---------------
FAMILY OF FUNDS
---------------
MONEY MARKET FUND
INSTITUTIONAL MONEY MARKET FUND
U.S. GOVERNMENT MONEY MARKET FUND
U.S. TREASURY MONEY MARKET FUND
TAX-EXEMPT MONEY MARKET FUND
SHORT-TERM BOND MARKET FUND
INTERMEDIATE BOND MARKET FUND
TAX-EXEMPT INTERMEDIATE BOND FUND
BOND IMMDEXTM FUND
BALANCED INCOME FUND
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, 1999
(LOGO) FIRSTAR FUNDS
<PAGE>
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.
- - There can be no assurance that the money market funds will be able to
maintain a stable net asset value of $1.00 per share.
- - Firstar Bank affiliates serve as 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........................................1-3
EQUITY FUNDS
Firstar Balanced Income..................................4-5
Firstar Balanced Growth..................................6-7
Firstar Growth & Income..................................8-9
Firstar Equity Index...................................10-11
Firstar Growth.........................................12-13
Firstar Special Growth.................................14-15
Firstar Emerging Growth................................16-17
Firstar MicroCap.......................................18-19
Firstar International Equity...........................20-21
Statement of Assets and Liabilities....................22-23
Statement of Changes in Net Assets.....................24-26
Statement of Operations................................27-28
Financial Highlights...................................30-39
Schedule of Investments................................40-70
Page(s)
BOND FUNDS
The Reintroduction to Risk.............................72-73
Short-Term Bond Market.................................74-75
Intermediate Bond Market...............................76-77
Tax-Exempt Intermediate................................78-79
Bond IMMDEX/TM.........................................80-81
Statement of Assets and Liabilities.......................82
Statement of Changes in Net Assets........................83
Statement of Operations...................................84
Financial Highlights...................................86-91
Schedule of Investments...............................92-102
MONEY MARKET FUNDS
Shareowner Letter........................................104
Yield Comparisons........................................105
Statement of Assets and Liabilities......................106
Statement of Operations..................................107
Statement of Changes in Net Assets...................108-109
Financial Highlights.................................110-111
Schedule of Investments..............................112-120
Notes to the Financial Statements (All Funds)........121-130
<PAGE>
(LOGO) FIRSTAR FUNDS
DEAR SHAREOWNER: June 1999
INVESTMENT REVIEW
Stock prices continued their ascent in the six months since our last report,
with the Standard & Poor's 500 Index posting a +22.3% total return. More
newsworthy was the venerable Dow Jones Industrial Average eclipsing the 10,000
mark for the first time. This was in dramatic contrast to the lagging
performance of small company stocks reflected by the +9.0% total return of the
S&P SmallCap 600 Index. Medium-sized company stocks as represented by the S&P
MidCap 400 Index were up +18.9%. The bond market declined with long-term
interest rates rising from 5.2% to 5.7% as measured by the 30-year U.S. Treasury
Bond, resulting in a (0.1)% total return for the Lehman Brothers
Government/Corporate Bond Index.
The past six months have witnessed unbridled Internet stock mania, a phenomenon
that now ranks among the greatest speculative bubbles in U.S. stock market
history. Investor enthusiasm for new technology has generated other bubbles,
such as the electricity stock mania of the late 19th century in Britain and the
radio stock flurry of the 1920s here in the U.S. The most recent example was the
explosion of biotechnology stocks in the early 1990s. Many of those companies
are no longer in business. Even the industry leaders who survive today watched
their stock prices decline more than 70% from their mania peaks to their
subsequent lows. We are not suggesting the Internet is a fad industry, as we
believe real investment opportunities will emerge. We maintain, however, that
today's Internet stock prices are based on greed-driven euphoria and are not
sustainable. Like past market manias, the Internet bubble will burst and may in
fact end badly for many investors.
Our belief that small company stocks offer outstanding value compared to large
company stocks is unwavering. Chasing Internet and other 'mega' stocks may work
in the short-term but is likely to disappoint over time. We contend an
appropriate allocation among large-, mid- and small-cap stocks is the best way
to win the investment marathon.
Equally important to long-term success is adhering to a consistent investment
style. While Firstar Funds offer actively managed stock portfolios across the
market capitalization spectrum and bond portfolios across the maturity range, we
remain true to our investment philosophy. We follow a structured approach to the
management of our fixed-income portfolios and a growth-at-reasonable-price
approach to the management of our equity portfolios. We are pleased with the
long-term investment results we have achieved and remain confident in our
ability to deliver competitive returns in the future.
<PAGE>
(LOGO) FIRSTAR FUNDS
MARKET OUTLOOK
Looking ahead, our market forecast is predicated on the following trends:
- - Key fundamental components of the "new era" economy include stable monetary
policy, intense competition due to deregulation and free trade, and enhanced
labor and capital productivity gains due to the rapid application of
technological innovations across the economy. Until one or more of these
fundamental trends are reversed, we believe the new era combination of
better-than-expected economic growth and lower-than-expected inflation will
persist.
- - Continued consumer spending gains due to the large number of baby boomers in
their peak earning, spending and saving years, and the boomers' children
establishing households (therefore increasing their consumption of big ticket
durable goods such as autos and large appliances).
- - Solid U.S. economic growth persisting into the second half of 1999 as
companies build inventories as an insurance policy against the Y2K computer
bug.
- - Lower-than-expected inflation driven by global competition, the Internet, and
merger and acquisition activity.
- - A modest synchronized global upturn, with Japan still bedeviled by its
inability to restore a vibrant banking system and remaining mired in a
downward deflationary spiral. Additionally, economic gains in Europe remain
modest with little evidence of imminent acceleration in activity.
- - Corporate bond issuance will be robust for the year and interest rates will
trend lower over the balance of the year in response to lower-than-expected
inflation and some slowdown in the pace of U.S. economic growth.
- - Better-than-expected corporate earnings gains due to easier profit
comparisons, lower commodity prices, ongoing cost savings due to
restructuring and downsizing, and the technology investment productivity
loop.
- - Stock market returns will be more a function of earnings gains rather than
expanding price-to-earnings ratios.
- - Valuations will reach relative extremes as the market continues to reward the
biggest companies with the best stock performance. The best relative value,
however, lies in small and mid-size companies.
IN SUMMARY
The U.S. economy continues to defy modern economic theory, delivering robust
growth, low unemployment and low inflation. Corporate profit expectations are
moving up to levels considered optimistic at the start of the year. The rise in
interest rates makes an expansion in stock market valuations (i.e. price-to-
earnings ratios) unlikely, with the S&P trading at 26 times the 1999 earnings
forecast of $49.00. We believe interest rates will move lower as the red-hot
U.S. economy cools and inflation remains subdued, allowing stock and bond prices
to move higher.
IN OTHER NEWS
On the technology front, we continue to provide shareowners and visitors alike
with timely information via our web site at www.firstarfunds.com. The site's
transactional features have been a hit with shareholders, who are drawn by the
convenience of purchasing, redeeming and exchanging shares and transferring
assets online.
We'd also like to report Firstar MicroCap Fund is open to new investments and
will remain so until it reaches $250 million. We are enthusiastic about the
outlook for microcap investing given the tremendous relative values we believe
are available among the market's smallest company stocks. Especially noteworthy
is the Fund's recent designation as an S&P Select Fund, an honor reserved for
the top 21 funds in the small-cap universe.<F1> The S&P's Select Fund Evaluation
Service - the first of its kind - provides investors with fund evaluations that
combine thorough analysis of a fund's performance and its management, a unique
process that Standard & Poor's believes gives investors a more in-depth
perspective than a mechanically derived score based on past performance. S&P's
Select Fund designation is limited to about the top 10% of funds in each
sector.<F2>
The fund-specific portfolio review letters within this report provide a thorough
description of our fund management and fund performance over the last six
months. We encourage you to read them. We also encourage you to call or write if
you have questions or comments regarding portfolio performance or our investment
strategy.
Thanks for your continued confidence in the Firstar Funds.
Sincerely,
(PHOTO) (PHOTO)
MARY ELLEN STANEK, CFA MARIAN ZENTMYER, CFA, CFP
President and Chief Executive Officer
Chief Equity Investment Officer
Firstar Investment Research & Management Company, LLC (FIRMCO)
<F1> Performance reflects fee waivers then in effect. In the absence of fee
waivers, total performance would be reduced.
<F2> Standard & Poor's Select Fund designation is based on a six-month moving
average of three years of absolute and volatility-adjusted total return
performance data relative to 263 small capitalization growth funds. The
ranking takes into account sales charges.
<PAGE>
(LOGO) FIRSTAR FUNDS
- --------------------------------------------------------------------------------
BALANCED INCOME FUND
- --------------------------------------------------------------------------------
Firstar Balanced Income Fund seeks capital appreciation combined with reasonable
income by investing in bonds. Typically, the Fund will invest 50% of assets in
common stocks of large, dividend-paying equity securities, with the balance
invested in intermediate-term high quality bonds and money markets. As of April
30, 1999, the Fund consisted of 51% in common stocks, 48% in bonds, and 1% in
money markets. The weighted average market capitalization of the common stocks
was $3.2 billion, considerably less than the $97.2 billion average market
capitalization of the Standard and Poor's 500 stock index. Bond holdings within
the portfolio had a weighted average duration of 3.4 years, matching the
duration of the Lehman Intermediate Term Government Bond Index. The yield of the
total portfolio on April 30 was 2.8%. For the six months ended April 30, 1999,
the Firstar Balanced Income Fund returned +7.2% (7.0% retail no-load), compared
with the return of 12.8% for the Lipper Balanced Fund median.
The Fund's fiscal year began with plunging interest rates, falling stock
markets, and central bank concerns about worldwide deflationary forces. By the
end of April, stock markets had recovered, interest rates had climbed (from
4.75% on the 30-year U.S. Treasury bond to close to 6%), and the threat of
deflationary forces had given way to concerns that inflation was again
potentially posing a threat. Large-company stock performance was again the
leader, with the S&P 500 Index of large stocks earning 22.3%. The returns earned
by the S&P 500 were heavily concentrated in the technology area, usually a
source of companies that pay little or no dividend. The spiraling prices of
Microsoft, Cisco Systems, and America Online were typical of the big
contribution to return coming from a few select stocks. Needless to say, the
Fund owned none of these securities and was destined to lag its primary
benchmarks.
During the first six months, the Fund had significant concentrations in the
market sectors of consumer cyclicals, finance, and healthcare. The Fund had very
good returns in new stocks Marsh & McLennan, American Express, and Alltel. Tyco
International, the largest position in the portfolio, was the leading
contributor to return. Unfortunately, the Fund experienced sizable declines in
Service Corp. International as business conditions weakened. Another losing
stock, McKesson/HBO, was forced to restate prior accounting reports after the
recent acquisition of HBO. Finally, consumer stocks were good contributors to
portfolio performance as the strong economy buoyed consumer spending patterns.
See page 40 for a complete listing of portfolio holdings.
The objective of the fixed-income component of Firstar Balanced Income Fund is
to provide an annual rate of total return comparable to the return of the Lehman
Brothers Intermediate Government/Corporate Bond Index. After the dramatic
widening of yield spreads in non-Treasury sectors last fall, we selectively
added to our holdings in the corporate asset-backed and mortgage-backed sectors.
The subsequent tightening of yield spreads in these sectors in 1999 has
contributed to the performance of the Fund over the last six months. Our
careful, research-intense process of selecting investment-grade issues in these
sectors gives the Fund a high-quality focus. Over 70% of the fixed-income
portion of the Fund is invested in obligations rated Aaa/AAA or higher. Among
corporate bonds, we have a preference for finance, banking and brokerage issues
along with dollar-denominated international ("Yankee") securities. We think
these sectors represent exceptional value moving forward. The hallmark of our
fixed-income approach has been our consistent, risk-controlled approach in all
market climates. This same disciplined management approach is employed in the
management of this Fund as well.
While we are disappointed with the returns for the first six months of the
fiscal year, we are encouraged by several facts that suggest better relative
performance lies ahead. The stock market has been rewarding technology companies
with strong returns, and the valuations on those companies now reflect their
potential "good news." Speculative excess is found in Internet companies,
another group not paying dividends because it often does not earn income. The
Balanced Income Fund is designed to reduce risk by investing in conservative
stocks and conservative bonds. The Fund's stocks have not been rewarded in the
current environment, but we believe that predictable earnings growth from
understandable companies will be rewarded in this fast-changing market. Summer
months often bring market volatility, and the conservative balanced strategy
employed by the Fund is designed to cushion market declines.
Thank you for your continued support of Firstar Balanced Income Fund.
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
Marian E. Zentmyer, CFA, CFP, Chief Equity Investment Officer of Firstar
Investment Research & Management Company, LLC (FIRMCO) and Warren D. Pierson,
CFA, Senior Vice President and Senior Portfolio Manager co-manage the Fund -
Marian since its inception on January 1, 1989 and Warren since July 1, 1995.
Marian has been with Firstar since 1982 and has 21 years of investment
management experience. She received her BA from Stanford University in 1978.
Warren has been with Firstar since 1985 and has 14 years of investment
management experience. Warren received his BA from Lawrence University in 1984.
Marian is a Certified Financial Planner and a Chartered Financial Analyst.
Warren is a Chartered Financial Analyst.
(PHOTO) (PHOTO)
MARIAN E. ZENTMYER, WARREN D. PIERSON, CFA
CFA, CFP
<PAGE>
(LOGO) FIRSTAR FUNDS
FIRSTAR BALANCED
INCOME FUND -
INSTITUTIONAL
----------------
12/1/97 10,000
10/98 11,270
4/99 12,082
This chart assumes an initial investment of $10,000 made on 12/1/97 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Performance shown is for Institutional shares, which
have lower fees and expenses than Series A or Series B shares. If these fees and
expenses were reflected in the chart above, 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, 1999
Fiscal
Year-To-Date 1 Year Since Inception
FIRSTAR BALANCED
INCOME FUND - INSTITUTIONAL 7.2 9.0 14.4 (12/1/97)
FIRSTAR BALANCED
INCOME FUND - A - NO LOAD 7.0 8.7 14.0 (12/1/97)
FIRSTAR BALANCED
INCOME FUND - A - LOAD<F2> 2.2 3.8 10.4 (12/1/97)
FIRSTAR BALANCED
INCOME FUND - B - NO LOAD - - 3.4 (3/1/99)<F1>
FIRSTAR BALANCED
INCOME FUND - B - LOAD<F3> - - (1.7) (3/1/99)<F1>
LIPPER BALANCED FUND INDEX<F4> 12.8 11.1 15.6 (12/1/97)
S&P 500 STOCK INDEX<F5> 22.3 21.8 28.6 (12/1/97)
A= Series A (retail shares)
B= Series B (retail shares)
<F1> Series B performance for the period March 1, 1999 to April 30, 1999 is not
annualized.
<F2> Reflects maximum sales charge of 4.50%.
<F3> Reflects maximum deferred sales charge of 5.00%.
<F4> 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.
<F5> 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 have a 4.50% maximum sales load and are subject to an annual
0.25% service organization fee. Series B shares have a 5.00% maximum deferred
sales charge and are subject to an annual 0.25% service organization fee and a
0.75% 12b-1 fee. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
TOP 5 EQUITY HOLDINGS 4/30/99
- ------------------------------------
TYCO INTERNATIONAL, LTD 1.8%
ALLTEL CORPORATION 1.7%
BANK OF NEW YORK COMPANY, INC. 1.6%
CBS CORPORATION 1.5%
WELLS FARGO COMPANY, INC. 1.3%
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/99
- ------------------------------------
$49,349,005
- ------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
- --------------------------------------------------------------------------------
BALANCED GROWTH FUND
- --------------------------------------------------------------------------------
Firstar Balanced Growth Fund seeks capital appreciation combined with reasonable
income by investing in bonds. Typically, the Fund will invest 60% of assets in
common stocks of large-, medium-, and small-sized companies, with the balance
invested in high quality bonds and money markets. As of April 30, 1999, the Fund
consisted of 60% in common stocks, 35% in bonds, and 5% in money markets. The
weighted average market capitalization of the common stocks was $1.6 billion,
considerably less than the $97.2 billion average market capitalization of the
Standard & Poor's 500 stock index. Bond holdings within the portfolio had a
weighted average duration of 5.5 years, matching the duration of the Lehman
Government/Corporate Bond Index. The yield on the total portfolio on April 30
was 1.9%. For the six months ended April 30, 1999, the Firstar Balanced Growth
Fund returned +6.8% (6.6% retail no-load), compared with the return of 12.8% for
the Lipper Balanced Fund median.
The Fund's fiscal year began with plunging interest rates, falling stock
markets, and central bank concerns about worldwide deflationary forces. By the
end of April, stock markets had recovered, interest rates had climbed (from
4.75% on the 30-year U.S. Treasury bond to close to 6%), and the threat of
deflationary forces had given way to concerns that inflation was again
potentially posing a threat. Large-company stock performance was again the
leader, with the S&P 500 Index of large stocks earning 22.3% while the small
company S&P SmallCap 600 returning only +9.0%. Because the Fund is invested in a
broadly diversified mix of common stocks, the return lagged those balanced funds
that invest exclusively in large stocks. This has hurt returns over the last
five years, but will prove beneficial when small- and medium-sized companies
show stronger relative performance.
During the first six months, the Fund had significant concentrations in the
market sectors of consumer cyclicals, finance, and technology. The Fund had
investments in most of the large, high quality technology stocks that have
captured investor's attention with spectacular gains. Microsoft, Lucent
Technologies and Cisco Systems were all strong performers during the period.
Unfortunately, another large holding, Network Associates, was the worst
performing stock in the portfolio. Our lower-than-market commitment in the
winning large stocks and some poor performing medium-sized stocks put the
portfolio's technology returns behind the market. Finance stocks were varied in
their performance. Charles Schwab scored spectacular gains as Internet mania
drove the stock higher, but the Fund did not own other large brokers and money-
center banks that were important to the S&P Index return. Finally, consumer
stocks were good contributors to portfolio performance as the strong economy
buoyed consumer spending patterns. See page 43 for a complete listing of
portfolio holdings.
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. Our careful, research-intensive
process of selecting investment-grade corporate issues, mortgages and asset-
backed securities gives the Fund a high-quality focus. Nearly three-quarters
(60%) of the fixed-income portion of the Fund is invested in obligations rated
Aaa/AAA or higher. Among corporate bonds, we have a preference for finance,
banking and brokerage issues along with dollar-denominated international
("Yankee") securities. We think these sectors represent exceptional value in the
current environment. Since the Fund's inception in 1992, we have adhered to the
same disciplined management approach. Although the past seven years have brought
us more volatility in the fixed-income markets than many would have expected,
the hallmark of our fixed-income approach has been our consistent, risk-
controlled approach in all market climates.
While we are obviously disappointed with the returns for the first six months of
the fiscal year, we are encouraged by several facts that suggest that better
relative performance lies ahead. The stock market has been relentless in
rewarding only the largest companies with good price performance, and this trend
is nearing exhaustion, in our opinion. Small company stocks trade at valuations
one-half that of the largest glamour stocks, but investor behavior is focused
only on the expensive area of the market. Mutual fund cash flows are flooding
into those funds that invest exclusively in the large growth companies, marking
public capitulation in an area already having performed. History shows us great
returns are earned by investing in reasonably valued companies where investors
have little interest. Today, that area is the small- and medium-sized area of
the stock market. Firstar Balanced Growth Fund is among the few balanced funds
where these companies are a permanent investment. With good value in our stock
holdings, and bonds yielding 6% in a low-inflation world, we are excited about
the prospects for the Fund in the remainder of the year.
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
Marian E. Zentmyer, CFA, CFP, Chief Equity Investment Officer of Firstar
Investment Research &Management Company, LLC (FIRMCO) and Daniel A. Tranchita,
CFA, Senior Vice President and Senior Portfolio Manager co-manage the Fund,
Marian since June 18, 1996, and Dan since March 1, 1999. Marian has been with
Firstar since 1982 and has 21 years of investment management experience. She
received her BA from Stanford University in 1978. Dan has been with Firstar
since 1989 and has 10 years of investment management experience. He received his
BA in 1987 and his MBA in 1989 from Marquette University. Marian is a Certified
Financial Planner and a Chartered Financial Analyst. Dan is a Chartered
Financial Analyst.
(PHOTO) (PHOTO)
Marian E. Zentmyer, CFA, CFP Daniel A. Tranchita, CFA
<PAGE>
(LOGO) FIRSTAR FUNDS
FIRSTAR BALANCED
GROWTH FUND -
INSTITUTIONAL
----------------
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
10/98 20,260
4/99 21,629
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. Performance shown is for Institutional shares, which
have lower fees and expenses than Series A or Series B shares. If these fees and
expenses were reflected in the chart above, 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, 1999
Fiscal
Year-
To-Date 1 Year 3 Years 5 Years Since Inception
------- ------ ------- ------- ----------------
FIRSTAR BALANCED
GROWTH FUND - INSTITUTIONAL 6.8 2.4 12.1 13.5 11.5 (3/30/92)
FIRSTAR BALANCED
GROWTH FUND - A - NO LOAD 6.6 2.1 11.8 13.2 11.3 (3/30/92)
FIRSTAR BALANCED
GROWTH FUND - A - LOAD<F2> 1.8 (2.5) 10.1 12.2 10.6 (3/30/92)
FIRSTAR BALANCED ]
GROWTH FUND - B - NO LOAD - - - - 1.7 (3/1/99)<F1>
FIRSTAR BALANCED
GROWTH FUND - B - LOAD<F3> - - - - (3.4) (3/1/99)<F1>
LIPPER BALANCED
FUND INDEX<F4> 12.8 11.1 16.9 15.6 13.1 (3/30/92)
S&P 500 STOCK INDEX<F5> 22.3 21.8 29.1 26.9 21.2 (3/30/92)
A = Series A (retail class)
B = Series B (retail class)
<F1> Series B performance for the period March 1, 1999 to April 30, 1999 is not
annualized.
<F2> Reflects maximum sales charge of 4.50%.
<F3> Reflects maximum deferred sales charge of 5.00%.
<F4> 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.
<F5> 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 shares. Effective at the close of business on February 28, 1999,
Firstar Funds began to offer Series B shares. Series A shares have a 4.50%
maximum sales load and are subject to an annual 0.25% service organization fee.
Series A performance prior to January 10, 1995, does not reflect the service
organization fees. Series B shares have a 5.00% maximum deferred sales charge
and are subject to an annual 0.25% service organization fee and an annual 0.75%
12b-1 fee. Performance for all share classes reflects fee waivers in effect. In
the absence of fee waivers, total return would be reduced.
TOP 5 EQUITY HOLDINGS 4/30/99
- ------------------------------------
TYCO INTERNATIONAL LTD. 1.6%
SUNGARD DATA SYSTEMS, INC. 1.2%
DOLLAR GENERAL CORPORATION 1.2%
STATE STREET CORPORATION 1.0%
PROTECTIVE LIFE CORPORATION 1.0%
- ------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/99
- -----------------------------
$265,499,935
- -----------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
- -------------------------------------------------------------------------------
GROWTH AND INCOME FUND
- -------------------------------------------------------------------------------
Firstar Growth and Income Fund seeks both reasonable income and long-term
capital appreciation. In seeking to obtain reasonable income, the Fund has a
requirement that each company included in the portfolio must pay a current
dividend. As of April 30, 1999, the portfolio had a weighted average market
capitalization of $35.5 billion and a dividend yield of 1.4%. This compares with
the Fund's primary benchmark, the Standard & Poor's 500, which had a weighted
average market capitalization of $97.2 billion and a dividend yield of 1.2%. For
the first half of the fiscal year, the Growth and Income Fund returned +14.1%
(+13.9 retail no-load), trailing the S&P 500 +22.3% and the Lipper Growth &
Income Fund average of +17.9%.
Interest rate reductions last October and currently rising interest rates marked
the first six months of the Fund's fiscal year. Worldwide financial stress led
the Federal Reserve to cut the Federal Funds rate three times last fall, setting
off a strong rally in stock prices. This rally was led by large company stocks
and, in particular, technology stocks. The S&P 500 technology sector was
responsible for 33% of the total return of the index, and just six stocks
accounted for 70% of that gain. Of those six, the Fund owned IBM and Lucent
Technologies, but was precluded from owning big winners Microsoft, America
Online, and Cisco Systems because these stocks do not pay a dividend. The Fund's
overall weight in technology was only 6%, well below the index weight of 17% due
to the dividend requirement. This was the primary driver of the poor Fund return
compared to the S&P 500, as technology stocks were the best S&P sector and
returned over 40% for the period. Many of the leading technology companies are
currently very expensive and vulnerable to a change in investor sentiment. Our
consistent approach to technology makes the Fund much less vulnerable to a
downturn. See page 49 for a complete listing of portfolio holdings.
The finance sector was the biggest contributor to Fund performance and was also
the largest weight. Large banks and brokerage firms were leaders within the S&P
500, but the Growth and Income Fund had few of these giants. Leading stocks in
this area for the Fund included long-time holdings Bank of New York, Northern
Trust, and Wells Fargo, as well as new positions in American Express and Marsh &
McLennan Company. Healthcare has long been an area of emphasis for the Fund,
given the favorable demographics of the U.S. population. Drug therapy is far
less costly than hospitalization, and new drug development coupled with direct-
to-consumer marketing is rapidly increasing drug industry volume. This area of
the market, however, was a notable laggard during the period as the S&P
healthcare sector returned only 8.3%. The Fund owned the four leading
contributors to the healthcare sector - Johnson & Johnson, Bristol Myers Squibb,
American Home Products, and Pfizer.
New securities purchased during the period include Alltel, a regional telephone
company that is also a supplier of cellular and other communication services.
Alltel is an understandable business in an area of explosive growth in our
economy. The company had the second largest positive impact on performance in
the portfolio, falling only behind long-time largest holding, Tyco
International. Other large positions taken include: Mattel, a significant
earnings disappointment created an opportunity to buy at a depressed price;
McCormick, a former holding which is a leader in spices and is currently showing
accelerating earnings, and Freddie Mac, a leading mortgage guarantor that has
replaced Fannie Mae. Freddie is growing more rapidly and trades at a valuation
that was not significantly different at the time of the swap.
Going forward, we are confident the euphoria of technology stock investing will
ease. Technology is inherently a volatile area of the market. Firstar Growth and
Income Fund usually suffers in a technology driven market, however, the Fund
recovers by historically achieving outstanding risk/return scores during more
difficult markets. With interest rates rising and the stock market's seasonally
difficult months ahead, our lack of technology stocks will likely help us over
the next several months. The core portfolio holdings are sound, quality
companies executing their business at a high level. Our growth-at-a-reasonable-
price philosophy has achieved outstanding returns in the past, and we look
forward to that philosophy working again.
Conversely, today's economic environment reflects the threat of rising prices
because of continued U.S. strength and indications that other parts of the world
are in a recovery mode. Federal Reserve policy has shifted from accommodative to
having a bias toward higher rates. Simply stated, the favorable background for
common stocks of last fall has given way to a less hospitable environment today.
We appreciate your continued support of Firstar Growth and Income Fund and look
forward to working with you in the future.
PORTFOLIO MANAGER PROFILE
- -------------------------------------------------------------------------------
Marian E. Zentmyer, CFA, CFP, Chief Equity Investment Officer of Firstar
Investment Research & Management Company, LLC (FIRMCO) and Walter Dewey, CFA,
Senior Vice President and Senior Portfolio Manager co-manage the Fund - Marian
since February 22, 1993 and Walter since June 29, 1998. Marian has been with
Firstar since 1982 and has 21 years of investment management experience. She
received her BA from Stanford University in 1978. 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. Marian is a Certified Financial
Planner and a Chartered Financial Analyst. Walter is a Chartered Financial
Analyst.
(PHOTO) (PHOTO)
MARIAN E. ZENTMYER, WALTER DEWEY, CFA
CFA, CFP
<PAGE>
(LOGO) FIRSTAR FUNDS
FIRSTAR GROWTH AND
INCOME FUND -
INSTITUTIONAL
------------------
12/29/89 10,000
10/90 9,304
10/91 11,698
10/92 12,368
10/93 13,596
10/94 13,846
10/95 17,307
10/96 21,963
10/97 28,734
10/98 34,008
4/99 38,790
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. Performance shown is for Institutional
shares, which have lower fees and expenses than Series A or Series B shares. If
these fees and expenses were reflected in the chart above, 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, 1999
Fiscal
Year-To-
Date 1 Year 3 Years 5 Years Since Inception
---- ------ ------- ------- ----------------
FIRSTAR GROWTH
AND INCOME FUND -
INSTITUTIONAL 14.1 9.8 24.5 23.8 15.6 (12/29/89)
FIRSTAR GROWTH
AND INCOME FUND
- A - NO LOAD 13.9 9.5 24.2 23.5 15.5 (12/29/89)
FIRSTAR GROWTH
AND INCOME FUND
- A - LOAD<F2> 8.8 4.5 22.3 22.4 14.9 (12/29/89)
FIRSTAR GROWTH
AND INCOME FUND
- B - NO LOAD - - - - 5.6 (3/1/99)<F1>
FIRSTAR GROWTH
AND INCOME FUND
- B - LOAD<F3> - - - - 0.6 (3/1/99)<F1>
S&P 500 STOCK INDEX<F4> 22.3 21.8 29.1 26.9 18.3 (12/29/89)
A = Series A (retail class)
B = Series B (retail class)
<F1> Series B performance for the period March 1, 1999 to April 30, 1999 is not
annualized.
<F2> Reflects maximum sales charge of 4.50%.
<F3> Reflects maximum deferred sales charge of 5.00%.
<F4> 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 shares. Effective at the close of business on February 28, 1999,
Firstar Funds began to offer Series B shares. Series A shares have a 4.50% maxi
mum sales load and are subject to an annual 0.25% service organization fee.
Series A performance prior to January 10, 1995, does not reflect the service
organization fees. Series B shares have a 5.00% maximum deferred sales charge
and are subject to an annual 0.25% service organization fee and an annual 0.75%
12b-1 fee. Performance for all share classes reflects fee waivers in effect. In
the absence of fee waivers, total return would be reduced.
TOP 5 EQUITY HOLDINGS 4/30/99
- ---------------------------------------------
TYCO INTERNATIONAL, INC. 3.6%
ALLTEL CORPORATION 3.2%
BANK OF NEW YORK COMPANY, INC. 3.2%
INTERPUBLIC GROUP OF COMPANIES, INC. 2.9%
WELLS FARGO COMPANY, INC. 2.4%
- ---------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/99
- -----------------------------
$778,664,347
- -----------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
- --------------------------------------------------------------------------------
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 $90.18 ($90.06 retail no-load) on
April 30, 1999 represents a total return of +22.2% (22.0% retail no-load) for
the first six months of the fiscal year, which was comparable to the S&P 500's
return of +22.3% 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
- --------------------------------------------------------------------------------
Carl J. Smith, Assistant Vice President and Portfolio Manager of Firstar
Investment Research & Management Company, LLC (FIRMCO) has managed the Fund
since January, 1996. Carl has been with Firstar since 1982 and has seven years
of investment management experience. He received his BS in 1994 from Cardinal
Stritch College.
(PHOTO)
CARL J. SMITH
<PAGE>
(LOGO) FIRSTAR FUNDS
FIRSTAR EQUITY
INDEX FUND -
INSTITUTIONAL
---------------
12/29/89 10,000
10/90 8,854
10/91 11,767
10/92 12,889
10/93 14,644
10/94 15,157
10/95 19,101
10/96 23,624
10/97 31,037
10/98 37,843
4/99 46,231
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. Performance shown is for Institutional
shares, which have lower fees and expenses than Series A or Series B shares. If
these fees and expenses were reflected in the chart above, 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, 1999
Fiscal
Year-To-
Date 1 Year 3 Years 5 Years Since Inception
---- ------ ------- ------- ---------------
FIRSTAR EQUITY
INDEX FUND -
INSTITUTIONAL 22.2 21.8 28.7 26.5 17.8(12/29/89)
FIRSTAR EQUITY
INDEX FUND -
A - NO LOAD 22.0 21.5 28.4 26.2 17.7(12/29/89)
FIRSTAR EQUITY
INDEX FUND -
A - LOAD<F2> 16.5 16.0 26.4 25.1 17.1(12/29/89)
FIRSTAR EQUITY
INDEX FUND -
B - NO LOAD - - - - 7.7(3/1/99)<F1>
FIRSTAR EQUITY
INDEX FUND -
B - LOAD<F3> - - - - 2.7(3/1/99)<F1>
S&P 500 STOCK
INDEX<F4> 22.3 21.8 29.1 26.9 18.3(12/29/89)
A = Series A (retail class)
B = Series B (retail class)
<F1> Series B performance for the period March 1, 1999 to April 30, 1999 is not
annualized.
<F2> Reflects maximum sales charge of 4.50%.
<F3> Reflects maximum deferred sales charge of 5.00%.
<F4> 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 shares. Effective at the close of business on February 28, 1999,
Firstar Funds began to offer Series B shares. Series A shares have a 4.50%
maximum sales load and are subject to an annual 0.25% service organization fee.
Series A performance prior to January 10, 1995, does not reflect the service
organization fees. Series B shares have a 5.00% maximum deferred sales charge
and are subject to an annual 0.25% service organization fee and an annual 0.75%
12b-1 fee. Performance for all share classes reflects fee waivers in effect. In
the absence of fee waivers, total return would be reduced.
TOP 5 EQUITY HOLDINGS 4/30/99
- ------------------------------------
MICROSOFT CORPORATION 3.5%
GENERAL ELECTRIC COMPANY 3.0%
WAL-MART STORES, INC. 1.8%
INTEL CORPORATION 1.8%
EXXON CORPORATION 1.7%
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/99
- -----------------------------
$658,633,249
- -----------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
- --------------------------------------------------------------------------------
GROWTH FUND
- --------------------------------------------------------------------------------
Firstar Growth Fund seeks long-term capital appreciation by investing in the
securities of large-sized companies. As of April 30, 1999, the portfolio had a
weighted average market capitalization of $48.9 billion. This compares with the
Fund's primary benchmark, the Standard & Poor's 500, which had a weighted
average market capitalization of $97.2 billion. During the six months ending
April 30, 1999, the Growth Fund returned +16.0% (+15.9% retail no-load),
trailing the S&P 500 +22.3%, and the Lipper Growth Fund average of +23.7%.
Interest rate reductions last October and currently rising interest rates marked
the first six months of the Fund's fiscal year. Worldwide financial stress led
the Federal Reserve to cut the Federal Funds rate three times last fall, setting
off a strong rally in stock prices. This rally was led by large company stocks,
and in particular, technology stocks. The S&P 500 technology sector was
responsible for 33% of the total return of the index, and just six stocks
accounted for 70% of that gain. Of those six, the Fund owned four throughout the
entire period. Microsoft, Cisco Systems, Intel, and Lucent Technologies were all
meaningful contributors to the Fund's return. First Data, the Fund's largest
technology position at the end of the period, returned over 59% during the last
six months. See page 58 for a complete listing of portfolio holdings.
Although the Fund's technology position was equal to the market during the
period and the portfolio had several winning stocks, our technology return
lagged the S&P 500 technology sector. This can be traced to our under-weighted
positions in the leading stocks, and some poor individual stock selection. The
four positive contributors listed above were trading, on average, at 50 times
expected 1999 earnings on April 30. We do not believe prudence dictates having a
substantial portion of the Fund's assets invested in securities with these high
valuations. Ingram Micro and Compuware were two technology companies that were
major disappointments during the period. Both of these securities have been
eliminated from the portfolio. Healthcare was also an area where our security
selection upset our returns. The sector lagged the overall market, and service
companies Lincare and HCR Manor Care were poor performers within the porfolio.
Drug companies Watson Pharmaceuticals, Elan, and Warner Lambert were also poor
performers as investor interests shifted to cyclical companies during April.
The Fund had considerable success in the communications area, with MCI WorldCom
the single largest contributor to return. FDX (Federal Express) also caught the
"Internet bug" and appreciated 56%. Finance stocks were strong performers as
American International Group, AFLAC, and State Street all experienced returns in
excess of 40%. Tyco International continued to reward our confidence as the
Fund's largest holding with a 29% return. Finally, our large commitment to the
consumer was rewarded with Harley Davidson, Lowes, and Costco all substantially
beating the S&P 500.
Of all the Firstar Funds in this report, the Growth Fund is the one managed
product capable of investing in the largest companies without any dividend
restrictions. The first six months of this fiscal year saw the largest companies
continue to dominate the performance of smaller companies. Specifically, the 20
largest companies in the S&P 500 were responsible for 43% of the total return of
the Index during this period. These stocks are currently much more expensive
than the remainder of the market (currently trading at over 52 times estimated
1999 earnings). The Growth Fund owns several of these large companies, but in
lesser quantities than the S&P 500 Index. This helps explain the recent
performance and also communicates our thoughts on the outlook. If the largest
stocks were not owned in large amounts over the last six months, it was very
difficult to beat the market. We will continue to own those large companies that
have strong and predictable earnings growth, but we will tend to own less of
them as their price-to-earnings ratios continue to expand. Additionally, we will
continue to look for value outside of the mega-cap stocks. Currently, our belief
is that the smaller- and medium-sized areas of the market offer a superior
risk/return profile to the larger stocks. New opportunities for the Fund will
come from the remainder of the S&P 500 not trading at full value.
We appreciate your continued support of Firstar Growth Fund.
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
Marian E. Zentmyer, CFA, CFP, Chief Equity Investment Officer of Firstar
Investment Research & Management Company, LLC (FIRMCO) and Walter Dewey, CFA,
Senior Vice President and Senior Portfolio Manager co-manage the Fund - Marian
since June 18, 1996 and Walter since July 7, 1997. Marian has been with Firstar
since 1982 and has 21 years of investment management experience. She received
her BA from Stanford University in 1978. 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. Marian is a Certified Financial Planner
and a Chartered Financial Analyst. Walter is a Chartered Financial Analyst.
(PHOTO) (PHOTO)
MARIAN E. ZENTMYER, WALTER DEWEY, CFA
CFA, CFP
<PAGE>
(LOGO) FIRSTAR FUNDS
FIRSTAR
GROWTH FUND -
INSTITUTIONAL
---------------
12/29/92 10,000
10/93 10,763
10/94 10,813
10/95 12,927
10/96 15,360
10/97 18,671
10/98 22,199
4/99 25,758
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. Performance shown is for Institutional
shares, which have lower fees and expenses than Series A or Series B shares. If
these fees and expenses were reflected in the chart above, 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, 1999
Fiscal
Year-
To-Date 1 Year 3 Years 5 Years Since Inception
------- ------ ------- ------- ---------------
FIRSTAR GROWTH
FUND - INSTITUTIONAL 16.0 12.3 19.9 19.1 16.1 (12/29/92)
FIRSTAR GROWTH
FUND - A - NO LOAD 15.9 12.0 19.6 18.8 15.9 (12/29/92)
FIRSTAR GROWTH
FUND - A - LOAD<F2> 10.7 17.0 17.8 17.7 15.1 (12/29/92)
FIRSTAR GROWTH
FUND - B - NO LOAD - - - - 1.0 (3/1/99)<F1>
FIRSTAR GROWTH
FUND - B - LOAD<F3> - - - - (4.0) (3/1/99)<F1>
S&P 500 STOCK
INDEX<F4> 22.3 21.8 29.1 26.9 22.0 (12/29/92)
A = Series A (retail class)
B = Series B (retail class)
<F1> Series B performance for the period March 1, 1999 to April 30,1999 is not
annualized.
<F2> Reflects maximum sales charge of 4.50%.
<F3> Reflects maximum deferred sales charge of 5.00%
<F4> 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 shares. Effective at the close of business on February 28, 1999,
Firstar Funds began to offer Series B shares. Series A shares have a 4.50%
maximum sales load and are subject to an annual 0.25% service organization fee.
Series A performance prior to January 10, 1995, does not reflect the service
organization fees. Series B shares have a 5.00% maximum deferred sales charge
and are subject to an annual 0.25% service organization fee and an annual 0.75%
12b-1 fee. Performance for all share classes reflects fee waivers in effect. In
the absence of fee waivers, total return would be reduced.
TOP 5 EQUITY HOLDINGS 4/30/99
- ---------------------------------------------
TYCO INTERNATIONAL, INC. 4.6%
STATE STREET CORPORATION 3.0%
SUNGARD DATA SYSTEMS, INC. 3.0%
COSTCO COMPANIES, INC. 2.5%
AMERICAN INTERNATIONAL GROUP, INC. 2.4%
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/99
- -----------------------------
$335,444,867
- -----------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
- --------------------------------------------------------------------------------
SPECIAL GROWTH FUND
- --------------------------------------------------------------------------------
Firstar Special Growth Fund seeks capital appreciation through investments in
medium-sized companies with stock market capitalizations generally between $1
billion to $5 billion. The Fund's weighted average market capitalization is
currently $3.8 billion, right in line with the designated benchmark, the S&P
MidCap 400 Index, which has a weighted average company value of $3.8 billion. In
the first half of fiscal 1999, the Fund performed poorly against the designated
benchmark and the average mid capitalization fund. The market's rotation toward
higher price-to-earnings stocks (due to minimal earnings in the denominator) and
deep value cyclicals did not match up well with our growth-at-a-reasonable price
(GARP) style. As a result, during the first half of the fiscal year, the Fund
had a return of +7.4% (7.2% retail no-load), trailing the S&P Midcap 400 Index
return of +18.9% and the Wilshire Midcap 750 universe return of +15.8%.
The Fund's growth-at-a-reasonable price focus led to overweighted positions in
four sectors: finance, healthcare, consumer cyclicals and technology. The 1.5X
weight in technology stocks (against the S&P MidCap 400) was the primary reason
for underperformance within these sectors. One company in particular, Network
Associates, fell 69% and cost the Fund over 4% of total return. Network
Associates is a leader in the anti-virus and security software markets. They had
stuffed the reseller distribution channel with their software products during
1998, and as a result announced a significant sales and earnings shortfall in
early 1999. Another technology-related company, Tech Data (the second largest
distributor of computers and related items), fell 40% in the six-month period
following Compaq's attempt to mirror Dell Computer's direct distribution model.
By the end of April, it became clear that Compaq's effort had failed as it
announced plans to include Tech Data and others in its new distribution mode. As
a result, Tech Data rose 40% in early May. In other sectors, the Fund continued
to find winners in consumer cyclical retailers and financial services companies.
Dollar General, a consumable basics retailer, rose 47%, thus adding 2% to the
Fund's return. In finance, Charles Schwab rocketed over 100% as the company
became an internet favorite while bellwether mid-capitalization finance
companies like Marshall & Ilsley and MGIC Investment Corporation continued to
outperform their peers. The Fund's healthcare overweight negatively impacted the
portfolio by over 2% relative to the S&P MidCap 400 Index due to large positions
in two hospital operators, Health Management Associates and Universal Health
Services, in addition to pharmacy services company Omnicare. The market's
perception of all three companies was impacted by regulatory changes and the
lack of a flu season in December and January. In April, all three stocks
rebounded nicely following solid earnings reports which eased investors'
concerns. See page 60 for a complete listing of portfolio holdings.
We expect the Fund's holdings to report improving industry trends and solid
company-specific earnings fundamentals in the second half of fiscal year 1999.
The Fund now trades at a price-to-earnings (P/E) discount against the slower
growing S&P MidCap 400 Index. On a weighted average basis, the Fund's
shareholders are getting more than 20% expected earnings growth at a P/E of 20x
and high relative returns on capital. As the year goes on, we believe investors
will focus on the underlying fundamentals of the end market and the company
individual trends to determine P/E ratios, rather than sequential revenue growth
and market hype. A shift such as this should result in relative outperformance
for the Fund's holdings.
Thank you for your continued support.
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, Senior Vice President and Senior Portfolio Manager co-manage the
Fund - Todd since September 1, 1994 and Matt since December 1, 1998. Todd has
been with Firstar since 1992 and has seven 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 six
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 M. KRIEG, CFA, JD MATTHEW D'ATTILIO, CFA
<PAGE>
(LOGO) FIRSTAR FUNDS
FIRSTAR SPECIAL
GROWTH FUND -
INSTITUTIONAL
---------------
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
10/98 30,494
4/99 32,739
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. Performance shown is for Institutional
shares, which have lower fees and expenses than Series A or Series B shares. If
these fees and expenses were reflected in the chart above, 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, 1999
Fiscal
Year-
To-Date 1 Year 3 Years 5 Years Since Inception
------- ------ ------- ------- ----------------
FIRSTAR SPECIAL
GROWTH FUND -
INSTITUTIONAL 7.4 (12.9) 6.5 12.8 13.5 (12/28/89)
FIRSTAR SPECIAL
GROWTH FUND -
A - NO LOAD 7.2 (13.1) 6.2 12.6 13.4 (12/28/89)
FIRSTAR SPECIAL
GROWTH FUND -
A - LOAD<F2> 2.4 (17.0) 4.6 11.6 12.9 (12/28/89)
FIRSTAR SPECIAL
GROWTH FUND -
B - NO LOAD - - - - 6.4 (3/1/99)<F1>
FIRSTAR SPECIAL
GROWTH FUND -
B - LOAD<F3> - - - - 1.4 (3/1/99)
S&P MIDCAP 400
INDEX<F4> 18.9 6.4 20.1 19.8 17.1 (12/28/89)
S&P 500 STOCK
INDEX<F5> 22.3 21.8 29.1 26.9 18.3 (12/28/89)
A = Series A (retail class)
B = Series B (retail class)
<F1> Series B performance for the period March 1,1999 to April 30, 1999 is not
annualized.
<F2> Reflects maximum sales charge of 4.50%.
<F3> Reflects maximum deferred sales charge of 5.00%.
<F4> The S&P MidCap 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.
<F5> 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 shares. Effective at the close of business on February 28, 1999,
Firstar Funds began to offer Series B shares. Series A shares have a 4.50%
maximum sales load and are subject to an annual 0.25% service organization fee.
Series A performance prior to January 10, 1995 does not reflect the service
organization fees. Series B shares have a 5.00% maximum deferred sales charge
and are subject to an annual 0.25% service organization fee and an annual 0.75%
12b-1 fee. Performance for all share classes reflects fee waivers in effect. In
the absence of fee waivers, total return would be reduced.
TOP 5 EQUITY HOLDINGS 4/30/99
- ---------------------------------------------
DOLLAR GENERAL CORPORATION 5.8%
PROTECTIVE LIFE CORPORATION 5.0%
HEALTH MANAGEMENT ASSOCIATES, INC. 4.5%
OMNICARE, INC. 4.5%
OFFICE DEPOT, INC. 3.4%
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/99
- -----------------------------
$581,158,909
- -----------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
- --------------------------------------------------------------------------------
EMERGING GROWTH FUND
- --------------------------------------------------------------------------------
Following the Federal Reserve's rate cut at the beginning of Firstar Emerging
Growth Fund's fiscal year, small capitalization stocks rallied from their lows
of October 8, 1998. At first, the rebound was broad-based among small company
stocks, but by January 1999, the market differentiated by favoring deep
cyclicals and mega capitalization stocks. Remarkable +4% real GDP growth in the
fourth and first quarters led the rotation to basic materials and capital goods
stocks. Unfortunately, these areas are typically an insignificant weight in the
Fund's portfolio given their lack of consistent revenue and earnings growth.
During the small capitalization market correction last fall, we took the
opportunity to focus the Fund's holdings in our most consistent companies, given
that all valuations were depressed. Following the recovery we broadened our
exposure to all sectors. For example, Granite Construction and Avondale
Industries were added as growth cyclicals. Granite stands to benefit from a new
highway bill while Avondale is a major Navy shipbuilder. We also added to our
retail position with Williams Sonoma, Whole Foods, Ames Department Stores and
Ethan Allen. We believe retail will remain a good sector based on high consumer
confidence, record consumer net worth, and rising housing turnover. Significant
mortgage refinancings have increased the size of the average American's
pocketbook in recent years. See page 62 for a complete listing of portfolio
holdings.
National Data Corporation, another holding with a high percentage of recurring
revenues, rose 36% after posting solid earnings results. National Data is a
large credit card processor and a leading healthcare data processor. Bisys
Group, a provider of mutual fund services, jumped 16% after exceeding analysts'
estimates. CDW Computer Centers, a catalog PC company, rose 20% as rumors of a
PC demand slowdown abated.
The Fund's performance lagged that of its peers over the first half of the
fiscal year. The Fund fell -3.9% (-4.1% retail no-load) while the S&P Small Cap
600 Index rose +9.0%. The Russell 2000 increased +15.2%. This poor performance
follows significant relative outperformance in fiscal 1998. The primary reason
for current underperformance is a result of the market's rotation toward deep
value cyclicals and companies without earnings, such as Internet stocks.
With the Fund's holdings selling at a weighted average price-to-earnings ratio
of 20x (equivalent to the S&P Small Cap 600 Index), we are excited about the
potential for the Fund's holdings to see price-to-earnings multiple expansion
given their earnings growth of 25%. This growth is twice that of the S&P Small
Cap 600 Index. We expect many of the larger positions to post better-than-
expected results with improving industry outlooks.
The Fund's top 10 holdings fell, on average, over 10% in the first six months of
the fiscal year, largely on investor perception and the lack of new information.
As the fundamentals of these companies are reported, we expect significant
potential for stock price appreciation in these top 10 holdings, which represent
over 35% of the portfolio. In addition, small capitalization stocks still trade
at a 28% discount to the S&P 500 companies. As large company growth slows,
investors are likely to rotate to faster growing companies such as small
capitalization stocks.
We appreciate your continued confidence in Firstar Emerging Growth Fund and look
forward to working with you in the future.
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, Senior Vice President and Senior Portfolio Manager have co-
managed the Fund since its inception August 15, 1997. Todd has been with Firstar
since 1992 and has seven 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 six 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
<PAGE>
(LOGO) FIRSTAR FUNDS
FIRSTAR EMERGING
GROWTH FUND -
INSTITUTIONAL
---------------
8/15/97 10,000
10/97 10,310
10/98 9,665
4/99 9,276
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. Performance shown is for Institutional shares, which
have lower fees and expenses than Series A or Series B shares. If these fees and
expenses were reflected in the chart above, 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, 1999
Fiscal
Year-To-Date 1 Year Since Inception
------------ ------ ---------------
FIRSTAR EMERGING
GROWTH FUND - INSTITUTIONAL (3.9) (21.1) (4.3) (8/15/97)
FIRSTAR EMERGING
GROWTH FUND - A - NO LOAD (4.1) (21.4) (4.5) (8/15/97)
FIRSTAR EMERGING
GROWTH FUND - A - LOAD<F2> (8.4) (24.9) (7.1) (8/15/97)
FIRSTAR EMERGING
GROWTH FUND - B - NO LOAD - - (4.3) (3/1/99)<F1>
FIRSTAR EMERGING
GROWTH FUND - B - LOAD<F3> - - (9.1) (3/1/99)<F1>
S&P SMALLCAP 600 INDEX<F4> 9.0 (14.3) 1.4 (8/15/97)
WILSHIRE NEXT 1750 INDEX<F5> 16.7 (7.5) 6.7 (8/15/97)
A = Series A (retail class)
B = Series B (retail class)
<F1> Series B performance for the period March 1, 1999 to April 30, 1999 is not
annualized.
<F2> Reflects maximum sales charge of 4.50%.
<F3> Reflects maximum deferred sales charge of 5.00%.
<F4> The S&P SmallCap 600 Index is a capitalization weighted index that measures
the performance of selected U.S. stocks with small market capitalizations.
<F5> 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.
An investment cannot be made directly in an index.
Series A shares have a 4.50% maximum sales load and are subject to an annual
0.25% service organization fee. Series B shares have a 5.00% maximum deferred
sales charge and are subject to an annual 0.25% service organization fee and a
0.75% 12b-1 fee. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
TOP 5 EQUITY HOLDINGS 4/30/99
- ---------------------------------------------
AXCIOM CORPORATION 6.3%
ABRINFORMATION SERVICES, INC. 4.6%
NATIONAL DATA CORPORATION 4.0%
GOODYS FAMILY CLOTHING, INC. 3.6%
ENHANCE FINANCIAL SERVICES GROUP, INC. 3.4%
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/99
- -----------------------------
$151,690,994
- -----------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
- --------------------------------------------------------------------------------
MICROCAP FUND
- --------------------------------------------------------------------------------
October 8, 1998 ended one of the worst periods in microcap investing history.
