------------------
Money Market Funds
------------------
MONEY MARKET FUND
TAX-EXEMPT MONEY MARKET FUND
U.S. GOVERNMENT MONEY MARKET FUND
U.S. TREASURY MONEY MARKET FUND
SEMI-ANNUAL REPORT
APRIL 30, 1999
TO GET THERE, START HERE./SM
(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 invest ment adviser, custodian, transfer
agent, administrator, and accounting services agent and receive compensation
for such services as disclosed in the current prospectus.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page(s)
SHAREOWNER LETTER.........................................................1
FIRSTAR MONEY MARKET FUNDS YIELD COMPARISONS..............................2
LOOKING AHEAD - THE FORECAST..............................................2
STATEMENT OF ASSETS AND LIABILITIES.......................................3
STATEMENT OF OPERATIONS...................................................4
STATEMENT OF CHANGES IN NET ASSETS........................................5
FINANCIAL HIGHLIGHTS.....................................................6-7
SCHEDULE OF INVESTMENTS..................................................8-13
NOTES TO THE FINANCIAL STATEMENTS.......................................14-15
<PAGE>
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<F1>
- --------------------------------------------------------------------------------
PERIOD ENDED APRIL 30, 1999
---------------- ---------------- ---------------- ----------------
TAX-EXEMPT U.S. GOVERNMENT U.S. TREASURY
MONEY MARKET FUND<F1> MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
CURRENT EFFECTIVE CURRENT EFFECTIVE CURRENT EFFECTIVE CURRENT EFFECTIVE
4.18% 4.27% 2.77% 2.81% 4.12% 4.21% 3.83% 3.90%
---------------- ---------------- --------------- ----------------
<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. 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
- --------------------------------------------------------------------------------
FIRSTAR MONEY MARKET FUNDS YIELD COMPARISONS<F1>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
IBC'S
MONEY
FIRSTAR FUND IBC'S
TAX-EXEMPT AVERAGE/TM/ FIRSTAR MONEY
IBC'S FIRSTAR IBC'S MONEY ALL TAX-FREE FIRSTAR IBC'S U.S. FUND
FIRSTAR MONEY FUND TAX-EXEMPT MONEY FUND MARKET TAX TAX U.S. GOV'T. MONEY FUND TREASURY AVERAGE/TM/
MONEY AVERAGE/TM/ MONEY AVERAGE/TM/ EQUIVALENT EQUIVALENT MONEY AVERAGE/TM/ MONEY U.S.
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>
1999
April 4.19% 4.32% 2.44% 2.58% 3.81% 4.03% 4.13% 4.14% 3.87% 3.98%
- ------------------------------------------------------------------------------------------------------------------------------------
March 4.24% 4.35% 2.28% 2.44% 3.56% 3.81% 4.15% 4.17% 3.85% 4.00%
- ------------------------------------------------------------------------------------------------------------------------------------
February 4.31% 4.36% 2.00% 2.16% 3.13% 3.38% 4.17% 4.16% 3.76% 3.96%
- ------------------------------------------------------------------------------------------------------------------------------------
January 4.51% 4.46% 2.42% 2.56% 3.78% 4.00% 4.31% 4.21% 3.84% 3.99%
- ------------------------------------------------------------------------------------------------------------------------------------
1998
December 4.75% 4.54% 2.79% 2.69% 4.36% 4.20% 4.44% 4.29% 4.08% 4.02%
- ------------------------------------------------------------------------------------------------------------------------------------
November 4.79% 4.60% 2.66% 2.69% 4.16% 4.20% 4.49% 4.35% 4.11% 4.09%
- ------------------------------------------------------------------------------------------------------------------------------------
October 4.91% 4.73% 2.76% 2.78% 4.31% 4.34% 4.68% 4.48% 4.29% 4.26%
- ------------------------------------------------------------------------------------------------------------------------------------
September 5.02% 4.98% 2.79% 2.93% 4.36% 4.58% 4.90% 4.80% 4.61% 4.58%
- ------------------------------------------------------------------------------------------------------------------------------------
August 5.03% 5.01% 2.79% 2.79% 4.36% 4.36% 4.91% 4.84% 4.68% 4.62%
- ------------------------------------------------------------------------------------------------------------------------------------
July 5.04% 5.01% 2.80% 2.86% 4.38% 4.47% 4.90% 4.83% 4.61% 4.63%
- ------------------------------------------------------------------------------------------------------------------------------------
June 5.03% 5.01% 3.03% 3.04% 4.73% 4.75% 4.88% 4.84% 4.52% 4.63%
- ------------------------------------------------------------------------------------------------------------------------------------
May 5.02% 5.00% 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 shareowners: 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
STATEMENT OF ASSETS AND LIABILITIES
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
APRIL 30, 1999 (UNAUDITED)
U.S. U.S.
