
--------
RESTAURANTS 0.1%
19,300 Papa John's International, Inc.<F1> 806
--------
RETAIL 11.4%
394,400 Bed Bath and Beyond, Inc. <F1> 19,424
715,197 Dollar General Corporation 27,088
9,700 Fastenal Company 543
419,100 General Nutrition Companies, Inc. <F1> 15,035
76,100 MSC Industrial Direct Co., Inc. - Class A <F1> 3,872
229,600 Office Depot, Inc.<F1> 7,606
511,400 Pier 1 Imports, Inc. 13,488
--------
87,056
--------
SCHOOLS 0.9%
201,450 Apollo Group, Inc. <F1> 6,900
--------
SECURITY SERVICES 1.5%
427,600 Corrections Corporation of America <F1> 11,866
--------
SEMICONDUCTORS 3.5%
664,600 Maxim Integrated Products <F1> 26,833
--------
SOFTWARE 6.5%
719,600 Cadence Design Systems, Inc. <F1> 26,130
354,300 Cambridge Technologies Partners, Inc. <F1> 18,512
105,600 Electronic Arts, Inc.<F1> 4,884
--------
49,526
--------
TELECOMMUNICATIONS EQUIPMENT 3.8%
223,300 Advanced Fibre Communications, Inc.<F1> 9,462
355,200 CIENA Corporation <F1> 19,802
--------
29,264
--------
TEXTILES & APPAREL 5.1%
456,300 Jones Apparel Group, Inc. <F1> 27,292
184,400 Ross Stores, Inc. 8,524
106,400 Wolverine World Wide, Inc. 3,072
--------
38,888
--------
WASTE MANAGEMENT 1.5%
470,475 Newpark Resources, Inc.<F1> 11,321
--------
Total Common Stock (Cost $482,595) 746,013
--------
See notes to the financial statements.
SPECIAL GROWTH FUND
SCHEDULE OF INVESTMENTS
April 30, 1998
(Unaudited)
Number
of Shares Market Value
(in thousands) (in thousands)
- -------------- ---------------
SHORT-TERM INVESTMENTS 2.6%
Investment Companies 2.6%
10 Financial Square Prime Obligation Fund $ 10
19,980 Short-Term Investments Co.
Liquid Assets Portfolio 19,980
--------
Total Investment Companies (Cost $19,990) 19,990
--------
Total Short-Term Investments (Cost $19,990) 19,990
--------
Total Investments (Cost $502,585) 99.9% 766,003
--------
Other Assets, less Liabilities 0.1% 828
--------
TOTAL NET ASSETS 100.0% $766,831
========
<F1> Non-income producing
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
Emerging Growth FUND
SCHEDULE OF INVESTMENTS
April 30, 1998
(Unaudited)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
COMMON STOCKS 90.4%
BUSINESS MACHINES & SOFTWARE 1.7%
4,800 Digi International, Inc.<F1> $ 128
5,200 Harbinger Corporation<F1> 189
30,800 Hypercom Corporation<F1> 400
16,200 National Instruments Corporation <F1> 575
--------
1,292
--------
BUSINESS SERVICES 11.3%
31,200 ABR Information Services, Inc. <F1> 902
13,200 American Business Information, Inc. - Class A <F1> 178
10,800 American Business Information, Inc. - Class B <F1> 154
5,900 Catalina Marketing Corporation<F1> 307
1,300 Central Parking Corporation 61
42,100 F.Y.I. Incorporated <F1> 1,145
35,100 Mastech Corporation <F1> 930
78,500 May & Speh, Inc.<F1> 1,168
36,800 National Data Corporation 1,502
22,900 Nova Corporation<F1> 779
23,700 PMT Services, Inc.<F1> 462
53,800 Sykes Enterprises, Inc.<F1> 1,127
--------
8,715
--------
COMPUTERS 2.2%
10,400 Black Box Corporation<F1> 346
25,500 CDW Computer Centers, Inc. <F1> 1,384
--------
1,730
--------
COMMUNICATIONS & MEDIA 0.8%
19,400 Ha-Lo Industries, Inc.<F1> 651
--------
CONSTRUCTION 1.3%
11,200 D.R. Horton, Inc. 207
25,800 Granite Construction, Inc. 762
3,700 Standard Pacific Corporation 63
--------
1,032
--------
DATA PROCESSING 4.7%
107,400 Acxiom Corporation <F1> 2,604
23,700 CCC Information Services Group Inc. <F1> 569
16,300 National Computer Systems, Inc. 417
--------
3,590
--------
DRUGS 1.2%
23,200 Barr Laboratories, Inc.<F1> 940
--------
ELECTRONICS & EQUIPMENT 0.6%
9,800 Gemstar International Group, Inc. 379
5,100 Plexus Corporation<F1> 112
--------
491
--------
Number Market Value
of Shares (in thousands)
- ----------- ---------------
ENTERTAINMENT & LEISURE 4.2%
113,400 American Skiing Company<F1> $1,758
18,400 Cinar Films, Inc. - Class B <F1> 354
14,500 Imax Corporation<F1> 395
11,800 Scientific Games Holdings Corporation<F1> 263
10,950 Steiner Leisure Ltd.<F1> 346
5,700 Signature Resorts, Inc.<F1> 102
--------
3,218
--------
FINANCIAL SERVICES 3.3%
30,500 ARM Financial Group, Inc. - Class A 654
1,200 BancTec, Inc.<F1> 26
26,700 The BISYS Group, Inc.<F1> 1,055
6,000 Medallion Financial Corp. 179
8,500 SEI Investments Company 628
--------
2,542
--------
HEALTH CARE SERVICES & SUPPLIES 10.5%
26,200 Ballard Medical Products 659
12,200 Cooper Companies, Inc. <F1> 469
102,400 Graham-Field Health Products, Inc.<F1> 678
80,350 Quorum Health Group, Inc. <F1> 2,581
67,400 Rural/Metro Corporation <F1> 2,191
19,825 PSS World Medical, Inc.<F1> 447
31,100 Vencor, Inc.<F1> 843
14,900 Weider Nutrition International, Inc. 211
--------
8,079
--------
INDUSTRIAL DISTRIBUTION 0.5%
2,300 Aviation Sales Company<F1> 82
11,600 Barnett, Inc. <F1> 235
2,000 Hughes Supply, Inc. 77
--------
394
--------
INSURANCE 12.3%
9,300 Annuity and Life Re (Holdings), Ltd.<F1> 222
48,700 Chartwell Re Corporation 1,501
11,100 CMAC Investment Corporation 717
10,014 Delphi Financial Group, Inc. <F1> 571
32,800 Enhance Financial Services Group, Inc. 2,251
16,900 Executive Risk Incorporated 1,127
15,800 Financial Security Assurance Holdings Ltd. 946
27,800 Terra Nova (Bermuda) Holdings Ltd. 849
42,000 United Wisconsin Services 1,305
--------
9,489
--------
MEDICAL INSTRUMENTS 1.2%
28,600 Mentor Corporation 778
7,900 Physio-Control International Corporation 182
--------
960
--------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
Emerging Growth FUND
SCHEDULE OF INVESTMENTS
April 30, 1998
(Unaudited)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
OIL & GAS - DOMESTIC 4.8%
6,600 Cabot Oil & Gas Corporation $ 155
42,800 Denbury Resources, Inc.<F1> 717
81,000 Forest Oil Corporation<F1> 1,266
78,060 Swift Energy Company <F1> 1,556
--------
3,694
--------
OIL & GAS SERVICES 0.2%
7,800 Seitel, Inc. <F1> 132
--------
POLLUTION CONTROL 2.1%
14,300 Philip Services Corp. <F1> 111
62,500 Tetra Technologies, Inc. <F1> 1,496
--------
1,607
--------
REAL ESTATE INVESTMENT TRUSTS (REITS) 1.8%
41,800 Golf Trust of America, Inc. 1,364
--------
RETAIL 13.4%
1,300 Brylane, Inc.<F1> 76
103,600 Eagle Hardware & Garden, Inc. <F1> 1,890
66,500 Goody's Family Clothing, Inc. <F1> 3,292
35,900 The Men's Wearhouse, Inc. <F1> 1,512
66,700 Petco Animal Supplies, Inc. <F1> 1,317
63,500 Stein Mart, Inc. <F1> 2,238
--------
10,325
--------
SCHOOLS 2.1%
37,900 Computer Learning Centers, Inc.<F1> 457
23,700 Sylvan Learning Systems, Inc. <F1> 1,166
--------
1,623
--------
SECURITY SERVICES 0.8%
2,700 The Wackenhut Corporation - Class A 64
20,200 Wackenhut Corrections Corporation<F1> 528
--------
592
--------
SHIPBUILDING 1.1%
32,800 Avondale Industries, Inc.<F1> 882
--------
SOFTWARE 5.5%
56,600 Avant! Corporation<F1> 1,641
6,300 AXENT Technologies, Inc.<F1> 165
12,500 HNC Software, Inc. <F1> 488
12,700 Hyperion Software Corporation<F1> 551
7,300 JDA Software Group, Inc.<F1> 369
43,300 Software AG Systems, Inc.<F1> 1,072
--------
4,286
--------
TELECOMMUNICATIONS EQUIPMENT 2.4%
41,400 ECI Telecommunications Limited 1,264
15,300 World Access, Inc.<F1> 591
--------
1,855
--------
Number Market Value
of Shares (in thousands)
- ----------- ---------------
TEXTILES & APPAREL 0.4%
16,200 Columbia Sportswear Company<F1> $ 344
--------
Total Common Stock (Cost $61,402) 69,827
--------
Principal
Amount
(in thousands)
- --------------
PREFERRED STOCK 1.4%
Communications Companies 1.4%
$ 19 US WEST Communications Group 1,094
--------
Total Preferred Stock (Cost $821) 1,094
--------
Number
of Shares
(in thousands)
- --------------
SHORT-TERM INVESTMENTS 7.9%
INVESTMENT COMPANIES 4.4%
10 Financial Square Prime Obligation Fund 10
3,359 Short-Term Investments Co.
Liquid Assets Portfolio 3,359
--------
Total Investment Companies (Cost $3,369) 3,369
--------
Principal
Amount
(in thousands)
VARIABLE RATE DEMAND NOTES 3.5%
$2,700 Warner-Lambert Co. 2,700
--------
Total Variable Rate Demand Notes (Cost $2,700) 2,700
--------
Total Short-Term Investments (Cost $6,069) 6,069
--------
Total Investments 99.7% (Cost $68,292) 76,990
--------
Other Assets, less Liabilities 0.3% 194
--------
TOTAL NET ASSETS 100.0% $77,184
=======
<F1> Non-income producing
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
Microcap FUND
SCHEDULE OF INVESTMENTS
April 30, 1998
(Unaudited)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
COMMON STOCKS 95.8%
AIR TRANSPORTATION 1.9%
27,300 Atlantic Coast Airlines, Inc. <F1> $ 1,544
73,100 Indigo Aviation AB ADR<F1> 978
--------
2,522
--------
AUTOS & TRUCKS 1.5%
133,700 Group 1 Automotive, Inc. <F1> 2,005
--------
COMMERCIAL SERVICES 4.5%
79,700 Advanced Health Corporation <F1> 1,136
45,600 Kroll-O'Gara Company<F1> 939
278,400 ProSoft Development, Inc. <F1> 2,158
78,500 SteriGenics International, Inc.<F1> 1,815
--------
6,048
--------
COMPUTER HARDWARE 2.6%
44,200 RadiSys Corporation <F1> 1,204
77,900 SBS Technologies, Inc. <F1> 2,327
--------
3,531
--------
COMPUTER SOFTWARE & SERVICES 11.7%
29,200 Brightstar Information Technologies Group, Inc.<F1> 456
7,400 Brio Technology, Inc.<F1> 81
18,300 Command Systems, Inc.<F1> 127
54,200 Computer Management Sciences, Inc.<F1> 1,396
110,300 Condor Technology Solutions, Inc.<F1> 1,923
80,300 Cotelligent Group, Inc.<F1> 2,073
67,100 Diamond Technologies Partners, Inc.<F1> 1,879
53,000 Fundtech Ltd.<F1> 1,120
70,100 ISS Group, Inc.<F1> 3,102
77,800 Phoenix International Ltd., Inc. <F1> 2,295
67,900 Tier Technologies, Inc. - Class B<F1> 1,366
--------
15,818
--------
COSMETICS & SOAP 3.7%
242,900 Advanced Polymer Systems, Inc. <F1> 1,974
182,700 French Fragrances, Inc. <F1> 3,106
--------
5,080
--------
DATA PROCESSING 1.4%
65,100 Data Processing Resources Corporation<F1> 1,822
--------
DISTRIBUTION 6.7%
36,800 1-800 Contacts, Inc.<F1> 685
284,100 Elcom International, Inc. <F1> 1,634
49,900 Insight Enterprises, Inc.<F1> 1,990
124,200 Pomeroy Computer Resources, Inc. <F1> 3,159
79,100 U.S.A. Floral Products, Inc. <F1> 1,641
--------
9,109
--------
Number Market Value
of Shares (in thousands)
- ----------- ---------------
ELECTRONICS 1.6%
53,300 ARM Holdings PLC ADR<F1> $ 2,152
--------
ENTERTAINMENT & LEISURE 1.9%
36,500 Cavanaughs Hospitality Corporation<F1> 573
109,600 Championship Auto Racing Teams, Inc.<F1> 2,069
--------
2,642
--------
ENVIRONMENTAL MONITORING 0.3%
12,400 North American Scientific, Inc.<F1> 440
--------
EQUIPMENT RENTAL 3.9%
218,900 Coinmach Laundry Corporation <F1> 5,226
--------
FINANCIAL SERVICES 8.6%
88,100 American Capital Strategies, Ltd. <F1> 1,993
70,400 Conning Corporation 1,443
103,400 First Sierra Financial, Inc. <F1> 2,611
121,300 LINC Capital, Inc.<F1> 2,290
113,500 T&W Financial Corporation<F1> 3,235
--------
11,572
--------
FOOTWEAR & RELATED APPAREL 1.6%
126,800 Rocky Shoes & Boots, Inc. <F1> 2,132
--------
HEALTH CARE SERVICES & SUPPLIES 2.7%
18,400 Health Management Systems, Inc.<F1> 195
40,500 Medirisk, Inc.<F1> 952
88,200 Quadramed Corporation 2,514
--------
3,661
--------
HUMAN RESOURCES 3.9%
62,100 Provant, Inc.<F1> 1,157
130,500 RemedyTemp, Inc. - Class A<F1> 4,143
--------
5,300
--------
INSURANCE 2.3%
73,900 ESG Re Ltd. 1,903
43,700 Healthcare Recoveries, Inc. <F1> 1,043
26,800 The Seibels Bruce Group, Inc.<F1> 214
--------
3,160
--------
MACHINERY 1.9%
199,800 ITEQ, Inc. <F1> 2,547
--------
METALS 1.0%
68,200 Metals USA <F1> 1,330
--------
OIL & GAS 1.1%
75,700 Evergreen Resources, Inc.<F1> 1,486
--------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
Microcap FUND
SCHEDULE OF INVESTMENTS
April 30, 1998
(Unaudited)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
OIL SERVICES 2.7%
91,300 Horizon Offshore, Inc.<F1> $ 1,330
102,900 UNIFAB International, Inc.<F1> 2,380
--------
3,710
--------
PHOTOGRAPHIC EQUIPMENT 0.1%
14,600 Concord Camera Corporation<F1> 89
--------
PRIVATE CORRECTION FACILITIES 1.2%
14,600 Childrens Comprehensive Services, Inc.<F1> 273
60,000 Cornell Corrections, Inc. <F1> 1,358
--------
1,631
--------
REAL ESTATE INVESTMENT TRUSTS (REITS) 3.4%
239,000 Capital Automotive REIT 3,719
37,600 Correctional Properties Trust<F1> 867
--------
4,586
--------
RESEARCH & DEVELOPMENT 0.5%
23,600 Kendle International, Inc.<F1> 640
--------
RESTAURANTS 0.7%
75,500 Il Fornaio (America) Corporation <F1> 1,019
--------
RETAIL 4.6%
184,800 A.C. Moore Arts & Crafts, Inc. <F1> 3,511
32,200 DM Management Company <F1> 873
150,600 Factory Card Outlet Corp. <F1> 1,826
--------
6,210
--------
RETIREMENT CARE 4.6%
7,510 Alternative Living Services, Inc. <F1> 263
128,300 Assisted Living Concepts, Inc. <F1> 2,358
57,700 Centennial HealthCare Corporation <F1> 1,370
97,200 Harborside Healthcare Corporation <F1> 2,309
--------
6,300
--------
SCHOOLS 1.0%
62,400 Career Education Corporation<F1> 1,420
--------
TELECOMMUNICATIONS 3.9%
48,900 Metromedia Fiber Network, Inc. <F1> 1,510
12,100 NEXTLINK Communications, Inc. <F1> 363
372,300 Syntellect, Inc. <F1> 838
177,100 TCSI Corporation<F1> 1,207
54,800 US LEC Corporation - Class A<F1> 1,329
--------
5,247
--------
Number Market Value
of Shares (in thousands)
- ----------- ---------------
TELECOMMUNICATIONS EQUIPMENT 3.3%
62,800 Dset Corporation<F1> $ 1,052
25,700 Excel Switching Corporation<F1> 549
82,300 Innova Corporation<F1> 1,409
60,200 REMEC, Inc. <F1> 1,497
--------
4,507
--------
TRANSPORTATION 2.7%
42,800 Coach USA, Inc. <F1> 2,030
102,100 Jevic Transportation, Inc. <F1> 1,583
--------
3,613
--------
VETERINARY HOSPITALS 1.8%
130,700 Veterinary Centers of America, Inc. <F1> 2,442
--------
WARRANTY & SERVICE CONTRACTS 0.5%
93,000 Warrantech Corporation <F1> 610
--------
Total Common Stock (Cost $97,916) 129,607
--------
Number
of Shares
(in thousands)
- ----------------
SHORT-TERM INVESTMENTS 6.5%
INVESTMENT COMPANIES 6.5%
2,609 Financial Square Prime Obligation Fund 2,609
6,183 Short-Term Investments Co.
Liquid Assets Portfolio 6,183
--------
Total Investment Companies (Cost $8,792) 8,792
--------
Total Short-Term Investments (Cost $8,792) 8,792
--------
Total Investments (Cost $106,708) 102.3% 138,399
--------
Liabilities, less Other Assets (2.3)% (3,047)
--------
TOTAL NET ASSETS 100.0% $135,352
========
<F1> Non-income producing
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market
of Shares Industry Value
- --------- -------- ----------
COMMON AND PREFERRED STOCKS 91.8%
ARGENTINA 1.6%
21,000 Banco Rio de La Plata
SA ADR <F1> Banks $ 288,750
12,000 Telefonica de Argentina SA ADR Telecommunications 460,854
37,000 Transportadora de
Gas del Sur SA ADR Natural Gas - Pipeline 421,848
-----------
1,171,452
-----------
AUSTRALIA 2.5%
59,000 Broken Hill Proprietary
Company Limited Diversified Operations 577,001
159,646 GIO Australia Holdings Limited Insurance 457,978
43,861 National Australia Bank Ltd. Banks 623,403
107,391 Pacific Dunlop Ltd. Diversified Manufacturing 198,847
-----------
1,857,229
-----------
AUSTRIA 2.4%
14,287 Bank Austria AG <F1> Banks 1,104,217
9,000 Boehler- Uddeholm AG Steel 663,523
-----------
1,767,740
-----------
BRAZIL 1.2%
15,000 Aracruz Celulose SA ADR Paper & Related Products 236,250
160,000 Rhodia-Ster SA GDR <F1> Chemicals 293,694
3,100 Telecomunicacoes Brasileiras
SA-Telebras ADR Telecommunications 377,467
-----------
907,411
-----------
CANADA 2.6%
20,000 The Loewen Group Inc. Funeral Services 567,500
45,500 Moore Corporation Ltd. Business Services 713,781
55,000 Noranda Forest, Inc. Building Products - Wood 369,132
50,000 Primex Forest Products Ltd. Building Products - Wood 253,429
-----------
1,903,842
-----------
CHILE 0.2%
10,000 Empresa Nacional de
Electricidad SA Electric Utility 174,375
-----------
CHINA 0.5%
57,000 Shandong Huaneng Power
Company Ltd. ADR Electric Utility 413,250
-----------
CZECH REPUBLIC 2.1%
10,500 The Czech Power Company <F1> Electric Power Company 315,631
85,000 Komercni Banka A.S. ADR Banks 947,300
26,000 Skoda Plzen AS <F1> Building & Construction 271,332
-----------
1,534,263
-----------
DENMARK 2.3%
2,400 A/S Forsikringsselskabet Codan Insurance 378,771
8,000 Tele Danmark AS Telecommunications 672,202
7,565 Unidanmark AS Financial Services 635,651
-----------
1,686,624
-----------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market
of Shares Industry Value
- --------- -------- ----------
FINLAND 1.9%
50,200 Kemira Oyj Chemicals $ 543,640
70,520 Merita Ltd. Financial Services 472,456
58,000 Tamro Oyj Drugs 415,192
-----------
1,431,288
-----------
FRANCE 6.5%
3,500 Bail Investissement Real Estate 525,195
13,300 Banque Nationale de Paris Banks 1,120,533
5,000 Compagnie de Saint Gobain Building & Construction 832,535
6,300 Elf Aquitaine SA Oil & Gas - International 826,005
2,150 Eridania Beghin-Say SA Agricultural Products 465,887
900 Fimalac Diversified Operations 103,194
15,000 Scor Insurance 924,264
-----------
4,797,613
-----------
GERMANY 3.7%
8,500 BASF AG Chemicals 378,462
23,000 Bilfinger & Berger Bau AG Building & Construction 775,426
8,200 Moebel Walther AG Retail - Furniture 347,284
14,500 Tarkett Sommer AG Building & Construction 500,976
1,500 Viag AG Diversified Manufacturing 759,823
-----------
2,761,971
-----------
GREAT BRITAIN 13.6%
346,949 The BICC Group PLC Wire & Cable Products 974,566
68,650 British Telecommunications PLC Telecommunications 746,088
260,000 BTR PLC Diversified Operations 867,267
254,850 Caradon PLC Building & Construction 824,521
384,209 Coats Viyella PLC Textiles 597,430
46,139 De La Rue PLC Office Supplies & Forms 221,019
267,850 Hillsdown Holdings PLC Food & Beverage 797,165
195,000 House Of Fraser PLC Retail 523,294
539 Hyder PLC Water, Power & Transport 8,670
137,501 LucasVarity PLC Auto & Truck Components 616,711
36,000 National Westminster Bank PLC Banks 720,498
158,367 Pilkington PLC Glass 332,311
209,823 Rolls-Royce PLC <F1> Aerospace & Aircraft 986,693
78,024 Southern Electric PLC Electricity - Distribution 725,989
139,000 Storehouse PLC Retail 574,048
40,159 United Utilities PLC Utility Services 560,668
-----------
10,076,938
-----------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market
of Shares Industry Value
- --------- -------- ---------
HONG KONG 5.9%
170,000 Cathay Pacific Airways Airlines $ 149,237
65,000 Cheung Kong Ltd. Real Estate 432,156
500,000 Dairy Farm International
Holdings Ltd. Retail - Food 640,000
652,000 Giordano International Limited Retail - Apparel/Shoes 151,509
175,000 Guoco Group Ltd. Financial Services 438,288
76,000 Hutchison Whampoa Limited Diversified Operations 469,968
175,976 Jardine Matheson Holdings Ltd. Diversified Operations 742,619
1,656,000 Pacific Ports Company Ltd. <F1> Traffic Management 423,297
142,000 Peregrine Investments
Holdings Limited Financial Services 78,827
742,500 Swire Pacific Ltd. Diversified Operations 632,645
54,390 Wing Lung Bank Banks 205,032
-----------
4,363,578
-----------
INDIA 1.4%
17,000 BSES Ltd. GDR Electric Utility 279,225
130,000 Crompton & Greaves GDR Electrical Equipment 240,500
100,000 Indian Aluminum Company
Ltd. GDR <F1> Metal & Mineral 250,000
37,000 Tata Engineering and Locomotive
Company Limited Automobile Manufacturing 269,175
-----------
1,038,900
-----------
INDONESIA 0.6%
175,000 PT Indosat Telecommunications 253,560
750,000 PT Pabrik Kertas Tjiwi Kimia Paper & Related Products 188,080
-----------
441,640
-----------
IRELAND 0.7%
53,480 Irish Life PLC Insurance 496,477
-----------
ISRAEL 0.9%
26,000 Koor Industries Limited ADR Telecommunications 657,038
-----------
ITALY 3.5%
186,000 Banca Commerciale Italiana Banks 940,523
65,000 Edison SPA Energy 545,839
375 La Rinascente SPA Retail - Food 3,756
416,240 Montedison SPA Food & Beverage 525,013
153,000 Telecom Italia Mobile SPA Telecommunications 555,202
-----------
2,570,333
-----------
JAPAN 5.7%
15,000 Aoyamma Trading Co., Ltd. Retail - Apparel/Shoes 346,250
39,000 Daichi Pharmaceutical Co., Ltd. Drugs 560,516
80,000 Daito Trust Construction Co. Real Estate 562,476
61,000 Daiwa Securities Company Limited Financial Services 230,833
103,000 Kyudenko Co., Ltd. Electrical Engineering 744,456
255,000 Marubeni Corporation Distribution / Wholesale 582,835
74,600 Nichido Fire & Marine Insurance Insurance 400,298
139,000 Nippon Fire & Marine Insurance Insurance 562,817
249,000 Showa Denko K.K. Chemicals 260,062
-----------
4,250,543
-----------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market
of Shares Industry Value
- --------- -------- ----------
MALAYSIA 1.5%
180,000 Malakoff Bhd Agricultural Operations $ 471,656
48,000 Malayan Banking Bhd Banks 141,176
80,000 O.Y.L. Industries Bhd Air & Heating Systems 226,737
300,000 Road Builder (M) Holdings Bhd Building & Contruction 264,705
-----------
1,104,274
-----------
MEXICO 0.5%
51,000 Elamex SA de CV <F1> Manufacturing - Misc 344,250
-----------
NETHERLANDS 3.2%
10,500 Ballast Nedam NV Building & Construction 496,285
6,000 Eriks Holdings NV Diversified Operations 409,797
27,500 European Vinyls Corporation
International NV Chemicals 537,611
14,500 Koninklijke Ahrend NV Office & Funiture 502,347
11,922 Koninklijke Pakhoed NV Storage & Transportation 436,635
-----------
2,382,675
-----------
NEW ZEALAND 1.9%
251,000 Air New Zealand Limited - Class BAir Transportation 355,642
781,575 Brierley Investments Limited Diversified Operations 451,652
81,329 Fisher & Paykel Industries Ltd. Consumer Appliances 241,768
104,000 Fletcher Challenge Energy Oil & Gas Exploration 354,814
-----------
1,403,876
-----------
NORWAY 2.7%
19,300 Aker RGI ASA Building Materials 339,002
16,100 Kvaerner ASA Building & Construction 714,541
16,700 Sparebanken NOR Banks 577,709
25,000 Odfjell ASA Marine Services 362,024
-----------
1,993,276
-----------
PAKISTAN 0.5%
5,000 Pakistan Telecom Corporation
144A GDR Telecommunications 348,309
-----------
PERU 0.5%
70,000 Banco Wiese ADR <F1> Banks 376,250
-----------
PHILIPPINES 0.4%
20,000 Metropolitan Bank & Trust
Company Banks 155,666
80,000 Philippine National Bank <F1> Banks 160,398
-----------
316,064
-----------
POLAND 0.4%
145,000 Mostostal-Export SA ADR Containers 337,256
-----------
PORTUGAL 0.7%
10,500 Electricidade de Portugal,
SA ADR <F1> Electric Utility 546,000
-----------
RUSSIA 1.5%
35,000 Irkutskenergo ADR Electric Utility 348,313
7,000 Lukoil Holding ADR Oil & Gas - International 461,349
9,000 Monsenergo Electricity - Distribution 318,168
-----------
1,127,830
-----------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market
of Shares Industry Value
- --------- -------- ----------
SINGAPORE 1.0%
173,000 City Developments Limited Real Estate $ 748,377
-----------
SLOVAK REPUBLIC 1.3%
13,000 Nafta Gbely AS Geological Exploration 293,493
30,000 Slovakofarma 144A GDR Health & Beauty Aids 238,500
33,000 VSZ AS <F1> Steel 401,681
-----------
933,674
-----------
SOUTH AFRICA 2.0%
140,000 Murray & Roberts Holdings
Limited Building & Construction 260,258
57,000 Sappi Limited Paper & Related Products 331,414
20,000 Southvaal Holdings Limited Gold Mining 435,082
8,500 Standard Bank Investment
Corporation Limited Banks 502,619
-----------
1,529,373
-----------
SOUTH KOREA 0.6%
79,213 Kookmin Bank Banks 480,031
-----------
SPAIN 5.6%
6,000 Catalana Occidente Insurance 412,164
5,141 Construcciones y Auxiliar de
Ferrocarriles SA Rail Transportation 231,057
11,300 Corporacion Bancaria de
Espana SA Banks 941,574
20,900 Corporacion Mapfre Insurance 820,011
53,500 Iberdrola SA Electricity - Distribution 859,987
16,500 Repsol SA Oil & Gas - International 903,946
-----------
4,168,739
-----------
SWEDEN 4.5%
64,000 ABB AB Rail Transit Systems 992,400
19,300 AssiDoman AB Paper & Related Products 518,736
7,000 Electrolux AB Consumer Appliances 651,262
19,000 Esselte Office Supplies & Forms 429,652
27,000 Getinge Industrier AB Medical Instruments 600,092
4,400 Svenska Handelsbanken Banks 199,565
-----------
3,391,707
-----------
SWITZERLAND 1.8%
1,500 Forbo Holding AG Building Products 770,031
558 Holderbank Building Products 590,760
-----------
1,360,791
-----------
THAILAND 1.4%
35,000 The Siam Cement Public
Company Limited Building Products - Cement 494,117
235,000 Thai Farmers Bank Public
Company Limited Banks 537,750
-----------
1,031,867
-----------
Total Common and Preferred Stocks (Cost $68,782,434) 68,227,124
-----------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market
of Shares Industry Value
- --------- -------- ----------
SENIOR SECURITIES 1.1%
14,000 Telmex 11.25% Prides 5/15/98 $ 789,250
-----------
Total Senior Securities (Cost $694,262) 789,250
-----------
SHORT-TERM INVESTMENTS 4.9%
INVESTMENT COMPANIES 2.2%
117,000 Korea Fund, Inc. 899,437
63 Thailand International Fund 729,540
-----------
Total Investment Companies (Cost $2,057,113) 1,628,977
-----------
Principal
Amount
(in thousands)
- ---------------
VARIABLE RATE DEMAND NOTES 2.7%
$2,033 Chase U.S. 2,032,901
-----------
Total Variable Rate Demand Notes (Cost $2,032,901) 2,032,901
-----------
Total Short-Term Investments (Cost $4,090,014) 3,661,878
-----------
Total Investments (Cost $73,566,710) 97.8% 72,678,252
-----------
Other Assets, Less Liabilities 2.2% 1,635,007
-----------
TOTAL NET ASSETS 100% $74,313,259
===========
<F1> Non-Income producing
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
BALANCED GROWTH FUND
GROWTH AND INCOME FUND
EQUITY INDEX FUND
GROWTH FUND
SPECIAL GROWTH FUND
EMERGING GROWTH FUND
MICROCAP FUND
INTERNATIONAL EQUITY FUND
NOTES TO THE FINANCIAL STATEMENTS
(UNAUDITED)
1. ORGANIZATION
Firstar 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. The Balanced Growth Fund
(formerly the Balanced Fund), the Growth and Income Fund, the Equity Index Fund,
the Growth Fund (formerly the MidCore Growth Fund), the Special Growth Fund, the
Emerging Growth Fund, the MicroCap Fund and the International Equity Fund (the
"Funds") are separate, diversified investment portfolios of the Company. The
Special Growth Fund commenced operations on December 28, 1989; the Growth and
Income Fund and Equity Index Fund commenced operations on December 29, 1989; the
Balanced Growth Fund commenced operations on March 30, 1992; the Growth Fund
commenced operations on December 29, 1992; the International Equity Fund
commenced operations on April 28, 1994; the MicroCap Fund commenced operations
on August 1, 1995; and the Emerging Growth Fund commenced operations on August
15, 1997. The objective of the Balanced Growth Fund is to achieve a balance of
capital appreciation and current income with relatively low volatility of
capital. The objective of the Growth and Income Fund is to seek both reasonable
income and long-term capital appreciation. The objective of the Equity Index
Fund is to seek returns, before Fund expenses, comparable to the price and yield
performance of publicly traded common stocks in the aggregate, as represented by
the S&P 500 Stock Index. The objective of the Growth Fund is capital
appreciation through investment in securities of medium- to large-sized
companies. The objective of the Special Growth Fund is capital appreciation
through investment in securities of medium-sized companies. The objective of the
Emerging Growth Fund is capital appreciation through investments in securities
of small-sized companies. The objective of the MicroCap Fund is capital
appreciation through investments in small companies. The objective of the
International Equity Fund is to seek capital appreciation through investment in
foreign securities which the Sub-Advisor believes are undervalued.
The costs, in thousands, incurred in connection with the organization,
initial registration and public offering of shares aggregating $21, $24 and $27
for the Emerging Growth, MicroCap and International Equity Funds, respectively,
have been paid by the Funds. These costs are being amortized over the period of
benefit, but not to exceed sixty months from each Fund's commencement of
operations.