The last six months, however, have been far kinder to small cap stocks. A surge
in small caps was initially inspired by Federal Reserve interest rate cuts,
easing the credit crunch that had been plaguing the market in the summer and
early fall of 1998. Although the last six months were an improvement for small
cap and microcap stocks, large cap stocks still outperformed as shown by the S&P
500's return of +22.3% versus the Russell 2000's return of +15.2%. The Russell
2000's return over this period was driven primarily by 10 multibillion-dollar
internet companies whose performance contributed 6.5% of the 15.2% overall
return during this period. The Firstar MicroCap Fund, however, significantly
outperformed both of these indices, posting a gain of +26.8% (26.7% retail no-
load) for the first six months of the fiscal year. The outperformance is
primarily attributable to the Fund's focus on high quality companies, which are
typically the first to bounce back from periods of extreme volatility (as we
witnessed during July through October of last year).
Global economic recovery, particularly in the Far East, and a stronger-than-
expected domestic economy kept the overall backdrop for equities quite positive.
This backdrop led to a strong rotation into cyclical and value-oriented names,
with the Morgan Stanley Cyclical Index up 31% over this period, and left small
cap growth stocks in the dust. In addition, internet mania helped push many
internet based companies to very frothy levels. One catalyst that has stimulated
microcaps late in the period is the large number of acquisitions which have
taken place this year versus all of last year (207 deals through early April
versus 162 deals annually this decade). Previously, we stated that if the stock
market won't recognize the value of microcap stocks, then corporate America will
through acquisitions of these companies. Why must they acquire? Two major
reasons: 1) there is tremendous pressure on America's largest corporations to
maintain high growth to justify their high valuations, and 2) the end of the
accounting convention for acquisitions, known as "poolings," which allows
corporations to avoid goodwill amortization that depresses earnings in future
years. Thus, we would expect to see a continued acceleration of the pace of
corporate acquisitions and mergers which should benefit microcap stocks.
Firstar MicroCap Fund's current focus is on several themes including: the
wireless craze, the internet, the convergence of voice, data and video, and the
resurgence of oil and gas commodity prices. One of our biggest winners and a
play on the wireless explosion is Alpha Industries, which manufactures switches
and power amplifiers for wireless phones. Galileo Technology, another large
holding, is a semiconductor designer whose chips find their way into networking
switches which are used to move pockets of data through communication networks.
Lastly, oil and gasoline prices have risen steadily as the oil supply is being
constrained by OPEC voluntarily cutting production, as well as a pick-up in the
global economy. We have therefore bought a number of oil and gas stocks, which
are benefiting from higher commodity prices. See page 64 for a complete listing
of portfolio holdings.
We believe that low valuations, increased levels of mergers and acquisitions,
and low interest rates provide a healthy backdrop for a sustained period of
outperformance by microcap stocks. The only cautionary note we have is in
respect to the Federal Reserve's shift to a tightening bias on interest rates.
Should the Federal Reserve raise rates, the impact on microcap stocks would
likely be unfavorable because microcap stocks tend to have the greatest
sensitivity to interest rate fluctuations of any equity security.
Standard & Poor's recently placed Firstar MicroCap Fund on its Select Fund list,
a designation received by just 21 of the best small-cap growth funds in the
market.<F35> Select Fund status is reserved for funds which have demonstrated
above-average absolute and volatility-adjusted returns relative to funds with
the same investment style. Select Funds must also demonstrate an appropriate
level of management skill and experience, consistency of investment processes,
and depth of the organization.
In summary, we believe that microcap stocks could be in for a sustained period
of outperformance. The Fund is currently open to new investments. Of course,
microcap investing entails greater risk and we remind you of the inherent
volatility this type of fund can present. As such, we appreciate your continued
support of Firstar MicroCap Fund and look forward to providing our shareholders
with the opportunity for attractive returns.
<F35>Performance reflects fee waivers in effect. In the absence of fee waivers,
total performance would be reduced
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
Joseph A. Frohna, CFA, CPA, Senior Vice President and Senior 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
six years of investment management experience. Joe received his BBA from the
University of Wisconsin-Whitewater in 1986 and his MBA from the University of
Michigan in 1994. Joe is a Chartered Financial Analyst and a Certified Public
Accountant.
(PHOTO)
JOSEPH A. FROHNA, CFA, CPA
<PAGE>
(LOGO) FIRSTAR FUNDS
FIRSTAR
MICROCAP FUND -
INSTITUTIONAL
---------------
8/1/95 10,000
10/95 16,393
10/96 17,188
10/97 22,365
10/98 17,555
4/99 22,262
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. Performance shown is for Institutional shares, which
have lower fees and expenses than Series A or Series B shares. If these fees and
expenses were reflected in the chart above, 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, 1999
Fiscal
Year-To-
Date 1 Year 3 Years Since Inception
---- ------ ------- ---------------
FIRSTAR MICROCAP
FUND - INSTITUTIONAL 26.8 (16.2) 12.2 23.8 (8/1/95)
FIRSTAR MICROCAP
FUND - A - NO LOAD 26.7 (16.4) 11.9 23.5 (8/1/95)
FIRSTAR MICROCAP
FUND - A - LOAD<F2> 21.0 (20.2) 10.2 22.0 (8/1/95)
FIRSTAR MICROCAP
FUND - B - NO LOAD - - - 13.8 (3/1/99)<F1>
FIRSTAR MICROCAP
FUND - B - LOAD<F3> - - - 8.8 (3/1/99)<F1>
RUSSELL 2000 INDEX<F4> 15.2 (9.3) 8.9 11.8 (8/1/95)
A = Series A (retail class)
B = Series B (retail class)
<F36> Series B performance for the period March 1, 1999 to April 30, 1999 is not
annualized.
<F37> Reflects maximum sales charge of 4.50%.
<F38> Reflects maximum deferred sales charge of 5.00%.
<F39> 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 have a 4.50% maximum sales load and are subject to an annual
0.25% service organization fee. Series B shares have a 5.00% maximum deferred
sales charge and are subject to an annual 0.25% service organization fee and a
0.75% 12b-1 fee. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
TOP 5 EQUITY HOLDINGS 4/30/99
- ---------------------------------------------
CORNELL CORRECTIONS, INC. 6.1%
TRANSACTION NETWORK SERVICES, INC. 5.6%
ALPHA INDUSTRIES, INC. 4.9%
CAREER EDUCATION CORPORATION 3.5%
CHAMPIONSHIP AUTO RACING TEAMS, INC. 3.2%
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/99
- -----------------------------
$127,554,051
- -----------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
Performance: For the six-month period ending April 30, 1999, the Firstar
International Equity Fund returned 18.5% (18.3% retail no-load). This compares
with 15.4% return for the Morgan Stanley Capital International - Europe,
Australia, New Zealand and the Far East (MSCI EAFE)Index over the same period.
Thus far in 1999, the Firstar International Equity Fund had a return of 15.6%
(15.5% retail no-load). This compares with 5.6% for the MSCI EAFE Index over the
same period. The Firstar International Equity Fund is also a top performer among
its mutual fund peer group based on recent performance.
Investment review: Trends in global equity markets during recent years have led
to a great divergence in performance, primarily favoring "momentum" stocks at
the expense of "value" stocks. In our opinion, a frenzy was created in which
many investors were willing to pay any price for certain "momentum" stocks,
particularly if a stock's name ends in".com." Our disciplined fundamental
investment process has steered us away from such companies in favor of much more
attractively priced stocks with favorable earnings prospects that we believe are
selling at meaningful discounts to their intrinsic values. Many of these stocks
are leaders in their respective industries, but cyclical factors have caused
entire industries to fall out of favor. Similarly, the macro uncertainties in
Asia and certain emerging markets have led to extreme share price weakness early
in 1998, but share prices have begun to recover aggressively. Our efforts to
take advantage of these situations have begun to be rewarded. We continue to
increase our exposure to Japan while making limited changes in Europe. Our
fundamental discipline has been effective over the long-term and we believe the
last six months and year-to-date performance shown is indicative of favorable
investor sentiment toward our value methodology.
Although late 1998 experienced a continuation of the trend in which large-cap
"momentum" stocks led the markets in Europe, it appears that investors have
begun to recognize that fundamentals and valuations do matter. One of the
catalysts that has caused a reversal in this trend could be the possible
bottoming of commodity prices. Commodity prices experienced a precipitous drop
between late 1996 and early 1999. This decline put excessive pressure on
commodity-sensitive stocks, particularly those in the oil, base metals,
chemicals, and paper/forest product industries. We took advantage of this
excessive weakness to buy positions in quality companies that are global leaders
in their respective industries. As oil prices responded to OPEC production cuts
and commodity prices appear to have bottomed, many of these stocks have staged
strong recoveries during 1999.
From a geographical perspective, the portfolio is significantly underweight in
Europe, and overweight in Asia. Within Europe, our emphasis has shifted from
Southern Europe to Northern Europe, including the UK and Scandinavia. The
Japanese exposure has increased to 11% due to share price appreciation and net
purchases of new positions.
We have highlighted the key drivers that have influenced the portfolio during
the last 6 months. Our exposure to commodity-sensitive stocks, emerging market
companies and mid-cap stocks hurt us in 1998, but these same variables have
contributed to our outperformance this year. In addition to these issues, the
portfolio had substantial representation in the telecommunications, building
materials and, selectively, the financial services industries. As of April 30,
1999, the Fund was invested in 107 stocks that are domiciled in 35 countries.
Each of these stocks has passed our rigorous fundamental analysis and they
collectively represent some of the most undervalued companies in the world. We
recognize that recent years have been difficult for disciplined value investors,
but we believe that we are in the early stages of a recovery in which
fundamentals and valuations are re-emerging as the primary determinants of
investment performance. We appreciate your patience and interest in the Firstar
International Equity Fund.
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
James E. Chaney, Chief Investment Officer of Hansberger Global Investors, Inc.
(HGI), the Fund's sub-adviser and John Hock, CFA, Research Analyst and Assistant
Portfolio Manager of HGI and Robert Mazuelos, Research Analyst and Assistant
Portfolio Manager of HGI, have co-managed the Fund since September 2, 1997 (when
the sub-advisory agreement with HGI went into effect). Jim has been with HGI
since 1996 and has 15 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.
(PHOTO) (PHOTO) (PHOTO)
JAMES E. CHANEY JOHN HOCK, CFA ROBERT MAZUELOS
<PAGE>
(LOGO) FIRSTAR FUNDS
FIRSTAR
INTERNATIONAL
EQUITY FUND -
INSTITUTIONAL
----------------
4/28/94 10,000
10/94 9,995
10/95 9,620
10/96 10,410
10/97 9,879
10/98 8,303
4/99 9,835
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. Performance shown is for Institutional shares, which
have lower fees and expenses than Series A or Series B shares. If these fees and
expenses were reflected in the chart above, 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, 1999
Fiscal
Year-To-
Date 1 Year 3 Years 5 Years Since Inception
---- ------ ------- ------- ---------------
FIRSTAR INTERNATIONAL
EQUITY FUND -
INSTITUTIONAL 18.5 (7.7) (3.1) (0.3) (0.3) (4/28/94)
FIRSTAR INTERNATIONAL
EQUITY FUND - A -
NO LOAD 18.3 (8.0) (3.3) (0.5) (0.5) (4/28/94)
FIRSTAR INTERNATIONAL
EQUITY FUND - A -
LOAD<F2> 12.9 (12.1) (4.8) (1.4) (1.5) (4/28/94)
FIRSTAR INTERNATIONAL
EQUITY FUND - B -
NO LOAD - - - - 19.7 (3/1/99)<F1>
FIRSTAR INTERNATIONAL
EQUITY FUND - B -
LOAD<F3> - - - - 14.7 (3/1/99)<F1>
EAFE INDEX<F4> 15.3 9.5 8.9 8.7 8.7 (4/28/94)
A = Series A (retail class)
B = Series B (retail class)
<F1> Series B performance for the period March 1, 1999 to April 30, 1999 is not
annualized.
<F2> Reflects maximum sales charge of 4.50%.
<F3> Reflects maximum deferred sales charge of 5.00%.
<F4> The Morgan Stanley Capital International Europe, Australia and Far East
Index ("MSCI/EAFE") is an unmanaged index composed
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 shares. Effective at the close of business on February 28, 1999,
Firstar Funds began to offer Series B shares. Series A shares have a 4.50%
maximum sales load and are subject to an annual 0.25% service organization fee.
Series A performance prior to January 10, 1995, does not reflect the service
organization fees. Series B shares have a 5.00% maximum deferred sales charge
and are subject to an annual 0.25% service organization fee and an annual 0.75%
12b-1 fee. Performance for all share classes reflects fee waivers in effect. In
the absence of fee waivers, total return would be reduced.
TOP 5 COUNTRIES 4/30/99
- ------------------------------------
GREAT BRITAIN 10.9%
JAPAN 10.8%
HONG KONG 7.7%
SWEDEN 4.4%
FRANCE 4.3%
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 4/30/99
- -----------------------------
$50,999,970
- -----------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF ASSETS AND LIABILITIES
(Amounts in thousands, except per share data)
April 30, 1999
(Unaudited) BALANCED BALANCED GROWTH
INCOME GROWTH AND INCOME
FUND FUND FUND
---- ---- ----
ASSETS:
Investments, at value
(cost $43,390, $218,914,
$524,404, $324,523,
$233,595, $477,282, $156,549,
$113,755, $51,624, respectively) $ 48,640 $264,573 $783,055
Cash - 338 -
Income receivable 390 1,549 997
Capital shares sold 135 175 742
Receivable for securities sold 342 1,214 5,828
Other assets 71 37 57
------- ------- -------
Total Assets 49,578 267,886 790,679
------- ------- -------
LIABILITIES:
Payable for securities purchased 136 1,964 10,299
Capital shares redeemed 34 164 1,002
Payable to affiliates 41 232 652
Accrued expenses and other liabilities 18 26 62
------- ------- -------
Total Liabilities 229 2,386 12,015
------- ------- -------
NET ASSETS $ 49,349 $265,500 $778,664
======= ======= =======
NET ASSETS CONSIST OF:
Capital stock $ 41,200 $211,234 $497,370
Undistributed net
investment income (loss) 116 373 686
Undistributed accumulated
net realized gains (losses)
on Investments 2,783 8,234 21,957
Unrealized net appreciation
(depreciation) on:
Investments 5,250 45,659 258,651
Futures contracts - - -
Foreign currency - - -
------- ------- -------
Total Net Assets $ 49,349 $265,500 $778,664
======= ======= =======
SERIES A:
Net assets $ 12,867 $ 60,688 $210,946
Shares authorized
($.0001 par value) 100,000 500,000 500,000
Shares issued and outstanding 1,151 1,983 4,480
Net asset value and
redemption price per share <F1> $ 11.18 $ 30.60 $ 47.09
------- ------- -------
Maximum offering price per share <F1> $ 11.71 $ 32.04 $ 49.31
======= ======= =======
SERIES B:
Net assets $ 349 $ 226 $ 667
Shares authorized ($.0001 par value) 100,000 500,000 500,000
Shares issued and outstanding 31 7 14
Net asset value, redemption price
and offering price per share <F1> $ 11.23 $ 30.75 $ 47.14
===== ===== =====
SERIES INSTITUTIONAL:
Net assets $ 36,133 $204,586 $567,051
Shares authorized ($.0001 par value) 100,000 500,000 500,000
Shares issued and outstanding 3,227 6,676 12,023
Net asset value, redemption price
and offering price per share <F1> $ 11.20 $ 30.65 $ 47.16
===== ===== =====
<F1> Amounts may not recalculate due to rounding.
See notes to the financial statements.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
<TABLE>
<CAPTION>
EQUITY SPECIAL EMERGING INTERNATIONAL
INDEX GROWTH GROWTH GROWTH MICROCAP EQUITY
FUND FUND FUND FUND FUND FUND
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
(Amounts in thousands, except per share data)
April 30, 1999
(Unaudited)
ASSETS:
Investments, at value
(cost $43,390, $218,914,
$524,404, $324,523,
$233,595, $477,282, $156,549,
$113,755, $51,624, respectively) $657,519 $335,977 $576,880 $154,959 $128,460 $49,821
Cash - - - - - 337
Income receivable 640 127 232 64 24 424
Capital shares sold 1,739 558 382 167 58 5
Receivable for securities sold - - 10,867 916 2,993 738
Other assets 95 35 37 49 31 22
------- ------- ------- ------- ------- -------
Total Assets 659,993 336,697 588,398 156,155 131,566 51,347
------- ------- ------- ------- ------- -------
LIABILITIES:
Payable for securities purchased - 804 5,848 3,966 3,105 -
Capital shares redeemed 728 135 791 358 693 30
Payable to affiliates 251 290 547 126 193 75
Accrued expenses and other liabilities 381 23 53 14 21 242
------- ------- ------- ------- ------- -------
Total Liabilities 1,360 1,252 7,239 4,464 4,012 347
------- ------- ------- ------- ------- -------
NET ASSETS $658,633 $335,445 $581,159 $151,691 $127,554 $ 51,000
======= ======= ======= ======= ======= =======
NET ASSETS CONSIST OF:
Capital stock $310,328 $230,832 $399,928 $162,990 $ 96,679 $ 61,782
Undistributed net
investment income (loss) 520 31 (412) (65) (560) 136
Undistributed accumulated
net realized gains (losses)
on Investments 13,903 2,200 82,045 (9,644) 16,730 (9,113)
Unrealized net appreciation
(depreciation) on:
Investments 332,996 102,382 99,598 (1,590) 14,705 (1,803)
Futures contracts 886 - - - - -
Foreign currency - - - - - (2)
------- ------- ------- ------- ------- -------
Total Net Assets $658,633 $335,445 $581,159 $151,691 $127,554 $ 51,000
======= ======= ======= ======= ======= =======
Series A:
Net assets $141,733 $ 48,485 $123,596 $ 11,954 $ 16,606 $ 6,184
Shares authorized
($.0001 par value) 500,000 500,000 500,000 100,000 50,000 500,000
Shares issued and outstanding 1,574 1,299 3,089 1,305 1,061 351
Net asset value and
redemption price per share <F1> $ 90.06 $ 37.32 $ 40.01 $ 9.16 $ 15.64 $ 17.61
------- ------- ------- ------- ------- -------
Maximum offering price per share <F1> $ 94.30 $39.08 $ 41.90 $ 9.59 $ 16.38 $ 18.44
======= ======= ======= ======= ======= =======
Series B:
Net assets $ 1,164 $ 311 $ 135 $ 40 $ 16 $ 6
Shares authorized ($.0001 par value) 500,000 500,000 500,000 100,000 50,000 500,000
Shares issued and outstanding 13 9 3 4 1 1
Net asset value, redemption price
and offering price per share <F1> $ 90.17 $ 37.29 $ 39.98 $ 9.16 $ 15.64 $ 17.61
======= ======= ======= ======= ======= =======
Series Institutional:
Net assets $515,736 $286,649 $457,428 $139,697 $110,932 $ 44,810
Shares authorized ($.0001 par value) 500,000 500,000 500,000 100,000 50,000 500,000
Shares issued and outstanding 5,719 7,599 11,293 15,208 7,015 2,529
Net asset value, redemption price
and offering price per share <F1> $ 90.18 $ 37.72 $ 40.51 $ 9.19 $ 15.80 $ 17.72
===== ===== ===== ======= ======= =======
<FN>
<F1> Amounts may not recalculate due to rounding.
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF CHANGES IN NET ASSETS
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
BALANCED INCOME FUND BALANCED GROWTH FUND GROWTH AND INCOME FUND
Six months Dec. 1, 1997 Six months Year Six months Year
ended <F1> through ended ended ended ended
Apr. 30, 1999 Oct. 31, Apr. 30 1999 Oct. 31, Apr. 30, 1999 Oct. 31,
(Unaudited) 1998 (Unaudited) 1998 (Unaudited) 1998
----------- ---- ------------ ---- ---------- -----
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 651 $ 962 $ 2,353 $ 4,908 $ 3,640 $ 6,241
Net realized gain (loss) on:
Investments 86 (227) 9,088 7,539 22,924 48,714
Foreign currency - - - - - -
Net change in unrealized
appreciation (depreciation) on:
Investments 2,486 2,764 5,254 5,444 68,911 37,014
Foreign currency - - - - - -
Net increase (decrease) in net
assets resulting ------ ----- ------ ------ ------ ------
from operations 3,223 3,499 16,695 17,891 95,475 91,969
------ ----- ------ ------ ------ ------
CAPITAL SHARE TRANSACTIONS:
Shares sold 10,751 47,732 36,254 82,729 112,819 216,717
Shares issued to owners in
reinvestment of dividends 968 194 10,156 21,725 47,247 20,917
Shares redeemed (7,768) (5,929) (35,037) (60,901) (88,281) (135,217)
Net increase (decrease) in
net assets as a result of ------ ------- ------ ------ ------- -------
capital share transactions 3,951 41,997 11,373 43,553 71,785 102,417
------ ----- ------ ------ ------ -------
DISTRIBUTIONS TO SERIES A SHAREOWNERS:
From net investment income (155) (128) (501) (1,052) (915) (1,343)
From net realized gains (449) - (1,908) (3,620) (13,914) (4,638)
------ ----- ------ ------ ------ ------
(604) (128) (2,409) (4,672) (14,829) (5,981)
------ ----- ------ ------ ------ ------
DISTRIBUTIONS TO SERIES B SHAREOWNERS:
From net investment income - - - - - -
From net realized gains - - - - - -
------ ----- ------ ------ ------ ------
- - - - - -
------ ----- ------ ------ ------ ------
DISTRIBUTIONS TO SERIES INSTITUTIONAL
SHAREOWNERS:
From net investment income (502) (718) (1,851) (3,864) (2,949) (4,463)
From net realized gains (1,369) - (6,088) (13,536) (35,752) (13,098)
------ ----- ------ ------- -------- --------
(1,871) (718) (7,939) (17,400) (38,701) (17,561)
------ ----- ------ ------- -------- --------
TOTAL INCREASE (DECREASE) IN NET ASSETS 4,699 44,650 17,720 39,372 113,730 170,844
NET ASSETS:
Beginning of period 44,650 - 247,780 208,408 664,934 494,090
------ ----- ------- ------- ------- -------
End of period (including
undistributed net investment
income (loss) of $116, $122,
$373, $373, $686, $910, $520,
$621, $31, $234, $(412), $(2),
$(65) and $(71), respectively) $49,349 $44,650 $265,500 $247,780 $778,664 $664,934
====== ====== ======= ======= ======= =======
<FN>
<F1> Commencement of operations.
</TABLE>
<PAGE> (LOGO) FIRSTAR FUNDS
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
(Amounts in thousands)
<TABLE>
<CAPTION>
EQUITY INDEX FUND GROWTH FUND SPECIAL GROWTH FUND EMERGING GROWTH FUND
Six months Year Six months Year Six months Year Six months Year
ended ended ended ended ended ended ended ended
Apr. 30, Oct. 31, Apr. 30, Oct. 31, Apr. 30, Oct. 31, Apr. 30, Oct.31,
1999 1998 1999 1998 1999 1998 1999 1998
---- ---- ---- ---- ---- ---- ---- ----
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 3,336 $ 6,945 $ 63 $ 356 $ (409) $ (2,626) $ (38) $ 303
Net realized gain (loss) on:
Investments 16,522 1,439 3,473 26,680 84,177 3,773 (3,112) (6,752)
Foreign currency - - - - - - - -
Net change in unrealized
appreciation (depreciation) on:
Investments 99,443 81,804 34,552 10,510 (40,057) (33,543) (3,339) 875
Foreign currency - - - - - - - -
Net increase (decrease) in
assets resulting ------- ------ ------ ------ ------ -------- ------- -------
from operations 119,301 90,188 38,088 37,546 43,711 (32,396) (6,489) (5,574)
------- ------ ------ ------ ------ -------- ------- -------
CAPITAL SHARE TRANSACTIONS:
Shares sold 164,000 184,708 99,019 68,655 107,696 149,421 105,903 40,444
Shares issued to owners in
reinvestment of dividends 6,299 12,729 22,498 23,938 4,422 64,516 71 352
Shares redeemed (186,949) (103,374) (32,141) (70,468) (170,816) (225,403) (20,980) (14,898)
Net increase (decrease) in
net assets as a result of ------- ------ ------ ------ ------ -------- ------- -------
capital share transactions (16,650) 94,063 89,376 22,125 (58,698) (11,466) 84,994 25,898
------- ------ ------ ------ ------ -------- ------- -------
Distributions to Series A Shareowners:
From net investment income (628) (1,155) (28) (16) - - (15) (12)
From net realized gains (710) (1,399) (4,421) (3,671) (1,086) (14,736) - (33)
------- ------ ------ ------ ------ -------- ------- -------
(1,338) (2,554) (4,449) (3,687) (1,086) (14,736) (15) (45)
------- ------ ------ ------ ------ -------- ------- -------
Distributions to Series B Shareowners:
From net investment income - - - - - - - -
From net realized gains - - - - - - - -
------- ------ ------ ------ ------ -------- ------- -------
- - - - - - - -
------- ------ ------ ------ ------ -------- ------- -------
Distributions to Series Institutional
Shareowners:
From net investment income (2,808) (5,682) (237) (185) - - (83) (118)
From net realized gains (2,753) (5,759) (23,344) (26,481) (3,772) (56,822) - (276)
------- ------ ------ ------ ------ -------- ------- -------
(5,561) (11,441) (23,581) (26,666) (3,772) (56,822) (83) (394)
------- ------ ------ ------ ------ -------- ------- -------
TOTAL INCREASE (DECREASE) IN NET ASSETS 95,752 170,256 99,434 29,318 (19,845) (115,420) 78,407 19,885
NET ASSETS:
Beginning of period 562,881 392,625 236,011 206,693 601,004 716,424 73,284 53,399
End of period (including
undistributed net investment
income (loss) of $116, $122,
$373, $373, $686, $910, $520,
$621, $31, $234, $(412), $(2),
$(65) and $(71), respectively) $658,633 $562,881 $335,445 $236,011 $581,159 $601,004 $151,691 $73,284
<FN>
<F1> Commencement of operations.
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
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
Apr. 30, Oct. 31, Apr. 30, Oct. 31,
1999 1998 1999 1998
---- ---- ---- ----
(Unaudited) (Unaudited)
OPERATIONS:
Net investment income (loss) $ (557) $ (1,595) $ 159 $ 855
Net realized gain (loss) on:
Investments 17,309 (275) (3,815) (5,124)
Foreign currency - - (107) (23)
Net change in unrealized
appreciation (depreciation) on:
Investments 10,122 (21,884) 11,777 (7,356)
------- ------- ------- -------
Foreign currency - - (7) 5
Net increase (decrease) in net
assets resulting from
operations 26,874 (23,754) 8,007 (11,643)
------- ------- ------- -------
CAPITAL SHARE TRANSACTIONS:
Shares sold 35,987 3,237 5,708 16,655
Shares issued to owners in
reinvestment of dividends 265 9,448 691 1,247
Shares redeemed (20,409) (13,035) (13,673) (17,246)
------- ------- ------- -------
Net increase (decrease) in
net assets as a result of
capital share transactions 15,843 (350) (7,274) 656
------- ------- ------- -------
DISTRIBUTIONS TO SERIES A SHAREOWNERS:
From net investment income - - (122) (31)
From net realized gains (44) (1,599) - (135)
------- ------- ------- -------
(44) (1,599) (122) (166)
------- ------- ------- -------
DISTRIBUTIONS TO SERIES B SHAREOWNERS:
From net investment income - - - -
From net realized gains - - - -
------- ------- ------- -------
- - - -
------- ------- ------- -------
DISTRIBUTIONS TO SERIES INSTITUTIONAL
SHAREOWNERS:
From net investment income - - (767) (277)
From net realized gains (234) (9,815) - (1,122)
------- ------- ------- -------
(234) (9,815) (767) (1,399)
------- ------- ------- -------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 42,439 (35,518) (156) (12,552)
NET ASSETS:
Beginning of period 85,115 120,633 51,156 63,708
------- ------- ------- -------
End of period (including
undistributed net investment
income (loss) of $(560),
$(3), $136 and $866,
respectively) $127,554 $ 85,115 $ 51,000 $ 51,156
======== ======== ======== ========
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF OPERATIONS
(Amounts in thousands)
Period Ended April 30, 1999
(Unaudited) BALANCED BALANCED GROWTH EQUITY
INCOME GROWTH AND INCOME INDEX GROWTH
FUND FUND FUND FUND FUND
---- ---- ---- ---- ----
INVESTMENT INCOME:
Dividend income:
Domestic $ 189 $ 325 $ 5,693 $ 3,847 $ 602
Foreign - - - - -
Interest income:
Domestic 687 3,278 1,527 682 878
Foreign - - - - -
Other income - 3 - 26 -
------ ------ ------ ------ ------
876 3,606 7,220 4,555 1,480
------ ------ ------ ------ ------
EXPENSES:
Investment advisory fees 176 988 2,757 766 1,115
Administration fees 25 141 394 328 159
Shareowner servicing
and accounting costs 32 75 106 84 47
Service organization
fees - Series A 15 77 255 159 56
Custody fees 7 45 59 51 21
Federal and state
registration fees 13 17 23 25 15
Professional fees 16 19 18 18 18
Reports to shareowners 15 19 43 26 10
Amortization of
organization costs 5 - - - -
Directors' fees
and expenses 4 4 4 4 4
Other 1 3 9 8 3
------ ------ ------ ------ ------
Total expenses
before waiver 309 1,388 3,668 1,469 1,448
Less: Waiver of
expenses (84) (135) (88) (250) (31)
------ ------ ------ ------ ------
Net Expenses 225 1,253 3,580 1,219 1,417
------ ------ ------ ------ ------
NET INVESTMENT INCOME 651 2,353 3,640 3,336 63
------ ------ ------ ------ ------
REALIZED AND UNREALIZED GAIN:
Net realized gain on:
Investments 86 9,088 22,924 16,522 3,473
Foreign currency - - - - -
Net change in unrealized
appreciation on:
Investments 2,486 5,254 68,911 99,443 34,552
Foreign currency - - - - -
------ ------ ------ ------ ------
Net gain on
investments and
foreign currency 2,572 14,342 91,835 115,965 38,025
------ ------ ------ ------ ------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS$ 3,223 $16,695 $95,475 $119,301 $38,088
====== ======= ======= ======== =======
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF OPERATIONS
(Amounts in thousands)
Period Ended April 30, 1999
(Unaudited) SPECIAL EMERGING INTERNATIONAL
GROWTH GROWTH MICROCAP EQUITY
FUND FUND FUND FUND
---- ---- ---- ----
INVESTMENT INCOME:
Dividend income:
Domestic $ 1,010 $ 168 $ 182 -
Foreign(net of
withholding taxes
of $52) - - - $ 518
Interest income:
Domestic 1,467 316 251 -
Foreign - - - 7
Other income 41 - - -
------ ------ ------ ------
2,518 484 433 525
------ ------ ------ ------
EXPENSES:
Investment advisory fees 2,251 369 819 321
Administration fees 322 53 59 25
Shareowner servicing
and accounting costs 119 38 39 34
Service organization
fees - Series A 166 17 20 8
Custody fees 53 26 16 8
Federal and state registration
fees 11 20 14 12
Professional fees 17 19 21 21
Reports to shareowners 54 8 7 4
Amortization of organization
costs - 2 2 3
Directors' fees and expenses 4 4 4 4
Other 9 1 3 1
------ ------ ------ ------
Total expenses before waiver 3,006 557 1,004 441
Less: Waiver of expenses (79) (35) (14) (75)
------ ------ ------ ------
Net Expenses 2,927 522 990 366
------ ------ ------ ------
NET INVESTMENT INCOME (LOSS) (409) (38) (557) 159
------ ------ ------ ------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments 84,177 (3,112) 17,309 (3,815)
Foreign currency - - - (107)
Net change in unrealized
appreciation
(depreciation) on:
Investments (40,057) (3,339) 10,122 11,777
Foreign currency - - - (7)
------ ------ ------ ------
Net gain (loss) on
investments and
foreign currency 44,120 (6,451) 27,431 7,848
------ ------ ------ ------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS $43,711 $(6,489) $26,874 $ 8,007
======= ======= ======= ======
See notes to the financial statements.
<PAGE>
This page intentionally left blank.
<PAGE>
FINANCIAL HIGHLIGHTS
INSTITUTIONAL
EQUITY FUNDS
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
----------------------------------- -------------------------------------
Net Realized
Net and Unrealized Total Dividends Distributions
Asset Value, Net Gains or From from Net From
Beginning Investment (Losses) on Investment Investment Capital Total
of Period Income Securities Operations Income Gains Distributions
<C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
BALANCED INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
Dec. 1, 1997<F1> through Oct. 31, 1998 $10.00 $0.30 $0.96 $1.26 $(0.25) - $(0.25)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 11.01 0.19 0.59 0.78 (0.15) $(0.44) (0.59)
- -----------------------------------------------------------------------------------------------------------------------------------
BALANCED GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 22.76 0.44 (0.66) (0.22) (0.44) - (0.44)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 22.10 0.53 3.78 4.31 (0.51) - (0.51)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 25.90 0.55 2.62 3.17 (0.53) (0.55) (1.08)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 27.99 0.66 4.20 4.86 (0.66) (1.68) (2.34)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 30.51 0.62 1.86 2.48 (0.64) (2.50) (3.14)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 29.85 0.28 1.75 2.03 (0.28) (0.95) (1.23)
- -----------------------------------------------------------------------------------------------------------------------------------
GRWTH AND INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 23.70 0.43 (0.03) 0.40 (0.42) (0.59) (1.01)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 23.09 0.42 5.14 5.56 (0.42) (0.60) (1.02)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 27.63 0.50 6.61 7.11 (0.47) (1.19) (1.66)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 33.08 0.46 8.94 9.40 (0.47) (2.73) (3.20)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 39.28 0.47 6.55 7.02 (0.45) (1.39) (1.84)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 44.46 0.24 5.93 6.17 (0.26) (3.21) (3.47)
- -----------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 33.04 0.77 0.35 1.12 (0.75) - (0.75)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 33.41 0.76 7.71 8.47 (0.74) (0.06) (0.80)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 41.08 0.91 8.68 9.59 (0.89) (0.35) (1.24)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 49.43 0.95 14.33 15.28 (0.94) (0.61) (1.55)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 63.16 1.02 12.59 13.61 (1.00) (1.11) (2.11)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 74.66 0.49 15.99 16.48 (0.49) (0.47) (0.96)
- -----------------------------------------------------------------------------------------------------------------------------------
GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 21.40 0.06 0.06 0.12 (0.05) - (0.05)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 21.47 0.03 4.16 4.19 (0.05) - (0.05)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 25.61 (0.01) 4.83 4.82 - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 30.43 0.04 6.31 6.35 - (1.30) (1.30)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 35.48 0.07 5.70 5.77 (0.03) (5.17) (5.20)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 36.05 0.01 5.74 5.75 (0.04) (4.04) (4.08)
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Supplemental Data and Ratios
------------------------------------------------
Ratio
Ratio of Net
of Net Investment
Net Assets, Expenses Income
Net Asset End of to Average to Average Portfolio
Value, End Total Period Net Net Turnover
of Period Return<F2> (000s) Assets<F3> Assets<F3> Rate<F2>
<C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
BALANCED INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
Dec. 1, 1997<F1> through Oct. 31, 1998 $11.01 12.70% $34,036 0.75%<F4> 3.07%<F4> 58.33%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 11.20 7.21% 36,133 0.89%<F4> 2.83%<F4> 11.79%
- -----------------------------------------------------------------------------------------------------------------------------------
BALANCED GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 22.10 (0.93)% 94,657 0.75%<F5> 2.03%<F5> 59.77%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 25.90 19.79% 104,552 0.75%<F5> 2.24%<F5> 61.87%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 27.99 12.56% 129,415 0.75%<F5> 2.05%<F5> 63.91%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 30.51 18.39% 164,382 0.75%<F5> 2.31%<F5> 69.90%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 29.85 8.83% 188,123 0.75%<F5> 2.16%<F5> 56.44%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 30.65 6.76% 204,586 0.89%<F5> 1.84%<F5> 33.47%
- -----------------------------------------------------------------------------------------------------------------------------------
GRWTH AND INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 23.09 1.84% 164,053 0.90%<F6> 1.89%<F6> 56.85%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 27.63 25.00% 162,752 0.90%<F6> 1.70%<F6> 47.85%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 33.08 26.90% 226,888 0.90%<F6> 1.67%<F6> 51.37%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 39.28 30.83% 366,020 0.87%<F6> 1.34%<F6> 31.36%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 44.46 18.35% 474,603 0.87%<F6> 1.11%<F6> 48.56%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 47.16 14.06% 567,051 0.90%<F6> 1.06%<F6> 13.36%
- -----------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 33.41 3.51% 107,563 0.50%<F7> 2.38%<F7> 13.28%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 41.08 26.02% 138,106 0.46%<F7> 2.34%<F7> 4.61%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 49.43 23.68% 212,072 0.41%<F7> 2.01%<F7> 7.48%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 63.16 31.38% 315,759 0.38%<F7> 1.66%<F7> 9.81%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 74.66 21.93% 452,752 0.33%<F7> 1.43%<F7> 2.91%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 90.18 22.16% 515,736 0.35%<F7> 1.13%<F7> 6.88%
- -----------------------------------------------------------------------------------------------------------------------------------
GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 21.47 0.56% 113,197 0.88%<F8> 0.30%<F8> 33.24%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 25.61 19.55% 134,428 0.90%<F8> 0.13%<F8> 49.84%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 30.43 18.82% 155,293 0.90%<F8> (0.04)%<F8> 56.75%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 35.48 21.56% 181,650 0.89%<F8> 0.09%<F8> 62.09%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 36.05 18.89% 197,798 0.89%<F8> 0.20%<F8> 51.82%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 37.72 16.03% 286,649 0.91%<F8> 0.08%<F8> 28.89%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> Not annualized for the period ended October 31, 1998 for the Balanced
Income, for the period ended October 31, 1997 for the Emerging Growth Fund,
for the period ended June 30, 1996 and October 31, 1996 for the MicroCap
Fund for the period ended October 31, 1994 for the International Equity
Fund, and for the period ended April 30, 1999 for all funds.
<F3> Annualized for the period ended October 31, 1998 for the Balanced Income,
for the period ended October 31, 1997 for the Emerging Growth Fund, for the
period ended June 30, 1996 and October 31, 1996 for the MicroCap Fund for
the period ended October 31, 1994 for the International Equity Fund, and
for the period ended April 30, 1999 for all funds.
<F4> Without fees waived, ratios of net expenses to average net assets for the
periods ended April 30, 1999 and October 31, 1998 would have been 1.25%,
1.38%, respectively; and ratio of net investment income to average net
assets for the period ended April 30, 1999 and October 31, 1998 would have
been 2.47%, 2.44%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and for the fiscal years ended October 31,
1998, 1997, 1996, 1995, 1994 would have been 0.99%, 0.99%, 1.00%, 1.03%,
1.06%, 1.05%, respectively; and ratios of net investment income to average
net assets for the period ended April 30, 1999 and for the fiscal years
ended October 31, 1998, 1997, 1996, 1995, 1994 would have been 1.74%,
1.92%, 2.05%, 1.77%, 1.93%, 1.73%, respectively.
<F6> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and for the fiscal years ended October 31,
1998, 1997, 1996, 1995, 1994 would have been 0.92%, 0.94%, 0.94%, 0.98%,
1.01%, 1.01%, respectively; and ratios of net investment income to average
net assets for the period ended April 30, 1999 and for the fiscal years
ended October 31, 1998, 1997, 1996, 1995, 1994 would have been 1.04%,
1.04%, 1.27%, 1.59%, 1.59%, 1.78%, respectively.
<F7> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and for the fiscal years ended October 31,
1998, 1997, 1996, 1995, 1994 would have been 0.43%, 0.44%, 0.45%, 0.48%,
0.53%, 0.57%, respectively; and ratios of net investment income to average
net assets for the period ended April 30, 1999 and for the fiscal years
ended October 31, 1998, 1997, 1996, 1995, 1994 would have been 1.05%,
1.32%, 1.59%, 1.94%, 2.27%, 2.31%, respectively.
<F8> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal years ended October 31, 1998,
1997, 1996, 1995, 1994 would have been 0.93%, 0.96%, 0.96%, 0.98%, 1.02%,
1.00%, respectively; and ratios of net investment income to average net
assets for the period ended April 30, 1999 and the fiscal years ended
October 31, 1998, 1997, 1996, 1995, 1994 would have been 0.06%, 0.13%,
0.01%, (0.12)%, 0.01%, 0.19%, respectively.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIALHIGHLIGHTS
INSTITUTIONAL
EQUITY FUNDS
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
----------------------------------- -------------------------------------
Net Realized
Net and Unrealized Total Dividends Distributions
Asset Value, Net Gains or From from Net From
Beginning Investment (Losses) on Investment Investment Capital Total
of Period Income Securities Operations Income Gains Distributions
<C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
SPECIAL GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 $32.34 $0.04 $0.85 $0.89 $(0.04)$ - $(0.04)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 33.19 0.00 8.49 8.49 - $(0.21) (0.21)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 41.47 (0.04) 4.74 4.70 - (4.59) (4.59)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 41.58 (0.11) 8.49 8.38 - (5.26) (5.26)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 44.70 (0.14) (2.09) (2.23) - (4.46) (4.46)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 38.01 (0.01) 2.82 2.81 - (0.31) (0.31)
- -----------------------------------------------------------------------------------------------------------------------------------
EMERGING GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
Aug. 15, 19971 through Oct. 31, 1997 10.00 0.02 0.29 0.31 - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 10.31 0.05 (0.71) (0.66) (0.02) (0.05) (0.07)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 9.58 - (0.37) (0.37) (0.02) - (0.02)
- -----------------------------------------------------------------------------------------------------------------------------------
MICROCAP
- -----------------------------------------------------------------------------------------------------------------------------------
Aug. 1, 19951 through June 30, 1996 10.00 (0.02) 6.14 6.12 (0.05) (0.62) (0.67)
- -----------------------------------------------------------------------------------------------------------------------------------
July 1, 1996 through Oct. 31, 1996 15.45 (0.07) 0.82 0.75 - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 16.20 (0.15) 4.27 4.12 - (2.75) (2.75)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 17.57 (0.22) (3.19) (3.41) - (1.67) (1.67)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 12.49 (0.07) 3.41 3.34 - (0.03) (0.03)
- -----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY8
- -----------------------------------------------------------------------------------------------------------------------------------
Apr. 28, 19941 through Oct. 31, 1994 20.00 0.04 (0.05) (0.01) - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 19.99 0.12 (0.87) (0.75) (0.04) (0.01) (0.05)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 19.19 0.11 1.44 1.55 (0.10) (0.37) (0.47)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 20.27 (0.10) (1.10) (1.00) (0.17) (0.46) (0.63)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 18.64 0.24 (3.16) (2.92) (0.09) (0.37) (0.46)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 15.26 0.10 2.67 2.77 (0.31) - (0.31)
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Supplemental Data and Ratios
------------------------------------------------
Ratio
Ratio of Net
of Net Investment
Net Assets, Expenses Income
Net Asset End of to Average to Average Portfolio
Value, End Total Period Net Net Turnover
of Period Return<F2> (000s) Assets<F3> Assets<F3> Rate<F2>
<C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
SPECIAL GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 $33.19 2.77% $395,584 0.89%<F4> 0.13%<F4> 69.74%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 41.47 25.79% 434,228 0.90%<F4> 0.00%<F4> 79.25%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 41.38 12.58% 482,857 0.88%<F4> (0.10)%<F4> 103.34%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 44.36 22.44% 569,028 0.87%<F4> (0.25)%<F4> 97.40%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 38.01 (5.66)% 464,858 0.88%<F4> (0.32)%<F4> 77.39%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 40.51 7.36% 457,428 0.92%<F4> (0.08)%<F4> 64.07%
- -----------------------------------------------------------------------------------------------------------------------------------
EMERGING GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
Aug. 15, 19971 through Oct. 31, 1997 10.31 3.10% 48,044 0.90%<F5> 1.18%<F5> 14.51%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 9.58 (6.35)% 60,400 0.90%<F5> 0.49%<F5> 132.63%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 9.19 (3.93)% 139,697 1.02%<F5> (0.04)%<F5> 45.82%
- -----------------------------------------------------------------------------------------------------------------------------------
MICROCAP
- -----------------------------------------------------------------------------------------------------------------------------------
Aug. 1, 19951 through June 30, 1996 15.45 63.93% 63,595 1.74%<F6> (0.16)%<F6> 283.67%
- -----------------------------------------------------------------------------------------------------------------------------------
July 1, 1996 through Oct. 31, 1996 16.20 4.85% 66,368 1.72%<F6> (1.44)%<F6> 64.44%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 17.57 30.12% 103,840 1.70%<F6> (1.20)%<F6> 158.39%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 12.49 (21.51)% 72,696 1.74%<F6> (1.38)%<F6> 135.61%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 15.80 26.82% 110,932 1.77%<F6> (0.98)%<F6> 76.51%
- -----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY8
- -----------------------------------------------------------------------------------------------------------------------------------
Apr. 28, 19941 through Oct. 31, 1994 19.99 (0.05)% 23,756 1.49%<F7> 0.44%<F7> 6.55%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 19.19 (3.75)% 31,187 1.50%<F7> 0.66%<F7> 15.12%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 20.27 8.21% 43,182 1.50%<F7> 0.62%<F7> 31.57%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 18.64 (5.10)% 57,206 1.50%<F7> 0.50%<F7> 97.09%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 15.26 (15.97)% 44,670 1.50%<F7> 1.37%<F7> 43.96%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 17.72 18.45% 44,810 1.54%<F7> 0.72%<F7> 15.50%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> Not annualized for the period ended October 31, 1998 for the Balanced
Income, for the period ended October 31, 1997 for the Emerging Growth Fund,
for the period ended June 30, 1996 and October 31, 1996 for the MicroCap
Fund for the period ended October 31, 1994 for the International Equity
Fund, and for the period ended April 30, 1999 for all funds.
<F3> Annualized for the period ended October 31, 1998 for the Balanced Income,
for the period ended October 31, 1997 for the Emerging Growth Fund, for the
period ended June 30, 1996 and October 31, 1996 for the MicroCap Fund for
the period ended October 31, 1994 for the International Equity Fund, and
for the period ended April 30, 1999 for all funds.
<F4> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal years ended October 31, 1998,
1997, 1996, 1995, 1994 would have been 0.95%, 0.95%, 0.95%, 0.95%, 0.98%,
0.98%, respectively; and ratios of net investment income to average net
assets for the period ended April 30, 1999 and the fiscal years ended
October 31, 1998, 1997, 1996, 1995, 1994 would have been (0.12)%, (0.39)%,
(0.32)%, (0.17)%, (0.08)%, 0.04%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal year ended October 1998 and for
the period ended October 31, 1997 would have been 1.09%, 1.17%, 1.24%,
respectively; and ratios of net investment income to average net assets for
the period ended April 30, 1999 and the fiscal year ended October 1998 and
for the period ended October 31, 1997 would have been (0.11)%, 0.22%,
0.84%, respectively.
<F6> Without fees waived, the ratio of net expenses to average net assets for
the period ended April 30, 1999 and the fiscal years ended October 31,
1998, 1997 and for the periods ended October 31, 1996 and June 30, 1996
would have been 1.80%, 1.81%, 1.78%, 1.79% and 1.97%, respectively, and the
ratio of net investment income (loss) to average net assets for the period
ended April 30, 1999 and the fiscal years ended October 31, 1998, 1997 and
for the periods ended October 31, 1996 and June 30, 1996 would have been
(1.01)%. 1.45%, (1.28)%, (1.51)% and (0.39)%, respectively.
<F7> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal year ended October 31, 1998,
1997, 1996, 1995 and the period ended October 31, 1994 would have been
1.87%, 1.92%, 2.25%, 2.36%, 2.65% and 2.85%, respectively; and ratios of
net investment income to average net assets for the period ended April 30,
1999 and the fiscal years ended October 31, 1998, 1997, 1996, 1995 and the
period ended October 31, 1994 would have been 0.40%, 0.96%, (0.25)%,
(0.24)%, (0.49)% and (0.92)%, respectively.
<F8> Effective September 2, 1997, Hansberger Global Investors assumed the
investment sub-advisory responsibilities of State Street Global Advisers.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIALHIGHLIGHTS
RETAIL A SHARE
EQUITY FUNDS
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
----------------------------------- -------------------------------------
Net Realized
Net and Unrealized Total Dividends Distributions
Asset Value, Net Gains or From from Net From
Beginning Investment (Losses) on Investment Investment Capital Total
of Period Income Securities Operations Income Gains Distributions
<C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
BALANCED INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
Dec. 1, 1997<F1> through Oct. 31, 1998 $10.00 $0.28 $0.96 $1.24 $(0.24) - $(0.24)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 11.00 0.14 0.62 0.76 (0.14) $(0.44)$ (0.58)
- -----------------------------------------------------------------------------------------------------------------------------------
BALANCED GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 22.76 0.44 (0.66) (0.22) (0.44) - (0.44)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 22.10 0.49 3.77 4.26 (0.47) - (0.47)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 25.89 0.47 2.64 3.11 (0.47) (0.55) (1.02)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 27.98 0.58 4.19 4.77 (0.59) (1.68) (2.27)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 30.38 0.56 1.86 2.42 (0.58) (2.50) (3.08)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 29.82 0.25 1.73 1.98 (0.25) (0.95) (1.20)
- -----------------------------------------------------------------------------------------------------------------------------------
GROWTH AND INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 23.70 0.43 (0.03) 0.40 (0.42) (0.59) (1.01)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 23.09 0.37 5.14 5.51 (0.38) (0.60) (0.98)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 27.62 0.42 6.61 7.03 (0.39) (1.19) (1.58)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 33.07 0.37 8.92 9.29 (0.39) (2.73) (3.12)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 39.24 0.36 6.55 6.91 (0.35) (1.39) (1.74)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 44.41 0.19 5.91 6.10 (0.21) (3.21) (3.42)
- -----------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 33.04 0.77 0.35 1.12 (0.75) - (0.75)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 33.41 0.70 7.70 8.40 (0.68) (0.06) (0.74)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 41.07 0.77 8.69 9.46 (0.78) (0.35) (1.13)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 49.40 0.80 14.33 15.13 (0.81) (0.61) (1.42)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 63.11 0.84 12.58 13.42 (0.84) (1.11) (1.95)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 74.58 0.37 15.99 16.36 (0.41) (0.47) (0.88)
- -----------------------------------------------------------------------------------------------------------------------------------
GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 21.40 0.06 0.06 0.12 (0.05) - (0.05)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 21.47 (0.02) 4.16 4.14 (0.03) - (0.03)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 25.58 (0.07) 4.81 4.74 - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 30.32 0.05 6.30 6.25 - (1.30) (1.30)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 35.27 (0.02) 5.66 5.64 (0.02) (5.17) (5.19)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 35.72 (0.01) 5.67 5.66 (0.03) (4.03) (4.06)
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Supplemental Data and Ratios
------------------------------------------------
Ratio
Ratio of Net
of Net Investment
Net Assets, Expenses Income
Net Asset End of to Average to Average Portfolio
Value, End Total Period Net Net Turnover
of Period Return<F2> (000s) Assets<F3> Assets<F3> Rate<F2>
<C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
BALANCED INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
Dec. 1, 1997<F1> through Oct. 31, 1998 $11.00 12.46% $10,614 1.00%<F4> 2.82%<F4> 58.33%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 11.18 7.01% 12,867 1.14%<F4> 2.58%<F4> 11.79%
- -----------------------------------------------------------------------------------------------------------------------------------
BALANCED GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 22.10 (0.93)% 94,657 0.75%<F5> 2.03%<F5> 59.77%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 25.89 19.55% 21,832 0.94%<F5> 2.05%<F5> 61.87%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 27.98 12.30% 29,034 1.00%<F5> 1.80%<F5> 63.91%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 30.48 18.07% 44,026 1.00%<F5> 2.06%<F5> 69.90%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 29.82 8.60% 59,657 1.00%<F5> 1.91%<F5> 56.44%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 30.60 6.59% 60,688 1.14%<F5> 1.59%<F5> 33.47%
- -----------------------------------------------------------------------------------------------------------------------------------
GROWTH AND INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 23.09 1.84% 164,053 0.90%<F6> 1.89%<F6> 56.85%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 27.62 24.75% 42,424 1.09%<F6> 1.51%<F6> 47.85%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 33.07 26.62% 71,310 1.15%<F6> 1.42%<F6> 51.37%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 39.24 30.47% 128,070 1.12%<F6> 1.09%<F6> 31.36%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 44.41 18.08% 190,331 1.12%<F6> 0.86%<F6> 48.56%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 47.09 13.92% 210,946 1.15%<F6> 0.81%<F6> 13.36%
- -----------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 33.41 3.51% 107,563 0.50%<F7> 2.38%<F7> 13.28%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 41.07 25.79% 18,663 0.66%<F7> 2.14%<F7> 4.61%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 49.40 23.36% 39,656 0.66%<F7> 1.76%<F7> 7.48%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 63.11 31.08% 76,866 0.63%<F7> 1.40%<F7> 9.81%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 74.58 21.63% 110,129 0.58%<F7> 1.18%<F7> 2.91%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 90.06 22.02% 141,733 0.60%<F7> 0.88%<F7> 6.88%
- -----------------------------------------------------------------------------------------------------------------------------------
GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 21.47 0.56% 113,197 0.88%<F8> 0.30%<F8> 33.24%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 25.58 19.31% 10,105 1.09%<F8> (0.06)%<F8> 49.84%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 30.32 18.53% 16,636 1.15%<F8> (0.29)%<F8> 56.75%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 35.27 21.30% 25,043 1.14%<F8> (0.16)%<F8> 62.09%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 35.72 18.58% 38,213 1.14%<F8> (0.05)%<F8> 51.82%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 37.32 15.93% 48,485 1.16%8 (0.17)%8 28.89%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> Not annualized for the period ended October 31, 1998 for the Balanced
Income, for the period ended October 31, 1997 for the Emerging Growth Fund,
for the period ended June 30, 1996 and October 31, 1996 for the MicroCap
Fund for the period ended October 31, 1994 for the International Equity
Fund, and for the period ended April 30, 1999 for all funds. The total
return calculations for the Funds do not reflect the maximum sales charge
of 4.50%.
