------------------
MONEY MARKET FUNDS
------------------
Money Market Fund
Institutional 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, 2000
(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)
SHAREHOLDER 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.....................................5-6
FINANCIAL HIGHLIGHTS...................................................8-9
SCHEDULE OF INVESTMENTS...............................................10-17
NOTES TO THE FINANCIAL STATEMENTS.....................................18-19
<PAGE>
June 2000
DEAR SHAREHOLDER:
INVESTMENT REVIEW
Money market funds generated strong returns over the past six months as
commercial paper interest rates rose from approximately 5.80% in October of 1999
to 6.20% in April of 2000. Additionally, the Federal Reserve raised the Federal
Funds rate by .25% on February 2, 2000 and on March 21, 2000. The Firstar money
market funds were managed with slightly shorter 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
--------------------------------------------------------------------------------
PERIOD ENDED APRIL 30, 2000
MONEY
MARKET FUND<F1>
CURRENT EFFECTIVE
5.41% 5.56%
INSTITUTIONAL
MONEY
MARKET FUND<F1>
CURRENT EFFECTIVE
5.76% 5.93%
TAX-EXEMPT
MONEY
MARKET FUND
CURRENT EFFECTIVE
3.78% 3.85%
U.S. GOVERNMENT
MONEY
MARKET FUND<F1>
CURRENT EFFECTIVE
5.33% 5.47%
U.S. TREASURY
MONEY
MARKET FUND
CURRENT EFFECTIVE
5.05% 5.18%
<F1> After fee waivers. Had fees not been waived, current and effective yields
would have been 5.18% and 5.33% for the Money Market Fund, 5.52% and 5.69%
for the Institutional Money Market Fund and 5.13% and 5.27% for the U.S.
Government 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. Although the money market
funds seek to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in these funds.
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
FIRSTAR MONEY
TAX- FUND
IBC'S IBC'S IBC'S EXEMPT AVERAGE/TM IBC'S
MONEY FIRSTAR INSTITU- FIRSTAR MONEY MONEY ALL FIRSTAR IBC'S FIRSTAR MONEY
FUND INSTITU- TIONAL TAX- FUND MARKET TAX-FREE U.S. MONEY U.S. FUND
FIRSTAR AVERAGE/TM TIONAL AVERAGE/TM EXEMPT AVERAGE/TM TAX TAX GOV'T. FUND TREASURY AVERAGE/TM
MONEY /ALL MONEY /ALL MONEY ALL EQUIVALENT EQUIVALENT MONEY AVERAGE/TM MONEY U.S.
MARKET TAXABLE MARKET TAXABLE MARKET TAX-FREE YIELD<F2> YIELD<F2> MARKET GOV'T. MARKET TREASURY
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000
April 5.41% 5.46% 5.71% 5.62% 3.28% 3.37% 5.13% 5.31% 5.25% 5.28% 5.01% 5.13%
March 5.25% 5.32% 5.63% 5.48% 3.09% 3.11% 4.83% 4.86% 5.10% 5.14% 4.92% 5.00%
February 5.19% 5.22% 5.59% 5.37% 2.83% 2.93% 4.42% 4.55% 4.89% 5.01% 4.70% 4.79%
January 5.10% 5.11% 5.47% 5.24% 3.10% 2.86% 4.84% 4.41% 4.69% 4.76% 4.58% 4.64%
1999
December 5.19% 5.06% 5.50% 5.20% 3.09% 3.23% 4.83% 4.88% 4.75% 4.76% 4.38% 4.57%
November 4.92% 4.92% 5.31% 5.06% 2.82% 3.02% 4.41% 4.70% 4.56% 4.67% 4.27% 4.39%
October 4.79% 4.77% 5.12% 4.91% 2.67% 2.81% 4.17% 4.38% 4.50% 4.52% 4.11% 4.25%
September 4.60% 4.69% 4.95% 4.85% 2.67% 2.80% 4.17% 4.30% 4.50% 4.49% 4.15% 4.25%
August 4.42% 4.55% 4.79% 4.70% 2.47% 2.59% 3.86% 4.05% 4.39% 4.35% 4.01% 4.12%
July 4.30% 4.45% 4.69% 4.61% 2.43% 2.50% 3.80% 3.91% 4.28% 4.25% 3.96% 4.04%
June 4.22% 4.32% 4.58% 4.47% 2.57% 2.69% 4.02% 4.20% 4.08% 4.13% 3.85% 3.98%
May 4.18% 4.29% 4.54% 4.46% 2.70% 2.83% 4.22% 4.42% 4.09% 4.12% 3.81% 3.93%
</TABLE>
<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 further increases in short-term interest rates as the
Federal Reserve continues to fight inflationary concerns 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
Anne Lamphere
Portfolio Managers
Firstar Investment Research & Management Company, LLC (FIRMCO)
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, 2000
(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
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at amortized cost $ 178,128 $2,194,610 $ 155,896 $ 61,934 $ 116,666
Receivable for securities matured - - 2,000 - -
Interest receivable 188 1,428 1,601 18 605
Capital shares sold 16,151 - - - -
Other 22 27 10 7 12
---------- ---------- ---------- ---------- ----------
Total Assets 194,489 2,196,065 159,507 61,959 117,283
---------- ---------- ---------- ---------- ----------
LIABILITIES:
Capital shares redeemed 11,556 - - 389 -
Dividends payable 695 9,482 401 256 466
Payable to affiliates 182 1,152 154 101 117