The Company has issued two classes of Fund shares in each of the Funds:Series
A and Series Institutional. The Series A shares are subject to a 0.25% service
organization fee and an initial sales charge imposed at the time of purchase, in
accordance with the Funds' prospectus. The maximum sales charge is 4% of the
offering price or 4.16% of the net asset value. Each class of shares for each
Fund has identical rights and privileges except with respect to service
organization fees paid by Series A shares, voting rights on matters affecting a
single class of shares and the exchange privileges of each class of shares.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
a) Investment Valuation - Securities which are traded on a recognized stock
exchange are valued at the last sale price on the securities exchange on which
such securities are primarily traded or at the last sale price on a national
securities exchange. Exchange-traded securities for which there were no
transactions are valued at the current bid prices, with the exception of the
International Equity Fund, which is valued at the average of the current bid and
asked prices. Securities traded on only over-the-counter markets are valued on
the basis of closing over-the-counter bid prices. Instruments with a remaining
maturity of 60 days or less are valued on an amortized cost basis. Securities
for which market quotations are not readily available and other assets are
valued at fair value as determined by the investment adviser under the
supervision of the Board of Directors. Portfolio securities which are primarily
traded on foreign securities exchanges are generally valued at the preceding
closing values of such securities on their respective exchanges, except when an
occurrence subsequent to the time a value was so established is likely to have
changed such value. In such an event, the fair value of those securities is
determined through the consideration of other factors by or under the direction
of the Board of Directors. Quotations of foreign securities in foreign currency
are converted to United States ("U.S.") dollar equivalents using the foreign
exchange quotation in effect at the time net asset value is computed. Foreign
securities held by the International Equity Fund may trade in their local
markets on days the U.S. exchanges are closed, and the International Equity
Fund's net asset value may, therefore, change on days when investors may not
purchase or redeem Fund shares.
b) Federal Income Taxes - It is each Fund's policy to meet the requirements of
the Internal Revenue Code applicable to regulated investment companies and each
fund intends to distribute investment company net taxable income and net capital
gains to shareholders. Therefore, no federal income tax provision is required.
FIRSTAR FUNDS
(LOGO)
c) Income and Expenses - The Funds are charged for those expenses that are
directly attributable to each portfolio, such as advisory, administration 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. Net investment income other than class specific expenses, and
realized and unrealized gains and losses are allocated daily to each class of
shares based upon the relative net asset value of outstanding shares of each
class of shares at the beginning of the day (after adjusting for the current
day's capital share activity of the respective class).
d) Distributions to Shareowners - Dividends from net investment income are
declared and paid quarterly, for the Balanced Growth, Growth and Income and
Equity Index Funds and annually for the Growth, Special Growth, Emerging Growth,
Microcap and International Equity Funds. Distributions of net realized capital
gains, if any, will be declared at least annually.
e) Futures Contracts - The Equity Index Fund may utilize futures contracts to a
limited extent. The risk associated with the use of futures contracts includes
the possibility of an illiquid market. Futures contracts are valued based upon
their quoted daily settlement prices. Changes in initial settlement value are
accounted for as unrealized appreciation (depreciation) until the contracts are
terminated at which time realized gains and losses are recognized.
f) When-Issued Securities _ The Funds may purchase securities on a when-issued
or delayed delivery basis. Although the payment and interest terms of these
securities are established at the time the purchaser enters into the agreement,
these securities may be delivered and paid for at a future date, generally
within 45 days. The Fund records purchases of when-issued securities and
reflects the values of such securities in determining net asset value in the
same manner as other portfolio securities. The Fund segregates and maintains at
all times cash, cash equivalents, or other liquid securities in an amount at
least equal to the amount of outstanding commitments for when-issued securities.
g) 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.
h) Foreign Currency Translations - The books and records of the International
Equity Fund are maintained in U.S. dollars. Foreign currencies, investments, and
other assets and liabilities denominated in foreign currencies are translated
into U.S. dollars at the exchange rates prevailing at the end of the period, and
purchases and sales of investment securities, and income and expenses
denominated in foreign currencies are translated on the respective dates of such
transactions. Unrealized gains and losses on investments which result from
changes in foreign currency exchange rates have been included in the unrealized
net appreciation (depreciation) on investments. Foreign currency exchange gains
and losses included in net appreciation (depreciation) on foreign currency and
net realized gains and losses on foreign currency include foreign currency gains
and losses between trade date and settlement date on investment securities
transactions, foreign currency transactions and the difference between the
amounts of interest and dividends recorded on the books of the Fund and the
amount actually received. The portion of the foreign currency gains and losses
related to fluctuation in exchange rates between the initial purchase trade date
and subsequent sale trade date of a security is included in realized gains and
losses on investment transactions.
i) Other - Investment and shareowner transactions are recorded on the trade
date. The Funds determine 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 or as
soon as information is available to the Funds, and interest income is recognized
on an accrual basis. Generally accepted accounting principles require that
permanent financial reporting and tax differences be reclassified to capital
stock.
FIRSTAR FUNDS
(LOGO)
3. CAPITAL SHARE TRANSACTIONS
Transactions, in thousands, of shares of the Funds were as follows:
<TABLE>
<CAPTION>
BALANCED GROWTH GROWTH AND INCOME EQUITY INDEX
FUND FUND FUND
-------------------- --------------------- -------------------
Amount Shares Amount Shares Amount Shares
------- ------- ------- ------- ------- -------
SIX MONTHS ENDED APRIL 30, 1998: <C> <C> <C> <C> <C> <C>
Series A shares:
Shares sold $11,417 387 $28,823 669 $16,229 233
Shares issued to owners in
reinvestment of dividends 4,081 145 5,156 129 1,894 29
Shares redeemed (3,191) (107) (8,803) (207) (5,634) (82)
-------- -------- -------- -------- -------- --------
Net increase $12,307 425 $25,176 591 12,489 180
======== ======= ======== ======== ======== ========
Series Institutional shares:
Shares sold $31,038 1,041 $75,697 1,775 $88,137 1,266
Shares issued to owners in
revinvestment of dividends 15,097 535 12,949 323 7,404 112
Shares redeemed (29,426) (1,006) (62,069) (1,451) (38,185) (555)
-------- -------- -------- -------- -------- --------
Net increase $16,709 570 $26,577 627 $57,356 823
======== ======= ======== ======== ======== ========
YEAR ENDED OCTOBER 31, 1997:
Series A shares:
Shares sold $15,346 529 $43,063 1,218 $30,916 529
Shares issued to owners in
reinvestment of dividends 2,448 89 6,930 218 1,307 23
Shares redeemed (6,070) (211) (11,682) (328) (8,112) (137)
-------- -------- -------- -------- -------- --------
Net increase $11,724 407 $38,311 1,108 $24,111 415
======== ======= ======== ======== ======== ========
Series Institutional shares:
Shares sold $67,590 2,347 $139,658 3,995 $133,310 2,298
Shares issued to owners in
revinvestment of dividends 10,877 394 20,195 632 6,369 115
Shares redeemed (57,431) (1,976) (78,849) (2,165) (95,857) (1,703)
-------- -------- -------- -------- -------- --------
Net increase $21,036 765 $81,004 2,462 $43,822 710
======== ======= ======== ======== ======== ========
</TABLE>
YEAR ENDED OCTOBER 31, 1996:
Series A shares Shares sold $ 7,996 296 $22,872 751 $19,090 418
FIRSTAR FUNDS
(LOGO)
3. CAPITAL SHARE TRANSACTIONS (CONT.)
Transactions, in thousands, of shares of the Funds were as follows:
<TABLE>
<CAPTION>
GROWTH SPECIAL GROWTH EMERGING GROWTH
FUND FUND FUND
-------------------- --------------------- -------------------
Amount Shares Amount Shares Amount Shares
------- ------- ------- ------- ------- -------
SIX MONTHS ENDED APRIL 30, 1998: <C> <C> <C> <C> <C> <C>
Series A shares:
Shares sold $ 5,723 167 $21,285 505 $ 4,761 445
Shares issued to owners in
reinvestment of dividends 3,577 118 14,452 357 45 5
Shares redeemed (2,160) (63) (19,671) (463) (651) (61)
-------- -------- -------- -------- -------- --------
Net increase $ 7,140 222 $16,066 399 $ 4,155 389
======== ======= ======== ======== ======== ========
Series Institutional shares:
Shares sold $25,170 752 $61,192 1,436 $13,445 1,296
Shares issued to owners in
revinvestment of dividends 20,361 665 50,064 1,228 307 32
Shares redeemed (43,645) (1,289) (115,095) (2,703) (2,924) (283)
-------- -------- -------- -------- -------- --------
Net increase $ 1,886 128 $(3,839) (39) $10,828 1,045
======== ======= ======== ======== ======== ========
PERIOD ENDED OCTOBER 31, 1997:<F1>
Series A shares:
Shares sold $ 8,130 250 $ 39,485 949 $ 5,403 525
Shares issued to owners in
reinvestment of dividends 727 24 13,955 370 - -
Shares redeemed (3,796) (113) (28,518) (683) (60) (6)
-------- -------- -------- -------- -------- --------
Net increase $ 5,061 161 $ 24,922 636 $ 5,343 519
======== ======= ======== ======== ======== ========
Series Institutional shares:
Shares sold $48,607 1,489 $164,735 3,973 $46,878 4,670
Shares issued to owners in
revinvestment of dividends 5,140 168 53,786 1,420 - -
Shares redeemed (53,475) (1,641) (181,632) (4,277) (118) (11)
-------- -------- -------- -------- -------- --------
Net increase $ 272 16 $ 36,889 1,116 $46,760 4,659
======== ======= ======== ======== ======== ========
</TABLE>
<F1> Capital share activity is for the fiscal year ended October 31, 1997 for
the Growth Fund and Special Growth Fund, and for the period August 15, 1997
to October 31, 1997 for the Emerging Growth Fund.
FIRSTAR FUNDS
(LOGO)
3. CAPITAL SHARE TRANSACTIONS (CONT.)
Transactions, in thousands, of shares of the Funds were as follows:
MICROCAP INTERNATIONAL
FUND EQUITY FUND
----------------- ----------------
Amount Shares Amount Shares
------- ------- ------- -------
SIX MONTHS ENDED APRIL 30, 1998:
Series A shares:
Shares sold $ 37 2 $ 1,987 109
Shares issued to owners in
reinvestment of dividends 1,570 99 163 9
Shares redeemed (979) (62) (1,125) (63)
-------- -------- -------- --------
Net increase $ 628 39 $ 1,025 55
======== ======== ======== ========
Series Institutional shares:
Shares sold $ 1,750 121 $ 8,175 448
Shares issued to owners in
revinvestment of dividends 7,878 492 1,085 63
Shares redeemed (5,791) (356) (3,449) (190)
-------- -------- -------- --------
Net increase $ 3,837 257 $ 5,811 321
======== ======== ======== ========
YEAR ENDED OCTOBER 31, 1997:
Series A shares:
Shares sold $ 6,446 421 $ 4,828 226
Shares issued to owners in
reinvestment of dividends 1,536 112 116 6
Shares redeemed (2,209) (146) (1,624) (79)
-------- -------- -------- --------
Net increase $ 5,773 387 $ 3,320 153
======== ======== ======== ========
Series Institutional shares:
Shares sold $22,484 1,468 $27,533 1,361
Shares issued to owners in
revinvestment of dividends 9,877 717 1,149 59
Shares redeemed (5,872) (371) (9,612) (476)
-------- -------- -------- --------
Net increase $26,489 1,814 $19,070 944
======== ======== ======== ========
FIRSTAR FUNDS
(LOGO)
4. INVESTMENT TRANSACTIONS
The aggregate purchases and sales, in thousands, of securities, excluding
short-term investments, for the Funds for the period ended April 30, 1998, were
as follows:
<TABLE>
<CAPTION>
BALANCED GROWTH AND EQUITY GROWTH SPECIAL EMERGING MICROCAP INTERNATIONAL
GROWTH FUND INCOME FUND INDEX FUND FUND GROWTH FUND GROWTH FUND FUND EQUITY FUND
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Purchases: <C> <C> <C> <C> <C> <C> <C> <C>
U.S. Government $11,934 - - - - - - -
Other 55,945 $109,763 $75,120 $42,646 $313,983 $49,347 $88,503 $18,517
Sales:
U.S. Government 1,329 - - - - - - -
Other 50,501 102,715 9,200 62,859 366,844 32,865 102,260 11,849
</TABLE>
Equity Index Fund transactions in futures contracts during the period October
31, 1997 to April 30, 1998, in thousands, were as follows:
AGGREGATE
NUMBER OF FACE VALUE OF
CONTRACTS CONTRACTS <F1>
---------- ---------------
Outstanding at October 31, 1997 110 $ 25,454
Contracts opened 542 138,827
Contracts closed (552) (137,052)
------ ----------
Outstanding at April 30, 1998 100 $ 27,229
====== ==========
<F1> The aggregate face value of contracts is computed on the date each contract
is opened.
The number of futures contracts and gross unrealized appreciation, in thousands,
as of April 30, 1998, were as follows:
NUMBER OF UNREALIZED
CONTRACTS APPRECIATION
---------- --------------
S&P 500 Financial Futures
Contract
Expiration date 6/98 <F2> 100 $751
<F2> At April 30, 1998, U.S. Treasury Bills of $1,576, in thousands, were held
as collateral in an initial margin account in connection with open futures
contracts held by the Equity Index Fund.
At April 30, 1998, gross unrealized appreciation and depreciation of investments
for federal tax purposes, in thousands, were as follows:
<TABLE>
<CAPTION>
BALANCED GROWTH AND EQUITY GROWTH SPECIAL EMERGING MICROCAP INTERNATIONAL
GROWTH FUND INCOME FUND INDEX FUND FUND GROWTH FUND GROWTH FUND FUND EQUITY FUND
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<C> <C> <C> <C> <C> <C> <C> <C>
APPRECIATION $55,533 $244,246 $241,010 $84,340 $268,337 $11,042 $36,314 $9,001
(DEPRECIATION) (1,579) (1,792) (5,818) (353) (6,161) (2,468) (4,625) (9,890)
-------- -------- -------- -------- -------- -------- -------- --------
NET UNREALIZED APPRECIATION
(DEPRECIATION) ON
INVESTMENTS $53,954 $242,454 $235,192 $83,987 $262,176 $ 8,574 $31,689 $ (889)
======== ======== ======== ======== ======== ======== ======== ========
</TABLE>
At April 30, 1998, the cost of investments, in thousands, for federal income tax
purposes was $188,604, $402,906, $308,223, $141,358, $503,827, $68,416, $106,710
and $73,567 for the Balanced Growth, Growth and Income, Equity Index, Growth,
Special Growth, Emerging Growth, MicroCap and International Equity Funds,
respectively.
5. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Funds have entered into an Investment Advisory Agreement with Firstar
Investment Research & Management Company, LLC ("FIRMCO"). FIRMCO is a subsidiary
of Firstar Corporation, a publicly held bank holding company. Pursuant to its
Advisory Agreement with the Funds, the Adviser is entitled to receive a fee,
calculated daily and payable monthly, at the annual rates presented below as
applied to each Fund's daily net assets. Effective September 2, 1997
FIRMCOentered into a Sub-Advisory Agreement with Hansberger Global Investors
(the "Sub-Adviser") for the International Equity Fund. Prior to September 2,
1997, FIRMCOhad entered into a sub-advisory agreement with State Street Global
Advisors for the International Equity Fund. Pursuant to its Sub-Advisory
Agreement with FIRMCO, the Sub-Adviser is entitled to receive a fee from FIRMCO,
calculated daily and payable monthly, at the annual rate presented below as
applied to the International Equity Fund's daily net assets.
FIRSTAR FUNDS
(LOGO)
For the period ended April 30, 1998, FIRMCO voluntarily waived the following
fees, in thousands, by Fund:
<TABLE>
<CAPTION>
BALANCED GROWTH AND EQUITY GROWTH SPECIAL EMERGING MICROCAP INTERNATIONAL
GROWTH FUND INCOME FUND INDEX FUND FUND GROWTH FUND GROWTH FUND FUND EQUITY FUND
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<C> <C> <C> <C> <C> <C> <C> <C>
Annual Rate 0.75% 0.75% 0.25% 0.75% 0.75% 0.75% 1.50% <F1><F2>
Fees waived $188 - - - - $67 - $147
</TABLE>
<F1> FIRMCO is entitled to receive a fee, calculated daily and payable monthly,
at the annual rate of 1.50% of the Fund's first $25 million of average
daily net assets, 1.25% on the next $75 million and 1.10% of the Fund's
average daily net assets in excess of $100 million.
<F2> Pursuant to its Sub-Advisory Agreement with FIRMCO, the Sub-Adviser is
entitled to receive a fee from FIRMCO, calculated daily and payable
monthly, at the annual rate of 0.75% of the Fund's first $25 million of
average daily net assets, 0.50% on the next $75 million and 0.35% of the
Fund's average daily net assets in excess of $100 million.
Chase Manhattan Bank serves as sub-custodian for the International Equity
Fund. Firstar Trust Company, an affiliate of FIRMCO, serves as custodian,
accounting services agent and transfer agent for all 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, 1998, $82, $207, $169, $80, $267, $23, $44 and $24 of administration
fees, in thousands, were voluntarily waived for the Balanced Growth, Growth and
Income, Equity Index, Growth, Special Growth, Emerging Growth, MicroCap and
International Equity Funds, respectively.
The Company has entered into Servicing Agreements with certain Service
Organizations, including FIRMCO affiliates, for the Series A class of shares.
The Service Organizations are entitled to receive fees from the Funds up to the
annual rate of 0.25% of the average daily net asset value of the Series A Shares
for certain support and/or distribution services to customers of the Service
Organizations who are beneficial owners of Fund Series A Shares. These services
may include assisting customers in processing purchase, exchange and redemption
requests; processing dividend and distribution payments from the Funds; and
providing information periodically to customers showing their positions in Fund
Series A Shares. Service Organization fees, in thousands, incurred by the
Balanced Growth, Growth and Income, Equity Index, Growth, Special Growth,
Emerging Growth, MicroCap and International Equity Funds aggregated $63, $186,
$111, $36, $193, $9, $20 and $9 respectively, for the period ended April 30,
1998.
Each Director of the Company who is not affiliated with FIRMCO receives a 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
Firstar 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 Firstar
Funds or 90-day U.S. Treasury bills. The Funds maintain their proportionate
share of the Company's liability for deferred fees.
6. FOREIGN SECURITIES
Investing in securities of foreign companies and foreign governments involves
special risks and considerations not typically associated with investing in U.S.
companies and the U.S. Government. These risks include revaluation of currencies
and future adverse political and economic developments. Moreover, securities of
many foreign companies and foreign governments and their markets may be less
liquid and their prices more volatile than those of securities of comparable
U.S. companies and the U.S. Government.
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Firstar Funds are available through:
- - the Firstar Funds Center,
- - Investment Specialists who are registered
representatives of Firstar 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
Firstar Funds Center
615 East Michigan Street
P.O. Box 3011
Milwaukee, WI 53201-3011
www.firstarfunds.com
TO GET THERE, START HERE.SM
FIRSTAR FUNDS
(LOGO)
Form #40-0249 6/98
--------------
RETAIL CLASS
--------------
BALANCED GROWTH FUND
GROWTH AND INCOME FUND
EQUITY INDEX FUND
GROWTH FUND
SPECIAL GROWTH FUND
EMERGING GROWTH FUND
MICROCAP FUND
INTERNATIONAL EQUITY FUND
SEMI-ANNUAL REPORT
APRIL 30, 1998
TO GET THERE, START HERE.SM
FIRSTAR FUNDS
(LOGO)
NOTICE TO INVESTORS
- Shares of Firstar 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.
- - Firstar Bank affiliates serve as investment 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.......................................................1-2
FIRSTAR BALANCED GROWTH FUND............................................4-5
FIRSTAR GROWTH AND INCOME FUND..........................................6-7
FIRSTAR EQUITY INDEX FUND...............................................8-9
FIRSTAR GROWTH FUND...................................................10-11
FIRSTAR SPECIAL GROWTH FUND...........................................12-13
FIRSTAR EMERGING GROWTH FUND..........................................14-15
FIRSTAR MICROCAP FUND.................................................16-17
FIRSTAR INTERNATIONAL EQUITY FUND.....................................18-19
STATEMENT OF ASSETS AND LIABILITIES...................................20-21
STATEMENT OF CHANGES IN NET ASSETS....................................22-24
FINANCIAL HIGHLIGHTS..................................................25-32
STATEMENT OF OPERATIONS...............................................33-34
SCHEDULE OF INVESTMENTS...............................................35-62
NOTES TO THE FINANCIAL STATEMENTS.....................................63-69
REPORT OF INDEPENDENT ACCOUNTANTS........................................57
FIRSTAR FUNDS
(LOGO)
June 1998
DEAR SHAREOWNER:
INVESTMENT REVIEW
During the first half of our fiscal year, financial markets were strong,
rewarding investors that stayed the course. Robust U.S. employment gains, rising
incomes and declining levels of inflation drove consumer confidence to record
highs. Gains in consumer spending (responsible for two-thirds of U.S. economic
activity) on everything from housing to apparel to financial services kept U.S.
economic growth at impressive levels.
Despite solid economic underpinnings, the Asian financial crisis and the fear
that inflation is "just around the corner" will sustain above-average volatility
in the financial markets. However, even with all the ups and downs, we continue
to believe the long-term return potential of stocks and high quality bonds calls
for a consistent approach to asset allocation. Remember, it's time, not timing,
and a disciplined approach to asset allocation that wins the investment
marathon.
The Taxpayer Relief Act of 1997 created additional opportunities for IRA
investors to more aggressively prepare for their retirement. Many of you may
have already taken advantage of the new tax legislation by starting a Roth IRA.
Now, more than ever, it's important to consult your tax adviser to understand
how you can best benefit from favorable new tax laws.
The renaming of our fund family - from Portico to Firstar Funds - on February 1,
1998 aligned us more closely with our parent company and eliminated any
confusion over the relationship between the two organizations. Many enhancements
have been made to Firstar Funds literature as well as to the Firstar Funds' web
site at www.firstarfunds.com. Newly introduced, Firstar Funds Direct allows you
to access information regarding your account(s) on-line. Look for transactional
capabilities to become available on-line this summer. These are just a few of
the ways we are adding value to our servicing efforts. Our goal is to make it
easy and convenient for you to access your account(s) - 24 hours a day, seven
days a week.
MARKET OUTLOOK
Looking ahead, our market forecast is predicated on the following trends:
- -The Asian "flu" has devolved to "pneumonia."
- -The absence of a Japanese economic "tugboat" to pull the Pacific Rim out of
its decline (a la the U.S. in the 1995 Mexican crisis) will deepen and
lengthen the region's financial woes.
- -Reduced demand for U.S. exports due to the dollar's strength and a surge in
Asian imports will balloon the U.S. trade deficit to $200-$250 billion in
1998, creating a drag on the U.S. economy equivalent to 2%-3% of GDP.
- -Rising U.S. wages along with today's competitive, no-pricing-power environment
are squeezing corporate profits and increasing the "urge to merge" as
companies have no alternative but to acquire their competitors and then cut
costs to grow earnings.
- -Competition from imports and global overcapacity in manufacturing (e.g. autos)
and commodities (e.g. oil) will keep U.S. inflation subdued with the Consumer
Price Index (CPI) rising just 1%-1.5% in 1998.
- -Low unemployment and rising "real" (inflation-adjusted) wages in the U.S. are
fueling a boom in consumer spending, sustaining the current U.S. economic
expansion (now in its eighth year) despite the weakness in U.S. foreign trade
and the drag from a federal budget surplus.
- -After the first quarter's strong 4.8% advance in real GDP, U.S. economic
growth will slow to a 2%-3% rate, bringing the full-year 1998 gain in economic
output to approximately 3%.
- -Prospects for continued low levels of inflation and a slowdown in U.S.
economic growth make today's historically high inflation-adjusted bond yields
very attractive.
- -U.S. bond market supply/demand trends favor lower interest rates as a likely
$75 billion swing in the federal budget from deficit to surplus reduces supply
while a strong dollar attracts foreign capital and increases demand.
- -A profits squeeze for the big, multi-national U.S. companies due to rising
wages, Asia's woes and a strong dollar could signal a cyclical peak in the
relative outperformance of large company stocks as their earnings growth slows
and the price-to-earnings multiples awarded their stocks are compressed.
- -With stock performance driven by just two variables - earnings and the
multiple investors are willing to put on those earnings - prospects for small
and medium-sized company stocks are getting brighter given their underexposure
to Asia, improved relative earnings growth and attractive valuations (i.e.
price-to-earnings multiples).
- -During the next several months, we expect one, perhaps two, stock market
declines of 10%-15%. Yet despite the likelihood of increased market volatility
in the near-term, we are sticking with our beginning-of-the-year outlook for
above-average stock market returns in calendar 1998.
IN SUMMARY
Looking ahead, we see continued moderate economic growth and low levels of
inflation. Although market volatility may heighten anxiety levels, we believe
1998 will be another good year for investors. Finally, given the market's
tremendous gains over the past few years, it may be an opportune time to review
your portfolio. Uneven gains can sidetrack a well-planned investment strategy.
Make sure you are properly diversified.
As always, we appreciate your confidence in the Firstar Funds and encourage you
to read the portfolio reviews that follow.
(photo) (photo)
J. SCOTT HARKNESS, CFA MARY ELLEN STANEK, CFA
Chairman/Chief President
Investment Officer
Firstar Investment Research & Management Company, LLC (FIRMCO)
FIRSTAR FUNDS
(logo)
This page intentionally left blank
FIRSTARFUNDS
(logo)
- -------------------------------------------------------------------------------
BALANCED GROWTH FUND
- -------------------------------------------------------------------------------
Firstar Balanced Growth Fund has gotten off to another good start, returning
+13.4% (no-load) in the first six months of the fiscal year. While the absolute
return is good, our decision to overweight the smaller- and medium-sized
companies which dominate the Standard & Poor's Mid-Cap 400 and Standard &
Poor's Small-Cap 600, continued to hamper relative performance in the first
half of your Fund's fiscal year. As has been the consistent pattern over the
last three years, the Standard & Poor's 500 solidly out-performed the Standard
& Poor's 400 and Standard & Poor's 600 with returns of +22.5%, +19.2 % and
+13.2 %, respectively. During this same time period, the average balanced fund
returned +12.2% as measured by Lipper Analytical Services, a mutual fund rating
service. As of the end of April, the Fund was invested 60% in common stocks,
34% in bonds and 6% in money markets.
The equity portion of the Fund continues to be overweighted in finance, consumer
cyclicals, technology and healthcare. Both the finance and healthcare sectors
have benefited from the aging baby-boomer, who is consuming more financial and
healthcare services. Financial problems in Asia have fueled lower interest
rates, as well as lower prices on imported goods. This, combined with very
strong employment growth, has led to robust consumer spending. Consumer
cyclicals have been the net beneficiary. Finally, technology continues to fuel
strong productivity and remains one of the fastest growing segments of our
economy.
In terms of equity holdings, companies with market values greater than $3
billion represent 35% of the portfolio, while companies with market values
smaller than $3 billion represent 30% of the portfolio (20% equivalent in size
to the Standard & Poor's 400 and 10% equivalent in size to the Standard & Poor's
600). Although we have been wrong to date with our small-cap bet, we will
continue to stay the course with this asset allocation. From a valuation
perspective, the relative growth of the smaller companies is much greater while
the share prices, as measured by price to earnings ratios, are much lower. We
like the trade-off of more growth in earnings for a lower valuation price.
During the first calendar quarter, the companies in your portfolio had average
earnings gains of 17%, more than triple that of the S&P 500.
The objective of the fixed-income component of Firstar Balanced Growth Fund is
to provide an annual rate of total return comparable to the return of the Lehman
Brothers Government/Corporate Bond Index. A slight decrease in interest rates
(10-year U.S. Treasury rates decreased by 0.1% to 5.7%) resulted in a six month
total return for the index of +3.64%. While not as impressive as the stock
market's return, this represents a generous real rate of return when compared to
inflation, which rose just one half of one percent.
The Fund's bond holdings have an average maturity of 10.2 years and a duration
of 5.4 years. (Duration measures the price sensitivity of the Fund's bond
holdings to changes in interest rates. The longer the duration, the greater the
price swing for a given move in rates.) The Fund's holdings are high quality
with over two-thirds (69%) of the fixed-income segment invested in securities
rated Aaa/AAA or higher by Moody's or Standard & Poor's. (The Fund's asset-
backed holdings are all rated Aaa/AAA.) In the bond market, like the equity
market, we follow a research-intensive selection process. Corporate sectors that
we currently favor include finance, banking, and brokerage and dollar-
denominated international issues.
We remain optimistic for the remainder of the fiscal year and appreciate your
continued confidence in Firstar Balanced Growth Fund.
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
MARIAN E. ZENTMYER, CFA, CFP, Senior Vice President and Senior Portfolio Manager
of Firstar Investment Research & Management Company, LLC (FIRMCO) AND TERESA R.
WESTMAN, CFA, Senior Portfolio Manager co-manage the Fund, Teresa since its
inception on March 30, 1992, and Marian since June 19, 1996. Marian has been
with Firstar since 1982 and has 20 years of investment management experience.
She received her BA from Stanford University in 1978. Teresa has been with
Firstar since 1987 and has 11 years of investment management experience. Teresa
received her BA from Augustana College in 1985 and her MBA from the University
of Chicago in 1991. Marian is a Chartered Financial Analyst and a Certified
Financial Planner. Teresa is a Chartered Financial Analyst.
(PHOTO) (PHOTO)
MARIAN E. ZENTMYER, TERESA R. WESTMAN, CFA
CFA, CFP
FIRSTAR FUNDS
(LOGO)
FIRSTAR BALANCED FIRSTAR BALANCED
GROWTH FUND - GROWTH FUND -
A - NO LOAD A - LOAD <F1>
------------------ ------------------
3/30/92 10,000 9,600
10/92 10,372 9,958
10/93 11,771 11,302
10/94 11,662 11,197
10/95 13,941 13,386
10/96 15,655 15,032
10/97 18,484 17,748
4/98 20,956 20,121
This chart assumes an initial investment of $10,000 made on 3/30/92 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Returns shown include the reinvestment of all dividends
and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
- -------------------------------------------------------------------------------
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1998
- -------------------------------------------------------------------------------
Since
Fiscal Inception
Year-to-Date 1 Year 3 Years 5 Years 3/30/92
- -------------------------------------------------------------------------------
FIRSTAR BALANCED
GROWTH FUND -
A - NO LOAD 13.4 29.8 19.2 14.1 12.9
FIRSTAR BALANCED
GROWTH FUND -
A - LOAD <F1> 8.8 24.6 17.5 13.2 12.2
LIPPER BALANCED
FUND INDEX<F2> 12.2 26.1 19.4 14.2 13.7
S&P 500 STOCK INDEX<F3> 22.5 41.1 32.0 23.3 21.1
- -------------------------------------------------------------------------------
<F1> Reflects maximum sales charge of 4.00%.
<F2> The Lipper Balanced Fund Index is composed of the 30 largest mutual funds
whose primary objective is to conserve principal by maintaining a balanced
portfolio of stocks and bonds.
<F3> The S&P500 Stock Index is an 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.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Firstar Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. The load performance for
the Series A Shares has been restated to reflect the impact of the sales charge.
Series A performance prior to January 10, 1995, does not reflect the service
organization fees. If service organization fees had been reflected, performance
would be reduced. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
A = Series A (retail class)
TOP 5 EQUITY HOLDINGS 4/30/98
- -------------------------------------
TYCO INTERNATIONAL, LTD. 1.5%
- -------------------------------------
SUNGARD DATA SYSTEMS, INC. 1.2%
- -------------------------------------
MGIC INVESTMENT CORPORATION 1.1%
- -------------------------------------
PROTECTIVE LIFE CORPORATION 0.9%
- -------------------------------------
WARNER LAMBERT COMPANY 0.9%
- -------------------------------------
Portfolio holdings are subject to change
and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/98
- -------------------------------------
$246,235,125
- -------------------------------------
FIRSTAR FUNDS
(LOGO)
- --------------------------------------------------------------------------------
GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
Helped by a strong overall market environment, Firstar Growth & Income Fund is
off to an attractive start for the first half of the fiscal year returning
+22.9% (no-load) - outpacing the returns of the Standard & Poor's 500, the
Lipper Growth & Income Index and the Lipper Equity Income Index which returned
+22.5%, +17.0% and +16.3%, respectively.
Strong performance came from basic blocking and tackling. The Fund's largest
holdings were also some of our best performing stocks, while those that did not
meet our expectations fundamentally were fairly small positions. Specifically,
the overweighted position in finance and consumer cyclicals contributed
significantly to the Fund's overall return as they were among the strongest
performing sectors of the Standard & Poor's 500 over the last six months.
Our emphasis in the financial area has been on companies that are asset
accumulators, or have a significant portion of fee income driving their results.
Examples include Northern Trust, Mellon Bank, Western National (recently
eliminated when purchased by American General) and Bank of New York. These
holdings, which fared well in 1997, have continued to do well in 1998 as merger
activity has increased in the group, generating a new wave of consolidation and
interest.
Consumer cyclicals were another strong sector for your portfolio, up +26% for
the six-month time period. This sector was the beneficiary of a strong consumer.
The consumer is experiencing very little inflation due to lower oil prices and
declining prices on imports, while employment levels are at all-time highs. In
addition, turmoil in Asia has led to lower interest rates, allowing the consumer
to once again refinance their home mortgage providing a little extra monthly
spending money. This led to strong performance in The Gap +41%, Hasbro +45% and
Warnaco +50%. We continue to emphasize the sector as the consumer continues to
benefit from very favorable inflation and employment trends.
In the consumer staples sector, we continue to concentrate your portfolio
holdings in pharmaceutical companies. Aging demographics, medical cost
containment and significant new breakthroughs in drug discoveries have led to
increased consumption of pharmaceuticals. Our holdings in this area include
Pfizer and Warner Lambert, which were up 53% and 40%, respectively, for the six-
month period. See page 40 for a complete listing of portfolio holdings.