<F3> Annualized for the period ended October 31, 1998 for the Balanced Income,
for the period ended October 31, 1997 for the Emerging Growth Fund, for the
period ended June 30, 1996 and October 31, 1996 for the MicroCap Fund for
the period ended October 31, 1994 for the International Equity Fund, and
for the period ended April 30, 1999 for all funds.
<F4> Without fees waived, ratios of net expenses to average net assets for the
periods ended April 30, 1999 and October 31, 1998 would have been 1.50%,
1.63%, respectively; and ratio of net investment income to average net
assets for the period ended April 30, 1999 and October 31, 1998 would have
been 2.22%, 2.19%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal years ended October 31, 1998,
1997, 1996, 1995, 1994 would have been 1.24%, 1.24%, 1.25%, 1.28%, 1.25%,
1.05%, respectively; and ratios of net investment income to average net
assets for the period ended April 30, 1999 and the fiscal years ended
October 31, 1998, 1997, 1996, 1995, 1994 would have been 1.49%, 1.67%,
1.80%, 1.52%, 1.74%, 1.73%, respectively.
<F6> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal years ended October 31, 1998,
1997, 1996, 1995, 1994 would have been 1.17%, 1.19%, 1.19%, 1.23%, 1.20%,
1.01%, respectively; and ratios of net investment income to average net
assets for the period ended April 30, 1999 and the fiscal years ended
October 31, 1998, 1997, 1996, 1995, 1994, would have been 0.79%, 0.79%,
1.02%, 1.35%, 1.40%, 1.78%, respectively.
<F7> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal years ended October 31, 1998,
1997, 1996, 1995, 1994 would have been 0.68%, 0.69%, 0.70%, 0.73%, 0.73%,
0.57%, respectively; and ratios of net investment income to average net
assets for the period ended April 30, 1999 and the fiscal years ended
October 31, 1998, 1997, 1996, 1995, 1994 would have been 0.80%, 1.07%,
1.33%, 1.69%, 2.07%, 2.31%, respectively.
<F8> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal years ended October 31, 1998,
1997, 1996, 1995, 1994 would have been 1.18%, 1.21%, 1.21%, 1.23%, 1.21%,
1.00%, respectively; and ratios of net investment income to average net
assets for the period ended April 30, 1999 and the fiscal years ended
October 31, 1998, 1997, 1996, 1995, 1994 would have been (0.19)%, (0.12)%,
(0.24)%, (0.36)%, (0.18)%, 0.19%, respectively.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIALHIGHLIGHTS
RETAIL A SHARE
EQUITY FUNDS
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
----------------------------------- -------------------------------------
Net Realized
Net and Unrealized Total Dividends Distributions
Asset Value, Net Gains or From from Net From
Beginning Investment (Losses) on Investment Investment Capital Total
of Period Income Securities Operations Income Gains Distributions
<C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
SPECIAL GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 $32.34 $0.04 $0.85 $0.89 $(0.04) - $(0.04)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 33.19 (0.07) 8.49 8.42 - $(0.21) (0.21)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 41.40 (0.13) 4.70 4.57 - (4.59) (4.59)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 41.38 (0.20) 8.44 8.24 - (5.26) (5.26)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 44.36 (0.24) (2.07) (2.31) - (4.46) (4.46)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 37.59 (0.11) 2.84 2.73 - (0.31) (0.31)
- -----------------------------------------------------------------------------------------------------------------------------------
EMERGING GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
Aug. 15, 19971 through Oct. 31, 1997 10.00 0.02 0.29 0.31 - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 10.31 0.03 (0.71) (0.68) (0.02) (0.05) (0.07)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 9.56 (0.01) (0.38) (0.39) (0.01) - (0.01)
- -----------------------------------------------------------------------------------------------------------------------------------
MICROCAP
- -----------------------------------------------------------------------------------------------------------------------------------
Aug. 1, 19951 through June 30, 1996 10.00 (0.02) 6.10 6.08 (0.04) (0.62) (0.66)
- -----------------------------------------------------------------------------------------------------------------------------------
July 1, 1996 through Oct. 31, 1996 15.42 (0.08) 0.82 0.74 - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 16.16 (0.18) 4.24 4.06 - (2.75) (2.75)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 17.47 (0.25) (3.17) (3.42) - (1.67) (1.67)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 12.38 (0.10) 3.39 3.29 - (0.03) (0.03)
- -----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY<F8>
- -----------------------------------------------------------------------------------------------------------------------------------
Apr. 28, 19941 through Oct. 31, 1994 20.00 0.04 (0.05) (0.01) - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 19.99 0.08 (0.87) (0.79) (0.04) (0.01) (0.05)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 19.15 0.07 1.43) 1.50 (0.07) (0.37) (0.44)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 20.21 (0.06) (1.10) (1.04) (0.13) (0.46) (0.59)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 18.58 0.20 (3.15) (2.95) (0.08) (0.37) (0.45)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 15.18 0.05 2.68 2.73 (0.30) - (0.30)
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Supplemental Data and Ratios
------------------------------------------------
Ratio
Ratio of Net
of Net Investment
Net Assets, Expenses Income
Net Asset End of to Average to Average Portfolio
Value, End Total Period Net Net Turnover
of Period Return<F2> (000s) Assets<F3> Assets<F3> Rate<F2>
<C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
SPECIAL GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 $33.19 2.77% $395,584 0.89%<F4> 0.13%<F4> 69.74%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 41.40 25.56% 87,269 1.09%<F4> (0.19)%<F4> 79.25%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 41.38 12.27% 111,159 1.13%<F4> (0.35)%<F4> 103.34%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 44.36 22.18% 147,396 1.12%<F4> (0.50)%<F4> 97.40%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 37.59 (5.91)% 136,146 1.13%<F4> (0.57)%<F4> 77.39%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 40.01 7.23% 123,596 1.17%<F4> (0.33)%<F4> 64.07%
- -----------------------------------------------------------------------------------------------------------------------------------
EMERGING GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
Aug. 15, 19971 through Oct. 31, 1997 10.31 3.10% 5,355 1.15%<F5> 0.93%<F5> 14.51%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 9.56 (6.58)% 12,884 1.15%<F5> 0.24%<F5> 132.63%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 9.16 (4.08)% 11,954 1.27%<F5> (0.29)% <F5> 45.82%
- -----------------------------------------------------------------------------------------------------------------------------------
MICROCAP
- -----------------------------------------------------------------------------------------------------------------------------------
Aug. 1, 19951 through June 30, 1996 15.42 63.52% 9,036 1.99%<F6> (0.36)%<F6> 283.67%
- -----------------------------------------------------------------------------------------------------------------------------------
July 1, 1996 through Oct. 31, 1996 16.16 4.80% 9,273 1.97%<F6> (1.69)%<F6> 64.44%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 17.47 29.78% 16,793 1.95%<F6> (1.45)%<F6> 158.39%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 12.38 (21.71)% 12,419 1.99%<F6> (1.63)%<F6> 135.61%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 15.64 26.65% 16,606 2.02%<F6> (1.23)%<F6> 76.51%
- -----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY8
- -----------------------------------------------------------------------------------------------------------------------------------
Apr. 28, 19941 through Oct. 31, 1994 19.99 (0.05)% 23,756 1.49%<F7> 0.44%<F7> 6.55%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 19.15 (3.95)% 1,633 1.70%<F7> 0.46%<F7> 15.12%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 20.21 7.95% 3,769 1.75%<F7> 0.37%<F7> 31.57%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 18.58 (5.30)% 6,502 1.75%<F7> 0.25%<F7> 97.09%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 15.18 (16.16)% 6,486 1.75%<F7> 1.12%<F7> 43.96%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 17.61 18.30% 6,184 1.79%<F7> 0.47%<F7> 15.50%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> Not annualized for the period ended October 31, 1998 for the Balanced
Income, for the period ended October 31, 1997 for the Emerging Growth Fund,
for the period ended June 30, 1996 and October 31, 1996 for the MicroCap
Fund for the period ended October 31, 1994 for the International Equity
Fund, and for the period ended April 30, 1999 for all funds. The total
return calculations for the Funds do not reflect the maximum sales charge
of 4.50%.
<F3> Annualized for the period ended October 31, 1998 for the Balanced Income,
for the period ended October 31, 1997 for the Emerging Growth Fund, for the
period ended June 30, 1996 and October 31, 1996 for the MicroCap Fund for
the period ended October 31, 1994 for the International Equity Fund, and
for the period ended April 30, 1999 for all funds.
<F4> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal years ended October 31, 1998,
1997, 1996, 1995, 1994 would have been 1.20%, 1.20%, 1.20%, 1.20%, 1.17%,
0.98%, respectively; and ratios of net investment income to average net
assets for the period ended April 30, 1999 and the fiscal years ended
October 31, 1998, 1997, 1996, 1995, 1994 would have been (0.36)%, (0.64)%,
(0.57)%, (0.42)%, (0.27)%, 0.04%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal year ended October 31, 1998 and
the period ended October 31, 1997 would have been 1.36%, 1.42%, 1.59%,
respectively; and ratios of net investment income to average net assets for
the period ended April 30, 1999 and the fiscal year ended October 31, 1998
and the period ended October 31, 1997 would have been (0.18)%, (0.03)%,
0.59%, respectively.
<F6> Without fees waived, the ratio of net expenses to average net assets for
the periods ended April 30, 1999 and October 31, 1998, 1997, 1996 and June
30, 1996 would have been 2.05%, 2.06%, 2.03%, 2.04% and 2.22%,
respectively, and the ratio of net investment income (loss) to average net
assets for the periods ended April 30, 1999 and October 31, 1998, 1997,
1996 and June 30, 1996 would have been (1.26)%, (1.07)%, (1.53)%, (1.76)%
and (0.59)%, respectively.
<F7> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal year ended October 31, 1998,
1997, 1996, 1995 and the period ended October 31, 1994 would have been
2.12%, 2.16%, 2.50%, 2.61%, 2.85% and 2.85%, respectively; and ratios of
net investment income to average net assets for the period ended April 30,
1999 and the fiscal years ended October 31, 1998, 1997, 1996, 1995 and the
period ended October 31, 1994 would have been 0.15%, 0.71%, (0.50)%,
(0.48)%, (0.69)% and (0.92)%, respectively.
<F8> Effective September 2, 1997, Hansberger Global Investors assumed the
investment sub-advisory responsibilities of State Street Global Advisers.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIALHIGHLIGHTS
RETAIL B SHARE
EQUITY FUNDS
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
----------------------------------- -------------------------------------
Net Realized
Net and Unrealized Total Dividends Distributions
Asset Value, Net Gains or From from Net From
Beginning Investment (Losses) on Investment Investment Capital Total
of Period Income Securities Operations Income Gains Distributions
<C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
BALANCED INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through
April 30, 1999 (Unaudited) $10.87$ $0.01 $0.35 $0.36 - - -
- -----------------------------------------------------------------------------------------------------------------------------------
BALANCED GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through
April 30, 1999 (Unaudited) 30.25 0.01 0.49 0.50 - - -
- -----------------------------------------------------------------------------------------------------------------------------------
GROWTH AND INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through
April 30, 1999 (Unaudited) 44.64 - 2.50 2.50 - - -
- -----------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through
April 30, 1999 (Unaudited) 83.72 (0.01) 6.46 6.45 - - -
- -----------------------------------------------------------------------------------------------------------------------------------
GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through
April 30, 1999 (Unaudited) 36.92 (0.02) 0.39 0.37 - - -
- -----------------------------------------------------------------------------------------------------------------------------------
SPECIAL GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through
April 30, 1999 (Unaudited) 37.57 (0.03) 2.33 2.30 - - -
- -----------------------------------------------------------------------------------------------------------------------------------
EMERGING GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through
April 30, 1999 (Unaudited) 9.57 (0.01) (0.40) (0.41) - - -
- -----------------------------------------------------------------------------------------------------------------------------------
MICROCAP
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through
April 30, 1999 (Unaudited) 13.74 (0.02) 1.92 1.90 - - -
- -----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY<F8>
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through
April 30, 1999 (Unaudited) 14.71 0.01 2.89 2.90 - - -
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Supplemental Data and Ratios
------------------------------------------------
Ratio
Ratio of Net
of Net Investment
Net Assets, Expenses Income
Net Asset End of to Average to Average Portfolio
Value, End Total Period Net Net Turnover
of Period Return<F2> (000s) Assets<F3> Assets<F3> Rate<F2>
<C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
BALANCED INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through
April 30, 1999 (Unaudited) $11.23 3.35% $ 349 2.03%4 1.92%4 11.79%
- -----------------------------------------------------------------------------------------------------------------------------------
BALANCED GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through
April 30, 1999 (Unaudited) 30.75 1.65% 226 2.08%5 0.69%5 33.47%
- -----------------------------------------------------------------------------------------------------------------------------------
GROWTH AND INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through
April 30, 1999 (Unaudited) 47.14 5.60% 667 1.94% 0.08% 13.36%
- -----------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through
April 30, 1999 (Unaudited) 90.17 7.70% 1,164 1.39%6 (0.10)%6 6.88%
- -----------------------------------------------------------------------------------------------------------------------------------
GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through
April 30, 1999 (Unaudited) 37.29 1.00% 311 2.07% (1.50)% 28.89%
- -----------------------------------------------------------------------------------------------------------------------------------
SPECIAL GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through
April 30, 1999 (Unaudited) 39.98 6.41% 135 2.00% (1.31)% 64.07%
- -----------------------------------------------------------------------------------------------------------------------------------
EMERGING GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through
April 30, 1999 (Unaudited) 9.16 (4.28)% 40 2.14% (1.46)% 45.82%
- -----------------------------------------------------------------------------------------------------------------------------------
MICROCAP
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through
April 30, 1999 (Unaudited) 15.64 13.83% 16 2.87% (2.65)% 76.51%
- -----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY<F8>
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through
April 30, 1999 (Unaudited) 17.61 19.71% 6 2.82%7 4.31%7 15.50%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> Not annualized for the period ended April 30, 1999 for all funds. The total
return calculations for the Funds do not reflect the maximum deferred sales
charge of 5.00%.
<F3> Annualized for the period ended April 30, 1999 for all funds.
<F4> Without fees waived, ratio of net expenses to average net assets for the
period ended April 30, 1999 would have been 2.32% and the ratio of net
investment income to average net assets for the period ended April 30, 1999
would have been 1.63%.
<F5> Without fees waived, ratio of net expenses to average net assets for the
period ended April 30, 1999 would have been 2.11% and the ratio of
netinvestment income to average net assets for the period ended April 30,
1999 would have been 0.66%.
<F6> Without fees waived, ratio of net expenses to average net assets for the
period ended April 30, 1999 would have been 1.45% and the ratio of net
investment income to average net assets for the period ended April 30, 1999
would have been (0.16)%.
<F7> Without fees waived, ratio of net expenses to average net assets for the
period ended April 30, 1999 would have been 3.13% and the ratio of net
investment income to average net assets for the period ended April 30, 1999
would have been 4.00%.
<F8> Effective September 2, 1997, Hansberger Global Investors assumed the
investment sub-advisory responsibilities of State Street Global Advisers.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
COMMON STOCKS 49.2%
APPLIANCES 0.9%
6,375 Maytag Corporation $ 436
----------
BANKING 4.9%
19,800 Bank of New York Company, Inc. 792
5,800 Mellon Bank Corporation 431
6,000 Northern Trust Corporation 559
14,700 Wells Fargo Company, Inc. 635
----------
2,417
----------
BUILDING MATERIALS 0.6%
5,000 Martin Marietta Materials, Inc. 309
----------
BUSINESS MACHINES & SOFTWARE 1.8%
900 International Business Machines Corporation 188
2,700 Pitney Bowes, Inc. 189
8,540 Xerox Corporation 502
----------
879
----------
BUSINESS SERVICES 2.5%
6,000 Automatic Data Processing, Inc. 267
8,200 H & R Block, Inc. 395
9,100 Equifax Inc. 327
11,550 The ServiceMaster Company 219
----------
1,208
----------
CHEMICALS 0.8%
7,200 Ecolab, Inc. 302
3,200 Valspar Corporation 111
----------
413
----------
COMMUNICATIONS & MEDIA 2.7%
2,800 CBS Corporation <F1> 128
9,300 Interpublic Group of Companies, Inc. 721
14,000 New York Times Company - Class A 483
----------
1,332
----------
CONSUMER PRODUCTS 2.6%
4,850 Avery Dennison Corporation 331
2,400 The Black & Decker Corporation 136
1,800 The Clorox Company 208
7,900 Masco Corporation 232
8,400 Newell Company 398
----------
1,305
----------
COSMETICS & SOAP 2.6%
7,600 Avon Products, Inc. 413
3,400 Estee Lauder Companies - Class A 340
1,800 Gillette Company 94
4,500 Procter & Gamble Company 422
----------
1,269
----------
Number Market Value
of Shares (in thousands)
---------- ---------------
DRUGS & MEDICAL SUPPLIES 6.3%
4,600 Abbott Laboratories $ 223
6,200 American Home Products Corporation 378
5,000 Baxter International, Inc. 315
6,400 Becton, Dickinson & Company 238
8,600 Bristol Myers Squibb Company 547
3,500 Johnson & Johnson 341
5,860 McKesson Corporation 205
5,100 Medtronic, Inc. 367
4,300 Pfizer, Inc. 495
----------
3,109
----------
ELECTRIC UTILITIES 0.6%
10,100 NiSource, Inc. 280
----------
FINANCE 0.6%
5,600 Household International, Inc. 282
----------
FINANCIAL SERVICES 3.8%
12,200 Alliance Capital Management L.P. 338
2,500 American Express Company 327
5,200 Federal Home Loan Mortgage Corporation 326
4,000 FINOVA Group, Inc. 193
4,100 Marsh & McLennan Companies, Inc. 314
5,600 MBIA, Inc. 377
----------
1,875
----------
FOOD, BEVERAGES & TOBACCO 1.4%
11,600 McCormick & Company, Incorporated 352
9,100 PepsiCo, Inc. 336
----------
688
----------
HEALTH CARE SERVICES & SUPPLIES 0.5%
3,800 Warner-Lambert Company 258
----------
INSURANCE 1.1%
5,300 American General Corporation 392
3,675 Provident Companies, Inc. 145
----------
537
----------
MULTI-INDUSTRY 3.5%
1,475 Illinois Tool Works Inc. 113
9,900 Mattel, Inc. 256
6,800 Pentair, Inc. 320
3,300 Teleflex Incorporated 144
11,100 Tyco International, Ltd. 901
----------
1,734
----------
NATURAL GAS 0.8%
5,100 Enron Corporation 384
----------
OIL - DOMESTIC 0.4%
4,400 Phillips Petroleum Company 223
----------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
OIL - INTERNATIONAL 0.9%
4,100 Mobil Corporation $ 429
----------
PAPER & FOREST PRODUCTS 0.3%
2,700 Kimberly-Clark Corporation 166
----------
PRINTING & PUBLISHING 1.7%
6,700 Houghton Mifflin Company 299
10,000 McGraw-Hill, Inc. 553
----------
852
----------
PRODUCTION 0.4%
5,200 Dover Corporation 192
----------
REAL ESTATE INVESTMENT TRUSTS (REITS) 1.2%
6,675 AMB Property Corporation 147
3,800 Boston Properties, Inc. 138
5,300 Post Properties, Inc. 210
5,600 Prison Realty Corporation 109
----------
604
----------
RETAIL 2.5%
3,500 Albertson's, Inc. 180
7,157 Gap, Inc. 476
7,300 Hannaford Brothers Company 318
7,250 Longs Drug Stores Corporation 249
----------
1,223
----------
TELECOMMUNICATIONS 2.7%
12,300 ALLTEL Corporation 829
400 Ameritech Corporation 27
4,350 AT&T Corporation 220
4,100 Lucent Technologies, Inc. 247
----------
1,323
----------
TEXTILES & APPAREL 1.1%
11,100 CVS Corporation 529
----------
Total Common Stock (Cost $19,155) 24,256
----------
PREFERRED STOCK 1.1%
FINANCIAL SERVICES 1.1%
6,400 Merrill Lynch Strypes
(convertible to Dollar General Corporation
common stock) 262
1,600 PLC Capital Trust II
(convertible to Protective Life Corporation
common stock) 103
----------
2,400 Salomon Smith Barney, Inc.
(convertible to Cincinnati Bell, Inc. common stock) 168
----------
Total Preferred Stock (Cost $462) 533
----------
Number Market Value
of Shares (in thousands)
---------- ---------------
LONG-TERM INVESTMENTS 47.9%
CORPORATE CONVERTIBLE BONDS 0.2%
108 Imax Corporation,
5.75%, 4/01/03 (convertible to Imax Corporation
common stock) $ 115
----------
Principal
Amount
(in thousands)
- --------------
ASSET-BACKED SECURITIES 6.5%
AUTO LOAN RECEIVABLES 0.9%
Banc One Auto Grantor Trust,
$ 120 Series 1997-A, Class A, 6.27%, 11/20/03 121
Chase Manhattan Auto Owner Trust,
300 Series 1997-B, Class A5, 6.60%, 3/15/02 306
----------
427
----------
CREDIT CARD RECEIVABLES 5.3%
Advanta Credit Card Master Trust,
650 Series 1995-F, Class A1, 6.05%, 8/01/03 656
Chemical Master Credit Card Trust I,
250 Series 1995-2, Class A, 6.23%, 6/15/03 253
Citibank Credit Card Master Trust I, Principal Only:
300 Series 1996-1, Class A, 0.00%, 2/07/01 272
800 Series 1997-6, Class A, 0.00%, 8/15/06 578
Discover Card Master Trust I,
500 Series 1995-2, Class A, 6.55%, 2/18/03 507
Sears Credit Account Master Trust,
400 Series 1995-2, Class A, 8.10%, 6/15/04 358
----------
2,624
----------
HOME EQUITY LOAN RECEIVABLES 0.3%
Green Tree Financial Corporation,
27 Series 1996-9, Class A3, 6.41%, 1/15/28 27
Security Pacific Home Equity Loan Subordinated Notes,
105 9.75%, 5/15/99 105
----------
132
----------
CORPORATE BONDS 12.0%
AT&T Capital Corp. Company Guarantee,
200 6.25%, 5/15/01 201
Associates Corporation of North America Senior Notes,
150 7.50%, 4/15/02 157
BankBoston Corporation Subordinated Notes,
200 6.625%, 2/01/04 204
Bank of New York Subordinated Notes,
150 7.875%, 11/15/02 159
BankAmerica Corporation Subordinated Notes,
185 9.20%, 5/15/03 205
Bankers Trust Corporation Subordinated Debentures,
200 9.50%, 6/14/00 208
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
CORPORATE BONDS 12.0% (CONT.)
Bankers Trust Corporation Subordinated Notes,
$ 200 7.50%, 11/15/15 $207
Barclays North American Capital Corp. Debentures,
300 9.75%, 5/15/21 331
Bear Stearns Company Notes,
365 6.50%, 6/15/00 369
Chase Manhattan Corporation Subordinated Notes,
282 9.75%, 11/01/01 307
Citicorp Subordinated Notes,
100 9.50%, 2/01/02 109
Continental Cablevision, Inc. Debentures,
100 9.50%, 8/01/13 119
Donaldson,Lufkin & Jenrette Senior Notes,
200 5.875%, 4/01/02 200
Federal Express Corporation Notes,
180 9.65%, 6/15/12 218
Lehman Brothers, Inc. Senior Subordinated Notes,
300 9.875%, 10/15/00 316
Marlin Water Trust Senior Notes,
200 7.09%, 12/15/01 (Acquired 12/9/98, Cost $201)<F2> 202
Merrill Lynch & Co. Notes,
225 8.30%, 11/01/02 241
Midlantic Corporation Subordinated Notes,
240 9.20%, 8/01/01 255
Morgan Stanley Group Debentures,
300 8.875%, 10/15/01 321
National Westminster Bank Debentures,
300 9.375%, 11/15/03 338
Paine Webber Group, Inc. Subordinated Notes,
200 7.75%, 9/01/02 208
J.C. Penney Company, Inc. Debentures,
150 8.25%, 8/15/22 159
Salomon, Inc. Notes:
409 7.50%, 2/01/03 429
277 7.00%, 6/15/03 287
Westdeutsche Landesbank Subordinated Notes,
200 6.05%, 1/15/09 193
----------
$5,943
----------
INTERNATIONAL/YANKEE (U.S. $ DENOMINATED) 2.4%
ABN Amro Bank NV Bank Guarantee,
250 7.25%, 5/31/05 259
Ford Capital BV Debentures:
200 9.375%, 5/15/01 213
150 9.50%, 6/01/10 183
Household Netherlands BV Company Guarantee,
125 6.20%, 12/01/03 125
Korea Development Bank Bonds,
230 7.125%, 9/17/01 230
Norsk Hydro A/S Debentures,
50 9.00%, 4/15/12 59
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
INTERNATIONAL/YANKEE (U.S. $ DENOMINATED) 2.4% (CONT.)
Quebec Province Debentures,
50 11.00%, 6/15/15 $ 55
Wharf International Finance Ltd.
Company Guarantee,
50 7.625%, 3/13/07 44
----------
1,168
----------
U.S. GOVERNMENT AGENCY-BACKED MORTGAGE ISSUES 1.3%
Federal Home Loan Mortgage Corporation (FHLMC)
Real Estate Mortgage Investment Conduit (REMIC),
83 Series 1201, Class E, 7.40%, 12/15/21 85
Federal National Mortgage Association (FNMA)
Real Estate Mortgage Investment Conduit (REMIC):
200 Series 1993-37, Class B, 7.00%, 7/25/02 203
55 Series 1989-2, Class D, 8.80%, 1/25/19 57
77 Series 1990-89, Class K, 6.50%, 7/25/20 77
151 Series 1991-147, Class K, 7.00%, 1/25/21 152
Government National Mortgage Association (GNMA)
Real Estate Mortgage Investment Conduit (REMIC),
93 Series 3, Class F, 6.50%, 6/17/20 94
----------
668
----------
U.S. TREASURY OBLIGATIONS 25.5%
U.S. Treasury Bonds,
5,275 10.75%, 8/15/05 6,759
U.S. Treasury Notes,
2,700 6.625%, 7/31/01 2,785
U.S. Treasury Strips, Principal Only,
4,080 0.00%, 11/15/04 3,033
----------
12,577
----------
Total Long-Term Investments (Cost $23,576) 23,654
----------
SHORT-TERM INVESTMENTS 0.4%
INVESTMENT COMPANIES 0.4%
35 Financial Square Prime Obligation Fund 35
162 Short-Term Investments Co. Liquid Assets Portfolio 162
----------
Total Short-Term Investments (Cost $197) 197
----------
Total Investments (Cost $43,390) 98.6% 48,640
----------
Other Assets, less Liabilities 1.4% 709
----------
TOTAL NET ASSETS 100.0% $49,349
==========
<F1>Non-income producing
<F2>Unregistered security
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
COMMON STOCKS 59.3%
AEROSPACE & AIRCRAFT 0.7%
4,200 Cordant Technologies, Inc. $194
33,700 Gulfstream Aerospace Corporation <F1> 1,643
----------
1,837
----------
AIR TRANSPORTATION 1.0%
14,600 FDX Corporation <F1> 1,643
2,600 SkyWest, Inc. 68
29,200 Southwest Airlines Company 951
----------
2,662
----------
BANKING 0.8%
2,300 Charter One Financial, Inc. 72
10,600 Dime Bancorp, Inc. 244
14,300 Fifth Third Bancorp 1,025
10,800 Marshall & Ilsley Corporation 756
----------
2,097
----------
BUILDING PRODUCTS 0.3%
3,300 Martin Marietta Materials, Inc. 204
7,500 Southdown, Inc. 480
----------
684
----------
BUSINESS MACHINES & SOFTWARE 1.0%
13,600 Cadence Design Systems, Inc. <F1> 184
7,300 FORE Systems, Inc.<F1> 246
6,400 Keane, Inc.<F1> 159
2,700 Legato Systems, Inc.<F1> 109
1,600 Lexmark International Group, Inc.<F1> 198
4,200 NCR Corporation<F1> 172
21,950 Network Associates, Inc.<F1> 291
9,900 Sterling Commerce, Inc. <F1> 310
3,800 Storage Technology Corporation<F1> 73
12,600 Synopsys, Inc.<F1> 594
13,100 Unisys Corporation<F1> 412
----------
2,748
----------
BUSINESS SERVICES 8.0%
68,000 ABR Information Services, Inc. <F1> 1,190
19,700 Affiliated Computer Services, Inc.<F1> 754
15,900 Ciber, Inc. <F1> 300
27,000 Cintas Corporation 1,856
10,200 Computer Sciences Corporation<F1> 608
8,200 Concord EFS, Inc. <F1> 275
38,500 Convergys Corporation<F1> 717
51,900 First Data Corporation 2,203
30,287 FIserv, Inc. <F1> 1,774
22,300 F.Y.I. Incorporated <F1> 691
41,600 Gartner Group, Inc.<F1> 793
26,400 International Telecommunications Data Systems, Inc. 299
5,300 Lason, Inc.<F1> 210
15,900 Meta Group, Inc.<F1> 145
Number Market Value
of Shares (in thousands)
---------- ---------------
BUSINESS SERVICES 8.0% (CONT.)
21,600 National Data Corporation $ 996
2,200 NCO Group, Inc.<F1> 72
34,000 NOVA Corporation<F1> 884
21,600 PAREXEL International Corporation<F1> 521
17,000 Pharmaceutical Product Development, Inc.<F1> 495
43,700 Pittston Brink's Group 1,153
2,700 Quanta Services, Inc.<F1> 78
8,550 Robert Half International, Inc. <F1> 204
17,900 Sabre Group Holdings, Inc. <F1> 933
2,800 Snyder Communications, Inc.<F1> 82
98,800 SunGard Data Systems, Inc.<F1> 3,155
32,500 Sykes Enterprises, Inc.<F1> 666
3,800 Tetra Tech, Inc. <F1> 92
3,200 True North Communications, Inc. 86
1,800 Valassis Communications, Inc.<F1> 101
----------
21,333
----------
COMMUNICATIONS & MEDIA 1.8%
6,900 Clear Channel Communications, Inc.<F1> 480
2,300 Echostar Communications Corporation, Class A<F1> 231
18,500 Infinity Broadcasting Corporation<F1> 512
25,300 Interpublic Group of Companies, Inc. 1,962
4,400 Lee Enterprises, Inc. 126
22,200 Omnicom Group, Inc. 1,610
----------
4,921
----------
COMPUTERS 1.2%
3,900 CDW Computer Centers, Inc. <F1> 349
5,100 Comverse Technology, Inc.<F1> 327
12,200 Dell Computer Corporation <F1> 502
8,500 EMC Corporation <F1> 926
9,900 Sun Microsystems, Inc.<F1> 592
23,000 Tech Data Corporation <F1> 538
----------
3,234
----------
CONSTRUCTION 0.1%
5,300 Granite Construction, Inc. 151
----------
CONSUMER PRODUCTS 0.5%
3,100 IDEXX Laboratories, Inc.<F1> 70
26,300 Newell Company 1,248
----------
1,318
----------
DATA PROCESSING 1.0%
61,500 Acxiom Corporation <F1> 1,644
8,400 CSG Systems International, Inc. <F1> 324
8,400 Deltek Systems, Inc.<F1> 72
21,700 National Computer Systems, Inc. 608
----------
2,648
----------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
DRUGS & MEDICAL SUPPLIES 3.3%
22,200 Amerisource Health Corporation<F1> $ 614
2,500 Barr Laboratories, Inc.<F1> 74
5,200 Bindley Western Industries, Inc. 161
12,300 Elan Corporation PLC ADR <F1> 633
12,000 Eli Lilly &Company 884
5,700 Forest Laboratories, Inc.<F1> 254
13,800 Merck & Co., Inc. 969
11,400 Mylan Laboratories, Inc. 259
6,900 Pfizer, Inc. 794
17,300 Schering-Plough Corporation 836
3,500 Shire Pharmaceuticals Group PLC<F1> 76
13,400 Warner-Lambert Company 910
54,000 Watson Pharmaceuticals, Inc.<F1> 2,187
----------
8,651
----------
ELECTRIC EQUIPMENT 0.2%
10,200 Amkor Technology, Inc.<F1> 99
8,200 Amtel Corporation<F1> 150
5,800 Xilinx, Inc.<F1> 265
----------
514
----------
ELECTRONICS & SCIENTIFIC INSTRUMENTS 1.1%
10,925 Cisco Systems, Inc. <F1> 1,246
32,110 Molex, Inc. - Class A 927
2,700 Motorola, Inc. 216
23,450 Seitel, Inc.<F1> 407
4,500 Teradyne,Inc.<F1> 212
----------
3,008
----------
ENTERTAINMENT & LEISURE 1.6%
41,100 American Skiing Company<F1> 211
51,200 Carnival Corporation - Class A 2,112
12,600 Cinar Films Inc. - Class B <F1> 263
8,600 Imax Corporation<F1> 163
13,100 Royal Caribbean Cruises Ltd. 484
7,900 Steiner Leisure Ltd.<F1> 251
23,300 The Walt Disney Company 740
----------
4,224
----------
FINANCIAL SERVICES 4.6%
55,675 ARM Financial Group, Inc. - Class A 772
24,200 Associates First Capital Corporation 1,072
15,700 The BISYS Group, Inc.<F1> 797
3,000 CMAC Investment Corporation 138
20,800 Federal National Mortgage Association 1,305
7,300 Federated Investors, Inc. 117
8,300 Financial Security Assurance Holdings Ltd. 474
10,100 Franklin Resources, Inc. 404
9,500 Kansas City Southern Industries, Inc. 566
68,700 MBNA Corporation 1,936
8,400 Morgan Stanley Dean Witter & Company 833
6,450 The Charles Schwab Corporation 708
Number Market Value
of Shares (in thousands)
---------- ---------------
FINANCIAL SERVICES 4.6% (CONT.)
31,600 State Street Corporation $ 2,765
9,700 T. Rowe Price Associates, Inc. 366
----------
12,253
----------
FUNERAL SERVICES 0.3%
43,925 Stewart Enterprises, Inc. 873
----------
HEALTH CARE SERVICES & SUPPLIES 4.9%
14,025 Cardinal Health, Inc. 839
26,200 Covance Inc.<F1> 575
5,400 Dentsply International,Inc. 141
1,200 Express Scripts, Inc.<F1> 88
153,053 Health Management Associates, Inc. - Class A <F1> 2,391
4,900 IDX Systems Corporation<F1> 80
19,800 IMS Health Incorporated 594
18,300 Lincare Holdings, Inc. <F1> 542
23,000 Medtronic, Inc. 1,655
32,200 NCS Healthcare, Inc.<F1> 419
13,200 PSS World Medical, Inc.<F1> 129
24,100 Henry Schein, Inc. <F1> 631
9,700 Shared Medical Systems Corporation 527
4,600 STERIS Corporation<F1> 82
25,200 Stryker Corporation 1,542
10,600 Sybron International Corporation<F1> 293
3,900 Trigon Healthcare, Inc.<F1> 124
43,000 Universal Health Services, Inc. - Class B<F1> 2,228
----------
12,880
----------
HOSPITAL SUPPLIES & SERVICES 0.9%
102,100 Omnicare, Inc. 2,457
----------
HOUSING 0.3%
38,800 Toll Brothers, Inc. <F1> 829
----------
INSURANCE 5.2%
28,500 AFLAC, Inc. 1,546
25,000 AMBAC, Inc. 1,509
19,964 American International Group, Inc. 2,345
33,300 Amerin Corporation<F1> 780
3,400 Arthur J. Gallagher & Company 162
46,218 Enhance Financial Services Group, Inc. 956
49,800 MGIC Investment Corporation 2,418
66,600 Protective Life Corporation 2,609
9,400 The PMI Group, Inc. 525
8,700 ReliaStar Financial Corporation 320
5,100 Terra Nova (Bermuda) Holdings Ltd. 114
11,500 Torchmark Corporation 393
----------
13,677
----------
MEDICAL INSTRUMENTS 0.5%
9,600 Biomet, Inc. 394
2,200 Conmed Corporation<F1> 64
12,600 Guidant Corporation<F1> 676
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
.
Number Market Value
of Shares (in thousands)
---------- ---------------
MEDICAL INSTRUMENTS 0.5% (CONT.)
900 VISX, Inc.<F1> $ 116
1,200 Xomed Surgical Products, Inc.<F1> 50
----------
1,300
----------
MULTI-INDUSTRY 1.7%
13,300 Leggett & Platt, Inc. 307
51,100 Tyco International, Ltd. 4,152
----------
4,459
----------
NATURAL GAS 0.7%
23,700 Enron Corporation 1,783
----------
OIL & GAS - DOMESTIC 0.8%
9,800 Burlington Resources, Inc. 451
2,200 Devon Energy Corporation 73
26,000 Enron Oil & Gas Company 494
49,150 Forest Oil Corporation<F1> 492
3,200 Newfield Exploration Company<F1> 86
20,200 Tosco Corporation 540
4,500 Valero Energy Corporation 100
----------
2,236
----------
OIL & GAS - SERVICES 0.1%
17,700 Petroleum Geo-Services ADR<F1> 296
----------
POLLUTION CONTROL 0.1%
28,000 Tetra Technologies, Inc. <F1> 263
----------
REAL ESTATE INVESTMENT TRUSTS (REITS) 0.4%
18,800 Golf Trust of America, Inc. 417
31,499 Prison Realty Corporation 614
----------
1,031
----------
RESTAURANTS 0.2%
12,500 Papa John's International, Inc.<F1> 502
----------
RETAIL 9.6%
6,200 Abercrombie & Fitch Co.<F1> 590
2,100 Ames Department Stores, Inc.<F1> 73
27,600 Bed Bath and Beyond, Inc. <F1> 985
29,400 BJ's Wholesale Club, Inc.<F1> 781
24,200 Borders Group, Inc.<F1> 349
1,500 Casey's General Stores, Inc. 20
11,500 CompUSA, Inc.<F1> 81
27,100 Costco Companies, Inc. <F1> 2,193
11,200 Dayton Hudson Corporation 754
88,832 Dollar General Corporation 3,115
2,600 Ethan Allen Interiors, Inc. 132
34,300 Family Dollar Stores, Inc. 828
24,000 Federated Department Stores, Inc. <F1> 1,121
104,900 Goody's Family Clothing, Inc. <F1> 944
17,100 Home Depot, Inc. 1,025
12,300 Kohls Corporation<F1> 817
Number Market Value
of Shares (in thousands)
---------- ---------------
RETAIL 9.6% (CONT.)
16,500 The Kroger Company<F1> $ 896
29,920 Lowe's Companies, Inc. 1,578
14,100 The Men's Wearhouse, Inc. <F1> 386
113,050 Office Depot, Inc.<F1> 2,487
27,800 Pier 1 Imports, Inc. 205
7,650 Regis Corporation 196
25,500 Ross Stores, Inc. 1,171
37,300 Safeway, Inc. <F1> 2,012
3,300 School Specialty, Inc.<F1> 62
18,600 Staples, Inc.<F1> 558
6,800 Stein Mart, Inc. <F1> 68
30,400 Wal-Mart Stores, Inc. 1,398
23,500 Walgreen Company 632
3,400 Whole Foods Market, Inc.<F1> 133
----------
25,590
----------
SCHOOLS 0.5%
17,100 Apollo Group, Inc. <F1> 423
2,400 ITT Educational Services, Inc.<F1> 59
3,800 Stayer Education, Inc. 132
25,850 Sylvan Learning Systems, Inc. <F1> 649
----------
1,263
----------
SECURITY SERVICES 0.2%
6,700 The Wackenhut Corporation - Class A 150
19,700 Wackenhut Corrections Corporation<F1> 366
----------
516
----------
SEMICONDUCTORS 0.7%
23,400 Intel Corporation 1,432
5,200 Maxim Integrated Products, Inc. <F1> 291
1,000 Micrel, Inc. <F1> 59
2,100 Vitesse Semiconductor Corporation<F1> 97
----------
1,879
----------
SHIPBUILDING 0.1%
4,500 Avondale Industries, Inc.<F1> 139
1,600 Newport News Shipbuilding, Inc. 42
----------
181
----------
SOFTWARE 1.5%
56,000 Avant! Corporation<F1> 756
6,900 Black Box Corporation<F1> 236
3,400 Citrix Systems, Inc.<F1> 145
13,400 Compuware Corporation<F1> 327
5,400 Electronic Arts, Inc.<F1> 274
2,200 Mercury Interactive Corporation<F1> 62
21,000 Microsoft Corporation <F1> 1,708
46,900 Software AG Systems, Inc.<F1> 387
3,800 Symantec Corporation<F1> 76
----------
3,971
----------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
TELECOMMUNICATIONS 1.1%
38,500 Cincinnati Bell, Inc. $ 871
25,624 MCI WorldCom, Inc.<F1> 2,106
----------
2,977
----------
TELECOMMUNICATIONS EQUIPMENT 0.5%
4,600 ACNielsen Corporation<F1> 128
1,600 Adtran, Inc.<F1> 28
5,200 ECI Telecom Ltd. 192
14,800 Lucent Technologies, Inc. 890
----------
1,238
----------
TEXTILES & APPAREL 0.3%
10,300 Tommy Hilfiger Corporation<F1> 720
11,600 Wolverine World Wide, Inc. 139
----------
859
----------
TRANSPORTATION 0.8%
34,200 Harley-Davidson, Inc. 2,039
----------
WASTE MANAGEMENT 0.7%
25,300 Allied Waste Industries, Inc. 448
13,600 Superior Services, Inc.<F1> 250
22,400 Waste Management, Inc. 1,266
----------
1,964
----------
Total Common Stocks (Cost $114,285) 157,346
----------
Principal Amount
(in thousands)
- ---------------
LONG-TERM INVESTMENTS 35.1%
CORPORATE CONVERTIBLE BONDS 0.1%
Office Depot, Inc. Notes, Principal Only,
$ 273 0.00%, 12/11/07 (convertible to Office Depot, Inc.
common stock) 248
----------
ASSET-BACKED SECURITIES 3.7%
AUTO LOAN RECEIVABLES 0.0%
Western Financial Grantor Trust,
52 Series 1995-2, Class A1, 7.10%, 7/01/00 52
----------
CREDIT CARD RECEIVABLES 3.4%
Chase Credit Card Master Trust:
2,300 Series 1995-2, Class A, 6.23%, 6/15/03 2,326
500 Series 1996-1, Class A, 5.55%, 9/15/03 501
Citibank Credit Card Master Trust, Principal Only:
3,300 Series 1996-1, Class A, 0.00%, 2/07/01 2,995
200 Series 1997-6, Class A, 0.00%, 8/15/06 144
HFC Private Label Credit Card Master Trust II,
58 Series 1994-2, Class A, 7.80%, 9/20/03 59
Household Affinity Credit Card Master Trust I,
500 Series 1993-2, Class A, 5.60%, 11/15/00 501
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
CREDIT CARD RECEIVABLES 3.4% (CONT.)
Sears Credit Account Master Trust:
$1,800 Series 1994-1, Class A, 7.00%, 8/15/00 $ 1,821
612 Series 1995-2, Class A, 8.10%, 1/15/01 627
----------
8,974
----------
HOME EQUITY LOAN RECEIVABLES 0.3%
Contimortgage Home Equity Loan Trust,
700 Series 1997-5, Class A5, 6.63%, 12/15/20 707
----------
CORPORATE BONDS 12.1%
Atlantic Richfield Co. Debentures,
300 8.50%, 4/01/12 356
BankAmerica Corporation Subordinated Notes,
350 7.75%, 7/15/02 368
BankBoston Corporation Subordinated Notes,
1,225 6.625%, 2/01/04 1,248
Bankers Trust Corporation Subordinated Debentures,
1,775 8.125%, 5/15/02 1,856
Barclays North American Capital Corp. Debentures,
250 9.75%, 5/15/21 275
CIT Group, Inc. Senior Notes,
950 5.57%, 12/08/03 930
Commonwealth Edison Debentures,
900 9.875%, 6/15/20 1,059
Compass Bancshares, Inc. Subordinated Notes,
400 8.375%, 9/15/04 419
Continental Bank Subordinated Notes,
300 12.50%, 4/01/01 331
Continental Cablevision, Inc. Debentures:
350 8.875%, 9/15/05 392
900 9.50%, 8/01/13 1,071
Dayton Hudson Corporation Debentures,
250 10.00%, 1/01/11 321
Donaldson,Lufkin & Jenrette Senior Notes:
1,000 6.00%, 12/01/01 1,002
800 6.875%, 11/01/05 815
Dresdner Bank New York Subordinated Debentures,
800 7.25%, 9/15/15 812
Duty Free International, Inc. Notes,
975 7.00%, 1/15/04 1,010
Federal Express Corporation Debentures,
250 9.625%, 10/15/19 262
Federal Express Corporation Notes,
500 9.65%, 6/15/12 606
General Motors Acceptance Corp. Medium Term Notes,
1,000 6.70%, 4/30/01 1,017
Georgia Pacific Corporation Debentures:
300 9.50%, 12/01/11 365
300 9.875%, 11/01/21 337
100 9.50%, 5/15/22 112
Goldman Sachs Group Notes,
1,500 6.25%, 2/01/03 (Acquired 2/01/96; Cost $1,496) <F2> 1,509
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
CORPORATE BONDS 12.1% (CONT.)
Keycorp Subordinated Notes,
$ 730 8.00%, 7/01/04 $ 782
Lehman Brothers Holdings, Inc. Notes:
350 6.65%, 11/08/99 353
200 8.75%, 5/15/02 213
Lehman Brothers, Inc. Senior Subordinated Notes,
700 10.00%, 5/15/99 701
Lehman Brothers, Inc. Debentures,
700 9.875%, 10/15/00 737
Marlin Water Trust Senior Notes,
800 7.09%, 12/15/01 (Acquired 12/9/98, Cost $805)<F2> 809
The May Department Stores Company Debentures,
300 9.875%, 6/15/21 334
Mercantile Bancorporation Senior Notes,
1,000 7.05%, 6/15/04 1,030
Merrill Lynch & Co. Notes,
925 6.875%, 11/15/18 912
NCNB Corporation Subordinated Notes,
750 10.20%, 7/15/15 984
News America Holdings, Inc. Debentures,
300 10.125%, 10/15/12 345
Paine Webber Group, Inc. Notes:
500 7.875%, 2/15/03 522
500 8.875%, 3/15/05 550
J.C. Penney Company, Inc. Debentures:
625 9.75%, 6/15/21 684
500 8.25%, 8/15/22 531
Rochester Telephone Debentures,
400 9.00%, 8/15/21 439
Salomon, Inc. Senior Notes:
350 7.75%, 5/15/00 358
575 6.75%, 2/15/03 589
Salomon Smith Barney Holdings, Inc. Notes,
700 6.875%, 6/15/05 718
Tenneco, Inc. Debentures,
425 7.45%, 12/15/25 412
U.S. Bancorp. Subordinated Notes,
975 6.625%, 5/15/03 995
USF&G Corporation Senior Notes:
1,000 8.375%, 6/15/01 1,045
350 7.125%, 6/01/05 356
U.S. West Communications Group Debentures,
575 8.875%, 6/01/31 628
Westdeutsche Landesbank Subordinated Notes,
700 6.05%, 1/15/09 677
----------
32,177
----------
MORTGAGE-BACKED SECURITIES 0.1%
Westam Mortgage Financial Corporation,
378 Series 11, Class A, 6.36%, 8/26/20 377
----------
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
INTERNATIONAL/YANKEE (U.S. $ DENOMINATED) 2.7%
ABN Amro Bank (Chicago) NV Bank Guarantee,
$1,000 7.25%, 5/31/05 $ 1,036
Banco Santander-Chile Notes,
475 6.50%, 11/01/05 470
Ford Capital BV Debentures,
325 9.875%, 5/15/02 358
Ford Capital BV Notes,
250 10.125%, 11/15/00 266
Hydro-Quebec Debentures:
350 11.75%, 2/01/12 504
500 9.75%, 1/15/18 558
Korea Development Bank Bonds,
585 7.125%, 9/17/01 585
Korea Electric Power Debentures:
290 7.75%, 4/01/13 277
200 6.75%, 8/01/27 188
Midland Bank PLC Subordinated Notes,
950 6.95%, 3/15/11 963
National Bank of Hungary Debentures,
250 8.875%, 11/01/13 284
Norsk Hydro A/S Debentures,
350 9.00%, 4/15/12 415
Pohang Iron & Steel Notes,
200 7.125%, 7/15/04 194
Quebec Province Debentures,
250 11.00%, 6/15/15 273
Sweden (Kingdom of) Debentures,
150 11.125%, 6/01/15 218
Wharf Capital International Ltd. Notes,
325 8.875%, 11/01/04 308
Wharf International Finance Ltd. Company Guarantee,
225 7.625%, 3/13/07 198
----------
7,095
----------
U.S. GOVERNMENT AGENCY-BACKED MORTGAGE ISSUES 1.0%
Federal Home Loan Mortgage Corporation (FHLMC)
Real Estate Mortgage Investment Conduit (REMIC):
362 Series 85, Class C, 8.60%, 1/15/21 372
293 Series 1169, Class D, 7.00%, 5/15/21 295
482 Series 1136, Class H, 6.00%, 9/15/21 478
389 Series 1201, Class E, 7.40%, 12/15/21 395
Federal National Mortgage Association (FNMA)
Real Estate Mortgage Investment Conduit (REMIC):
379 Series 1989-37, Class G, 8.00%, 7/25/19 392
319 Series 1990-30, Class E, 6.50%, 3/25/20 320
344 Series 1990-105, Class J, 6.50%, 9/25/20 344
----------
2,596
----------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
U.S. TREASURY OBLIGATIONS 15.4%
U.S. Treasury Bonds:
$ 2,825 10.75%, 8/15/05 $ 3,620
23,935 9.25%, 2/15/16 32,380
U.S. Treasury Strips, Principal Only,
6,550 0.00%, 11/15/04 4,870
----------
40,870
----------
Total Long-Term Investments (Cost $90,497) 93,096
----------
Number
of Shares
(in thousands)
SHORT-TERM INVESTMENTS 5.3%
INVESTMENT COMPANIES 5.3%
732 Financial Square Prime Obligation Fund 732
13,400 Short-Term Investments Co. Liquid Assets Portfolio 13,400
----------
14,132
----------
Total Short-Term Investments (Cost $14,132) 14,132
----------
Total Investments (Cost $218,914) 99.7% 264,573
----------
Other Assets, less Liabilities 0.3% 927
----------
TOTAL NET ASSETS 100.0% $265,500
==========
<F1>Non-income producing
<F2>Unregistered security
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
COMMON STOCKS 96.1%
APPLIANCES 1.7%
194,500 Maytag Corporation $ 13,299
----------
BANKING 9.4%
614,800 Bank of New York Company, Inc. 24,592
179,200 Mellon Bank Corporation 13,317
178,900 Northern Trust Corporation 16,660
433,400 Wells Fargo Company 18,717
----------
73,286
----------
BUILDING MATERIALS 1.2%
154,400 Martin Marietta Materials, Inc. 9,544
----------
BUSINESS MACHINES & SOFTWARE 3.4%
26,400 International Business Machines Corporation 5,523
79,800 Pitney Bowes, Inc. 5,581
262,400 Xerox Corporation 15,416
----------
26,520
----------
BUSINESS SERVICES 3.5%
187,200 Automatic Data Processing, Inc. 8,330
250,950 H & R Block, Inc. 12,077
349,800 The ServiceMaster Company 6,646
----------
27,053
----------
CHEMICALS 1.6%
223,900 Ecolab, Inc. 9,390
98,600 Valspar Corporation 3,414
----------
12,804
----------
COMMUNICATIONS & MEDIA 5.2%
83,800 CBS Corporation<F1> 3,818
288,650 Interpublic Group of Companies, Inc. 22,388
422,900 New York Times Company - Class A 14,590
----------
40,796
----------
CONSUMER PRODUCTS 5.1%
148,900 Avery Dennison Corporation 10,162
73,800 The Black &Decker Corporation 4,190
56,800 The Clorox Company 6,553
237,300 Masco Corporation 6,971
253,950 Newell Company 12,047
----------
39,923
----------
COSMETICS & SOAP 5.0%
234,100 Avon Products, Inc. 12,715
104,400 Estee Lauder Companies - Class A 10,453
55,000 Gillette Company 2,870
137,850 Procter & Gamble Company 12,932
----------
38,970
----------
Number Market Value
of Shares (in thousands)
---------- ---------------
DRUGS & MEDICAL SUPPLIES 13.1%
136,100 Abbott Laboratories $ 6,592
186,700 American Home Products Corporation 11,389
155,400 Baxter International, Inc. 9,790
183,100 Becton, Dickinson & Company 6,809
270,400 Bristol-Myers Squibb Company 17,187
108,900 Johnson & Johnson 10,618
173,550 McKesson Corporation 6,074
150,400 Medtronic, Inc. 10,819
134,200 Pfizer, Inc. 15,441
113,200 Warner-Lambert Company 7,691
----------
102,410
----------
ELECTRIC - UTILITIES 1.1%
314,200 NiSource Industries, Inc. 8,719
----------
FINANCIAL SERVICES 8.1%
338,100 Alliance Capital Management L.P. 9,382
77,500 American Express Company 10,128
281,975 Equifax 10,133
153,800 Federal National Mortgage Association 9,651
120,900 The FINOVA Group, Inc. 5,841
165,500 Household International, Inc. 8,327
123,800 Marsh & McLennan Companies, Inc. 9,478
----------
62,940
----------
FOOD, BEVERAGES & TOBACCO 2.6%
338,175 McCormick & Company, Incorporated 10,251
264,500 PepsiCo, Inc. 9,770
----------
20,021
----------
INSURANCE 4.3%
170,700 American General Corporation 12,632
172,000 MBIA, Inc. 11,567
147,300 Provident Companies, Inc. 5,800
89,900 ReliaStar Financial Corporation 3,391
----------
33,390
----------
MULTI-INDUSTRY 6.7%
163,400 Dover Corporation 6,036
44,500 Illinois Tool Works Inc. 3,427
206,500 Pentair, Inc. 9,706
96,400 Teleflex Incorporated 4,199
353,600 Tyco International, Ltd. 28,704
----------
52,072
----------
NATURAL GAS 1.5%
159,700 Enron Corporation 12,017
----------
OIL - DOMESTIC 0.9%
137,000 Phillips Petroleum Company 6,936
----------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
OIL - INTERNATIONAL 1.6%
121,950 Mobil Corporation $ 12,774
----------
PAPER & FOREST PRODUCTS 0.7%
83,800 Kimberly-Clark Corporation 5,138
----------
PRINTING & PUBLISHING 3.3%
198,200 Houghton Mifflin Company 8,845
299,200 McGraw-Hill, Inc. 16,531
----------
25,376
----------
REAL ESTATE INVESTMENT TRUSTS (REITS) 2.4%
195,700 AMB Property Corporation 4,305
117,300 Boston Properties, Inc. 4,259
163,900 Post Properties, Inc. 6,495
166,900 Prison Realty Trust, Inc. 3,255
----------
18,314
----------
RETAIL 8.6%
106,900 Albertson's, Inc. 5,505
343,700 CVS Corporation 16,369
297,300 Mattel, Inc. 7,693
218,600 Gap, Inc. 14,551
216,475 Hannaford Brothers Company 9,444
220,300 Longs Drug Stores Corporation 7,573
65,200 Tandy Corporation 4,723
35,400 Walgreen Company 951
----------
66,809
----------
TELECOMMUNICATIONS & EQUIPMENT 5.1%
370,300 ALLTEL Corporation 24,972
10,800 Ameritech Corporation 739
133,500 AT&T Corporation 6,742
117,592 Lucent Technologies, Inc. 7,070
----------
39,523
----------
Total Common Stock (Cost $491,899) 748,634
----------
PREFERRED STOCK 2.2%
FINANCIAL SERVICES 2.2%
192,900 Merrill Lynch Strypes
(convertible to Dollar General Corp. common stock) 7,909
72,400 Salomon Smith Barney, Inc.