Accrued expenses and other liabilities 59 32 14 27 13
---------- ---------- ---------- ---------- ----------
Total Liabilities 12,492 10,666 569 773 596
---------- ---------- ---------- ---------- ----------
NET ASSETS $ 181,997 $2,185,399 $ 158,938 $ 61,186 $ 116,687
========== ========== ========== ========== ==========
CAPITAL STOCK, $.0001 par value
Authorized 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000
Issued and outstanding 181,997 2,185,399 158,938 61,186 116,687
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)
SIX MONTHS ENDED APRIL 30, 2000
(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
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $6,274 $64,397 $2,947 $3,359 $2,920
---------- ---------- ---------- ---------- ----------
EXPENSES:
Investment advisory fees 531 5,336 395 306 269
Administration fees 113 1,160 84 65 58
Service organization fees 50 - - - -
Custody fees 18 156 14 19 9
Transfer agent fees and expenses 141 61 18 19 16
Fund accounting fees 25 30 18 23 16
Professional fees 22 20 21 20 18
Reports to shareholders 91 7 5 11 5
Federal and state registration fees 16 29 10 10 9
Directors' fees and expenses 4 5 4 4 4
Other 4 18 2 4 1
---------- ---------- ---------- ---------- ----------
Total expenses before waiver 1,015 6,822 571 481 405
Less: Waiver of expenses (219) (2,587) - (42) (3)
---------- ---------- ---------- ---------- ----------
Net Expenses 796 4,235 571 439 402
---------- ---------- ---------- ---------- ----------
NET INVESTMENT INCOME $5,478 $60,162 $2,376 $2,920 $2,518
========== ========== ========== ========== ==========
</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
Apr. 30, 2000 Oct. 31, 1999 Apr. 30, 2000 Oct. 31, 1999 Apr. 30, 2000 Oct. 31, 1999
------------- ------------- ------------- ------------- ------------- -------------
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $5,478 $12,640 $60,162 $104,359 $2,376 $3,476
---------- ---------- ---------- ---------- ---------- ----------
Net increase in net assets
resulting from
operations 5,478 12,640 60,162 104,359 2,376 3,476
---------- ---------- ---------- ---------- ---------- ----------
CAPITAL SHARE
TRANSACTIONS:
Shares sold 738,570 1,076,363 2,151,499 7,441,516 145,628 257,973
Shares issued to
owners in reinvestment
of dividends 5,528 12,321 2,521 4,367 612 1,319
Shares redeemed (845,582) (1,094,291) (2,324,872) (6,713,602) (140,491) (228,554)
---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) (101,484) (5,607) (170,852) 732,281 5,749 30,738
---------- ---------- ---------- ---------- ---------- ----------
DIVIDENDS PAID FROM:
Net investment income (5,478) (12,640) (60,162) (104,359) (2,376) (3,476)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL INCREASE (DECREASE)
IN NET ASSETS (101,484) (5,607) (170,852) 732,281 5,749 30,738
NET ASSETS:
Beginning of period 283,481 289,088 2,356,251 1,623,970 153,189 122,451
---------- ---------- ---------- ---------- ---------- ----------
End of period $181,997 $283,481 $2,185,399 $2,356,251 $158,938 $153,189
========== ========== ========== ========== ========== ==========
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
<TABLE>
<CAPTION>
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
Apr. 30, 2000 Oct. 31, 1999 Apr. 30, 2000 Oct. 31, 1999
------------- ------------- ------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $2,920 $10,770 $2,518 $4,214
---------- ---------- ---------- ----------
Net increase in net assets
resulting from
operations 2,920 10,770 2,518 4,214
---------- ---------- ---------- ----------
CAPITAL SHARE
TRANSACTIONS:
Shares sold 197,467 891,590 148,379 345,253
Shares issued to
owners in reinvestment
of dividends 693 1,870 231 422
Shares redeemed (345,989) (917,621) (127,462) (342,008)
---------- ---------- ---------- ----------
Net increase (decrease) (147,829) (24,161) 21,148 3,667
---------- ---------- ---------- ----------
DIVIDENDS PAID FROM:
Net investment income (2,920) (10,770) (2,518) (4,214)
---------- ---------- ---------- ----------
TOTAL INCREASE (DECREASE)
IN NET ASSETS (147,829) (24,161) 21,148 3,667
NET ASSETS:
Beginning of period 209,015 233,176 95,539 91,872
---------- ---------- ---------- ----------
End of period $61,186 $209,015 $116,687 $95,539
========== ========== ========== ==========
</TABLE>
See notes to the financial statements.