With the Standard & Poor's 500 at 1130, the market is reflecting economic
nirvana. The turmoil in Asia has lowered inflation expectations, while the U.S.
economy continues to grow at a faster than expected pace. In other words,
optimism is currently priced into share prices. Given the positive fundamentals
and on-going new cash investment, we continue to believe the stock market has an
upward bias; however, we would not be surprised to see greater volatility for
the balance of the year as share prices correct at the hint of bad news.
As always, by sticking with our proven buy and sell disciplines, we believe
Firstar Growth and Income Fund can continue to provide you with attractive
returns. We thank you for your continued support.
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
MARIAN E. ZENTMYER, CFA, CFP, Senior Vice President and Senior Portfolio Manager
of Firstar Investment Research & Management Company, LLC (FIRMCO) AND MAYA K.
BITTAR, CFA, Vice President and Senior Portfolio Manager co-manage the Fund,
Marian since February 22, 1993, and Maya since October 1, 1995. Marian has been
with Firstar since 1982 and has 20 years of investment management experience.
She received her BA from Stanford University in 1978. Maya has been with Firstar
since 1993 and has six years of investment management experience. She received
her BBA in 1985 and her MBA and MS in 1991from the University of Wisconsin.
Marian is a Chartered Financial Analyst and a Certified Financial Planner. Maya
is a Chartered Financial Analyst.
(photo) (photo)
MARIAN E. ZENTMYER, MAYA K. BITTAR, CFA
CFA, CFP
FIRSTAR FUNDS
(LOGO)
FIRSTAR GROWTH FIRSTAR GROWTH
AND INCOME FUND - AND INCOME FUND -
A - NO LOAD A - LOAD <F1>
------------------ ------------------
10/29/89 10,000 9,600
10/90 9,304 8,933
10/91 11,688 11,223
10/92 12,368 11,875
10/93 13,596 13,054
10/94 13,846 13,294
10/95 17,273 16,585
10/96 21,870 20,999
10/97 28,534 27,397
4/98 35,063 33,665
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
- -------------------------------------------------------------------------------
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1998
- -------------------------------------------------------------------------------
Since
Fiscal Inception
Year-to-Date 1 Year 3 Years 5 Years 12/29/89
- -------------------------------------------------------------------------------
FIRSTAR GROWTH AND
INCOME FUND -
A - NO LOAD 22.9 43.5 31.8 21.6 16.2
FIRSTAR GROWTH AND
INCOME FUND -
A - LOAD <F1> 18.0 37.7 30.0 20.6 15.7
S&P 500 STOCK INDEX<F2> 22.5 41.1 32.0 23.3 17.9
- -------------------------------------------------------------------------------
<F1> Reflects maximum sales charge of 4.00%.
<F2> The S&P 500 Stock Index is an 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.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Firstar Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. The load performance for
Series A shares has been restated to reflect the impact of the sales charge.
Series A performance prior to January 10, 1995, does not reflect the service
organization fees. If service organization fees had been reflected, performance
would be reduced. Performance reflects fee waivers in effect. In the absence
of fee waivers, total return would be reduced.
A = Series A (retail class)
TOP 5 HOLDINGS 4/30/98
- ---------------------------------------
TYCO INTERNATIONAL, LTD. 3.8%
- ---------------------------------------
GAP, INC. 3.4%
- ---------------------------------------
MCKESSON CORPORATION 3.1%
- ---------------------------------------
XEROX CORPORATION 2.8%
- ---------------------------------------
INTERPUBLIC GROUP OF
COMPANIES, INC. 2.6%
- ---------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/98
- ---------------------------------------
$641,884,239
- ---------------------------------------
FIRSTAR FUNDS
(LOGO)
- --------------------------------------------------------------------------------
EQUITY INDEX FUND
- --------------------------------------------------------------------------------
Firstar Equity Index Fund seeks to provide investment returns, before Fund
expenses, comparable to the price and yield performance of publicly traded
stocks in the aggregate, as represented by the S&P 500 Index. The Fund does not
use traditional methods of financial and market analysis when making purchase
and sale decisions; rather, the Fund invests primarily in common stocks that
comprise the S&P 500 Index in proportion to their relative capitalization and
sector weightings.
Firstar Equity Index Fund's net asset value of $75.33 on April 30, 1998
represents a total return of +22.1% (no-load) for the six months then ended,
which was comparable to the S&P 500's return of +22.5% over the same period.
We believe that by applying a capitalization weighting and sector balancing
technique that matches the structure of the S&P 500, as well as using S&P 500
futures contracts to equitize the cash, the Fund should reasonably track the
performance of the index.
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
DANIEL A. TRANCHITA, CFA Vice President and Senior Portfolio Manager of Firstar
Investment Research & Management Company, LLC (FIRMCO) and CARL J. SMITH,
Assistant Vice President and Portfolio Manager co-manage the Fund - Dan since
July 1, 1992 and Carl since January 1, 1996. Dan has been with Firstar since
1989 and has nine years of investment management experience. He received his BA
in 1987 and his MBA in 1989 from Marquette University. Dan is a Chartered
Financial Analyst. Carl has been with Firstar since 1982 and has six years of
investment management experience. He received his BS in 1994 from Cardinal
Stritch College.
(PHOTO) (PHOTO)
DANIEL A. TRANCHITA, CFA CARL J. SMITH
FIRSTAR FUNDS
(LOGO)
FIRSTAR EQUITY FIRSTAR EQUITY
INDEX FUND - INDEX FUND -
A - NO LOAD A - LOAD <F1>
------------------ ------------------
10/29/89 10,000 9,600
10/90 8,854 8,501
10/91 11,767 11,297
10/92 12,869 12,355
10/93 14,644 14,059
10/94 15,157 14,552
10/95 19,066 18,305
10/96 23,520 22,581
10/97 30,830 29,599
4/98 37,654 36,150
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1998
- --------------------------------------------------------------------------------
Since
Fiscal Inception
Year-to-Date 1 Year 3 Years 5 Years 12/29/89
- --------------------------------------------------------------------------------
FIRSTAR EQUITY
INDEX FUND -
A - NO LOAD 22.1 40.1 31.1 22.5 17.2
FIRSTAR EQUITY
INDEX FUND -
A - LOAD <F1> 17.3 34.5 29.4 21.5 16.7
S&P 500 STOCK INDEX<F2> 22.5 41.1 32.0 23.3 17.9
- --------------------------------------------------------------------------------
<F1> Reflects maximum sales charge of 4.00%
<F2> The S&P500 Stock Index is an 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.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Firstar Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund no longer applies to either the Series A or Series
Institutional shares. The load performance for Series A shares has been
restated to reflect the impact of the sales charge. Series A performance prior
to January 10, 1995, does not reflect the service organization fees. If service
organization fees had been reflected, performance would be reduced.The
performance for the Series Institutional shares have been restated to reflect
the elimination of the purchase price adjustment. Performance reflects fee
waivers in effect. In the absence of fee waivers, total return would be reduced.
A = Series A (retail class)
TOP 5 HOLDINGS 4/30/98
- -------------------------------------
GENERAL ELECTRIC COMPANY 3.1%
- -------------------------------------
MICROSOFT CORPORATION 2.4%
- -------------------------------------
COCA-COLA COMPANY 2.1%
- -------------------------------------
EXXON CORPORATION 1.9%
- -------------------------------------
PFIZER, INC. 1.6%
- -------------------------------------
Portfolio holdings are subject to change
and are not a representation of the Fund's
entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/98
- -------------------------------------
$544,526,168
- -------------------------------------
FIRSTAR FUNDS
(LOGO)
- --------------------------------------------------------------------------------
GROWTH FUND
- --------------------------------------------------------------------------------
The U.S. stock market continued to soar during the six months ended April 30,
1998. The Standard & Poor's 500 Stock Index advanced +22.5% while the Growth
Fund kept pace with a return of +22.7% (no-load). This six-month return placed
the Fund in the top 25% of all large company stocks funds during the period.
The strong market advance caught many investors by surprise, coming after the
best three-year run in recorded market history. Investors also shrugged off the
unknown consequences of the Asian economic crisis which had depressed the market
during the Fall. Even more surprising was the strong performance of stocks
during the first calendar quarter in the face of earnings disappointments.
Technology stocks surged despite highly visible profit disappointments from
Compaq, Intel and Motorola. Of all company "pre-announcements" of poor earnings,
technology stocks represented 37% of the total, yet were the strongest
performing group during the January through April period. For the six-month
period, technology stocks represented in the S&P 500 advanced 23.3%. Our
technology stocks, which were overweighted for the time period in your
portfolio, advanced 31.7%. In light of the recent outperformance in the face of
downward earnings revisions, we have modestly reduced the exposure to technology
stocks within the Growth Fund.
A continuing theme, which has been very consistent over the last three years, is
the superior performance of large company stocks compared to small. The last six
months were no exception. The return on the S&P 400 was +19.2%, while the S&P
600 advanced +13.2% - trailing the S&P 500 by 3.3% and 9.3%, respectively. While
the "broken record" of large company price performance domination is getting
old, the relative profit growth of the giant companies is still sufficient to
gain attention. The upward shift in company size executed in the Growth Fund
last year has been a material contributor to portfolio performance.
The strong performance of Firstar Growth Fund was largely driven by stock
selection. Many of our largest holdings were also the strongest performing
stocks for the six months including Tyco International (+42%), Lucent
Technologies (+69%), Sungard Data Systems (+50%), Cincinnati Bell (+40%), Warner
Lambert (+38%) and Carnival Corporation (+42%). See page 49 for a complete
listing of portfolio holdings.
The recently announced merger of Citicorp and Travelers is further evidence of
an ongoing consolidation in the financial services industry. This consolidation
theme, coupled with strong relative earnings gains, continues to make the
finance sector attractive and worthy of our continued overweighted position. As
mentioned, technology was the first sector to be stung by Asia, and we are wary
of further commitments while bad news continues to come forth. We are, however,
very comfortable with the consistent growers we own in this overweighted sector.
Finally, consumer cyclicals continue to be of interest to us because of strong
employment and income gains.
With the S&P 500 at 1130, the market is reflecting economic nirvana. The turmoil
in Asia has lowered inflation expectations while the U.S. economy continues to
grow at a faster-than-expected pace. In other words, optimism is currently
priced into share prices. Given the positive fundamentals and ongoing new cash
investment, we continue to believe the stock market has an upward bias; however,
we would not be surprised to see greater volatility for the balance of the year
as share prices correct at the hint of bad news.
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
MARIAN E. ZENTMYER, CFA, CFP, Senior Vice President and Senior Portfolio Manager
of Firstar Investment Research & Management Company, LLC (FIRMCO), MAYA K.
BITTAR, CFA, Vice President and Senior Portfolio Manager and WALTER E. DEWEY,
CFA, Vice President and Senior Portfolio Manager co-manage the Fund - Marian
since June 19, 1996, Maya since December 1, 1996 and Walter since July 7, 1997.
Marian has been with Firstar since 1982 and has 20 years of investment
management experience. She received her BA from Stanford University in 1978.
Maya has been with Firstar since 1993 and has six years of investment management
experience. She received her BBA in 1985 and her MBA and MS in 1991 from the
University of Wisconsin. Walter has been with Firstar since 1986 and has 15
years of investment management experience. He received his BBA in 1983 from the
University of Wisconsin.
(PHOTO) (PHOTO) (PHOTO)
MARIAN E. ZENTMYER, MAYA K. BITTAR, CFA WALTER E. DEWEY, CFA
CFA, CFP
FIRSTAR FUNDS
(LOGO)
FIRSTAR GROWTH FIRSTAR GROWTH
FUND - FUND -
A - NO LOAD A - LOAD <F1>
------------------ ------------------
10/29/92 10,000 9,600
10/93 10,753 10,324
10/94 10,813 10,382
10/95 12,901 12,387
10/96 15,291 14,682
10/97 18,548 17,809
4/98 22,764 21,857
This chart assumes an initial investment of $10,000 made on 12/29/92
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
- -------------------------------------------------------------------------------
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1998
- -------------------------------------------------------------------------------
Since
Fiscal Inception
Year-to-Date 1 Year 3 Years 5 Years 12/29/92
- -------------------------------------------------------------------------------
FIRSTAR GROWTH
FUND -
A - NO LOAD 22.7 42.3 25.6 18.9 16.7
FIRSTAR GROWTH
FUND -
A - LOAD<F1> 17.8 36.6 23.9 17.9 15.8
S&P 500
STOCK INDEX<F2> 22.5 41.1 32.0 23.3 22.1
- -------------------------------------------------------------------------------
<F1> Reflects maximum sales charge of 4.00%.
<F2> The S&P 500 Stock Index is an 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.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Firstar Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. The load performance for
Series A shares has been restated to reflect the impact of the sales charge.
Series A performance prior to January 10, 1995, does not reflect the service
organization fees. If service organization fees had been reflected, performance
would be reduced. Performance reflects fee waivers in effect. In the absence
of fee waivers, total return would be reduced.
A = Series A (retail class)
TOP 5 HOLDINGS 4/30/98
- -------------------------------------
TYCO INTERNATIONAL, LTD. 4.6%
- -------------------------------------
SUNGARD DATA SYSTEMS, INC 3.4%
- -------------------------------------
WARNER-LAMBERT CO. 2.7%
- -------------------------------------
PITTSTON BRINK'S GROUP 2.5%
- -------------------------------------
CINCINNATI BELL, INC. 2.5%
- -------------------------------------
Portfolio holdings are subject to change
and are not a representation of the Fund's
entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/98
- -------------------------------------
$230,013,953
- -------------------------------------
FIRSTAR FUNDS
(LOGO)
- --------------------------------------------------------------------------------
SPECIAL GROWTH FUND
- --------------------------------------------------------------------------------
As a core mid-capitalization fund, Firstar Special Growth Fund gained +16.1%
(no load) for the six months ended April 30, 1998, compared to a +19.2%
return for the benchmark, the S&P MidCap 400 Index. The Fund's return lagged
the Russell MidCap Index return of +16.9% during the six-month period, but
outpaced the Wilshire MidCap 750 Index return of +15.0%. Since the Fund's
first full month of operation in January 1990, the average annual return of
+17.0% has beaten the Wilshire MidCap 750 Index return of +16.3% and nearly
matched the Russell Midcap Index return of +17.1%. (The S&P MidCap 400 Index
did not begin until 1991.)
The Fund continues to be overweighted in the areas of finance, consumer
cyclicals, technology, and healthcare. These sectors offer more consistent
growth at reasonable prices. At the same time, the Fund has typically
underweighted basic materials, capital goods, transportation, and utilities due
to their economic variability in earnings and slower growth characteristics.
Good performance in the consumer cyclical sector due to holdings such as Dollar
General, Jones Apparel, and Bed Bath & Beyond aided Fund performance in the
first half of the fiscal year. With a strong consumer, cyclical stocks have
outperformed the average stock return. In addition, the Fund's decision to
overweight the healthcare and technology sectors has added to the six-month
results. The basic materials, capital goods, and transportation sectors
continued their strong performance due to a booming economy and low interest
rates, thus hurting the Fund's relative results. As the relative growth rates of
larger industrial companies slows to a single-digit rate, we believe investors
will rotate toward small and mid-sized companies that emphasize sustainable
growth and consistent operating results.
During the first half of the fiscal year, the top performing stocks were Dollar
General (a deep discount general merchandise retailer), Cadence Design (a design
automation software developer), Jones Apparel (a women's apparel manufacturer),
Tech Data (a computer hardware and software distributor), and Protective Life
(an insurance company). Laggards included ADC Telecommunications (a broad-band
telecommunications equipment company), Corrections Corporation of America (a
prison operator), Phycor (a physician practice management company), and Teva
Pharmaceutical (an Israeli generic drug maker). See page 51 for a complete
listing of portfolio holdings.
The Fund's current weighted average market capitalization of $3.9 billion
closely matches that of the S&P MidCap 400 Index. The weighted price-to-earnings
ratio of the Fund at 26X is slightly higher than the benchmark but the Fund's
holdings have estimated earnings growth of near 30%, far greater than the
benchmark. We believe the MidCap area of the domestic equity market offers good
values at current prices; hence, we remain fully invested.
We feel the Fund is well positioned in the current low inflation, slow growth
environment and appreciate your continued support.
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
J. SCOTT HARKNESS, CFA, Chief Investment Officer of Firstar Investment Research
&Management Company, LLC (FIRMCO), and TODD M. KRIEG, CFA, JD, Senior Vice
President, Senior Portfolio Manager and Research Director co-manage the Fund _
Scott since its inception on December 28, 1989 and Todd since September 1994.
Scott has been with Firstar for 18 years and has more than 20 years of
investment management experience. He received his BA from the University of
Wisconsin in 1977. Todd has been with Firstar for six years and received his BA
from Williams College in 1983 and a JD from Georgetown University in 1989. Scott
and Todd are both Chartered Financial Analysts.
(PHOTO) (PHOTO)
J. SCOTT HARKNESS, CFA TODD M. KRIEG, CFA, JD
FIRSTAR FUNDS
(LOGO)
FIRSTAR SPECIAL GROWTH FIRSTAR SPECIAL GROWTH
FUND - FUND -
A - NO LOAD A - LOAD <F1>
------------------ ------------------
12/29/89 10,000 9,600
10/90 8,953 8,596
10/91 14,346 13,774
10/92 15,617 14,994
10/93 18,138 17,416
10/94 18,641 17,898
10/95 23,406 22,474
10/96 26,278 25,231
10/97 32,106 30,827
4/98 37,266 35,781
This chart assumes an initial investment of $10,000 made on 12/28/89
(inception). Performance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
- -------------------------------------------------------------------------------
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1998
- -------------------------------------------------------------------------------
Fiscal Since Inception
Year-to-Date<F1> Year 3 Years 5 Years 12/28/89
- -------------------------------------------------------------------------------
FIRSTAR SPECIAL GROWTH FUND
- A - NO LOAD 16.1 36.3 23.3 18.1 17.1
FIRSTAR SPECIAL GROWTH FUND
- A - LOAD<F1> 11.4 30.8 21.6 17.1 16.5
S&P 500 STOCK INDEX<F2> 22.5 41.1 32.0 23.3 17.9
S&P MIDCAP 400 INDEX<F3> 19.2 47.9 28.4 20.6 18.4
- -------------------------------------------------------------------------------
<F1> Reflects maximum sales charge of 4.00%.
<F2> The S&P500 Stock Index is an 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.
<F3> The S&PMidCap 400 Index is a capital-weighted index, representing the
aggregate market value of the common equity of 400 stocks chosen by
Standard &Poor's with a median capitalization of approximately $700
million.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Firstar Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. The load performance
for the Series A chares has been restated to reflect the impact of the sales
charge. Series A performance prior to January 10, 1995, does not reflect the
service organization fees. If service organization fees had been reflected,
performance would be reduced. Performance reflects fee waivers in effect.
In the absence of fee waivers, total return would be reduced.
A = Series A (retial shares)
TOP 5 HOLDINGS 4/30/98
- ------------------------------------
PROTECTIVE LIFE CORPORATION 4.8%
- ------------------------------------
AMBAC, INC. 4.3%
- ------------------------------------
HEALTH MANAGEMENT
ASSOCIATES, INC. 4.1%
- ------------------------------------
SHARED MEDICAL SYSTEMS
CORPORATION 3.9%
- ------------------------------------
TECH DATA CORPORATION 3.8%
- ------------------------------------
Portfolio holdings are subject to change
and are not a representation of the Fund's
entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/98
- ------------------------------------
$766,830,892
- ------------------------------------
FIRSTAR FUNDS
(LOGO)
- --------------------------------------------------------------------------------
EMERGING GROWTH FUND
- --------------------------------------------------------------------------------
Firstar Emerging Growth Fund seeks capital appreciation through investments in
securities of small-sized companies with stock market capitalizations between
$250 million and $2 billion. The Fund's current weighted average market
capitalization is $900 million, compared to its designated benchmark, the S&P
SmallCap 600 Index, at a weighted average market capitalization of $1.0 billion.
The first half of the fiscal year is off to a good start for the Fund with a
return of +13.9% (no-load) - ahead of the +13.2% return of the S&P SmallCap
600 Index during the same period.
Through the first half of the fiscal year, the Fund ended with a weighted
average 1998 price-to-earnings ratio of 23X against a 22X price-to-earnings
ratio for the S&P SmallCap 600 Index. At the same time, the estimated 1998
earnings growth rate for Firstar Emerging Growth Fund holdings is over 25%,
which is significantly greater than the benchmark index's estimated earnings
growth rate. In addition, the Fund's holdings maintain a greater portion of
their revenues under long-term contract or recurring revenue streams.
Portfolio holdings which significantly contributed to performance in the first
half of the fiscal year included Software AG (a mainframe maintenance and
information technology services company), Enhance Financial Services (a
municipal bond re-insurer), Acxiom Corporation (a data and direct marketing
services provider), Goody's Family Clothing (a moderately priced apparel
retailer), Quorum Health Group (a hospital operator), and Mastech (an
information technology staffing company). Weak performing holdings included
Philip Services (an environmental services provider), Petco Animal Supplies (a
pet food store retailer), Graham Field Health (a health care products
distributor), and Mentor Corporation (a medical products manufacturer).
The Fund remains overweighted in consumer cyclicals, healthcare, and technology.
Underweighted sectors compared to the benchmark included basic materials,
transportation, and utilities - mostly due to their slow growth characteristics
and sensitivity to economic cycles. The Fund benefited from good relative
performance in the consumer cyclical sector and the technology sector due to
holdings like Goody's Family Clothing, World Access, Sylvan Learning Systems,
Avant!, and JDA Software.
The Fund's performance in finance companies and healthcare companies roughly
matched the S&P SmallCap 600 Index. Weak performing sectors included energy and
capital goods. Lower oil prices in early calendar 1998 reduced some production
expectations in the oil and gas industry while the Fund's capital goods returns
were negatively impacted by Philip Services and slower recycling growth. See
page 53 for a complete listing of portfolio holdings.
With the Fund's current price-to-earnings ratio approximately equal to that of
the larger S&P 500 Index companies, we believe valuations can improve for small
and midcap stocks as the relative growth rates of small and mid-sized companies
outstrip large stocks. As a result, we are optimistic about Firstar Emerging
Growth Fund and look forward to providing our shareowners with attractive growth
opportunities.
PORTFOLIO MANAGER PROFILE
- ------------------------------------------------------------------------------
TODD KRIEG, CFA, JD, Senior Vice President and Senior Portfolio Manager of
Firstar Investment Research & Management Company, LLC (FIRMCO) and MATTHEW
D'ATTILIO, CFA, Vice President and Portfolio Manager have co-managed the Fund
since its inception on August 15, 1997. Todd has been with Firstar since 1992
and has six years of investment management experience. He received his BA from
Williams College in 1983 and a JD from Georgetown University in 1989. Matt has
been with Firstar since 1993 and has five years of investment management
experience. He received his BA from Bowdoin College in 1993. Todd and Matt are
both Chartered Financial Analysts.
(photo) (photo)
TODD KEREIG, CFA, JD MATTHEW D'ATTILIO, CFA
FIRSTAR FUNDS
(LOGO)
FIRSTAR EMERGING GROWTH FIRSTAR EMERGING GROWTH
FUND - FUND -
A - NO LOAD A - LOAD <F1>
------------------ ------------------
8/15/97 10,000 9,600
10/97 10,310 9,894
4/98 11,747 11,273
This chart assumes an initial investment of $10,000 made on 8/15/97 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Returns shown include the reinvestment of all dividends
and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
- -------------------------------------------------------------------------------
CUMMULATIVE RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1998
- -------------------------------------------------------------------------------
Fiscal Since Inception
Year-to-Date 8/15/97
- -------------------------------------------------------------------------------
FIRSTAR EMERGING GROWTH FUND
- A - No Load 13.9 17.5
FIRSTAR EMERGING GROWTH FUND
- A - Load<F1> 9.4 12.7
S&P SMALLCAP 600<F2> 13.2 19.5
WILSHIRE NEXT 1750 INDEX<F3> 14.3 20.8
S&P 500 STOCK INDEX<F4> 22.5 21.6
- -------------------------------------------------------------------------------
<F1> Reflects maximum salkes charge of 4.00%
<F2> The S&PSmallCap 600 Index is a capitalization weighted index that measures
the performance of selected U.S. stocks with small market capitalizations.
<F3> The Wilshire Next 1750 Index is an unmanaged index which shows the next
largest 1,750 companies after the Top 750 of the Wilshire 5000 Stock Index.
<F4> The S&P500 Stock Index is an index of an unmanaged group 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.
An investment cannot be made directly in an index.
Series A shares, unlike the Series Institutional shares, have a 4% maximum sales
load and are subject to an annual 0.25% service organization fee. Performance
reflects fee waivers in effect. In the absence of fee waivers, total return
would be reduced.
A = Series A (retail shares)
TOP 5 HOLDINGS 4/30/98
- -----------------------------------------
GOODY'S FAMILY CLOTHING, INC. 4.3%
- -----------------------------------------
ACXIOM CORPORATION 3.4%
- -----------------------------------------
QUORUM HEALTH GROUP, INC. 3.3%
- -----------------------------------------
ENHANCE FINANCIAL
SERVICES GROUP, INC. 2.9%
- -----------------------------------------
STEIN MART, INC. 2.9%
- ------------------------------------
Portfolio holdings are subject to change
and are not a representation of the Fund's
entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/98
- ------------------------------------
$77,184,309
- ------------------------------------
FIRSTAR FUNDS
(LOGO)
- --------------------------------------------------------------------------------
MICROCAP FUND
- --------------------------------------------------------------------------------
Firstar MicroCap Fund ended the first six months of the fiscal year with an
impressive return of +18.6% (no-load), outpacing the +11.9% return of its
benchmark, the Russell 2000. This outperformance was achieved even though the
first three months of this period were somewhat difficult due to the Asia/
Pacific economic crisis (which caused a demand for highly liquid large cap
stocks). Sentiment changed in late January, however, as slowing earnings growth
of large cap stocks became the focus and small and microcap stocks performed
better due to stronger earnings growth, less Asia/Pacific exposure and
discounted valuations.
Strong money flows early in 1998 helped the IPO (initial public offering) market
take off again after nearly shutting down late in 1997. As a result, the
MicroCap Fund was an active participant in new issues. Because we felt stocks
with reasonably strong growth and visible earnings would eventually outperform,
we emphasized service companies and consumer stocks such as RemedyTemp, Tier
Technologies, French Fragrances and A.C. Moore. On the flipside, we eliminated
positions where there was a lack of visibility, or high exposure to Asia.
Examples include Eltron International and Simulation Sciences.
Another segment which performed well during the past six months was small ticket
equipment leasing - a subset of the financial sector. Stocks such as T&W
Financial, First Sierra Financial and LINC Capital added approximately +2.61% to
the overall performance of the Fund. Additionally, good visibility in computer
information technology and its attractive return potential prompted us to
emphasize this area by adding Computer Management Sciences, Condor Technology,
Data Processing Research Corporation, and E.C. Soft to the portfolio. These
holdings added approximately +2.75% to overall performance.
We caution our shareowners to the inherent volatility of this Fund as continued
uncertainty in the Far East, liquidity concerns and an interest rate tug-of-war
could lead to underperformance. Conversely, given a scenario of lower interest
rates and stable global economies, we feel the Fund can outperform.
Looking ahead at the remainder of the fiscal year, however, we feel the MicroCap
Fund is prepared for outperformance relative to the Russell 2000. This is due to
the Fund's focus on financial, consumer, and service stocks whose valuations are
compelling relative to their peers and the overall market, and who have
recurring revenues, or strong persistency, in their income statements.
We appreciate your continued confidence in Firstar MicroCap Fund.
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
JOSEPH A. FROHNA, CFA, CPA, Vice President and Portfolio Manager of Firstar
Investment Research & Management Company, LLC (FIRMCO) has managed the Fund
since September 9, 1997. Joe has been with Firstar since 1995 and has five years
of investment management experience. Joe received his BBA from the University of
Wisconsin in 1986 and his MBA from the University of Michigan in 1994. Joe is a
Chartered Financial Analyst.
(PHOTO)
JOSEPH A. FROHNA, CFA, CPA
FIRSTAR FUNDS
(LOGO)
FIRSTAR MICROCAP GROWTH FIRSTAR MICROCAP GROWTH
FUND - FUND -
A - NO LOAD A - LOAD <F1>
------------------ ------------------
8/1/95 10,000 9,600
6/96 16,352 15,693
10/96 17,137 16,446
10/97 22,240 21,344
4/98 26,384 25,320
This chart assumes an initial investment of $10,000 made on 8/1/95 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Returns shown include the reinvestment of all dividends
and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
- -------------------------------------------------------------------------------
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1998
- -------------------------------------------------------------------------------
Fiscal Since Inception
Year-to-Date 1 Year 8/1/95
- -------------------------------------------------------------------------------
FIRSTAR MICROCAP FUND
- A - NO LOAD 18.6 72.7 42.3
FIRSTAR MICROCAP FUND
- A - LOAD<F1> 13.9 65.8 40.2
S&P 500 STOCK INDEX<F2> 22.5 41.1 31.0
RUSSELL 2000<F3> 11.9 42.4 20.7
- -------------------------------------------------------------------------------
<F1>Reflects maximum sales charge of 4.0%
<F2>The S&P500 Stock Index is an index of an unmanaged group 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.
<F3>The Russell 2000, an unmanaged index, consists of
the smallest 2,000 companies in a group of 3,000 U.S. companies in the
Russell 3000 Index, as ranked by total market capitalization.
An investment cannot be made directly in an index.
Series A shares, unlike the Series Institutional shares, have a 4% maximum sales
load and are subject to an annual 0.25% service organization fee. Performance
reflects fee waivers in effect. In the absence of fee waivers, total return
would be reduced.
A = Series A (retail shares)
TOP 5 HOLDINGS 4/30/98
- ------------------------------------
COINMACH LAUNDRY CORPORATION 3.9%
- ------------------------------------
REMEDYTEMP, INC. 3.1%
- ------------------------------------
CAPITAL AUTOMOTIVE REIT 2.7%
- ------------------------------------
A.C. MOORE ARTS &CRAFTS, INC. 2.6%
- ------------------------------------
T&W FINANCIAL CORPORATION 2.4%
- ------------------------------------
Portfolio holdings are subject to change
and are not a representation of the Fund's
entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/98
- ------------------------------------
$135,352,407
- ------------------------------------
FIRSTAR FUND
(LOGO)
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
Hansberger Global Investors, Inc. (HGI) has been sub-adviser to the Firstar
International Equity Fund since September 2, 1997 and completed its portfolio
restructuring effort in the fourth quarter of 1997. The number of holdings in
the portfolio has been reduced, but greater diversification was achieved. We
purchased stocks that are domiciled in countries that were previously not
represented in the portfolio. As of April 30, 1998, the International Equity
Fund was broadly diversified among 142 stocks in 39 countries. 92% of the
portfolio was invested in stocks, with the largest geographic exposure in Europe
(58%), followed by the Far East including Australia/New Zealand (27%), and the
Americas (7.7%).
Performance among stock markets varied significantly during the six months ended
April 30, 1998, as indices representing European markets gained +26%, Japan
declined by -2%, Latin American markets were flat, and emerging Asian markets
declined -16.7% on average (as measured by the respective MSCI indices). An
important part of HGI's strategy during the fourth quarter of 1997 and early
1998 involved taking advantage of depressed stock prices in Asia and Eastern
Europe. These positions have been established with a long-term view as we
believe the most rewarding investment opportunities arise when markets are in
distress. This strategy was rewarding in many cases - particularly in Korea
where stocks have recovered significantly; however, lingering macroeconomic
uncertainties continued to depress shares in other Asian countries, Eastern
Europe, and Russia, thus contributing to the Fund's short-term underperformance.
Western European stocks continued to perform strongly, and they remain the
largest representation in the portfolio (55.2%). This exposure contributed to
much of the Fund's positive performance as favorable interest rate trends,
strong corporate earnings, and growing domestic liquidity led to strength in
European markets. HGI remains underweighted in the Japanese market, but the Fund
benefited from the relative outperformance of individual Japanese holdings.
As European stock markets continue to rise, strong expectations are increasingly
discounted in companies' valuations. HGI's largest regional exposure remains in
Europe, but an increasing number of new ideas are being discovered in the
depressed Asian and Eastern European stock markets. We will continue to focus on
quality, undervalued companies with a long-term investment horizon and low
portfolio turnover.
We appreciate your confidence in Firstar International Equity Fund.
Note: Investments in foreign securities involve some risk not associated with
investments in domestic securities such as foreign currency fluctuations, and
economic and political risks.
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
JAMES E. CHANEY, Chief Investment Officer of Hansberger Global Investors, Inc.
(HGI), the Fund's sub-adviser, JOHN HOCK, CFA, Research Analyst and Assistant
Portfolio Manager of HGI, ROBERT MAZUELOS, Research Analyst and Assistant
Portfolio Manager of HGI, and DANIEL A. TRANCHITA, CFA, Vice President and
Senior Portfolio Manager of Firstar Investment Research & Management Company,
LLC (FIRMCO), the Fund's adviser, co-manage the Fund - James, John and Robert
since September 2, 1997 (when the sub-advisory agreement with HGI went into
affect) and Dan since the funds inception April 28, 1994. Jim has been with HGI
since 1996 and has 14 years of investment management experience. He received his
BS from the University of Massachusetts - Amherst in 1979, his MS from
Northeastern University in 1983 and his MBA from Columbia University in 1987.
John has been with HGI since 1995 and has eight years of investment management
experience. He received his BS from Cornell University in 1990 and his MBA from
New York University in 1995. John is a Chartered Financial Analyst. Robert has
been with HGI since 1995 and has eight years of investment management
experience. He received his BS from the University of Florida in 1990. Dan has
been with Firstar since 1989 and has nine years of investment management
experience. He received his BA in 1987 and his MBA in 1989 from Marquette
University. Dan is a Chartered Financial Analyst.