(convertible to Cincinnati Bell, Inc. common stock) 5,068
65,900 PLC Capital Trust II
(convertible to Protective Life Corporation
common stock) 4,226
----------
Total Preferred Stock (Cost $14,921) 17,203
----------
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
LONG-TERM INVESTMENTS 0.3%
CORPORATE CONVERTIBLE BONDS 0.3%
$1,884 Imax Corporation,
5.75%, 4/01/03 (convertible to IMAX Corporation
common stock) $ 2,011
----------
Total Long-Term Investments (Cost $2,377) 2,011
----------
Number
of Shares
(in thousands)
- --------------
SHORT-TERM INVESTMENTS 2.0%
INVESTMENT COMPANIES 1.3%
146 Financial Square Prime Obligation Fund 146
10,061 Short-Term Investments Co. Liquid Assets Portfolio 10,061
----------
10,207
----------
Principal
Amount
(in thousands)
VARIABLE RATE DEMAND NOTES 0.7%
$ 5,000 American Family Insurance 5,000
----------
Total Short-Term Investments (Cost $15,207) 15,207
----------
Total Investments (Cost $524,404) 100.6% 783,055
----------
Liabilities, less Other Assets (0.6)% (4,391)
----------
TOTAL NET ASSETS 100.0% $778,664
==========
<F1>Non-income producing
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
COMMON STOCKS 93.5%
AEROSPACE & AIRCRAFT 1.6%
31,600 Allied Signal, Inc. $ 1,856
54,026 Boeing Company 2,195
7,700 General Dynamics Corporation 541
21,268 Lockheed Martin Corporation 916
3,800 Northrop Grumman Corporation 243
18,200 Raytheon Company 1,279
10,300 Rockwell International Corporation 532
8,600 Textron, Inc. 792
12,800 United Technologies Corporation 1,854
----------
10,208
----------
AIR TRANSPORTATION 0.5%
9,900 AMR Corporation <F1> 691
7,700 Delta Air Lines, Inc. 488
8,400 FDX Corporation <F1> 946
19,050 Southwest Airlines Company 620
4,700 US Airways Group, Inc. <F1> 256
----------
3,001
----------
APPLIANCES 0.2%
2,200 Armstrong World Industries, Inc. 120
5,300 Black & Decker Corporation 301
4,900 Maytag Corporation 335
3,100 Snap-On Tools, Inc. 101
4,600 Whirlpool Corporation 305
----------
1,162
----------
AUTOS & TRUCKS 1.5%
8,300 Autozone, Inc.<F1> 249
10,038 Dana Corporation 473
4,500 Eaton Corporation 413
68,600 Ford Motor Company 4,386
37,100 General Motors Corporation 3,300
11,237 Genuine Parts Company 337
5,600 ITT Industries, Inc. 202
4,240 PACCAR, Inc. 237
6,500 TRW, Inc. 273
----------
9,870
----------
BANKING 8.1%
6,000 AMSouth Bancorporation 285
66,694 Banc One Corporation 3,935
16,800 Bank of Boston Corporation 823
43,100 Bank of New York Company, Inc. 1,724
98,207 BankAmerica Corporation 7,071
5,200 Bankers Trust New York Corporation 468
17,600 BB&T Corporation 703
48,020 Chase Manhattan Corporation 3,974
128,068 Citigroup, Inc. 9,637
8,400 Comerica, Inc. 546
15,050 Fifth Third Bancorp 1,079
Number Market Value
of Shares (in thousands)
---------- ---------------
BANKING 8.1% (CONT.)
56,228 First Union Corporation $ 3,114
39,000 Firstar Corporation 1,172
32,242 Fleet Financial Group, Inc. 1,388
12,900 Huntington Bancshares Incorporated 457
9,900 J.P. Morgan & Co., Inc. 1,334
14,800 Mellon Bank Corporation 1,100
9,200 Mercantile Bancorporation, Inc. 524
6,000 Northern Trust Corporation 559
17,100 PNC Bank Corporation 990
12,700 Regions Financial Corporation 479
6,600 Republic New York Corporation 388
9,100 SouthTrust Corporation 363
8,700 State Street Corporation 761
9,400 Summit Bancorp. 398
17,600 Sun Trust Banks, Inc. 1,258
14,500 Synovus Financial Corp. 321
41,355 US Bancorp 1,533
7,400 Union Planters Corporation 317
11,500 Wachovia Corporation 1,011
33,637 Washington Mutual, Inc. 1,383
93,230 Wells Fargo & Company 4,026
----------
53,121
----------
BIO-TECHNOLOGY 0.3%
28,900 Amgen, Inc. <F1> 1,776
----------
BUILDING & HOUSING 0.1%
4,600 Fluor Corporation 153
18,400 Masco Corporation 541
6,100 The Stanley Works 186
----------
880
----------
BUILDING MATERIALS 0.1%
4,800 Johnson Controls, Inc. 350
2,900 Owens Corning 103
----------
453
----------
BUSINESS MACHINES & SOFTWARE 3.4%
8,100 Apple Computer, Inc. <F1> 373
95,709 COMPAQ Computer Corporation 2,136
6,800 Honeywell, Inc. 644
52,400 International Business Machines Corporation 10,961
81,618 Oracle Systems Corporation <F1> 2,209
15,500 Pitney-Bowes, Inc. 1,084
43,800 Sun Microsystems, Inc. <F1> 2,620
37,200 Xerox Corporation 2,186
----------
22,213
----------
BUSINESS SERVICES 2.9%
3,300 Autodesk, Inc. 98
34,900 Automatic Data Processing, Inc. 1,553
5,700 H & R Block, Inc. 274
8,800 Ceridian Corporation <F1> 322
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
BUSINESS SERVICES 2.9% (CONT.)
89,600 Cisco Systems, Inc. <F1> $10,220
30,587 Computer Associates International, Inc. 1,306
8,600 Computer Sciences Corporation <F1> 512
4,700 Deluxe Corporation 163
9,021 Dun & Bradstreet Corporation 332
28,000 Electronic Data Systems Corporation 1,505
9,000 Equifax Inc. 324
25,100 First Data Corporation 1,065
2,600 National Service Industries 101
8,800 Paychex, Inc. 449
15,100 Service Corporation International 313
15,000 Unisys Corporation<F1> 472
----------
19,009
----------
CHEMICALS 2.0%
12,500 Air Products and Chemicals, Inc. 588
12,600 Dow Chemical Company 1,653
63,900 Dupont (E.I.) De Nemours & Company 4,513
7,900 Ecolab, Inc. 331
3,100 Great Lakes Chemical Corporation 148
5,300 Hercules, Inc. 200
1,800 Millipore Corporation 55
35,500 Monsanto Company 1,606
6,900 Morton International, Inc. 279
5,100 Nalco Chemical Company 187
9,600 PPG Industries, Inc. 623
8,500 Praxair, Inc. 440
9,000 Rohm & Haas Company 403
10,100 Sherwin-Williams Company 314
6,300 Sigma-Aldrich Corporation 205
8,350 Union Carbide Corporation 433
24,300 The Williams Companies, Inc. 1,148
----------
13,126
----------
COMMUNICATIONS & MEDIA 3.7%
58,300 America Online, Inc.<F1> 8,322
4,350 Andrew Corporation <F1> 61
40,100 CBS Corporation<F1> 1,827
14,800 Clear Channel Communications, Inc. <F1> 1,029
20,900 Comcast Corporation - Class A 1,373
5,100 Dow Jones & Company, Inc. 278
16,000 Gannett Company, Inc. 1,133
4,300 Harcourt General, Inc. 205
7,550 Interpublic Group of Companies, Inc. 585
5,000 Knight-Ridder, Inc. 269
34,453 MediaOne Group, Inc. <F1> 2,810
10,800 New York Times Company - Class A 373
9,100 Omnicom Group, Inc. 660
4,323 The Times Mirror Company - Class A 253
69,600 Time Warner, Inc. 4,872
6,400 Tribune Company 534
----------
24,584
----------
Number Market Value
of Shares (in thousands)
---------- ---------------
COMPUTERS 1.5%
144,300 Dell Computer Corporation <F1> $ 5,943
28,500 EMC Corporation <F1> 3,105
8,500 Gateway 2000, Inc.<F1> 563
13,900 Seagate Technology, Inc. <F1> 387
9,400 Silicon Graphics, Inc. <F1> 120
----------
10,118
----------
CONSUMER DURABLES 0.3%
4,637 Eastman Chemical Company 258
18,350 Eastman Kodak Company 1,369
2,128 Polaroid Corporation 44
----------
1,671
----------
CONSUMER PRODUCTS 0.3%
7,200 Avery Dennison Corporation 491
16,400 Newell Company 778
18,800 RJR Nabisco Holdings Corp. 484
3,200 Tupperware Corporation 76
----------
1,829
----------
CONTAINERS 0.1%
2,800 Bemis Company, Inc. 98
6,900 Crown Cork & Seal Company, Inc. 224
8,900 Owens-Illinois, Inc. <F1> 258
4,904 Sealed Air Corporation<F1> 298
----------
878
----------
COSMETICS & SOAP 2.1%
14,200 Avon Products, Inc. 771
6,600 Clorox Company 762
16,600 Colgate-Palmolive Company 1,700
62,888 Gillette Company 3,282
6,600 International Flavors & Fragrances, Inc. 261
75,300 Procter & Gamble Company 7,064
----------
13,840
----------
DISTRIBUTION 0.0%
9,358 Ikon Office Solutions, Inc. 113
----------
DIVERSIFIED 0.4%
36,300 Unilever N.V. 2,357
----------
DRUGS 8.8%
86,100 Abbott Laboratories 4,170
3,600 Allergan, Inc. 324
5,300 Alza Corporation <F1> 178
74,800 American Home Products Corporation 4,563
3,100 Bard (C.R.), Inc. 152
16,200 Baxter International, Inc. 1,021
14,400 Becton, Dickinson & Company 536
112,740 Bristol-Meyers Squibb Company 7,166
15,450 Cardinal Health, Inc. 924
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
DRUGS 8.8% (CONT.)
9,500 Humana, Inc. <F1> $ 129
76,300 Johnson & Johnson 7,439
62,400 Eli Lilly & Company 4,594
33,100 Medtronic, Inc. 2,381
135,100 Merck & Company, Inc. 9,491
73,600 Pfizer, Inc. 8,469
28,855 Pharmacia & Upjohn, Inc. 1,616
83,400 Schering-Plough 4,029
5,400 St. Jude Medical, Inc. <F1> 150
18,800 Tenet Healthcare Corporation <F1> 444
5,800 Watson Pharmaceuticals, Inc.<F1> 235
----------
58,011
----------
ELECTRIC 0.7%
11,000 The AES Corporation 550
7,700 Ameren Corporation 298
9,632 CINenergy Corporation 287
12,600 Consolidated Edison Company of New York, Inc. 572
20,528 Duke Power Company 1,150
19,100 Edison International 468
7,600 General Public Utilities Corporation 290
17,300 PacifiCorp 289
15,300 Texas Utilities Company 608
----------
4,512
----------
ELECTRICAL EQUIPMENT 3.3%
24,800 Emerson Electric Company 1,600
185,900 General Electric Company 19,612
5,600 Grainger (W.W.), Inc. 281
----------
21,493
----------
ELECTRONICS 3.3%
4,200 Harris Corporation 145
57,600 Hewlett-Packard Company 4,543
189,200 Intel Corporation 11,577
34,000 Motorola, Inc. 2,724
8,500 National Semiconductor Corporation <F1> 106
2,700 Perkin-Elmer Corporation 292
3,450 Tektronix, Inc. 84
22,100 Texas Instruments, Inc. 2,257
3,400 Thomas & Betts Corporation 143
----------
21,871
----------
ENERGY 1.4%
10,900 American Electric Power Company 452
8,050 Baltimore Gas & Electric Company 226
8,200 Carolina Power & Light Company 331
11,500 Central & South West Corporation 285
11,550 Coastal Corporation 442
5,800 Consolidated Natural Gas Company 345
10,600 Dominion Resources, Inc. 436
Number Market Value
of Shares (in thousands)
---------- ---------------
ENERGY 1.4% (CONT.)
8,900 DTE Energy Company $ 363
14,900 Entergy Corporation 466
14,100 FirstEnergy Corp. 419
9,800 FPL Group, Inc. 552
5,900 New Century Energies, Inc. 207
11,600 Niagara Mohawk Power Corporation <F1> 155
3,300 NICOR, Inc. 120
9,000 Northern States Power Company 217
20,700 Pacific Gas & Electric Company 643
12,100 Peco Energy Company 574
12,300 Public Service Enterprises Group, Inc. 492
15,372 Reliant Energy, Inc. 435
14,017 Sempra Energy 291
6,400 Sonat, Inc. 229
39,600 Southern Company 1,072
13,200 Unicom Corporation 512
----------
9,264
----------
ENERGY - RAW MATERIALS 0.3%
19,990 Baker Hughes, Inc. 597
24,900 Halliburton Company 1,061
18,700 Occidental Petroleum Corporation 378
----------
2,036
----------
ENTERTAINMENT & LEISURE 1.0%
7,700 Brunswick Corporation 185
12,188 Hasbro, Inc. 416
15,587 Mattel, Inc. 403
76,800 McDonald's Corporation 3,254
10,200 Mirage Resorts, Incorporated <F1> 229
40,270 Viacom, Inc. - Class B <F1> 1,646
8,050 Wendy's International, Inc. 218
----------
6,351
----------
ENVIRONMENTAL SERVICES 0.0%
22,100 Laidlaw, Inc. - Class B 140
----------
FINANCE 1.3%
25,700 American Express Company 3,359
7,350 The Bear Stearns Companies Inc. 343
27,406 Household International, Inc. 1,379
7,200 Lehman Brothers Holdings, Inc. 400
20,100 Merrill Lynch & Company, Inc. 1,687
18,500 National City Corporation 1,327
----------
8,495
----------
FINANCIAL SERVICES 2.5%
41,290 Associates First Capital Corporation - Class A 1,830
3,500 Capital One Financial Corporation 608
17,015 Conseco, Inc. 537
6,600 Countrywide Credit Industries, Inc. 299
58,800 Federal National Mortgage Association 4,171
15,000 Franklin Resources, Inc. 600
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
FINANCIAL SERVICES 2.5% (CONT.)
6,500 Kansas City Southern Industries, Inc. $ 387
6,000 MBIA, Inc. 404
45,462 MBNA Corporation 1,281
32,766 Morgan Stanley Group, Inc. 3,250
9,000 SLM Holding Corporation 384
22,700 The Charles Schwab Corporation 2,491
----------
16,242
----------
FOOD, BEVERAGES & TOBACCO 4.6%
32,108 Archer-Daniels-Midland Company 482
15,500 Bestfoods 778
25,200 Campbell Soup Company 1,033
139,800 Coca-Cola Company 9,507
21,200 Coca-Cola Enterprises Inc. 731
26,450 ConAgra, Inc. 658
9,800 Dardeen Restaurants, Inc. 219
10,000 Fortune Brands, Inc. 395
8,300 General Mills, Inc. 607
20,500 Heinz (H.J.) Company 957
8,300 Hershey Foods Corporation 437
21,900 Kellogg Company 810
21,100 Lowe's Companies, Inc 1,113
83,200 PepsiCo, Inc. 3,073
138,100 Philip Morris Companies, Inc. 4,842
14,000 Pioneer Hi-Bred International, Inc. 523
7,400 Quaker Oats Company 478
18,600 Ralston-Ralston Purina Group 567
51,700 Sara Lee Corporation 1,150
18,100 Sysco Corporation 537
8,220 Tricon Global Restaurants, Inc. <F1> 529
10,900 UST, Inc. 304
6,800 Wrigley (Wm) Jr. Company 603
----------
30,333
----------
GOLD & PRECIOUS METALS 0.1%
21,200 Barrick Gold Corporation 427
9,600 Freeport McMoRan Copper & Gold, Inc. 147
12,600 Homestake Mining Company 120
15,261 Placer Dome, Inc. 216
----------
910
----------
HEALTH CARE SERVICES & SUPPLIES 1.1%
2,900 Bausch & Lomb, Inc. 218
23,000 Boston Scientific Corporation <F1> 979
34,928 Columbia/HCA Healthcare Corporation 862
6,300 HCR Manor Care, Inc.<F1> 175
25,700 HEALTHSOUTH Corporation <F1> 345
17,342 IMS Health Incorporated 520
15,694 McKesson HBOC, Inc. 549
10,100 United Healthcare Corporation 567
46,600 Warner-Lambert Company 3,166
----------
7,381
----------
Number Market Value
of Shares (in thousands)
---------- ---------------
HOSPITAL SUPPLIES & SERVICES 0.0%
6,500 Biomet, Inc. $ 267
----------
HOUSEHOLD PRODUCTS 0.1%
11,100 Federated Department Stores <F1> 518
----------
INSURANCE 3.3%
7,694 Aetna Life and Casualty Company 675
46,546 Allstate Corporation 1,693
14,300 American General Corporation 1,058
69,622 American International Group, Inc. 8,176
9,200 Aon Corporation 630
8,800 Chubb Corporation 521
11,700 CIGNA Corporation 1,020
10,200 Cincinnati Financial Corporation 412
12,600 The Hartford Financial Services Group, Inc. 743
6,225 Jefferson-Pilot Corporation 419
24,604 KeyCorp 761
5,500 Lincoln National Corporation 528
14,560 Marsh & McLennan Companies, Inc. 1,115
6,400 MGIC Investment Corporation 311
3,900 Progressive Corporation 560
8,300 Provident Companies, Inc. 327
7,700 Providian Corporation 994
7,400 SAFECO Corporation 294
14,332 St. Paul Companies, Inc. 411
7,900 Torchmark Corporation 270
7,400 Transamerica Corporation 527
8,000 UNUM Corporation 437
----------
21,882
----------
LIQUOR 0.5%
27,100 Anheuser-Busch Companies, Inc. 1,982
4,200 Brown-Foreman Corporation - Class B 309
22,600 Seagram Company Ltd. 1,297
----------
3,588
----------
MACHINERY - AGRICULTURE & AUTOMOTIVE 0.0%
3,700 Case Equipment 128
----------
MACHINERY - INDUSTRIAL 0.0%
3,700 McDermott International, Inc. 107
9,500 Thermo Electron Corporation <F1> 153
----------
260
----------
MEDICAL INSTRUMENTS 0.1%
17,100 Guidant Corporation 918
----------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
METALS & MINERALS 0.2%
12,160 Allegheny Teledyne, Inc. $ 272
4,700 Nucor Corporation 276
17,266 USX Corporation-Marathon Group, Inc. 540
4,793 USX Corporation-US Steel Group, Inc. 145
----------
1,233
----------
MISCELLANEOUS 0.7%
20,900 Applied Materials, Inc. <F1> 1,121
4,100 Mallinckrodt Group, Inc. 144
8,200 PP&L Resources, Inc. 229
14,300 Solectron Corporation <F1> 693
19,400 3 Com Corporation <F1> 507
22,800 3M Corporation 2,029
----------
4,723
----------
MULTI-INDUSTRY 0.9%
46,141 Cendant Corporation<F1> 830
13,200 Corning, Inc. 756
6,200 Loews Corporation 454
9,624 Tenneco, Inc. 260
46,348 Tyco International, Ltd. 3,766
----------
6,066
----------
NATURAL GAS 0.2%
18,800 Enron Corporation 1,415
----------
NON-FERROUS METALS 0.4%
13,250 Alcan Aluminum Ltd. 421
21,300 Alcoa, Inc. 1,326
8,800 Englehard Corporation 169
8,100 Inco, Ltd. 155
9,436 Newmont Mining Corporation 227
3,300 Phelps Dodge Corporation 209
3,500 Reynolds Metals Company 218
----------
2,725
----------
OFFICE EQUIPMENT 0.1%
21,500 Novell, Inc. <F1> 478
----------
OIL - DOMESTIC 0.7%
5,600 Amerada Hess Corporation 319
7,300 Anadarko Petroleum Corporation 277
4,600 Ashland, Inc. 194
18,500 Atlantic Richfield Company 1,553
9,592 Burlington Resources, Inc. 442
5,050 Columbia Gas System, Inc. 243
5,208 Kerr-McGee Corporation 221
13,800 Phillips Petroleum Company 699
5,700 Sun Company, Inc. 204
13,100 Unocal Corporation 544
----------
4,696
----------
Number Market Value
of Shares (in thousands)
---------- ---------------
OIL - INTERNATIONAL 4.4%
7,400 Apache Corporation $ 227
37,000 Chevron Corporation 3,691
137,900 Exxon Corporation 11,454
44,200 Mobil Corporation 4,630
121,600 Royal Dutch Petroleum Company 7,137
30,300 Texaco, Inc. 1,901
----------
29,040
----------
OIL & GAS SERVICES 0.3%
30,400 Schlumberger, Ltd. 1,942
15,338 Union Pacific Resources Group 215
----------
2,157
----------
PAPER & FOREST PRODUCTS 1.0%
2,500 Boise Cascade Corporation 101
5,500 Champion International Corporation 301
13,400 Fort James Corporation 509
4,800 Georgia-Pacific Corporation 444
16,600 International Paper Company 885
30,712 Kimberly-Clark Corporation 1,883
4,972 Louisiana Pacific Corporation 103
6,200 Mead Corporation 259
3,250 Temple-Inland, Inc. 224
4,050 Union Camp Corporation 321
6,825 Westvaco Corporation 204
10,750 Weyerhaeuser Company 722
5,800 Willamette Industries 271
----------
6,227
----------
POLLUTION CONTROL 0.1%
9,400 Browning-Ferris Industries, Inc. 375
----------
PRINTING & PUBLISHING 0.1%
10,600 McGraw-Hill, Inc. 586
7,300 R.R. Donnelley & Sons Company 258
----------
844
----------
PRODUCTION 0.9%
20,300 Caterpillar, Inc. 1,307
5,600 Cooper Industries, Inc. 271
7,500 Danaher Corporation 498
12,900 Deere & Company 555
13,600 Dover Corporation 502
1,900 FMC Corporation <F1> 124
14,200 Illinois Tool Works, Inc. 1,094
8,900 Ingersoll-Rand Company 616
6,366 Pall Corporation 117
6,525 Parker-Hannifin Corporation 306
4,700 Raychem Corporation 124
4,900 Timken Company 109
----------
5,623
----------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
RAILROADS 0.5%
26,643 Burlington Northern Santa Fe $ 976
11,820 CSX Corporation 582
20,500 Norfolk Southern Corporation 670
13,400 Union Pacific Corporation 804
----------
3,032
----------
RETAIL 5.3%
13,300 Albertson's, Inc. 685
4,400 American Greetings Corporation 115
14,900 American Stores Company 470
5,400 Circuit City Stores, Inc. 332
6,000 Consolidated Stores Corporation<F1> 206
12,421 Costco Companies, Inc.<F1> 1,005
25,000 Dayton Hudson Corporation 1,683
6,600 Dillard Department Stores, Inc. - Class A 183
10,625 Dollar General Corporation 373
9,000 Fred Meyer, Inc. <F1> 487
32,350 Gap, Inc. 2,153
83,600 Home Depot, Inc. 5,011
28,500 Kmart Corporation <F1> 424
8,600 Kohl's Corporation<F1> 571
13,900 Kroger Corporation <F1> 755
12,311 The Limited, Inc. 539
19,014 The May Department Stores Company <F1> 757
8,400 Nordstrom, Inc. 296
14,900 J.C. Penney Company, Inc. 680
3,300 Pep Boys-Manny, Moe & Jack 47
14,000 Rite Aid Corporation 326
27,600 Safeway, Inc.<F1> 1,489
21,700 Sears Roebuck and Company 998
25,350 Staples, Inc. <F1> 761
7,000 Supervalu, Inc. 146
5,700 Tandy Corporation 413
17,400 TJX Companies, Inc. 580
17,025 Toys 'R' Us, Inc. <F1> 370
56,600 Walgreen Company 1,521
252,200 Wal-Mart Stores, Inc. 11,601
8,000 Winn-Dixie Stores, Inc. 287
----------
35,264
----------
SAVINGS & LOAN 0.4%
38,500 Federal Home Loan Mortgage Corporation 2,416
3,400 Golden West Financial Corporation 340
----------
2,756
----------
SEMICONDUCTORS 0.2%
7,500 Advanced Micro Devices, Inc. <F1> 123
4,500 KLA-Tencor Corporation <F1> 223
7,100 LSI Logic Corp. <F1> 242
13,500 Micron Technology Incorporated 501
----------
1,089
----------
Number Market Value
of Shares (in thousands)
---------- ---------------
SOFTWARE 3.8%
3,300 Adobe Systems Incorporated $ 209
13,400 BMC Software, Inc. <F1> 578
19,800 Compuware Corporation <F1> 483
284,300 Microsoft Corporation <F1> 23,118
16,200 Parametric Technology Company <F1> 212
14,400 PeopleSoft, Inc. <F1> 197
----------
24,797
----------
TELECOMMUNICATIONS 9.5%
32,500 Airtouch Communications, Inc. <F1> 3,035
15,600 Alltell Corporation 1,052
62,300 Ameritech Corporation 4,264
177,942 AT&T Corporation 8,986
12,300 Ascend Communications, Inc. <F1> 1,188
88,008 Bell Atlantic Corporation 5,071
110,600 BellSouth Corp. 4,949
7,300 Cabletron Systems <F1> 69
7,500 CenturyTel, Inc. 302
10,400 Frontier Corporation 574
54,700 GTE Corporation 3,662
149,984 Lucent Technologies, Inc. 9,018
103,980 MCI WorldCom, Inc.<F1> 8,546
16,200 Nextel Communications, Inc.<F1> 663
110,988 SBC Communications, Inc. 6,215
25,300 Sprint Corporation 2,595
24,950 Sprint Corp. (PCS Group) 1,057
28,545 US West, Inc. 1,493
----------
62,739
----------
TELECOMMUNICATIONS EQUIPMENT 0.6%
8,400 General Instrument Corporation<F1> 307
37,680 Nortel Networks Corporation 2,569
11,000 Tellabs, Inc. <F1> 1,203
----------
4,079
----------
TEXTILES & APPAREL 0.4%
22,100 CVS Corporation 1,052
3,600 Liz Claiborne, Inc. 119
15,500 Nike, Inc. - Class B 964
7,454 VF Corporation 384
----------
2,519
----------
TIRE & RUBBER 0.1%
4,800 Cooper Tire & Rubber Company 105
4,100 Goodrich (B.F.) Company 163
8,462 Goodyear Tire & Rubber Company 484
----------
752
----------
TRANSPORTATION EQUIPMENT 0.0%
1,700 Cummins Engine Company, Inc. 91
----------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
TRAVEL & RECREATION 0.9%
34,800 Carnival Corporation $ 1,436
116,600 The Walt Disney Company 3,702
7,150 Harrahs Entertainment, Inc. <F1> 157
14,700 Hilton Hotels Corporation 230
13,500 Marriott International, Inc. - Class A 565
----------
6,090
----------
TRUCKING 0.0%
3,550 Ryder System, Inc. 94
----------
WASTE MANAGEMENT 0.3%
33,940 Waste Management, Inc. 1,918
----------
Total Common Stock (Cost $282,634) 615,630
----------
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
SHORT-TERM INVESTMENTS 6.3%
U.S. TREASURIES 0.4%
$ 3,000 U.S. Treasury Bill, 4.19%, 5/27/99 $ 2,991
----------
Total U.S. Treasuries (Cost $2,991) 2,991
----------
VARIABLE RATE DEMAND NOTES 5.9%
21,952 American Family Financial Services, Inc. 21,952
16,946 Warner-Lambert Co. 16,946
----------
Total Variable Rate Demand Notes (Cost $38,898) 38,898
----------
Total Short-Term Investments (Cost $41,889) 41,889
----------
Total Investments (Cost $324,523) 99.8% 657,519
----------
Other Assets, less Liabilities 0.2% 1,114
----------
TOTAL NET ASSETS 100.0% $658,633
==========
<F1> Non-income producing
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
COMMON STOCKS 93.7%
AEROSPACE & AIRCRAFT 1.8%
124,500 Gulfstream Aerospace Corporation <F1> $ 6,069
----------
AIR TRANSPORTATION 2.8%
53,300 FDX Corporation <F1> 6,000
108,200 Southwest Airlines Company 3,523
----------
9,523
----------
BANKING 4.1%
50,700 Fifth Third Bancorp 3,635
114,700 State Street Corporation 10,036
----------
13,671
----------
BUSINESS MACHINES & SOFTWARE 2.5%
75,000 Microsoft Corporation <F1> 6,099
36,200 Sun Microsystems, Inc. <F1> 2,165
----------
8,264
----------
BUSINESS SERVICES 11.7%
101,300 Cintas Corporation 6,964
39,400 Computer Sciences Corporation<F1> 2,347
131,800 Convergys Corporation <F1> 2,455
197,500 First Data Corporation 8,381
158,500 Pittston Brink's Group 4,180
67,100 Sabre Group Holdings, Inc. <F1> 3,498
312,700 SunGard Data Systems, Inc. <F1> 9,987
48,000 Unisys Corporation <F1> 1,509
----------
39,321
----------
COMMUNICATIONS & MEDIA 4.9%
25,500 Clear Channel Communications, Inc. <F1> 1,772
67,600 Infinity Broadcasting,Inc. <F1> 1,872
93,100 Interpublic Group of Companies, Inc. 7,221
78,000 Omnicom Group, Inc. 5,655
----------
16,520
----------
COMPUTERS 1.6%
30,800 EMC Corporation <F1> 3,355
46,100 Dell Computer Corporation <F1> 1,899
----------
5,254
----------
CONSUMER PRODUCTS 1.3%
91,600 Newell Company 4,345
----------
DRUGS 7.1%
43,900 Elan Corporation, PLC ADR <F1> 2,261
45,000 Eli Lilly & Company 3,313
50,500 Merck & Co., Inc. 3,548
25,100 Pfizer, Inc. 2,888
62,600 Schering-Plough Corporation 3,024
49,800 Warner-Lambert Company 3,383
130,200 Watson Pharmaceuticals, Inc.<F1> 5,273
----------
23,690
----------
GROWTH FUND
SCHEDULE OF INVESTMENTS(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
ELECTRONICS & SCIENTIFIC INSTRUMENTS 2.6%
38,550 Cisco Systems, Inc. <F1> $ 4,511
115,970 Molex, Inc. - Class A 3,349
9,500 Motorola, Inc. 761
----------
8,621
----------
FINANCIAL SERVICES 6.1%
86,800 Associates First Capital Corporation 3,846
75,500 Federal National Mortgage Association 4,738
37,000 Franklin Resources, Inc. 1,480
259,075 MBNA Corporation 7,303
30,900 Morgan Stanley Group, Inc. 3,065
----------
20,432
----------
HEALTH CARE SERVICES & SUPPLIES 3.1%
49,350 Cardinal Health, Inc. 2,952
76,400 IMS Health Incorporated 2,292
83,900 Stryker Corporation 5,134
----------
10,378
----------
INSURANCE 5.5%
103,550 AFLAC, Inc. 5,618
68,786 American International Group, Inc. 8,078
95,300 MGIC Investment Corporation 4,628
----------
18,324
----------
MEDICAL INSTRUMENTS 2.6%
45,900 Guidant Corporation <F1> 2,464
88,900 Medtronic, Inc. 6,395
----------
8,859
----------
MULTI-INDUSTRY 4.6%
189,100 Tyco International, Ltd. 15,364
----------
NATURAL GAS 2.0%
87,300 Enron Corporation 6,569
----------
RETAIL 16.2%
22,400 Abercrombie & Fitch Co.<F1> 2,131
46,000 Bed Bath & Beyond, Inc. <F1> 1,642
101,700 Costco Companies, Inc. <F1> 8,231
40,500 Dayton Hudson Corp. 2,726
92,400 Federated Department Stores, Inc. <F1> 4,314
64,200 Home Depot, Inc. 3,848
44,900 Kohls Corporation <F1> 2,983
58,800 The Kroger Company <F1> 3,194
113,900 Lowe's Companies, Inc. 6,008
114,900 Office Depot, Inc. <F1> 2,528
133,600 Safeway, Inc. <F1> 7,206
67,400 Staples, Inc.<F1> 2,022
85,000 Walgreen Company 2,284
110,200 Wal-Mart Stores, Inc. 5,069
----------
54,186
----------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
SEMICONDUCTORS 1.6%
85,200 Intel Corporation $ 5,213
----------
TELECOMMUNICATIONS 3.3%
143,800 Cincinnati Bell, Inc. 3,254
96,448 MCI WorldCom, Inc.<F1> 7,927
----------
11,181
----------
TELECOMMUNICATIONS EQUIPMENT 0.9%
52,800 Lucent Technologies, Inc. 3,175
----------
TEXTILES & APPAREL 0.8%
37,100 Tommy Hilfiger Corporation<F1> 2,592
----------
TRANSPORTATION 2.2%
126,700 Harley-Davidson, Inc. 7,555
----------
TRAVEL & RECREATION 3.0%
182,600 Carnival Corporation - Class A 7,532
82,900 The Walt Disney Company 2,632
----------
10,164
----------
WASTE MANAGEMENT 1.4%
86,000 Waste Management, Inc. 4,859
----------
Total Common Stock (Cost $211,776) 314,129
----------
Principal
Amount
(in thousands)
- --------------
LONG-TERM INVESTMENTS 0.2%
CORPORATE CONVERTIBLE BONDS 0.2%
Office Depot, Inc. Notes, Principal Only,
$ 749 0.00%, 12/11/07 (convertible to Office Depot, Inc.