<PAGE>
This page intentionally left blank.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
PER SHARE DATA
Net Asset Net Dividends from Net
Value, Beginning Investment Net Investment Asset Value,
of Period Income Income End of Period
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MONEY MARKET FUND
Year Ended October 31, 1995 ........................ $1.00 $0.05 $(0.05) $1.00
Year Ended October 31, 1996 ........................ 1.00 0.05 (0.05) 1.00
Year Ended October 31, 1997......................... 1.00 0.05 (0.05) 1.00
Year Ended October 31, 1998......................... 1.00 0.05 (0.05) 1.00
Year Ended October 31, 1999......................... 1.00 0.04 (0.04) 1.00
Six Months Ended April 30, 2000 (unaudited)......... 1.00 0.03 (0.03) 1.00
INSTITUTIONAL MONEY MARKET FUND
Year Ended October 31, 1995 ........................ 1.00 0.06 (0.06) 1.00
Year Ended October 31, 1996......................... 1.00 0.05 (0.05) 1.00
Year Ended October 31, 1997......................... 1.00 0.05 (0.05) 1.00
Year Ended October 31, 1998......................... 1.00 0.05 (0.05) 1.00
Year Ended October 31, 1999......................... 1.00 0.05 (0.05) 1.00
Six Months Ended April 30, 2000 (unaudited)......... 1.00 0.03 (0.03) 1.00
TAX-EXEMPT MONEY MARKET FUND
Year Ended October 31, 1995......................... 1.00 0.03<F6> (0.03) 1.00
Year Ended October 31, 1996......................... 1.00 0.03<F6> (0.03) 1.00
Year Ended October 31, 1997......................... 1.00 0.03<F6> (0.03) 1.00
Year Ended October 31, 1998......................... 1.00 0.03<F6> (0.03) 1.00
Year Ended October 31, 1999......................... 1.00 0.03<F6> (0.03) 1.00
Six Months Ended April 30, 2000 (unaudited)......... 1.00 0.02<F6> (0.02) 1.00
U.S. GOVERNMENT MONEY MARKET FUND
Year Ended October 31, 1995......................... 1.00 0.05 (0.05) 1.00
Year Ended October 31, 1996......................... 1.00 0.05 (0.05) 1.00
Year Ended October 31, 1997......................... 1.00 0.05 (0.05) 1.00
Year Ended October 31, 1998......................... 1.00 0.05 (0.05) 1.00
Year Ended October 31, 1999......................... 1.00 0.04 (0.04) 1.00
Six Months Ended April 30, 2000 (unaudited)......... 1.00 0.02 (0.02) 1.00
U.S. TREASURY MONEY MARKET FUND
Year Ended October 31, 1995 ........................ 1.00 0.05 (0.05) 1.00
Year Ended October 31, 1996......................... 1.00 0.05 (0.05) 1.00
Year Ended October 31, 1997......................... 1.00 0.05 (0.05) 1.00
Year Ended October 31, 1998......................... 1.00 0.05 (0.05) 1.00
Year Ended October 31, 1999......................... 1.00 0.04 (0.04) 1.00
Six Months Ended April 30, 2000 (unaudited)......... 1.00 0.02 (0.02) 1.00
</TABLE>
<TABLE>
<CAPTION>
Supplemental Data and Ratios
---------------------------------------------------------
Ratio of Ratio of Net
Net Assets, Net Expenses Investment Income
End of Period to Average to Average Total
(000s) Net Assets Net Assets Return
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MONEY MARKET FUND