(PHOTO) (PHOTO) (PHOTO) (PHOTO)
JAMES E. CHANEY JOHN HOCK, CFA ROBERT MAZUELOS DANIEL
TRANCHITA, CFA
FIRSTAR FUNDS
(LOGO)
FIRSTAR INTERNATIONAL FIRSTAR INTERNATIONAL
EQUITY EQUITY
FUND - FUND -
A - NO LOAD A - LOAD <F1>
------------------ ------------------
4/28/94 10,000 9,600
10/94 9,995 9,597
10/95 9,600 9,218
10/96 10,363 9,951
10/97 9,814 9,424
4/98 10,580 10,158
This chart assumes an initial investment of $10,000 made on 4/28/94 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Returns shown include the reinvestment of all dividends
and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1998
- --------------------------------------------------------------------------------
Fiscal Since Inception
Year-to-Date 1 Year 3 Years 4/28/94
- --------------------------------------------------------------------------------
FIRSTAR INTERNATIONAL
EQUITY FUND - NO LOAD 7.8 2.6 1.9 1.4
FIRSTAR INTERNATIONAL
EQUITY FUND - LOAD<F1> 3.5 (1.5) 0.6 0.4
EAFE INDEX<F2> 15.4 18.9 9.5 8.5
- --------------------------------------------------------------------------------
<F1> Reflects maximum sales charge of 4.00%.
<F2> The Morgan Stanley Capital International Europe, Australia and Far East
Index, ("MSCI/EAFE") is an unmanaged index composed of companies
representative of the market structure of 20 European and Pacific Basin
countries. The MSCI/EAFE Index is the most recognized international index
and is weighted by market capitalization.
An investment cannot be made directly in an index.
Effective at the close of business on January 9, 1995, Firstar Funds began to
offer Series A (retail) shares and Series Institutional shares. Series A shares,
unlike the Series Institutional shares, have a 4% maximum sales load and are
subject to an annual 0.25% service organization fee. In addition, the purchase
price adjustment on the Fund no longer applies to either the Series A or Series
Institutional shares. The load performance for Series A shares has been
restated to reflect the impact of the sales charge. Series A performance prior
to January 10, 1995, does not reflect the service organization fees. If service
organization fees had been reflected, performance would be reduced.The
performance for the Series Institutional shares have been restated to reflect
the elimination of the purchase price adjustment. Performance reflects fee
waivers in effect. In the absence of fee waivers, total return would be
reduced.
A = Series A (retail class)
TOP 5 COUNTRIES 4/30/98
- -----------------------------------
GREAT BRITAIN 13.6%
- -----------------------------------
FRANCE 6.5%
- -----------------------------------
HONG KONG 5.9%
- -----------------------------------
JAPAN 5.7%
- -----------------------------------
SPAIN 5.6%
- -----------------------------------
Portfolio holdings are subject to change
and are not a representation of the Fund's
entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/98
- -----------------------------------
$74,313,259
- -----------------------------------
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
APRIL 30, 1998
(UNAUDITED)
BALANCED GROWTH GROWTH AND INCOME EQUITY INDEX
FUND FUND FUND
---------------- ------------------ ------------
<C> <C> <C>
ASSETS:
Investments, at value (cost $188,225, $402,858,
$306,672, $141,233, $502,585, $68,292,
$106,708, and $73,567, respectively) $242,558 $645,360 $543,415
Foreign currency (cost $401) _ _ _
Cash _ _ _
Income receivable 1,278 1,003 647
Capital shares sold 2,084 2,117 1,120
Receivable for securities sold 2,874 2,588 560
Receivable for foreign currency sold _ _ _
Other assets 17 22 24
--------- --------- ---------
Total Assets 248,811 651,090 545,766
--------- --------- ---------
LIABILITIES:
Payable for securities purchased 2,215 8,083 803
Payable for foreign currency purchased _ _ _
Capital shares redeemed 161 577 198
Payable to affiliates 181 518 216
Accrued expenses and other liabilities 19 28 23
--------- --------- ---------
Total Liabilities 2,576 9,206 1,240
--------- --------- ---------
NET ASSETS $246,235 $641,884 $544,526
========= ========= =========
NET ASSETS CONSIST OF:
Capital stock $185,324 $374,884 $302,760
Undistributed net investment income (loss) 438 666 551
Undistributed accumulated net
realized gains (losses) on:
Investments 6,140 23,832 3,721
Foreign currency _ _ _
Unrealized net appreciation
(depreciation) on:
Investments 54,333 242,502 236,743
Futures contracts _ _ 751
Foreign currency _ _ _
--------- --------- ---------
Total Net Assets $246,235 $641,884 $544,526
========= ========= =========
SERIES A:
Net assets $ 58,744 $178,853 $105,331
Shares authorized ($.0001 par value) 500,000 500,000 500,000
Shares issued and outstanding 1,869 3,854 1,398
Net asset value and redemption price per share<F1> $31.43 $46.41 $75.33
========= ========= =========
Maximum offering price per share<F1> $32.74 $48.34 $78.47
========= ========= =========
SERIES INSTITUTIONAL:
Net assets $187,491 $463,031 $439,195
Shares authorized ($.0001 par value) 500,000 500,000 500,000
Shares issued and outstanding 5,958 9,966 5,824
Net asset value, redemption price and
offering price per share<F1> $31.47 $46.46 $75.41
========= ========= =========
<F1> Amounts may not recalculate due to rounding.
</TABLE>
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
SPECIAL EMERGING INTERNATIONAL
GROWTH GROWTH GROWTH MICROCAP EQUITY
FUND FUND FUND FUND FUND
---------------- -------------- ------------ --------- ---------------
<C> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost $188,225, $402,858,
$306,672, $141,233, $502,585, $68,292,
$106,708, and $73,567, respectively) $225,345 $766,003 $ 76,990 $138,399 $ 72,678
Foreign currency (cost $401) _ _ _ _ 382
Cash _ _ _ _ 694
Income receivable 166 155 65 14 413
Capital shares sold 447 1,201 298 _00 159
Receivable for securities sold 5,138 8,077 3,015 241 603
Receivable for foreign currency sold _ _ _ _ 4
Other assets 14 17 46 23 16
--------- --------- --------- --------- ---------
Total Assets 231,110 775,453 80,414 138,677 74,949
--------- --------- --------- --------- ---------
LIABILITIES:
Payable for securities purchased 741 7,153 3,138 2,951 370
Payable for foreign currency purchased _ _ _ _ _
Capital shares redeemed 136 775 6 175 22
Payable to affiliates 202 649 76 193 100
Accrued expenses and other liabilities 17 45 10 6 144
--------- --------- --------- --------- ---------
Total Liabilities 1,096 8,622 3,230 3,325 636
--------- --------- --------- --------- ---------
NET ASSETS $230,014 $766,831 $ 77,184 $135,352 $ 74,313
========= ========= ========= ========= =========
NET ASSETS CONSIST OF:
Capital stock $128,356 $485,022 $ 67,086 $ 87,232 $ 75,238
Undistributed net investment income (loss) 10 (1,020) (8) (933) 273
Undistributed accumulated net
realized gains (losses) on:
Investments 17,536 19,411 1,408 17,362 (214)
Foreign currency _ _ _ _ (76)
Unrealized net appreciation
(depreciation) on:
Investments 84,112 263,418 8,698 31,691 (889)
Futures contracts _ _ _ _ _
Foreign currency _ _ _ _ (19)
--------- --------- --------- --------- ---------
Total Net Assets $230,014 $766,831 $77,184 $135,352 $ 74,313
========= ========= ========= ========= =========
SERIES A:
Net assets $ 34,481 $172,611 $10,598 $ 18,772 $7,910
Shares authorized ($.0001 par value) 500,000 500,000 500,000 500,000 500,000
Shares issued and outstanding 933 3,722 909 1,000 405
Net asset value and redemption price per share<F1> $36.97 $46.37 $11.66 $18.76 $19.52
========= ========= ========= ========= =========
Maximum offering price per share<F1> $38.51 $48.30 $12.15 $19.54 $20.33
========= ========= ========= ========= =========
SERIES INSTITUTIONAL:
Net assets $195,533 $594,220 $ 66,586 $116,580 $ 66,403
Shares authorized ($.0001 par value) 500,000 500,000 500,000 500,000 500,000
Shares issued and outstanding 5,247 12,690 5,704 6,167 3,389
Net asset value, redemption price and
offering price per share<F1> $37.26 $46.83 $11.67 $18.90 $19.59
========= ========= ========= ========= =========
<F1> Amounts may not recalculate due to rounding.
</TABLE>
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
(UNAUDITED) BALANCED GROWTH FUND GROWTH AND INCOME FUND
------------------------- --------------------------
Six months Year Six months Year
ended ended ended ended
April 30, Oct. 31, April 30, Oct. 31,
1998 1997 1998 1997
--------- --------- --------- ---------
(Unaudited) (Unaudited)
<C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 2,301 $ 4,197 $ 2,674 $ 5,272
Net realized gain on:
Investments 6,617 17,108 23,870 17,736
Foreign currency _ _ _ _
Change in unrealized
appreciation on:
Investments 19,372 9,540 89,776 83,976
Foreign currency _ _ _ _
--------- --------- --------- ---------
Net increase in net assets
resulting from operations 28,290 30,845 116,320 106,984
--------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Shares sold 42,455 82,936 104,520 182,721
Shares issued to owners in
reinvestment of dividends 19,178 13,325 18,105 27,125
Shares redeemed (32,617) (63,501) (70,872) (90,531)
--------- --------- --------- ---------
Net increase in net assets
as a result of capital
share transactions 29,016 32,760 51,753 119,315
--------- --------- --------- ---------
DISTRIBUTIONS TO SERIES
A SHAREOWNERS:
From net investment income (490) (722) (576) (1,107)
From net realized gains (3,620) (1,751) (4,638) (5,918)
--------- --------- --------- ---------
(4,110) (2,473) (5,214) (7,025)
--------- --------- --------- ---------
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREOWNERS:
From net investment income (1,833) (3,385) (1,967) (4,136)
From net realized gains (13,536) (7,788) (13,098) (19,246)
--------- --------- --------- ---------
(15,369) (11,173) (15,065) (23,382)
--------- --------- --------- ---------
TOTAL INCREASE IN NET ASSETS 37,827 49,959 147,794 195,892
NET ASSETS:
Beginning of period 208,408 158,449 494,090 298,198
--------- --------- --------- ---------
End of period (including
undistributed net investment
income (loss) of $438, $460,
$666, $535, $551, $513, $10, $121,
$(1,020), $(2), $(8) and $117,
respectively) $246,235 $208,408 $641,884 $494,090
========= ========= ========= =========
<F1> Commencement of operations.
</TABLE>
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
(UNAUDITED) EQUITY INDEX GROWTH SPECIAL GROWTH EMERGING GROWTH
FUND FUND FUND FUND
------------------------------------------- ------------------- ------------------
Six months Year Six months Year Six months Year Six monthsAug.15, 1997<F1>
ended ended ended ended ended ended ended through
April 30, Oct. 31, April 30, Oct. 31, April 30, Oct. 31, April 30, Oct. 31,
1998 1997 1998 1997 1998 1997 1998 1997
--------- --------- --------- --------- --------- --------- --------- ---------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 3,137 $ 5,279 $ 90 $ 119 $ (1,021)$ (2,028) $ 6 _
Net realized gain on:
Investments 4,316 7,245 17,766 30,037 20,540 70,219 1,411 $117
Foreign currency _ _ _ _ _ _ _ 306
Change in unrealized
appreciation on:
Investments 84,860 68,766 26,792 6,762 90,219 67,861 7,824 873
Foreign currency _ _ _ _ _ _ _ _
--------- --------- --------- --------- --------- --------- --------- ---------
Net increase in net assets
resulting from operations 92,313 81,290 44,648 36,918 109,738 136,052 9,241 1,296
--------- --------- --------- --------- --------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Shares sold 104,366 164,226 30,893 56,737 82,477 204,220 18,206 52,281
Shares issued to owners in
reinvestment of dividends 9,298 7,676 23,938 5,867 64,516 67,741 352 _
Shares redeemed (43,819) (103,969) (45,805) (57,271) (134,766) (210,150) (3,575) (178)
--------- --------- --------- --------- --------- --------- --------- ---------
Net increase in net assets
as a result of capital
share transactions 69,845 67,933 9,026 5,333 12,227 61,811 14,983 52,103
--------- --------- --------- --------- --------- --------- --------- ---------
DISTRIBUTIONS TO SERIES
A SHAREOWNERS:
From net investment income (537) (822) (16) _ 3 _ (12) _
From net realized gains (1,399) (516) (3,671) (740) (14,739) (14,101) (33) _
--------- --------- --------- --------- --------- --------- --------- ---------
(1,936) (1,338) (3,687) (740) (14,736) (14,101) (45) _
--------- --------- --------- --------- --------- --------- --------- ---------
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREOWNERS:
From net investment income (2,562) (4,327) (185) _ _ _ (118) _
From net realized gains (5,759) (2,661) (26,481) (6,747) (56,822) (61,354) (276) _
--------- --------- --------- --------- --------- --------- --------- ---------
(8,321) (6,988) (26,666) (6,747) (56,822) (61,354) (394) _
--------- --------- --------- --------- --------- --------- --------- ---------
TOTAL INCREASE IN NET ASSETS 151,901 140,897 23,321 34,764 50,407 122,408 23,785 53,399
NET ASSETS:
Beginning of period 392,625 251,728 206,693 171,929 716,424 594,016 53,399 _
--------- --------- --------- --------- --------- --------- --------- ---------
End of period (including
undistributed net investment
income (loss) of $438, $460,
$666, $535, $551, $513, $10, $121,
$(1,020), $(2), $(8) and $117,
respectively) $544,526 $392,625 $230,014 $206,693 $766,831 $716,424 $77,184 $53,399
========= ========= ========= ========= ========= ========= ========= =========
<F1> Commencement of operations.
</TABLE>
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
(UNAUDITED) MICROCAP FUND INTERNATIONAL EQUITY FUND
------------------------ ----------------------------
Six months Year Six months Year
ended ended ended ended
April 30, 1998 Oct. 31, 1997 April 30, 1998 Oct. 31, 1997
--------------- ------------- -------------- --------------
(Unaudited) (Unaudited)
<C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ (930) $ (1,086) $ 307 $ (174)
Net realized gain (loss) on:
Investments 17,375 12,681 (211) 1,964
Foreign currency _ _ (76) 28
Change in unrealized appreciation
(depreciation) on:
Investments 5,223 13,904 5,340 (5,960)
Foreign currency _ _ (26) (1)
--------- --------- --------- ---------
Net increase (decrease) in net assets
resulting from operations 21,668 25,499 5,334 (4,143)
--------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Shares sold 1,787 28,930 10,162 32,361
Shares issued to owners in
reinvestment of dividends 9,448 11,413 1,248 1,265
Shares redeemed (6,770) (8,081) (4,574) (11,236)
--------- --------- --------- ---------
Net increase in net assets as a
result of capital share transactions 4,465 32,262 6,836 22,390
--------- --------- --------- ---------
DISTRIBUTIONS TO SERIES A SHAREOWNERS:
From net investment income _ _ (31) (25)
From net realized gains (1,599) (1,540) (135) (92)
--------- --------- --------- ---------
(1,599) (1,540) (166) (117)
--------- --------- --------- ---------
DISTRIBUTIONS TO SERIES INSTITUTIONAL
SHAREOWNERS:
From net investment income _ _ (277) (363)
From net realized gains (9,815) (11,229) (1,122) (1,010)
--------- --------- --------- ---------
(9,815) (11,229) (1,399) (1,373)
--------- --------- --------- ---------
TOTAL INCREASE IN NET ASSETS 14,719 44,992 10,605 16,757
NET ASSETS:
Beginning of period 120,633 75,641 63,708 46,951
--------- --------- --------- ---------
End of period (including undistributed
net investment income
(loss) of $(933), $(2),
$273 and $275, respectively) $135,352 $120,633 $74,313 $63,708
========= ========= ========= =========
</TABLE>
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
BALANCED GROWTH FUND
--------------------------------------------------------------------------------------------------
Six months ended Year ended Year ended Year ended Year ended
April 30, 1998 October 31, 1997 October 31, 1996 October 31, 1995<F3> October 31,
----------------- -------------------- ----------------- --------------------- ----------------
Series Series Series Series Series Series Series Series
A Inst'l. A Inst'l. A Inst'l. A Inst'l. 1994 1993
------ ------ ------ ------ ------ ----- ------- ------ ------ ------
Per Share Data: (Unaudited)
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $30.48 $30.51 $27.98 $27.99 $25.89 $25.90 $22.10 $22.10 $22.76 $20.49
Income from investment
operations:
Net investment income 0.27 0.30 0.58 0.66 0.47<F8> 0.55<F8> 0.49 0.53 0.44 0.47
Net realized and
unrealized gains
(losses) on securities 3.46 3.47 4.19 4.20 2.64 2.62 3.77 3.78 (0.66) 2.27
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total from investment
operations 3.73 3.77 4.77 4.86 3.11 3.17 4.26 4.31 (0.22) 2.74
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment income (0.28) (0.31) (0.59) (0.66) (0.47) (0.53) (0.47) (0.51) (0.44) (0.47)
Distributions from
capital gains (2.50) (2.50) (1.68) (1.68) (0.55) (0.55) _ _ _ _
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total distributions (2.78) (2.81) (2.27) (2.34) (1.02) (1.08) (0.47) (0.51) (0.44) (0.47)
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Net asset value,
end of period $31.43 $31.47 $30.48 $30.51 $27.98 $27.99 $25.89 $25.90 $22.10 $22.76
===== ===== ===== ===== ===== ===== ===== ===== ===== =====
Total return <F4><F5> 13.38% 13.50% 18.07% 18.39% 12.30% 12.56% 19.55% 19.79% (0.93)% 13.49%
Supplemental data
and ratios:
Net assets, in thousands,
end of period $58,744 $187,491 $44,026 $164,382 $29,034 $129,415 $21,832 $104,552 $94,657 $82,099
Ratio of net
expenses to average
net assets <F6> 1.00% 0.75% 1.00% 0.75% 1.00% 0.75% 0.94% 0.75% 0.75% 0.75%
Ratio of net investment
income to average net
assets <F6> 1.89% 2.14% 2.06% 2.31% 1.80% 2.05% 2.05% 2.24% 2.03% 2.24%
Portfolio turnover
rate <F4><F7> 24.80% 24.80% 69.90% 69.90% 63.91% 63.91% 61.87% 61.87% 59.77% 71.60%
Average commission rate
paid <F7> $0.0496 $0.0496 $0.0552 $0.0552 $0.0581 $0.0581
</TABLE>
<F1> Commencement of operations.
<F2> Effective June 17, 1993, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F3> On January 9, 1995, all previously existing series of shares of each Fund
were reclassified as Series A shares. Effective January 9, 1995,
Institutional shareowners exchanged their Series A shares for the Funds'
Institutional series shares. For the year ended October 31, 1995, the
Financial Highlights ratios of net expenses to average net assets, ratios
of net investment income to average net assets, total return and the per
share income from investment operations and distributions are presented on
a basis whereby the Funds' net investment income, net expenses, net
realized and unrealized gains (losses) and distributions for the period
November 1, 1994, through January 9, 1995, were allocated to each class of
shares based upon the relative net assets of each class of shares as of the
close of business on January 9, 1995, and the results thereof combined with
the results of operations and distributions for each applicable class for
the period January 10, 1995, through October 31, 1995.
<F4> Not annualized for the period ended October 31, 1993, for the Growth Fund,
for the period ended October 31, 1997, for the Emerging Growth Fund, for
the periods ended October 31, 1996 and June 30, 1996, for the MicroCap
Fund, for the period ended October 31, 1994, for the International Equity
Fund, and for the period ended April 30, 1998 for all Funds.
<F5> The total return does not reflect the 4% front-end sales charge for Series
A.
<F6> Annualized for the period ended October 31, 1993, for the Growth Fund, for
the period ended October 31, 1997, for the Emerging Growth Fund, for the
periods ended October 31, 1996 and June 30, 1996, for the MicroCap Fund,
for the period ended October 31, 1994, for the International Equity Fund
and for the period ended April 30, 1998 for all Funds.
<F7> Portfolio turnover and average commission rate paid is calculated on the
basis of the Fund as a whole without distinguishing between the classes of
shares issued.
<F8> Net investment income per share is calculated using ending balances prior
to consideration of adjustments for permanent book and tax differences.
<F9> Effective September 2, 1997, Hansberger Global Investors assumed the
investment sub-advisory responsibilities of State Street Global Advisors.
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
GROWTH AND INCOME FUND
--------------------------------------------------------------------------------------------------
Six months ended Year ended Year ended Year ended Year ended
April 30, 1998 October 31, 1997 October 31, 1996 October 31, 1995<F3> October 31,
----------------- -------------------- ----------------- --------------------- ----------------
Series Series Series Series Series Series Series Series
A Inst'l. A Inst'l. A Inst'l. A Inst'l. 1994 1993<F2>
------ ------ ------ ------ ------ ----- ------- ------ ------ ------
Per Share Data: (Unaudited)
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $39.24 $39.28 $33.07 $33.08 $27.62 $27.63 $23.09 $23.09 $23.70 $22.27
Income from investment
operations:
Net investment income 0.16 0.21 0.37 0.46 0.42<F8> 0.50<F8> 0.37 0.42 0.43 0.56
Net realized and
unrealized gains
(losses) on securities 8.56 8.56 8.92 8.94 6.61 6.61 5.14 5.14 (0.03) 1.63
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total from investment
operations 8.72 8.77 9.29 9.40 7.03 7.11 5.51 5.56 0.40 2.19
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment income (0.16) (0.20) (0.39) (0.47) (0.39) (0.47) (0.38) (0.42) (0.42) (0.57)
Distributions from
capital gains (1.39) (1.39) (2.73) (2.73) (1.19) (1.19) (0.60) (0.60) (0.59) (0.19)
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total distributions (1.55) (1.59) (3.12) (3.20) (1.58) (1.66) (0.98) (1.02) (1.01) (0.76)
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Net asset value,
end of period $46.41 $46.46 $39.24 $39.28 $33.07 $33.08 $27.62 $27.63 $23.09 $23.70
===== ===== ===== ===== ===== ===== ===== ===== ===== =====
Total return <F4><F5> 22.88% 23.00% 30.47% 30.83% 26.62% 26.90% 24.75% 25.00% 1.84% 9.93%
Supplemental data
and ratios:
Net assets, in thousands,
end of period $178,853 $463,031 $128,070 $366,020 $71,310 $226,888 $42,424 $162,752 $164,053$160,704
Ratio of net
expenses to average
net assets <F6> 1.12% 0.87% 1.12% 0.87% 1.15% 0.90% 1.09% 0.90% 0.90% 0.88%
Ratio of net investment
income to average net
assets <F6> 0.77% 1.02% 1.09% 1.34% 1.42% 1.67% 1.51% 1.70% 1.89% 2.44%
Portfolio turnover
rate <F4><F7> 19.34% 19.34% 31.36% 31.36% 51.37% 51.37% 47.85% 47.85% 56.85% 86.24%
Average commission rate
paid <F7> $0.0505 $0.0505 $0.0558 $0.0558 $0.0573 $0.0573
</TABLE>
<F1> Commencement of operations.
<F2> Effective June 17, 1993, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F3> On January 9, 1995, all previously existing series of shares of each Fund
were reclassified as Series A shares. Effective January 9, 1995,
Institutional shareowners exchanged their Series A shares for the Funds'
Institutional series shares. For the year ended October 31, 1995, the
Financial Highlights ratios of net expenses to average net assets, ratios
of net investment income to average net assets, total return and the per
share income from investment operations and distributions are presented on
a basis whereby the Funds' net investment income, net expenses, net
realized and unrealized gains (losses) and distributions for the period
November 1, 1994, through January 9, 1995, were allocated to each class of
shares based upon the relative net assets of each class of shares as of the
close of business on January 9, 1995, and the results thereof combined with
the results of operations and distributions for each applicable class for
the period January 10, 1995, through October 31, 1995.
<F4> Not annualized for the period ended October 31, 1993, for the Growth Fund,
for the period ended October 31, 1997, for the Emerging Growth Fund, for
the periods ended October 31, 1996 and June 30, 1996, for the MicroCap
Fund, for the period ended October 31, 1994, for the International Equity
Fund, and for the period ended April 30, 1998 for all Funds.
<F5> The total return does not reflect the 4% front-end sales charge for Series
A.
<F6> Annualized for the period ended October 31, 1993, for the Growth Fund, for
the period ended October 31, 1997, for the Emerging Growth Fund, for the
periods ended October 31, 1996 and June 30, 1996, for the MicroCap Fund,
for the period ended October 31, 1994, for the International Equity Fund
and for the period ended April 30, 1998 for all Funds.
<F7> Portfolio turnover and average commission rate paid is calculated on the
basis of the Fund as a whole without distinguishing between the classes of
shares issued.
<F8> Net investment income per share is calculated using ending balances prior
to consideration of adjustments for permanent book and tax differences.
<F9> Effective September 2, 1997, Hansberger Global Investors assumed the
investment sub-advisory responsibilities of State Street Global Advisors.
<F10>Net investment income per share is calculated using the average shares
outstanding.Commencement of operations.
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
EQUITY INDEX FUND
--------------------------------------------------------------------------------------------------
Six months ended Year ended Year ended Year ended Year ended
April 30, 1998 October 31, 1997 October 31, 1996 October 31, 1995<F3> October 31,
----------------- -------------------- ----------------- --------------------- ----------------
Series Series Series Series Series Series Series Series
A Inst'l. A Inst'l. A Inst'l. A Inst'l. 1994 1993
------ ------ ------ ------ ------ ----- ------- ------ ------ ------
Per Share Data: (Unaudited)
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $63.11 $63.16 $49.40 $49.43 $41.07 $41.08 $33.41 $33.41 $33.04 $29.72
Income from investment
operations:
Net investment income 0.40<F10> 0.49<F10>0.80 0.95 0.77<F8> 0.91<F8> 0.70 0.76 0.77 0.75
Net realized and
unrealized gains
(losses) on securities 13.34 13.35 14.33 14.33 8.69 8.68 7.70 7.71 0.35 3.32
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total from investment
operations 13.74 13.84 15.13 15.28 9.46 9.59 8.40 8.47 1.12 4.07
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment income (0.41) (0.48) (0.81) (0.94) (0.78) (0.89) (0.68) (0.74) (0.75) (0.75)
Distributions from
capital gains (1.11) (1.11) (0.61) (0.61) (0.35) (0.35) (0.06) (0.06) _ _
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total distributions (1.52) (1.59) (1.42) (1.55) (1.13) (1.24) (0.74) (0.80) (0.75) (0.75)
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Net asset value,
end of period $75.33 $75.41 $63.11 $63.16 $49.40 $49.43 $41.07 $41.08 $33.41 $33.04
===== ===== ===== ===== ===== ===== ===== ===== ===== =====
Total return <F4><F5> 22.14% 22.28% 31.08% 31.38% 23.36% 23.68% 25.79% 26.02% 3.51% 13.79%
Supplemental data
and ratios:
Net assets, in thousands,
end of period $105,331 $439,195 $76,866 $315,759 $39,656 $212,072 $18,663 $138,106 $107,563 $83,820
Ratio of net
expenses to average
net assets <F6> 0.62% 0.37% 0.63% 0.38% 0.66% 0.41% 0.66% 0.46% 0.50% 0.50%
Ratio of net investment
income to average net
assets <F6> 1.17% 1.42% 1.40% 1.66% 1.76% 2.01% 2.14% 2.34% 2.38% 2.32%
Portfolio turnover
rate <F4><F7> 2.11% 2.11% 9.81% 9.81% 7.48% 7.48% 4.61% 4.61% 13.28% 13.78%
Average commission rate
paid <F7> $0.0559 $0.0559 $0.0592 $0.0592 $0.0604 $0.0604
</TABLE>
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
GROWTH FUND
--------------------------------------------------------------------------------------------------
Six months ended Year ended Year ended Year ended Year Dec 29, 1992<F2>
April 30, 1998 October 31, 1997 October 31, 1996 October 31, 1995<F3> ended through
----------------- -------------------- ----------------- ---------------------
Series Series Series Series Series Series Series Series Oct. 31, Oct. 31,
A Inst'l. A Inst'l. A Inst'l. A Inst'l. 1994 1993
------ ------ ------ ------ ------ ----- ------- ------ ------ ------
Per Share Data: (Unaudited)
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $35.27 $35.48 $30.32 $30.43 $25.58 $25.61 $21.47 $21.47 $21.40 $20.09
Income from investment
operations:
Net investment income (0.03) 0.02 (0.05) <F8>0.04<F8>(0.07) <F8>(0.01) <F8>(0.02) 0.03 0.06 0.09
Net realized and
unrealized gains
(losses) on securities 6.92 6.96 6.30 6.31 4.81 4.83 4.16 4.16 0.06 1.32
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total from investment
operations 6.89 6.98 6.25 6.35 4.74 4.82 4.14 4.19 0.12 1.41
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment income (0.02) (0.03) _ _ _ _ (0.03) (0.05) (0.05) (0.10)
Distributions from
capital gains (5.17) (5.17) (1.30) (1.30) _ _ _ _ _ _
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total distributions (5.19) (5.20) (1.30) (1.30) _ _ (0.03) (0.05) (0.05) (0.10)
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Net asset value,
end of period $36.97 $37.26 $35.27 $35.48 $30.32 $30.43 $25.58 $25.61 $21.47 $21.40
===== ===== ===== ===== ===== ===== ===== ===== ===== =====
Total return <F4><F5> 22.73% 22.88% 21.30% 21.56% 18.53% 18.82% 19.31% 19.55% 0.56% 7.53%
Supplemental data
and ratios:
Net assets, in thousands,
end of period $34,481 $195,533 $25,043 $181,650 $16,636 $155,293 $10,105 $134,428 $113,197 $84,467
Ratio of net
expenses to average
net assets <F6> 1.14% 0.89% 1.14% 0.89% 1.15% 0.90% 1.09% 0.90% 0.88% 0.89%
Ratio of net investment
income to average net
assets <F6> (0.13)% 0.12% (0.16)% 0.09% (0.29)% (0.04)% (0.06)% 0.13% 0.30% 0.57%
Portfolio turnover
rate <F4><F7> 21.38% 21.38% 62.09% 62.09% 56.75% 56.75% 49.84% 49.84% 33.24% 46.29%
Average commission rate
paid <F7> $0.0498 $0.0498 $0.0557 $0.0557 $0.0582 $0.0582
</TABLE>
<F1> Commencement of operations.
<F2> Effective June 17, 1993, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F3> On January 9, 1995, all previously existing series of shares of each Fund
were reclassified as Series A shares. Effective January 9, 1995,
Institutional shareowners exchanged their Series A shares for the Funds'
Institutional series shares. For the year ended October 31, 1995, the
Financial Highlights ratios of net expenses to average net assets, ratios
of net investment income to average net assets, total return and the per
share income from investment operations and distributions are presented on
a basis whereby the Funds' net investment income, net expenses, net
realized and unrealized gains (losses) and distributions for the period
November 1, 1994, through January 9, 1995, were allocated to each class of
shares based upon the relative net assets of each class of shares as of the
close of business on January 9, 1995, and the results thereof combined with
the results of operations and distributions for each applicable class for
the period January 10, 1995, through October 31, 1995.
<F4> Not annualized for the period ended October 31, 1993, for the Growth Fund,
for the period ended October 31, 1997, for the Emerging Growth Fund, for
the periods ended October 31, 1996 and June 30, 1996, for the MicroCap
Fund, for the period ended October 31, 1994, for the International Equity
Fund, and for the period ended April 30, 1998 for all Funds.
<F5> The total return does not reflect the 4% front-end sales charge for Series
A.
<F6> Annualized for the period ended October 31, 1993, for the Growth Fund, for
the period ended October 31, 1997, for the Emerging Growth Fund, for the
periods ended October 31, 1996 and June 30, 1996, for the MicroCap Fund,
for the period ended October 31, 1994, for the International Equity Fund
and for the period ended April 30, 1998 for all Funds.
<F7> Portfolio turnover and average commission rate paid is calculated on the
basis of the Fund as a whole without distinguishing between the classes of
shares issued.
<F8> Net investment income per share is calculated using ending balances prior
to consideration of adjustments for permanent book and tax differences.
<F9> Effective September 2, 1997, Hansberger Global Investors assumed the
investment sub-advisory responsibilities of State Street Global Advisors.
<F10>Net investment income per share is calculated using the average shares
outstanding.Commencement of operations.
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
SPECIAL GROWTH FUND
--------------------------------------------------------------------------------------------------
Six months ended Year ended Year ended Year ended Year ended
April 30, 1998 October 31, 1997 October 31, 1996 October 31, 1995<F3> October 31,
----------------- -------------------- ----------------- --------------------- ----------------
Series Series Series Series Series Series Series Series
A Inst'l. A Inst'l. A Inst'l. A Inst'l. 1994 1993
------ ------ ------ ------ ------ ----- ------- ------ ------ ------
Per Share Data: (Unaudited)
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $44.36 $44.70 $41.38 $41.58 $41.40 $41.47 $33.19 $33.19 $32.34 $28.50
Income from investment
operations:
Net investment income (0.10)<F10> (0.05)<F10>(0.20)<F8>(0.11)<F8>(0.13)<F8>(0.04) <F8>(0.07) 0.00 0.04 0.07
Net realized and
unrealized gains
(losses) on securities 6.57 6.64 8.44 8.49 4.70 4.74 8.49 8.49 0.85 4.47
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total from investment
operations 6.47 6.59 8.24 8.38 4.57 4.70 8.42 8.49 0.89 4.54
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment income _ _ _ _ _ _ _ _00 (0.04) (0.08)
Distributions from
capital gains (4.46) (4.46) (5.26) (5.26) (4.59) (4.59) (0.21) (0.21) _00 (0.62)
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total distributions (4.46) (4.46) (5.26) (5.26) (4.59) (4.59) (0.21) (0.21) (0.04) (0.70)
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Net asset value,
end of period $46.37 $46.83 $44.36 $44.70 $41.38 $41.58 $41.40 $41.47 $33.19 $32.34
===== ===== ===== ===== ===== ===== ===== ===== ===== =====
Total return <F4><F5> 16.07% 16.23% 22.18% 22.44% 12.27% 12.58% 25.56% 25.79% 2.77% 16.15%
Supplemental data
and ratios:
Net assets, in thousands,
end of period $172,611 $594,220 $147,396 $569,028 $111,159 $482,857 $87,269 $434,228 $395,584$347,130
Ratio of net
expenses to average
net assets <F6> 1.13% 0.88% 1.12% 0.87% 1.13% 0.88% 1.09% 0.90% 0.89% 0.88%
Ratio of net investment
income to average net
assets <F6> (0.48)% (0.23)% (0.50)% (0.25)% (0.35)% (0.10)% (0.19)% 0.00% 0.13% 0.24%
Portfolio turnover
rate <F4><F7> 45.47% 45.47% 97.40% 97.40% 103.34% 103.34% 79.25% 79.25% 69.74% 58.80%
Average commission rate
paid <F7> $0.0514 $0.0514 $0.0550 $0.0550 $0.0576 $0.0576
</TABLE>
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
EMERGING GROWTH FUND
--------------------------------------
Six months August 15, 1997 <F1>
ended through
April 30, 1998 October 31, 1997
----------------- --------------------
Series Series Series Series
A Inst'l. A Inst'l.