common stock) 682
----------
Total Long-Term Investments (Cost $653) 682
----------
Number
of Shares
(in thousands)
- --------------
SHORT-TERM INVESTMENTS 6.3%
INVESTMENT COMPANIES 3.9%
144 Financial Square Prime Obligation Fund 144
13,022 Short-Term Investments Co. Liquid Assets Portfolio 13,022
----------
Total Investment Companies (Cost $13,166) 13,166
----------
Principal
Amount Market Value
(in thousands) (in thousands)
- -------------- --------------
VARIABLE RATE DEMAND NOTES 2.4%
$8,000 Warner-Lambert Co. $8,000
----------
Total Variable Rate Demand Notes (Cost $8,000) 8,000
----------
Total Short-Term Investments (Cost $21,166) 21,166
----------
Total Investments (Cost $233,595) 100.2% 335,977
Other Assets, less Liabilities (0.2)% (532)
----------
TOTAL NET ASSETS 100.0% $335,445
==========
<F1>Non-income producing
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SPECIAL GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
COMMON STOCKS 89.0%
AEROSPACE & AIRCRAFT 0.3%
41,930 Cordant Technologies, Inc. $ 1,934
----------
BANKING 1.9%
28,300 Charter One Financial, Inc. 884
113,685 Dime Bancorp, Inc. 2,622
111,315 Marshall & Ilsley Corporation 7,792
----------
11,298
----------
BUILDING MATERIALS 1.3%
34,220 Martin Marietta Materials, Inc. 2,115
84,780 Southdown, Inc. 5,431
----------
7,546
----------
BUSINESS MACHINES 0.8%
16,700 Lexmark International Group, Inc. Class-A <F1> 2,062
46,800 NCR Corporation <F1> 1,919
44,300 Storage Technology Corporation <F1> 856
----------
4,837
----------
BUSINESS SERVICES 10.6%
50,335 ACNielson Corporation <F1> 1,403
171,380 Ciber, Inc. <F1> 3,235
90,055 Concord EFS, Inc. <F1> 3,023
92,400 CSG Systems International, Inc.<F1> 3,569
323,615 Fiserv, Inc. <F1> 18,952
461,530 Gartner Group, Inc. - Class A <F1> 8,797
65,600 Keane, Inc. 1,628
373,900 Nova Corporation <F1> 9,721
89,750 Robert Half International, Inc. <F1> 2,143
28,875 Snyder Communications, Inc. 848
105,715 Sterling Commerce, Inc. <F1> 3,310
153,410 Sungard Data Systems, Inc. <F1> 4,899
----------
61,528
----------
COMMUNICATIONS & MEDIA 0.8%
23,400 Echostar Communications, Class A <F1> 2,347
50,350 Lee Enterprises, Inc. 1,441
20,000 Valassis Communications, Inc. 1,118
----------
4,906
----------
COMPUTERS 1.0%
252,210 Tech Data Corporation <F1> 5,895
----------
DRUGS & MEDICAL SUPPLIES 2.4%
61,500 Forest Laboratories, Inc. <F1> 2,737
123,500 Mylan Laboratories, Inc. 2,802
208,100 Watson Pharmaceuticals, Inc. <F1> 8,428
----------
13,967
----------
Number Market Value
of Shares (in thousands)
---------- ---------------
FINANCIAL SERVICES 2.8%
71,820 Kansas City Southern Industries, Inc. $ 4,278
106,295 T. Rowe Price Associates, Inc. 4,004
70,975 The Charles Schwab Corporation 7,790
----------
16,072
----------
FUNERAL SERVICES 1.7%
488,000 Stewart Enterprises, Inc. 9,699
----------
FURNITURE 0.5%
132,205 Legget & Platt, Inc. 3,049
----------
HEALTH CARE SERVICES & SUPPLIES 12.9%
245,100 Amerisource Health Corporation <F1> 6,783
276,840 Covance Inc. <F1> 6,073
56,995 Dentsply International, Inc. 1,493
1,692,259 Health Management Associates, Inc. - Class A <F1> 26,442
263,895 Henry Schein, Inc. <F1> 6,911
198,530 Lincare Holdings, Inc. <F1> 5,881
54,300 Parexel International Corporation <F1> 1,322
48,520 STERIS Corporation <F1> 861
114,770 Sybron International Corporation <F1> 3,178
41,600 Trigon Healthcare, Inc. <F1> 1,321
280,650 Universal Health Services, Inc. - Class B <F1> 14,541
----------
74,806
----------
HOSPITAL SUPPLIES & SERVICES 5.7%
1,079,005 Omnicare, Inc. 25,963
150,840 PSS World Medical, Inc. <F1> 1,471
108,300 Shared Medical Systems Corporation 5,882
----------
33,316
----------
HOUSING 1.6%
428,545 Toll Brothers, Inc. <F1> 9,160
----------
INSURANCE 12.2%
264,375 AMBAC, Inc. 15,962
256,500 MGIC Investment Corporation 12,456
100,900 The PMI Group, Inc. 5,631
737,080 Protective Life Corporation 28,875
95,600 Reliastar Financial Corporation 3,515
127,500 Torchmark Corporation 4,359
----------
70,798
----------
MEDICAL INSTRUMENTS 1.0%
104,800 Biomet, Inc. 4,297
21,100 Stryker Corporation 1,291
5,588
----------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SPECIAL GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
OIL & GAS SERVICES 2.3%
103,900 Burlington Resources, Inc. $ 4,786
287,600 Enron Oil & Gas Company 5,465
193,130 Petroleum Geo-Services <F1> 3,235
----------
13,486
----------
OIL REFINING 1.2%
224,500 Tosco Corporation 6,005
49,500 Valero Energy Corporation 1,104
----------
7,109
----------
REAL ESTATE INVESTMENT TRUSTS (REITS) 1.2%
345,151 Prison Realty Trust, Inc. 6,730
----------
RESTAURANTS 1.0%
137,980 Papa John's International, Inc. <F1> 5,545
----------
RETAIL 16.2%
324,580 BJ's Wholesale Club, Inc. <F1> 8,622
156,079 Bed Bath and Beyond, Inc. <F1> 5,570
255,025 Borders Group, Inc. <F1> 3,682
126,434 CompUSA, Inc. <F1> 885
967,811 Dollar General Corporation 33,934
375,695 Family Dollar Stores, Inc. 9,063
904,088 Office Depot, Inc. <F1> 19,890
266,445 Ross Stores, Inc. 12,240
----------
93,886
----------
SCHOOLS 0.8%
188,360 Apollo Group, Inc. <F1> 4,662
----------
SEMICONDUCTORS 1.5%
92,700 Atmel Corporation <F1> 1,692
55,025 Maxim Integrated Products <F1> 3,081
23,000 Vitesse Semiconductor Corporation <F1> 1,065
65,800 Xilinx, Inc. <F1> 3,002
----------
8,840
----------
SHIPBUILDING 0.1%
16,600 Newport News Shipbuilding, Inc. 435
----------
SOFTWARE 4.1%
150,120 Cadence Design Systems, Inc. <F1> 2,036
36,700 Citrix Systems, Inc. <F1> 1,560
141,200 Compuware Corporation <F1> 3,442
54,315 Electronic Arts, Inc. <F1> 2,760
27,000 Legato Systems, Inc. <F1> 1,092
243,665 Network Associates, Inc. <F1> 3,229
40,200 Symantec Corporation <F1> 799
138,190 Synopsys, Inc. <F1> 6,512
49,600 Teradyne, Inc. <F1> 2,341
----------
23,771
----------
Number Market Value
of Shares (in thousands)
---------- ---------------
TELECOMMUNICATIONS EQUIPMENT 1.4%
57,150 Comverse Technology, Inc. <F1> $ 3,665
53,700 ECI Telecommunications Ltd. 1,980
80,400 FORE Systems, Inc. <F1> 2,713
----------
8,358
----------
TRAVEL & RECREATION 0.9%
139,660 Royal Caribbean Cruises LTD 5,159
----------
WASTE MANAGEMENT 0.8%
273,845 Allied Waste Industries, Inc. <F1> 4,844
----------
Total Common Stock (Cost $417,626) 517,224
----------
Number
of Shares
(in thousands)
- --------------
SHORT-TERM INVESTMENTS 10.3%
INVESTMENT COMPANIES 8.6%
20,668 Financial Square Prime Obligation Fund 20,668
28,988 Short-Term Investments Co. Liquid Assets Portfolio 28,988
----------
Total Investment Companies (Cost $49,656) 49,656
----------
Principal
Amount
(in thousands)
- --------------
VARIABLE RATE DEMAND NOTES 1.7%
$ 5,000 Pitney Bowes 5,000
5,000 Warner-Lambert Co. 5,000
----------
Total Variable Rate Demand Notes (Cost $10,000) 10,000
----------
Total Short-Term Investments (Cost $59,656) 59,656
----------
Total Investments (Cost $477,282) 99.3% 576,880
----------
Other Assets, less Liabilities 0.7% 4,279
----------
TOTAL NET ASSETS 100.0% $581,159
==========
<F1> Non-income producing
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
EMERGING GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
COMMON STOCKS 90.3%
AIR TRANSPORTATION 0.3%
17,580 SkyWest, Inc. $ 457
----------
BUSINESS SERVICES 15.6%
397,815 ABR Information Services, Inc. <F1> 6,962
79,715 The BISYS Group, Inc.<F1> 4,046
131,135 F.Y.I. Incorporated <F1> 4,065
163,310 International Telecommunication Data Systems, Inc.<F1> 1,847
30,100 Lason, Inc. <F1> 1,191
88,335 META Group, Inc. <F1> 806
12,500 NCO Group, Inc.<F1> 408
185,650 Sykes Enterprises, Inc.<F1> 3,806
22,315 Tetra Tech, Inc.<F1> 540
----------
23,671
----------
COMMUNICATIONS 0.3%
17,900 True North Communications, Inc. 483
----------
COMPUTERS 1.4%
23,110 CDW Computer Centers, Inc. <F1> 2,068
----------
CONSTRUCTION 0.6%
32,900 Granite Construction Incorporated 940
----------
DATA PROCESSING 15.5%
114,330 Affiliated Computer Services, Inc.<F1> 4,373
376,791 Axciom Corporation <F1> 9,514
127,900 National Computer Systems, Inc. 3,580
132,075 National Data Corporation 6,092
----------
23,559
----------
DRUGS 0.5%
14,405 Barr Laboratories, Inc.<F1> 428
13,700 Shire Pharmaceuticals Group PLC <F1> 296
----------
724
----------
ELECTRICAL EQUIPMENT 1.0%
62,270 Amkor Technology, Inc.<F1> 607
5,600 Micrel, Incorporated <F1> 332
17,400 Quanta Services, Inc. <F1> 501
----------
1,440
----------
ENTERTAINMENT & LEISURE 3.3%
179,735 American Skiing Company<F1> 921
78,330 Cinar Films, Inc. - Class B <F1> 1,635
50,700 Imax Corporation<F1> 960
46,335 Steiner Leisure Ltd.<F1> 1,471
----------
4,987
----------
Number Market Value
of Shares (in thousands)
---------- ---------------
FINANCIAL SERVICES 2.6%
232,610 ARM Financial Group, Inc. - Class A $ 3,228
41,900 Federated Investors, Inc. 673
----------
3,901
----------
HEALTH CARE SERVICES & SUPPLIES 9.9%
30,500 Bindley Western Industries, Inc. 942
7,100 Express Scripts, Inc. <F1> 523
19,600 IDEXX Laboratories, Inc. <F1> 444
23,445 IDX Systems Corporation <F1> 381
182,565 NCS HealthCare, Inc. <F1> 2,373
95,800 PAREXEL International Corporation<F1> 2,305
99,000 Pharmaceutical Product Development, Inc.<F1> 2,883
99,400 Universal Health Services, Inc. 5,150
----------
15,001
----------
INSURANCE 9.8%
192,265 Amerin Corporation<F1> 4,506
19,430 Arthur J. Gallagher & Co. 923
18,865 CMAC Investment Corporation 866
252,751 Enhance Financial Services Group, Inc. 5,229
48,445 Financial Security Assurance Holdings Ltd. 2,767
28,880 Terra Nova (Bermuda) Holdings Ltd. 648
----------
14,939
----------
MEDICAL INSTRUMENTS 0.8%
13,800 CONMED Corporation <F1> 399
3,200 VISX, Inc. <F1> 412
8,500 Xomed Surgical Products, Inc. <F1> 354
----------
1,165
----------
OIL & GAS - DOMESTIC 2.6%
15,100 Devon Energy Corporation 502
281,175 Forest Oil Corporation<F1> 2,812
21,400 Newfield Exploration Company<F1> 575
----------
3,889
----------
OIL & GAS SERVICES 1.7%
149,415 Seitel, Inc. <F1> 2,596
----------
POLLUTION CONTROL 0.8%
122,310 Tetra Technologies, Inc. <F1> 1,147
----------
REAL ESTATE INVESTMENT TRUSTS (REITS) 1.8%
125,238 Golf Trust of America, Inc. 2,779
----------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
EMERGING GROWTH FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
RETAIL 9.1%
15,100 Ames Department Stores, Inc.<F1> $ 528
8,600 Casey's General Stores, Inc. 114
14,900 Ethan Allen Interiors, Inc. 755
589,552 Goody's Family Clothing, Inc. <F1> 5,387
80,440 The Men's Wearhouse, Inc. <F1> 2,202
171,640 Pier 1 Imports, Inc. 1,266
44,785 Regis Corporation 1,148
19,600 School Specialty, Inc.<F1> 370
39,920 Stein Mart, Inc. <F1> 399
19,030 Whole Foods Market, Inc.<F1> 742
78,600 Wolverine World Wide, Inc. 943
----------
13,854
----------
SCHOOLS 3.5%
14,000 ITT Educational Services, Inc.<F1>` 344
19,900 Strayer Education, Inc. 689
172,672 Sylvan Learning Systems, Inc. <F1> 4,338
----------
5,371
----------
SECURITY SERVICES 2.1%
41,305 The Wackenhut Corporation - Class A 927
119,575 Wackenhut Corrections Corporation<F1> 2,220
----------
3,147
----------
SHIPBUILDING 0.6%
27,795 Avondale Industries, Inc.<F1> 856
----------
SOFTWARE 4.5%
281,455 Avant! Corporation<F1> 3,800
47,255 Deltek Systems, Inc.<F1> 408
12,700 Mecury Interactive Corporation<F1> 358
270,650 Software AG Systems, Inc.<F1> 2,233
----------
6,799
----------
TELECOMMUNICATIONS EQUIPMENT 1.0%
8,800 ADTRAN, Inc.<F1> 153
42,400 Black Box Corporation<F1> 1,452
----------
1,605
----------
WASTE MANAGEMENT 1.0%
83,735 Superior Services, Inc.<F1> 1,539
----------
Total Common Stock (Cost $138,507) $136,917
----------
Number Market Value
of Shares (in thousands)
---------- ---------------
SHORT-TERM INVESTMENTS 11.9%
INVESTMENT COMPANIES 7.9%
5,128 Financial Square Prime Obligation Fund $ 5,128
6,914 Short-Term Investments Co. Liquid Assets Portfolio 6,914
----------
Total Investment Companies (Cost $12,042) 12,042
----------
Principal
Amount
(in thousands)
VARIABLE RATE DEMAND NOTES 4.0%
$ 3,000 American Family Financial Services, Inc. 3,000
3,000 Warner-Lambert Co. 3,000
----------
Total Variable Rate Demand Notes (Cost $6,000) 6,000
Total Short-Term Investments (Cost $18,042) 18,042
----------
Total Investments (Cost $156,549) 102.2% 154,959
----------
Liabilities, less Other Assets (2.2)% (3,268)
----------
TOTAL NET ASSETS 100.0% $151,691
==========
<F1> Non-income producing
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MICROCAP FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
COMMON STOCKS 97.7%
AIR TRANSPORTATION 0.5%
76,300 Indigo Aviation AB ADR<F1> $ 591
----------
BANKING 0.3%
32,200 Vail Banks, Inc.<F1> 330
----------
BROADCASTING - RADIO & TELEVISION 1.0%
68,000 Saga Communications, Inc.<F1> 1,339
----------
CHILD CARE 1.5%
165,900 Childtime Learning Centers, Inc.<F1> 1,908
----------
COMMERCIAL SERVICES 1.1%
5,700 Kroll-O'Gara Company<F1> 136
268,100 ProSoft Development, Inc. <F1> 721
47,000 SteriGenics International, Inc.<F1> 541
----------
1,398
----------
COMPUTER SOFTWARE & SERVICES 9.7%
213,500 Condor Technology Solutions, Inc.<F1> 2,162
97,200 Data Processing Resources Corporation<F1> 1,223
93,200 Fundtech Ltd.<F1> 3,214
75,800 Javelin Systems, Inc.<F1> 891
8,600 Marimba, Inc.<F1> 522
70,000 New Horizons Worldwide, Inc.<F1> 1,404
125,000 Smith-Gardner &Associates, Inc.<F1> 1,688
200,100 Tier Technologies, Inc. - Class B<F1> 1,201
----------
12,305
----------
CONSTRUCTION EQUIPMENT 0.7%
112,400 CMI Corporation 955
----------
COSMETICS & SOAP 1.3%
221,700 French Fragrances, Inc. <F1> 1,677
----------
DISTRIBUTION 1.8%
22,825 Insight Enterprises, Inc.<F1> 616
116,650 Pomeroy Computer Resources, Inc. <F1> 1,648
----------
2,264
----------
DRUGS 2.3%
127,000 D&K Healthcare Resources, Inc.<F1> 2,937
----------
ELECTRONICS 8.7%
73,400 Aeroflex Incorporated<F1> 1,073
178,900 Alpha Industries, Inc. 6,306
23,900 Anaren Microwave, Inc.<F1> 487
143,900 Galileo Technology Ltd.<F1> 3,310
----------
11,176
----------
ENTERTAINMENT & LEISURE 3.2%
131,200 Championship Auto Racing Teams, Inc.<F1> 4,043
----------
EQUIPMENT RENTAL 1.2%
122,100 Coinmach Laundry Corporation <F1> 1,508
----------
Number Market Value
of Shares (in thousands)
---------- ---------------
FINANCIAL SERVICES 4.6%
84,100 Conning Corporation $ 1,388
56,700 Healthcare Financial Partners, Inc. <F1> 1,914
119,800 LINC Capital, Inc.<F1> 943
93,000 MicroFinancial Incorporated 1,657
----------
5,902
----------
HEALTH CARE SERVICES & SUPPLIES 6.0%
51,100 America Service Group, Inc.<F1> 584
58,600 ICU Medical, Inc. <F1> 996
145,800 Province Healthcare Company<F1> 3,244
293,800 Quadramed Corporation 2,846
----------
7,670
----------
HOME FURNISHINGS 1.8%
52,200 American Woodmark Corporation 2,010
17,300 Select Comfort Corporation<F1> 280
----------
2,290
----------
INSURANCE 1.5%
36,500 American Medical Security Group, Inc.<F1> 545
80,400 ESG Re Ltd. 1,367
----------
1,912
----------
INTERNET PRODUCTS & SERVICES 4.7%
86,300 GlobalNet Financial.com, Inc. 372
29,400 I-Tech Holdings Group, Inc.<F1> 165
65,500 Information Resource Engineering, Inc.<F1> 1,310
13,000 iVillage, Inc.<F1> 1,027
64,700 Mediconsult.com, Inc.<F1> 772
8,600 MiningCo.com, Inc.<F1> 563
34,500 Proxicom, Inc.<F1> 774
10,400 Vignette Corporation <F1> 988
----------
5,971
MEDICAL INSTRUMENTS 1.6%
69,800 Sabratek Corporation<F1> 1,139
39,500 Ventana Medical Systems, Inc.<F1> 963
----------
2,102
----------
MISCELLANEOUS 3.4%
231,900 Access Worldwide, Inc.<F1> 1,507
182,300 GP Strategies Corporation<F1> 2,803
----------
4,310
----------
OIL & GAS - DOMESTIC 2.7%
61,400 Cabot Oil & Gas Corporation 1,074
55,300 Cross Timbers Oil Company 635
25,800 HS Resources, Inc.<F1> 278
38,700 Louis Dreyfus Natural Gas Corp.<F1> 740
159,100 Range Resources Corporation 667
----------
3,394
----------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MICROCAP FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market Value
of Shares (in thousands)
---------- ---------------
OIL & GAS SERVICES 1.8%
47,300 Cal Dive International, Inc.<F1> $ 1,514
45,500 Oceaneering International, Inc.<F1> 751
----------
2,265
----------
PRIVATE CORRECTION FACILITIES 6.4%
384,000 Cornell Corrections, Inc. <F1> 7,728
43,100 Correctional Services Corporation<F1> 388
----------
8,116
----------
REAL ESTATE INVESTMENT TRUSTS (REITS) 1.2%
92,700 Correctional Properties Trust<F1> 1,605
----------
RESEARCH & DEVELOPMENT 3.6%
56,200 Albany Molecular Research, Inc.<F1> 1,405
55,300 ChiRex, Inc.<F1> 1,438
98,900 Kendle International, Inc.<F1> 1,823
----------
4,666
----------
RETAIL 4.8%
93,900 A.C. Moore Arts & Crafts, Inc. <F1> 482
33,700 Chico's Fas, Inc.<F1> 845
126,650 DM Management Company <F1> 3,008
36,700 The Gymboree Corporation<F1> 381
76,400 Noodle Kidoodle, Inc.<F1> 544
238,600 Party City Corporation<F1> 865
----------
6,125
----------
SCHOOLS 6.5%
131,500 Career Education Corporation<F1> 4,405
132,500 Corinthian Colleges, Inc.<F1> 2,170
339,300 EduTrek International, Inc.<F1> 1,739
----------
8,314
----------
TELECOMMUNICATIONS 10.5%
222,700 Ancor Communications, Incorporated<F1> 1,336
124,700 Hyperion Telecommunications, Inc.<F1> 1,559
17,300 Metro One Telecommunicatiuons, Inc.<F1> 282
8,600 Metromedia Fiber Network, Inc.<F1> 725
93,500 NorthEast Optic Network, Inc.<F1> 1,601
267,000 Transaction Network Services, Inc.<F1> 7,142
31,600 US LEC Corporation - Class A<F1> 731
----------
13,376
----------
TELECOMMUNICATIONS EQUIPMENT 1.6%
62,000 Digital Microwave Corporation<F1> 791
58,800 Dset Corporation<F1> 720
25,800 Excel Switching Corporation<F1> 535
----------
2,046
----------
VETERINARY HOSPITALS 1.7%
167,100 Veterinary Centers of America, Inc. <F1> 2,193
----------
Total Common Stock (Cost $109,983) $124,688
----------
Number Market Value
of Shares (in thousands)
---------- ---------------
SHORT-TERM INVESTMENTS 3.0%
INVESTMENT COMPANIES 2.0%
29 Financial Square Prime Obligation Fund $ 29
2,443 Short-Term Investments Co. Liquid Assets Portfolio 2,443
----------
Total Investment Companies (Cost $2,472) 2,472
----------
Principal
Amount
(in thousands)
- ---------------
VARIABLE RATE DEMAND NOTES 1.0%
$1,300 Warner-Lambert Co. 1,300
----------
Total Variable Rate Demand Notes (Cost $1,300) 1,300
----------
Total Short-Term Investments (Cost $3,772) 3,772
----------
Total Investments (Cost $113,755) 100.7% 128,460
----------
Liabilities, less Other Assets (0.7)% (906)
----------
TOTAL NET ASSETS 100.0% $127,554
==========
<F1> Non-income producing
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Number Market
of Shares Industry Value
--------- -------- --------
<C> <C> <C> <C>
COMMON AND PREFERRED STOCKS 90.4%
AUSTRALIA 2.7%
34,000 Broken Hill Proprietary
Company Limited Diversified Operations $ 385,004
2,300 EVN AG Utility 343,820
31,864 National Australia Bank Ltd. Banks 621,355
----------
1,350,179
----------
AUSTRIA 1.7%
8,287 Bank Austria AG <F1> Banks 514,792
3,800 VA Technologie AG Engineering 361,867
----------
876,659
----------
BRAZIL 1.6%
8,500 Companhia Vale do Rio Doce ADR Diversified Minerals 163,445
3,100 Telecomunicacoes Brasileiras SA-Telebras ADR Telecommunications 242
3,100 Telecomunicacoes Brasileiras SA-Telebras ADR
Pfd Block Telecommunications 282,681
15,000 Uniao de Bancos Brasileiros (Unibanco) SA Banks 372,188
----------
818,556
----------
CANADA 2.3%
45,000 Moore Corporation Ltd. Business Services 450,000
86,000 Methanex Corporation<F1> Chemicals 239,168
91,000 Nexfor, Inc. Building Products - Wood 465,529
----------
1,154,697
----------
CHILE 0.2%
4,000 Cia. de
Telecomunicaciones
de Chile SA Telecommunications 105,750
----------
CHINA 0.5%
57,000 Shandong Huaneng Power Company Ltd. ADR Electric Utility 252,938
----------
COLOMBIA 0.3%
25,000 Bancolombia SA ADR Banks 168,750
----------
CROATIA 0.9%
30,000 Pliva d.d. 144A GDR <F2> Pharmaceuticals 465,393
----------
CZECH REPUBLIC 1.4%
166,500 The Czech Power Company <F1> Electric Power Company 235,300
96,000 Komercni Banka A.S. ADR Banks 392,774
26,000 Skoda Plzen AS <F1> Building & Construction 102,431
----------
730,505
----------
DENMARK 1.4%
3,500 A/S Forsikringsselskabet Codan Insurance 348,065
5,065 Unidanmark AS Banks 348,549
----------
696,614
----------
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Number Market
of Shares Industry Value
--------- -------- --------
<C> <C> <C> <C>
FINLAND 1.8%
50,200 Kemira Oyj Chemicals $ 326,664
38,020 Merita Ltd. Financial Services 227,291
19,000 Orion-Yhtyma Oyj "B" Drugs 381,970
----------
935,925
----------
FRANCE 4.3%
5,003 Banque Nationale de Paris Banks 415,285
4,100 Societe Elf Aquitaine SA Oil & Chemicals 637,710
14,300 Rhone-Poulenc SA Drugs 680,880
9,000 Scor Assistance Insurance 449,476
----------
2,183,351
----------
GERMANY 2.9%
11,500 BASF AG Chemicals 504,365
23,000 Bilfinger & Berger Bau AG Building & Construction 553,645
850 Viag AG Diversified Manufacturing 432,600
----------
1,490,610
----------
GREAT BRITAIN 10.9%
354,847 The BICC Group PLC Wire & Cable Products 599,983
31,650 British Telecommunciations PLC Telecommunications 532,087
87,000 Enterprise Oil PLC<F1> Oil & Gas Exploration 622,029
26,000 National Westminster Bank PLC Banks 626,763
66,500 Nycomed Amersham PLC Medical Products 548,812
108,823 Rolls-Royce PLC <F1> Aerospace & Aircraft 504,686
58,000 Royal & Sun Alliance Insurance Group PLC Insurance 500,612
53,024 Scottish and Southern Energy PLC Electricity - Integrated 498,221
211,916 Storehouse PLC Retail 494,812
203,000 Tesco PLC Retail - Food 603,933
----------
5,531,938
----------
HONG KONG 7.7%
1,659,000 Giordano International Limited Retail - Apparel/Shoes 770,583
17,800 HSBC Holdings PLC Banks 661,428
74,000 Hutchison Whampoa Limited Diversified Operations 663,570
173,047 Jardine Matheson Holdings Ltd. Diversified Operations 737,180
2,856,000 Pacific Ports Company Ltd. <F1> Traffic Management 327,958
142,000 Peregrine Investments Holdings Limited Financial Services -
927,500 Swire Pacific Ltd. Diversified Operations 789,820
----------
3,950,539
----------
INDIA 0.4%
21,000 BSES Ltd. 144A GDR <F2> Electric Utility 203,343
----------
INDONESIA 0.8%
215,000 PT Indonesian Satellite Telecommunications 414,842
----------
ITALY 1.7%
40,000 Burgo (Cartiere) SPA Paper Products 285,684
40,000 Societa Assicuratrice Industriale Insurance 241,244
103,000 Telecom Italia Mobile SPA Telecommunications 345,477
----------
872,405
----------
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Number Market
of Shares Industry Value
--------- -------- --------
<C> <C> <C> <C>
JAPAN 10.8%
20,000 Aoyama Trading Co., Ltd. Retail - Apparel/Shoes $ 556,277
42,000 Daiichi Pharmaceutical Co., Ltd. Drugs 682,613
49,800 Daito Trust Construction Co. Real Estate 585,760
22,000 Daiwa House Industry Co., Ltd. Construction 262,640
107,000 Daiwa Securities Company Limited Financial Services 654,380
88,000 Kyudenko Co., Ltd. Electrical Engineering 535,233
280,000 Marubeni Corporation Distribution / Wholesale 647,427
74,600 Nichido Fire & Marine Insurance Insurance 428,107
169,000 Nippon Fire & Marine Insurance Insurance 563,499
10 NTT Mobile Communication Network, Inc. Telecommunications 586,437
----------
5,502,373
----------
MALAYSIA 2.4%
180,000 Malakoff Bhd Agricultural Operations 339,158
196,000 Malayan Banking Bhd Banks 416,758
80,000 O.Y.L. Industries Bhd Air & Heating Systems 135,579
300,000 Road Builder (M) Holdings Bhd Building & Construction 344,211
----------
1,235,706
----------
MEXICO 1.6%
11,000 Telefonos de Mexico SA Telecommunications 833,250
----------
NETHERLANDS 2.6%
4,490 Eriks Holdings NV Diversified Operations 242,292
32,500 European Vinyls Corporation International NV Chemicals 319,807
14,754 Koninklijke Ahrend NV Office & Funiture 287,243
11,000 Koninklijke KPN NV Telecommunications 459,740
----------
1,309,082
----------
NEW ZEALAND 4.4%
361,000 Air New Zealand Limited - Class B Air Transportation 757,597
591,000 Carter Holt Harvey Limited Paper Products 866,540
252,000 Fletcher Challenge Energy Oil & Gas Exploration 603,593
----------
2,227,730
----------
NORWAY 3.2%
25,000 Bergesen d.y. ASA "B" Transportation 372,440
53,000 Saga Petroleum ASA Oil & Gas Exploration 588,775
16,700 Sparebanken NOR Banks 319,566
28,000 Odfjell ASA "A" Marine Services 336,223
----------
1,617,004
----------
PHILIPPINES 1.9%
30,000 Metropolitan Bank & Trust Company Banks 299,803
20,000 Philippine Long Distance Telephone Company Telecommunications 646,943
----------
946,746
----------
RUSSIA 1.1%
8,500 Lukoil Holding ADR Oil & Gas - International 315,180
54,000 Rostelecom ADR Telecommunications 232,875
----------
548,055
----------
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Number Market
of Shares Industry Value
--------- -------- --------
<C> <C> <C> <C>
SINGAPORE 4.1%
56,000 Asia Pulp & Paper Company Ltd. <F1> Paper Products $ 588,000
112,000 City Developments Limited Real Estate 747,328
101,000 United Overseas Bank Ltd. Banks 781,281
----------
2,116,609
----------
SLOVAK REPUBLIC 0.7%
13,000 Nafta Gbely AS Geological Exploration 102,035
30,000 Slovakofarma 144A GDR <F2> Health & Beauty Aids 90,000
39,000 VSZ AS <F1> Steel 142,482
----------
334,517
----------
SOUTH AFRICA 1.3%
6,016 AngloGold Limited Mining 281,854
124,000 Standard Bank Investment Corporation Limited Banks 375,788
----------
657,642
----------
SPAIN 3.8%
20,000 Catalana Occidente Insurance 451,804
17,000 Construcciones y Auxiliar de Ferrocarriles SA Manufacturing - Misc. 467,675
38,000 Iberdrola SA Electricity - Distribution 532,748
30,000 Repsol SA Oil & Gas - International 488,837
----------
1,941,064
----------
SWEDEN 4.4%
56,000 ABB AB "B" Rail Transit Systems 782,309
27,300 AssiDoman AB Paper & Related Products 564,760
12,613 AstraZeneca Group PLC Drugs 493,344
27,000 Getinge Industrier AB "B" Medical Instruments 420,521
----------
2,260,934
----------
SWITZERLAND 2.7%
1,000 Forbo Holding AG Building Products 417,077
398 Holderbank Building Products 480,737
1,400 UBS AG Building Products 476,322
----------
1,374,136
----------
THAILAND 1.9%
355,000 Thai Farmers Bank Public Company Limited Banks 985,181
----------
Total Common and Preferred Stocks (Cost $48,076,067) 46,093,023
----------
SHORT-TERM INVESTMENTS 7.3%
INVESTMENT COMPANIES 4.4%
121,000 Korea Fund, Inc. 1,512,500
63 Thailand International Fund 708,750
Total Investment Companies (Cost $2,041,075) 2,221,250
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Market
Amount Value
------------- ------------
VARIABLE RATE DEMAND NOTES 2.9%
$1,506,801 Chase U.S. $ 1,506,801
----------
Total Variable Rate Demand Notes (Cost $1,506,801) 1,506,801
----------
Total Short-Term Investments (Cost $3,547,876) 3,728,051
----------
Total Investments (Cost $51,623,943) 97.7% 49,821,074
----------
Other Assets, less Liabilities 2.3% 1,178,896
----------
TOTAL NET ASSETS 100% $50,999,970
==========
<F1> Non-income producing
<F2> Restricted Security
See notes to the financial statements.
<PAGE>
This page intentionally left blank.
<PAGE>
- --------------------------------------------------------------------------------
THE REINTRODUCTION TO RISK
- --------------------------------------------------------------------------------
The bond market experienced continued volatility on its journey through the
first half of our fiscal year. Treasury yields rose sharply while yield spreads
on non-Treasury sectors narrowed significantly. These two dominant themes of the
last six months reversed much of the activity of the prior six months, a period
during which Treasury yields fell sharply and yield spreads in non-Treasury
sectors increased significantly.
YIELDS
After falling over 140 basis points from 4/30/98 to 10/31/98, Treasury yields
reversed their course and rose nearly 100 basis points from 10/31/98 to 4/30/99
(see yield curve graph below).
MATURITY 4/30/98 10/31/98 4/30/99
(YEARS) YIELD (%) YIELD (%) YIELD (%)
-------- --------- --------- --------
1 5.38 4.18 4.77
2 5.57 4.11 5.06
3 5.62 4.25 5.18
5 5.64 4.23 5.21
7 5.72 4.46 5.42
10 5.67 4.60 5.34
20 6.03 5.30 5.93
30 5.95 5.15 5.66
The decline in Treasury yields in 1998 occurred mostly in the summer and early
fall as investors sought a safe haven from falling stock prices. The dramatic
recovery of the equity markets during the last two months of 1998 calmed
investors' fears and Treasury yields rebounded accordingly. Furthermore,
evidence of continuing strength of the economy in 1999 raised inflationary
concerns, putting upward pressure on yields in the first part of 1999. As a
result, Treasury yields have rebounded substantially since the end of October
and, at the end of April, stand remarkably close to where they stood a year
earlier.
SPREADS
After doubling from 4/30/98 to 10/31/98, yield spreads on investment grade
corporate bonds have narrowed significantly from 10/31/98 to 4/30/99 (see yield
spread graph below).
- ------------------------------------------------
CREDIT SPREADS 4/30/98
- ------------------------------------------------
AAA AA A BBB
----- ----- ----- -----
1 .20% .28% .31% .44%
2 .25% .31% .35% .51%
3 .31% .33% .35% .52%
5 .30% .31% .36% .59%
10 .31% .32% .43% .79%
30 .44% .57% .68% 1.00%
- ------------------------------------------------
- ------------------------------------------------
CREDIT SPREADS 10/31/98
- ------------------------------------------------
AAA AA A BBB
----- ----- ----- -----
1 .43% .45% .70% 1.16%
2 .49% .51% .75% 1.27%
3 .48% .50% .74% 1.21%
5 .46% .48% .81% 1.34%
10 .64% .67% .89% 1.51%
30 .92% .98% 1.27% 1.91%
- ------------------------------------------------
- ------------------------------------------------
CREDIT SPREADS 4/30/99
- ------------------------------------------------
AAA AA A BBB
----- ----- ----- -----
1 .38% .40% .51% .68%
2 .37% .42% .53% .81%
3 .41% .45% .57% .88%
5 .56% .58% .76% 1.09%
10 .59% .63% .86% 1.22%
30 .80% .89% 1.10% 1.46%
- ------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
As the stock market faltered last year over concerns about weakening corporate
earnings, yield spreads in the corporate bond market widened in sympathy. The
widening of spreads crippled a few large hedge funds and paralyzed the bond
market, which was saturated at the time with an overhang of new issues. The
resulting illiquidity precipitated a dramatic widening of spreads in all non-
Treasury sectors. The bail-out of the Long-Term Capital Management hedge fund
and the recovery of the stock market late last year brought liquidity back to
the bond market and yield spreads began to contract. Favorable corporate
earnings reports for 4th quarter 1998 and 1st quarter 1999 boosted confidence in
the corporate bond market, causing spreads to narrow steadily through April 30,
1999.
PERFORMANCE
While the rise in yields has limited the nominal returns of the Firstar Bond
Funds over the last six months, changes in the market have boosted the Funds'
performance relative to their benchmarks in the first half of our fiscal year.
Late last year while yield spreads were still near their widest margins, we
added selectively to our holdings in the banking, brokerage and finance sectors
of the corporate bond market. We have also been increasing our allocation to the
mortgage-backed sector thus far in 1999. These sectors have performed well,
giving our Funds favorable performance relative to their benchmarks. The table
below shows the total returns of each of the Firstar bond funds relative to the
average of the universe of similar funds as determined by Lipper Analytical
Services for the four months of 1999, and over the last one-year, three-year and
five-year time periods.
TOTAL RETURN ANALYSIS
INSTITUTIONAL SHAREOWNERS
PERIODS ENDED 4/30/99
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
SINCE
YTD 1 YEAR 3 YEARS 5 YEARS INCEPTION
- -------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C>
FIRSTAR SHORT-TERM BOND MARKET FUND 1.37% 5.86% 6.26% 6.35% 6.96%
Fund's % Ranking inLipper Universe 30% 14% 23% 15% N/A
Fund's Rank in Lipper Universe 33 of 110 15 of 110 19 of 85 9 of 60 N/A
Lipper Short Investment
Grade Debt Category Average Return 1.32% 5.15% 6.12% 5.94% N/A
- -------------------------------------------------------------------------------------------------------------------------------
FIRSTAR INTERMEDIATE BOND MARKET FUND 0.53% 6.28% 7.01% 7.04% 6.47%
Fund's % Ranking inLipper Universe 48% 6% 6% 6% N/A
Fund's Rank in Lipper Universe 50 of 105 6 of 100 4 of 77 3 of 53 N/A
Lipper Short-Intermediate Investment
Grade Debt Category Average Return 0.53% 5.23% 6.25% 6.23% N/A
- -------------------------------------------------------------------------------------------------------------------------------
FIRSTAR BOND IMMDEX FUND (0.57)% 6.43% 8.06% 8.06% 8.48%
Fund's % Ranking inLipper Universe 70% 12% 13% 11% N/A
Fund's Rank in Lipper Universe 193 of 279 30 of 256 22 of 180 12 of 119 N/A
Lipper Intermediate Investment
Grade Debt Category Average Return (0.21)% 5.15% 7.21% 7.15% N/A
- -------------------------------------------------------------------------------------------------------------------------------
FIRSTAR TAX-EXEMPT INTERMEDIATE BOND FUND 1.04% 5.52% 5.44% 5.43% 5.02%
Fund's % Ranking inLipper Universe 22% 8% 8% 6% N/A
Fund's Rank in Lipper Universe 8 of 38 3 of 38 2 of 28 1 of 18 N/A
Lipper Short-Intermediate Municipal
Debt Category Average Return 0.91% 4.93% 4.74% 4.87% N/A
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Currently, all tax-exempt issues purchased for the funds are not subject to
Alternative Minimum Tax.
Lipper, Inc. compiles performance data for a universe of mutual funds
independently selected by Lipper. Lipper rankings are grade debt category
returns for the corresponding periods. Since inception time periods are not
available.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RETURNS. Performance reflects fee
waivers in effect. Without fee waivers, performance would be reduced. Returns
shown above include the reinvestment of all dividends and capital gains. An
investment in Firstar Funds involves investment risks, including the possible
loss of principal. An investor's shares, when redeemed, may be worth more or
less than their original shares.
OUTLOOK
As we look ahead, we see good value in the bond market. We believe inflation,
although showing some signs of increasing at the margin, will remain in the 1-2%
range. With nominal Treasury yields over 5%, real yields (nominal yields less
inflation) still stand in excess of 3% and remain quite high by historical
standards. We also believe that our risk-controlled, structured fixed income
management approach will prove its value by delivering consistent, predictable
performance through the most turbulent of times. We greatly appreciate your
continued confidence in Firstar Funds and remain committed to staying the course
of our investment discipline in order to help you achieve your investment
objectives and financial goals.
MARY ELLEN STANEK, CFA DANIEL A. TRANCHITA, CFA
SHARON deGUZMAN WARREN D. PIERSON, CFA
Portfolio Managers - Firstar Investment Research & Management Company, LLC
(FIRMCO)
<PAGE>
(LOGO) FIRSTAR FUNDS
- --------------------------------------------------------------------------------
SHORT-TERM BOND MARKET FUND
- --------------------------------------------------------------------------------
FIRSTAR SHORT-TERM BOND MARKET FUND seeks to provide an annual rate of total
return comparable to that of the Lehman Brothers 1-3 Year Government/Corporate
Bond Index, before Fund expenses. In order to achieve its objective, the Fund
may invest in securities with short to intermediate remaining maturities.
This Fund's maturity mix gives the portfolio an overall AVERAGE MATURITY OF 2.4
YEARS, and a DURATION OF 1.7 YEARS. Since the Firstar Short-Term Bond Market
Fund's duration is just under 2 years, the Fund is the shortest of all the
Firstar taxable bond funds and has historically displayed the least downward
price movement when interest rates increase, but exhibited the least upward
price movement when interest rates decrease. While the Fund's duration is the
single most significant determinant of its return, the Fund's sector allocation
is also important.
In the fall of 1998, yield spreads on corporate bonds, asset-backed and
mortgage-backed securities expanded to historically wide levels. Since that
time, we selectively increased the Fund's exposure to these sectors. During
1999, spreads have tightened from these historically wide levels. With the
spreads contracting, these sectors have contributed positively to the
performance of the Fund over the past six months.
CORPORATE BONDS
The Fund's careful, research-intensive process of selecting investment-grade
corporate issues, asset-backed securities and mortgages, gives the Fund a high-
quality focus. As of April 30, 1999, the Fund had 67% invested in securities
rated Aaa or higher. Currently the Fund's exposure to the corporate sector
represents 24%. Sectors of the corporate market that we continue to favor
include finance, banking and brokerage.
ASSET-BACKED SECURITIES
All asset-backed securities in the Fund are rated Aaa/AAA by Moody's or Standard
& Poor's. They represent the highest credit quality of non-U.S. Government
investments available. The Fund currently has 27% invested in the asset-backed
sector. Asset-backed sectors that we continue to favor are credit cards, home
equity loans and manufactured housing loans.
MORTGAGE-BACKED SECURITIES
In general, we purchase only the highest rated (Aaa and Agency) collateralized
mortgage obligations (CMOs). We utilize shorter duration CMO structures with
more predictable "cash flow" characteristics. This restrained use of mortgage
instruments is a by-product of our requirement to precisely measure the duration
of the portfolio and ensure we "match" the duration of the benchmark index at
all times. The Short-Term Bond Market Fund currently invests 15% in mortgages.
CONSISTENCY IS THE HALLMARK OF OUR APPROACH
Since Firstar Short-Term Bond Market Fund's inception on 12/29/89, we have
adhered to the same disciplined management approach. During the past 9+ years,
the financial markets have become more volatile. THE HALLMARK OF OUR APPROACH
HAS BEEN THE FUND'S CONSISTENT PERFORMANCE IN ALL MARKET CLIMATES. Firstar
Short-Term Bond Market Fund's returns have been comparable to the benchmark in
periods of rising interest rates and falling interest rates. Our goal is to
continue to deliver this same consistent performance in the future. We look
forward to continuing to serve you as Firstar Fund shareowners.
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
MARY ELLEN STANEK, CFA, President and Chief Executive Officer of Firstar
Investment Research &Management Company, LLC (FIRMCO) and SHARON DEGUZMAN,
Assistant Vice President and Portfolio Manager, co-manage the Fund - Mary Ellen
since its inception on December 29, 1989 and Sharon since March 1, 1999. Mary
Ellen has 21 years of investment management experience and was named a Director
of FIRMCO in 1992 and President in 1994. Prior to joining FIRMCO, she headed the
Fixed Income and Quantitative Investment Management Department at Firstar Trust
Company. Mary Ellen received her BA from Marquette University in 1978 and her
MBA from the University of Wisconsin-Milwaukee in 1984. Sharon has been with
FIRMCO since 1994 and has eight years of investment experience. She received her
BAfrom Eastern Illinois University in 1988. Mary Ellen is a Chartered Financial
Analyst.
(photo) (photo)
MARY ELLEN STANEK, CFA SHARON deGUZMAN
<PAGE>
(LOGO) FIRSTAR FUNDS
FIRSTAR SHORT-TERM
BOND MARKET FUND -
INSTITUTIONAL
------------------
12/29/89 $10,000
10/90 $10,464
10/91 $11,865
10/92 $12,966
10/93 $13,833
10/94 $14,035
10/95 $15,290
10/96 $16,177
10/97 $17,223
10/98 $18,402
4/99 $18,747
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Per form ance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Performance shown is for Institutional
shares, which have lower fees and expenses than Series A or Series B shares. If
these fees and expenses were reflected in the chart above, 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.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
Fiscal
Year-To-Date 1 Year 3 Years 5Years Since Inception
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C. <C> <C> <C>
FIRSTAR SHORT-TERM BOND MARKET FUND - INSTITUTIONAL 1.9 5.9 6.3 6.4 7.0 (12/29/89)
FIRSTAR SHORT-TERM BOND MARKET FUND - A - NO LOAD 1.7 5.5 6.0 6.1 6.8 (12/29/89)
FIRSTAR SHORT-TERM BOND MARKET FUND - A - LOAD<F2> (2.1) 1.5 4.6 5.3 6.4 (12/29/89)
FIRSTAR SHORT-TERM BOND MARKET FUND - B - NO LOAD - - - - 1.1 (3/1/99)<F1>
FIRSTAR SHORT-TERM BOND MARKET FUND - B - LOAD<F3> - - - - (3.9)(3/1/99)<F1>
LEHMAN BROTHERS 1-3 YEAR GOV'T./CORP. BOND INDEX<F4> 1.4 5.9 6.5 6.4 6.9 (12/29/89)
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A (retail class)
B = Series B (retail class)
<F1> Series B performance for the period March 1, 1999 to April 30, 1999 is not
annualized.
<F2> Reflects maximum sales charge of 3.75%.
<F3> Reflects maximum deferred sales charge of 5.00%.
<F4> The Lehman Brothers 1-3 Year Gov't./Corp. Bond Index is an unmanaged market
value weighted index measuring both principal price changes of, and income
provided by, the underlying universe of securities that comprise the index.
Securities included in the index must meet the following criteria: fixed as
opposed to variable rate; not less than one year to maturity; not more than
three years remaining to maturity; and minimum outstanding par value of
$100 million. An investment cannot be made directly in an index.
Effective at the close of business January 9, 1995, Firstar Funds began to offer
Series A shares. Effective at the close of business on February 28, 1999,
Firstar Funds began to offer Series B shares. Series A shares have a 3.75%
maximum sales load and are subject to an annual 0.25% service organization fee.
Series A performance prior to January 10, 1995, does not reflect the service
organization fees. Series B shares have a 5.00% maximum deferred sales charge
and are subject to an annual 0.25% service organization fee and an annual 0.75%
12b-1 fee. Performance for all share classes reflects fee waivers in effect. In
the absence of fee waivers, total return and yield would be reduced.
SECTOR DISTRIBUTION
4/30/99
- ------------------------------------
U.S. TREASURY 25%
- ------------------------------------
U.S. GOVERNMENT AGENCY 0%
- ------------------------------------
MORTGAGE-BACKED<F1> 15%
- ------------------------------------
FINANCE, BANKING, BROKERAGE 21%
- ------------------------------------
INDUSTRIAL 1%
- ------------------------------------
UTILITY 2%
- ------------------------------------
INTERNATIONAL/YANKEE 7%
- ------------------------------------
ASSET-BACKED 27%
- ------------------------------------
CASH AND OTHER 1%
- ------------------------------------
TAXABLE MUNICIPAL 1%
- ------------------------------------
TOTAL 100%
- ------------------------------------
PORTFOLIO COMPOSITION
4/30/99
- ------------------------------------
AVERAGE MATURITY 2.4 YEARS
- ------------------------------------
AVERAGE DURATION 1.7 YEARS
- ------------------------------------
<F1> incl. U.S. Govt. Agency-Backed
QUALITY DISTRIBUTION
4/30/99
- ------------------------------------
U.S. TREASURY 25%
- ------------------------------------
U.S. GOVERNMENT AGENCY 5%
- ------------------------------------
Aaa 37%
- ------------------------------------
Aa 2%
- ------------------------------------
A 16%
- ------------------------------------
Baa 15%
- ------------------------------------
Ba 0%
- ------------------------------------
TOTAL 100%
- ------------------------------------
SEC30-DAY YIELD
- ------------------------------------
INSTITUTIONAL 5.28%
- ------------------------------------
A - NO LOAD 5.03%
- ------------------------------------
A - LOAD 4.84%
- ------------------------------------
B - NO LOAD/LOAD 4.12%
- ------------------------------------
TOTAL FUND NET ASSETS
4/30/99
- ------------------------------------
$206,011,479
- ------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
- --------------------------------------------------------------------------------
INTERMEDIATE BOND MARKET FUND
- --------------------------------------------------------------------------------
FIRSTAR INTERMEDIATE BOND MARKET FUND seeks to provide an annual rate of total
return comparable to that of the Lehman Brothers Intermediate
Government/Corporate Bond Index, before Fund expenses. In order to achieve its
objective, the Fund may invest in securities with long remaining maturities (10
years or longer) in addition to shorter bonds and notes.
This Fund's maturity mix gives the portfolio an overall AVERAGE MATURITY OF 5.1
YEARS, and a DURATION OF 3.4 YEARS. Firstar Intermediate Bond Fund's duration is
between the durations of the other Firstar taxable bond funds. If interest rates
rise, this Fund will display more downward price movement than the Short-Term
Bond Market Fund and less than the Bond IMMDEX/TM Fund. But, when interest rates
fall, this Fund will exhibit more upward price movement than the Short-Term Bond
Market Fund and less than the Bond IMMDEX/TM Fund.
In the fall of 1998, yield spreads on corporate bonds, asset-backed and
mortgage-backed securities expanded to historically wide levels. Since that
time, we selectively increased the Fund's exposure to these sectors. During
1999, spreads have tightened from these historically wide levels. With the
spreads contracting, these sectors have contributed positively to the
performance of the Fund over the past six months.
CORPORATE BONDS
The Fund's careful, research-intensive process of selecting investment-grade
corporate issues, asset-backed securities and mortgages, gives the Fund a high-
quality focus. Currently the Fund's exposure to the corporate sector represents
40%. Sectors of the corporate market that we continue to favor include finance,
banking and brokerage.
ASSET-BACKED SECURITIES
All asset-backed securities in the Fund are rated Aaa/AAA by Moody's or Standard
& Poor's. They represent the highest credit quality of non-U.S. Government
investments available. The Fund currently has 11% invested in the asset-backed
sector. Asset-backed sectors that we continue to favor are credit cards, home
equity loans and manufactured housing loans.
MORTGAGE-BACKED SECURITIES
In general, we purchase only the highest rated (Aaa and Agency) collateralized
mortgage obligations (CMOs). We utilize shorter duration CMO structures with
more predictable "cash flow" characteristics. This restrained use of mortgage
instruments is a by-product of our requirement to precisely measure the duration
of the portfolio and ensure we "match" the duration of the benchmark index at
all times. The Intermediate Bond Market Fund currently invests 8% in mortgages.
CONSISTENCY IS THE HALLMARK OF OUR APPROACH
Since Firstar Intermediate Bond Market Fund's inception on 1/5/93, we have
adhered to the same disciplined management approach. During the past 6+ years,
the financial markets have become more volatile. THE HALLMARK OF OUR APPROACH
HAS BEEN THE FUND'S CONSISTENT PERFORMANCE IN ALL MARKET CLIMATES. Firstar
Intermediate's returns have been comparable to the benchmark in periods of
rising interest rates and falling interest rates. Our goal is to continue to
deliver this same consistent performance in the future. We look forward to
continuing to serve you as Firstar Fund shareowners.
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
MARY ELLEN STANEK, CFA, President and Chief Executive Officer of Firstar
Investment Research &Management Company, LLC (FIRMCO) and WARREN D. PIERSON,
CFA, Senior Vice President and Senior Portfolio Manager, co-manage the Fund,
Mary Ellen since its inception on January 5, 1993 and Warren since March 1,
1999. Mary Ellen has 21 years of investment management experience and was named
a Director of FIRMCO in 1992 and President in 1994. Prior to joining FIRMCO, she
headed the Fixed Income and Quantitative Investment Management Department at
Firstar Trust Company. Mary Ellen received her BA from Marquette University in
1978 and her MBA from the University of Wisconsin-Milwaukee in 1984. Warren has
been with Firstar since 1985 and has 14 years of investment management
experience. He received his BA from Lawrence University in 1984. Mary Ellen and
Warren are both Chartered Financial Analysts.
(photo) (photo)
MARY ELLEN STANEK, CFA WARREN D. PIERSON, CFA
<PAGE>
(LOGO) FIRSTAR FUNDS
FIRSTAR
INTERMEDIATE
BOND MARKET FUND -
INSTITUTIONAL
------------------
1/5/93 $10,000
10/93 $10,858
10/94 $10,670
10/95 $11,978
10/96 $12,669
10/97 $13,602
10/98 $14,665
4/99 $14,861
This chart assumes an initial investment of $10,000 made on 1/5/93 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Performance shown is for Institutional shares, which
have lower fees and expenses than Series A or Series B shares. If these fees and
expenses were reflected in the chart above, 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.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
Fiscal
Year-To-Date 1 Year 3 Years 5Years Since Inception
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C. <C> <C> <C>
FIRSTAR INTERMEDIATE BOND MARKET FUND - INSTITUTIONAL 1.3 6.3 7.0 7.0 6.5 (1/5/93)
FIRSTAR INTERMEDIATE BOND MARKET FUND - A - NO LOAD 1.2 6.0 6.8 6.8 6.3 (1/5/93)
FIRSTAR INTERMEDIATE BOND MARKET FUND - A - LOAD<F2> (2.6) 2.1 5.4 6.0 5.7 (1/5/93)
FIRSTAR INTERMEDIATE BOND MARKET FUND - B - NO LOAD - - - - 1.0 (3/1/99)<F1>
FIRSTAR INTERMEDIATE BOND MARKET FUND - B - LOAD<F3> - - - - (4.0) (3/1/99)<F1>
LEHMAN BROTHERS INTERMEDIATE GOV'T./CORP. BOND INDEX<F4> 0.5 6.4 7.2 7.2 6.6 (1/5/93)
</TABLE>
A = Series A (retail class)
B = Series B (retail class)
<F1> Series B performance for the period March 1, 1999 to April 30, 1999 is not
annualized.
<F2> Reflects maximum sales charge of 3.75%.
<F3> Reflects maximum deferred sales charge of 5.00%.
<F4> The Lehman Brothers Intermediate Gov't./Corp. Bond Index is an unmanaged
market value weighted index measuring both principal price changes of, and
income provided by, the under lying universe of securities that comprise
the index. Securities included in the index must meet the following
critieria: fixed as opposed to variable rate; remaining maturity of one to
ten years; minimum outstanding par value of $100 million; and rated
investment grade or higher by Moody's, Standard & Poor's, or Fitch, in that
order. An investment cannot be made directly in an index.
Effective at the close of business January 9, 1995, Firstar Funds began to offer
Series A shares. Effective at the close of business on February 28, 1999,
Firstar Funds began to offer Series B shares. Series A shares have a 3.75%
maximum sales load and are subject to an annual 0.25% service organization fee.
Series A performance prior to January 10, 1995, does not reflect the service
organization fees. Series B shares have a 5.00% maximum deferred sales charge
and are subject to an annual 0.25% service organization fee and an annual 0.75%
12b-1 fee. Performance for all share classes reflects fee waivers in effect. In
the absence of fee waivers, total return and yield would be reduced.
SECTOR DISTRIBUTION
4/30/99
- ------------------------------------
U.S. TREASURY 26%
- ------------------------------------
U.S. GOVERNMENT AGENCY 0%
- ------------------------------------
MORTGAGE-BACKED<F1> 8%
- ------------------------------------
FINANCE, BANKING, BROKERAGE 30%
- ------------------------------------
INDUSTRIAL 10%
- ------------------------------------
UTILITY 0%
- ------------------------------------
INTERNATIONAL/YANKEE 9%
- ------------------------------------
ASSET-BACKED 11%
- ------------------------------------
CASH 6%
- ------------------------------------
TOTAL 100%
- ------------------------------------
PORTFOLIO COMPOSITION 4/30/99
- ------------------------------------
AVERAGE MATURITY 5.1 YEARS
- ------------------------------------
AVERAGE DURATION 3.4 YEARS
- ------------------------------------
<F1> incl. U.S. Gov't. Agency-Backed
QUALITY DISTRIBUTION
4/30/99
- ------------------------------------
U.S. TREASURY 26%
- ------------------------------------
U.S. GOVERNMENT AGENCY 4%
- ------------------------------------
Aaa 21%
- ------------------------------------
Aa 10%
- ------------------------------------
A 25%
- ------------------------------------
Baa 14%
- ------------------------------------
Ba 0%
- ------------------------------------
TOTAL 100%
- ------------------------------------
SEC30-DAY YIELD
- ------------------------------------
INSTITUTIONAL 5.53%
- ------------------------------------
A - NO LOAD 5.27%
- ------------------------------------
A - LOAD 5.08%
- ------------------------------------
B - NO LOAD/LOAD 4.29%
- ------------------------------------
TOTAL FUND NET ASSETS
4/30/99
- ------------------------------------
$319,359,123
- ------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
- --------------------------------------------------------------------------------
TAX-EXEMPT INTERMEDIATE BOND FUND
- --------------------------------------------------------------------------------
FIRSTAR TAX-EXEMPT INTERMEDIATE BOND FUND seeks to provide current income exempt
from federal taxes and emphasizes total return with relatively low volatility of
principal. In order to achieve its objective, the Fund may invest in securities
with long remaining maturities (10 years or longer) in addition to shorter bonds
and notes. Currently the Fund does not purchase any issues which are subject to
the alternative minimum tax.
This Fund's maturity mix gives the portfolio an overall AVERAGE MATURITY OF 4.8
YEARS, and a DURATION OF 3.9 YEARS. Because Tax-Exempt Intermediate Bond Fund's
duration is approximately four years, its NAV will be less price sensitive to
changes in interest rates than the typical municipal debt fund which, according
to Lipper Analytical Services, has an average duration of 7.3 years. The
intermediate average maturity and duration of this Fund has protected the Fund
from the rise in interest rates over the last six months. While the Fund's
duration is the single most significant determinant of its return, the Fund's
sector allocation is also important.
PREREFUNDED MUNICIPAL FUNDS
Prerefunded municipal bonds are municipal bonds that hold U.S. Treasury issues
in an escrow account, assuring the timely repayment of interest and principal.
As of April 30, 1999, OVER 69% OF THE FUND'S HOLDINGS WERE INVESTED IN
PREREFUNDED MUNICIPAL BONDS, RESULTING IN AN AVERAGE CREDIT QUALITY RATING OF
AAA FOR THE FUND. With credit spreads in the municipal bond market remaining
tight, we believe the Fund's focus on superior quality issues will help minimize
the effects of any widening of credit spreads and will protect the Fund from any
general deterioration of credit quality in the municipal bond market.
CONSISTENCY IS THE HALLMARK OF OUR APPROACH
Since Firstar Tax-Exempt Intermediate Bond Fund's inception on 2/8/93, we have
adhered to the same disciplined management approach. The past 6+ years have
brought us more volatility in the fixed-income markets than many would have
expected. THE HALLMARK OF OUR APPROACH HAS BEEN THE FUND'S CONSISTENT
PERFORMANCE IN ALL MARKET CLIMATES. Our goal is to continue to deliver this same
consistent performance in the future. We look forward to continuing to serve you
as Firstar Fund shareholders.
(photo)
WARREN D. PIERSON, CFA
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
WARREN D. PIERSON, CFA, Vice President and Senior Portfolio Manager of Firstar
Investment Research &Management Company, LLC (FIRMCO) has managed the Fund since
June 22, 1993. Warren has been with Firstar since 1985 and has 14 years of
investment management experience. He received his BA from Lawrence University in
1984. Warren is a Chartered Financial Analyst.
<PAGE>
(LOGO) FIRSTAR FUNDS
FIRSTAR TAX-EXEMPT
INTERMEDIATE
BOND FUND -
INSTITUTIONAL
------------------
2/8/93 $10,000
10/93 $10,536
10/94 $10,459
10/95 $11,440
10/96 $11,900
10/97 $12,609
10/98 $13,351
4/99 $13,561
This chart assumes an initial investment of $10,000 made on 2/8/93 (inception).
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Performance shown is for Institutional shares, which
have lower fees and expenses than Series A or Series B shares. If these fees and
expenses were reflected in the chart above, 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.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
Fiscal
Year-To-Date 1 Year 3 Years 5Years Since Inception
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C. <C> <C> <C>
FIRSTAR TAX-EXEMPT INTERMEDIATE BOND FUND - INSTITUTIONAL 1.6 5.5 5.4 5.4 5.0 (2/8/93)
FIRSTAR TAX-EXEMPT INTERMEDIATE BOND FUND - A - NO LOAD 1.5 5.3 5.2 5.2 4.8 (2/8/93)
FIRSTAR TAX-EXEMPT INTERMEDIATE BOND FUND - A - LOAD<F2> (2.4) 1.3 3.8 4.4 4.2 (2/8/93)
FIRSTAR TAX-EXEMPT INTERMEDIATE BOND FUND - B - NO LOAD - - - - 0.0 (3/1/99)<F1>
FIRSTAR TAX-EXEMPT INTERMEDIATE BOND FUND - B - LOAD<F3> - - - - (5.0) (3/1/99)<F1>
LEHMAN BROTHERS 5 YEAR GENERAL OBLIGATION BOND INDEX<F4> 1.9 6.5 6.1 6.1 5.7 (2/8/93)
</TABLE>
A = Series A (retail class)
B = Series B (retail class)
<F1> Series B performance for the period March 1, 1999 to April 30, 1999 is not
annualized.
<F2> Reflects maximum sales charge of 3.75%.
<F3> Reflects maximum deferred sales charge of 5.00%.
<F4> The Lehman Brothers 5 Year General Obligation Bond Index, an unmanaged
index, is a total return performance benchmark for the investment-grade
tax-exempt bond market. To be included in this index, a municipal bond must
be a state or local General Obligation bond; have a minimum credit rating
of at least Baa; have been issued as part of an offering of at least $50
million; have a maturity amount outstanding of at least $3 million; have
been issued within the last five years; and have a maturity of 4 to 6
years. An investment cannot be made directly in an index.
Effective at the close of business January 9, 1995, Firstar Funds began to offer
Series A shares. Effective at the close of business on February 28, 1999,
Firstar Funds began to offer Series B shares. Series A shares have a 3.75%
maximum sales load and are subject to an annual 0.25% service organization fee.
Series A performance prior to January 10, 1995, does not reflect the service
organization fees. Series B shares have a 5.00% maximum deferred sales charge
and are subject to an annual 0.25% service organization fee and an annual 0.75%
12b-1 fee. Performance for all share classes reflects fee waivers in effect. In
the absence of fee waivers, total return and yield would be reduced.
SECTOR DISTRIBUTION
4/30/99
- ------------------------------------
GENERAL OBLIGATIONS 7%
- ------------------------------------
ESCROWED/PREREFUNDED 69%
- ------------------------------------
INSURED 16%
- ------------------------------------
REVENUE 3%
- ------------------------------------
CASH AND OTHER 5%
- ------------------------------------
TOTAL 100%
- ------------------------------------
QUALITY DISTRIBUTION
4/30/99
- ------------------------------------
Aaa 90%
- ------------------------------------
Aa 10%
- ------------------------------------
TOTAL 100%
- ------------------------------------
PORTFOLIO COMPOSITION
4/30/99
- ------------------------------------
AVERAGE MATURITY 4.8 YEARS
- ------------------------------------
AVERAGE DURATION 3.9 YEARS
- ------------------------------------
SEC 30-DAY YIELD
- ------------------------------------
INSTITUTIONAL 3.47%
- ------------------------------------
A - NO LOAD 3.22%
- ------------------------------------
A - LOAD 3.09%
- ------------------------------------
B - NO LOAD/LOAD 2.47%
- ------------------------------------
TOTAL FUND NET ASSETS 4/30/99
- ------------------------------------
$100,801,547
- ------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
- --------------------------------------------------------------------------------
BOND IMMDEX/TM FUND
- --------------------------------------------------------------------------------
FIRSTAR BOND IMMDEX/TM FUND seeks to provide an annual rate of total return
comparable to that of the Lehman Brothers Government/Corporate Bond Index,
before Fund expenses. In order to achieve its objective, the Fund may invest in
securities with very long remaining maturities (30 years or longer) in addition
to shorter bonds and notes.
INTEREST RATE RISK
This Fund's maturity mix gives the portfolio an overall AVERAGE MATURITY OF 10.7
YEARS, and a DURATION OF 5.5 YEARS. Since the Bond IMMDEX/TM Fund's duration is
just over five years, it is the longest of all the Firstar taxable bond funds
and will display the greatest downward price movement when interest rates
increase, but will exhibit the greatest upward price movement when interest
rates decrease. While the Fund's duration is the single most significant
determinant of its return, the Fund's allocation to the following sectors is
also important.
In the fall of 1998, yield spreads on corporate bonds, asset-backed and
mortgage-backed securities expanded to historically wide levels. Since that
time, we selectively increased the Fund's exposure to these sectors. During
1999, spreads have tightened from these historically wide levels. With the
spreads contracting, these sectors have contributed positively to the
performance of the Fund over the past six months.
CORPORATE BONDS
The Fund's careful, research-intensive process of selecting investment-grade
corporate issues and mortgage securities, gives the Fund a high-quality focus.
Currently the Fund's exposure to the corporate sector represents 40%. Sectors of
the corporate market that we contine to favor include finance, banking and
brokerage.