Year Ended October 31, 1995.................... $ 172,261 0.60%<F1> 5.36%<F1> 5.51%
Year Ended October 31, 1996 ................... 224,036 0.60%<F1> 4.94%<F1> 5.06%
Year Ended October 31, 1997.................... 261,017 0.60%<F1> 4.98%<F1> 5.12%
Year Ended October 31, 1998.................... 289,088 0.60%<F1> 5.05%<F1> 5.16%
Year Ended October 31, 1999.................... 283,481 0.72%<F1> 4.44%<F1> 4.52%
Six Months Ended April 30, 2000 (unaudited).... 181,997 0.75%<F1> 5.15%<F1> 2.61%<F7>
INSTITUTIONAL MONEY MARKET FUND
Year Ended October 31, 1995 ................... 716,566 0.35%<F2> 5.63%<F2> 5.77%
Year Ended October 31, 1996.................... 750,051 0.35%<F2> 5.19%<F2> 5.32%
Year Ended October 31, 1997.................... 1,201,341 0.35%<F2> 5.23%<F2> 5.38%
Year Ended October 31, 1998.................... 1,623,970 0.35%<F2> 5.30%<F2> 5.41%
Year Ended October 31, 1999.................... 2,356,251 0.38%<F2> 4.76%<F2> 4.85%
Six Months Ended April 30, 2000 (unaudited).... 2,185,399 0.39%<F2> 5.54%<F2> 2.79%<F7>
TAX-EXEMPT MONEY MARKET FUND
Year Ended October 31, 1995.................... 84,084 0.60%<F3> 3.36%<F3> 3.42%
Year Ended October 31, 1996.................... 79,328 0.60%<F3> 3.09%<F3> 3.13%
Year Ended October 31, 1997.................... 108,639 0.60%<F3> 3.06%<F3> 3.12%
Year Ended October 31, 1998.................... 122,451 0.60%<F3> 3.02%<F3> 3.04%
Year Ended October 31, 1999.................... 153,189 0.71%<F3> 2.51%<F3> 2.53%
Six Months Ended April 30, 2000 (unaudited).... 158,938 0.72%<F3> 3.01%<F3> 1.50%<F7>
U.S. GOVERNMENT MONEY MARKET FUND
Year Ended October 31, 1995.................... 163,068 0.60%<F4> 5.24%<F4> 5.37%
Year Ended October 31, 1996.................... 198,334 0.60%<F4> 4.84%<F4> 4.96%
Year Ended October 31, 1997.................... 198,592 0.60%<F4> 4.83%<F4> 4.99%
Year Ended October 31, 1998.................... 233,176 0.60%<F4> 4.90%<F4> 4.97%
Year Ended October 31, 1999.................... 209,015 0.68%<F4> 4.30%<F4> 4.37%
Six Months Ended April 30, 2000 (unaudited).... 61,186 0.72%<F4> 4.77%<F4> 2.46%<F7>
U.S. TREASURY MONEY MARKET FUND
Year Ended October 31, 1995 ................... 64,655 0.60%<F5> 5.04%<F5> 5.16%
Year Ended October 31, 1996.................... 53,430 0.60%<F5> 4.70%<F5> 4.80%
Year Ended October 31, 1997.................... 78,478 0.60%<F5> 4.67%<F5> 4.80%
Year Ended October 31, 1998.................... 91,872 0.60%<F5> 4.62%<F5> 4.71%
Year Ended October 31, 1999.................... 95,539 0.71%<F5> 3.94%<F5> 4.01%
Six Months Ended April 30, 2000 (unaudited).... 116,687 0.75%<F5> 4.67%<F5> 2.34%<F7>
</TABLE>
<F1> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 2000 and for the fiscal years ended October 31,
1999, 1998, 1997, 1996, 1995 would have been 0.96%, 0.85%, 0.86%, 0.84%,
0.81%, 0.90%, respectively; and ratios of net investment income to average
net assets for the period ended April 30, 2000 and for the fiscal years
ended October 31, 1999, 1998, 1997, 1996, 1995 would have been 4.94%,
4.31%, 4.79%, 4.73%, 4.73%, 5.06%, respectively.