------ ------ ------ ------
Per Share Data: (Unaudited)
<C> <C> <C> <C>
Net asset value,
beginning of period $10.31 $10.31 $10.00 $10.00
Income from investment
operations:
Net investment income (0.01)<F10>_<F10> 0.02 0.02
Net realized and
unrealized gains
(losses) on securities 1.43 1.43 0.29 0.29
----- ----- ----- -----
Total from investment
operations 1.42 1.43 0.31 0.31
----- ----- ----- -----
Less distributions:
Dividends from net
investment income (0.02) (0.02) _ _
Distributions from
capital gains (0.05) (0.05) _ _
----- ----- ----- -----
Total distributions (0.07) (0.07) _ _
----- ----- ----- -----
Net asset value,
end of period $11.66 $11.67 $10.31 $10.31
===== ===== ===== =====
Total return <F4><F5> 13.94% 14.08% 3.10% 3.10%
Supplemental data
and ratios:
Net assets, in thousands,
end of period $10,598 $66,586 $5,355 $48,044
Ratio of net
expenses to average
net assets <F6> 1.15% 0.90% 1.15% 0.90%
Ratio of net investment
income to average net
assets <F6> (0.20)% 0.05% 0.93% 1.18%
Portfolio turnover
rate <F4><F7> 58.07% 58.07% 14.51% 14.51%
Average commission rate
paid <F7> $0.0491 $0.0491 $0.0493 $0.0493
</TABLE>
<F1> Commencement of operations.
<F2> Effective June 17, 1993, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F3> On January 9, 1995, all previously existing series of shares of each Fund
were reclassified as Series A shares. Effective January 9, 1995,
Institutional shareowners exchanged their Series A shares for the Funds'
Institutional series shares. For the year ended October 31, 1995, the
Financial Highlights ratios of net expenses to average net assets, ratios
of net investment income to average net assets, total return and the per
share income from investment operations and distributions are presented on
a basis whereby the Funds' net investment income, net expenses, net
realized and unrealized gains (losses) and distributions for the period
November 1, 1994, through January 9, 1995, were allocated to each class of
shares based upon the relative net assets of each class of shares as of the
close of business on January 9, 1995, and the results thereof combined with
the results of operations and distributions for each applicable class for
the period January 10, 1995, through October 31, 1995.
<F4> Not annualized for the period ended October 31, 1993, for the Growth Fund,
for the period ended October 31, 1997, for the Emerging Growth Fund, for
the periods ended October 31, 1996 and June 30, 1996, for the MicroCap
Fund, for the period ended October 31, 1994, for the International Equity
Fund, and for the period ended April 30, 1998 for all Funds.
<F5> The total return does not reflect the 4% front-end sales charge for Series
A.
<F6> Annualized for the period ended October 31, 1993, for the Growth Fund, for
the period ended October 31, 1997, for the Emerging Growth Fund, for the
periods ended October 31, 1996 and June 30, 1996, for the MicroCap Fund,
for the period ended October 31, 1994, for the International Equity Fund
and for the period ended April 30, 1998 for all Funds.
<F7> Portfolio turnover and average commission rate paid is calculated on the
basis of the Fund as a whole without distinguishing between the classes of
shares issued.
<F8> Net investment income per share is calculated using ending balances prior
to consideration of adjustments for permanent book and tax differences.
<F9> Effective September 2, 1997, Hansberger Global Investors assumed the
investment sub-advisory responsibilities of State Street Global Advisors.
<F10>Net investment income per share is calculated using the average shares
outstanding.Commencement of operations.
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
MICROCAP FUND
-----------------------------------------------------------------------------
Six months Year July 1, 1996 August 1, 1995<F1>
ended ended through through
April 30, 1998 October 31, 1997 October 31, 1996 June 30, 1996
----------------- -------------------- ----------------- ---------------------
Series Series Series Series Series Series Series Series
A Inst'l. A Inst'l. A Inst'l. A Inst'l.
------ ------ ------ ------ ------ ----- ------- ------
Per Share Data: (Unaudited)
<C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $17.47 $17.57 $16.16 $16.20 $ 15.42 $ 15.45 $ 10.00 $ 10.00
Income from investment
operations:
Net investment income (0.14)<F10>(0.12) <F10>(0.18) <F8>(0.15) <F8>(0.08) <F8>(0.07) <F8>(0.02)(0.02)
Net realized and
unrealized gains
(losses) on securities 3.10 3.12 4.24 4.27 0.82 0.82 6.10 6.14
----- ----- ----- ----- ----- ----- ----- -----
Total from investment
operations 2.96 3.00 4.06 4.12 0.74 0.75 6.08 6.12
----- ----- ----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment income _ _ _ _ _ _ (0.04) (0.05)00
Distributions from
capital gains (1.67) (1.67) (2.75) (2.75) _ _ (0.62) (0.62)
----- ----- ----- ----- ----- ----- ----- -----
Total distributions (1.67) (1.67) (2.75) (2.75) _ _ (0.66) (0.67)
----- ----- ----- ----- ----- ----- ----- -----
Net asset value,
end of period $18.76 $18.90 $17.47 $17.57 $ 16.16 $ 16.20 $ 15.42 $ 15.45
===== ===== ===== ===== ===== ===== ===== =====
Total return <F4><F5> 18.63% 18.77% 29.78% 30.12% 4.80% 4.85% 63.52% 63.93%
Supplemental data
and ratios:
Net assets, in thousands,
end of period $18,772 $116,580 $16,793 $103,840 $ 9,273 $66,368 $9,036 $ 63,595
Ratio of net
expenses to average
net assets <F6> 1.98% 1.73% 1.95% 1.70% 1.97% 1.72% 1.99% 1.74%
Ratio of net investment
income to average net
assets <F6> (1.79)% (1.54)% (1.42)% (1.21)% (1.69)% (1.44)% (0.36)% (0.16)%
Portfolio turnover
rate <F4><F7> 74.11% 74.11% 158.39% 158.39% 64.44% 64.44% 283.67% 283.67%
Average commission rate
paid <F7> $0.0515 $0.0515 $0.0475 $0.0475 $0.0460 $0.0460 $ 0.0423 $ 0.0423
</TABLE>
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------------------------
Six months ended Year ended Year ended Year ended April 28, 1994<F1>
April 30, 1998 October 31, 1997<F9> October 31, 1996 October 31, 1995<F3> through
----------------- -------------------- ----------------- ---------------------
Series Series Series Series Series Series Series Series October 31,
A Inst'l. A Inst'l. A Inst'l. A Inst'l. 1994
------ ------ ------ ------ ------ ----- ------- ------ ------
Per Share Data: (Unaudited)
<C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $18.58 $18.64 $20.21 $20.27 $19.15 $19.19 $19.99 $19.99 $20.00
Income from investment
operations:
Net investment income 0.06 0.08 0.06<F8> 0.10<F8> 0.07<F8> 0.11<F8> 0.08 0.12 0.04
Net realized and
unrealized gains
(losses) on securities 1.33 1.33 (1.10) (1.10) 1.43 1.44 (0.87) (0.87) (0.05)
----- ----- ----- ----- ----- ----- ----- ----- -----
Total from investment
operations 1.39 1.41 (1.04) (1.00) 1.50 1.55 (0.79) (0.75) (0.01)
----- ----- ----- ----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment income (0.08) (0.09) (0.13) (0.17) (0.07) (0.10) (0.04) (0.04) _
Distributions from
capital gains (0.37) (0.37) (0.46) (0.46) (0.37) (0.37 (0.01) (0.01) _
----- ----- ----- ----- ----- ----- ----- ----- -----
Total distributions (0.45) (0.46) (0.59) (0.63) (0.44) (0.47) (0.05) (0.05) _
----- ----- ----- ----- ----- ----- ----- ----- -----
Net asset value,
end of period $19.52 $19.59 $18.58 $18.64 $20.21 $20.27 $19.15 $19.19 $19.99
===== ===== ===== ===== ===== ===== ===== ===== =====
Total return <F4><F5> 7.81% 7.88% (5.30)% (5.10)% 7.95% 8.21% (3.95)% (3.75)% (0.05)%
Supplemental data
and ratios:
Net assets, in thousands,
end of period $7,910 $66,403 $6,502 $57,206 $3,769 $43,182 $1,633 $31,187 $23,756
Ratio of net
expenses to average
net assets <F6> 1.75% 1.50% 1.75% 1.50% 1.75% 1.50% 1.70% 1.50% 1.49%
Ratio of net investment
income to average net
assets <F6> 0.72% 0.97% (0.55)% (0.30)% 0.37% 0.62% 0.46% 0.66% 0.44%
Portfolio turnover
rate <F4><F7> 18.98% 18.98% 97.09% 97.09% 31.57% 31.57% 15.12% 15.12% 6.55%
Average commission rate
paid <F7> $0.0159 $0.0159 $0.0087 $0.0087 $0.0167 $0.0167
</TABLE>
<F1> Commencement of operations.
<F2> Effective June 17, 1993, FIRMCO assumed the investment advisory
responsibilities of Firstar Trust Company.
<F3> On January 9, 1995, all previously existing series of shares of each Fund
were reclassified as Series A shares. Effective January 9, 1995,
Institutional shareowners exchanged their Series A shares for the Funds'
Institutional series shares. For the year ended October 31, 1995, the
Financial Highlights ratios of net expenses to average net assets, ratios
of net investment income to average net assets, total return and the per
share income from investment operations and distributions are presented on
a basis whereby the Funds' net investment income, net expenses, net
realized and unrealized gains (losses) and distributions for the period
November 1, 1994, through January 9, 1995, were allocated to each class of
shares based upon the relative net assets of each class of shares as of the
close of business on January 9, 1995, and the results thereof combined with
the results of operations and distributions for each applicable class for
the period January 10, 1995, through October 31, 1995.
<F4> Not annualized for the period ended October 31, 1993, for the Growth Fund,
for the period ended October 31, 1997, for the Emerging Growth Fund, for
the periods ended October 31, 1996 and June 30, 1996, for the MicroCap
Fund, for the period ended October 31, 1994, for the International Equity
Fund, and for the period ended April 30, 1998 for all Funds.
<F5> The total return does not reflect the 4% front-end sales charge for Series
A.
<F6> Annualized for the period ended October 31, 1993, for the Growth Fund, for
the period ended October 31, 1997, for the Emerging Growth Fund, for the
periods ended October 31, 1996 and June 30, 1996, for the MicroCap Fund,
for the period ended October 31, 1994, for the International Equity Fund
and for the period ended April 30, 1998 for all Funds.
<F7> Portfolio turnover and average commission rate paid is calculated on the
basis of the Fund as a whole without distinguishing between the classes of
shares issued.
<F8> Net investment income per share is calculated using ending balances prior
to consideration of adjustments for permanent book and tax differences.
<F9> Effective September 2, 1997, Hansberger Global Investors assumed the
investment sub-advisory responsibilities of State Street Global Advisors.
<F10>Net investment income per share is calculated using the average shares
outstanding.Commencement of operations.
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
SIX MONTHS ENDED APRIL 30, 1998
(UNAUDITED) BALANCED GROWTH EQUITY
GROWTH AND INCOME INDEX GROWTH
FUND FUND FUND FUND
--------- --------- --------- ---------
<C> <C> <C> <C>
INVESTMENT INCOME:
Dividend income:
Domestic $ 300 $ 4,279 $ 3,294 $ 586
Foreign (net of
withholding taxes of $84) _ _ _ _
Interest income:
Domestic 2,892 1,029 798 496
Foreign _ _ _ _
Other income: _ _ 6 2
3,192 5,308 4,098 1,084
EXPENSES:
Investment advisory fees 828 2,094 571 806
Administration fees 122 309 252 119
Shareowner servicing
and accounting costs 63 102 79 50
Service organization fees _ Series A 63 186 111 36
Custody fees 35 50 49 25
Federal and state registration fees 12 32 16 9
Professional fees 13 13 13 12
Reports to shareowners 18 42 28 10
Amortization of organization costs _ _ _ _
Directors' fees and expenses 4 4 4 4
Other 3 9 7 3
Total expenses before waiver 1,161 2,841 1,130 1,074
Less: Waiver of expenses (270) (207) (169) (80)
Net Expenses 891 2,634 961 994
NET INVESTMENT INCOME 2,301 2,674 3,137 90
REALIZED AND UNREALIZED GAIN:
Net realized gain on:
Investments 6,617 23,870 4,316 17,766
Foreign currency _ _ _ _
Change in unrealized
appreciation on:
Investments 19,372 89,776 84,860 26,792
Foreign currency _ _ _ _
Net gain on investments
and foreign currency 25,989 113,646 89,176 44,558
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $28,290 $116,320 $92,313 $44,648
</TABLE>
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
SIX MONTHS ENDED APRIL 30, 1998
(UNAUDITED)
SPECIAL EMERGING INTERNATIONAL
GROWTH GROWTH MICROCAP EQUITY
FUND FUND FUND FUND
--------- --------- --------- ---------
<C> <C> <C> <C>
INVESTMENT INCOME:
Dividend income:
Domestic $ 1,020 $ 106 $ 49 _
Foreign (net of
withholding taxes of $84) _ _ _ $ 742
Interest income:
Domestic 1,264 189 62 _
Foreign _ _ _ 59
Other income: 51 _ _ _
2,335 295 111 801
EXPENSES:
Investment advisory fees 2,700 234 883 435
Administration fees 398 34 65 36
Shareowner servicing
and accounting costs 141 42 48 65
Service organization
fees _ Series A 193 9 20 9
Custody fees 82 15 24 79
Federal and state
registration fees 24 11 4 13
Professional fees 14 13 13 16
Reports to shareowners 58 12 21 4
Amortization of
organization costs _ 3 2 3
Directors' fees and expenses 4 4 3 4
Other 9 2 2 1
Total expenses before waiver 3,623 379 1,085 665
Less: Waiver of expenses (267) (90) (44) (171)
Net Expenses 3,356 289 1,041 494
NET INVESTMENT INCOME (LOSS) (1,021) 6 (930) 307
REALIZED AND UNREALIZED
GAIN (LOSS):
Net realized gain (loss) on:
Investments 20,540 1,411 17,375 (211)
Foreign currency _ _ _ (76)
Change in unrealized
appreciation
(depreciation) on:
Investments 90,219 7,824 5,223 5,340
Foreign currency _ _ _ (26)
Net gain on investments
and foreign currency 110,759 9,235 22,598 5,027
NET Increase IN NET Assets
RESULTING FROM OPERATIONS $109,738 $9,241 $21,668 $5,334
</TABLE>
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ----------------
COMMON STOCKS 59.9%
AEROSPACE & AIRCRAFT 0.7%
39,300 Gulfstream Aerospace Corporation <F1> $1,648
AIR TRANSPORTATION 0.5%
16,900 FDX Corporation <F1> 1,149
AUTO & TRUCK 0.0%
1,200 Applied Power, Inc. - Class A 45
--------
BANKING 1.1%
5,875 Charter One Financial, Inc. 398
15,600 First Union Corporation 942
500 Peoples Heritage Financial Group, Inc. 24
18,400 Washington Mutual, Inc. 1,289
--------
2,653
--------
BUILDING MATERIALS 0.3%
21,600 Royal Group Technologies Ltd. <F1> 671
--------
BUSINESS MACHINES & SOFTWARE 2.5%
45,600 Cadence Design Systems, Inc. <F1> 1,656
2,900 Computer Associates International, Inc. 170
1,700 Digi International, Inc. <F1> 45
3,800 HNC Software, Inc. <F1> 148
1,700 Harbinger Corporation<F1> 62
10,000 Hypercom Corporation<F1> 130
5,150 National Instruments Corporation <F1> 183
21,300 Network Associates, Inc. <F1> 1,459
15,000 Parametric Technology Company<F1> 479
18,700 Sterling Commerce, Inc. <F1> 796
22,200 Synopsys, Inc. <F1> 955
--------
6,083
--------
BUSINESS SERVICES 7.1%
9,900 ABR Information Services, Inc. <F1> 286
25,792 AccuStaff, Inc. <F1> 925
4,400 American Business Information, Inc. - Class A <F1> 59
3,600 American Business Information, Inc. - Class B <F1> 51
1,700 Catalina Marketing Corporation<F1> 88
500 Central Parking Corporation 23
20,700 Cambridge Technology Partners, Inc. <F1> 1,082
24,000 Ciber, Inc. <F1> 780
24,800 Cintas Corporation 1,181
25,800 Cognizant Corporation 1,327
37,000 Concord EFS, Inc. <F1> 1,166
8,700 First Data Corporation 295
21,325 FIserv, Inc. <F1> 1,394
13,400 F.Y.I. Incorporated <F1> 365
4,400 Gartner Group, Inc. <F1> 146
4,400 Manpower, Inc. 194
11,100 Mastech Corporation <F1> 294
24,900 May & Speh, Inc. <F1> 370
Number Market Value
of Shares (in thousands)
- ----------- ---------------
BUSINESS SERVICES 7.1% (CONT.)
11,700 National Data Corporation $ 478
7,200 Nova Corporation<F1> 245
52,900 Pittston Brink's Group 2,070
8,200 PMT Services, Inc. <F1> 160
21,350 Robert Half International, Inc. <F1> 1,156
5,900 Sabre Group Holdings, Inc. v 215
80,900 SunGard Data Systems, Inc. 2,882
17,100 Sykes Enterprises, Inc. <F1> 359
--------
17,591
--------
CHEMICALS 0.8%
11,900 Du pont (E.I.) De Nemours and Company 866
26,400 Sigma-Aldrich Corporation 1,053
--------
1,919
--------
COMMUNICATIONS & MEDIA 1.1%
4,500 Ha-Lo Industries, Inc. <F1> 151
30,500 Interpublic Group of Companies, Inc. 1,948
15,600 Omnicom Group, Inc. 739
--------
2,838
--------
COMPUTERS 1.3%
3,400 Black Box Corporation<F1> 113
8,800 CDW Computer Centers, Inc. <F1> 427
4,100 Compaq Computer Corporation 115
7,400 Dell Computer Corporation <F1> 598
37,800 Tech Data Corporation<F1> 1,885
--------
3,138
--------
CONSTRUCTION 0.1%
3,600 D.R. Horton, Inc. 67
8,000 Granite Construction, Inc. 236
1,200 Standard Pacific Corporation 20
--------
323
--------
CONSUMER PRODUCTS 0.4%
20,200 Newell Company 976
--------
DATA PROCESSING 0.6%
34,800 Acxiom Corporation <F1> 844
7,500 CCC Information Systems Group Inc. <F1> 180
9,100 CSG Systems International, Inc. <F1> 414
5,400 National Computer Systems, Inc. 135
--------
1,573
--------
DRUGS/MEDICAL SUPPLIES 2.2%
7,300 Barr Laboratories, Inc. <F1> 296
11,400 Elan Corporation PLC ADR <F1> 708
12,000 Merck & Co., Inc. 1,446
11,500 Warner-Lambert Company 2,176
17,300 Watson Pharmaceuticals, Inc. <F1> 744
--------
5,370
--------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
ELECTRONICS & SCIENTIFIC INSTRUMENTS 1.2%
19,950 Cisco Systems, Inc. <F1> $ 1,461
3,100 Gemstar International Group Limited <F1> 120
8,700 Hewlett-Packard Company 655
18,310 Molex, Inc. - Class A 492
1,800 Plexus Corporation<F1> 40
2,600 Seitel, Inc. <F1> 44
5,000 Thermo Instrument Systems Inc. <F1> 148
--------
2,960
--------
ENTERTAINMENT & LEISURE 1.0%
35,900 American Skiing Company<F1> 556
6,000 Cinar Films Inc. - Class B <F1> 116
6,200 Hasbro, Inc. 228
4,900 Imax Corporation<F1> 134
3,500 Scientific Games Holdings Corporation<F1> 78
1,800 Signature Resorts, Inc. <F1> 32
3,900 Steiner Leisure Ltd. <F1> 123
9,500 The Walt Disney Company 1,181
--------
2,448
--------
FINANCIAL SERVICES 4.9%
9,300 ARM Financial Group, Inc. - Class A 199
10,900 Associates First Capital Corporation 815
200 BancTec, Inc. <F1> 4
8,400 The BISYS Group, Inc. <F1> 332
3,700 CMAC Investment Corporation 239
48,700 E*TRADE Group, Inc. <F1> 1,214
16,800 Federal National Mortgage Association 1,006
5,200 Financial Security Assurance Holdings Ltd. 311
18,200 Franklin Resources, Inc. 974
3,100 Heller Financial, Inc. <F1> 84
9,400 Kansas City Southern Industries, Inc. 425
35,900 MBNA Corporation 1,216
2,000 Medallion Financial Corp. 60
2,800 Newcourt Credit Group, Inc. 138
51,400 The Charles Schwab Corporation 1,799
2,500 SEI Investments Company 185
11,300 State Street Corporation 808
21,450 SunAmerica, Inc. 1,071
4,400 T. Rowe Price Associates, Inc. 332
14,550 Travelers Group, Inc. 890
--------
12,102
--------
HEALTH CARE SERVICES & SUPPLIES 5.4%
7,350 Cardinal Health, Inc. 707
3,700 Cooper Companies, Inc. <F1> 142
3,400 First Health Group Corporation<F1> 201
32,100 Graham-Field Health Products, Inc. <F1> 213
29,350 Health Care & Retirement Corporation <F1> 1,196
60,502 Health Management Associates, Inc. - Class A <F1> 1,906
27,300 Healthsouth Corporation 824
26,100 Lincare Holdings, Inc. <F1> 2,117
8,300 Medtronic, Inc. 437
FIRSTAR FUNDS
(LOGO)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
HEALTH CARE SERVICES & SUPPLIES 5.4% (CONT.)
9,700 Mentor Corporation $ 264
40,700 PhyCor, Inc. <F1> 926
6,325 PSS World Medical, Inc. <F1> 143
25,250 Quorum Health Group, Inc. <F1> 811
21,300 Rural/Metro Corporation <F1> 692
10,700 Henry Schein, Inc. <F1> 417
19,500 Shared Medical Systems Corporation 1,422
9,200 Universal Health Services, Inc. - Class B<F1> 530
9,900 Vencor, Inc. <F1> 268
4,800 Weider Nutrition International, Inc. 68
--------
13,284
--------
HOSPITAL SUPPLIES & SERVICES 0.4%
8,300 Ballard Medical Products 209
10,100 Boston Scientific Corporation <F1> 730
4,600 Omnicare, Inc. 158
--------
1,097
--------
HOUSING 0.4%
34,600 Toll Brothers, Inc. <F1> 964
--------
INDUSTRIAL DISTRIBUTION 0.2%
700 Aviation Sales Company<F1> 25
4,000 Barnett, Inc. <F1> 81
600 Fastenal Company 34
5,900 MSC Industrial Direct Co., Inc. - Class A <F1> 300
--------
440
INSURANCE 6.0%
12,750 AFLAC, Inc. 829
34,800 AMBAC, Inc. 1,973
3,000 Annuity and Life Re (Holdings), Ltd. <F1> 72
26,500 Chartwell Re Corporation 817
3,070 Delphi Financial Group, Inc. <F1> 175
11,600 Enhance Financial Services Group, Inc. 796
5,300 Executive Risk Incorporated 353
28,200 MBIA, Inc. 2,104
42,300 MGIC Investment Corporation 2,666
63,000 Protective Life Corporation 2,339
29,700 ReliaStar Financial Corporation 1,355
8,500 Terra Nova (Bermuda) Holdings Ltd. 260
13,300 United Wisconsin Services, Inc. 413
13,100 Vesta Insurance Group, Inc. 742
--------
14,894
--------
LODGING 0.4%
21,090 Promus Hotel Corporation <F1> 953
--------
MEDICAL INSTRUMENTS 0.3%
2,500 Physio-Control International Corporation <F1> 57
7,900 Sofamor Danek Group, Inc. <F1> 693
--------
750
--------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
MULTI-INDUSTRY 2.3%
16,700 Leggett & Platt, Inc. $ 867
22,150 Thermo Electron Corporation <F1> 882
69,900 Tyco International, Ltd. 3,810
--------
5,559
--------
NATURAL GAS 0.4%
21,500 Enron Corporation 1,058
--------
OIL & GAS - DOMESTIC 0.4%
9,600 Barrett Resources Corporation<F1> 356
2,100 Cabot Oil & Gas Corporation 49
13,700 Denbury Resources, Inc. <F1> 229
25,500 Forest Oil Corporation<F1> 398
--------
1,032
--------
OIL & GAS - SERVICES 1.3%
9,500 Halliburton Company 523
43,500 Newpark Resources, Inc. <F1> 1,047
14,300 Schlumberger, Ltd. 1,185
24,770 Swift Energy Company <F1> 494
--------
3,249
--------
POLLUTION CONTROL 0.6%
4,543 Philip Services Corp. <F1> 35
20,000 Tetra Technologies, Inc. <F1> 479
17,200 USA Waste Services, Inc. <F1> 844
--------
1,358
--------
REAL ESTATE INVESTMENT TRUSTS (REIT'S) 0.2%
13,400 Golf Trust of America, Inc. 437
--------
RESTAURANTS 0.0%
1,100 Papa John's International, Inc. <F1> 46
--------
RETAIL 6.0%
29,700 Bed Bath and Beyond, Inc. <F1> 1,463
500 Byrlane, Inc. <F1> 29
24,800 Costco Companies, Inc. <F1> 1,386
48,046 Dollar General Corporation 1,820
32,800 Eagle Hardware & Garden, Inc. <F1> 598
22,900 Federated Department Stores, Inc. <F1> 1,126
69,700 Food Lion, Inc. - Class A 706
26,800 General Nutrition Companies, Inc. <F1> 962
21,700 Goody's Family Clothing, Inc. <F1> 1,075
7,800 Home Depot, Inc. 543
700 Hughes Supply, Inc. 27
10,700 The Men's Wearhouse, Inc. <F1> 451
14,800 Office Depot, Inc. <F1> 490
21,200 Petco Animal Supplies, Inc. <F1> 419
31,600 Pier 1 Imports, Inc. 833
11,800 Ross Stores, Inc. 545
25,400 Safeway, Inc. <F1> 971
24,800 Staples, Inc. <F1> 612
Number Market Value
of Shares (in thousands)
- ----------- ---------------
RETAIL 6.0% (CONT.)
19,900 Stein Mart, Inc. <F1> $ 701
--------
14,757
--------
SCHOOLS 0.4%
13,800 Apollo Group, Inc. <F1> 473
12,000 Computer Learning Centers, Inc. <F1> 145
7,300 Sylvan Learning Systems, Inc. <F1> 360
--------
978
--------
SECURITY SERVICES 0.4%
27,500 Corrections Corporation of America <F1> 763
1,000 The Wackenhut Corporation - Class A 24
6,500 Wackenhut Corrections Corporation<F1> 170
--------
957
--------
SEMICONDUCTORS 1.0%
10,900 Intel Corporation 881
41,600 Maxim Integrated Products, Inc. <F1> 1,680
--------
2,561
--------
SHIPBUILDING 0.1%
10,500 Avondale Industries, Inc. <F1> 282
--------
SOFTWARE 1.0%
18,000 Avant! Corporation<F1> 522
2,000 Axent Technologies, Inc. <F1> 52
6,600 Electronic Arts, Inc.* 305
4,100 Hyperion Software Corporation<F1> 178
2,600 JDA Software Group, Inc. <F1> 131
9,500 Microsoft Corporation <F1> 856
15,300 Software AG Systems, Inc. <F1> 379
--------
2,423
--------
TELECOMMUNICATIONS 1.6%
55,000 Cincinnati Bell, Inc. 2,104
34,500 MCI Communications Corporation 1,736
--------
3,840
--------
TELECOMMUNICATIONS EQUIPMENT 2.1%
14,700 Advanced Fibre Communications, Inc. <F1> 623
22,500 CIENA Corporation <F1> 1,254
13,100 ECI Telecommunications Limited Designs 399
22,200 Lucent Technologies, Inc. 1,690
13,100 Tellabs, Inc. <F1> 928
4,900 World Access, Inc. <F1> 189
--------
5,083
--------
Textiles & Apparel 1.7%
5,500 Columbia Sportswear Company<F1> 117
29,100 Jones Apparel Group, Inc. <F1> 1,741
14,900 Liz Claiborne, Inc. 733
29,000 Polo Ralph Lauren Corporation <F1> 816
24,000 Wolverine World Wide, Inc. 693
--------
4,100
--------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
TRANSPORTATION 0.8%
55,300 Harley-Davidson, Inc. $ 1,991
--------
TRAVEL & RECREATION 0.7%
25,600 Carnival Corporation - Class A 1,781
--------
Total Common Stocks (Cost $96,433) 147,361
--------
PREFERRED STOCK 0.1%
INSURANCE 0.1%
5,000 U.S. West Communications Group (convertible to 293
--------
Enhance Financial Services
Group common stock)
Total Preferred Stock (Cost $203) 293
--------
Principal
Amount
(in thousands)
- ---------------
LONG-TERM INVESTMENTS 33.6%
ASSET-BACKED SECURITIES 5.3%
AUTO LOAN RECEIVABLES 0.1%
Premier Auto Trust,
$ 76 Series 1993-5, Class A2, 4.22%, 3/02/99 76
Western Financial Grantor Trust,
159 Series 1995-2, Class A-1, 7.10%, 7/01/00 160
--------
236
--------
CREDIT CARD RECEIVABLES 5.2%
Banc One Credit Card Master Trust,
1,750 Series 1995-B, Class A, 6.30%, 9/15/00 1,767
Chase Credit Card Master Trust,
2,300 Series 1995-2, Class XX, 6.23%, 6/15/03 2,319
Chemical Master Credit Card Trust I,
500 Series 1996-1, Class A, 5.55%, 9/15/03 496
Citibank Credit Card Master Trust, Principal Only,
3,300 Series 1996-1, 0.00%, 2/07/01 2,804
First Chicago Master Trust II,
1,150 Series 1994-L, Class A, 7.15%, 2/15/00 1,165
Household Affinity Credit Card Master Trust I,
500 Series 1993-2, Class A, 5.60%, 11/15/00 498
HFC Private Label Credit Card Master Trust II,
292 Series 1994-2, Class A, 7.80%, 9/20/03 295
Sears Credit Account Master Trust:
2,700 Series 1994-1, Class A, 7.00%, 8/15/00 2,735
700 Series 1995-2, Class A, 8.10%, 1/15/01 723
--------
12,802
--------
CORPORATE BONDS 9.1%
Atlantic Richfield Co. Debentures,
300 8.50%, 4/01/12 360
BankAmerica Corporation Subordinated Notes,
350 7.75%, 7/15/02 369
Barclays American Corp. Debentures,
250 9.75%, 5/15/21 283
Chase Manhattan Corporation Debentures,
250 10.00%, 6/15/99 261
Principal
Amount Market Value
(in thousands) (in thousands)
- --------------- ---------------
CORPORATE BONDS 9.1% (CONT.)
Commonwealth Edison Debentures,
$ 900 9.875%, 6/15/20 $1,054
Continental Bank Subordinated Notes,
300 12.50%, 4/01/01 348
Continental Cablevision, Inc. Debentures:
350 8.875%, 9/15/05 394
600 9.50%, 8/01/13 703
Dayton Hudson Corporation Debentures,
250 10.00%, 1/01/11 323
Deseret Generation & Transmission Coop
194 Debentures, 9.375%, 1/02/11 202
Dresdner Bank New York Subordinated Debentures,
800 7.25%, 9/15/15 829
Federal Express Corporation Debentures,
250 9.625%, 10/15/19 268
Federal Express Corporation Notes,
500 9.65%, 6/15/12 643
Ford Capital BV Notes,
250 10.125%, 11/15/00 273
Ford Motor Credit Co. Notes,
650 6.375%, 4/15/00 653
General Motors Acceptance Corp. Medium Term Notes,
1,000 6.70%, 4/30/01 1,014
Georgia Pacific Corporation Debentures:
300 9.50%, 12/01/11 368
300 9.875%, 11/01/21 334
100 9.50%, 5/15/22 114
Goldman Sachs Group Notes,
1,500 6.25%, 2/01/03 (Acquired 2/01/96;
Cost $1,496) <F2> 1,493
GTE Corporation Debentures,
250 10.25%, 11/01/20 280
Heller Financial, Inc. Notes,
350 7.875%, 11/01/99 358
Household Finance Corporation Limited Senior
1,000 Notes, 7.125%, 4/30/99 1,011
Household Finance Corporation Senior Subordinated
500 Notes, 9.625%, 7/15/00 534
Lehman Brothers Holdings, Inc. Notes:
350 6.65%, 11/08/99 354
300 8.875%, 2/15/00 314
Lehman Brothers, Inc. Debentures,
700 9.875%, 10/15/00 756
Lehman Brothers, Inc. Senior Subordinated Notes,
700 10.00%, 5/15/99 727
The May Department Stores Company Debentures,
300 9.875%, 6/15/21 342
NCNB Corporation Subordinated Notes,
750 10.20%, 7/15/15 1,004
News America Holdings, Inc., Debentures,
300 10.125%, 10/15/12 354
Oneok, Inc. Debentures,
400 9.70%, 12/01/19 434
See notes to the financial statements.