MORTGAGE-BACKED SECURITIES
In general, we purchase only the highest rated (Aaa and Agency) collateralized
mortgage obligations (CMOs). We utilize shorter duration CMO structures with
more predictable "cash flow" characteristics. This restrained use of mortgage
instruments is a by-product of our requirement to precisely measure the duration
of the portfolio and ensure we "match" the duration of the benchmark index at
all times. The Bond IMMDEX/TM Fund currently invests 8% in mortgages.
CONSISTENCY IS THE HALLMARK OF OUR APPROACH
Since Firstar Bond IMMDEX/TM Fund's inception on 12/29/89, we have adhered to
the same disciplined management approach. During the past 9+ years, the
financial markets have become more volatile. THE HALLMARK OF OUR APPROACH HAS
BEEN THE FUND'S CONSISTENT PERFORMANCE IN ALL MARKET CLIMATES. Firstar Bond
IMMDEX/TM Fund's returns have been comparable to the benchmark in periods of
rising interest rates and falling interest rates. Our goal is to continue to
deliver this same consistent performance in the future. We look forward to
continuing to serve you as Firstar Fund shareowners.
PORTFOLIO MANAGER PROFILE
- --------------------------------------------------------------------------------
MARY ELLEN STANEK, CFA, President and Chief Executive Officer of Firstar
Investment Research &Management Company, LLC (FIRMCO) and DANIEL A. TRANCHITA,
CFA, Senior Vice President and Senior Portfolio Manager co-manage the Fund -
Mary Ellen since its inception on December 29, 1989 and Dan since March 1, 1999.
Mary Ellen has 21 years of investment management experience and was named a
Director of FIRMCO in 1992 and President in 1994. Prior to joining FIRMCO, she
headed the Fixed Income and Quantitative Investment Management Department at
Firstar Trust Company. Mary Ellen received her BA from Marquette University in
1978 and her MBA from the University of Wisconsin-Milwaukee in 1984. Dan has
been with Firstar since 1989 and has 10 years of investment management
experience. Dan received his BA in 1987 and his MBA in 1989 from Marquette
University. Mary Ellen and Dan are both Chartered Financial Analysts.
(PHOTO) (PHOTO)
MARY ELLEN STANEK, CFA DANIEL A. TRANCHITA, CFA
<PAGE>
(LOGO) FIRSTAR FUNDS
FIRSTAR BOND
IMMDEX/TM FUND -
INSTITUTIONAL
---------------
12/29/99 $10,000
10/90 $10,421
10/91 $12,105
10/92 $13,376
10/93 $15,154
10/94 $14,565
10/95 $16,934
10/96 $17,840
10/97 $21,256
10/98 $21,381
4/99 $21,381
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. Performance shown is for Institutional
shares, which have lower fees and expenses than Series A or Series B shares. If
these fees and expenses were reflected in the chart above, 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.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED APRIL 30, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
Fiscal
Year-To-Date 1 Year 3 Years 5Years Since Inception
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C. <C> <C> <C>
FIRSTAR BOND IMMDEX/TM FUND - INSTITUTIONAL 0.6 6.4 8.1 8.1 8.5 (12/29/89)
FIRSTAR BOND IMMDEX/TM FUND - A - NO LOAD 0.5 6.2 7.8 7.8 8.4 (12/29/89)
FIRSTAR BOND IMMDEX/TM FUND - A - LOAD<F2> (3.3) 2.2 6.4 7.0 7.9 (12/29/89)
FIRSTAR BOND IMMDEX/TM FUND - B - NO LOAD - - - - 0.9 (3/1/99)<F1>
FIRSTAR BOND IMMDEX/TM FUND - B - LOAD<F3> - - - - (4.1) (3/1/99)<F1>
LEHMAN BROTHERS GOV'T/CORP. BOND INDEX<F4> (0.1) 6.3 8.1 8.0 8.4 (12/29/89)
</TABLE>
A = Series A (retail class)
B = Series B (retail class)
<F1> Series B performance for the period March 1, 1999 to April 30, 1999
is not annualized.
<F2> Reflects maximum sales charge of 3.75%.
<F3> Reflects maximum deferred sales charge of 5.00%.
<F4> The Lehman Brothers Gov't/Corp. Bond is an unmanaged market value weighted
index measuring both principal price changes of, and income provided by,
the underlying universe of securities that comprise the index. Securities
included in the index must meet the following criteria: fixed as opposed to
variable rate; not less than one year to maturity; minimum outstanding par
value of $100 million; and rated investment grade or higher by Moody's,
Standard & Poor's, or Fitch, in that order. An investment cannot be made
directly in an index.
Effective at the close of business January 9, 1995, Firstar Funds began to offer
Series A shares. Effective at the close of business on February 28, 1999,
Firstar Funds began to offer Series B shares. Series A shares have a 3.75%
maximum sales load and are subject to an annual 0.25% service organization fee.
Series A performance prior to January 10, 1995, does not reflect the service
organization fees. Series B shares have a 5.00% maximum deferred sales charge
and are subject to an annual 0.25% service organization fee and an annual 0.75%
12b-1 fee. Performance for all share classes reflects fee waivers in effect. In
the absence of fee waivers, total return and yield would be reduced.
SECTOR DISTRIBUTION
4/30/99
- ------------------------------------
U.S. TREASURY 34%
- ------------------------------------
U.S. GOVERNMENT AGENCY 0%
- ------------------------------------
MORTGAGE-BACKED<F1> 8%
- ------------------------------------
FINANCE, BANKING, BROKERAGE 21%
- ------------------------------------
INDUSTRIAL 15%
- ------------------------------------
UTILITY 4%
- ------------------------------------
INTERNATIONAL/YANKEE 13%
- ------------------------------------
ASSET-BACKED 3%
- ------------------------------------
CASH 2%
- ------------------------------------
TOTAL 100%
- ------------------------------------
PORTFOLIO DISTRIBUTION 4/30/99
- ------------------------------------
AVERAGE MATURITY 10.7 YEARS
- ------------------------------------
AVERAGE DURATION 5.5 YEARS
- ------------------------------------
<F1> incl. U.S. Gov't. Agency-Backed
QUALITY DISTRIBUTION
4/30/99
- ------------------------------------
U.S. TREASURY 34%
- ------------------------------------
U.S. GOVERNMENT AGENCY 7%
- ------------------------------------
Aaa 7%
- ------------------------------------
Aa 8%
- ------------------------------------
A 23%
- ------------------------------------
Baa 21%
- ------------------------------------
Ba 0%
- ------------------------------------
TOTAL 100%
- ------------------------------------
SEC 30-DAY YIELD
- ------------------------------------
INSTITUTIONAL 5.88%
- ------------------------------------
A - NO LOAD 5.63%
- ------------------------------------
A - LOAD 5.42%
- ------------------------------------
B - NO LOAD/LOAD 4.98%
- ------------------------------------
TOTAL FUND NET ASSETS
4/30/99
- ------------------------------------
$508,120,145
- ------------------------------------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
APRIL 30, 1999 SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
(UNAUDITED) BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
---------- ---------- ---------- ----------
<C> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost $207,774, $317,475,
$97,164 and $482,334, respectively) $208,006 $319,592 $ 98,944 $503,226
Interest receivable 2,529 4,835 1,789 9,106
Capital shares sold 421 350 155 1,005
Receivable for securities sold - - - -
Other Assets 24 29 34 31
---------- ---------- ---------- ----------
Total Assets 210,980 324,806 100,922 513,368
---------- ---------- ---------- ----------
LIABILITIES:
Payable for securities purchased 1,571 5,028 - 4,516
Capital shares redeemed 3,218 188 38 429
Payable to affiliates 136 190 66 269
Accrued expenses and other liabilities 44 41 16 34
---------- ---------- ---------- ----------
Total Liabilities 4,969 5,447 120 5,248
---------- ---------- ---------- ----------
NET ASSETS $206,011 $319,359 $100,802 $508,120
========== ========== ========== ==========
NET ASSETS CONSIST OF:
Capital stock $208,134 $314,306 $ 98,719 $485,467
Undistributed net investment income 88 143 30 240
Undistributed accumulated net realized gains (losses) (2,443) 2,793 273 1,521
Unrealized net appreciation on investments 232 2,117 1,780 20,892
---------- ---------- ---------- ----------
Total Net Assets $206,011 $319,359 $100,802 $508,120
========== ========== ========== ==========
SERIES A:
Net assets $ 75,530 $ 34,541 $ 32,439 $102,069
Shares authorized ($.0001 par value) 500,000 500,000 500,000 500,000
Shares issued and outstanding 7,372 3,339 3,101 3,603
Net asset value and redemption price per share <F1> $10.24 $10.34 $10.46 $28.33
========== ========== ========== ==========
Maximum offering price per share <F1> $10.64 $10.74 $10.87 $29.43
========== ========== ========== ==========
SERIES B:
Net assets $ 232 $ 165 $ - $ 678
Shares authorized ($.0001 par value) 500,000 500,000 500,000 500,000
Shares issued and outstanding 23 16 - 24
Net asset value, redemption price and offering
price per share <F1> $10.25 $10.34 $10.46 $28.34
========== ========== ========== ==========
SERIES INSTITUTIONAL:
Net assets $130,249 $284,653 $ 68,363 $405,373
Shares authorized ($.0001 par value) 500,000 500,000 500,000 500,000
Shares issued and outstanding 12,712 27,517 6,533 14,302
Net asset value, redemption price and offering
price per share <F1> $10.25 $10.34 $10.46 $28.34
========== ========== ========== ==========
<F1> Amounts may not recalculate due to rounding.
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE BOND IMMDEX/TM
FUND FUND FUND FUND
---------------------- ---------------------- ---------------------- ----------------------
Six months Year Six months Year Six months Year Six months Year
ended ended ended ended ended ended ended ended
Apr. 30, Oct. 31, Apr. 30, Oct. 31, Apr. 30, Oct. 31, Apr. 30, Oct. 31,
1999 1998 1999 1998 1999 1998 1999 1998
-------- -------- -------- -------- -------- -------- -------- -------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<C> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 5,538 $ 10,479 $ 8,783 $ 17,094 $ 2,042 $ 3,552 $ 15,847 $ 31,019
Net realized gain (loss) on
investments (112) 309 2,744 1,171 275 130 1,725 512
Net change in unrealized
appreciation
(depreciation) on investments (1,824) 920 (7,175) 4,459 (711) 1,175 (14,986) 15,260
-------- -------- -------- -------- -------- -------- -------- --------
Net increase in net assets
resulting from operations 3,602 11,708 4,352 22,724 1,606 4,857 2,586 46,791
-------- -------- -------- -------- -------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Shares sold 36,550 77,282 44,805 93,944 20,996 58,804 116,240 188,904
Shares issued to owners in
reinvestment of dividends 4,421 8,368 5,342 9,710 980 1,623 12,762 25,524
Shares redeemed (29,130) (92,444) (46,882) (63,716) (19,554) (34,259) (174,295) (135,752)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease) in
net assets resulting
from capital share
transactions 11,841 (6,794) 3,265 39,938 2,422 26,168 (45,293) 78,676
-------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO SERIES A
SHAREOWNERS:
From net investment income <F1> (2,035) (3,882) (868) (1,379) (670) (991) (2,837) (4,535)
From net realized gains - - (30) - (29) - - -
-------- -------- -------- -------- -------- -------- -------- --------
(2,035) (3,882) (898) (1,379) (699) (991) (2,837) (4,535)
-------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO SERIES B
SHAREOWNERS:
From net investment income <F1> (2) - (1) - - - (4) -
From net realized gains - - - - - - - -
-------- -------- -------- -------- -------- -------- -------- --------
(2) - (1) - - - (4) -
-------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREOWNERS:
From net investment income <F1> (3,498) (6,580) (7,926) (15,656) (1,368) (2,548) (13,058) (26,368)
From net realized gains - - (272) - (52) - - -
-------- -------- -------- -------- -------- -------- -------- --------
(3,498) (6,580) (8,198) (15,656) (1,420) (2,548) (13,058) (26,368)
-------- -------- -------- -------- -------- -------- -------- --------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 9,908 (5,548) (1,480) 45,627 1,909 27,486 (58,606) 94,564
NET ASSETS:
Beginning of period 196,103 201,651 320,839 275,212 98,893 71,407 566,726 472,162
-------- -------- -------- -------- -------- -------- -------- --------
End of period (including
undistributed net investment
income of $88, $85, $143,
$156, $30, $26, $240, and
$292, respectively) $206,011 $196,103 $319,359 $320,839 $100,802 $98,893 $ 508,120 $566,726
======== ======== ======== ======== ======== ======== ======== ========
<F1> For the Tax-Exempt Intermediate Bond Fund, substantially all distributions from net investment income are exempt from federal
income tax.
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
PERIOD ENDED APRIL 30, 1999 SHORT-TERM INTERMEDIATE TAX-EXEMPT
(UNAUDITED) BOND BOND INTERMEDIATE BOND
MARKET MARKET BOND IMMDEX/TM
FUND FUND FUND FUND
-------- -------- -------- --------
INVESTMENT INCOME:
Interest income $ 6,192 $ 9,684 $2,390 $ 17,200
EXPENSES:
Investment advisory fees 613 790 251 809
Administration fees 109 169 54 290
Shareowner servicing and
accounting costs 57 74 48 87
Service organization
fees - Series A 97 40 43 124
Custody fees 14 24 10 40
Federal and state
registration fees 14 16 17 23
Professional fees 19 18 15 20
Reports to shareowners 14 5 2 18
Directors' fees and expenses 4 4 4 4
Other 4 4 1 8
-------- -------- -------- --------
Total expenses before waiver 945 1,144 445 1,423
Less: Waiver of expenses (291) (243) (97) (70)
-------- -------- -------- --------
Net expenses 654 901 348 1,353
-------- -------- -------- --------
NET INVESTMENT INCOME 5,538 8,783 2,042 15,847
-------- -------- -------- --------
REALIZED AND UNREALIZED GAIN:
Net realized gain (loss) on
investment transactions (112) 2,744 275 1,725
Net change in unrealized
appreciation
(depreciation) on
investments (1,824) (7,175) (711) (14,986)
-------- -------- -------- --------
Net gain (loss)
on investments (1,936) (4,431) (436) (13,261)
-------- -------- -------- --------
NET INCREASEIN NET ASSETS
RESULTING FROM OPERATIONS $ 3,602 $ 4,352 $1,606 $2,586
======== ======== ======== ========
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
This page intentionally left blank.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIALHIGHLIGHTS
INSTITUTIONAL
BOND FUNDS
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
----------------------------------- -------------------------------------
Net Realized
Net and Unrealized Total Dividends Distributions
Asset Value, Net Gains or From from Net From
Beginning Investment (Losses) on Investment Investment Capital Total
of Period Income<F1> Securities Operations Income Gains Distributions
<C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM BOND MARKET
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 $10.56 $0.56$ $(0.41) $0.15 $(0.56) $(0.12) $(0.68)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 10.03 0.63 0.24 0.87 (0.62) - (0.62)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 10.28 0.61 (0.03) 0.58 (0.61) - (0.61)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 10.25 0.62 0.02 0.64 (0.62) - (0.62)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 10.27 0.61 0.07 0.68 (0.61) - (0.61)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 10.34 0.28 (0.09) 0.19 (0.28) - (0.28)
- -----------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND MARKET
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 10.45 0.51 (0.69) (0.18) (0.51) (0.09) (0.60)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 9.67 0.62 0.53 1.15 (0.61) - (0.61)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 10.21 0.59 (0.02) 0.57 (0.59) - (0.59)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 10.19 0.60 0.12 0.72 (0.60) - (0.60)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 10.31 0.59 0.19 0.78 (0.59) - (0.59)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 10.50 0.29 (0.15) 0.14 (0.29) (0.01) (0.30)
- -----------------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT INTERMEDIATE BOND
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 10.26 0.41 (0.48) (0.07) (0.41) - (0.41)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 9.78 0.44 0.46 0.90 (0.44) - (0.44)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 10.24 0.43 (0.03) 0.40 (0.43) - (0.43)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 10.21 0.44 0.15 0.59 (0.44) - (0.44)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 10.36 0.44 0.16 0.60 (0.44) - (0.44)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 10.52 0.22 (0.05) 0.17 (0.22) (0.01) (0.23)
- -----------------------------------------------------------------------------------------------------------------------------------
BOND IMMDEX/TM
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 28.91 1.65 (2.74) (1.09) (1.65) (0.50) (2.15)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 25.67 1.74 2.29 4.03 (1.84) (0.04) (1.88)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 27.82 1.70 (0.27) 1.43 (1.70) - (1.70)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 27.55 1.75 0.61 2.36 (1.75) - (1.75)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 28.16 1.72 0.85 2.57 (1.71) - (1.71)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 29.02 0.85 (0.68) 0.17 (0.85) - (0.85)
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Supplemental Data and Ratios
------------------------------------------------
Ratio
Ratio of Net
of Net Investment
Net Assets, Expenses Income
Net Asset End of to Average to Average Portfolio
Value, End Total Period Net Net Turnover
of Period Return<F6> (000s) Assets Assets Rate<F6>
<C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM BOND MARKET
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 $10.03 1.46% $122,368 0.50%<F2> 5.43%<F2> 76.13%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 10.28 8.95% 94,959 0.50%<F2> 6.23%<F2> 100.58%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 10.25 5.80% 147,466 0.50%<F2> 5.92%<F2> 59.62%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 10.27 6.47% 136,084 0.50%<F2> 6.04%<F2> 77.12%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 10.34 6.84% 120,693 0.50%<F2> 5.92%<F2> 78.20%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 10.25 1.87% 130,249 0.55%<F2> 5.51%<F2> 25.42%
- -----------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND MARKET
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 9.67 (1.73)% 88,306 0.50%<F3> 5.19%<F3> 56.25%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 10.21 12.25% 128,941 0.50%<F3> 6.26%<F3> 66.69%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 10.19 5.77% 173,468 0.50%<F3> 5.84%<F3> 59.29%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 10.31 7.36% 254,521 0.50%<F3> 5.96%<F3> 40.61%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 10.50 7.83% 291,289 0.50%<F3> 5.75%<F3> 27.29%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 10.34 1.33% 284,653 0.55%<F3> 5.59%<F3> 27.48%
- -----------------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT INTERMEDIATE BOND
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 9.78 (0.73)% 26,167 0.60%<F4> 4.04%<F4> 58.54%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 10.24 9.38% 27,595 0.51%<F4> 4.45%<F4> 44.13%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 10.21 4.02% 36,652 0.50%<F4> 4.24%<F4> 30.46%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 10.36 5.96% 52,208 0.50%<F4> 4.36%<F4> 11.22%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 10.52 5.88% 66,427 0.50%<F4> 4.25%<F4> 14.38%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 10.46 1.58% 68,363 0.61%<F4> 4.15%<F4> 9.09%
- -----------------------------------------------------------------------------------------------------------------------------------
BOND IMMDEX/TM
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 25.67 (3.89)% 256,778 0.48%<F5> 6.14%<F5> 49.70%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 27.82 16.26% 290,274 0.44%<F5> 6.51%<F5> 41.67%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 27.55 5.35% 370,556 0.43%<F5> 6.23%<F5> 33.38%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 28.16 8.90% 408,018 0.42%<F5> 6.33%<F5> 35.12%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 29.02 9.41% 471,425 0.42%<F5> 6.02%<F5> 20.07%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 28.34 0.59% 405,373 0.46%<F5> 5.93%<F5> 32.30%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the Tax-Exempt Intermediate Bond Fund, substantially all investment
income is exempt from federal income tax.
<F2> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal years ended October 31, 1998,
1997, 1996, 1995, 1994 would have been 0.83%, 0.86%, 0.86%, 0.87%, 0.91%,
0.90%, respectively; and ratios of net investment income to average net
assets for the period ended April 30, 1999 and the fiscal years ended
October 31, 1998, 1997, 1996, 1995, 1994 would have been 5.23%, 5.56%,
5.68%, 5.55%, 5.82%, 5.03%, respectively.
<F3> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal years ended October 31, 1998,
1997, 1996, 1995, 1994 would have been 0.70%, 0.71%, 0.73%, 0.74%, 0.79%,
0.78%, respectively; and ratios of net investment income to average net
assets for the period ended April 30, 1999 and the fiscal years ended
October 31, 1998, 1997, 1996, 1995, 1994, and the period ended October 31,
1993 would have been 5.43%, 5.54%, 5.74%, 5.60%, 5.97%, 4.91%,
respectively.
<F4> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal years ended October 31, 1998,
1997, 1996, 1995, 1994 would have been 0.80%, 0.81%, 0.88%, 0.97%, 1.00%,
0.98% , respectively; and ratios of net investment income to average net
assets for the period ended April 30, 1999 and the fiscal years ended
October 31, 1998, 1997, 1996, 1995, 1994 would have been 3.96%, 3.94%,
3.98%, 3.77%, 3.96%, 3.67%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal years ended October 31, 1998,
1997, 1996, 1995, 1994 would have been 0.48%, 0.49%, 0.49% ,0.50%, 0.51%,
0.51%, respectively; and ratios of net investment income to average net
assets for the period ended April 30, 1999 and the fiscal years ended
October 31, 1998, 1997, 1996, 1995, 1994, would have been 5.90%, 5.95%,
6.26%, 6.16%, 6.44%, 6.10%, respectively.
<F6> Not annualized for the period ended April 30, 1999 for all funds.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIALHIGHLIGHTS
RETAIL A SHARE
BOND FUNDS
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
----------------------------------- -------------------------------------
Net Realized
Net and Unrealized Total Dividends Distributions
Asset Value, Net Gains or From from Net From
Beginning Investment (Losses) on Investment Investment Capital Total
of Period Income<F1> Securities Operations Income Gains Distributions
<C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM BOND
Year Ended 1994 $10.56 $0.56 $(0.41) $0.15 $(0.56) $(0.12) $(0.68)
Year Ended 1995 10.03 0.61 0.24 0.85 (0.60) - (0.60)
Year Ended 1996 10.28 0.58 (0.03) 0.55 (0.58) - (0.58)
Year Ended 1997 10.25 0.60 0.02 0.62 (0.60) - (0.60)
Year Ended 1998 10.27 0.58 0.07 0.65 (0.58) - (0.58)
Six Months Ended April 30, 1999 (Unaudited) 10.34 0.27 (0.10) 0.17 (0.27) - (0.27)
INTERMEDIATE BOND MARKET
Year Ended 1994 10.45 0.51 (0.69) (0.18) (0.51) (0.09) (0.60)
Year Ended 1995 9.67 0.60 0.53 1.13 (0.59) - (0.59)
Year Ended 1996 10.21 0.56 (0.02) 0.54 (0.56) - (0.56)
Year Ended 1997 10.19 0.58 0.12 0.70 (0.58) - (0.58)
Year Ended 1998 10.31 0.57 0.19 0.76 (0.57) - (0.57)
Six Months Ended April 30, 1999 (Unaudited) 10.50 0.27 (0.15) 0.12 (0.27) (0.01) (0.28)
TAX-EXEMPT INTERMEDIATE BOND
Year Ended 1994 10.26 0.41 (0.48) (0.07) (0.41) - (0.41)
Year Ended 1995 9.78 0.42 0.45 0.87 (0.42) - (0.42)
Year Ended 1996 10.23 0.40 (0.01) 0.39 (0.41) - (0.41)
Year Ended 1997 10.21 0.42 0.14 0.56 (0.42) - (0.42)
Year Ended 1998 10.35 0.41 0.17 0.58 (0.41) - (0.41)
Six Months Ended April 30, 1999 (Unaudited) 10.52 0.20 (0.05) 0.15 (0.20) (0.01) (0.21)
BOND IMMDEX/TM
Year Ended 1994 28.91 1.65 (2.74) (1.09) (1.65) (0.50) (2.15)
Year Ended 1995 25.67 1.68 2.30 3.98 (1.79) (0.04) (1.83)
Year Ended 1996 27.82 1.61 (0.26) 1.35 (1.63) - (1.63)
Year Ended 1997 27.54 1.66 0.64 2.30 (1.68) - (1.68)
Year Ended 1998 28.16 1.64 0.85 2.49 (1.64) - (1.64)
Six Months Ended April 30, 1999 (Unaudited) 29.01 0.81 (0.68) 0.13 (0.81) - (0.81)
</TABLE>
<TABLE>
<CAPTION>
Supplemental Data and Ratios
------------------------------------------------
Ratio
Ratio of Net
of Net Investment
Net Assets, Expenses Income
Net Asset Total End of to Average to Average Portfolio
Value, End Return Period Net Net Turnover
of Period <F2><F7> (000s) Assets Assets Rate<F7>
<C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM BOND
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 $10.03 1.46% $122,368 0.50%<F3> 5.43%<F3> 76.13%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 10.28 8.74% 47,730 0.69%<F3> 6.04%<F3> 100.58%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 10.25 5.54% 58,843 0.75%<F3> 5.67%<F3> 59.62%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 10.27 6.21% 65,567 0.75%<F3> 5.79%<F3> 77.12%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 10.34 6.58% 75,410 0.75%<F3> 5.67%<F3> 78.20%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 10.24 1.65% 75,530 0.80%<F3> 5.26%<F3> 25.42%
- -----------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND MARKET
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 9.67 (1.73)% 88,306 0.50%<F4> 5.19%<F4> 56.25%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 10.21 12.04% 11,576 0.69%<F4> 6.07%<F4> 66.69%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 10.19 5.51% 17,392 0.75%<F4> 5.59%<F4> 59.29%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 10.31 7.09% 20,691 0.75%<F4> 5.71%<F4> 40.61%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 10.50 7.57% 29,550 0.75%<F4> 5.50%<F4> 27.29%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 10.34 1.21% 34,541 0.80%<F4> 5.34%<F4> 27.48%
- -----------------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT INTERMEDIATE BOND
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 9.78 (0.73)% 26,167 0.60%<F5> 4.04%<F5> 58.54%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 10.23 9.07% 7,711 0.71%<F5> 4.25%<F5> 44.13%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 10.21 3.87% 10,690 0.75%<F5> 3.99%<F5> 30.46%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 10.35 5.60% 19,199 0.75%<F5> 4.11%<F5> 11.22%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 10.52 5.73% 32,466 0.75%<F5> 4.00%<F5> 14.38%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 10.46 1.45% 32,439 0.86%<F5> 3.90%<F5> 9.09%
- -----------------------------------------------------------------------------------------------------------------------------------
BOND IMMDEX/TM
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 25.67 (3.89)% 256,778 0.48%<F6> 6.14%<F6> 49.70%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 27.82 16.05% 21,875 0.64%<F6> 6.31%<F6> 41.67%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 27.54 5.06% 42,671 0.68%<F6> 5.98%<F6> 33.38%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 28.16 8.68% 64,144 0.67%<F6> 6.08%<F6> 35.12%
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 29.01 9.11% 95,301 0.67%<F6> 5.77%<F6> 20.07%
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended April 30, 1999 (Unaudited) 28.33 0.47% 102,069 0.71%<F6> 5.68%<F6> 32.30%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> For the Tax-Exempt Intermediate Bond Fund, substantially all investment
income is exempt from federal income tax.
<F2> The total return calculation for the Funds does not reflect the maximum
sales charge of 3.75%.
<F3> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal years ended October 31, 1998,
1997, 1996, 1995, 1994 would have been 1.08%, 1.11%, 1.11%, 1.12%, 1.10%,
0.90%, respectively; and ratios of net investment income to average net
assets for the period ended April 30, 1999 and the fiscal years ended
October 31, 1998, 1997, 1996, 1995, 1994 would have been 4.98%, 5.31%,
5.43%, 5.30%, 5.63%, 5.03%, respectively.
<F4> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal years ended October 31, 1998,
1997, 1996, 1995, 1994 would have been 0.95%, 0.96%, 0.98%, 0.99%, 0.98%,
0.78%, respectively; and ratios of net investment income to average net
assets for the period ended April 30, 1999 and the fiscal years ended
October 31, 1998, 1997, 1996, 1995 and 1994 would have been 5.19%, 5.29%,
5.49%, 5.35%, 5.78%, 4.91%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal years ended October 31, 1998,
1997, 1996, 1995, 1994 would have been 1.05%, 1.06%, 1.13%, 1.22%, 1.20%,
0.98%, respectively; and ratios of net investment income to average net
assets for the period ended April 30, 1999 and the fiscal years ended
October 31, 1998, 1997, 1996, 1995, 1994 would have been 3.71%, 3.69%,
3.73%, 3.52%, 3.76%, 3.67%, respectively.
<F6> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal years ended October 31, 1998,
1997, 1996, 1995, 1994 would have been 0.73%, 0.74%, 0.74%, 0.75%, 0.71%,
0.51%, respectively; and ratios of net investment income to average net
assets for the period ended April 30, 1999 and the fiscal years ended
October 31, 1998, 1997, 1996, 1995, 1994, would have been 5.65%, 5.70%,
6.01%, 5.91%, 6.24%, 6.10%, respectively.
<F7> Not annualized for the period ended April 30, 1999 for all funds.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIALHIGHLIGHTS
RETAIL B SHARE
BOND FUNDS
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
----------------------------------- -------------------------------------
Net Realized
Net and Unrealized Total Dividends Distributions
Asset Value, Net Gains or From from Net From
Beginning Investment (Losses) on Investment Investment Capital Total
of Period Income<F2> Securities Operations Income Gains Distributions
<C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM BOND MARKET
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through April 30, 1999 (Unaudited)$10.23 $0.04$ $0.08$ $0.12$ $(0.10)$ - $(0.10)
- -----------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND MARKET
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through April 30, 1999 (Unaudited) 10.31 0.02 0.09 0.11 (0.08) - (0.08)
- -----------------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT INTERMEDIATE BOND
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through April 30, 1999 (Unaudited) 10.51 0.05 (0.05) 0.00 (0.05) - (0.05)
- -----------------------------------------------------------------------------------------------------------------------------------
BOND IMMDEX/TM
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through April 30, 1999 (Unaudited) 28.34 0.18 0.08 0.26 (0.26) - (0.26)
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Supplemental Data and Ratios
------------------------------------------------
Ratio
Ratio of Net
of Net Investment
Net Assets, Expenses Income
Net Asset Total End of to Average to Average Portfolio
Value, End Return Period Net Net Turnover
of Period <F3><F6> (000s) Assets<F7> Assets Rate<F6>
<C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM BOND MARKET
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through April 30, 1999 (Unaudited) $10.25 1.12% $232 1.61%<F4> 4.80%<F4> 25.42%
- -----------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND MARKET
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through April 30, 1999 (Unaudited) 10.34 1.04% 165 1.61%<F5> 5.10%<F5> 27.48%
- -----------------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT INTERMEDIATE BOND
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through April 30, 1999 (Unaudited) 10.46 (0.03)% - - - 9.09%
- -----------------------------------------------------------------------------------------------------------------------------------
BOND IMMDEX/TM
- -----------------------------------------------------------------------------------------------------------------------------------
March 1, 19991 through April 30, 1999 (Unaudited) 28.34 0.93% 678 1.53% 5.47% 32.30%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> For the Tax-Exempt Intermediate Bond Fund, substantially all investment
income is exempt from federal income tax.
<F3> The total return calculation for the Funds does not reflect the maximum
deferred sales charge of 5.00%.
<F4> Without fees waived, ratio of net expenses to average net assets for the
period ended April 30, 1999 would have been 1.89%, and ratio of net
investment income for the period ended April 30, 1999 would have been
4.52%.
<F5> Without fees waived, ratio of net expenses to average net assets for the
period ended April 30, 1999 would have been 1.76%, and ratio of net
investment income for the period ended April 30, 1999 would have been
4.95%.
<F6> Not annualized for the period ended April 30, 1999 for all funds.
<F7> Annualized for the period ended April 30, 1999 for all funds.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SHORT-TERM BOND MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
LONG-TERM INVESTMENTS 99.1%
ASSET-BACKED SECURITIES 26.8%
AUTO LOAN RECEIVABLES 0.1%
General Motors Acceptance Corp. Grantor,
$ 170 Series 1991-A1, Class A, 8.17%, 1/02/00 $ 172
----------
CREDIT CARD RECEIVABLES 12.5%
Banc One Credit Card Master Trust:
2,000 Series 1995-B, Class A, 6.30%, 9/15/00 2,024
1,325 Series 1995-A, Class A, 6.15%, 7/15/02 1,337
Chase Manhattan Grantor Trust,
195 Series 1995-B, Class A, 5.90%, 9/15/99 195
Chemical Master Credit Card Trust I,
3,060 Series 1995-2, Class A, 6.23%, 6/15/03 3,095
Citibank Credit Card Master Trust I, Principal Only:
5,220 Series 1996-1, Class A, 0.00%, 2/07/01 4,738
1,500 Series 1997-6, Class A, 0.00%, 8/15/06 1,083
Household Affinity Credit Card Master Trust I,
1,650 Series 1993-2, Class A, 5.60%, 11/15/00 1,655
NationsBank Credit Card Master Trust:
3,995 Series 1995-1, Class A, 6.45%, 8/15/00 4,048
102 Series 1995-1, Class A, 6.45%, 4/15/03 103
Sears Credit Account Master Trust:
984 Series 1995-2, Class A, 8.10%, 6/15/04 1,008
2,000 Series 1996-1, Class A, 6.20%, 2/16/06 2,024
Spiegel Credit Card Master Trust:
2,000 Series 1994-B, Class A, 8.15%, 6/15/04 2,039
2,325 Series 1995-A, Class A, 7.50%, 9/15/04 2,371
----------
25,720
----------
HOME EQUITY LOAN RECEIVABLES 14.2%
AFC Home Equity Loan Trust:
2,089 Series 1993-1, Class A, 5.90%, 5/20/08 2,090
1,505 Series 1993-4, Class 1A, 5.80%, 2/26/24 1,484
1,470 Series 1994-1, Class 1A, 6.40%, 5/25/25 1,478
Advanta Home Equity Loan Trust:
904 Series 1992-3, Class A1, 6.05%, 9/25/08 902
1,544 Series 1993-2, Class A2, 6.15%, 10/25/09 1,545
Corestates Home Equity Trust,
3,000 Series 1996-1, Class A3, 7.00%, 12/15/09 3,056
EQCC Home Equity Loan Trust:
2,209 Series 1993-3, Class A, 5.15%, 9/15/08 2,170
1,554 Series 1993-4, Class A, 5.725%, 12/15/08 1,547
207 Series 1996-1, Class A2, 5.82%, 9/15/09 208
2,500 Series 1996-2, Class A2, 7.125%, 12/15/10 2,550
Equivantage Home Equity Loan Trust,
2,210 Series 1996-1, Class A, 6.55%, 10/25/25 2,229
GE Home Equity Loan Asset-Backed Certificates:
11 Series 1991-1, Class A, 7.20%, 8/30/11 11
2,500 Series 1991-1, Class B, 8.70%, 9/15/11 2,495
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
HOME EQUITY LOAN RECEIVABLES 14.2% (CONT.)
IMC Home Equity Loan Trust,
$2,000 Series 1997-3, Class A4, 6.84%, 10/20/13 $ 2,012
The Money Store Home Equity Trust:
860 Series 1995-C, Class A3, 6.55%, 9/15/21 866
1,990 Series 1993-B, Class A3, 6.10%, 5/15/22 1,993
UCFC Home Equity Loan:
733 Series 1993-B2, Class A2, 6.20%, 7/25/14 733
1,000 Series 1996-C1, Class A4, 7.475%, 3/15/20 1,036
850 Series 1995-A2, Class A7, 8.30%, 2/10/26 878
----------
$29,283
----------
CORPORATE BONDS 24.8%
ABN AMRO Bank Subordinate Notes,
1,750 6.625%, 10/31/01 1,773
AT&T Capital Corp. Company Guarantee,
3,295 6.25%, 5/15/01 3,317
Bankers Trust Company Subordinate Debentures,
1,000 8.125%, 5/15/02 1,046
Bankers Trust Company Subordinate Notes,
1,500 8.125%, 4/01/02 1,573
Bear Stearns Company Senior Notes:
3,000 6.75%, 8/15/00 3,042
800 9.375%, 6/01/01 852
Beneficial Corp. Notes,
800 8.20%, 3/15/02 847
Dillard Investment Debentures,
2,000 9.25%, 2/01/01 2,108
Donaldson Lufkin Jenrette Senior Notes,
4,000 6.00%, 12/01/01 4,009
Federal Express Corporation Debentures,
2,000 9.625%, 10/15/19 2,098
First Chicago Corporation Subordinated Notes,
2,230 11.25%, 2/20/01 2,438
Lehman Brothers Holdings, Inc. Notes:
2,386 7.625%, 7/15/99 2,395
1,100 6.65%, 11/08/00 1,110
Lehman Brothers, Inc. Senior Notes,
2,000 8.75%, 5/15/02 2,217
Lehman Brothers, Inc. Senior Subordinated Notes:
2,739 10.00%, 5/15/99 2,742
1,700 9.875%, 10/15/00 1,789
Marlin Water Trust Senior Notes,
1,850 7.09%, 12/15/01 (Acquired 12/08/98; cost $1,850)<F1> 1,871
MFS Communications Senior Discount Notes,
2,472 8.875%, 1/15/06 2,642
Paine Webber Group, Inc. Medium Term Notes,
1,000 6.31%, 7/22/99 1,001
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SHORT-TERM BOND MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
CORPORATE BONDS 24.8% (CONT.)
Paine Webber Group, Inc. Notes,
$ 1,025 6.45%, 12/01/03 $ 1,021
Security Pacific Corporation Subordinate Notes,
1,458 11.50%, 11/15/00 1,569
The Money Store Company Guarantee,
1,500 8.05%, 4/15/02 1,585
Transamerica Financial Corp. Senior Notes,
1,900 6.125%, 11/01/01 1,909
Transamerica Financial Corp. Subordinated Notes,
2,500 6.75%, 6/01/00 2,529
USF&G Corporation Senior Notes,
1,455 8.375%, 6/15/01 1,521
Worldcom, Inc. Senior Notes,
2,000 8.875%, 1/15/06 2,146
----------
51,060
----------
MORTGAGE-BACKED SECURITIES 9.8%
Advanta Mortgage Loan Trust:
1,833 Series 1993-3, Class A1, 4.90%, 1/25/10 1,811
1,667 Series 1993-4, Class A, 5.50%, 3/25/10 1,629
BankAmerica Manufactured Housing Contract,
3,500 Series 1997-2, Class A6, 6.47%, 4/10/15 3,550
Collateralized Mortgage Obligation Trust,
1,037 Series 15, Class E, 5.00%, 3/20/18 1,030
Green Tree Financial Corp. Pass-Thru Certificates:
1,136 Series 1992-2, Class A4, 8.15%, 1/15/18 1,177
1,023 Series 1993-3, Class A5, 5.75%, 10/15/18 1,021
224 Series 1994-4, Class A3, 7.70%, 7/15/19 224
1,368 Series 1994-8, Class A4, 8.50%, 4/15/25 1,387
1,000 Series 1995-5, Class A5, 6.90%, 9/15/26 1,023
4,000 Series 1995-9, Class A4, 6.45%, 1/15/27 4,029
300 Series 1994-3, Class A3, 6.20%, 6/15/19 302
Prudential Securities Financial Asset Funding Corp.,
595 Series 1993-4, Class A3, 6.83%, 9/25/09 598
Prudential Securities Secured Financing Corp.:
774 Series 1998-C1, Class A1, 6.105%, 11/15/02 776
1,685 Series 1994-5, Class A1, 5.66%, 5/25/25 1,658
----------
20,215
----------
INTERNATIONAL/YANKEE (U.S. $ DENOMINATED) 7.3%
Ford Capital BV Debentures,
1,450 9.875%, 5/15/02 1,597
Ford Capital BV Notes,
2,935 10.125%, 11/15/00 3,124
Korea Development Bank Bonds:
2,000 6.25%, 5/01/00 1,983
2,000 7.125%, 9/17/01 2,001
Quebec Province CDA Debentures,
1,125 13.25%, 9/15/14 1,204
Sumitomo Bank International Notes,
5,000 9.55%, 7/15/00 5,056
----------
14,965
----------
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
OTHER 0.4%
Florida Housing Finance Agency:
$ 250 Antigua Club-A-2, 8.625%, 8/01/01 $ 257
345 Brittany Apartments-C-2, 8.625%, 8/01/02 355
295 Maitland Club-B-2, 8.625%, 8/01/01 306
----------
918
----------
U.S. GOVERNMENT AGENCY-BACKED
MORTGAGE ISSUES 5.4%
Federal Home Loan Mortgage Corporation (FHLMC)
Participation Certificates:
10 7.00%, 12/01/01 10
87 7.75%, 7/01/09 90
Federal Home Loan Mortgage Corporation (FHLMC)
Real Estate Mortgage Investment Conduit (REMIC):
17 Series 1243, Class K, 7.50%, 8/15/01 17
312 Series 1101, Class L, 6.95%, 9/15/20 312
726 Series 1022, Class J, 6.00%, 12/15/20 721
29 Series 1169, Class D, 7.00%, 5/15/21 29
294 Series 1286, Class E, 7.00%, 10/15/21 295
Federal National Mortgage Association (FNMA)
Real Estate Mortgage Investment Conduit (REMIC):
1,002 Series X-19A, Class A, 6.50%, 10/25/00 1,002
978 Series 1993-G06, Class K, 7.00%, 11/25/01 975
747 Series 1991-63, Class G, 6.95%, 5/25/06 755
507 Series 1993-86, Class E, 6.00%, 1/25/07 507
3,600 Series 1996-W4, Class A4, 6.743%, 12/25/11 3,657
39 Series 1992-138, Class C, 6.00%, 12/25/18 39
94 Series G92-35, Class C, 7.50%, 7/25/20 94
37 Series 1991-154, Class PH, 7.50%, 9/25/20 37
760 Series 1991-82, Class PL, 7.00%, 12/15/20 760
829 Series G92-53, Class H, 7.00%, 7/25/21 830
U.S. Department of Veterans Affairs Mortgage Trust,
1,000 (REMIC), Series 1992-1, Class J, 7.75%, 2/15/01 1,013
----------
11,143
----------
U.S. TREASURY OBLIGATIONS 24.6%
U.S. Treasury Bonds,
13,875 10.75%, 2/15/03 16,416
U.S. Treasury Notes:
31,450 6.625%, 3/31/02 32,659
1,571 6.375%, 8/15/02 1,571
----------
50,646
----------
Total Long-Term Investments (Cost $203,870) 204,122
----------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SHORT-TERM BOND MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Number Market
of Shares Value
(in thousands) (in thousands)
- -------------- ---------------
SHORT-TERM INVESTMENTS 1.9%
INVESTMENT COMPANIES 1.9%
10 Financial Square Prime Obligation Fund $ 10
3,894 Short-Term Investments Co. Liquid Assets Portfolio 3,894
----------
Total Short-Term Investments (Cost $3,904) 3,904
----------
Total Investments (Cost $207,774) 101.0% 208,026
----------
Liabilities, less Other Assets (1.0)% (2,015)
----------
TOTAL NET ASSETS 100.0% $206,011
==========
<F1>Unregistered security
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERMEDIATE BOND MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
LONG-TERM INVESTMENTS 94.2%
ASSET-BACKED SECURITIES 11.4%
AUTO LOAN RECEIVABLES 0.1%
Keycorp Auto Grantor Trust,
$ 119 Series 1995-A, Class A, 5.80%, 7/15/00 $ 119
----------
CREDIT CARD RECEIVABLES 6.4%
American Express Master Trust,
2,000 Series 1994-2, Class A, 7.60%, 8/15/02 2,080
Banc One Credit Card Master Trust,
1,000 Series 1995-A, Class A, 6.15%, 7/15/02 1,009
Chemical Master Credit Card Trust,
633 Series 1995-3, Class A, 6.23%, 4/15/05 643
Citibank Credit Card Master Trust, Principal Only:
11,900 Series 1996-1, Class A, 0.00%, 2/07/01 10,800
1,875 Series 1997-6, Class A, 0.00%, 8/15/06 1,354
HFC Private Label Credit Card Master Trust II,
333 Series 1994-2, Class A, 7.80%, 9/20/03 335
Household Affinity Credit Card Master Trust I,
3,300 Series 1993-2, Class A, 5.60%, 11/15/00 3,309
Spiegel Credit Card Master Trust,
950 Series 1994-B, Class A, 8.15%, 6/15/04 968
20,498
HOME EQUITY LOAN RECEIVABLES 4.9%
Advanta Home Equity Loan Trust:
330 Series 1993-1, Class A1, 5.95%, 3/25/09 329
1,119 Series 1993-1, Class A2, 5.95%, 5/25/09 1,116
AFC Home Equity Loan Trust,
2,189 Series 1993-4, Class 1A, 5.80%, 2/26/24 2,159
Contimortgage Home Equity Loan Trust:
2,950 Series 1997-5, Class A5, 6.63%, 12/15/20 2,980
1,000 Series 1997-2, Class A9, 7.09%, 4/15/28 1,025
Corestates Home Equity Trust,
1,375 Series 1996-1, Class A3, 7.00%, 12/15/09 1,401
EQCC Home Equity Loan Trust:
949 Series 1994-4, 8.68%, 10/15/08 967
1,026 Series 1993-4, Class A, 5.725%, 12/15/08 1,021
1,370 Series 1994-1, Class A, 5.80%, 3/15/09 1,365
2,000 Series 1996-1, Class A4, 6.56%, 3/15/23 1,987
UCFC Home Equity Loan,
1,323 Series 1995-C2, Class A6, 6.825%, 10/10/26 1,343
----------
15,693
----------
CORPORATE BONDS 40.1%
ABN AMRO Bank NV,
1,600 7.25%, 5/31/05 1,677
Aetna Services, Inc. Company Guarantee,
3,000 6.75%, 8/15/01 3,020
Aetna Services, Inc. Debentures,
1,375 6.75%, 9/15/13 1,331
American General Finance Corp. Debentures,
650 9.625%, 7/15/00 680
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
CORPORATE BONDS 40.1% (CONT.)
AT&T Capital Corporation,
$ 2,000 6.25% 5/15/01 $ 2,013
BankAmerica Corporation Subordinated Notes:
465 9.75%, 7/01/00 486
2,000 10.00%, 2/01/03 2,258
BankBoston Notes,
1,450 6.375%, 4/15/08 1,431
Bankers Trust - NY, Subordinated Debentures:
1,000 9.50%, 6/14/00 1,038
6,000 8.125%, 5/15/02 6,275
Bear Stearns Company Senior Notes:
1,312 6.75%, 8/15/00 1,330
2,000 9.375%, 6/01/01 2,131
150 6.25%, 7/15/05 148
Caterpillar, Inc. Sinking Fund Debentures,
2,112 9.75%, 6/01/19 2,219
Chase Manhattan Corp. Subordinated Notes,
2,300 9.375%, 7/01/01 2,461
Continental Bank N.A. Subordinated Notes,
2,875 12.50%, 4/01/01 3,170
Continental Cablevision, Inc. Debentures,
4,525 9.50%, 8/01/13 5,386
Dillard Investment Debentures,
1,895 9.25%, 2/01/01 1,997
Donaldson Lufkin Jenrette Senior Notes,
3,000 5.875%, 4/01/02 2,994
Federal Express Corporation Notes,
1,500 9.65%, 6/15/12 1,817
Federal Express Sinking Fund Pass-Thru Certificates,
898 7.89%, 9/23/08 948
First Interstate Bancorp Subordinated Notes,
500 9.90%, 11/15/01 545
First National Bank Omaha Subordinated Notes,
1,600 7.32%, 12/01/10 1,636
First USA Bank Senior Notes,
1,000 5.85%, 2/22/01 998
Fleet Mortgage Group Notes,
2,405 6.50%, 6/15/00 2,423
Ford Motor Credit Co. Debentures,
1,097 9.50%, 4/15/00 1,139
Ford Motor Credit Co. Medium Term Notes,
1,000 9.03%, 12/30/09 1,128
Ford Motor Credit Co. Notes,
2,575 8.20%, 2/15/02 2,731
Frontier Corporation Debentures,
1,000 9.00%, 8/15/21 1,097
General Motors Acceptance Corp. Debentures,
2,217 9.375%, 4/01/00 2,292
General Motors Acceptance Corp. Notes,
1,000 9.625%, 12/15/01 1,091
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERMEDIATE BOND MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
CORPORATE BONDS 40.1% (CONT.)
Georgia Pacific Corp. Debentures:
$1,150 9.50%, 12/01/11 $1,397
775 9.50%, 5/15/22 871
Goldman Sachs Group Notes,
5,000 6.25%, 2/01/03 (Acquired 2/01/96; Cost $4,988)<F1> 5,029
Lehman Brothers Holdings, Inc. Notes:
2,000 6.90%, 7/15/99 2,005
1,500 6.65%, 11/08/00 1,513
1,212 8.875%, 3/01/02 1,289
800 8.75%, 5/15/02 851
Lehman Brothers, Inc. Senior Subordinated Debentures,
1,000 6.125%, 2/01/01 1,000
2,450 11.625%, 5/15/05 3,030
Marlin Water Trust Senior Notes,
2,975 7.09%, 12/15/01 (Acquired 12/08/98; Cost $2,975)<F1> 3,008
Merrill Lynch & Company Notes,
7,000 5.75%, 11/04/02 6,967
National Westminster Bank Debentures,
1,700 9.375%, 11/15/03 1,914
National Westminster Bank Subordinated Notes,
700 9.45%, 5/01/01 745
NCNB Corp. Subordinated Notes,
2,380 10.20%, 7/15/15 3,122
Newcourt Credit Group Notes,
1,800 6.875%, 2/16/05 (Acquired 3/16/99, Cost $1,032)<F1> 1,850
News America Holdings Debentures,
750 10.125%, 10/15/12 863
Paine Webber Group, Inc. Notes,
500 8.875%, 3/15/05 550
Paine Webber Group, Inc. Medium Term Notes:
2,080 7.70%, 2/11/00 2,109
3,000 7.115%, 1/27/04 3,075
J.C. Penney Company, Inc. Debentures:
1,950 9.75%, 6/15/21 2,134
875 8.25%, 8/15/22 930
Salomon, Inc. Senior Notes:
1,450 7.75%, 5/15/00 1,483
1,100 6.75%, 2/15/03 1,127
Salomon Smith Barney Holdings, Inc. Notes,
1,400 6.625%, 6/01/00 1,417
The Charles Schwab Corp. Medium Term Notes,
650 6.06%, 10/02/00 653
Sears Roebuck Acceptance Corporation Notes,
1,300 6.25%, 5/01/09 1,272
Security Capital Group, Inc. Medium Term Notes
1,700 7.75%, 11/15/03 1,709
Security Pacific Corp. Subordinated Notes,
1,158 11.00%, 3/01/01 1,251
Toll Road Investors Bonds,
4,800 0.00%, 2/15/04 (Acquired 4/23/99, Cost $3,591)<F1> 3,591
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
CORPORATE BONDS 40.1% (CONT.)
Transamerica Financial Corporation Senior Notes,
$3,225 6.125%, 11/01/01 $ 3,241
United Airlines Pass-Thru Certificates,
3,152 7.27%, 1/30/13 3,184
United HealthCare Corporation Notes,
5,000 6.60%, 12/01/03 (Acquired 11/19/98, Cost $4,989)<F1> 5,004
----------
$128,074
----------
MORTGAGE-BACKED SECURITIES 3.7%
Green Tree Financial Corp. Pass-Thru Certificates:
160 Series 1993-4, Class A3, 6.25%, 1/15/19 160
1,500 Series 1994-4, Class A4, 7.95%, 7/15/19 1,547
MDC Asset Investors Trust,
Real Estate Mortgage Investment Conduit (REMIC),
597 Series VIII, Class 8, 7.75%, 9/25/17 617
Prudential Securities Financial Asset Funding Corp.,
1,678 Series 1993-8, Class A, 5.775%, 11/15/14 1,668
Prudential Securities Secured Financing Corp.:
2,053 Series 1993-1, Class A, 6.44%, 2/16/21 2,063
2,060 Series 1994-5, Class A1, 5.66%, 5/25/25 2,027
Salomon Brothers Mortgage Securities,
1,022 Series 1986-1, Class A, 6.00%, 12/25/11 1,019
Westam Mortgage Financial Corporation,
2,652 Series 11, Class A, 6.36%, 8/26/20 2,644
----------
11,745
----------
INTERNATIONAL/YANKEE (U.S. $ DENOMINATED) 9.4%
Banco Santander-Chile Notes,
3,450 6.50%, 11/01/05 3,416
Corp Andina De Fomento Notes,
750 7.75%, 3/01/04 750
Dresdner Bank Subordinated Debentures,
650 7.25%, 9/15/15 660
Ford Capital BV Debentures:
175 9.875%, 5/15/02 193
600 9.50%, 6/01/10 730
Ford Capital BV Notes,
4,153 10.125%, 11/15/00 4,420
Hydro-Quebec Corporation Debentures,
2,250 11.75%, 2/01/12 3,238
Korea Development Bank Bonds:
1,300 6.25%, 5/01/00 1,289
1,075 7.125%, 9/17/01 1,076
Korea Electric Power Debentures:
820 7.75%, 4/01/13 783
750 6.75%, 8/01/27 705
Midland Bank PLC Subordinated Notes,
4,225 6.95%, 3/15/11 4,282
National Bank of Hungary Debentures,
1,350 8.875%, 11/01/13 1,532
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERMEDIATE BOND MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
INTERNATIONAL/YANKEE (U.S. $ DENOMINATED)
9.4% (CONT.)
