FIRSTAR FUNDS, INC.
(THE "COMPANY")
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
MidCap Index Fund
Growth Fund
Special Growth Fund
Emerging Growth Fund
MicroCap Fund
Core International Equity Fund
International Equity Fund
August 1, 2000
Supplement to the Statement of Additional Information dated March 1, 2000
(as revised March 17, 2000 and as supplemented May 8, 2000)
CHANGE IN ADMINISTRATOR AND DISTRIBUTOR
On August 1, 2000, Firstar Mutual Fund Services, LLC will become sole
administrator for the Company and Quasar Distributors, LLC will replace B.C.
Ziegler and Company as Distributor. Accordingly, the first four paragraphs under
"Administration and Distribution Services" on page 65 is revised as follows:
ADMINISTRATION AND DISTRIBUTION SERVICES
Firstar Mutual Fund Services, LLC serves as administrator (the
"Administrator") to the Fund. Under the Fund Administration Servicing Agreement,
the Administrator has agreed to maintain office facilities, furnish clerical
services, stationery and office supplies; monitor the company's arrangements
with respect to services provided by Shareholder Organizations and Institutions;
and generally assist in the Fund's operations. The following administrative
services are also provided by Firstar Mutual Fund Services, LLC: compile data
for and prepare, with respect to the Fund, timely Notices to the SEC required
pursuant to Rule 24f-2 under the 1940 Act and Semi-Annual Reports to the SEC and
current Shareholders; coordinate execution and filing by the Company of all
federal and state tax returns and required tax filings other than those required
to be made by the Company's custodian and transfer agent; prepare compliance
filings and Blue Sky registrations pursuant to state securities laws with the
advice of the Company's counsel; assist to the extent requested by the Company
with the Company's preparation of Annual and Semi-Annual reports to Fund
shareholders and Registration Statements for the Fund; monitor the Fund's
expense accruals and cause all appropriate expenses to be paid on proper
authorization from the Fund; monitor the Fund's status as a regulated investment
company under Subchapter M of the Code; maintain the Fund's fidelity bond as
required by the 1940 Act; and monitor compliance with the policies and
limitations of the Fund as set forth in the Prospectus and SAI.
The Administrator is entitled to receive a fee for its administrative
services, 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. The
Administrator may voluntarily waive all or a portion of its administrative fee
from time to time. This waiver may be terminated at any time at the
Administrator's discretion.
Under the Fund Administration Servicing Agreement, the Administrator is
not liable for any error of judgment or mistake of law or for any loss suffered
by the Fund in connection with the performance of the Agreement, except a loss
resulting from willful misconduct, bad faith or negligence on the part of the
Administrator in the performance of its duties.
The Distributor, located at 615 East Michigan Street, Milwaukee,
Wisconsin 53202, provides distribution services for the Fund as described in the
Fund's Prospectus pursuant to a Distribution Agreement with the Fund under which
the Distributor, as agent, sells shares of the Fund on a continuous basis. The
Distributor has agreed to use its best efforts to solicit orders for the sale of
shares, although it is not obliged to sell any particular amount of shares. The
Distributor causes expenses to be paid for the cost of printing and distributing
prospectuses to persons who are not shareholders of the Fund (excluding
preparation and printing expenses necessary for the continued registration of
the Fund's shares) and of printing and distributing all sales literature. On
January 1, 1995 and until August 1, 2000, B.C. Ziegler and Company ("Ziegler")
served as distributor. For the fiscal year ended October 31, 1999, 1998 and
1997, the distributor received no fees for its distribution services.
Firstar Trust Company became a Co-Administrator to the Funds on
September 1, 1994, and assigned its rights and obligations to the Administrator
on October 1, 1998. On January 1, 1995 and until August 1, 2000, Ziegler served
as co-administrator to the Funds (together, the "Co-Administrators").
FIRSTAR FUNDS, INC.
(THE "COMPANY")
Money Market Fund
Institutional Money Market Fund
U.S. Treasury Money Market Fund
U.S. Government Money Market Fund
Tax-Exempt Money Market Fund
August 1, 2000
Supplement to the Statement of Additional Information dated March 1, 2000
(as revised March 17, 2000)
CHANGE IN ADMINISTRATOR AND DISTRIBUTOR
On August 1, 2000, Firstar Mutual Fund Services, LLC will become sole
administrator for the Company and Quasar Distributors, LLC will replace Ziegler
and Company as Distributor. Accordingly, the first four paragraphs under
"Administration and Distribution Services" on page 29 is revised as follows:
ADMINISTRATION AND DISTRIBUTION SERVICES
Firstar Mutual Fund Services, LLC serves as administrator (the
"Administrator") to the Fund. Under the Fund Administration Servicing Agreement,
the Administrator has agreed to maintain office facilities, furnish clerical
services, stationery and office supplies; monitor the company's arrangements
with respect to services provided by Shareholder Organizations and Institutions;
and generally assist in the Fund's operations. The following administrative
services are also provided by Firstar Mutual Fund Services, LLC: compile data
for and prepare, with respect to the Fund, timely Notices to the SEC required
pursuant to Rule 24f-2 under the 1940 Act and Semi-Annual Reports to the SEC and
current Shareholders; coordinate execution and filing by the Company of all
federal and state tax returns and required tax filings other than those required
to be made by the Company's custodian and transfer agent; prepare compliance
filings and Blue Sky registrations pursuant to state securities laws with the
advice of the Company's counsel; assist to the extent requested by the Company
with the Company's preparation of Annual and Semi-Annual reports to Fund
shareholders and Registration Statements for the Fund; monitor the Fund's
expense accruals and cause all appropriate expenses to be paid on proper
authorization from the Fund; monitor the Fund's status as a regulated investment
company under Subchapter M of the Code; maintain the Fund's fidelity bond as
required by the 1940 Act; and monitor compliance with the policies and
limitations of the Fund as set forth in the Prospectus and SAI.
The Administrator is entitled to receive a fee for its administrative
services, 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. The
Administrator may voluntarily waive all or a portion of its administrative fee
from time to time. This waiver may be terminated at any time at the
Administrator's discretion.
Under the Fund Administration Servicing Agreement, the Administrator is
not liable for any error of judgment or mistake of law or for any loss suffered
by the Fund in connection with the performance of the Agreement, except a loss
resulting from willful misconduct, bad faith or negligence on the part of the
Administrator in the performance of its duties.
The Distributor, located at 615 East Michigan Street, Milwaukee,
Wisconsin 53202, provides distribution services for the Fund as described in the
Fund's Prospectus pursuant to a Distribution Agreement with the Fund under which
the Distributor, as agent, sells shares of the Fund on a continuous basis. The
Distributor has agreed to use its best efforts to solicit orders for the sale of
shares, although it is not obliged to sell any particular amount of shares. The
Distributor causes expenses to be paid for the cost of printing and distributing
prospectuses to persons who are not shareholders of the Fund (excluding
preparation and printing expenses necessary for the continued registration of
the Fund's shares) and of printing and distributing all sales literature. On
January 1, 1995 and until August 1, 2000, B.C. Ziegler and Company ("Ziegler")
served as distributor. For the fiscal year ended October 31, 1999, 1998 and
1997, the distributor received no fees for its distribution services.
Firstar Trust Company became a Co-Administrator to the Funds on
September 1, 1994, and assigned its rights and obligations to the Administrator
on October 1, 1998. On January 1, 1995 and until August 1, 2000, Ziegler served
as co-administrator to the Funds (together, the "Co-Administrators").