TAX-EXEMPT GOVERNMENT TREASURY
MONEY MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND MARKET FUND
----------- ----------- ----------- -----------
ASSETS:
Investments,
at amortized cost $2,294,072 $2,135,051 $2,280,860 $2,123,315
Cash - - - 207
Interest receivable 195 1,076 248 1,049
Other 70 14 10 13
---------- ---------- ---------- ----------
Total Assets 294,337 136,141 281,118 124,584
---------- ---------- ---------- ----------
LIABILITIES:
Dividends payable 1,059 277 898 347
Payable to affiliates 215 101 194 79
Accrued expenses and
other liabilities 12 34 10 13
---------- ---------- ---------- ----------
Total Liabilities 1,286 412 1,102 439
---------- ---------- ---------- ----------
NET ASSETS $ 293,051 $ 135,729 $ 280,016 $ 124,145
========== ========== ========== ==========
CAPITAL STOCK,
$.0001 par value
Authorized 5,000,000 5,000,000 5,000,000 5,000,000
Issued and outstanding 293,051 135,729 280,016 124,145
NET ASSET VALUE,
REDEMPTION PRICE AND
OFFERING PRICE PER SHARE $1.00 $1.00 $1.00 $1.00
========== ========== ========== ==========
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
PERIOD ENDED APRIL 30, 1999 U.S. U.S.
(UNAUDITED) TAX-EXEMPT GOVERNMENT TREASURY
MONEY MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND MARKET FUND
INVESTMENT INCOME:
Interest income $7,433 $2,030 $6,206 $2,308
--------- --------- --------- ---------
EXPENSES:
Investment advisory fees 720 328 629 250
Administration fees 154 70 135 54
Service organization fees 50 - - -
Custody fees 21 14 17 5
Shareowner servicing and
accounting costs 156 31 36 29
Professional fees 18 15 17 16
Reports to shareowners 55 2 7 2
Federal and state
registration fees 16 10 11 9
Directors' fees and expenses 4 4 4 4
Other 4 1 3 1
--------- --------- --------- ---------
Total expenses before waiver 1,198 475 859 370
Less: Waiver of expenses (194) (30) (37) (25)
--------- --------- --------- ---------
Net Expenses 1,004 445 822 345
--------- --------- --------- ---------
NET INVESTMENT INCOME $ 6,429 $ 1,585 $ 5,384 $ 1,963
========= ========= ========= =========
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS) TAX-EXEMPT U.S. GOVERNMENT U.S. TREASURY
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
------------------ ------------------ ------------------ ------------------
Six months Year Six months Year Six months Year Six months Year
ended ended ended ended ended ended ended ended
April 30, Oct. 31, April 30, Oct. 31, April 30, Oct. 31, April 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 $6,429 $13,157 $1,585 $3,271 $5,384 $9,683 $1,963 $3,579
--------- --------- --------- --------- --------- --------- --------- ---------
Net increase in net assets
resulting from
operations 6,429 13,157 1,585 3,271 5,384 9,683 1,963 3,579
--------- --------- --------- --------- --------- --------- --------- ---------
CAPITAL SHARE
TRANSACTIONS:
Shares sold 472,834 630,330 142,695 249,502 471,669 829,540 187,837 266,098
Shares issued to
owners in reinvestment
of dividends 6,369 11,254 698 1,158 930 2,532 160 390
Shares redeemed (475,240) (613,513) (130,115) (236,848) (425,759) (797,563) (155,724) (253,094)
--------- --------- --------- --------- --------- --------- --------- ---------
Net increase 3,963 28,071 13,278 13,812 46,840 34,509 32,273 13,394
--------- --------- --------- --------- --------- --------- --------- ---------
DIVIDENDS PAID FROM:
Net investment income (6,429) (13,157) (1,585) (3,271) (5,384) (9,608) (1,963) (3,579)
--------- --------- --------- --------- --------- --------- --------- ---------
TOTAL INCREASE IN
NET ASSETS 3,963 28,071 13,278 13,812 46,840 34,584 32,273 13,394
NET ASSETS:
Beginning of period 289,088 261,017 122,451 108,639 233,176 198,592 91,872 78,478
--------- --------- --------- --------- --------- --------- --------- ---------
End of period $293,051 $289,088 $135,729 $122,451 $280,016 $233,176 $124,145 $91,872
========= ========= ========= ========= ========= ========= ========= =========
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
<TABLE>
<CAPTION>
FINANCIALHIGHLIGHTS Supplemental Data and Ratios
Ratio of Ratio of Net
Net Investment
Net Asset Dividends Net Net Expenses to Income to
Value, Net from Net Asset Value, Assets, Average Average
Beginning Investment Investment End of End of Net Net Total