<F2> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 2000 and for the fiscal years ended October 31,
1999, 1998, 1997, 1996, 1995 would have been 0.63%, 0.62%, 0.64%, 0.66%,
0.64%, 0.69%, respectively; and ratios of net investment income to average
net assets for the period ended April 30, 2000 and for the fiscal years
ended October 31, 1999, 1998, 1997, 1996, 1995 would have been 5.30%,
4.52%, 5.01%, 4.92%, 4.90%, 5.29%, respectively.
<F3> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 2000 and for the fiscal years ended October 31,
1999, 1998, 1997, 1996, 1995 would have been 0.72%, 0.73%, 0.75%, 0.75%,
0.78%, 0.84%, respectively; and ratios of net investment income to average
net assets for the period ended April 30, 2000 and for the fiscal years
ended October 31, 1999, 1998, 1997, 1996, 1995 would have been 3.01%,
2.49%, 2.87%, 2.91%, 2.91%, 3.12%, respectively.
<F4> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 2000 and for the fiscal years ended October 31,
1999, 1998, 1997, 1996, 1995 would have been 0.79%, 0.69%, 0.71%, 0.70%,
0.71%, 0.75%, respectively; and ratios of net investment income to average
net assets for the period ended April 30, 2000 and for the fiscal years
ended October 31, 1999, 1998, 1997, 1996, 1995 would have been 4.70%,
4.29%, 4.79%, 4.73%, 4.73%, 5.09%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for the
period ended April 30, 2000 and for the fiscal years ended October 31,
1999, 1998, 1997, 1996, 1995 would have been 0.75%, 0.74%, 0.77%, 0.78%,
0.80%, 0.83%, respectively; and ratios of net investment income to average
net assets for the period ended April 30, 2000 and for the fiscal years
ended October 31, 1999, 1998, 1997, 1996, 1995 would have been 4.67%,
3.91%, 4.45%, 4.49%, 4.50%, 4.81%, respectively.
<F6> For the Tax-Exempt Money Market Fund, substantially all investment income
is exempt from federal income tax.
<F7> Not annualized.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2000
(UNAUDITED)
Principal Amount Amortized Cost
(in thousands) (in thousands)
---------------- ----------------
COMMERCIAL PAPER 85.0%
ASSET BACKED SECURITY 13.1%
Ciesco L.P.,
$ 4,000 6.00%, 6/19/00 $ 3,967
Corporate Asset Funding Co., Inc.:
4,000 5.92%, 5/04/00 3,998
4,000 6.13%, 7/17/00 3,948
CXC, Inc.,
4,000 6.07%, 5/12/00 3,993
Edison Asset Securitization, L.L.C.:
4,000 5.84%, 5/03/00 3,999
4,000 6.11%, 6/28/00 3,961
-----------
23,866
-----------
AUTOS & TRUCKS 4.4%
Ford Motor Credit Company,
4,000 6.04%, 5/31/00 3,980
General Motors Acceptance Corporation,
4,000 6.16%, 7/10/00 3,952
-----------
7,932
-----------
BANKING - FOREIGN 9.0%
Deutsche Bank Finance, Inc.:
4,000 6.08%, 6/07/00 3,975
4,000 6.08%, 6/30/00 3,960
Dresdner US Finance, Inc.,
4,000 6.11%, 6/27/00 3,961
UBS Finance (Delaware), Inc.,
4,500 5.84%, 5/10/00 4,493
-----------
16,389
-----------
COMMUNICATIONS 4.4%
British Telecommunications PLC:
4,000 5.90%, 5/08/00 3,995
4,000 6.08%, 7/05/00 3,956
-----------
7,951
-----------
FINANCE - MISCELLANEOUS 10.9%