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Principal
Amount Market Value
(in thousands) (in thousands)
- --------------- ---------------
CORPORATE BONDS 9.1% (CONT.)
Paine Webber Group Notes,
$500 8.875%, 3/15/05 $ 562
J.C. Penney Company, Inc. Debentures,
625 9.75%, 6/15/21 696
Rochester Telephone Debentures,
400 9.00%, 8/15/21 442
Rohm & Haas, Debentures,
650 9.50%, 4/01/21 738
Salomon, Inc. Senior Notes:
350 7.75%, 5/15/00 360
575 6.75%, 2/15/03 584
Salomon Smith Barney Holdings, Inc. Notes,
700 6.875%, 6/15/05 713
The Charles Schwab Corporation Medium
550 Term Notes, 5.90%, 10/01/99 549
Tenneco, Inc. Debentures,
425 7.45%, 12/15/25 445
U.S. West Communications Group Debentures,
575 8.875%, 6/01/31 636
--------
22,479
--------
MORTGAGE-BACKED SECURITIES 0.4%
Westam Mortgage Financial Corporation,
850 Series 11, Class A, 6.36%, 8/26/20 869
--------
INTERNATIONAL/YANKEE (U.S. $ DENOMINATED) 1.9%
Hydro-Quebec Debentures:
350 11.75%, 2/01/12 509
500 9.75%, 1/15/18 566
Korea Development Bank Bonds,
285 7.125%, 9/17/01 269
Korea Electric Power Debentures:
290 7.75%, 4/01/13 250
200 6.75%, 8/01/27 175
Midland Bank PLC Subordinated Notes,
950 6.95%, 3/15/11 963
National Bank of Hungary Debentures,
250 8.875%, 11/01/13 289
Norsk Hydro A/S Debentures,
350 9.00%, 4/15/12 422
Pohang Iron & Steel Notes,
200 7.125%, 7/15/04 177
Quebec (Province of) Debentures,
250 11.00%, 6/15/15 282
Sweden (Kingdom of) Debentures,
150 11.125%, 6/01/15 222
Wharf Capital International Ltd. Notes:
325 8.875%, 11/01/04 315
225 7.625%, 3/13/07 195
--------
4,634
--------
Principal
Amount Market Value
(in thousands) (in thousands)
- --------------- ---------------
U.S. GOVERNMENT AGENCY-BACKED MORTGAGE ISSUES 1.8%
Federal Home Loan Mortgage Corporation (FHLMC)
Real Estate Mortgage Investment Conduit (REMIC):
$ 569 Series 85, Class C, 8.60%, 1/15/21 $ 590
790 Series 1169, Class D, 7.00%, 5/15/21 797
800 Series 1136, Class H, 6.00%, 9/15/21 791
665 Series 1201, Class E, 7.40%, 12/15/21 676
Federal National Mortgage Association (FNMA)
Real Estate Mortgage Investment Conduit (REMIC):
577 Series 1989-37, Class XX, 8.00%, 7/25/19 596
538 Series 1990-30, Class E, 6.50%, 3/25/20 539
548 Series 1990-105, Class J, 6.50%, 9/25/20 547
--------
4,536
--------
U.S. TREASURY OBLIGATIONS 15.1%
U.S. Treasury Bonds:
3,200 10.75%, 2/15/03 3,867
3,975 10.75%, 8/15/05 5,138
20,910 9.25%, 2/15/16 28,255
--------
37,260
--------
Total Long-Term Investments (Cost $79,501) 82,816
--------
Number
of Shares
(in thousands)
- ---------------
SHORT-TERM INVESTMENTS 4.9%
Investment Companies 2.9%
10 Financial Square Prime Obligation Fund 10
7,078 Short-Term Investments Co.
Liquid Assets Portfolio 7,078
--------
7,088
--------
Principal
Amount
(in thousands)
- ---------------
VARIABLE RATE DEMAND NOTES 2.0%
$5,000 Warner-Lambert Co. 5,000
--------
Total Short-Term Investments (Cost $12,088) 12,088
--------
Total Investments (Cost $188,225) 98.5% 242,558
--------
Other Assets, less Liabilities 1.5% 3,677
--------
TOTAL NET ASSETS 100.0% $246,235
========
<F1> Non-income producing
<F2> Unregistered Security
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
COMMON STOCKS 86.4%
Automotive Supply 0.8%
123,000 Snap-On Tools, Inc. $ 5,204
--------
BANKING 6.3%
202,300 Bank of New York 11,948
100,000 Mellon Bank Corporation 7,200
133,300 Northern Trust Corporation 9,731
292,200 Norwest Corporation 11,597
--------
40,476
--------
BUILDING MATERIALS 0.7%
97,700 Martin Marietta Materials, Inc. 4,586
--------
BUSINESS MACHINES & SOFTWARE 4.1%
209,400 Diebold, Inc. 8,585
159,500 Xerox Corporation 18,103
--------
26,688
--------
BUSINESS SERVICES 1.8%
85,500 Automatic Data Processing, Inc. 5,723
128,400 H & R Block, Inc. 5,778
--------
11,501
--------
CHEMICALS 4.5%
108,900 BetzDearborn, Inc. 5,840
200,200 Ecolab, Inc. 6,344
67,925 Dupont (E.I.) De Nemours & Company 4,946
64,600 Monsanto Company 3,416
95,750 Praxair, Inc. 4,817
87,900 Valspar Corporation 3,505
--------
28,868
--------
COMMUNICATIONS & MEDIA 4.1%
257,450 Interpublic Group of Companies, Inc. 16,445
139,600 New York Times Company - Class A 9,903
--------
26,348
--------
CONSUMER PRODUCTS 3.0%
188,000 Avery Dennison Corporation 9,846
196,050 Newell Company 9,472
--------
19,318
--------
CONSUMER SERVICES 1.2%
181,838 Service Corporation International 7,501
--------
CONTAINERS 0.9%
128,400 Bemis Company, Inc. 5,714
--------
Number Market Value
of Shares (in thousands)
- ----------- ---------------
COSMETICS & SOAP 4.3%
91,900 Avon Products, Inc. $ 7,553
100,600 Estee Lauder Companies - Class A 6,684
23,800 Gillette Company 2,747
130,250 Procter & Gamble Company 10,705
--------
27,689
--------
DRUGS & MEDICAL SUPPLY 13.2%
64,100 American Home Products Corporation 5,969
104,300 Baxter International, Inc. 5,782
106,400 Becton, Dickinson & Company 7,408
97,100 Johnson & Johnson 6,931
282,000 McKesson Corporation 19,934
61,500 Medtronic, Inc. 3,236
120,500 Pfizer, Inc. 13,714
97,900 SmithKline Beecham - PLC ADR 5,831
83,000 Warner-Lambert Company 15,703
--------
84,508
--------
ELECTRIC - UTILITIES 1.0%
240,700 NIPSCO Industries, Inc. 6,454
--------
ELECTRICAL EQUIPMENT 1.3%
75,300 Grainger (W.W.), Inc. 8,203
--------
ELECTRONICS 0.7%
54,200 Hewlett-Packard Company 4,082
--------
FINANCIAL SERVICES 5.5%
192,800 Alliance Capital Management L.P. 5,121
251,475 Equifax 9,729
103,300 Federal National Mortgage Association 6,185
62,200 Household International, Inc. 8,175
92,850 Travelers Group, Inc. 5,681
--------
34,891
--------
INSURANCE 3.5%
107,400 MBIA, Inc. 8,015
317,500 ReliaStar Financial Corporation 14,505
--------
22,520
--------
MULTI-INDUSTRY 5.8%
242,100 Dover Corporation 9,563
72,300 Harsco Corporation 3,326
449,600 Tyco International, Ltd. 24,503
--------
37,392
--------
NATURAL GAS 2.0%
144,800 Enron Corporation 7,122
187,000 The Williams Companies, Inc. 5,914
--------
13,036
--------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
OIL - DOMESTIC 0.9%
118,400 Phillips Petroleum Company $ 5,868
--------
OIL - INTERNATIONAL 1.5%
120,450 Mobil Corporation 9,516
--------
OIL & GAS SERVICES 1.2%
95,000 Schlumberger, Ltd. 7,873
--------
PAPER & FOREST PRODUCTS 0.6%
72,500 Kimberly-Clark Corporation 3,679
--------
PRINTING & PUBLISHING 1.6%
40,400 Houghton Mifflin Company 1,316
113,100 McGraw-Hill, Inc. 8,758
--------
10,074
--------
REAL ESTATE INVESTMENT TRUSTS (REIT'S) 3.4%
6,100 Bay Apartments Communities, Inc. 226
107,600 Boston Properties, Inc. 3,558
219,300 CCA Prison Realty Trust 7,771
147,400 Post Properties, Inc. 6,016
185,000 Security Capital Industrial 4,521
--------
22,092
--------
RETAIL 6.8%
131,900 CVS Corporation 9,728
421,000 Gap, Inc. 21,655
67,775 Hannaford Brothers Company 3,012
239,550 Hasbro, Inc. 8,818
17,700 Walgreen Company 611
--------
43,824
--------
TELECOMMUNICATIONS 0.9%
101,600 GTE Corporation 5,937
--------
TELECOMMUNICATIONS EQUIPMENT 1.9%
162,596 Lucent Technologies, Inc. 12,378
--------
TEXTILES & APPAREL 2.1%
94,200 Liz Claiborne, Inc. 4,633
210,000 Warnaco Group - Class A 8,872
--------
13,505
--------
TRANSPORTATION 0.8%
364,600 Laidlaw, Inc. - Class B 5,082
--------
Total Common Stock (Cost $321,141) 554,807
--------
PREFERRED STOCK 2.9%
Financial Services 0.6%
59,400 PLC Capital Trust II (convertible to
Protective Life Corporation common stock) 3,712
--------
Number Market Value
of Shares (in thousands)
- ----------- ---------------
SOFTWARE 0.7%
45,800 MicroSoft Corporation
(convertible to Microsoft Corp. common stock) $ 4,265
--------
TELECOMMUNICATIONS 1.6%
151,400 Salomon, Inc.
(convertible to Cincinnati Bell,
Inc. common stock) 10,390
--------
Total Preferred Stock (Cost $15,917) 18,367
--------
Number
of Shares
(in thousands)
- --------------
LONG-TERM INVESTMENTS 3.0%
CORPORATE CONVERTIBLE BONDS 3.0%
190 DECS Trust II, 6.875%, 11/15/00 (convertible to
Royal Group Technologies common stock) 5,546
91 Merrill Lynch Strypes, 6.50%, 8/15/98 (convertible
to MGIC Investment Corporation common stock) 9,586
Principal
Amount
(in thousands)
- ---------------
$2,900 Federated Department Stores,
5.00%, 10/01/03 (convertible to Federated
Department Stores, Inc. common stock) 4,339
--------
Total Long-Term Investments (Cost $13,085) 19,471
--------
Number
of Shares
(in thousands)
- ---------------
SHORT-TERM INVESTMENTS 8.2%
INVESTMENT COMPANIES 3.5%
10 Financial Square Prime Obligation Fund 10
22,705 Short-Term Investments Co.
Liquid Assets Portfolio 22,705
--------
22,715
--------
Principal
Amount
(in thousands)
- ---------------
VARIABLE RATE DEMAND NOTES 4.7%
$10,000 American Family Insurance 10,000
20,000 Warner-Lambert Co. 20,000
--------
30,000
--------
Total Short-Term Investments (Cost $52,715) 52,715
--------
Total Investments (Cost $402,858) 100.5% 645,360
--------
Liabilities, less Other Assets (0.5)% (3,476)
--------
TOTAL NET ASSETS 100.0% $641,884
========
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
COMMON STOCKS 94.7%
Aerospace & Aircraft 1.9%
34,100 Allied Signal, Inc. $ 1,494
60,326 Boeing Company 3,020
6,400 General Dynamics Corporation 270
11,834 Lockheed Martin Corporation 1,318
3,800 Northrop Grumman Corporation 402
20,900 Raytheon Company 1,185
12,600 Rockwell International Corporation 705
9,300 Textron, Inc. 728
13,600 United Technologies Corporation 1,339
--------
10,461
--------
AIR TRANSPORTATION 0.5%
5,800 AMR Corporation <F1> 884
4,300 Delta Air Lines, Inc. 500
9,500 FDX Corporation <F1> 646
12,700 Southwest Airlines Company 348
5,300 US Airways Group, Inc. <F1> 377
--------
2,755
--------
APPLIANCES 0.2%
3,300 Armstrong World Industries, Inc. 283
5,300 Black & Decker Corporation 274
6,200 Maytag Corporation 319
3,700 Whirlpool Corporation 266
--------
1,142
--------
AUTOS & TRUCKS 1.9%
10,100 Autozone, Inc. <F1> 305
38,750 Chrysler Corporation 1,557
6,600 Dana Corporation 390
4,500 Eaton Corporation 416
3,700 Echlin, Inc. 175
71,800 Ford Motor Company 3,289
42,400 General Motors Corporation 2,857
11,237 Genuine Parts Company 405
5,600 ITT Industries, Inc. 204
4,240 PACCAR, Inc. 252
3,100 Snap-On Tools, Inc. 131
8,200 TRW, Inc. 433
--------
10,414
--------
BANKING 8.1%
38,569 Banc One Corporation 2,268
8,500 Bank of Boston Corporation 917
22,600 Bank of New York Company, Inc. 1,335
40,324 BankAmerica Corporation 3,428
5,600 Bankers Trust New York Corporation 723
8,700 BB&T Corporation 585
25,210 Chase Manhattan Corporation 3,493
26,700 Citicorp 4,018
9,300 Comerica, Inc. 623
14,850 Fifth Third Bancorp 817
Number Market Value
of Shares (in thousands)
- ----------- ---------------
BANKING 8.1% (CONT.)
16,985 First Chicago Corporation $ 1,577
57,128 First Union Corporation 3,449
15,871 Fleet Financial Group, Inc. 1,371
10,000 Huntington Bancshares Incorporated 356
15,900 Mellon Bank Corporation 1,145
7,600 Mercantile Bancorporation, Inc. 421
10,400 J.P. Morgan & Company, Inc. 1,365
54,906 NationsBank Corporation 4,159
6,200 Northern Trust Corporation 453
44,100 Norwest Corporation 1,750
18,300 PNC Bank Corporation 1,106
3,300 Republic New York Corporation 441
9,800 State Street Corporation 701
11,600 Summit Bancorp. 581
12,300 Sun Trust Banks, Inc. 1,002
11,400 Synovus Financial Corp. 401
14,685 US Bancorp 1,865
12,300 Wachovia Corporation 1,045
15,390 Washington Mutual, Inc. 1,078
5,233 Wells Fargo & Company 1,928
--------
44,401
--------
BIO-TECHNOLOGY 0.2%
15,100 Amgen, Inc. <F1> 900
--------
BUILDING & HOUSING 0.2%
4,600 Fluor Corporation 217
10,200 Masco Corporation 592
4,900 Owens-Corning Fiberglass Corporation 204
6,100 The Stanley Works 312
--------
1,325
--------
BUILDING MATERIALS 0.1%
4,800 Johnson Controls, Inc. 285
--------
BUSINESS MACHINES & SOFTWARE 3.0%
6,500 Apple Computer, Inc. <F1> 178
88,690 COMPAQ Computer Corporation 2,489
9,650 Digital Equipment Corporation <F1> 537
7,700 Honeywell, Inc. 717
57,400 International Business Machines Corporation 6,651
58,912 Oracle Systems Corporation <F1> 1,524
16,900 Pitney-Bowes, Inc. 811
22,600 Sun Microsystems, Inc. <F1> 931
2,700 UNOVA, Inc.* 63
19,050 Xerox Corporation 2,162
--------
16,063
--------
BUSINESS SERVICES 2.1%
3,300 Autodesk, Inc. 155
18,700 Automatic Data Processing, Inc. 1,252
5,700 H & R Block, Inc. 257
4,400 Ceridian Corporation <F1> 249
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
BUSINESS SERVICES 2.1% (CONT.)
59,500 Cisco Systems, Inc. <F1> $ 4,358
32,787 Computer Associates International, Inc. 1,920
8,800 Computer Sciences Corporation <F1> 464
4,700 Deluxe Corporation 157
10,921 Dun & Bradstreet Corporation 388
7,600 Equifax Inc. 294
25,800 First Data Corporation 874
3,600 Moore Corporation Limited 56
2,600 National Service Industries 141
15,100 Service Corporation International 623
15,000 Unisys Corporation<F1> 337
--------
11,525
CHEMICALS 2.4%
6,400 Air Products and Chemicals, Inc. 556
13,200 Dow Chemical Company 1,276
67,700 Dupont (E.I.) De Nemours & Company 4,929
6,600 Ecolab, Inc. 209
4,300 W.R. Grace & Company 87
3,100 Great Lakes Chemical Corporation 156
5,300 Hercules, Inc. 253
1,800 Millipore Corporation 62
34,600 Monsanto Company 1,829
6,900 Morton International, Inc. 221
2,500 Nalco Chemical Company 99
10,600 PPG Industries, Inc. 749
10,400 Praxair, Inc. 523
3,300 Rohm & Haas Company 356
8,500 Rubbermaid, Inc. 243
10,100 Sherwin-Williams Company 360
6,300 Sigma-Aldrich Corporation 251
6,450 Union Carbide Corporation 313
24,600 The Williams Companies, Inc. 778
--------
13,250
--------
COMMUNICATIONS & MEDIA 2.0%
4,350 Andrew Corporation <F1> 100
42,600 CBS Corporation<F1> 1,518
7,400 Clear Channel Communications, Inc. <F1> 697
20,400 Comcast Corporation - Class A 731
6,500 Dow Jones & Company, Inc. 316
17,000 Gannett Company, Inc. 1,155
3,400 Harcourt General, Inc. 177
7,150 Interpublic Group of Companies, Inc. 457
5,000 Knight-Ridder, Inc. 292
5,400 New York Times Company - Class A 383
9,000 Omnicom Group, Inc. 426
28,600 Tele-Communications, Inc. - Class A <F1> 922
34,600 Time Warner, Inc. 2,716
6,023 Times Mirror Company - Class A 369
6,900 Tribune Company 455
--------
10,714
--------
Number Market Value
of Shares (in thousands)
- ----------- ---------------
COMPUTERS 1.0%
39,100 Dell Computer Corporation <F1> $ 3,157
29,700 EMC Corporation <F1> 1,370
8,500 Gateway 2000, Inc.<F1> 499
13,900 Seagate Technology, Inc. <F1> 371
9,400 Silicon Graphics, Inc. <F1> 123
--------
5,520
--------
CONSUMER DURABLES 0.3%
4,637 Eastman Chemical Company 319
19,450 Eastman Kodak Company 1,404
2,128 Polaroid Corporation 94
--------
1,817
--------
CONSUMER PRODUCTS 0.2%
5,600 Avery Dennison Corporation 293
9,821 Cognizant Corporation 505
9,000 Newell Company 435
3,200 Tupperware Corporation 87
--------
1,320
--------
CONTAINERS 0.3%
2,100 Bemis Company, Inc. 93
6,900 Crown Cork & Seal Company, Inc. 359
8,900 Owens-Illinois, Inc. <F1> 352
9,604 Sealed Air Corporation<F1> 602
--------
1,406
--------
COSMETICS & SOAP 2.5%
7,900 Avon Products, Inc. 649
6,100 Clorox Company 512
17,700 Colgate-Palmolive Company 1,587
33,544 Gillette Company 3,872
5,800 International Flavors & Fragrances, Inc. 284
80,400 Procter & Gamble Company 6,608
--------
13,512
--------
DISTRIBUTION 0.0%
9,358 Ikon Office Solutions, Inc. 226
--------
DIVERSIFIED 0.5%
38,300 Unilever N.V. 2,858
--------
DRUGS 9.3%
45,800 Abbott Laboratories 3,349
4,800 Allergan, Inc. 200
3,900 Alza Corporation <F1> 187
38,900 American Home Products Corporation 3,623
3,100 Bard (C.R.), Inc. 111
16,300 Baxter International, Inc. 904
7,200 Becton, Dickinson & Company 501
58,520 Bristol-Meyers Squibb Company 6,196
6,400 Cardinal Health, Inc. 616
9,500 Humana, Inc. <F1> 257
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
DRUGS 9.3% (CONT.)
80,500 Johnson & Johnson $ 5,746
66,400 Eli Lilly & Company 4,619
28,000 Medtronic, Inc. 1,474
70,800 Merck & Company, Inc. 8,531
76,500 Pfizer, Inc. 8,707
29,555 Pharmacia & Upjohn, Inc. 1,243
43,800 Schering-Plough 3,509
5,400 St. Jude Medical, Inc. <F1> 191
17,500 Tenet Healthcare Corporation <F1> 655
--------
50,619
--------
ELECTRIC 0.8%
7,700 Ameren Corporation 305
8,032 CINenergy Corporation 280
13,300 Consolidated Edison Company of New York, Inc. 602
21,128 Duke Power Company 1,223
21,400 Edison International 638
7,600 General Public Utilities Corporation 301
17,300 PacifiCorp 402
13,900 Texas Utilities Company 556
--------
4,307
--------
ELECTRICAL EQUIPMENT 3.5%
11,900 AMP, Inc. 468
26,600 Emerson Electric Company 1,692
195,900 General Electric Company 16,676
2,800 Grainger (W.W.), Inc. 305
--------
19,141
--------
ELECTRONICS 3.5%
3,400 General Signal Corporation 150
4,200 Harris Corporation 203
62,300 Hewlett-Packard Company 4,692
98,000 Intel Corporation 7,920
34,900 Motorola, Inc. 1,941
8,500 National Semiconductor Corporation <F1> 187
30,700 Northern Telecom Ltd. 1,869
2,100 Perkin-Elmer Corporation 144
3,450 Tektronix, Inc. 148
23,400 Texas Intruments, Inc. 1,499
2,500 Thomas & Betts Corporation 146
3,700 Western Atlas, Inc. <F1> 292
--------
19,191
--------
ENERGY 1.7%
10,900 American Electric Power Company 520
10,250 Baltimore Gas & Electric Company 323
9,900 Carolina Power & Light Company 426
14,100 Central & South West Corporation 367
6,725 Coastal Corporation 480
4,800 Consolidated Natural Gas Company 276
12,400 Dominion Resources, Inc. 491
7,800 DTE Energy Company 306
FIRSTAR FUNDS
(LOGO)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
ENERGY 1.7% (CONT.)
14,900 Entergy Corporation $ 371
13,000 FirstEnergy Corp. 393
10,600 FPL Group, Inc. 658
18,572 Houston Industries, Inc. 540
11,600 Niagara Mohawk Power Corporation <F1> 142
3,300 NICOR, Inc. 135
4,500 Northern States Power Company 254
4,600 Pacific Enterprises, Inc. 179
24,700 Pacific Gas & Electric Company 800
15,400 Peco Energy Company 367
12,500 Public Service Enterprises Group, Inc. 420
6,400 Sonat, Inc. 284
41,400 Southern Company 1,097
12,300 Unicom Corporation 427
--------
9,256
--------
ENERGY - RAW MATERIALS 0.4%
10,000 Baker Hughes, Inc. 405
10,200 Dresser Industries, Inc. 539
14,800 Halliburton Company 814
19,100 Occidental Petroleum Corporation 562
--------
2,320
--------
ENTERTAINMENT & LEISURE 1.0%
4,500 Brunswick Corporation 146
7,125 Hasbro, Inc. 262
16,387 Mattel, Inc. 628
41,200 McDonald's Corporation 2,549
10,200 Mirage Resorts, Incorporated <F1> 225
6,062 Starwood Hotels & Resorts 304
20,685 Viacom, Inc. - Class B <F1> 1,200
8,050 Wendy's International, Inc. 194
--------
5,508
--------
ENVIRONMENTAL SERVICES 0.1%
22,100 Laidlaw, Inc. - Class B 308
--------
FINANCE 2.3%
27,800 American Express Company 2,836
3,100 Beneficial Corporation 404
6,400 H.F. Ahmanson & Company 488
6,000 Household International, Inc. 789
6,100 Lehman Brothers Holdings, Inc. 433
20,000 Merrill Lynch & Company, Inc. 1,755
19,700 National City Corporation 1,364
68,618 Travelers Group, Inc. 4,199
--------
12,268
--------
FINANCIAL SERVICES 2.3%
20,745 Associates First Capital Corporation - Class A 1,551
10,400 Conseco, Inc. 516
5,600 Countrywide Credit Industries, Inc. 271
63,500 Federal National Mortgage Association 3,802
See notes to the financial statements.
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
FINANCIAL SERVICES 2.3% (CONT.)
15,000 Franklin Resources, Inc. $ 803
8,200 Green Tree Financial Corporation 334
5,400 MBIA, Inc. 403
28,475 MBNA Corporation 965
35,466 Morgan Stanley Group, Inc. 2,797
11,300 SunAmerica, Inc. 564
17,400 The Charles Schwab Corporation 609
--------
12,615
--------
FOOD, BEVERAGES & TOBACCO 6.2%
570 Agribrands International, Inc.<F1> 22
34,294 Archer-Daniels-Midland Company 737
16,200 Bestfoods 889
27,300 Campbell Soup Company 1,401
148,100 Coca-Cola Company 11,237
28,450 ConAgra, Inc. 830
2,025 CPC International, Inc. 72
9,800 Dardeen Restaurants, Inc. 157
10,000 Fortune Brands, Inc. 369
9,500 General Mills, Inc. 642
21,900 Heinz (H.J.) Company 1,194
8,300 Hershey Foods Corporation 608
24,000 Kellogg Company 990
9,900 Lowe's Companies, Inc 692
90,900 PepsiCo, Inc. 3,608
145,200 Philip Morris Companies, Inc. 5,418
10,200 Pioneer Hi-Bred International, Inc. 385
7,800 Quaker Oats Company 406
6,400 Ralston-Ralston Purina Group 678
28,300 Sara Lee Corporation 1,686
18,600 Sysco Corporation 443
9,320 Tricon Global Restaurants, Inc. <F1> 296
10,900 UST, Inc. 300
6,800 Wrigley (Wm) Jr. Company 605
--------
33,665
--------
GOLD & PRECIOUS METALS 0.2%
21,200 Barrick Gold Corporation 476
13,600 Battle Mountain Gold Company 98
3,500 Cyprus Amax Minerals Company 60
9,600 Freeport McMoRan Copper & Gold, Inc. 181
6,100 Homestake Mining Company 71
11,361 Placer Dome, Inc. 168
--------
1,054
--------
HEALTH CARE SERVICES & SUPPLIES 1.4%
2,900 Bausch & Lomb, Inc. 143
11,500 Boston Scientific Corporation <F1> 832
37,828 Columbia/HCA Healthcare Corporation 1,246
12,300 HBO & Company 736
22,900 HEALTHSOUTH Corporation <F1> 691
3,400 Manor Care, Inc. 119
10,600 United Healthcare Corporation 745
FIRSTAR FUNDS
(LOGO)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
HEALTH CARE SERVICES & SUPPLIES 1.4% (CONT.)
16,300 Warner-Lambert Company $ 3,084
--------
7,596
--------
HOSPITAL SUPPLIES & SERVICES 0.1%
6,500 Biomet, Inc. 195
2,900 US Surgical Corporation 91
--------
286
--------
HOUSEHOLD PRODUCTS 0.1%
11,900 Federated Department Stores <F1> 585
--------
INSURANCE 3.8%
8,394 Aetna Life and Casualty Company 678
25,073 Allstate Corporation 2,413
15,200 American General Corporation 1,013
42,032 American International Group, Inc. 5,530
9,500 Aon Corporation 613
9,600 Chubb Corporation 758
4,200 CIGNA Corporation 869
3,000 Cincinnati Financial Corporation 382
4,500 General Re Corporation 1,006
6,900 The Hartford Financial Services Group, Inc. 764
6,225 Jefferson-Pilot Corporation 365
26,304 KeyCorp 1,044
6,100 Lincoln National Corporation 542
10,640 Marsh & McLennan Companies, Inc. 970
6,400 MGIC Investment Corporation 403
4,100 Progressive Corporation 555
6,400 Providian Corporation 385
9,400 SAFECO Corporation 469
6,467 St Paul Companies, Inc. 548
7,900 Torchmark Corporation 352
3,700 Transamerica Corporation 427
8,000 UNUM Corporation 430
--------
20,516
--------
LIQUOR 0.4%
29,300 Anheuser-Busch Companies, Inc. 1,342
3,400 Brown-Foreman Corporation - Class B 193
19,900 Seagram Company Ltd. 849
--------
2,384
--------
MACHINERY - AGRICULTURE & AUTOMOTIVE 0.0%
3,700 Case Equipment 235
--------
MACHINERY - INDUSTRIAL 0.1%
3,400 Harnischfeger Industries, Inc. 96
9,500 Thermo Electron Corporation <F1> 378
--------
474
--------
MEDICAL INSTRUMENTS 0.1%
8,400 Guidant Corporation 562
See notes to the financial statements.
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
METALS & MINERALS 0.3%
12,160 Allegheny Teledyne, Inc. $ 309
6,200 Nucor Corporation 372
17,266 USX Corporation-Marathon Group, Inc. 618
4,793 USX Corporation-US Steel Group, Inc. 188
5,125 Worthington Industries, Inc. 92
--------
1,579
--------
MISCELLANEOUS 0.8%
21,300 Applied Materials, Inc. <F1> 769
4,100 Mallinckrodt Group, Inc. 132
10,400 PP&L Resources, Inc. 240
22,700 3 Com Corporation <F1> 778
23,900 3M Corporation 2,256
--------
4,175
--------
MULTI-INDUSTRY 0.8%
46,241 Cendant Corporation<F1> 1,156
13,900 Corning, Inc. 556
6,500 Loews Corporation 650
9,624 Tenneco, Inc. 414
34,300 Tyco International, Ltd. 1,869
--------
4,645
--------
NATURAL GAS 0.2%
18,000 Enron Corporation 885
--------
NON-FERROUS METALS 0.4%
13,250 Alcan Aluminum Ltd. 431
9,600 Aluminum Company of America 744
1,200 ASARCO, Inc. 30
6,300 Englehard Corporation 133
8,100 Inco, Ltd. 142
9,436 Newmont Mining Corporation 304
3,300 Phelps Dodge Corporation 222
5,200 Reynolds Metals Company 343
--------
2,349
--------
OFFICE EQUIPMENT 0.0%
16,700 Novell, Inc. <F1> 167
--------
OIL - DOMESTIC 1.4%
4,700 Amerada Hess Corporation 270
58,200 Amoco Corporation 2,575
3,200 Anadarko Petroleum Corporation 234
3,800 Ashland, Inc. 201
19,200 Atlantic Richfield Company 1,498
11,892 Burlington Resources, Inc. 559
2,700 Columbia Gas System, Inc. 219
3,400 Kerr-McGee Corporation 224
4,900 Oryx Energy Company <F1> 128
2,400 Pennzoil Company 154
15,800 Phillips Petroleum Company 783
FIRSTAR FUNDS
(LOGO)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
OIL - DOMESTIC 1.4% (CONT.)
4,400 Rowan Companies, Inc. <F1> $ 130
3,800 Sun Company, Inc. 154
15,500 Unocal Corporation 635
--------
7,764
--------
OIL - INTERNATIONAL 5.0%
7,400 Apache Corporation 262
39,300 Chevron Corporation 3,250
145,500 Exxon Corporation 10,612
46,900 Mobil Corporation 3,705
128,400 Royal Dutch Petroleum Company 7,263
32,000 Texaco, Inc. 1,968
--------
27,060
--------
OIL & GAS SERVICES 0.5%
29,800 Schlumberger, Ltd. 2,470
12,938 Union Pacific Resources Group 309
--------
2,779
--------
PAPER & FOREST PRODUCTS 1.1%
2,500 Boise Cascade Corporation 94
5,500 Champion International Corporation 296
11,700 Fort James Corporation 581
5,600 Georgia-Pacific Corporation 432
17,700 International Paper Company 924
32,512 Kimberly-Clark Corporation 1,650
4,972 Louisiana Pacific Corporation 109
6,200 Mead Corporation 215
3,250 Temple-Inland, Inc. 210
4,050 Union Camp Corporation 245
6,825 Westvaco Corporation 207
12,650 Weyerhaeuser Company 729
5,800 Willamette Industries 225
--------
5,917
--------
POLLUTION CONTROL 0.2%
11,200 Browning-Ferris Industries, Inc. 382
26,400 Waste Management, Inc. 884
--------
1,266
--------
PRINTING & PUBLISHING 0.2%
6,300 McGraw-Hill, Inc. 488
9,300 R.R. Donnelley & Sons Company 410
--------
898
--------
PRODUCTION 1.0%
1,200 Briggs & Stratton Corporation 54
22,100 Caterpillar, Inc. 1,258
7,800 Cooper Industries, Inc. 522
14,400 Deere & Company 842
12,000 Dover Corporation 474
1,900 FMC Corporation <F1> 147
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
PRODUCTION 1.0% (CONT.)