of Period Income Income Period Period (000s) Assets Assets Return
- ------------------------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C> <C>
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%<F6>
- ------------------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 1.00 0.02<F5> (0.02) 1.00 70,436 0.60%<F2> 2.23%<F2> 2.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 1.00 0.03<F5> (0.03) 1.00 84,084 0.60%<F2> 3.36%<F2> 3.42%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 1.00 0.03<F5> (0.03) 1.00 79,328 0.60%<F2> 3.09%<F2> 3.13%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 1.00 0.03<F5> (0.03) 1.00 108,639 0.60%<F2> 3.06%<F2> 3.12%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 1.00 0.03<F5> (0.03) 1.00 122,451 0.60%<F2> 3.02%<F2> 3.04%
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 (Unaudited) 1.00 0.01<F5> (0.01) 1.00 135,729 0.68%<F2> 2.42%<F2> 1.22%<F6>
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 1.00 0.03 (0.03) 1.00 183,591 0.60%<F3> 3.29%<F3> 3.35%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 1.00 0.05 (0.05) 1.00 163,068 0.60%<F3> 5.24%<F3> 5.37%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 1.00 0.05 (0.05) 1.00 198,334 0.60%<F3> 4.84%<F3> 4.96%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 1.00 0.05 (0.05) 1.00 198,592 0.60%<F3> 4.83%<F3> 4.99%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 1.00 0.05 (0.05) 1.00 233,176 0.60%<F3> 4.90%<F3> 4.97%
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 (Unaudited) 1.00 0.02 (0.02) 1.00 280,016 0.65%<F3> 4.28%<F3> 2.15%<F6>
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1994 1.00 0.03 (0.03) 1.00 56,020 0.60%<F4> 3.14%<F4> 3.20%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1995 1.00 0.05 (0.05) 1.00 64,655 0.60%<F4> 5.04%<F4> 5.16%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1996 1.00 0.05 (0.05) 1.00 53,430 0.60%<F4> 4.70%<F4> 4.80%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1997 1.00 0.05 (0.05) 1.00 78,478 0.60%<F4> 4.67%<F4> 4.80%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 1998 1.00 0.05 (0.05) 1.00 91,872 0.60%<F4> 4.62%<F4> 4.71%
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 (Unaudited) 1.00 0.02 (0.02) 1.00 124,145 0.69%<F4> 3.92%<F4> 1.97%<F6>
- ------------------------------------------------------------------------------------------------------------------------------------
</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 0.73%, 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.
<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 0.68%, 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.
<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 0.74%, 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.
<F5> For the Tax-Exempt Money Market Fund, substantially all investment income
is exempt from federal income tax.
<F6> Not 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
----------
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)
- -------------- -------------
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 of Amortized
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
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,
$1,141 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%, 10/01/09<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. GOVERNMENTMONEY 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
MONEY MARKET FUND
TAX-EXEMPT MONEY MARKET FUND
U.S. GOVERNMENT MONEY MARKET FUND
U.S. TREASURY MONEY MARKET FUND
NOTES TO THE FINANCIAL STATEMENTS
(UNAUDITED)
1.ORGANIZATION
Firstar Funds, Inc. (the "Company"), formerly Portico Funds, Inc., was
incorporated on February 15, 1988, as a Wisconsin Corporation and is registered
as an open-end management investment company under the Investment Company Act of
1940, as amended. The Money Market, Tax-Exempt Money Market, U.S. Government
Money Market and U.S. Treasury Money Market (formerly the U.S. Federal Money
Market) Funds (the "Funds") are separate, diversified investment portfolios of
the Company. The Money Market, Tax-Exempt Money Market, U.S. Government Money
Market and U.S. Treasury Money Market Funds commenced operations on March 16,
1988, June 27, 1988, August 1, 1988 and April 29, 1991, respectively.