Norsk Hydro A/S Debentures,
$ 1,350 9.00%, 4/15/12 $ 1,602
Pohang Iron & Steel Notes,
875 7.125%, 7/15/04 847
Quebec Province Guarantee,
400 13.25%, 9/15/14 428
Sumitomo Bank International Notes,
1,600 9.55%, 7/15/00 1,618
Wharf Capital International Ltd. Notes:
800 8.875%, 11/01/04 759
1,725 7.625%, 3/13/07 1,515
----------
29,843
----------
U.S. GOVERNMENT AGENCY-BACKED
MORTGAGE ISSUES 3.9%
Federal Home Loan Mortgage Corporation (FHLMC)
Real Estate Mortgage Investment Conduit (REMIC):
150 Series 1624, Class KE, 6.00%, 10/15/02 151
714 Series 1289, Class PR, 7.50%, 2/15/03 726
632 Series 1456, Class LA, 7.50%, 5/15/03 649
491 Series 1496, Class KA, 6.00%, 12/15/03 492
796 Series 8, Class VB, 7.00%, 4/25/03 810
300 Series 1551, Class E, 6.50%, 9/15/07 303
149 Series 1101, Class L, 6.95%, 9/15/20 149
504 Series 1167, Class E, 7.50%, 11/15/21 516
1,532 Series 1286, Class A, 6.00%, 5/15/22 1,516
Federal National Mortgage Association (FNMA)
Real Estate Mortgage Investment Conduit (REMIC):
290 Series 1993-23, Class PU, 7.50%, 1/25/00 291
500 Series 1992-73, Class L, 7.50%, 1/25/01 504
964 Series 1992-18, Class HB, 7.20%, 3/25/02 972
3,500 Series 1993-37, Class B, 7.00%, 7/25/02 3,546
699 Series 1992-103, Class L, 7.50%, 11/25/02 709
357 Series 1990-89, Class K, 6.50%, 7/25/20 358
287 Series 1991-77, Class PH, 7.00%, 11/25/20 287
77 Series 1991-82, Class PL, 7.00%, 12/15/20 77
U.S. Department of Veterans Affairs Mortgage
Trust (REMIC),
500 Series 1992-2, Class J, 7.00%, 3/15/01 505
----------
12,561
----------
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
U.S. TREASURY OBLIGATIONS 25.7%
U.S. Treasury Bonds:
$ 10,000 13.75%, 8/15/04 $ 13,797
29,600 10.75%, 8/15/05 37,925
U.S. Treasury Strips, Principal Only,
40,975 0.00%, 11/15/04 30,463
----------
82,185
----------
Total Long-Term Investments (Cost $298,601) 300,718
==========
Number
of Shares
(in thousands)
- ---------------
SHORT-TERM INVESTMENTS 5.9%
INVESTMENT COMPANIES 5.9%
3,589 Financial Square Prime Obligation Fund 3,589
15,285 Short-Term Investments Co. Liquid Assets Portfolio 15,285
----------
Total Short-Term Investments (Cost $18,874) 18,874
----------
Total Investments (Cost $317,475) 100.1% 319,592
----------
Liabilities, less Other Assets (0.1)% (233)
----------
TOTAL NET ASSETS 100.0% $319,359
==========
<F1> Unregistered security
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
TAX-EXEMPT INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
GENERAL OBLIGATION 6.9%
Elgin Illinois,
$ 2,990 7.25%, 1/01/04 $ 3,406
Lake County, Illinois, School District 112,
1,415 9.00%, 12/01/05 1,802
Washington State:
100 6.75%, 10/01/01 101
1,500 6.30%, 9/01/02 1,602
----------
Total General Obligation (Cost $8,577) 6,911
----------
REVENUE BONDS 3.0%
HOUSING 1.1%
South Dakota Housing Development Authority -
Homeownership Mortgage,
1,105 4.85%, 5/01/01 1,115
----------
UNIVERSITY 0.4%
New England Education Student Loan
Marketing Corporation,
360 5.80%, 3/01/02 377
----------
UTILITIES 1.5%
Scottsdale Arizona Water and Sewer,
1,290 7.00%, 7/01/06 1,520
----------
Total Revenue Bonds (Cost $5,963) 3,012
----------
PREREFUNDED AND ESCROWED
TO MATURITY 69.2%
Adams County, Mississippi Hospital Revenue,
1,000 8.00%, 10/01/16, Prerefunded 10/01/01 1,120
Alaska State Housing Finance Corporation,
1,465 6.375%, 12/01/12, Prerefunded 12/01/02 1,622
Anniston, Alabama Regional Medical Center Board Project,
1,400 8.00%, 7/01/11, Escrowed to Maturity 1,755
Arizona State Municipal Funding Program,
1,500 8.75%, 8/01/07, Escrowed to Maturity 1,975
Arizona Health Facilities Hospital Revenue,
2,000 7.25%, 11/01/14, Prerefunded 11/01/03 2,148
Cherokee County, Oklahoma,
1,340 0.00%, 11/01/11, Escrowed to Maturity 734
Chicago, Illinois Motor Fuel Tax Revenue,
1,000 7.05%, 1/01/07, Prerefunded 1/01/01 1,075
Clark County, Nevada School District,
370 7.00%, 6/01/09, Prerefunded 6/01/01 399
Cleveland, Ohio Parking Facilities Revenue,
1,125 8.10%, 9/15/22, Prerefunded 9/15/02 1,296
Convention Center Authority - Rhode Island Revenue,
1,000 6.65%, 5/15/12, Prerefunded 5/15/01 1,079
Delaware County, Pennsylvania - Elwyn Inc. Project,
1,000 8.35%, 6/01/15, Prerefunded 6/01/00 1,073
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
PREREFUNDED AND ESCROWED
TO MATURITY 69.2% (CONT.)
Delaware State Economic Development Authority,
First Mortgage; GilpinHall Project
$ 2,800 7.625%, 7/01/25, Prerefunded 7/01/05 $ 3,384
Delaware State Health Facilities Authority Revenue,
1,265 7.00%, 10/01/15, Prerefunded to Various Dates 1,453
Des Plaines, Illinois Hospital Facilities -
Holy Family Hospital Project,
620 10.75%, 1/01/14, Prerefunded 7/01/02 750
Detroit, Michigan Water Supply System,
1,000 6.25%, 7/01/12, Prerefunded 7/01/02 1,066
Douglas County, Nebraska Hospital Authority Revenue,
1,000 7.25%, 11/01/21, Prerefunded 11/01/01 1,105
Farmington, New Mexico Power Revenue Bonds,
1,890 9.875%, 1/01/13, Prerefunded 7/01/05 2,485
Fruita, Colorado, Escrowed to Maturity:
370 9.25%, 10/01/01 398
495 9.25%, 4/01/03 581
Fulco, Georgia Hospital Authority Anticipation Certificates,
1,090 6.25%, 9/01/13, Prerefunded 9/01/02 1,197
Granite, Illinois Single Family Mortgage Revenue,
1,000 7.75%, 10/01/11, Escrowed to Maturity 1,194
Hodgkins, Illinois,
1,200 9.50%, 12/01/09, Prerefunded 12/01/01 1,404
Houston, Texas Airport Systems Revenue,
950 8.20%, 7/01/05, Escrowed to Maturity 1,128
Illinois Educational Facilities Authority -
Chicago College Of Osteopathic Medicine,
160 8.75%, 7/01/99, Escrowed to Maturity 161
Illinois Educational Facilities Authority - Loyola University,
3,355 7.125%, 7/01/21, Prerefunded 7/01/01 3,663
Illinois Health Facilities Authority Revenue,
Memorial Hospital,
1,000 7.25%, 5/01/22, Prerefunded 5/01/02 1,119
Illinois Health Facilities Authority Revenue,
Evangelical - A
1,320 6.75%, 4/15/12, Escrowed to Maturity 1,548
Intermountain Power Agency, Utah Supply Revenue,
2,500 0.00%, 7/01/21, Prerefunded 7/01/00 289
Kentucky State Turnpike Authority Revenue,
1,400 7.20%, 7/01/09, Escrowed to Maturity 1,622
Louisiana Public Facilities Authority Hospital Revenue,
1,915 7.25%, 10/01/22, Prerefunded 10/01/02 2,167
Louisville, Kentucky Water & Sewer Revenue,
1,250 6.00%, 11/15/07, Escrowed to Maturity 1,407
Loveland, Colorado, Water Utility Improvements,
1,365 8.875%, 11/01/05, Escrowed to Maturity 1,672
Maricopa County, Arizona School District No. 1, Phoenix
1,000 Elementary, 6.60%, 7/01/03, Prerefunded 7/01/01 1,072
Massachusetts State Health and Educational Facilities,
1,000 7.75%, 7/15/17, Prerefunded 7/15/02 1,141
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
TAX-EXEMPT INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
PREREFUNDED AND ESCROWED
TO MATURITY 69.2% (CONT.)
Metropolitan Government Nashville & Davidson County,
Tennessee Water & Sewer,
$ 9,010 0.00%, 12/01/13, Prerefunded 12/01/02 $ 2,516
Michigan State Hospital Financial Authority,
Sisters of Mercy Health Corp.,
900 7.50%, 2/15/18, Prerefunded 2/15/01 978
Minneapolis' Minnesota Hospital and Rehabilitation,
St. Mary's Hospital;
1,295 10.00%. 6/01/13, Escrowed to Maturity 1,787
New Jersey State Turnpike Authority Revenue,
505 6.75%, 1/01/09, Escrowed to Maturity 554
Oklahoma State Industrial Authority Revenue,
St. Anthony Hospital,
1,060 6.125%, 6/01/03, Escrowed to Maturity 1,139
Peninsula Ports Authority Virginia Health Care
Facilities - Mary Immaculate Project:
940 7.00%, 8/01/17, Prerefunded to 8/01/04 & 8/01/06 1,057
1,060 7.00%, 8/01/17, Prerefunded to 8/01/04 & 8/01/06 1,192
Pennsylvania State Industrial Development Authority -
Series A,
1,000 7.00%, 1/01/11, Prerefunded 7/01/11 1,089
Phoenix, Arizona Street & Highway Users, Partially
Prerefunded 7/01/02, Remainder Escrowed to Maturity:
177 6.50%, 7/01/09 193
823 6.50%, 7/01/09 895
703 6.25%, 7/01/11 770
3,997 6.25%, 7/01/11 4,375
Regional Transportation Authority, Illinois Series B
1,000 6.00%, 6/01/07, Prerefunded 6/01/04 1,111
San Marcos, California Certificates of Participation,
1,085 0.00%, 2/15/06, Escrowed to Maturity 826
Tulsa County, Oklahoma Home Finance Authority Single
Family Mortgage Revenue,
1,710 6.90%, 8/01/10, Escrowed to Maturity 2,032
Tulsa County, Oklahoma Industrial Authority
Health Care Revenue,
740 6.75%, 12/15/18, Prerefunded 6/15/01 801
University of Illinois,
1,005 6.10%, 10/01/03, Escrowed to Maturity 1,099
Wausau, Wisconsin School District,
1,000 6.50%, 4/01/10, Prerefunded 4/01/02 1,077
----------
Total Prerefunded and Escrowed to Maturity
(Cost $63,782) 69,773
----------
INSURED BONDS 16.2%
EDUCATION 2.5%
Cook County, Illinois Niles Twp. School District,
1,560 0.00%, 12/01/07 1,064
Cook County, Illinois Cicero School District,
1,000 8.50%, 12/01/04 1,220
Merrillville, Indiana Multi-School Building Corporation,
200 6.375%, 7/01/03 219
----------
2,503
----------
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
ELECTRIC 2.2%
Springfield, Illinois Electric Revenue:
$ 1,000 6.00%, 3/01/04 $ 1,089
1,050 6.00%, 3/01/06 1,164
----------
2,253
----------
GENERAL OBLIGATION 8.2%
Amarillo, Texas Independent School District,
1,035 7.00%, 2/01/06 1,204
Bolingbrook, Illinois,
1,080 0.00%, 1/01/05 850
Chicago, Illinois,
675 11.60%, 1/01/01 763
Maricopa County, Arizona Elementary School District
No. 068, Alhambra,
2,500 5.625%, 7/01/13, Partially Prerefunded 2,649
Palatine, Illinois,
1,405 9.90%, 1/01/16, Crossover Refunded 1/01/00 1,494
Rocklin, California Unified School District,
1,235 6.70%, 9/01/04 1,306
----------
8,266
----------
PUBLIC FACILITIES & IMPROVEMENTS 3.3%
Illinois State Certificates of Participation,
1,000 6.00%, 7/01/06 1,108
Mun-Del Building Corp., Indiana,
1,000 7.00%, 1/05/05 1,045
Texas State Turnpike Authority, Dallas,
1,000 6.50%, 1/01/08 1,158
3,311
----------
Total Insured Municipal Bonds (Cost $15,927) $ 16,333
----------
Number
of Shares
(in thousands)
- --------------
INVESTMENT COMPANIES 2.9%
10 Financial Square Tax-Exempt Money Market 10
2,905 Tax Free Investment Trust 2,905
----------
Total Investment Companies (Cost $2,915) 2,915
----------
Total Investments (Cost $97,164) 98.2% 98,944
----------
Other Assets, less Liabilities 1.8% 1,858
----------
TOTAL NET ASSETS 100.0% $100,802
==========
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BOND IMMDEX/TM FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
LONG-TERM INVESTMENTS 97.5%
ASSET-BACKED SECURITIES 3.3%
CREDIT CARD RECEIVABLES 3.2%
Chemical Master Credit Card Trust,
$ 1,520 Series 1995-3, Class A, 6.23%, 4/15/05 $ 1,543
Citibank Credit Card Master Trust I, Principal Only:
6,465 Series 1996-1, Class A, 0.00%, 2/07/01 5,868
5,000 Series 1997-6, Class A, 0.00%, 8/15/06 3,612
Household Affinity Credit Card Master Trust I,
3,750 Series 1993-2, Class A, 5.60%, 11/15/00 3,761
Sears Credit Account Master Trust,
1,488 Series 1995-2, Class A, 8.10%, 1/15/01 1,523
----------
16,307
----------
HOME EQUITY LOAN RECEIVABLES 0.1%
Green Tree Home Improvement Loan Trust:
273 Series 1995-F, Class A4, 6.15%, 1/15/21 274
320 Series 1995-D, Class A3, 6.45%, 9/15/25 321
----------
595
----------
CORPORATE BONDS 40.2%
Aetna Services, Inc. Debentures,
1,800 6.75%, 9/15/13 1,742
Alabama Power Company First Mortgage Bond,
1,000 9.00%, 12/01/24 1,068
American Airline Equipment Pass-Thru Certificates,
1,500 10.21%, 1/01/10 1,807
Associated P&C Holdings Notes,
2,000 6.75%, 7/15/03 (Acquired 11/5/98, Cost $2,031)<F1> 1,970
BankAmerica Corporation Subordinated Notes,
3,539 10.00%, 2/01/03 3,995
Barclays North American Capital Corp. Debentures,
925 9.75%, 5/15/21 1,019
BankBoston Notes,
2,500 6.375%, 4/15/08 2,467
Bear Stearns Company Notes,
63 6.50%, 6/15/00 64
Bear Stearns Company Senior Notes,
500 6.75%, 8/15/00 507
Boston Edison Company Debentures,
4,900 9.375%, 8/15/21 5,380
Continental Airlines, Inc. Pass-Thru Certificates,
2,681 6.80%, 7/02/07 2,681
Continental Bank Subordinated Notes,
1,963 12.50%, 4/01/01 2,164
Continental Cablevision, Inc. Debentures,
8,200 9.50%, 8/01/13 9,761
CSX Corporation, Medium Term Notes,
3,000 5.85%, 12/01/03 2,954
Federal Express Corporation Debentures,
2,163 9.625%, 10/15/19 2,269
Federal Express Corporation Notes,
4,400 9.65%, 6/15/12 5,330
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
CORPORATE BONDS 40.2% (CONT.)
First Chicago Corp. Subordinated Notes,
$ 1,270 9.875%, 8/15/00 $ 1,336
First National Bank Chicago Debentures,
1,350 8.08%, 1/05/18 1,464
First National Bank Omaha Subordinated Notes,
3,100 7.32%, 12/01/10 3,170
First Union Corporation Subordinated Notes,
3,000 8.125%, 6/24/02 3,182
First USA Bank Notes,
1,125 5.85%, 2/22/01 1,123
Ford Motor Company Debentures,
2,650 9.215%, 9/15/21 3,256
Geico Corporation Debentures,
2,000 9.15%, 9/15/21 2,186
General Motors Acceptance Corp. Notes,
2,694 9.625%, 12/15/01 2,939
Georgia Pacific Corp. Debentures:
1,511 9.50%, 12/01/11 1,836
4,605 9.875%, 11/01/21 5,179
975 9.50%, 5/15/22 1,096
Goldman Sachs Group Notes,
10,000 6.25%, 2/01/03 (Acquired 2/01/96; Cost $9,974) <F1> 10,057
GTE North, Inc. Debentures,
1,100 9.60%, 1/01/21 1,207
Harris Bankcorp Subordinated Notes,
1,065 9.375%, 6/01/01 1,134
Lehman Brothers Holdings, Inc. Medium Term Notes,
3,825 6.65%, 11/08/00 3,859
Lehman Brothers Holdings, Inc. Notes,
1,700 6.90%, 7/15/99 1,704
Lehman Brothers, Inc. Senior Subordinated Notes:
7,232 10.00%, 5/15/99 7,240
2,365 9.875%, 10/15/00 2,489
2,620 11.625%, 5/15/05 3,240
1,500 Lehman Brothers Holdings, Inc. Senior Notes,
8.75%, 5/15/02 1,595
Marlin Water Trust Senior Notes,
5,175 7.09%, 12/15/01 (Acquired 12/8/98, Cost $5,175)<F1> 5,233
The May Department Stores Company Debentures,
1,725 9.875%, 6/15/21 1,921
Merrill Lynch & Co. Medium Term Notes,
5,000 5.88%, 1/15/04 4,955
National Westminster Bancorp. Inc., Debentures,
1,000 9.375%, 11/15/03 1,126
NCNB Corp. Subordinated Notes,
5,155 10.20%, 7/15/15 6,762
Newcourt Credit Group Notes,
5,000 6.875%, 2/16/05 (Acquired 3/16/99, Cost $5,161)<F1> 5,146
News America Holdings Debentures,
2,200 10.125%, 10/15/12 2,531
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BOND IMMDEX/TM FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
CORPORATE BONDS 40.2% (CONT.)
Northwest Airlines Corp. Pass-Thru Certificates,
$7,351 7.248%, 7/02/14 $ 7,154
Old Dominion Electric Co-op First Mortgage,
3,150 8.76%, 12/01/22 3,496
Paine Webber Group, Inc. Notes:
2,500 6.45%, 12/01/03 2,491
1,540 8.875%, 3/15/05 1,694
Paine Webber Group, Inc. Medium Term Notes,
2,450 6.73%, 1/20/04 2,473
Parker Hannifin Debentures,
400 9.75%, 2/15/21 434
J.C. Penney Company, Inc. Debentures:
4,000 9.75%, 6/15/21 4,378
1,000 8.25%, 8/15/22 1,063
Salomon, Inc. Notes,
3,450 7.00%, 6/15/03 3,569
Salomon, Inc. Senior Notes:
2,850 7.75%, 5/15/00 2,914
2,100 6.75%, 2/15/03 2,152
Security Capital Group, Inc. Medium Term Notes,
2,850 7.75%, 11/15/03 2,864
Security Pacific Corporation Subordinated Notes,
742 11.50%, 11/15/00 798
Sprint Capital Corporation Company Guarantee,
5,000 5.70%, 11/15/03 4,919
Tenneco, Inc. Debentures,
3,150 7.45%, 12/15/25 3,050
Time Warner, Inc. Debentures,
2,200 9.125%, 1/15/13 2,670
Toll Road Investors Debentures,
5,800 0.00%, 2/15/04 (Acquired 4/23/99, Cost $4,339)<F1> 4,339
Transamerica Finance Corporation Senior Notes,
5,675 6.125%, 11/01/01 5,703
Union Camp Corp. Debentures,
850 10.00%, 5/01/19 893
United HealthCare Corporation Notes,
10,000 6.60%, 12/01/03 (Acquired 11/19/98, Cost $9,977)<F1> 10,009
U.S. West Communications Debentures,
1,000 8.875%, 6/01/31 1,092
Western National Corporation Senior Notes,
2,456 7.125%, 2/15/04 2,533
Westvaco Corp. Debentures,
1,200 10.125%, 6/01/19 1,264
----------
204,096
----------
MORTGAGE-BACKED SECURITIES 0.4%
Prudential Securities Secured Financing Corp.,
2,166 Series 1993-1, Class A, 6.44%, 2/16/21 2,176
----------
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
INTERNATIONAL/YANKEE (U.S. $ DENOMINATED) 12.8%
Banco Santander-Chile Notes,
$ 4,925 6.50%, 11/01/05 $ 4,876
Dresdner Bank Subordinated Debentures,
3,500 7.25%, 9/15/15 3,555
Ford Capital BV Debentures,
560 9.875%, 5/15/02 617
Ford Capital BV Notes:
4,072 10.125%, 11/15/00 4,334
4,025 9.375%, 5/15/01 4,297
1,400 9.50%, 6/01/10 1,704
Household Netherlands BV Company Guarantee,
10,000 6.20%, 12/01/03 10,013
Hydro-Quebec Corporation Debentures:
3,500 11.75%, 2/01/12 5,037
750 9.75%, 1/15/18 836
Korea Development Bank Bond,
2,300 7.125%, 9/17/01 2,301
Korea Electric Power Debentures:
2,020 7.75%, 4/01/13 1,928
1,400 6.75%, 8/01/27 1,315
Midland Bank PLC Subordinated Notes,
5,000 6.95%, 3/15/11 5,068
National Bank of Hungary Debentures,
2,490 8.875%, 11/01/13 2,825
Newfoundland (Province of) Canada,
1,975 10.00%, 12/01/20 2,665
Norsk Hydro A/S Debentures,
2,900 9.00%, 4/15/12 3,441
Pohang Iron & Steel Notes,
1,575 7.125%, 7/15/04 1,525
Quebec Province Debentures,
2,000 11.00%, 6/15/15 2,186
Sweden (Kingdom of) Debentures,
1,100 11.125%, 6/01/15 1,601
Wharf Capital International Ltd. Notes:
2,700 8.875%, 11/01/04 2,562
2,675 7.625%, 3/13/07 2,349
----------
65,035
----------
U.S. GOVERNMENT AGENCY-BACKED
MORTGAGE ISSUES 7.3%
Federal Home Loan Mortgage Corporation (FHLMC),
80 Participation Certificates, 7.50%, 4/01/07 81
Federal Home Loan Mortgage Corporation (FHLMC)
Real Estate Mortgage Investment Conduit (REMIC):
428 Series 6, Class C, 9.05%, 6/15/19 443
736 Series 1022, Class J, 6.00%, 12/15/20 730
130 Series 1169, Class D, 7.00%, 5/15/21 131
2,043 Series 162, Class F, 7.00%, 5/15/21 2,066
1,776 Series 1118, Class Z, 8.25%, 7/15/21 1,830
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BOND IMMDEX/TM FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Market
Amount Value
(in thousands) (in thousands)
- -------------- ---------------
U.S. GOVERNMENT AGENCY-BACKED
MORTGAGE ISSUES 7.3% (CONT.)
$ 1,560 Series 188, Class H, 7.00%, 9/15/21 $ 1,577
1,059 Series 1201, Class E, 7.40%, 12/15/21 1,076
1,632 Series 1790-A, Class A, 7.00%, 4/15/22 1,648
Federal National Mortgage Association (FNMA),
Participation Certificates:
280 Series 317, 7.50%, 8/01/07 288
95 Series 1464, 7.75%, 6/01/08 100
Federal National Mortgage Association (FNMA)
Real Estate Mortgage Investment Conduit (REMIC):
3 Series 1992-29, Class K, 977.92%, 11/25/00 18
555 Series 1993-87, Class KD, 6.00%, 6/25/03 552
16 Series 1992-145, Class N, 1,010.06%, 1/25/06 266
4,733 Series 1998-59, Class VA, 6.50%, 3/25/07 4,777
807 Series X-225C, Class TE, 5.45%, 10/25/18 805
875 Series 1988-24, Class G, 7.00%, 10/25/18 886
824 Series 1989-44, Class H, 9.00%, 7/25/19 860
194 Series 1989-90, Class E, 8.70%, 12/25/19 205
841 Series 1990-30, Class E, 6.50%, 3/25/20 844
808 Series 1990-61, Class H, 7.00%, 6/25/20 818
482 Series 1990-72, Class B, 9.00%, 7/25/20 504
637 Series 1990-102, Class J, 6.50%, 8/25/20 637
3,123 Series 1990-105, Class J, 6.50%, 9/25/20 3,126
550 Series 1990-106, Class J, 8.50%, 9/25/20 570
2,680 Series 1991-56, Class M, 6.75%, 6/25/21 2,691
1,130 Series 1992-120, Class C, 6.50%, 7/25/22 1,129
FDIC REMIC Trust
8,402 Series 1996-C1, Class 1A, 6.75%, 5/25/26 8,377
----------
37,035
----------
U.S. TREASURY OBLIGATIONS 33.5%
U.S. Treasury Bonds:
9,000 10.75%, 8/15/05 11,531
107,330 9.25%, 2/15/16 145,200
U.S. Treasury Strips, Principal Only,
18,300 0.00%, 11/15/04 13,606
170,337
----------
Total Long-Term Investments (Cost $474,689) 495,581
----------
Number of Market
Shares Value
(in thousands) (in thousands)
- -------------- ---------------
SHORT-TERM INVESTMENTS 1.5%
INVESTMENT COMPANIES 1.5%
10 Financial Square Prime Obligation Fund $ 10
7,635 Short-Term Investments Co. Liquid Assets Portfolio 7,635
----------
7,645
----------
Total Short-Term Investments (Cost $7,645) 7,645
----------
Total Investments (Cost $482,334) 99.0% 503,226
----------
Other Assets, less Liabilities 1.0% 4,894
----------
TOTAL NET ASSETS 100.0% $508,120
==========
<F1> Unregistered security
See notes to the financial statements.
<PAGE>
This page intentionally left blank.
<PAGE>
(LOGO) FIRSTAR FUNDS
June 1999
DEAR SHAREOWNER:
INVESTMENT REVIEW
Money market funds generated strong inflation-adjusted returns over the past six
months as commercial paper interest rates fell from approximately 5.15% in
October of 1998 to 4.80% in April of 1999. Additionally, the Federal Reserve
lowered the Federal Funds rate by .25% on November 17, 1998. The Firstar Money
Market Funds were managed with slightly longer maturities versus their
respective benchmarks over the last six months.
Firstar Money Market Funds are managed with quality and safety of principal as
our primary goals. All securities purchased by the Funds must meet our own
internal high standards for representing minimal credit risk as well
as the strict guidelines set by the Securities and Exchange Commission ("SEC").
Our Credit research team closely monitors all investments to ensure quality
standards are met.
- --------------------------------------------------------------------------------
FIRSTAR MONEY MARKET FUNDS 7-DAY YIELDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED APRIL 30, 1999
- ---------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL TAX-EXEMPT U.S. GOVERNMENT U.S. TREASURY
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
FUND<F1> FUND<F1> FUND FUND FUND
CURRENT EFFECTIVE CURRENT EFFECTIVE CURRENT EFFECTIVE CURRENT EFFECTIVE CURRENT EFFECTIVE
<C> <C> <C> <C> <C>
4.18% 4.27% 4.55% 4.66% 2.77% 2.81% 4.12% 4.21% 3.83% 3.90%
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1>After fee waivers. Had fees not been waived, current and effective yields
would have been 4.09% and 4.18% for the Money Market Fund; and 4.32% and 4.43%
for the Institutional Money Market Fund, respectively. Reflects past
performance; yields will vary. An investment in any one of the Firstar Money
Market Funds is neither insured nor guaranteed by the U.S. Government nor is
there any assurance the Funds will be able to maintain a stable net asset value
of $1.00 per share.
Current yield refers to income earned by a fund's investments over a 7-day
period. It is then annualized and stated as a percentage of the investment.
Effective yield is the same as current yield except that it assumes the income
earned by an investment in a fund will be reinvested.
<PAGE>
(LOGO) FIRSTAR FUNDS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
FIRSTAR MONEY MARKET FUNDS YIELD COMPARISONS<F1>
- ------------------------------------------------------------------------------------------------------------------------------------
IBC'S
MONEY
FIRSTAR FUND IBC'S
FIRSTAR IBC'S TAX-EXEMPT AVERAGE/TM/ FIRSTAR IBC'S FIRSTAR MONEY
IBC'S FIRSTAR IBC'S TAX- MONEY MONEY ALL TAX-FREE U.S. MONEY U.S. FUND
FIRSTAR MONEY FUND INST. INST. EXEMPT FUND MARKET TAX TAX GOV'T. FUND TREASURY AVERAGE-/
MONEY AVERAGE/TM/ MONEY AVERAGE/TM/ MONEY AVERAGE/TM/ EQUIVALENT EQUIVALENT MONEYAVERAGE/TM/ MONEY U.S.
MARKET ALL TAXABLE MARKET ALL TAXABLE MARKET ALL TAX-FREE YIELD<F2> YIELD<F2> MARKET GOV'T. MARKET TREASURY
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1999
April 4.19% 4.32% 4.56% 4.49% 2.44% 2.58% 3.81% 4.03% 4.13% 4.14% 3.87% 3.98%
- ------------------------------------------------------------------------------------------------------------------------------------
March 4.24% 4.35% 4.59% 4.52% 2.28% 2.44% 3.56% 3.81% 4.15% 4.17% 3.85% 4.00%
- ------------------------------------------------------------------------------------------------------------------------------------
February 4.31% 4.36% 4.65% 4.54% 2.00% 2.16% 3.13% 3.38% 4.17% 4.16% 3.76% 3.96%
- ------------------------------------------------------------------------------------------------------------------------------------
January 4.51% 4.46% 4.79% 4.61% 2.42% 2.56% 3.78% 4.00% 4.31% 4.21% 3.84% 3.99%
- ------------------------------------------------------------------------------------------------------------------------------------
1998
December 4.75% 4.54% 4.89% 4.68% 2.79% 2.69% 4.36% 4.20% 4.44% 4.29% 4.08% 4.02%
- ------------------------------------------------------------------------------------------------------------------------------------
November 4.79% 4.60% 4.98% 4.75% 2.66% 2.69% 4.16% 4.20% 4.49% 4.35% 4.11% 4.09%
- ------------------------------------------------------------------------------------------------------------------------------------
October 4.91% 4.73% 5.14% 4.88% 2.76% 2.78% 4.31% 4.34% 4.68% 4.48% 4.29% 4.26%
- ------------------------------------------------------------------------------------------------------------------------------------
September 5.02% 4.98% 5.26% 5.15% 2.79% 2.93% 4.36% 4.58% 4.90% 4.80% 4.61% 4.58%
- ------------------------------------------------------------------------------------------------------------------------------------
August 5.03% 5.01% 5.29% 5.18% 2.79% 2.79% 4.36% 4.36% 4.91% 4.84% 4.68% 4.62%
- ------------------------------------------------------------------------------------------------------------------------------------
July 5.04% 5.01% 5.30% 5.19% 2.80% 2.86% 4.38% 4.47% 4.90% 4.83% 4.61% 4.63%
- ------------------------------------------------------------------------------------------------------------------------------------
June 5.03% 5.01% 5.29% 5.18% 3.03% 3.04% 4.73% 4.75% 4.88% 4.84% 4.52% 4.63%
- ------------------------------------------------------------------------------------------------------------------------------------
May 5.02% 5.00% 5.27% 5.17% 3.24% 3.23% 5.06% 5.05% 4.87% 4.82% 4.57% 4.63%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
We compare our Funds to the IBC's Money Fund Averages, which are composites of
professionally managed money market investment funds with similar objectives.
<F1>After fee waivers. Had fees not been waived, performance would be reduced.
Reflects past performance; yields will vary. An investment in any one of the
Firstar Money Market Funds is neither insured nor guaranteed by the U.S.
Government nor is there any assurance the Funds will be able to maintain a
stable net asset value of $1.00 per share.
<F2>Assumes a 36% tax bracket.
LOOKING AHEAD - THE FORECAST
Looking ahead, we expect a slight increase in short-term interest rates as some
inflationary concerns have arisen in the economy. We anticipate maintaining
average maturities in the Firstar Money Market Funds that are consistent with
their respective benchmarks. As always, our goal is to maintain the high credit
quality of the Funds while closely monitoring corporate credit quality.
We continue to pride ourselves on meeting three important objectives for our
money market shareholders: PRESERVATION OF PRINCIPAL, LIQUIDITY AND COMPETITIVE
INVESTMENT INCOME. We believe these principles, combined with a disciplined
approach to quality, continue to be appropriate for our money market investors.
Your continued support in the Firstar Money Market Funds is greatly appreciated.
Carl J. Smith
Margaret Radske
Portfolio Managers
Firstar Investment Research & Management Company, LLC (FIRMCO)
<PAGE>
(LOGO) FIRSTAR FUNDS
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
APRIL 30, 1999 (UNAUDITED)
U.S. U.S.
INSTITUTIONAL TAX-EXEMPT GOVERNMENT TREASURY
MONEY MONEY MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND MARKET FUND MARKET FUND
------------ --------------- ------------ ------------- ------------
<C> <C> <C> <C> <C>
ASSETS:
Investments, at amortized cost $294,072 $2,663,370 $135,051 $280,860 $123,315
Cash - - - - 207
Interest receivable 195 2,156 1,076 248 1,049
Other 70 15 14 10 13
--------- --------- --------- --------- ---------
Total Assets 294,337 2,665,541 136,141 281,118 124,584
--------- --------- --------- --------- ---------
LIABILITIES:
Dividends payable 1,059 9,227 277 898 347
Payable to affiliates 215 861 101 194 79
Accrued expenses and other liabilities 12 34 34 10 13
--------- --------- --------- --------- ---------
Total Liabilities 1,286 10,122 412 1,102 439
--------- --------- --------- --------- ---------
NET ASSETS $293,051 $2,655,419 $135,729 $280,016 $124,145
========= ========= ========= ========= =========
CAPITAL STOCK, $.0001 par value
Authorized 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000
Issued and outstanding 293,051 2,655,419 135,729 280,016 124,145
NET ASSET VALUE,
REDEMPTION PRICE AND
OFFERING PRICE PER SHARE $1.00 $1.00 $1.00 $1.00 $1.00
========= ========= ========= ========= =========
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
PERIOD ENDED APRIL 30, 1999 U.S. U.S.
(UNAUDITED) INSTITUTIONAL TAX-EXEMPT GOVERNMENT TREASURY
MONEY MONEY MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND MARKET FUND MARKET FUND
------------ --------------- ------------ ------------- ------------
<C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $7,433 $52,552 $2,030 $6,206 $2,308
--------- --------- --------- --------- ---------
EXPENSES:
Investment advisory fees 720 5,007 328 629 250
Administration fees 154 1,097 70 135 54
Service organization fees 50 - - - -
Custody fees 21 135 14 17 5
Shareowner servicing
and accounting costs 156 44 31 36 29
Professional fees 18 15 15 17 16
Reports to shareowners 55 6 2 7 2
Federal and state registration fees 16 88 10 11 9
Directors' fees and expenses 4 4 4 4 4
Other 4 13 1 3 1
--------- --------- --------- --------- ---------
Total expenses before waiver 1,198 6,409 475 859 370
Less: Waiver of expenses (194) (2,552) (30) (37) (25)
--------- --------- --------- --------- ---------
Net Expenses 1,004 3,857 445 822 345
--------- --------- --------- --------- ---------
NET INVESTMENT INCOME $6,429 $48,695 $1,585 $5,384 $1,963
========= ========= ========= ========= =========
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS) INSTITUTIONAL TAX-EXEMPT
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
------------------ ------------------- -----------------------
Six months Year Six months Year Six months Year
ended ended ended ended ended ended
April 30, 1999 Oct. 31, 1998 April 30, 1999 Oct. 31, 1998 April 30, 1999 Oct. 31, 1998
------------- ------------- -------------- ------------- -------------- ------------
(Unaudited) (Unaudited) (Unaudited)
<C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $6,429 $13,157 $48,695 $64,761 $1,585 $3,271
------- ------- ------- ------- ------- -------
Net increase in net assets
resulting from
operations 6,429 13,157 48,695 64,761 1,585 3,271
------- ------- ------- ------- ------- -------
CAPITAL SHARE
TRANSACTIONS:
Shares sold 472,834 630,330 4,384,202 3,302,686 142,695 249,502
Shares issued to
owners in reinvestment
of dividends 6,369 11,254 2,203 5,039 698 1,158
Shares redeemed (475,240) (613,513) (3,354,956) (2,885,096) (130,115) (236,848)
------- ------- ------- ------- ------- -------
Net increase 3,963 28,071 1,031,449 422,629 13,278 13,812
------- ------- ------- ------- ------- -------
DIVIDENDS PAID FROM:
Net investment income (6,429) (13,157) (48,695) (64,761) (1,585) (3,271)
------- ------- ------- ------- ------- -------
TOTAL INCREASE IN
NET ASSETS 3,963 28,071 1,031,449 422,629 13,278 13,812
NET ASSETS:
Beginning of period 289,088 261,017 1,623,970 1,201,341 122,451 108,639
------- ------- ------- ------- ------- -------
End of period $293,051 $289,088 $2,655,419 $1,623,970 $135,729 $122,451
======== ======== ========== ========== ======== ========
</TABLE/
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS) U.S. GOVERNMENT U.S. TREASURY
MONEY MARKET FUND MONEY MARKET FUND
------------------- ------------------
Six months Year Six months Year
ended ended ended ended
April 30, 1999 Oct. 31, 1998 April 30, 1999Oct. 31, 1998
-------------- ------------------------------------------
(Unaudited) (Unaudited)
OPERATIONS:
Net investment income $5,384 $9,683 $1,963 $3,579
------ ------- ------- -------
Net increase in
net assets
resulting from
operations 5,384 9,683 1,963 3,579
------ ------- ------- -------
CAPITAL SHARE
TRANSACTIONS:
Shares sold 471,669 829,540 187,837 266,098
Shares issued to
owners in reinvestment
of dividends 930 2,532 160 390
Shares redeemed (425,759) (797,563) (155,724) (253,094)
------ ------- ------- -------
Net increase 46,840 34,509 32,273 13,394
------ ------- ------- -------
DIVIDENDS PAID FROM:
Net investment income (5,384) (9,608) (1,963) (3,579)
------ ------- ------- -------
TOTAL INCREASE IN
NET ASSETS 46,840 34,584 32,273 13,394
NET ASSETS:
Beginning of period 233,176 198,592 91,872 78,478
------ ------- ------- -------
End of period $280,016 $233,176 $124,145 $91,872
======== ======== ======== =======
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Supplemental Data and Ratios
----------------------------------------------------
Dividends Ratio of Ratio of
Net from Net Expenses Investment
Asset Value, Net Net Net Assets, to average Income
Beginning Investment Investment Asset Value, End of Period Net to Average Net Total
of Period Income Income End of Period (000s) Assets <F8> Assets <F8> Return
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C. <C> <C> <C> <C> <C>
MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 $1.00 $0.03 $(0.03) $1.00 $165,018 0.60%<F1> 3.44%<F1> 3.42%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 1.00 0.05 (0.05) 1.00 172,261 0.60%<F1> 5.36%<F1> 5.51%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 1.00 0.05 (0.05) 1.00 224,036 0.60%<F1> 4.94%<F1> 5.06%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 1.00 0.05 (0.05) 1.00 261,017 0.60%<F1> 4.98%<F1> 5.12%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 1.00 0.05 (0.05) 1.00 289,088 0.60%<F1> 5.05%<F1> 5.16%
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 (Unaudited)1.00 0.02 (0.02) 1.00 293,051 0.70%<F1> 4.46%<F1> 2.25%<F7>
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 1.00 0.04 (0.04) 1.00 754,636 0.37%<F2> 3.64%<F2> 3.65%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 1.00 0.06 (0.06) 1.00 716,566 0.35%<F2> 5.63%<F2> 5.77%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 1.00 0.05 (0.05) 1.00 750,051 0.35%<F2> 5.19%<F2> 5.32%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 1.00 0.05 (0.05) 1.00 1,201,341 0.35%<F2> 5.23%<F2> 5.38%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 1.00 0.05 (0.05) 1.00 1,623,970 0.35%<F2> 5.30%<F2> 5.41%
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 (Unaudited)1.00 0.02 (0.02) 1.00 2,655,419 0.38%<F2> 4.76%<F2> 2.39%<F7>
- ------------------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 1.00 0.026 (0.02) 1.00 70,436 0.60%<F3> 2.23%<F3> 2.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 1.00 0.036 (0.03) 1.00 84,084 0.60%<F3> 3.36%<F3> 3.42%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 1.00 0.036 (0.03) 1.00 79,328 0.60%<F3> 3.09%<F3> 3.13%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 1.00 0.036 (0.03) 1.00 108,639 0.60%<F3> 3.06%<F3> 3.12%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 1.00 0.036 (0.03) 1.00 122,451 0.60%<F3> 3.02%<F3> 3.04%
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 (Unaudited)1.00 0.016 (0.01) 1.00 135,729 0.68%<F3> 2.42%<F3> 1.22%<F7>
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 1.00 0.03 (0.03) 1.00 183,591 0.60%<F4> 3.29%<F4> 3.35%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 1.00 0.05 (0.05) 1.00 163,068 0.60%<F4> 5.24%<F4> 5.37%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 1.00 0.05 (0.05) 1.00 198,334 0.60%<F4> 4.84%<F4> 4.96%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 1.00 0.05 (0.05) 1.00 198,592 0.60%<F4> 4.83%<F4> 4.99%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 1.00 0.05 (0.05) 1.00 233,176 0.60%<F4> 4.90%<F4> 4.97%
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 (Unaudited)1.00 0.02 (0.02) 1.00 280,016 0.65%<F4> 4.28%<F4> 2.15%<F7>
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 1.00 0.03 (0.03) 1.00 56,020 0.60%<F5> 3.14%<F5> 3.20%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 1.00 0.05 (0.05) 1.00 64,655 0.60%<F5> 5.04%<F5> 5.16%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 1.00 0.05 (0.05) 1.00 53,430 0.60%<F5> 4.70%<F5> 4.80%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 1.00 0.05 (0.05) 1.00 78,478 0.60%<F5> 4.67%<F5> 4.80%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 1.00 0.05 (0.05) 1.00 91,872 0.60%<F5> 4.62%<F5> 4.71%
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 (Unaudited)1.00 0.02 (0.02) 1.00 124,145 0.69%<F5> 3.92%<F5> 1.97%<F7>
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal years ended October 31, 1998,
1997, 1996, 1995, 1994 would have been 0.83%, 0.86%, 0.84%, 0.81%, 0.90%,
0.93%, respectively; and ratios of net investment income to average net
assets for the period ended April 30, 1999 and the fiscal years ended
October 31, 1998, 1997, 1996, 1995, 1994 would have been 4.46%, 4.79%,
4.73%, 4.73%, 5.06%, 3.11%, respectively.
<F2> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal years ended October 31, 1998,
1997, 1996, 1995, 1994 would have been 0.63%, 0.64%, 0.66%, 0.64%, 0.69%,
0.85%, respectively; and ratios of net investment income to average net
assets for the period ended April 30, 1999 and the fiscal years ended
October 31, 1998, 1997, 1996, 1995, 1994 would have been 4.51%, 5.01%,
4.92%, 4.90%, 5.29%, 3.16%, respectively.
<F3> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal years ended October 31, 1998,
1997, 1996, 1995, 1994 would have been 0.73%, 0.75%, 0.75%, 0.78%, 0.84%,
0.93%, respectively; and ratios of net investment income to average net
assets for the period ended April 30, 1999 and the fiscal years ended
October 31, 1998, 1997, 1996, 1995, 1994 would have been 2.37%, 2.87%,
2.91%, 2.91%, 3.12%, 1.90%, respectively.
<F4> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal years ended October 31, 1998,
1997, 1996, 1995, 1994 would have been 0.68%, 0.71% 0.70%, 0.71%, 0.75%,
0.88%, respectively; and ratios of net investment income to average net
assets for the period ended April 30, 1999 and the fiscal years ended
October 31, 1998, 1997, 1996, 1995, 1994 would have been 4.25%, 4.79%,
4.73%, 4.73%, 5.09%, 3.01%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 1999 and the fiscal years ended October 31, 1998,
1997, 1996, 1995, 1994 would have been 0.74%, 0.77%, 0.78%, 0.80%, 0.83%,
0.94%, respectively; and ratios of net investment income to average net
assets for the period ended April 30, 1999 and the fiscal years ended
October 31, 1998, 1997, 1996, 1995, 1994 would have been 3.87%, 4.45%,
4.49%, 4.50%, 4.81, 2.80%, respectively.
<F6> For the Tax-Exempt Money Market Fund, substantially all investment income
is exempt from federal income tax.
<F7> Not annualized for the period ended April 30, 1999 for all funds.