1,600 Foster Wheeler Corporation $ 44
2,650 Hussmann International, Inc. 46
14,100 Illinois Tool Works, Inc. 994
10,100 Ingersoll-Rand Company 465
6,366 Pall Corporation 125
6,525 Parker-Hannifin Corporation 291
4,700 Raychem Corporation 189
4,900 Timken Company 196
--------
5,647
--------
RAILROADS 0.6%
8,781 Burlington Northern Santa Fe 869
13,620 CSX Corporation 715
21,300 Norfolk Southern Corporation 712
14,700 Union Pacific Corporation 805
--------
3,101
--------
RETAIL 4.4%
14,300 Albertson's, Inc. 715
4,400 American Greetings Corporation 204
15,600 American Stores Company 374
6,800 Circuit City Stores, Inc. 276
6,000 Consolidated Stores Corporation<F1> 240
12,421 Costco Companies, Inc.<F1> 694
13,100 Dayton Hudson Corporation 1,144
5,500 Dillard Department Stores, Inc. - Class A 202
23,700 Gap, Inc. 1,219
2,500 Giant Food, Inc. 93
43,750 Home Depot, Inc. 3,046
28,500 Kmart Corporation <F1> 497
14,300 Kroger Corporation <F1> 599
15,911 The Limited, Inc. 534
13,476 The May Department Stores Company <F1> 831
3,100 Mercantile Stores Company, Inc. 226
4,200 Nordstrom, Inc. 275
14,600 J.C. Penney Company, Inc. 1,038
3,300 Pep Boys _ Manny, Moe & Jack 72
14,200 Rite Aid Corporation 456
23,800 Sears Roebuck and Company 1,412
3,500 Supervalu, Inc. 153
5,700 Tandy Corporation 284
8,700 TJX Companies, Inc. 385
15,625 Toys 'R' Us, Inc. <F1> 431
30,300 Walgreen Company 1,045
134,500 Wal-Mart Stores, Inc. 6,801
9,500 Winn-Dixie Stores, Inc. 357
6,600 Woolworth Corporation <F1> 152
--------
23,755
--------
SAVINGS & LOAN 0.4%
40,600 Federal Home Loan Mortgage Corporation 1,880
3,400 Golden West Financial Corporation 358
--------
2,238
--------
Number Market Value
of Shares (in thousands)
- ----------- ---------------
SEMICONDUCTORS 0.2%
7,500 Advanced Micro Devices, Inc. <F1> $ 208
4,500 KLA-Tencor Corporation <F1> 181
7,100 LSI Logic Corp <F1> 193
13,500 Micron Technology Incorporated 419
--------
1,001
--------
SOFTWARE 2.6%
3,300 Adobe Systems Incorporated 165
15,300 Bay Networks <F1> 359
144,700 Microsoft Corporation <F1> 13,041
16,200 Parametric Technology Company <F1> 518
--------
14,083
--------
TELECOMMUNICATIONS 7.9%
33,800 Airtouch Communications, Inc. <F1> 1,796
10,400 Alltell Corporation 445
65,500 Ameritech Corporation 2,788
95,656 AT&T Corporation 5,745
45,404 Bell Atlantic Corporation 4,248
59,300 BellSouth Corp. 3,806
7,300 Cabletron Systems <F1> 97
5,800 DSC Communications Corporation <F1> 104
9,300 Frontier Corporation 278
57,300 GTE Corporation 3,348
77,892 Lucent Technologies, Inc. 5,930
40,700 MCI Communications Corporation 2,048
16,200 Nextel Communications, Inc.<F1> 465
107,288 SBC Communications, Inc. 4,446
25,100 Sprint Corporation 1,715
28,953 US West, Inc. 1,527
36,353 US West Media Group, Inc. <F1> 1,372
60,600 WorldCom, Inc. <F1> 2,593
--------
42,751
--------
TELECOMMUNICATIONS EQUIPMENT 0.2%
8,400 General Instrument Corporation<F1> 188
10,000 Tellabs, Inc. <F1> 709
--------
897
--------
TEXTILES & APPAREL 0.4%
11,400 CVS Corporation 841
4,100 Fruit of The Loom, Inc. <F1> 153
3,600 Liz Claiborne, Inc. 177
17,300 Nike, Inc. - Class B 826
2,600 Reebok International Ltd. 76
2,000 Russell Corporation 54
6,554 VF Corporation 341
--------
2,468
--------
See notes to the financial statements.
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
TIRE & RUBBER 0.2%
4,800 Cooper Tire & Rubber Company $ 115
4,100 Goodrich (B.F.) Company 221
8,762 Goodyear Tire & Rubber Company 613
--------
949
--------
TRANSPORTATION EQUIPMENT 0.0%
1,700 Cummins Engine Company, Inc. 92
--------
TRAVEL & RECREATION 1.2%
40,400 The Walt Disney Company 5,022
4,950 Harrahs Entertainment, Inc. <F1> 129
14,700 Hilton Hotels Corporation 469
15,300 Marriott International, Inc. 505
7,500 Marriott International, Inc. - Class A 240
1,875 Sodexho Marriot Services, Inc. 48
--------
6,413
--------
TRUCKING 0.0%
3,550 Ryder System, Inc. 124
--------
Total Common Stock (Cost $279,045) 515,787
--------
Principal
Amount Market Value
(in thousands) (in thousands)
- --------------- --------------
SHORT-TERM INVESTMENTS 5.1%
U.S. TREASURIES 0.3%
$ 1,600 U.S. Treasury Bill, 4.91%, 8/20/98 $ 1,576
--------
Total U.S. Treasuries (Cost $1,575) 1,576
--------
VARIABLE RATE DEMAND NOTES 4.8%
11,891 American Family Financial Services, Inc. 11,891
14,161 Warner-Lambert Co. 14,161
--------
Total Variable Rate Demand Notes (Cost $26,052) 26,052
--------
Total Short-Term Investments (Cost $27,627) 27,628
--------
Total Investments (Cost $306,672) 99.8% 543,415
--------
Other Assets, less Liabilities 0.2% 1,111
--------
TOTAL NET ASSETS 100.0% $544,526
========
<F1>Non-income producing
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
COMMON STOCKS 92.0%
AEROSPACE & AIRCRAFT 2.0%
109,000 Gulfstream Aerospace Corporation <F1> $ 4,571
--------
AIR TRANSPORTATION 1.4%
48,000 FDX Corporation <F1> 3,264
--------
BANKING 4.2%
17,005 Charter One Financial, Inc. 1,151
43,000 First Union Corporation 2,596
32,200 State Street Corporation 2,302
50,100 Washington Mutual, Inc. 3,510
--------
9,559
--------
BUILDING MATERIALS 0.8%
62,300 Royal Group Technologies Ltd. <F1> 1,935
--------
BUSINESS MACHINES & SOFTWARE 2.8%
7,900 Computer Associates International, Inc. 463
25,700 Microsoft Corporation <F1> 2,316
42,800 Parametric Technology Company<F1> 1,368
51,300 Sterling Commerce, Inc. <F1> 2,183
--------
6,330
--------
BUSINESS SERVICES 9.9%
72,000 Cintas Corporation 3,429
71,500 Cognizant Corporation 3,678
23,600 First Data Corporation 799
12,000 Manpower, Inc. 529
149,900 Pittston Brink's Group 5,865
17,100 Sabre Group Holdings, Inc. <F1> 622
221,200 SunGard Data Systems, Inc. <F1> 7,880
--------
22,802
--------
CHEMICALS 2.4%
33,500 Du pont (E.I.) De Nemours and Company 2,439
75,500 Sigma-Aldrich Corporation 3,011
--------
5,450
--------
COMMUNICATIONS & MEDIA 3.3%
86,600 Interpublic Group of Companies, Inc. 5,532
42,400 Omnicom Group, Inc. 2,009
--------
7,541
--------
COMPUTERS 0.7%
11,700 Compaq Computers Corporation 328
16,000 Dell Computer Corporation <F1> 1,292
--------
1,620
--------
CONSUMER PRODUCTS 1.2%
56,400 Newell Company 2,725
--------
Number Market Value
of Shares (in thousands
- ----------- ---------------
DRUGS 6.2%
32,300 Elan Corporation, PLC ADR <F1> $ 2,007
33,500 Merck & Co., Inc. 4,037
33,000 Warner-Lambert Company 6,243
46,700 Watson Pharmaceuticals, Inc.<F1> 2,008
--------
14,295
--------
ELECTRONICS & SCIENTIFIC INSTRUMENTS 3.4%
56,400 Cisco Systems, Inc. <F1> 4,131
24,000 Hewlett-Packard Company 1,807
52,470 Molex, Inc. - Class A 1,410
14,750 Thermo Instrument Systems Inc. <F1> 435
--------
7,783
--------
ENTERTAINMENT & LEISURE 0.3%
17,700 Hasbro, Inc. 651
--------
FINANCIAL SERVICES 7.5%
29,600 Associates First Capital Corporation 2,213
46,600 Federal National Mortgage Association 2,790
52,700 Franklin Resources, Inc. 2,819
98,850 MBNA Corporation 3,348
8,100 Newcourt Credit Group, Inc. 398
60,700 SunAmerica, Inc. 3,031
41,685 Travelers Group, Inc. 2,551
--------
17,150
--------
HEALTH CARE SERVICES & SUPPLIES 5.5%
28,200 Boston Scientific Corporation <F1> 2,039
14,700 Cardinal Health, Inc. 1,415
81,450 Health Care & Retirement Corporation <F1> 3,319
76,000 Healthsouth Corporation<F1> 2,294
28,300 Lincare Holdings, Inc. <F1> 2,296
22,600 Medtronic, Inc. 1,189
--------
12,552
--------
INSURANCE 5.0%
35,025 AFLAC, Inc. 2,277
75,800 MBIA, Inc. 5,656
55,900 MGIC Investment Corporation 3,526
--------
11,459
--------
LODGING 1.2%
62,160 Promus Hotel Corporation <F1> 2,809
--------
MULTI-INDUSTRY 6.6%
42,500 Leggett & Platt, Inc. 2,207
62,200 Thermo Electron Corporation <F1> 2,476
194,600 Tyco International, Ltd. 10,606
--------
15,289
--------
NATURAL GAS 1.3%
61,600 Enron Corporation 3,030
--------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
GROWTH FUND
SCHEDULE OF INVESTMENTS
April 30, 1998
(Unaudited)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
OIL & GAS SERVICES 2.1%
26,600 Halliburton Company $ 1,463
40,900 Schlumberger, Ltd. 3,390
--------
4,853
--------
POLLUTION CONTROL 1.0%
47,300 USA Waste Services, Inc. <F1> 2,321
--------
RETAIL 6.7%
12,500 Bed Bath & Beyond, Inc. <F1> 616
70,400 Costco Companies, Inc. <F1> 3,934
61,800 Federated Department Stores, Inc. <F1> 3,040
199,200 Food Lion, Inc. - Class A 2,017
21,700 Home Depot, Inc. 1,511
70,200 Safeway, Inc. <F1> 2,685
69,300 Staples, Inc.<F1> 1,711
--------
15,514
--------
SEMICONDUCTORS 1.0%
29,600 Intel Corporation 2,392
--------
TELECOMMUNICATIONS 4.6%
152,100 Cincinnati Bell, Inc. 5,818
94,700 MCI Communications Corporation 4,765
--------
10,583
--------
TELECOMMUNICATIONS EQUIPMENT 3.1%
60,800 Lucent Technologies, Inc. 4,628
35,100 Tellabs, Inc. <F1> 2,488
--------
7,116
--------
TEXTILES & APPAREL 1.8%
40,900 Liz Claiborne, Inc. 2,012
79,500 Polo Ralph Lauren Corporation <F1> 2,236
--------
4,248
--------
TRANSPORTATION 2.4%
153,800 Harley-Davidson, Inc. 5,537
--------
TRAVEL & RECREATION 3.6%
71,100 Carnival Corporation - Class A 4,946
26,700 The Walt Disney Company 3,319
--------
8,265
--------
Total Common Stock (Cost $127,532) 211,644
--------
Number
of Shares Market Value
(in thousands) (in thousands)
- -------------- ---------------
SHORT-TERM INVESTMENTS 6.0%
Investment Companies 1.6%
10 Financial Square Prime Obligation Fund $ 10
3,691 Short-Term Investments Co.
Liquid Assets Portfolio 3,691
--------
Total Investment Companies (Cost $3,701) 3,701
--------
Principal
Amount
(in thousands)
- ---------------
VARIABLE RATE DEMAND NOTES 4.4%
$10,000 Warner-Lambert Co. 10,000
--------
Total Variable Rate Demand Notes (Cost $10,000) 10,000
--------
Total Short-Term Investments (Cost $13,701) 13,701
--------
Total Investments (Cost $141,233) 98.0% 225,345
--------
Other Assets, less Liabilities 2.0% 4,669
--------
TOTAL NET ASSETS 100.0% $230,014
========
<F1> Non-income producing
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
SPECIAL GROWTH FUND
SCHEDULE OF INVESTMENTS
April 30, 1998
(Unaudited)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
COMMON STOCKS 97.3%
AUTO & TRUCK 0.1%
29,200 Applied Power, Inc. - Class A $ 1,091
--------
BUSINESS MACHINES & SOFTWARE 4.9%
333,900 Network Associates, Inc.<F1> 22,872
343,100 Synopsys, Inc.<F1> 14,753
--------
37,625
--------
BUSINESS SERVICES 11.7%
279,900 AccuStaff, Inc. <F1> 10,041
374,500 Ciber, Inc. <F1> 12,173
564,200 Concord EFS, Inc. <F1> 17,772
98,600 CSG Systems International, Inc.<F1> 4,486
375,700 FIserv, Inc. <F1> 24,561
69,800 Gartner Group, Inc. - Class A<F1> 2,312
333,650 Robert Half International, Inc. <F1> 18,059
--------
89,404
--------
COMPUTERS 3.8%
579,000 Tech Data Corporation <F1> 28,878
--------
FINANCIAL SERVICES 7.9%
805,500 E*TRADE Group, Inc.<F1> 20,087
48,500 Heller Financial, Inc.<F1> 1,310
144,500 Kansas City Southern Industries, Inc. 6,530
3,100 Peoples Heritage Financial Group, Inc. 150
70,400 T. Rowe Price Associates, Inc. 5,315
784,700 The Charles Schwab Corporation 27,464
--------
60,856
--------
HEALTH CARE SERVICES & SUPPLIES 14.2%
42,400 First Health Group Corporation<F1> 2,502
1,005,893 Health Management Associates, Inc. - Class A<F1> 31,686
62,700 Henry Schein, Inc.<F1> 2,445
242,775 Lincare Holdings, Inc. <F1> 19,695
627,775 PhyCor, Inc. <F1> 14,282
413,000 Shared Medical Systems Corporation 30,123
142,600 Universal Health Services, Inc. - Class B<F1> 8,208
--------
108,941
--------
HOSPITAL SUPPLIES & SERVICES 0.3%
79,300 Omnicare, Inc. 2,716
--------
HOUSING 2.2%
598,900 Toll Brothers, Inc. <F1> 16,694
--------
INSURANCE 16.3%
587,300 AMBAC, Inc. 33,293
342,200 MGIC Investment Corporation 21,559
986,950 Protective Life Corporation 36,641
482,800 ReliaStar Financial Corporation 22,028
204,425 Vesta Insurance Group, Inc. 11,576
--------
125,097
--------
FIRSTAR FUNDS
(LOGO)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
MEDICAL INSTRUMENTS 0.9%
75,300 Sofamor Danek Group, Inc. <F1> $ 6,608
--------
OIL & GAS - DOMESTIC 0.7%
152,000 Barrett Resources Corporation<F1> 5,643
--------
RESTAURANTS 0.1%
19,300 Papa John's International, Inc.<F1> 806
--------
RETAIL 11.4%
394,400 Bed Bath and Beyond, Inc. <F1> 19,424
715,197 Dollar General Corporation 27,088
9,700 Fastenal Company 543
419,100 General Nutrition Companies, Inc. <F1> 15,035
76,100 MSC Industrial Direct Co., Inc. - Class A <F1> 3,872
229,600 Office Depot, Inc.<F1> 7,606
511,400 Pier 1 Imports, Inc. 13,488
--------
87,056
--------
SCHOOLS 0.9%
201,450 Apollo Group, Inc. <F1> 6,900
--------
SECURITY SERVICES 1.5%
427,600 Corrections Corporation of America <F1> 11,866
--------
SEMICONDUCTORS 3.5%
664,600 Maxim Integrated Products <F1> 26,833
--------
SOFTWARE 6.5%
719,600 Cadence Design Systems, Inc. <F1> 26,130
354,300 Cambridge Technologies Partners, Inc. <F1> 18,512
105,600 Electronic Arts, Inc.<F1> 4,884
--------
49,526
--------
TELECOMMUNICATIONS EQUIPMENT 3.8%
223,300 Advanced Fibre Communications, Inc.<F1> 9,462
355,200 CIENA Corporation <F1> 19,802
--------
29,264
--------
TEXTILES & APPAREL 5.1%
456,300 Jones Apparel Group, Inc. <F1> 27,292
184,400 Ross Stores, Inc. 8,524
106,400 Wolverine World Wide, Inc. 3,072
--------
38,888
--------
WASTE MANAGEMENT 1.5%
470,475 Newpark Resources, Inc.<F1> 11,321
--------
Total Common Stock (Cost $482,595) 746,013
--------
See notes to the financial statements.
SPECIAL GROWTH FUND
SCHEDULE OF INVESTMENTS
April 30, 1998
(Unaudited)
Number
of Shares Market Value
(in thousands) (in thousands)
- -------------- ---------------
SHORT-TERM INVESTMENTS 2.6%
Investment Companies 2.6%
10 Financial Square Prime Obligation Fund $ 10
19,980 Short-Term Investments Co.
Liquid Assets Portfolio 19,980
--------
Total Investment Companies (Cost $19,990) 19,990
--------
Total Short-Term Investments (Cost $19,990) 19,990
--------
Total Investments (Cost $502,585) 99.9% 766,003
--------
Other Assets, less Liabilities 0.1% 828
--------
TOTAL NET ASSETS 100.0% $766,831
========
<F1> Non-income producing
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
Emerging Growth FUND
SCHEDULE OF INVESTMENTS
April 30, 1998
(Unaudited)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
COMMON STOCKS 90.4%
BUSINESS MACHINES & SOFTWARE 1.7%
4,800 Digi International, Inc.<F1> $ 128
5,200 Harbinger Corporation<F1> 189
30,800 Hypercom Corporation<F1> 400
16,200 National Instruments Corporation <F1> 575
--------
1,292
--------
BUSINESS SERVICES 11.3%
31,200 ABR Information Services, Inc. <F1> 902
13,200 American Business Information, Inc. - Class A <F1> 178
10,800 American Business Information, Inc. - Class B <F1> 154
5,900 Catalina Marketing Corporation<F1> 307
1,300 Central Parking Corporation 61
42,100 F.Y.I. Incorporated <F1> 1,145
35,100 Mastech Corporation <F1> 930
78,500 May & Speh, Inc.<F1> 1,168
36,800 National Data Corporation 1,502
22,900 Nova Corporation<F1> 779
23,700 PMT Services, Inc.<F1> 462
53,800 Sykes Enterprises, Inc.<F1> 1,127
--------
8,715
--------
COMPUTERS 2.2%
10,400 Black Box Corporation<F1> 346
25,500 CDW Computer Centers, Inc. <F1> 1,384
--------
1,730
--------
COMMUNICATIONS & MEDIA 0.8%
19,400 Ha-Lo Industries, Inc.<F1> 651
--------
CONSTRUCTION 1.3%
11,200 D.R. Horton, Inc. 207
25,800 Granite Construction, Inc. 762
3,700 Standard Pacific Corporation 63
--------
1,032
--------
DATA PROCESSING 4.7%
107,400 Acxiom Corporation <F1> 2,604
23,700 CCC Information Services Group Inc. <F1> 569
16,300 National Computer Systems, Inc. 417
--------
3,590
--------
DRUGS 1.2%
23,200 Barr Laboratories, Inc.<F1> 940
--------
ELECTRONICS & EQUIPMENT 0.6%
9,800 Gemstar International Group, Inc. 379
5,100 Plexus Corporation<F1> 112
--------
491
--------
Number Market Value
of Shares (in thousands)
- ----------- ---------------
ENTERTAINMENT & LEISURE 4.2%
113,400 American Skiing Company<F1> $1,758
18,400 Cinar Films, Inc. - Class B <F1> 354
14,500 Imax Corporation<F1> 395
11,800 Scientific Games Holdings Corporation<F1> 263
10,950 Steiner Leisure Ltd.<F1> 346
5,700 Signature Resorts, Inc.<F1> 102
--------
3,218
--------
FINANCIAL SERVICES 3.3%
30,500 ARM Financial Group, Inc. - Class A 654
1,200 BancTec, Inc.<F1> 26
26,700 The BISYS Group, Inc.<F1> 1,055
6,000 Medallion Financial Corp. 179
8,500 SEI Investments Company 628
--------
2,542
--------
HEALTH CARE SERVICES & SUPPLIES 10.5%
26,200 Ballard Medical Products 659
12,200 Cooper Companies, Inc. <F1> 469
102,400 Graham-Field Health Products, Inc.<F1> 678
80,350 Quorum Health Group, Inc. <F1> 2,581
67,400 Rural/Metro Corporation <F1> 2,191
19,825 PSS World Medical, Inc.<F1> 447
31,100 Vencor, Inc.<F1> 843
14,900 Weider Nutrition International, Inc. 211
--------
8,079
--------
INDUSTRIAL DISTRIBUTION 0.5%
2,300 Aviation Sales Company<F1> 82
11,600 Barnett, Inc. <F1> 235
2,000 Hughes Supply, Inc. 77
--------
394
--------
INSURANCE 12.3%
9,300 Annuity and Life Re (Holdings), Ltd.<F1> 222
48,700 Chartwell Re Corporation 1,501
11,100 CMAC Investment Corporation 717
10,014 Delphi Financial Group, Inc. <F1> 571
32,800 Enhance Financial Services Group, Inc. 2,251
16,900 Executive Risk Incorporated 1,127
15,800 Financial Security Assurance Holdings Ltd. 946
27,800 Terra Nova (Bermuda) Holdings Ltd. 849
42,000 United Wisconsin Services 1,305
--------
9,489
--------
MEDICAL INSTRUMENTS 1.2%
28,600 Mentor Corporation 778
7,900 Physio-Control International Corporation 182
--------
960
--------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
Emerging Growth FUND
SCHEDULE OF INVESTMENTS
April 30, 1998
(Unaudited)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
OIL & GAS - DOMESTIC 4.8%
6,600 Cabot Oil & Gas Corporation $ 155
42,800 Denbury Resources, Inc.<F1> 717
81,000 Forest Oil Corporation<F1> 1,266
78,060 Swift Energy Company <F1> 1,556
--------
3,694
--------
OIL & GAS SERVICES 0.2%
7,800 Seitel, Inc. <F1> 132
--------
POLLUTION CONTROL 2.1%
14,300 Philip Services Corp. <F1> 111
62,500 Tetra Technologies, Inc. <F1> 1,496
--------
1,607
--------
REAL ESTATE INVESTMENT TRUSTS (REITS) 1.8%
41,800 Golf Trust of America, Inc. 1,364
--------
RETAIL 13.4%
1,300 Brylane, Inc.<F1> 76
103,600 Eagle Hardware & Garden, Inc. <F1> 1,890
66,500 Goody's Family Clothing, Inc. <F1> 3,292
35,900 The Men's Wearhouse, Inc. <F1> 1,512
66,700 Petco Animal Supplies, Inc. <F1> 1,317
63,500 Stein Mart, Inc. <F1> 2,238
--------
10,325
--------
SCHOOLS 2.1%
37,900 Computer Learning Centers, Inc.<F1> 457
23,700 Sylvan Learning Systems, Inc. <F1> 1,166
--------
1,623
--------
SECURITY SERVICES 0.8%
2,700 The Wackenhut Corporation - Class A 64
20,200 Wackenhut Corrections Corporation<F1> 528
--------
592
--------
SHIPBUILDING 1.1%
32,800 Avondale Industries, Inc.<F1> 882
--------
SOFTWARE 5.5%
56,600 Avant! Corporation<F1> 1,641
6,300 AXENT Technologies, Inc.<F1> 165
12,500 HNC Software, Inc. <F1> 488
12,700 Hyperion Software Corporation<F1> 551
7,300 JDA Software Group, Inc.<F1> 369
43,300 Software AG Systems, Inc.<F1> 1,072
--------
4,286
--------
TELECOMMUNICATIONS EQUIPMENT 2.4%
41,400 ECI Telecommunications Limited 1,264
15,300 World Access, Inc.<F1> 591
--------
1,855
--------
Number Market Value
of Shares (in thousands)
- ----------- ---------------
TEXTILES & APPAREL 0.4%
16,200 Columbia Sportswear Company<F1> $ 344
--------
Total Common Stock (Cost $61,402) 69,827
--------
Principal
Amount
(in thousands)
- --------------
PREFERRED STOCK 1.4%
Communications Companies 1.4%
$ 19 US WEST Communications Group 1,094
--------
Total Preferred Stock (Cost $821) 1,094
--------
Number
of Shares
(in thousands)
- --------------
SHORT-TERM INVESTMENTS 7.9%
INVESTMENT COMPANIES 4.4%
10 Financial Square Prime Obligation Fund 10
3,359 Short-Term Investments Co.
Liquid Assets Portfolio 3,359
--------
Total Investment Companies (Cost $3,369) 3,369
--------
Principal
Amount
(in thousands)
VARIABLE RATE DEMAND NOTES 3.5%
$2,700 Warner-Lambert Co. 2,700
--------
Total Variable Rate Demand Notes (Cost $2,700) 2,700
--------
Total Short-Term Investments (Cost $6,069) 6,069
--------
Total Investments 99.7% (Cost $68,292) 76,990
--------
Other Assets, less Liabilities 0.3% 194
--------
TOTAL NET ASSETS 100.0% $77,184
=======
<F1> Non-income producing
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
Microcap FUND
SCHEDULE OF INVESTMENTS
April 30, 1998
(Unaudited)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
COMMON STOCKS 95.8%
AIR TRANSPORTATION 1.9%
27,300 Atlantic Coast Airlines, Inc. <F1> $ 1,544
73,100 Indigo Aviation AB ADR<F1> 978
--------
2,522
--------
AUTOS & TRUCKS 1.5%
133,700 Group 1 Automotive, Inc. <F1> 2,005
--------
COMMERCIAL SERVICES 4.5%
79,700 Advanced Health Corporation <F1> 1,136
45,600 Kroll-O'Gara Company<F1> 939
278,400 ProSoft Development, Inc. <F1> 2,158
78,500 SteriGenics International, Inc.<F1> 1,815
--------
6,048
--------
COMPUTER HARDWARE 2.6%
44,200 RadiSys Corporation <F1> 1,204
77,900 SBS Technologies, Inc. <F1> 2,327
--------
3,531
--------
COMPUTER SOFTWARE & SERVICES 11.7%
29,200 Brightstar Information Technologies Group, Inc.<F1> 456
7,400 Brio Technology, Inc.<F1> 81
18,300 Command Systems, Inc.<F1> 127
54,200 Computer Management Sciences, Inc.<F1> 1,396
110,300 Condor Technology Solutions, Inc.<F1> 1,923
80,300 Cotelligent Group, Inc.<F1> 2,073
67,100 Diamond Technologies Partners, Inc.<F1> 1,879
53,000 Fundtech Ltd.<F1> 1,120
70,100 ISS Group, Inc.<F1> 3,102
77,800 Phoenix International Ltd., Inc. <F1> 2,295
67,900 Tier Technologies, Inc. - Class B<F1> 1,366
--------
15,818
--------
COSMETICS & SOAP 3.7%
242,900 Advanced Polymer Systems, Inc. <F1> 1,974
182,700 French Fragrances, Inc. <F1> 3,106
--------
5,080
--------
DATA PROCESSING 1.4%
65,100 Data Processing Resources Corporation<F1> 1,822
--------
DISTRIBUTION 6.7%
36,800 1-800 Contacts, Inc.<F1> 685
284,100 Elcom International, Inc. <F1> 1,634
49,900 Insight Enterprises, Inc.<F1> 1,990
124,200 Pomeroy Computer Resources, Inc. <F1> 3,159
79,100 U.S.A. Floral Products, Inc. <F1> 1,641
--------
9,109
--------
Number Market Value
of Shares (in thousands)
- ----------- ---------------
ELECTRONICS 1.6%
53,300 ARM Holdings PLC ADR<F1> $ 2,152
--------
ENTERTAINMENT & LEISURE 1.9%
36,500 Cavanaughs Hospitality Corporation<F1> 573
109,600 Championship Auto Racing Teams, Inc.<F1> 2,069
--------
2,642
--------
ENVIRONMENTAL MONITORING 0.3%
12,400 North American Scientific, Inc.<F1> 440
--------
EQUIPMENT RENTAL 3.9%
218,900 Coinmach Laundry Corporation <F1> 5,226
--------
FINANCIAL SERVICES 8.6%
88,100 American Capital Strategies, Ltd. <F1> 1,993
70,400 Conning Corporation 1,443
103,400 First Sierra Financial, Inc. <F1> 2,611
121,300 LINC Capital, Inc.<F1> 2,290
113,500 T&W Financial Corporation<F1> 3,235
--------
11,572
--------
FOOTWEAR & RELATED APPAREL 1.6%
126,800 Rocky Shoes & Boots, Inc. <F1> 2,132
--------
HEALTH CARE SERVICES & SUPPLIES 2.7%
18,400 Health Management Systems, Inc.<F1> 195
40,500 Medirisk, Inc.<F1> 952
88,200 Quadramed Corporation 2,514
--------
3,661
--------
HUMAN RESOURCES 3.9%
62,100 Provant, Inc.<F1> 1,157
130,500 RemedyTemp, Inc. - Class A<F1> 4,143
--------
5,300
--------
INSURANCE 2.3%
73,900 ESG Re Ltd. 1,903
43,700 Healthcare Recoveries, Inc. <F1> 1,043
26,800 The Seibels Bruce Group, Inc.<F1> 214
--------
3,160
--------
MACHINERY 1.9%
199,800 ITEQ, Inc. <F1> 2,547
--------
METALS 1.0%
68,200 Metals USA <F1> 1,330
--------
OIL & GAS 1.1%
75,700 Evergreen Resources, Inc.<F1> 1,486
--------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
Microcap FUND
SCHEDULE OF INVESTMENTS
April 30, 1998
(Unaudited)
Number Market Value
of Shares (in thousands)
- ----------- ---------------
OIL SERVICES 2.7%
91,300 Horizon Offshore, Inc.<F1> $ 1,330
102,900 UNIFAB International, Inc.<F1> 2,380
--------
3,710
--------
PHOTOGRAPHIC EQUIPMENT 0.1%
14,600 Concord Camera Corporation<F1> 89
--------
PRIVATE CORRECTION FACILITIES 1.2%
14,600 Childrens Comprehensive Services, Inc.<F1> 273
60,000 Cornell Corrections, Inc. <F1> 1,358
--------
1,631
--------
REAL ESTATE INVESTMENT TRUSTS (REITS) 3.4%
239,000 Capital Automotive REIT 3,719
37,600 Correctional Properties Trust<F1> 867
--------
4,586
--------
RESEARCH & DEVELOPMENT 0.5%
23,600 Kendle International, Inc.<F1> 640
--------
RESTAURANTS 0.7%
75,500 Il Fornaio (America) Corporation <F1> 1,019
--------
RETAIL 4.6%
184,800 A.C. Moore Arts & Crafts, Inc. <F1> 3,511
32,200 DM Management Company <F1> 873
150,600 Factory Card Outlet Corp. <F1> 1,826
--------
6,210
--------
RETIREMENT CARE 4.6%
7,510 Alternative Living Services, Inc. <F1> 263
128,300 Assisted Living Concepts, Inc. <F1> 2,358
57,700 Centennial HealthCare Corporation <F1> 1,370
97,200 Harborside Healthcare Corporation <F1> 2,309
--------
6,300
--------
SCHOOLS 1.0%
62,400 Career Education Corporation<F1> 1,420
--------
TELECOMMUNICATIONS 3.9%
48,900 Metromedia Fiber Network, Inc. <F1> 1,510
12,100 NEXTLINK Communications, Inc. <F1> 363
372,300 Syntellect, Inc. <F1> 838
177,100 TCSI Corporation<F1> 1,207
54,800 US LEC Corporation - Class A<F1> 1,329
--------
5,247
--------
Number Market Value
of Shares (in thousands)
- ----------- ---------------
TELECOMMUNICATIONS EQUIPMENT 3.3%
62,800 Dset Corporation<F1> $ 1,052
25,700 Excel Switching Corporation<F1> 549
82,300 Innova Corporation<F1> 1,409
60,200 REMEC, Inc. <F1> 1,497
--------
4,507
--------
TRANSPORTATION 2.7%
42,800 Coach USA, Inc. <F1> 2,030
102,100 Jevic Transportation, Inc. <F1> 1,583
--------
3,613
--------
VETERINARY HOSPITALS 1.8%
130,700 Veterinary Centers of America, Inc. <F1> 2,442
--------
WARRANTY & SERVICE CONTRACTS 0.5%
93,000 Warrantech Corporation <F1> 610
--------
Total Common Stock (Cost $97,916) 129,607
--------
Number
of Shares
(in thousands)
- ----------------
SHORT-TERM INVESTMENTS 6.5%
INVESTMENT COMPANIES 6.5%
2,609 Financial Square Prime Obligation Fund 2,609
6,183 Short-Term Investments Co.