Bell Atlantic Financial Services, Inc.,
4,000 6.04%, 5/01/00 4,000
CIT Group Holdings, Inc.,
4,000 5.94%, 6/01/00 3,980
National Rural Utilities CFC:
4,000 6.12%, 7/20/00 3,946
4,000 6.20%, 10/13/00 3,886
Sheffield Receivables Corp.,
4,000 6.06%, 5/26/00 3,983
-----------
19,795
-----------
MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2000
(Unaudited)
Principal Amount Amortized Cost
(in thousands) (in thousands)
---------------- ----------------
FINANCE - SERVICES 15.3%
Goldman Sachs Group, L.P.:
$ 4,000 6.06%, 5/11/00 $ 3,993
4,000 5.93%, 5/22/00 3,986
Household Finance Corporation:
4,000 6.06%, 6/14/00 3,970
4,000 6.07%, 6/22/00 3,965
Merrill Lynch and Co., Inc.:
4,000 5.88%, 5/01/00 4,000
4,000 6.14%, 7/28/00 3,940
Morgan Stanley, Dean Witter, Discover & Co.,
4,000 5.93%, 5/25/00 3,984
-----------
27,838
-----------
INSURANCE 8.7%
American Family Financial Services, Inc.:
4,000 5.85%, 5/18/00 3,989
4,000 6.06%, 9/18/00 3,906
Prudential Funding Corporation:
4,000 5.86%, 5/19/00 3,988
4,000 6.21%, 8/28/00 3,918
-----------
15,801
-----------
MACHINERY - AGRICULTURE AND CONSTRUCTION 3.3%
John Deere Capital Corporation,
6,000 6.25%, 6/12/00 6,003
MISCELLANEOUS 6.5%
Bestfoods, Inc.,
4,000 5.95%, 6/06/00 3,976
Invensys PLC,
4,000 6.05%, 5/17/00 3,989
SBC Corporation,
4,000 6.14%, 8/09/00 3,931
-----------
11,896
-----------
PRINTING & PUBLISHING 2.7%
McGraw Hill,
5,000 6.07%, 6/20/00 4,958
-----------
SOVEREIGN 6.7%
Hydro-Quebec Corporation,
4,000 5.90%, 5/24/00 3,985
Quebec (Province of) Canada,
4,371 6.18%, 9/01/00 4,279
Venantius Corporation,
4,000 6.16%, 7/19/00 3,946
-----------
12,210
-----------
Total Commercial Paper 154,639
-----------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30,2000
(UNAUDITED)
Principal Amount Amortized Cost
(in thousands) (in thousands)
---------------- ----------------
FUNDING AGREEMENTS 3.8%
Travelers Insurance Corporation,
$ 7,000 6.31%, 6/30/00<F1> $ 7,000
-----------
Total Funding Agreements 7,000
-----------
VARIABLE RATE DEMAND NOTES 4.4%
8,000 Sara Lee Corporation 8,000
Total Variable Rate Demand Notes 8,000
-----------
Number
of Shares
(in thousands)
--------------
INVESTMENT COMPANIES 4.7%
2,786 Financial Square Prime Obligation Fund 2,786
5,703 Short-Term Investments Co. -
Liquid Assets Portfolio 5,703
-----------
Total Investment Companies 8,489
-----------
Total Investments 97.9% 178,128
-----------
Other Assets, less Liabilities 2.1% 3,869
-----------
NET ASSETS 100.0% $181,997
===========
<F1>Illiquid security
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2000
(UNAUDITED)
Principal Amount Amortized Cost
(in thousands) (in thousands)
---------------- ----------------
COMMERCIAL PAPER 90.5%
ASSET BACKED 20.1%
Ciesco L.P.:
$ 50,000 6.00%, 6/19/00 $ 49,592
45,000 6.25%, 7/14/00 44,422
Corporate Asset Funding Co., Inc.:
50,000 5.92%, 5/04/00 49,975
46,000 6.13%, 7/17/00 45,397
CXC, Inc.:
5,000 6.09%, 6/23/00 4,955
50,000 6.07%, 8/28/00 48,997
50,000 6.18%, 9/14/00 48,833
Edison Asset Securitization, L.L.C.:
50,000 5.84%, 5/03/00 49,984
50,000 6.10%, 6/12/00 49,644
Riverwoods Funding,
48,000 5.90%, 5/19/00 47,858
-----------
439,657
-----------
AUTO & TRUCKS 11.1%
Daimler Chrysler Holding Company:
50,000 5.90%, 5/23/00 49,820
50,000 5.94%, 6/02/00 49,736
Ford Credit Europe PLC,
45,000 6.06%, 6/22/00 44,606
General Motors Acceptance Corporation:
50,000 5.91%, 5/15/00 49,885
50,000 6.15%, 7/11/00 49,394
-----------
243,441
-----------
BANKING - FOREIGN 10.5%
Deutsche Bank Financial, Inc.:
40,000 6.05%, 6/13/00 39,711
50,000 6.08%, 6/30/00 49,493
Dresdner US Finance, Inc.,
45,000 6.11%, 6/27/00 44,565
UBS Finance (Delaware), Inc.:
50,000 5.77%, 5/05/00 49,968
45,000 5.84%, 5/10/00 44,934
-----------
228,671
-----------
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2000
Principal Amount Amortized Cost
(in thousands) (in thousands)
---------------- ----------------
COMMUNICATIONS & MEDIA 4.6%
British Telecommunications PLC:
$ 50,000 5.90%, 5/08/00 $ 49,943
50,000 5.92%, 5/18/00 49,860
-----------
99,803
-----------
FINANCE - MISCELLANEOUS 11.1%
Bell Atlantic Financial Services, Inc.,
50,000 6.27%, 6/28/00 49,495
CIT Group Holding, Inc.,
50,000 5.94%, 6/01/00 49,744
Household Finance Corporation,
50,000 6.06%, 6/14/00 49,630
National Rural Utilities CFC:
46,000 6.12%, 7/20/00 45,374
50,000 6.07%, 9/11/00 48,879
-----------
243,122
-----------
FINANCE - SERVICES 13.2%
Goldman Sachs Group, L.P.:
50,000 6.06%, 5/11/00 49,916
50,000 6.12%, 6/28/00 49,507
Merrill Lynch & Company, Inc.:
40,000 5.88%, 5/01/00 40,000
50,000 6.07%, 6/21/00 49,570
Morgan Stanley, Dean Witter, Discovery & Co.:
50,000 5.93%, 5/25/00 49,802
50,000 5.95%, 6/09/00 49,678
-----------
288,473
-----------
FOOD AND BEVERAGE 2.3%
Diageo PLC,
50,000 5.83%, 5/17/00 49,870
-----------
INSURANCE 4.6%
American General Corporation:
50,000 5.93%, 5/31/00 49,753
50,000 5.95%, 6/07/00 49,694
-----------
99,447
-----------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2000
(UNAUDITED)
Principal Amount Amortized Cost
(in thousands) (in thousands)
---------------- ----------------
MISCELLANEOUS 6.5%
BTR Siebe,
$ 50,000 6.05%, 6/15/00 $49,622
Invensys PLC,
50,000 5.92%, 5/09/00 49,934
SBC Corporation,
42,735 6.14%, 8/09/00 42,000
-----------
141,556
-----------
PRINTING AND PUBLISHING 2.0%
Reed Elsevier, Inc.,
45,000 6.08%, 6/20/00 44,620
-----------
SOVEREIGN 4.5%
Hydro-Quebec Corporation,
50,000 5.90%, 5/24/00 49,812
Quebec (Province of) Canada,
50,000 6.25%, 9/25/00 48,724
-----------
98,536
-----------
Total Commercial Paper 1,977,196
-----------
FUNDING AGREEMENTS 3.8%
Travelers Insurance Company:
40,000 6.16%, 2/19/01<F1> 40,000
43,000 6.31%, 6/30/00<F1> 43,000
-----------
Total Funding Agreements 83,000
-----------
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2000
Number of Shares Amortized Cost
(in thousands) (in thousands)
---------------- ----------------
INVESTMENT COMPANIES 6.1%
30,006 Financial Square Premium Money Market Fund $ 30,006
104,409 Short-Term Investments Co.