2.SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
a) Investment Valuation - The securities are valued on the basis of amortized
cost for financial reporting purposes and federal income tax purposes, which
approximates market value. Variable rate demand notes and funding agreements are
valued at cost which approximates market value. Investment companies are valued
at net asset value which approximates market value.
b) Federal Income Taxes - It is each Fund's policy to meet the requirements of
the Internal Revenue Code applicable to regulated investment companies and each
fund intends to distribute investment company net taxable income and net capital
gains to shareholders. Therefore, no federal income tax provision is required.
c) Use of Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
d) Expenses - The Funds are charged for those expenses that are directly
attributable to each portfolio such as advisory, administration, service
organization fees and certain shareowner service fees. Expenses that are not
directly attributable to a portfolio are typically allocated among the Company's
portfolios in proportion to their respective net assets, number of shareowner
accounts or net sales, where applicable.
e) Distributions to Shareowners - Dividends from net investment income are
declared daily and paid monthly. Distributions of net realized capital gains, if
any, will be declared at least annually.
f) Other - The Funds recognize interest income on the accrual basis. For
securities with put provisions, discounts and premiums are amortized to the
earlier of the put date or maturity. For the remainder of securities, discounts
and premiums are amortized over the 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 cost
basis which is the same basis the Funds use for federal income tax purposes.
Transactions in capital shares at $1.00 per share are shown in the Statement of
Changes in Net Assets. Generally accepted accounting principles require that
permanent financial reporting and tax differences be reclassified in the capital
accounts.
3. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Funds have entered into an Investment Advisory Agreement with Firstar
Investment Research & Management Company, LLC ("FIRMCO"). FIRMCO is a subsidiary
of Firstar Corporation, a publicly held bank holding company. Pursuant to its
Advisory Agreement with the Funds, FIRMCO is entitled to receive a fee,
calculated daily and payable monthly, at the annual rate of 0.50% on the first
$2 billion of each Fund's average daily net assets, and 0.40% of each Fund's
average daily net assets in excess of $2 billion. For the period ended April 30,
1999, FIRMCO voluntarily waived $159, $14, $7 and $13 of its advisory fees, in
thousands, for the Money Market, Tax-Exempt Money Market Funds, U.S. Government
Money Market and U.S. Treasury Money Market, respectively.
Firstar Bank Milwaukee, N.A. serves as custodian and Firstar Mutual Fund
Services, LLC serves as transfer agent and accounting services agent for 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 period ended
April 30, 1999, $35, $16, $30 and $12 of administration fees, in thousands, were
voluntarily waived for the Money Market, Tax-Exempt Money Market Funds, U.S.
Government Money Market and U.S. Treasury Money Market, respectively.
<PAGE>
(LOGO) FIRSTAR FUNDS
The Funds have adopted a Service and Distribution Plan pursuant to Rule 12b-
1 of the Investment Company Act of 1940 and incurred expenses of $50, in
thousands, for the Money Market Fund, for the period ended April 30, 1999. No
expenses were incurred for the U.S. Government Money Market, U.S. Treasury Money
Market or Tax-Exempt Money Market Funds for the period ended April 30, 1999.
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.
<PAGE>
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<PAGE>
FIRSTAR FUNDS ARE AVAILABLE THROUGH:
- - THE FIRSTAR FUNDS CENTER,
- - INVESTMENT SPECIALISTS WHO ARE REGISTERED
REPRESENTATIVES OF FIRSTAR INVESTMENT SERVICES, INC.
A REGISTERED BROKER/DEALER, NASD AND SIPC MEMBER,
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 BALANCES 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
TO GET THERE, START HERE./SM
(LOGO)
FIRSTAR
FUNDS
FORM #FFMMSEM-99