Liquid Assets Portfolio 6,183
--------
Total Investment Companies (Cost $8,792) 8,792
--------
Total Short-Term Investments (Cost $8,792) 8,792
--------
Total Investments (Cost $106,708) 102.3% 138,399
--------
Liabilities, less Other Assets (2.3)% (3,047)
--------
TOTAL NET ASSETS 100.0% $135,352
========
<F1> Non-income producing
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market
of Shares Industry Value
- --------- -------- ----------
COMMON AND PREFERRED STOCKS 91.8%
ARGENTINA 1.6%
21,000 Banco Rio de La Plata
SA ADR <F1> Banks $ 288,750
12,000 Telefonica de Argentina SA ADR Telecommunications 460,854
37,000 Transportadora de
Gas del Sur SA ADR Natural Gas - Pipeline 421,848
-----------
1,171,452
-----------
AUSTRALIA 2.5%
59,000 Broken Hill Proprietary
Company Limited Diversified Operations 577,001
159,646 GIO Australia Holdings Limited Insurance 457,978
43,861 National Australia Bank Ltd. Banks 623,403
107,391 Pacific Dunlop Ltd. Diversified Manufacturing 198,847
-----------
1,857,229
-----------
AUSTRIA 2.4%
14,287 Bank Austria AG <F1> Banks 1,104,217
9,000 Boehler- Uddeholm AG Steel 663,523
-----------
1,767,740
-----------
BRAZIL 1.2%
15,000 Aracruz Celulose SA ADR Paper & Related Products 236,250
160,000 Rhodia-Ster SA GDR <F1> Chemicals 293,694
3,100 Telecomunicacoes Brasileiras
SA-Telebras ADR Telecommunications 377,467
-----------
907,411
-----------
CANADA 2.6%
20,000 The Loewen Group Inc. Funeral Services 567,500
45,500 Moore Corporation Ltd. Business Services 713,781
55,000 Noranda Forest, Inc. Building Products - Wood 369,132
50,000 Primex Forest Products Ltd. Building Products - Wood 253,429
-----------
1,903,842
-----------
CHILE 0.2%
10,000 Empresa Nacional de
Electricidad SA Electric Utility 174,375
-----------
CHINA 0.5%
57,000 Shandong Huaneng Power
Company Ltd. ADR Electric Utility 413,250
-----------
CZECH REPUBLIC 2.1%
10,500 The Czech Power Company <F1> Electric Power Company 315,631
85,000 Komercni Banka A.S. ADR Banks 947,300
26,000 Skoda Plzen AS <F1> Building & Construction 271,332
-----------
1,534,263
-----------
DENMARK 2.3%
2,400 A/S Forsikringsselskabet Codan Insurance 378,771
8,000 Tele Danmark AS Telecommunications 672,202
7,565 Unidanmark AS Financial Services 635,651
-----------
1,686,624
-----------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market
of Shares Industry Value
- --------- -------- ----------
FINLAND 1.9%
50,200 Kemira Oyj Chemicals $ 543,640
70,520 Merita Ltd. Financial Services 472,456
58,000 Tamro Oyj Drugs 415,192
-----------
1,431,288
-----------
FRANCE 6.5%
3,500 Bail Investissement Real Estate 525,195
13,300 Banque Nationale de Paris Banks 1,120,533
5,000 Compagnie de Saint Gobain Building & Construction 832,535
6,300 Elf Aquitaine SA Oil & Gas - International 826,005
2,150 Eridania Beghin-Say SA Agricultural Products 465,887
900 Fimalac Diversified Operations 103,194
15,000 Scor Insurance 924,264
-----------
4,797,613
-----------
GERMANY 3.7%
8,500 BASF AG Chemicals 378,462
23,000 Bilfinger & Berger Bau AG Building & Construction 775,426
8,200 Moebel Walther AG Retail - Furniture 347,284
14,500 Tarkett Sommer AG Building & Construction 500,976
1,500 Viag AG Diversified Manufacturing 759,823
-----------
2,761,971
-----------
GREAT BRITAIN 13.6%
346,949 The BICC Group PLC Wire & Cable Products 974,566
68,650 British Telecommunications PLC Telecommunications 746,088
260,000 BTR PLC Diversified Operations 867,267
254,850 Caradon PLC Building & Construction 824,521
384,209 Coats Viyella PLC Textiles 597,430
46,139 De La Rue PLC Office Supplies & Forms 221,019
267,850 Hillsdown Holdings PLC Food & Beverage 797,165
195,000 House Of Fraser PLC Retail 523,294
539 Hyder PLC Water, Power & Transport 8,670
137,501 LucasVarity PLC Auto & Truck Components 616,711
36,000 National Westminster Bank PLC Banks 720,498
158,367 Pilkington PLC Glass 332,311
209,823 Rolls-Royce PLC <F1> Aerospace & Aircraft 986,693
78,024 Southern Electric PLC Electricity - Distribution 725,989
139,000 Storehouse PLC Retail 574,048
40,159 United Utilities PLC Utility Services 560,668
-----------
10,076,938
-----------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market
of Shares Industry Value
- --------- -------- ---------
HONG KONG 5.9%
170,000 Cathay Pacific Airways Airlines $ 149,237
65,000 Cheung Kong Ltd. Real Estate 432,156
500,000 Dairy Farm International
Holdings Ltd. Retail - Food 640,000
652,000 Giordano International Limited Retail - Apparel/Shoes 151,509
175,000 Guoco Group Ltd. Financial Services 438,288
76,000 Hutchison Whampoa Limited Diversified Operations 469,968
175,976 Jardine Matheson Holdings Ltd. Diversified Operations 742,619
1,656,000 Pacific Ports Company Ltd. <F1> Traffic Management 423,297
142,000 Peregrine Investments
Holdings Limited Financial Services 78,827
742,500 Swire Pacific Ltd. Diversified Operations 632,645
54,390 Wing Lung Bank Banks 205,032
-----------
4,363,578
-----------
INDIA 1.4%
17,000 BSES Ltd. GDR Electric Utility 279,225
130,000 Crompton & Greaves GDR Electrical Equipment 240,500
100,000 Indian Aluminum Company
Ltd. GDR <F1> Metal & Mineral 250,000
37,000 Tata Engineering and Locomotive
Company Limited Automobile Manufacturing 269,175
-----------
1,038,900
-----------
INDONESIA 0.6%
175,000 PT Indosat Telecommunications 253,560
750,000 PT Pabrik Kertas Tjiwi Kimia Paper & Related Products 188,080
-----------
441,640
-----------
IRELAND 0.7%
53,480 Irish Life PLC Insurance 496,477
-----------
ISRAEL 0.9%
26,000 Koor Industries Limited ADR Telecommunications 657,038
-----------
ITALY 3.5%
186,000 Banca Commerciale Italiana Banks 940,523
65,000 Edison SPA Energy 545,839
375 La Rinascente SPA Retail - Food 3,756
416,240 Montedison SPA Food & Beverage 525,013
153,000 Telecom Italia Mobile SPA Telecommunications 555,202
-----------
2,570,333
-----------
JAPAN 5.7%
15,000 Aoyamma Trading Co., Ltd. Retail - Apparel/Shoes 346,250
39,000 Daichi Pharmaceutical Co., Ltd. Drugs 560,516
80,000 Daito Trust Construction Co. Real Estate 562,476
61,000 Daiwa Securities Company Limited Financial Services 230,833
103,000 Kyudenko Co., Ltd. Electrical Engineering 744,456
255,000 Marubeni Corporation Distribution / Wholesale 582,835
74,600 Nichido Fire & Marine Insurance Insurance 400,298
139,000 Nippon Fire & Marine Insurance Insurance 562,817
249,000 Showa Denko K.K. Chemicals 260,062
-----------
4,250,543
-----------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market
of Shares Industry Value
- --------- -------- ----------
MALAYSIA 1.5%
180,000 Malakoff Bhd Agricultural Operations $ 471,656
48,000 Malayan Banking Bhd Banks 141,176
80,000 O.Y.L. Industries Bhd Air & Heating Systems 226,737
300,000 Road Builder (M) Holdings Bhd Building & Contruction 264,705
-----------
1,104,274
-----------
MEXICO 0.5%
51,000 Elamex SA de CV <F1> Manufacturing - Misc 344,250
-----------
NETHERLANDS 3.2%
10,500 Ballast Nedam NV Building & Construction 496,285
6,000 Eriks Holdings NV Diversified Operations 409,797
27,500 European Vinyls Corporation
International NV Chemicals 537,611
14,500 Koninklijke Ahrend NV Office & Funiture 502,347
11,922 Koninklijke Pakhoed NV Storage & Transportation 436,635
-----------
2,382,675
-----------
NEW ZEALAND 1.9%
251,000 Air New Zealand Limited - Class BAir Transportation 355,642
781,575 Brierley Investments Limited Diversified Operations 451,652
81,329 Fisher & Paykel Industries Ltd. Consumer Appliances 241,768
104,000 Fletcher Challenge Energy Oil & Gas Exploration 354,814
-----------
1,403,876
-----------
NORWAY 2.7%
19,300 Aker RGI ASA Building Materials 339,002
16,100 Kvaerner ASA Building & Construction 714,541
16,700 Sparebanken NOR Banks 577,709
25,000 Odfjell ASA Marine Services 362,024
-----------
1,993,276
-----------
PAKISTAN 0.5%
5,000 Pakistan Telecom Corporation
144A GDR Telecommunications 348,309
-----------
PERU 0.5%
70,000 Banco Wiese ADR <F1> Banks 376,250
-----------
PHILIPPINES 0.4%
20,000 Metropolitan Bank & Trust
Company Banks 155,666
80,000 Philippine National Bank <F1> Banks 160,398
-----------
316,064
-----------
POLAND 0.4%
145,000 Mostostal-Export SA ADR Containers 337,256
-----------
PORTUGAL 0.7%
10,500 Electricidade de Portugal,
SA ADR <F1> Electric Utility 546,000
-----------
RUSSIA 1.5%
35,000 Irkutskenergo ADR Electric Utility 348,313
7,000 Lukoil Holding ADR Oil & Gas - International 461,349
9,000 Monsenergo Electricity - Distribution 318,168
-----------
1,127,830
-----------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market
of Shares Industry Value
- --------- -------- ----------
SINGAPORE 1.0%
173,000 City Developments Limited Real Estate $ 748,377
-----------
SLOVAK REPUBLIC 1.3%
13,000 Nafta Gbely AS Geological Exploration 293,493
30,000 Slovakofarma 144A GDR Health & Beauty Aids 238,500
33,000 VSZ AS <F1> Steel 401,681
-----------
933,674
-----------
SOUTH AFRICA 2.0%
140,000 Murray & Roberts Holdings
Limited Building & Construction 260,258
57,000 Sappi Limited Paper & Related Products 331,414
20,000 Southvaal Holdings Limited Gold Mining 435,082
8,500 Standard Bank Investment
Corporation Limited Banks 502,619
-----------
1,529,373
-----------
SOUTH KOREA 0.6%
79,213 Kookmin Bank Banks 480,031
-----------
SPAIN 5.6%
6,000 Catalana Occidente Insurance 412,164
5,141 Construcciones y Auxiliar de
Ferrocarriles SA Rail Transportation 231,057
11,300 Corporacion Bancaria de
Espana SA Banks 941,574
20,900 Corporacion Mapfre Insurance 820,011
53,500 Iberdrola SA Electricity - Distribution 859,987
16,500 Repsol SA Oil & Gas - International 903,946
-----------
4,168,739
-----------
SWEDEN 4.5%
64,000 ABB AB Rail Transit Systems 992,400
19,300 AssiDoman AB Paper & Related Products 518,736
7,000 Electrolux AB Consumer Appliances 651,262
19,000 Esselte Office Supplies & Forms 429,652
27,000 Getinge Industrier AB Medical Instruments 600,092
4,400 Svenska Handelsbanken Banks 199,565
-----------
3,391,707
-----------
SWITZERLAND 1.8%
1,500 Forbo Holding AG Building Products 770,031
558 Holderbank Building Products 590,760
-----------
1,360,791
-----------
THAILAND 1.4%
35,000 The Siam Cement Public
Company Limited Building Products - Cement 494,117
235,000 Thai Farmers Bank Public
Company Limited Banks 537,750
-----------
1,031,867
-----------
Total Common and Preferred Stocks (Cost $68,782,434) 68,227,124
-----------
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1998
(UNAUDITED)
Number Market
of Shares Industry Value
- --------- -------- ----------
SENIOR SECURITIES 1.1%
14,000 Telmex 11.25% Prides 5/15/98 $ 789,250
-----------
Total Senior Securities (Cost $694,262) 789,250
-----------
SHORT-TERM INVESTMENTS 4.9%
INVESTMENT COMPANIES 2.2%
117,000 Korea Fund, Inc. 899,437
63 Thailand International Fund 729,540
-----------
Total Investment Companies (Cost $2,057,113) 1,628,977
-----------
Principal
Amount
(in thousands)
- ---------------
VARIABLE RATE DEMAND NOTES 2.7%
$2,033 Chase U.S. 2,032,901
-----------
Total Variable Rate Demand Notes (Cost $2,032,901) 2,032,901
-----------
Total Short-Term Investments (Cost $4,090,014) 3,661,878
-----------
Total Investments (Cost $73,566,710) 97.8% 72,678,252
-----------
Other Assets, Less Liabilities 2.2% 1,635,007
-----------
TOTAL NET ASSETS 100% $74,313,259
===========
<F1> Non-Income producing
See notes to the financial statements.
FIRSTAR FUNDS
(LOGO)
BALANCED GROWTH FUND
GROWTH AND INCOME FUND
EQUITY INDEX FUND
GROWTH FUND
SPECIAL GROWTH FUND
EMERGING GROWTH FUND
MICROCAP FUND
INTERNATIONAL EQUITY FUND
NOTES TO THE FINANCIAL STATEMENTS
(UNAUDITED)
1. ORGANIZATION
Firstar 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. The Balanced Growth Fund
(formerly the Balanced Fund), the Growth and Income Fund, the Equity Index Fund,
the Growth Fund (formerly the MidCore Growth Fund), the Special Growth Fund, the
Emerging Growth Fund, the MicroCap Fund and the International Equity Fund (the
"Funds") are separate, diversified investment portfolios of the Company. The
Special Growth Fund commenced operations on December 28, 1989; the Growth and
Income Fund and Equity Index Fund commenced operations on December 29, 1989; the
Balanced Growth Fund commenced operations on March 30, 1992; the Growth Fund
commenced operations on December 29, 1992; the International Equity Fund
commenced operations on April 28, 1994; the MicroCap Fund commenced operations
on August 1, 1995; and the Emerging Growth Fund commenced operations on August
15, 1997. The objective of the Balanced Growth Fund is to achieve a balance of
capital appreciation and current income with relatively low volatility of
capital. The objective of the Growth and Income Fund is to seek both reasonable
income and long-term capital appreciation. The objective of the Equity Index
Fund is to seek returns, before Fund expenses, comparable to the price and yield
performance of publicly traded common stocks in the aggregate, as represented by
the S&P 500 Stock Index. The objective of the Growth Fund is capital
appreciation through investment in securities of medium- to large-sized
companies. The objective of the Special Growth Fund is capital appreciation
through investment in securities of medium-sized companies. The objective of the
Emerging Growth Fund is capital appreciation through investments in securities
of small-sized companies. The objective of the MicroCap Fund is capital
appreciation through investments in small companies. The objective of the
International Equity Fund is to seek capital appreciation through investment in
foreign securities which the Sub-Advisor believes are undervalued.
The costs, in thousands, incurred in connection with the organization,
initial registration and public offering of shares aggregating $21, $24 and $27
for the Emerging Growth, MicroCap and International Equity Funds, respectively,
have been paid by the Funds. These costs are being amortized over the period of
benefit, but not to exceed sixty months from each Fund's commencement of
operations.
The Company has issued two classes of Fund shares in each of the Funds:Series
A and Series Institutional. The Series A shares are subject to a 0.25% service
organization fee and an initial sales charge imposed at the time of purchase, in
accordance with the Funds' prospectus. The maximum sales charge is 4% of the
offering price or 4.16% of the net asset value. Each class of shares for each
Fund has identical rights and privileges except with respect to service
organization fees paid by Series A shares, voting rights on matters affecting a
single class of shares and the exchange privileges of each class of shares.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
a) Investment Valuation - Securities which are traded on a recognized stock
exchange are valued at the last sale price on the securities exchange on which
such securities are primarily traded or at the last sale price on a national
securities exchange. Exchange-traded securities for which there were no
transactions are valued at the current bid prices, with the exception of the
International Equity Fund, which is valued at the average of the current bid and
asked prices. Securities traded on only over-the-counter markets are valued on
the basis of closing over-the-counter bid prices. Instruments with a remaining
maturity of 60 days or less are valued on an amortized cost basis. Securities
for which market quotations are not readily available and other assets are
valued at fair value as determined by the investment adviser under the
supervision of the Board of Directors. Portfolio securities which are primarily
traded on foreign securities exchanges are generally valued at the preceding
closing values of such securities on their respective exchanges, except when an
occurrence subsequent to the time a value was so established is likely to have
changed such value. In such an event, the fair value of those securities is
determined through the consideration of other factors by or under the direction
of the Board of Directors. Quotations of foreign securities in foreign currency
are converted to United States ("U.S.") dollar equivalents using the foreign
exchange quotation in effect at the time net asset value is computed. Foreign
securities held by the International Equity Fund may trade in their local
markets on days the U.S. exchanges are closed, and the International Equity
Fund's net asset value may, therefore, change on days when investors may not
purchase or redeem Fund shares.
b) Federal Income Taxes - It is each Fund's policy to meet the requirements of
the Internal Revenue Code applicable to regulated investment companies and each
fund intends to distribute investment company net taxable income and net capital
gains to shareholders. Therefore, no federal income tax provision is required.
FIRSTAR FUNDS
(LOGO)
c) Income and Expenses - The Funds are charged for those expenses that are
directly attributable to each portfolio, such as advisory, administration 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. Net investment income other than class specific expenses, and
realized and unrealized gains and losses are allocated daily to each class of
shares based upon the relative net asset value of outstanding shares of each
class of shares at the beginning of the day (after adjusting for the current
day's capital share activity of the respective class).
d) Distributions to Shareowners - Dividends from net investment income are
declared and paid quarterly, for the Balanced Growth, Growth and Income and
Equity Index Funds and annually for the Growth, Special Growth, Emerging Growth,
Microcap and International Equity Funds. Distributions of net realized capital
gains, if any, will be declared at least annually.
e) Futures Contracts - The Equity Index Fund may utilize futures contracts to a
limited extent. The risk associated with the use of futures contracts includes
the possibility of an illiquid market. Futures contracts are valued based upon
their quoted daily settlement prices. Changes in initial settlement value are
accounted for as unrealized appreciation (depreciation) until the contracts are
terminated at which time realized gains and losses are recognized.
f) When-Issued Securities _ The Funds may purchase securities on a when-issued
or delayed delivery basis. Although the payment and interest terms of these
securities are established at the time the purchaser enters into the agreement,
these securities may be delivered and paid for at a future date, generally
within 45 days. The Fund records purchases of when-issued securities and
reflects the values of such securities in determining net asset value in the
same manner as other portfolio securities. The Fund segregates and maintains at
all times cash, cash equivalents, or other liquid securities in an amount at
least equal to the amount of outstanding commitments for when-issued securities.
g) 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.
h) Foreign Currency Translations - The books and records of the International
Equity Fund are maintained in U.S. dollars. Foreign currencies, investments, and
other assets and liabilities denominated in foreign currencies are translated
into U.S. dollars at the exchange rates prevailing at the end of the period, and
purchases and sales of investment securities, and income and expenses
denominated in foreign currencies are translated on the respective dates of such
transactions. Unrealized gains and losses on investments which result from
changes in foreign currency exchange rates have been included in the unrealized
net appreciation (depreciation) on investments. Foreign currency exchange gains
and losses included in net appreciation (depreciation) on foreign currency and
net realized gains and losses on foreign currency include foreign currency gains
and losses between trade date and settlement date on investment securities
transactions, foreign currency transactions and the difference between the
amounts of interest and dividends recorded on the books of the Fund and the
amount actually received. The portion of the foreign currency gains and losses
related to fluctuation in exchange rates between the initial purchase trade date
and subsequent sale trade date of a security is included in realized gains and
losses on investment transactions.
i) Other - Investment and shareowner transactions are recorded on the trade
date. The Funds determine 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 or as
soon as information is available to the Funds, and interest income is recognized
on an accrual basis. Generally accepted accounting principles require that
permanent financial reporting and tax differences be reclassified to capital
stock.
FIRSTAR FUNDS
(LOGO)
3. CAPITAL SHARE TRANSACTIONS
Transactions, in thousands, of shares of the Funds were as follows:
<TABLE>
<CAPTION>
BALANCED GROWTH GROWTH AND INCOME EQUITY INDEX
FUND FUND FUND
-------------------- --------------------- -------------------
Amount Shares Amount Shares Amount Shares
------- ------- ------- ------- ------- -------
SIX MONTHS ENDED APRIL 30, 1998: <C> <C> <C> <C> <C> <C>
Series A shares:
Shares sold $11,417 387 $28,823 669 $16,229 233
Shares issued to owners in
reinvestment of dividends 4,081 145 5,156 129 1,894 29
Shares redeemed (3,191) (107) (8,803) (207) (5,634) (82)
-------- -------- -------- -------- -------- --------
Net increase $12,307 425 $25,176 591 12,489 180
======== ======= ======== ======== ======== ========
Series Institutional shares:
Shares sold $31,038 1,041 $75,697 1,775 $88,137 1,266
Shares issued to owners in
revinvestment of dividends 15,097 535 12,949 323 7,404 112
Shares redeemed (29,426) (1,006) (62,069) (1,451) (38,185) (555)
-------- -------- -------- -------- -------- --------
Net increase $16,709 570 $26,577 627 $57,356 823
======== ======= ======== ======== ======== ========
YEAR ENDED OCTOBER 31, 1997:
Series A shares:
Shares sold $15,346 529 $43,063 1,218 $30,916 529
Shares issued to owners in
reinvestment of dividends 2,448 89 6,930 218 1,307 23
Shares redeemed (6,070) (211) (11,682) (328) (8,112) (137)
-------- -------- -------- -------- -------- --------
Net increase $11,724 407 $38,311 1,108 $24,111 415
======== ======= ======== ======== ======== ========
Series Institutional shares:
Shares sold $67,590 2,347 $139,658 3,995 $133,310 2,298
Shares issued to owners in
revinvestment of dividends 10,877 394 20,195 632 6,369 115
Shares redeemed (57,431) (1,976) (78,849) (2,165) (95,857) (1,703)
-------- -------- -------- -------- -------- --------
Net increase $21,036 765 $81,004 2,462 $43,822 710
======== ======= ======== ======== ======== ========
</TABLE>
YEAR ENDED OCTOBER 31, 1996:
Series A shares Shares sold $ 7,996 296 $22,872 751 $19,090 418
FIRSTAR FUNDS
(LOGO)
3. CAPITAL SHARE TRANSACTIONS (CONT.)
Transactions, in thousands, of shares of the Funds were as follows:
<TABLE>
<CAPTION>
GROWTH SPECIAL GROWTH EMERGING GROWTH
FUND FUND FUND
-------------------- --------------------- -------------------
Amount Shares Amount Shares Amount Shares
------- ------- ------- ------- ------- -------
SIX MONTHS ENDED APRIL 30, 1998: <C> <C> <C> <C> <C> <C>
Series A shares:
Shares sold $ 5,723 167 $21,285 505 $ 4,761 445
Shares issued to owners in
reinvestment of dividends 3,577 118 14,452 357 45 5
Shares redeemed (2,160) (63) (19,671) (463) (651) (61)
-------- -------- -------- -------- -------- --------
Net increase $ 7,140 222 $16,066 399 $ 4,155 389
======== ======= ======== ======== ======== ========
Series Institutional shares:
Shares sold $25,170 752 $61,192 1,436 $13,445 1,296
Shares issued to owners in
revinvestment of dividends 20,361 665 50,064 1,228 307 32
Shares redeemed (43,645) (1,289) (115,095) (2,703) (2,924) (283)
-------- -------- -------- -------- -------- --------
Net increase $ 1,886 128 $(3,839) (39) $10,828 1,045
======== ======= ======== ======== ======== ========
PERIOD ENDED OCTOBER 31, 1997:<F1>
Series A shares:
Shares sold $ 8,130 250 $ 39,485 949 $ 5,403 525
Shares issued to owners in
reinvestment of dividends 727 24 13,955 370 - -
Shares redeemed (3,796) (113) (28,518) (683) (60) (6)
-------- -------- -------- -------- -------- --------
Net increase $ 5,061 161 $ 24,922 636 $ 5,343 519
======== ======= ======== ======== ======== ========
Series Institutional shares:
Shares sold $48,607 1,489 $164,735 3,973 $46,878 4,670
Shares issued to owners in
revinvestment of dividends 5,140 168 53,786 1,420 - -
Shares redeemed (53,475) (1,641) (181,632) (4,277) (118) (11)
-------- -------- -------- -------- -------- --------
Net increase $ 272 16 $ 36,889 1,116 $46,760 4,659
======== ======= ======== ======== ======== ========
</TABLE>
<F1> Capital share activity is for the fiscal year ended October 31, 1997 for
the Growth Fund and Special Growth Fund, and for the period August 15, 1997
to October 31, 1997 for the Emerging Growth Fund.
FIRSTAR FUNDS
(LOGO)
3. CAPITAL SHARE TRANSACTIONS (CONT.)
Transactions, in thousands, of shares of the Funds were as follows:
MICROCAP INTERNATIONAL
FUND EQUITY FUND
----------------- ----------------
Amount Shares Amount Shares
------- ------- ------- -------
SIX MONTHS ENDED APRIL 30, 1998:
Series A shares:
Shares sold $ 37 2 $ 1,987 109
Shares issued to owners in
reinvestment of dividends 1,570 99 163 9
Shares redeemed (979) (62) (1,125) (63)
-------- -------- -------- --------
Net increase $ 628 39 $ 1,025 55
======== ======== ======== ========
Series Institutional shares:
Shares sold $ 1,750 121 $ 8,175 448
Shares issued to owners in
revinvestment of dividends 7,878 492 1,085 63
Shares redeemed (5,791) (356) (3,449) (190)
-------- -------- -------- --------
Net increase $ 3,837 257 $ 5,811 321
======== ======== ======== ========
YEAR ENDED OCTOBER 31, 1997:
Series A shares:
Shares sold $ 6,446 421 $ 4,828 226
Shares issued to owners in
reinvestment of dividends 1,536 112 116 6
Shares redeemed (2,209) (146) (1,624) (79)
-------- -------- -------- --------
Net increase $ 5,773 387 $ 3,320 153
======== ======== ======== ========
Series Institutional shares:
Shares sold $22,484 1,468 $27,533 1,361
Shares issued to owners in
revinvestment of dividends 9,877 717 1,149 59
Shares redeemed (5,872) (371) (9,612) (476)
-------- -------- -------- --------
Net increase $26,489 1,814 $19,070 944
======== ======== ======== ========
FIRSTAR FUNDS
(LOGO)
4. INVESTMENT TRANSACTIONS
The aggregate purchases and sales, in thousands, of securities, excluding
short-term investments, for the Funds for the period ended April 30, 1998, were
as follows:
<TABLE>
<CAPTION>
BALANCED GROWTH AND EQUITY GROWTH SPECIAL EMERGING MICROCAP INTERNATIONAL
GROWTH FUND INCOME FUND INDEX FUND FUND GROWTH FUND GROWTH FUND FUND EQUITY FUND
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Purchases: <C> <C> <C> <C> <C> <C> <C> <C>
U.S. Government $11,934 -00 -00 -00 -00 -00 -00 -00
Other 55,945 $109,763 $75,120 $42,646 $313,983 $49,347 $88,503 $18,517
Sales:
U.S. Government 1,329 -00 -00 -00 -00 -00 -00 -00
Other 50,501 102,715 9,200 62,859 366,844 32,865 102,260 11,849
</TABLE>
Equity Index Fund transactions in futures contracts during the period October
31, 1997 to April 30, 1998, in thousands, were as follows:
AGGREGATE
NUMBER OF FACE VALUE OF
CONTRACTS CONTRACTS <F1>
---------- ---------------
Outstanding at October 31, 1997 110 $ 25,454
Contracts opened 542 138,827
Contracts closed (552) (137,052)
------ ----------
Outstanding at April 30, 1998 100 $ 27,229
====== ==========
<F1> The aggregate face value of contracts is computed on the date each contract
is opened.
The number of futures contracts and gross unrealized appreciation, in thousands,
as of April 30, 1998, were as follows:
NUMBER OF UNREALIZED
CONTRACTS APPRECIATION
---------- --------------
S&P 500 Financial Futures
Contract
Expiration date 6/98 <F2> 100 $751
<F2> At April 30, 1998, U.S. Treasury Bills of $1,576, in thousands, were held
as collateral in an initial margin account in connection with open futures
contracts held by the Equity Index Fund.
At April 30, 1998, gross unrealized appreciation and depreciation of investments
for federal tax purposes, in thousands, were as follows:
<TABLE>
<CAPTION>
BALANCED GROWTH AND EQUITY GROWTH SPECIAL EMERGING MICROCAP INTERNATIONAL
GROWTH FUND INCOME FUND INDEX FUND FUND GROWTH FUND GROWTH FUND FUND EQUITY FUND
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<C> <C> <C> <C> <C> <C> <C> <C>
APPRECIATION $55,533 $244,246 $241,010 $84,340 $268,337 $11,042 $36,314 $9,001
(DEPRECIATION) (1,579) (1,792) (5,818) (353) (6,161) (2,468) (4,625) (9,890)
-------- -------- -------- -------- -------- -------- -------- --------
NET UNREALIZED APPRECIATION
(DEPRECIATION) ON
INVESTMENTS $53,954 $242,454 $235,192 $83,987 $262,176 $ 8,574 $31,689 $ (889)
======== ======== ======== ======== ======== ======== ======== ========
</TABLE>
At April 30, 1998, the cost of investments, in thousands, for federal income tax
purposes was $188,604, $402,906, $308,223, $141,358, $503,827, $68,416, $106,710
and $73,567 for the Balanced Growth, Growth and Income, Equity Index, Growth,
Special Growth, Emerging Growth, MicroCap and International Equity Funds,
respectively.
5. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Funds have entered into an Investment Advisory Agreement with Firstar
Investment Research & Management Company, LLC ("FIRMCO"). FIRMCO is a subsidiary
of Firstar Corporation, a publicly held bank holding company. Pursuant to its
Advisory Agreement with the Funds, the Adviser is entitled to receive a fee,
calculated daily and payable monthly, at the annual rates presented below as
applied to each Fund's daily net assets. Effective September 2, 1997
FIRMCOentered into a Sub-Advisory Agreement with Hansberger Global Investors
(the "Sub-Adviser") for the International Equity Fund. Prior to September 2,
1997, FIRMCOhad entered into a sub-advisory agreement with State Street Global
Advisors for the International Equity Fund. Pursuant to its Sub-Advisory
Agreement with FIRMCO, the Sub-Adviser is entitled to receive a fee from FIRMCO,
calculated daily and payable monthly, at the annual rate presented below as
applied to the International Equity Fund's daily net assets.
FIRSTAR FUNDS
(LOGO)
For the period ended April 30, 1998, FIRMCO voluntarily waived the following
fees, in thousands, by Fund:
<TABLE>
<CAPTION>
BALANCED GROWTH AND EQUITY GROWTH SPECIAL EMERGING MICROCAP INTERNATIONAL
GROWTH FUND INCOME FUND INDEX FUND FUND GROWTH FUND GROWTH FUND FUND EQUITY FUND
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<C> <C> <C> <C> <C> <C> <C> <C>
Annual Rate 0.75% 0.75% 0.25% 0.75% 0.75% 0.75% 1.50% <F1><F2>
Fees waived $188 -00 -00 -00 -00 $67 -00 $147
</TABLE>
<F1> FIRMCO is entitled to receive a fee, calculated daily and payable monthly,
at the annual rate of 1.50% of the Fund's first $25 million of average
daily net assets, 1.25% on the next $75 million and 1.10% of the Fund's
average daily net assets in excess of $100 million.
<F2> Pursuant to its Sub-Advisory Agreement with FIRMCO, the Sub-Adviser is
entitled to receive a fee from FIRMCO, calculated daily and payable
monthly, at the annual rate of 0.75% of the Fund's first $25 million of
average daily net assets, 0.50% on the next $75 million and 0.35% of the
Fund's average daily net assets in excess of $100 million.
Chase Manhattan Bank serves as sub-custodian for the International Equity
Fund. Firstar Trust Company, an affiliate of FIRMCO, serves as custodian,
accounting services agent and transfer agent for all 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, 1998, $82, $207, $169, $80, $267, $23, $44 and $24 of administration
fees, in thousands, were voluntarily waived for the Balanced Growth, Growth and
Income, Equity Index, Growth, Special Growth, Emerging Growth, MicroCap and
International Equity Funds, respectively.
The Company has entered into Servicing Agreements with certain Service
Organizations, including FIRMCO affiliates, for the Series A class of shares.
The Service Organizations are entitled to receive fees from the Funds up to the
annual rate of 0.25% of the average daily net asset value of the Series A Shares
for certain support and/or distribution services to customers of the Service
Organizations who are beneficial owners of Fund Series A Shares. These services
may include assisting customers in processing purchase, exchange and redemption
requests; processing dividend and distribution payments from the Funds; and
providing information periodically to customers showing their positions in Fund
Series A Shares. Service Organization fees, in thousands, incurred by the
Balanced Growth, Growth and Income, Equity Index, Growth, Special Growth,
Emerging Growth, MicroCap and International Equity Funds aggregated $63, $186,
$111, $36, $193, $9, $20 and $9 respectively, for the period ended April 30,
1998.
Each Director of the Company who is not affiliated with FIRMCO receives a 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
Firstar 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 Firstar
Funds or 90-day U.S. Treasury bills. The Funds maintain their proportionate
share of the Company's liability for deferred fees.
6. FOREIGN SECURITIES
Investing in securities of foreign companies and foreign governments involves
special risks and considerations not typically associated with investing in U.S.
companies and the U.S. Government. These risks include revaluation of currencies
and future adverse political and economic developments. Moreover, securities of
many foreign companies and foreign governments and their markets may be less
liquid and their prices more volatile than those of securities of comparable
U.S. companies and the U.S. Government.
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Firstar Funds are available through:
- - the Firstar Funds Center,
- - Investment Specialists who are registered
representatives of Firstar 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
Firstar Funds Center
615 East Michigan Street
P.O. Box 3011
Milwaukee, WI 53201-3011
www.firstarfunds.com
TO GET THERE, START HERE.SM
FIRSTAR FUNDS
(LOGO)
Form #40-0248 6/98