<F8> Annualized for the period ended April 30, 1999 for all funds.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Amortized
Amount Cost
(in thousands) (in thousands)
-------------- ---------------
COMMERCIAL PAPER 91.2%
AGRICULTURAL PRODUCT 6.1%
Golden Peanut Company,
$ 6,000 4.82%, 7/9/99 $ 5,945
Siebe PLC:
6,000 4.83%, 5/13/99 5,990
6,000 4.84%, 8/09/99 5,919
-------
17,854
-------
ASSET BACKED SECURITY 16.5%
Ciesco L.P.,
5,000 4.81%, 6/08/99 4,975
Corporate Asset Funding Co., Inc.:
6,000 4.83%, 5/26/99 5,980
5,000 4.80%, 6/25/99 4,963
CXC, Inc.:
5,000 4.80%, 5/19/99 4,988
5,000 4.85%, 5/28/99 4,982
4,500 4.81%, 6/14/99 4,473
FCAR Owners Trust,
6,000 4.80%, 7/15/99 5,940
Edison Asset Securitization, L.L.C.:
3,000 4.86%, 6/22/99 2,979
5,000 4.85%, 6/30/99 4,960
4,170 4.84%, 10/06/99 4,081
-------
48,321
-------
AUTOS & TRUCKS 5.7%
Ford Credit Europe PLC,
6,000 4.78%, 5/25/99 5,981
General Motors Acceptance Corporation:
5,000 4.87%, 5/24/99 4,984
6,000 4.81%, 8/13/99 5,917
-------
16,882
-------
BANKING - FOREIGN 10.5%
Deutsch Bank:
5,000 4.80%, 7/13/99 4,951
5,000 4.81%, 7/21/99 4,946
Dresdner US Finance, Inc.:
6,000 4.81%, 5/10/99 5,993
5,000 4.84%, 6/10/99 4,975
UBS Finance (Delaware), Inc.:
5,000 4.75%, 7/22/99 4,946
5,000 4.84%, 10/25/99 4,881
-------
30,692
-------
Principal Amortized
Amount Cost
(in thousands) (in thousands)
-------------- ---------------
BASIC INDUSTRY 5.6%
Monsanto Company:
$ 5,500 4.86%, 5/03/99 $ 5,499
6,000 4.86%, 5/05/99 5,997
Rohm & Haas Finance Company,
5,000 4.75%, 7/29/99 4,941
-------
16,437
-------
BEVERAGES 3.7%
Coca-Cola Company:
5,000 4.81%, 7/08/99 4,955
6,000 4.82%, 7/19/99 5,936
-------
10,891
-------
CHEMICALS 1.7%
Air Products and Chemicals, Inc.,
5,000 4.81%, 8/27/99 4,921
-------
COMMUNICATIONS 1.7%
GTE, Inc.,
5,000 4.83%, 5/06/99 4,997
-------
FINANCE - MISCELLANEOUS 7.9%
American Express Credit Corporation,
5,000 4.80%, 6/10/99 4,973
American General Finance Corporation,
5,000 4.82%, 8/05/99 4,936
Transamerica Finance Corporation:
6,700 4.76%, 5/21/99 6,682
6,500 4.84%, 6/18/99 6,458
-------
23,049
-------
FINANCE - SERVICES 5.7%
Goldman Sachs Group, L.P.:
5,000 4.87%, 7/14/99 4,950
6,000 4.80%, 10/08/99 5,872
Morgan Stanley, Dean Witter, Discover & Co.,
6,000 4.82%, 8/20/99 5,911
-------
16,733
-------
INSURANCE 8.5%
American Family Financial Services, Inc.:
5,000 4.84%, 5/17/99 4,989
5,000 4.84%, 5/20/99 4,987
John Hancock Capital Corporation,
5,000 4.82%, 6/29/99 4,961
Metlife Funding Inc.,
5,000 4.81%, 5/07/99 4,996
Prudential Funding Corporation,
5,000 4.80%, 8/03/99 4,937
-------
24,870
-------
<PAGE>
(LOGO) FIRSTAR FUNDS
MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Amortized
Amount Cost
(in thousands) (in thousands)
-------------- ---------------
MACHINERY - AGRICULTURE AND CONSTRUCTION 3.4%
Caterpillar Financial Services Corporation,
$ 5,000 4.83%, 5/11/99 $ 4,993
John Deere Capital Corporation,
5,000 4.78%, 6/04/99 4,978
-------
9,971
-------
MISCELLANEOUS 1.7%
International Lease Finance Corporation,
5,000 4.78%, 9/20/99 4,906
-------
PRINTING & PUBLISHING 3.4%
Reed Elsevier, Inc.:
5,000 5.00%, 5/03/99 4,999
5,000 4.82%, 6/25/99 4,963
-------
9,962
-------
RETAIL 2.0%
J.C. Penney Funding Corporation,
6,000 4.89%, 5/14/99 5,989
-------
SOVEREIGN 7.1%
Quebec (Province of) Canada:
5,000 4.77%, 7/06/99 4,956
7,000 4.78%, 7/16/99 6,929
Venantius Corporation,
9,000 4.88%, 7/30/99 8,891
-------
20,776
-------
Total Commercial Paper 267,251
-------
FUNDING AGREEMENTS 3.8%
Travelers Insurance Corporation:
7,000 5.02%, 6/30/99 7,000
4,000 5.04%, 2/18/00 4,000
-------
Total Funding Agreements 11,000
-------
Number Amortized
of Shares Cost
(in thousands) (in thousands)
-------------- ---------------
INVESTMENT COMPANIES 5.4%
10 Financial Square Prime Obligation Fund $ 10
15,811 Short-Term Investments Co. -
Liquid Assets Portfolio 15,811
-------
Total Investment Companies 15,821
-------
Total Investments 100.4% 294,072
-------
Liabilities, less Other Assets (0.4)% (1,021)
-------
NET ASSETS 100.0% $293,051
========
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Amortized
Amount Cost
(in thousands) (in thousands)
-------------- ---------------
COMMERCIAL PAPER 90.7%
AGRICULTURAL PRODUCT 5.6%
Golden Peanut Company:
$ 15,500 4.80%, 6/24/99 $ 15,388
15,000 4.85%, 6/17/99 14,905
Siebe PLC:
25,000 4.95%, 5/04/99 24,990
28,447 4.82%, 5/11/99 28,409
25,000 4.84%, 6/25/99 24,815
15,000 4.82%, 8/02/99 14,813
25,000 4.84%, 8/09/99 26,664
-------
147,984
-------
ASSET BACKED 19.2%
Ciesco L.P.:
25,000 4.77%, 5/21/99 24,934
25,000 4.79%, 6/03/99 24,890
20,000 4.81%, 6/07/99 19,901
20,000 4.81%, 6/08/99 19,899
25,000 4.82%, 6/14/99 24,853
Corporate Asset Funding Co., Inc.:
45,000 4.82%, 5/27/99 44,843
20,000 4.87%, 6/04/99 19,908
25,000 4.80%, 7/28/99 24,707
25,000 4.80%, 7/29/99 24,703
CXC, Inc.:
25,000 4.83%, 5/20/99 24,936
25,000 4.84%, 6/15/99 24,849
25,000 4.80%, 6/17/99 24,843
25,000 4.80%, 7/09/99 24,770
25,000 4.81%, 7/13/99 24,756
FCAR Owners Trust:
25,000 4.80%, 5/06/99 24,983
25,000 4.80%, 7/15/99 24,750
Edison Asset Securitization, L.L.C.:
15,966 4.86%, 6/22/99 15,854
25,000 4.84%, 7/01/99 24,795
25,000 4.82%, 7/20/99 24,732
25,000 4.81%, 9/13/99 24,549
New Center Asset Trust,
18,000 4.88%, 5/04/99 17,993
-------
510,448
-------
Principal Amortized
Amount Cost
(in thousands) (in thousands)
-------------- ---------------
AUTO & TRUCKS 4.1%
Ford Credit Europe PLC:
$ 19,000 4.84%, 5/14/99 $ 18,967
23,000 4.83%, 6/09/99 22,880
21,000 4.81%, 7/16/99 20,787
General Motors Acceptance Corporation:
22,000 4.87%, 5/24/99 21,931
25,000 4.79%, 5/25/99 24,920
-------
109,485
-------
BANKING - DOMESTIC 0.9%
Barclays US Funding Corporation,
25,000 4.83%, 9/15/99 24,540
-------
BANKING - FOREIGN 7.8%
Deutsche Bank Financial, Inc.:
25,000 4.82%, 5/10/99 24,970
25,000 4.81%, 7/21/99 24,729
Dresdner US Finance, Inc.:
25,000 4.84%, 6/03/99 24,889
25,000 4.82%, 6/16/99 24,846
25,000 4.82%, 6/18/99 24,839
25,000 4.85%, 7/07/99 24,774
UBS Finance (Delaware), Inc.:
17,000 4.80%, 6/09/99 16,912
25,000 4.81%, 7/23/99 24,723
15,000 4.84%, 10/25/99 14,643
-------
205,325
-------
BASIC INDUSTRY 1.0%
Monsanto Company,
25,000 4.85%, 5/13/99 24,960
-------
CHEMICALS 0.7%
Air Products and Chemicals, Inc.,
18,500 4.81%, 8/27/99 18,208
-------
COMMUNICATIONS 1.1%
American Telephone and Telegraph,
30,000 4.81%, 5/05/99 29,984
-------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Amortized
Amount Cost
(in thousands) (in thousands)
-------------- ---------------
FOOD AND BEVERAGES 6.8%
Bass Finance (C.I.) Ltd.,
$19,168 4.87%, 5/05/99 $119,157
Coca-Cola Company:
25,000 4.83%, 6/24/99 24,819
25,000 4.84%, 6/29/99 24,802
25,000 4.81%, 7/08/99 24,773
25,000 4.80%, 6/03/99 24,890
Diageo PLC,
17,000 4.83%, 5/18/99 16,961
Nestle Capital Corporation,
45,000 4.88%, 5/03/99 44,988
-------
180,390
-------
FINANCE 7.1%
American Express Credit Company,
45,000 4.81%, 5/04/99 44,982
Associates Corporation of North America:
25,000 4.82%, 8/04/99 24,682
25,000 4.82%, 8/11/99 24,659
National Rural Utilities CFC:
25,000 4.80%, 6/08/99 24,873
25,000 4.82%, 6/28/99 24,806
Transamerica Finance Corporation,
25,000 4.81%, 8/06/99 24,676
Wisconsin Central Credit Union,
20,000 4.80%, 5/26/99 19,933
-------
188,611
-------
FINANCE - SERVICES 13.7%
Goldman Sachs Group, L.P.:
25,000 4.84%, 5/25/99 24,919
18,000 4.80%, 5/28/99 17,935
25,000 4.83%, 6/22/99 24,826
25,000 4.80%, 10/05/99 24,477
25,000 4.82%, 10/13/99 24,448
Merrill Lynch & Company, Inc.:
25,000 4.77%, 5/03/99 24,993
25,000 4.85%, 5/06/99 24,983
25,000 4.80%, 5/07/99 24,980
25,000 4.84%, 6/02/99 24,892
25,000 4.83%, 6/11/99 24,863
Morgan Stanley, Dean Witter, Discovery & Co.:
25,000 4.85%, 5/19/99 24,939
25,000 4.82%, 5/26/99 24,916
23,000 4.85%, 6/01/99 22,904
25,000 4.83%, 6/21/99 24,829
25,000 4.82%, 8/20/99 24,629
-------
363,533
-------
Principal Amortized
Amount Cost
(in thousands) (in thousands)
-------------- ---------------
INSURANCE 7.4%
American General Corporation:
$10,000 4.84%, 5/03/99 $119,997
25,000 4.86%, 5/07/99 24,980
20,000 4.85%, 5/10/99 19,976
20,000 4.83%, 7/14/99 19,801
25,000 4.80%, 8/18/99 24,637
Hartford Financial Services, Inc.,
25,159 4.83%, 5/14/99 25,115
John Hancock Capital Corporation:
28,500 4.80%, 5/21/99 28,424
19,425 4.83%, 7/12/99 19,237
Prudential Funding Corporation,
25,000 4.80%, 8/03/99 24,687
-------
196,854
-------
MACHINERY - AGRICULTURE AND CONSTRUCTION 2.2%
Caterpillar Financial Services Corporation:
30,800 4.82%, 6/04/99 30,660
28,200 4.83%, 6/10/99 28,049
-------
58,709
-------
MISCELLANEOUS 3.6%
International Lease Financial Corporation:
16,900 4.80%, 5/12/99 16,875
25,000 4.81%, 6/23/99 24,823
20,000 4.82%, 7/19/99 19,789
35,000 4.82%, 7/26/99 34,597
-------
96,084
-------
OIL AND GAS - SERVICES 0.9%
BP America Inc.,
25,000 4.86%, 1/18/00 24,116
-------
PRINTING AND PUBLISHING 2.8%
Reed Elsevier, Inc.:
25,000 4.85%, 6/03/99 24,889
35,000 4.82%, 6/25/99 34,742
15,000 4.80%, 7/14/99 14,852
-------
74,483
-------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Amortized
Amount Cost
(in thousands) (in thousands)
-------------- ---------------
SOVEREIGN 5.8%
The Canadian Wheat Board,
$32,125 4.78%, 9/22/99 $ 31,511
Quebec (Province of) Canada:
30,000 4.77%, 7/06/99 29,738
20,000 4.85%, 8/25/99 19,687
25,000 4.85%, 11/22/99 24,310
Venantius Corporation:
25,000 4.82%, 5/17/99 24,946
25,000 4.88%, 7/30/99 24,695
-------
154,887
-------
Total Commercial Paper 2,408,601
-------
CERTIFICATES OF DEPOSIT 1.0%
Deutsche Bank AG,
25,000 5.60%, 8/23/99 25,034
-------
FUNDING AGREEMENTS 2.2%
Travelers Insurance Company:
23,000 5.02%, 6/30/99 23,000
36,000 5.04%, 2/18/00 36,000
-------
Total Funding Agreements 59,000
-------
Number of Amortized
Shares Cost
(in thousands) (in thousands)
-------------- ---------------
INVESTMENT COMPANIES 6.4%
44,434 Financial Square Prime Money Market Fund $ 44,434
126,301 Short-Term Investments Co. -
Liquid Assets Portfolio 126,301
-------
Total Investment Companies 170,735
-------
Total Investments 100.3% 2,663,370
-------
Liabilities, less Other Assets (0.3)% (7,951)
-------
NET ASSETS 100.0% $2,665,419
=========
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
TAX-EXEMPTMONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Amortized
Amount Cost
(in thousands) (in thousands)
-------------- ---------------
GENERAL OBLIGATION 2.3%
Northwestern Mutual Life,
$ 141 4.50%, 2/15/09<F1><F2> $ 141
Huntsville, Alabama,
2,500 5.25%, 2/01/00 2,538
Portland, Maine,
500 5.80%, 8/01/99 503
-------
Total General Obligation 3,182
-------
PREREFUNDED AND ESCROWED
TO MATURITY 22.4%
Allegheny County, Pennsylvania,
1,000 6.65%, 12/01/02, Prerefunded 12/01/99 1,021
Apache County, Arizona School District,
1,500 9.875%, 7/01/05, Prerefunded 7/01/99 1,539
Chicago, Illinois, Waste Water Transmission,
2,000 7.10%, 11/15/08, Prerefunded 11/15/99 2,083
Chicago, Illinois, Water Revenue,
1,000 7.20%, 11/15/16, Prerefunded 11/15/99 1,041
Chillicothe, Ohio, Sanitary Sewer System,
1,000 7.65%, 12/01/08, Prerefunded 12/01/99 1,026
De Kalb County Georgia, Hospital Revenue,
1,200 7.00%, 8/01/09, Prerefunded 8/01/99 1,233
District of Columbia, Association of American
3,000 Medical Colleges 7.50%, 2/15/20,
Prerefunded 2/15/00 3,158
Fayetteville, Arkansas, Public Facilities -
4,000 Butterfield Trail, 9.50%, 9/01/14,
Prerefunded 9/01/99 4,167
Johnson County, Kansas, Unified School District,
1,450 9.70%, 9/01/01, Prerefunded 9/01/99 1,483
Maryland State, Mercy Medical Center,
1,000 8.00%, 7/01/20, Prerefunded 7/01/99 1,027
Massachusetts State, North Adams Regional Hospital,
1,880 9.625%, 12/01/18, Prerefunded 7/01/99 1,937
Massachusetts State, St. Joseph's Hospital,
3,305 9.50%, 10/01/20, Prerefunded 10/01/99 3,451
Minneapolis, Minnesota,
1,500 5.30%, 11/01/99, Escrowed to Maturity 1,500
Mobile County, Alabama, General Obligation,
1,000 6.35%, 02/01/04, Prefunded 2/01/00 1,044
Ohio State, Oberlin College,
1,515 7.10%, 10/01/12, Prerefunded 10/01/99 1,569
Pennsylvania State Turnpike,
1,000 7.50%, 12/01/12, Prerefunded 12/01/99 1,046
Walled Lake, Michigan, School District,
2,000 7.10%, 5/01/05, Prerefunded 5/01/00 2,115
-------
Total Prerefunded and Escrowed to Maturity 30,440
-------
Principal Amortized
Amount Cost
(in thousands) (in thousands)
-------------- ---------------
REVENUE BONDS 72.0%
Electric Revenue 7.9%
Chelan County, Washington, Public Utility,
$ 5,000 4.00%, 6/01/15<F1><F2> $ 5,000
County of Mason, Kentucky, Series 1984B,
2,000 4.05%, 10/15/14<F1><F2> 2,000
Putnam County, Florida Development Authority -
3,735 Seminole Electric, 4.05%, 3/15/14<F1><F2> 3,735
-------
10,735
-------
HOSPITAL REVENUE 15.1%
Illinois Health Facilities Authority,
3,000 Ingalls Memorial Hospital, 4.00%,
1/01/16<F1><F2> 3,000
Illinois Health Facilities Authority,
660 Franciscan Eldercare, 4.00%, 5/15/27<F1><F2> 660
Illinois Health Facilities Authority,
2,500 Southern Illinois Healthcare, 4.00%,
5/15/27<F1><F2> 2,500
Indiana Health Facilities Finance Authority,
1,900 4.00%, 4/01/13<F1><F2> 1,900
Jefferson Parish, Louisiana, Hospital,
4,600 4.00%, 12/01/15<F1><F2> 4,600
Wisconsin State Health & Educational Facilities -
1,900 Blood Center, 3.95%, 6/01/19<F1><F2> 1,900
Wisconsin State Health & Educational Facilities -
3,700 Marshfield Clinic, 3.90%, 6/01/10<F1><F2> 3,700
Wisconsin State Health & Educational Facilities -
2,210 Sinai Samaritan, 4.05%, 9/01/19<F1><F2> 2,210
-------
20,470
-------
HOUSING REVENUE 10.8%
Cook County, Illinois Catholic Charities,
2,000 4.15%, 1/01/28<F1><F2> 2,000
Florida Housing Finance Agency,
3,000 Carlton Multi-family, 4.05%, 12/01/08<F1><F2> 3,000
Illinois Development Finance Authority -
3,230 St. Paul's House, 4.15%, 2/01/25<F1><F2> 3,230
Orland Hills, Illinois, Multi-family,
2,470 4.15%, 12/01/04<F1><F2> 2,470
Washington State Housing Finance - Community
3,930 Multi-family Mortgage, 4.00%, 10/01/20<F1><F2> 3,930
-------
14,630
-------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
TAX-EXEMPTMONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Amortized
Amount Cost
(in thousands) (in thousands)
-------------- ---------------
INDUSTRIAL DEVELOPMENT/POLLUTION
CONTROL REVENUE 8.5%
Mason County, Kentucky, Pollution Control,
$ 2,950 4.05%, 10/15/14<F1><F2> $ 2,950
Montgomery County, Ohio, Solid Waste Revenue,
1,785 5.00%, 11/01/99 1,803
Oakbrook Terrace, Illinois, Industrial Development,
4,100 3.20%, 12/01/25<F1><F2> 4,100
Oklahoma County, Oklahoma Finance Authority -
2,600 Perrine Office Project, 3.60%, 12/01/14<F1><F2> 2,600
-------
11,453
-------
MISCELLANEOUS REVENUE 11.0%
Cook County, Illinois,
3,875 4.15%, 5/1/20<F1><F2> 3,875
Illinois Development Finance Authority,
3,900 Rest Haven, 4.15%, 1/01/27<F1><F2> 3,900
Illinois Development Finance Authority,
1,500 Presbyterian Home Lake-A, 4.15%, 9/01/31<F1><F2> 1,500
Illinois Education Facilities Authority,
2,000 Chicago Zoological Society, 4.15%,
12/15/25<F1><F2> 2,000
Jefferson County, Colorado, School District No. R-1,
3,695 Certificates of Participation 3.75%, 12/15/99 3,710
-------
14,985
-------
Principal Amortized
Amount Cost
(in thousands) (in thousands)
-------------- ---------------
UNIVERSITY REVENUE 18.7%
Illinois Development Finance Authority -
$5,000 St. Ignatius College Prep, 4.15%,
6/01/24<F1><F2> $ 5,000
Indiana University, Student Fees
600 4.30%, 8/01/99 602
Minnesota State Higher Educational Authority,
3,345 Bethel College, 4.15%, 4/01/28<F1><F2> 3,345
Ohio State University, General Receipts
1,525 Series B, 3.85%, 12/01/06<F1><F2> 1,525
Ohio State University, General Receipts
2,400 3.85%, 12/01/07<F1><F2> 2,400
Purdue University, Dorm Systems Services,
1,000 6.40%, 7/01/99 1,005
Texas Higher Education Authority,
2,335 4.00%, 12/01/25<F1><F2> 2,335
University of Minnesota, Series A,
4,000 4.00%, 1/01/24<F1><F2> 4,000
University of North Carolina, Chapel Hill Foundation
5,200 Certificates of Participation, 4.05%,
0/01/09<F1><F2> 5,200
-------
25,412
-------
Total Revenue Bonds 97,685
-------
Number of
Shares
(in thousands)
--------------
INVESTMENT COMPANIES 2.8%
2,803 Financial Square Tax-Exempt Money Market Fund $ 2,803
941 Tax Free Cash Reserves 941
-------
Total Investment Companies 3,744
-------
Total Investments 99.5% 135,051
-------
Other Assets, less Liabilities 0.5% 678
-------
NET ASSETS 100.0% $135,729
========
<F1> Variable rate security
<F2> Stated maturity with option to put
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
U.S. GOVERNMENT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Amortized
Amount Cost
(in thousands) (in thousands)
-------------- ---------------
U.S. GOVERNMENT AGENCIES 87.0%
FEDERAL FARM CREDIT BANK 24.2%
Federal Farm Credit Bank Discount Notes:
$ 12,000 4.70%, 5/03/99 $ 11,997
6,000 4.72%, 5/04/99 5,998
8,000 4.69%, 5/11/99 7,989
11,000 4.70%, 5/13/99 10,983
6,000 4.78%, 5/18/99 5,986
7,000 4.70%, 6/02/99 6,971
7,000 4.67%, 6/09/99 6,965
6,000 4.64%, 7/12/99 5,944
5,000 4.62%, 10/07/99 4,898
-------
67,731
-------
FEDERAL HOME LOAN BANK 2.8%
Federal Home Loan Bank Discount Notes,
8,000 4.74%, 5/12/99 7,988
-------
FEDERAL HOME LOAN MORTGAGE CORPORATION 21.3%
Federal Home Loan Mortgage Corporation Discount Notes:
5,000 4.71%, 5/05/99 4,997
7,000 4.75%, 5/20/99 6,982
4,000 4.75%, 6/18/99 3,975
5,000 4.74%, 6/22/99 4,966
7,000 4.70%, 6/25/99 6,950
7,000 4.78%, 7/09/99 6,936
7,000 4.60%, 7/12/99 6,936
6,000 4.74%, 8/12/99 5,919
5,000 4.71%, 8/13/99 4,932
Federal Home Loan Mortgage Corporation Debenture,
7,000 4.77%, 6/11/99 6,962
-------
59,555
-------
FEDERAL NATIONAL MORTGAGE ASSN. 24.1%
Federal National Mortgage Assn. Discount Notes:
2,047 4.71%, 5/05/99 2,046
7,000 4.70%, 5/06/99 6,995
3,000 4.63%, 5/07/99 2,998
5,000 4.71%, 5/14/99 4,991
8,000 4.75%, 5/19/99 7,981
5,000 4.80%, 6/03/99 4,978
5,000 4.77%, 6/10/99 4,973
5,000 4.74%, 6/22/99 4,966
5,000 4.76%, 7/07/99 4,956
7,000 4.71%, 7/08/99 6,938
6,000 4.73%, 10/08/99 5,874
5,000 4.70%, 10/21/99 4,887
5,000 4.73%, 3/07/00 4,796
-------
67,379
-------
Principal Amortized
Amount Cost
(in thousands) (in thousands)
-------------- ---------------
OTHER 14.6%
Tennessee Valley Authority Discount Notes:
$ 5,000 4.71%, 5/04/99 $ 4,998
6,000 4.64%, 5/06/99 5,996
4,000 4.70%, 5/10/99 3,995
15,000 4.64%, 5/12/99 14,979
7,000 4.69%, 5/21/99 6,982
4,000 4.72%, 5/25/99 3,987
-------
40,937
-------
Total U.S. Government Agencies 243,590
-------
U.S. TREASURIES 5.0%
U.S. TREASURY NOTES:
14,000 5.38%, 1/31/00 14,058
-------
Total U.S. Treasuries 14,058
-------
Number
of Shares
(in thousands)
----------------
INVESTMENT COMPANIES 8.3%
10,533 Financial Square Government Obligation Fund 10,533
12,679 Short-Term Investments Co. Treasury Portfolio 12,679
-------
Total Investment Companies 23,212
-------
Total Investments 100.3% 280,860
-------
Liabilities, less Other Assets (0.3)% (844)
-------
NET ASSETS 100.0% $280,016
========
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
U.S. TREASURY MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
Principal Amortized
Amount Cost
(in thousands) (in thousands)
-------------- ---------------
U.S. TREASURIES 93.7%
U.S. TREASURY NOTES 47.8%
$16,000 6.38%, 5/15/99 $ 16,009
5,000 6.00%, 6/30/99 5,012
18,000 6.38%, 7/15/99 18,069
3,000 6.88%, 8/31/99 3,020
3,000 6.00%, 10/15/99 3,018
8,000 7.50%, 10/31/99 8,110
6,000 7.13%, 2/20/00 6,107
-------
59,345
-------
U.S. TREASURY BILLS 45.9%
9,000 4.35%, 5/06/99 8,995
7,700 4.16%, 5/13/99 7,689
13,500 4.36%, 5/20/99 13,469
10,000 4.36%, 6/17/99 9,943
17,000 4.37%, 7/01/99 16,874
-------
56,970
-------
Total U.S. Treasuries 116,315
-------
Number
of Shares
(in thousands)
----------------
INVESTMENT COMPANIES 5.6%
5,156 Financial Square
Treasury Obligation Portfolio 5,156
1,844 Short-Term Investments Co.
Treasury Tax Advantage Portfolio 1,844
-------
Total Investment Companies 7,000
-------
Total Investments 99.3% 123,315
-------
Other Assets, less Liabilities 0.7% 830
-------
NET ASSETS 100.0% $124,145
========
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED INCOME FUND SHORT-TERM BOND MARKET FUND
BALANCED GROWTH FUND INTERMEDIATE BOND MARKET FUND
GROWTH AND INCOME FUND TAX-EXEMPT INTERMEDIATE BOND FUND
EQUITY INDEX FUND BOND IMMDEX- FUND
GROWTH FUND MONEY MARKET FUND
SPECIAL GROWTH FUND INSTITUTIONAL MONEY MARKET FUND
EMERGING GROWTH FUND TAX-EXEMPT MONEY MARKET FUND
MICROCAP FUND U.S. GOVERNMENT MONEY MARKET FUND
INTERNATIONAL EQUITY FUND U.S. TREASURY MONEY MARKET FUND
NOTES TO THE FINANCIAL STATEMENTS
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, as amended. The Balanced Income, Balanced Growth, Growth and Income,
Equity Index, Growth, Special Growth, Emerging Growth, MicroCap, International
Equity, Short-Term Bond Market, Intermediate Bond Market, Tax-Exempt
Intermediate Bond, Bond IMMDEX-, Money Market, Institutional Money Market,
Tax-Exempt Money Market, U.S. Government Money Market and U.S. Treasury Money
Market Funds (the "Funds"), are separate, diversified investment portfolios of
the Company. The Money Market Fund commenced operations on March 16, 1988; the
Tax-Exempt Money Market Fund commenced operations on June 27, 1988; the
U.S. Government Money Market Fund commenced operations on August 1, 1988; the
Special Growth Fund commenced operations on December 28, 1989; the Short-Term
Bond Market Fund, Bond IMMDEX/TM Fund, Growth and Income Fund and Equity Index
Fund commenced operations on December 29, 1989; the Institutional Money Market
Fund commenced operations on April 26, 1991; the U.S. Treasury Money Market Fund
commenced operations on April 29, 1991; the Balanced Growth Fund commenced
operations on March 30, 1992; the Growth Fund commenced operations on December
29, 1992; the Intermediate Bond Market Fund commenced operations on January 5,
1993; the International Equity Fund commenced operations on April 28, 1994; the
MicroCap Fund commenced operations on August 1, 1995; the Emerging Growth Fund
commenced operations on August 15, 1997; and the Balanced Income Fund commenced
operations on December 1, 1997. The objective of the Short-Term Bond Market Fund
is to seek to provide an annual rate of total return, before Fund expenses,
comparable to the annual rate of total return of the Lehman Brothers 1-3 year
Government/Corporate Bond Index. The objective of the Intermediate Bond Market
Fund is to seek to provide an annual rate of total return, before Fund expenses,
comparable to the annual rate of total return of the Lehman Brothers
Intermediate Government/Corporate Bond Index. The objective of the Tax-Exempt
Intermediate Bond Fund is to seek to provide current income that is
substantially exempt from federal income tax and emphasize total return with
relatively low volatility of principal. The objective of the Bond IMMDEX/TM Fund
is to seek to provide an annual rate of total return, before Fund expenses,
comparable to the annual rate of total return of the Lehman Brothers
Government/Corporate Bond Index. The objective of the Balanced Income Fund is to
seek current income and the preservation of capital through investment in a
balanced portfolio of dividend paying equity and fixed income securities. 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 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 investment objective of the Money
Market Fund and the Institutional Money Market Fund is to provide a high level
of taxable current income consistent with liquidity, the preservation of capital
and a stable net asset value. The investment objective of the U.S. Treasury
Money Market Fund is to provide a high level of current income exempt from state
income taxes consistent with liquidity, the preservation of capital and a stable
net asset value. The investment objective of the U.S. Government Money Market
Fund is to provide a high level of taxable current income consistent with
liquidity, the preservation of capital and a stable net asset value
(irrespective of state income tax considerations). The investment objective of
the Tax-Exempt Money Market Fund is to provide a high level of current income
exempt from federal income taxes consistent with liquidity, the preservation of
capital and a stable net asset value.
The costs, in thousands, incurred in connection with the organization, initial
registration and public offering of shares aggregating $47, $21, $24 and $27 for
the Balanced Income, Emerging Growth, MicroCap and
<PAGE>
(LOGO) FIRSTAR FUNDS
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 one class of Fund shares in each of the Money Market,
Institutional Money Market, Tax-Exempt Money Market, U.S. Government Money
Market, and U.S. Treasury Money Market Funds, and three classes of Fund shares
in each of the other Funds: Series A, Series B 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 on Series A shares purchased in the Short-
Term Bond Market, Intermediate Bond Market, Tax-Exempt Intermediate Bond, and
Bond IMMDEX/TM Fund, is 3.75% of the offering price or 3.90% of the net asset
value. The maximum sales charge on Series A shares purchased in the Balanced
Income, Balanced Growth,Growth and Income, Equity Index, Growth, Special Growth,
Emerging Growth, MicroCap and International Equity Funds is 4.50% of the
offering price or 4.71% of the net asset value. The Series B shares are subject
to a 0.25% service organization fee and a 0.75% distribution and service (12b-1)
fee. The B shares are also subject to a contingent deferred sales charge at the
time of redemption, in accordance with the Funds' prospectus. The maximum sales
charge is 5% for redemptions in the first year, 4% in the second year, 3% in the
third and fourth years, 2% in the fifth year, 1% in the sixth year and 0%
thereafter. Each class of shares for each Fund with Institutional, Series A and
Series B shares has identical rights and privileges except with respect to
service organization fees paid by Series A and Series B 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. Investments in the Money
Market, Institutional Money Market, Tax-Exempt Money Market, U.S. Government
Money Market, and U.S. Treasury Money Market Funds securities and instruments
with a maturity of 60 days or less are valued on the basis of amortized cost for
financial reporting purposes and federal income tax purposes, which approximates
market value. Variable rate demand notes and funding agreements are valued at
cost which approximates market value. Investment companies are valued at net
asset value which approximates market value. Securities for which market
quotations are not readily available and other assets are valued at fair market
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 substantially all investment company net taxable
income and net capital gains to shareholders. Therefore, no federal income tax
provision is required.
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. For Funds with more than one class of shares, 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 (or the value of dividend-eligible shares, as
appropriate) 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 of the
Money Market, Tax-Exempt Money Market, U.S. Government Money Market, U.S.
Treasury Money Market and the Institutional Money Market Funds are declared
daily and paid monthly. Dividends from net investment income of the Short-Term
Bond Market, Intermediate Bond Market, Tax-Exempt Intermediate Bond and Bond
IMMDEX/TM Funds are declared and paid monthly. Dividends from net investment
income, if any, are declared and paid quarterly for the Balanced Income,
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, for all Funds will
be declared at least annually.
<PAGE>
(LOGO) FIRSTAR FUNDS
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 Tax-Exempt Money Market, Balanced Income,
Balanced Growth, Growth and Income, Equity Index, Growth, Special Growth,
Emerging Growth, MicroCap, International Equity, Short-Term Bond Market,
Intermediate Bond Market, Tax-Exempt Intermediate Bond, and Bond IMMDEX 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. Each of these Funds 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.
Each of these Funds identifies and maintains at all times cash, cash
equivalents, or other liquid securities in an amount at least equal to the
amount of outstanding commitments of 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; such amounts are considered net investment income
(loss) for tax purposes. 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) Unregistered Security - The Short Term Bond Market, Intermediate Bond Market,
Bond IMMDEX/TM, Balanced Income, Balanced Growth and International Equity Funds
own certain investment securities which are unregistered and thus restricted to
resale. These securities are valued by the Funds after giving due consideration
to pertinent factors including recent private sales, market conditions and the
issuer's financial performance. Where future disposition of these securities
requires registration under the Securities Act of 1933, the Funds have the right
to include these securities in such registration, generally without cost to the
Funds. The Funds have no right to require registration of unregistered
securities.
j) Other - Investment and shareowner transactions are recorded on the trade
date. The Balanced Income, Balanced Growth, Growth and Income, Equity Index,
Growth, Special Growth, Emerging Growth, MicroCap, International Equity, Short-
Term Bond Market, Intermediate Bond Market, Tax-Exempt Intermediate Bond, and
Bond IMMDEX 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. For the Balanced Income, Balanced Growth, Growth and Income
Equity Index, Growth, Special Growth, Emerging Growth, MicroCap, and
International Equity Funds, dividend income recognized on the ex-dividend date
or as soon as information is available to these Funds. For the Short-Term Bond
Market, Intermediate Bond Market, Tax-Exempt Intermediate Bond, and Bond IMMDEX
Funds, discounts and premiums on bonds are amortized over the life of the
respective bond. For the Money Market, Institutional Money Market, Tax-Exempt
Money Market, U.S. Government Money Market, and U.S. Treasury Money Market
Funds, discounts and premiums on securities with put provisions are amortized to
the earlier of the put date or maturity. For the remainder of securities,
discounts and premiums are amortized over the expected life of the respective
securities. Investment and shareowner transactions are recorded on trade date.
Realized gains and losses from investment transactions are reported on an
identified tax cost basis which is the same basis the Money Market,
Institutional Money Market, Tax-Exempt Money Market, U.S. Government Money
Market, and U.S. Treasury Money Market Funds use for federal income tax
purposes. Transactions in capital shares at $1.00 per share for these Funds are
shown in the Statement of Changes in Net Assets. For all the Funds, interest
income is recognized on an accrual basis. Generally accepted accounting
principals require that permanent financial reporting and tax differences be
reclassified in the capital accounts.
<PAGE>
(LOGO) FIRSTAR FUNDS
3. CAPITAL SHARE TRANSACTIONS
Transactions, in thousands, of shares of the non-Money Market Funds were as
follows:
<TABLE>
<CAPTION>
BALANCED INCOME BALANCED GROWTH GROWTH AND INCOME
FUND FUND FUND
------------------ ----------------- --------------------
Amount Shares Amount Shares Amount Shares
------ ------ ------ ------ ------ ------
<C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 1999:
Series A shares:
Shares sold $ 3,230 292 $ 4,592 148 $ 19,490 424
Shares issued to owners in
reinvestment of dividends 582 52 2,393 77 14,659 318
Shares redeemed (1,741) (158) (7,500) (243) (25,038) (548)
------- ----- ------- ---- ------- -----
Net increase (decrease) $ 2,071 186 $ (515) (18) $ 9,111 194
======= ==== ======= ==== ======= ====
Series B shares:
Shares sold $ 347 31 $ 225 7 $ 657 14
Shares issued to owners in
reinvestment of dividends - - - - - -
Shares redeemed - - - - (2) -
------- ----- ------- ---- ------- -----
Net increase $ 347 31 $ 225 7 $ 655 14
======= ==== ======= ==== ======= ====
Series Institutional shares:
Shares sold $ 7,174 649 $ 31,437 1,018 $ 92,672 2,015
Shares issued to owners in
reinvestment of dividends 386 35 7,763 249 32,588 706
Shares redeemed (6,027) (548) (27,537) (894) (63,241) (1,372)
------- ----- ------- ---- ------- -----
Net increase $ 1,533 136 $ 11,663 373 $ 62,019 1,349
======= ==== ======= ==== ======= ====
YEAR ENDED OCTOBER 31, 1998<F1>:
Series A shares:
Shares sold $ 11,352 1,046 $ 19,603 660 $ 59,834 1,359
Shares issued to owners in
reinvestment of dividends 123 11 4,639 163 5,908 146
Shares redeemed (993) (92) (7,945) (266) (21,073) (483)
------- ----- ------- ---- ------- -----
Net increase $ 10,482 965 $ 16,297 557 $ 44,669 1,022
======= ==== ======= ==== ======= ====
Series Institutional shares:
Shares sold $ 36,380 3,540 $ 63,126 2,111 $156,883 3,600
Shares issued to owners in
reinvestment of dividends 71 7 17,086 600 15,009 369
Shares redeemed (4,936) (456) (52,956) (1,798) (114,144) (2,614)
------- ----- ------- ---- ------- -----
Net increase $ 31,515 3,091 $ 27,256 913 $ 57,748 1,355
======= ==== ======= ==== ======= ====
</TABLE>
<F1> Capital share activity is for the fiscal year ended October 31,1998 for the
Balanced Growth Fund and Growth and Income Fund, and for the period
December 1, 1997 to October 31, 1998 for the Balanced Income Fund.
<PAGE>
(LOGO) FIRSTAR FUNDS
3. CAPITAL SHARE TRANSACTIONS (CONT.)
Transactions, in thousands, of shares of the Funds were as follows:
<TABLE>
<CAPTION>
EQUITY INDEX GROWTH SPECIAL GROWTH
FUND FUND FUND
------------------ ----------------- --------------------
Amount Shares Amount Shares Amount Shares
------ ------ ------ ------ ------ ------
<C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 1999:
Series A shares:
Shares sold $ 19,418 231 $ 9,760 260 $ 8,239 208
Shares issued to owners in
reinvestment of dividends 1,311 15 4,322 116 1,072 26
Shares redeemed (12,502) (149) (5,503) (147) (29,988) (766)
------- ----- ------- ---- ------- -----
Net increase (decrease) $ 8,227 97 $ 8,579 229 $(20,677) (532)
======= ==== ======= ==== ======= ====
Series B shares:
Shares sold $ 1,157 13 $ 317 8 $ 129 3
Shares issued to owners in
reinvestment of dividends - - - - - -
Shares redeemed (3) - - - - -
------- ----- ------- ---- ------- -----
Net increase $ 1,154 13 $ 317 8 $ 129 3
======= ==== ======= ==== ======= ====
Series Institutional shares:
Shares sold $ 143,425 1,684 $ 88,942 2,327 $ 99,328 2,558
Shares issued to owners in
reinvestment of dividends 4,988 59 18,176 486 3,350 80
Shares redeemed (174,444) (2,088) (26,638) (702) (140,828) (3,575)
------- ----- ------- ---- ------- -----
Net increase (decrease) $ (26,031) (345) $ 80,480 2,111 $ (38,150) (937)
======= ==== ======= ==== ======= ====
YEAR ENDED OCTOBER 31, 1998:
Series A shares:
Shares sold $ 30,526 428 $ 12,906 367 $ 34,361 820
Shares issued to owners in
reinvestment of dividends 2,500 37 3,577 118 14,452 357
Shares redeemed (14,683) (206) (4,328) (135) (36,981) (878)
------- ----- ------- ---- ------- -----
Net increase $ 18,343 259 $ 12,155 350 $ 11,832 299
======= ==== ======= ==== ======= ====
Series Institutional shares:
Shares sold $ 154,182 2,167 $ 55,749 1,622 $ 115,060 2,750
Shares issued to owners in
reinvestment of dividends 10,229 150 20,361 665 50,064 1,228
Shares redeemed (88,691) (1,252) (66,140) (1,919) (188,422) (4,477)
------- ----- ------- ---- ------- -----
Net increase (decrease) $ 75,720 1,065 $ 9,970 368 $ (23,298) (499)
======= ==== ======= ==== ======= ====
</TABLE>
<PAGE>
(LOGO) FIRSTAR FUNDS
3. CAPITAL SHARE TRANSACTIONS (CONT.)
Transactions, in thousands, of shares of the Funds were as follows:
<TABLE>
<CAPTION>
EMERGING GROWTH MICROCAP INTERNATIONAL
FUND FUND EQUITY FUND
------------------ ----------------- --------------------
Amount Shares Amount Shares Amount Shares
------ ------ ------ ------ ------ ------
<C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 1999:
Series A shares:
Shares sold $ 1,882 190 $ 6,444 477 $ 577 37
Shares issued to owners in
reinvestment of dividends 15 1 42 3 122 8
Shares redeemed (2,298) (235) (6,100) (422) (1,880) (121)
------- ----- ------- ---- ------- -----
Net increase (decrease) $ (401) (44) $ 386 58 $ (1,181) (76)
======= ==== ======= ==== ======= ====
Series B shares:
Shares sold $ 39 4 $ 14 1 $ 5 1
Shares issued to owners in
reinvestment of dividends - - - - - -
Shares redeemed - - - - - -
------- ----- ------- ---- ------- -----
Net increase $ 39 4 $ 14 1 $ 5 1
======= ==== ======= ==== ======= ====
Series Institutional shares:
Shares sold $103,982 10,786 $ 29,529 2,181 $ 5,126 330
Shares issued to owners in
reinvestment of dividends 56 5 223 16 569 37
Shares redeemed (18,682) (1,888) (14,309) (1,004) (11,793) (765)
------- ----- ------- ---- ------- -----
Net increase (decrease) $ 85,356 8,903 $ 15,443 1,193 $ (6,098) (398)
======= ==== ======= ==== ======= ====
YEAR ENDED OCTOBER 31, 1998:
Series A shares:
Shares sold $ 10,119 969 $ 1,418 80 $ 3,333 190
Shares issued to owners in
reinvestment of dividends 45 5 1,570 99 162 9
Shares redeemed (1,504) (145) (2,049) (137) (2,075) (122)
------- ----- ------- ---- ------- -----
Net increase $ 8,660 829 $ 939 42 $ 1,420 77
======= ==== ======= ==== ======= ====
Series Institutional shares:
Shares sold $ 30,325 2,998 $ 1,819 125 $ 13,322 748
Shares issued to owners in
reinvestment of dividends 307 32 7,878 492 1,085 63
Shares redeemed (13,394) (1,384) (10,986) (706) (15,171) (952)
------- ----- ------- ---- ------- -----
Net increase (decrease) $ 17,238 1,646 $ (1,289) (89) $ (764) (141)
======= ==== ======= ==== ======= ====
</TABLE>
<PAGE>
(LOGO) FIRSTAR FUNDS
3. CAPITAL SHARE TRANSACTIONS (CONT.)
Transactions, in thousands, of shares of the Funds were as follows:
<TABLE>
<CAPTION>
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND FUND BOND FUND FUND
------------------ ----------------- -------------------- -----------
Amount Shares Amount Shares Amount Shares Amount Shares
------ ------ ------ ------ ------ ------ ------ ------
<C> <C> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 1999:
Series A shares:
Shares sold $ 14,055 1,364 $ 8,126 788 $ 9,001 856 $ 18,545 643
Shares issued to owners in reinvestment
of dividends 1,932 188 651 63 649 62 2,509 88
Shares redeemed (15,136) (1,470) (3,387) (325) (9,501) (904) (11,879) (412)
------- ----- ------- ---- ------- ----- ------- -----
Net increase $ 851 82 $ 5,480 526 $ 149 14 $ 9,175 319
======= ==== ======= ==== ======= ==== ======= ====
Series B shares:
Shares sold $ 232 23 $ 165 16 $ - - $ 682 24
Shares issued to owners in reinvestment
of dividends 2 - 1 - - - 4 -
Shares redeemed - - - - - - (1) -
------- ----- ------- ---- ------- ----- ------- -----
Net increase $ 234 23 $ 166 16 $ - - $ 685 24
======= ==== ======= ==== ======= ==== ======= ====
Series Institutional shares:
Shares sold $ 22,263 2,161 $ 36,424 3,491 $11,995 1,142 $ 97,013 3,358
Shares issued to owners in reinvestment
of dividends 2,487 264 4,690 507 331 32 10,249 357
Shares redeemed (13,994) (1,381) (43,495) (4,213) (10,053) (955) (162,415) (5,656)
------- ----- ------- ---- ------- ----- ------- -----
Net increase (decrease) $ 10,756 1,044 $ (2,381) (215) $ 2,273 219 $ (55,153) (1,941)
======= ==== ======= ==== ======= ==== ======= ====
Year ended October 31, 1998:
Series A shares:
Shares sold $ 31,426 3,052 $ 11,695 1,126 $24,340 2,333 $ 40,062 1,403
Shares issued to owners in reinvestment
of dividends 3,639 355 939 91 945 91 3,926 138
Shares redeemed (25,689) (2,499) (4,255) (411) (12,427) (1,191) (15,244) (534)
------- ----- ------- ---- ------- ----- ------- -----
Net increase $ 9,376 908$ 8,379 806 $12,858 1,233 $ 28,744 1,007
======= ==== ======= ==== ======= ==== ======= ====
Series Institutional shares:
Shares sold $ 45,856 4,455 $ 82,249 7,928 $34,464 3,306 $148,842 5,214
Shares issued to owners in reinvestment
of dividends 4,729 440 8,771 792 678 65 21,598 759
Shares redeemed (66,755) (6,475) (59,461) (5,674) (21,832) (2,098) (120,508) (4,217)
------- ----- ------- ---- ------- ----- ------- -----
Net increase (decrease) $(16,170) (1,580)$ 31,559 3,046 $13,310 1,273 $ 49,932 1,756
======= ==== ======= ==== ======= ==== ======= ====
</TABLE>
<PAGE>
(LOGO) FIRSTAR FUNDS
4. INVESTMENT TRANSACTIONS
The aggregate purchases and sales, in thousands, of securities, excluding
short-term investments, for the Funds for the period ending April 30, 1999, were
as follows:
<TABLE>
<CAPTION>
BALANCED BALANCED GROWTH AND EQUITY GROWTH SPECIAL EMERGING
INCOME FUND GROWTH FUND INCOME FUND INDEX FUND FUND GROWTH FUND GROWTH FUND
---------- ---------- ---------- ---------- ------ ---------- ----------
<C> <C> <C> <C> <C> <C> <C>
Purchases:
U.S. Government $3,174 $8,143 - - - - -
Other 8,293 84,273 $203,440 $40,224 $149,540 $350,583 $125,636
Sales:
U.S. Government $1,266 $8,193 - - - - -
Other 3,940 73,184 $ 90,766 $72,789 $ 76,940 $414,188 $ 40,760
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
MICROCAP INTERNATIONAL BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND EQUITY FUND FUND FUND BOND FUND FUND
---------- ---------- ---------- ---------- ------ ----------
Purchases:
U.S. Government - - $20,997 $19,243 - $ 65,566
Other $96,632 $ 7,174 47,278 62,898 $14,317 102,646
Sales:
U.S. Government - - $21,228 $47,429 - $113,476
Other $77,907 $16,582 28,347 38,496 $ 8,799 100,880
</TABLE>
Equity Index Fund transactions in futures contracts during the period October
31, 1998 to April 30, 1999, in thousands, were as follows:
AGGREGATE
NUMBER OF FACE VALUE OF
CONTRACTS CONTRACTS <F1>
--------- --------------
Outstanding at October 31, 1998 100 $ 25,845
Contracts opened 539 169,700
Contracts closed (517) (155,668)
----- ----------
Outstanding at April 30, 1999 122 $ 39,877
===== ==========
<F1> The aggregate face value of contracts is computed on the date each contract
is opened.
The number of futures contracts and net unrealized appreciation, in thousands,
as of April 30, 1999, were as follows:
NUMBER OF UNREALIZED
CONTRACTS APPRECIATION
---------- -------------
S&P 500 Financial Futures Contract
Expiration date 6/99<F2> 122 $886
<F2> At April 30, 1999, U.S. Treasury Bills of $3,000, in thousands, were held
as collateral by the custodian in an initial margin account in connection
with open futures contracts held by the Equity Index Fund.
<PAGE>
(LOGO) FIRSTAR FUNDS
At April 30, 1999, gross unrealized appreciation and depreciation of investments
for federal tax purposes, in thousands, were as follows:
<TABLE>
<CAPTION>
BALANCED BALANCED GROWTH AND EQUITY GROWTH SPECIAL EMERGING
INCOME FUND GROWTH FUND INCOME FUND INDEX FUND FUND GROWTH FUND GROWTH FUND
---------- ---------- ---------- ---------- ------ ---------- ----------
<C> <C> <C> <C> <C> <C> <C>
Appreciation $8,485 $53,588 $266,047 $342,683 $109,194 $131,662 $ 12,164
(Depreciation) (332) (9,024) (7,687) (10,476) (7,583) (35,856) (15,843)
------- ------- ------- ------- ------- ------- -------
Net unrealized appreciation
(depreciation) on
investments $8,153 $44,564 $258,360 $332,207 $101,611 $ 95,806 $ (3,679)
======= ======= ======= ======= ======= ======= =======
SHORT-TERM INTERMEDIATE TAX-EXEMPT BOND
MICROCAP INTERNATIONAL BOND MARKET BOND MARKET INTERMEDIATE IMMDEX/TM
FUND EQUITY FUND FUND FUND BOND FUND FUND
---------- ---------- ---------- ---------- ------ ----------
Appreciation $ 27,979 $ 8,740 $1,053 $4,182 $2,028 $23,926
(Depreciation) (13,442) (10,915) (908) (2,118) (250) (3,223)
------- ------- ------- ------- ------- -------
Net unrealized
appreciation
(depreciation) on
investments $ 14,537 $ (2,175) $ 145 $2,064 $1,778 $20,703
======= ======= ======= ======= ======= =======
</TABLE>
At April 30, 1999, the cost of investments, in thousands, for federal income
tax purposes was $207,861, $317,528, $97,166, $482,523, $40,487, $220,009,
$524,694, $325,312, $234,365, $481,074, $158,638, $113,924, and $51,996 for the
Short-Term Bond Market, Intermediate Bond Market, Tax-Exempt Intermediate Bond,
Bond IMMDEX/TM, Balanced Income, Balanced Growth, Growth and Income, Equity
Index, Growth, Special Growth, Emerging Growth, MicroCap, and International
Equity Funds, respectively.
At October 31, 1998, the Short-Term Bond Market Fund had accumulated net
realized capital loss carryovers, in thousands, of $980, expiring in 2002. The
Short-Term Bond Market and Bond IMMDEX/TM Funds had accumulated net realized
capital loss carryovers, in thousands, of $189 and $3, respectively, expiring in
2003. The Short-Term Bond Market and Bond IMMDEX/TMFunds had accumulated net
realized capital loss carryovers, in thousands, of $79 and $24, respectively,
expiring in 2004. The Short-Term Bond Market Fund had accumulated net realized
capital loss carryovers, in thousands, of $1,083, expiring in 2005. The Emerging
Growth and International Equity Funds had accumulated net realized capital loss
carryovers, in thousands, of $5,736 and $4,919, respectively, expiring in 2006.
To the extent each of the Short-Term Bond Market, Intermediate Bond Market, Bond
IMMDEX, Emerging Growth and International Equity Funds realizes future net
capital gains, taxable distributions to its respective shareowners will be
offset by any unused capital loss carryover.
5. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Funds have entered into an Investment Advisory Agreement with Firstar
Investment Research & Management Company ("FIRMCO"). FIRMCO is a subsidiary of
Firstar Corporation, a publicly held bank holding company. Pursuant to its
Advisory Agreement with the Funds, FIRMCO is entitled to receive a fee,
calculated daily and payable monthly, at the annual 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.
For the period ended April 30, 1999, FIRMCO voluntarily waived the following
fees, in thousands, by Fund:
<TABLE>
<CAPTION>
BALANCED BALANCED GROWTH EQUITY SPECIAL EMERGING
INCOME GROWTH AND INCOME INDEX GROWTH GROWTH GROWTH MICROCAP INTERNATIONAL
FUND FUND FUND FUND FUND FUND FUND FUND EQUITY FUND
------- ------- ------- ------- ------- ------- ------- ------- -------------
<C> <C> <C> <C> <C> <C> <C> <C> <C>
Annual Rate 0.75% 0.75% 0.75% 0.25% 0.75% 0.75% 0.75% 1.50% (2) (3)
Fees waived $79 $103 - $177 - $1 $26 $1 $69
SHORT- INTER- TAX-EXEMPT U.S. U.S.
TERM MEDIATE INTER- BOND MONEY INSTITUTIONAL TAX-EXEMPT GOVERNMENT TREASURY
MARKET BOND MARKET MEDIATE IMMDEX/TM MARKET MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
BOND FUND FUND BOND FUND FUND FUND FUND FUND FUND FUND
------- ------- ------- ------- ------- ------- ------- ------- -------------
Annual Rate 0.60% 0.50% 0.50% 0.30% (1) (1) (1) (1) (1)
Fees waived $266 $203 $85 - $159 $2,019 $14 $7 $13
</TABLE>
<PAGE>
(LOGO) FIRSTAR FUNDS
(1) FIRMCO is entitled to receive a fee, calculated daily and payable monthly,
at the annual rate of 0.50% on the first $2 billion of each Fund's average daily
net assets, and 0.40% of each Fund's average daily net assets in excess of $2
billion.
(2) 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.
(3) 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 Bank Milwaukee, N.A. serves as custodian and Firstar Mutual Fund
Services, LLC serves as transfer agent and accounting services agent for all the
Funds. Both companies are affiliates of FIRMCO.
The Company has entered into a Co-Administration Agreement with B.C. Ziegler
and Company and Firstar Mutual Fund Services, LLC (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, 1999, $35, $533, $16, $30, $12, $25, $40, $12, $70, $6, $32,
$88, $73, $31, $78, $9, $13, $6 of administration fees, in thousands, were
waived for the Money Market, Institutional Money Market, Tax-Exempt Money
Market, U.S. Government Money Market, U.S. Treasury Money Market, Short-Term
Bond Market, Intermediate Bond Market, Tax-Exempt Intermediate Bond, Bond
IMMDEX/TM, Balanced Income, 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 and Series B 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 and Series B Shares for certain support and/or distribution services to
customers of the Service Organizations who are beneficial owners of Series A and
Series B 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 Series A and Series B Shares. Service Organization
fees, in thousands, incurred by the Short-Term Bond Market, Intermediate Bond
Market, Tax-Exempt Intermediate Bond, Bond IMMDEX/TM, Balanced Income, Balanced
Growth, Growth and Income, Equity Index, Growth, Special Growth, Emerging
Growth, MicroCap and International Equity Funds aggregated $97, $40, $43, $124,
$15, $77, $255, $159, $56, $166, $17, $20, and $8, respectively, for the period
ended April 30, 1999.
The Funds have adopted a Service and Distribution Plan pursuant to Rule 12b-1
of the Investment Company Act of 1940 for Series A and Series B shareowners. The
Funds do not intend to pay 12b-1 fees with respect to the Series A Shares for
the current fiscal year, except for the Money Marekt Fund, which incurred $50,
in thousands, for the period ended April 30, 1999. The Funds do not intend to
pay more than 0.75% in 12b-1 fees with respect to Series B Shares for the
current fiscal year. For the period ended April 30, 1999, Short-Term Bond
Market, Intermediate Bond Market, Tax-Exempt Intermediate Bond, Bond IMMDEX/TM,
Balanced Income, Balanced Growth, Growth and Income, Equity Index, Growth,
Special Growth, Emerging Growth, MicroCap and International Equity Funds
incurred, in thousands, expenses of $0, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0,
$0, and $0, respectively.
Each Director of the Company who is not affiliated with FIRMCO receives an
annual fee from the Company for service as a Director and is eligible to
participate in a deferred compensation plan with respect to these fees.
Participants in the plan may designate their deferred Director's fees as if
invested in any one of the 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.
<PAGE>
(LOGO) FIRSTAR FUNDS
7. TRANSACTIONS WITH AFFILIATES
The following companies are affiliated with the Funds either directly, or by
the Fund holding 5% or more of the outstanding voting securities during the
period ended April 30, 1999. Such companies are defined in Section (2)(a)(3) of
the Investment Company Act of 1940.
<TABLE>
<CAPTION>
SHARE BALANCE AT SHARE BALANCE AT
COMPANY OCTOBER 31, 1998 PURCHASES SALES APRIL 30, 1999 DIVIDENDS GAIN/LOSSES
- -------- ----------------- --------- ------ ---------------- ---------- -----------
<C> <C> <C> <C> <C> <C>
Firstar Corporation 0 39,000 0 39,000 $3,720 $0
(held in Equity Index Fund)
EduTrek International, Inc. 274,500 64,800 0 339,300 $0 $0
(held in Microcap Fund)
</TABLE>
<PAGE>
FIRSTAR FUNDS ARE AVAILABLE THROUGH:
- - THE FIRSTAR FUNDS CENTER,
- - INVESTMENT SPECIALISTS WHO ARE EITHER REGISTERED
REPRESENTATIVES OF FIRSTAR INVESTMENT SERVICES, INC.
A REGISTERED BROKER/DEALER, NASD AND SIPC MEMBER,
OR REGISTERED REPRESENTATIVES OF MDS SECURITIES,
A DIVISION OF CONSECO FINANCIAL 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.
FOR ACCOUNT BALANCE AND INVESTOR SERVICES INFORMATION
1-800-677-FUND
1-414-287-3808
FIRSTAR FUNDS CENTER
615 EAST MICHIGAN STREET
P.O. BOX 3011
MILWAUKEE, WI 53201-3011
WWW.FIRSTARFUNDS.COM
(LOGO) FIRSTAR FUNDS
FORM # FFSEM99FF