Liquid Assets Portfolio 104,409
-----------
Total Investment Companies 134,415
-----------
Total Investments 100.4% 2,194,610
-----------
Liabilities, less Other Assets (0.4)% (9,211)
-----------
NET ASSETS 100.0% $2,185,399
============
<F1>Illiquid security
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
TAX-EXEMPTMONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2000
(UNAUDITED)
Principal Amount Amortized Cost
(in thousands) (in thousands)
---------------- ----------------
GENERAL OBLIGATION 3.8%
Northwestern Mutual Life,
Tax-Exempt Mortgage Certificates
$1,100 4.50%, 2/15/09<F1><F2> $ 100
Laredo, Texas,
1,630 6.75%, 8/01/00 1,642
Richmond County, Georgia,
2,575 4.50%, 3/01/01 2,581
Wyandotte County, Kansas,
1,755 4.50%, 9/01/00 1,758
-----------
Total General Obligation 6,081
-----------
PREREFUNDED AND ESCROWED
TO MATURITY 25.9%
Austin, Texas Utility System Revenue,
4,000 10.75%, 5/15/10, Prerefunded 5/15/00 4,010
Boston, Massachusetts Hospital Revenue,
4,000 7.63%, 2/15/21, Prerefunded 8/15/00 4,108
Cattaraugus County, New York,
St. Bonaventure University,
3,000 8.30%, 12/01/10, Prerefunded 12/01/00 3,129
Central Arizona Water Conservation District,
5,175 7.13%, 11/01/11, Prerefunded 11/01/00 5,360
Henrico County, Virginia Hospital Revenue,
1,290 7.50%, 9/01/07, Prerefunded 8/01/00 1,327
Hoffman Estates, Illinois Economic Development,
3,910 7.63%, 11/15/09, Prerefunded 11/15/00 4,056
Illinois State,
2,000 6.50%, 6/01/01, Prerefunded 6/01/00 2,044
Martinsville Memorial Hospital, Virginia,
1,250 7.00%, 1/01/06, Prerefunded 1/01/01 1,271
Massachusetts State University Hospital,
4,000 7.25%, 7/01/19, Prerefunded 7/01/00 4,101
Metropolitan Transit Authority, New York,
2,530 7.50%, 7/01/26, Prerefunded 7/01/00 2,595
Montgomery County, Pennsylvania,
1,580 8.63%, 7/01/07, Prerefunded 7/01/00 1,621
Northeast Independent School District, Texas,
1,900 6.00%, 6/15/00, Escrowed to Maturity 1,906
Rhode Island Hospital Revenue,
1,000 7.75%, 7/01/16, Prerefunded 7/01/00 1,026
Scranton-Lackwana, Pennsylvania Hospital Revenue,
1,520 7.25%, 6/15/05, Prerefunded 6/15/00 1,557
Tucson, Arizona Street and Highway User Revenue,
1,000 6.88%, 7/01/08, Prerefunded 7/01/00 1,015
Walled Lake, Michigan School District,
2,000 7.10%, 5/01/05, Prerefunded 5/01/00 2,040
-----------
Total Prerefunded and Escrowed to Maturity 41,166
-----------
TAX-EXEMPTMONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2000
Principal Amount Amortized Cost
(in thousands) (in thousands)
---------------- ----------------
REVENUE BONDS 61.4%
ELECTRIC REVENUE 7.8%
Chelan County, Washington Public Utility,
$ 5,000 5.09%, 6/01/15<F1><F2> $ 5,000
County of Mason, Kentucky, Series 1984B,
1,950 4.99%, 10/15/14<F1><F2> 1,950
Putnam County, Florida Development Authority -
5,485 Seminole Electric, 4.99%, 3/15/14<F1><F2> 5,485
-----------
12,435
-----------
HOSPITAL REVENUE 14.2%
Illinois Health Facilities Authority,
Southern Illinois Healthcare Enterprises,
2,500 5.09%, 3/01/21<F1><F2> 2,500
Illinois Health Facilities Authority,
4,100 Recreational Facilities,
5.04%, 12/01/25<F1><F2> 4,100
Indiana Health Facilities Finance Authority -
4,600 Henry County Memorial Hospital,
5.04%, 4/01/13<F1><F2> 4,600
Indiana Hospital Equipment Finance Authority,
2,250 Nursing Home Improvements,
5.04%, 12/01/15<F1><F2> 2,250
Wisconsin State Health & Educational
Facilities -
1,900 Blood Center, 5.14%, 6/01/19<F1><F2> 1,900
Wisconsin State Health & Educational
Facilities -
5,000 Marshfield Clinic, 5.09%, 6/01/10<F1><F2> 5,000
Wisconsin State Health & Educational
Facilities -
2,109 Sinai Samaritan, 5.14%, 9/01/19<F1><F2> 2,109
-----------
22,459
-----------
HOUSING REVENUE 7.9%
Florida Housing Finance Agency -
3,000 Carlton Multi-Family,
5.14%, 12/01/08<F1><F2> 3,000
Illinois Development Finance Authority -
3,215 St. Paul's House, 5.09%, 2/01/25<F1><F2> 3,215
Orland Hills, Illinois, Multi-Family,
2,470 5.09%, 12/01/04<F1><F2> 2,470
Washington State Housing Finance - Community
3,830 Multi-Family Mortgage,
5.09%, 10/01/20<F1><F2> 3,830
-----------
12,515
-----------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
TAX-EXEMPTMONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2000
(UNAUDITED)
Principal Amount Amortized Cost
(in thousands) (in thousands)
---------------- ----------------
INDUSTRIAL DEVELOPMENT/POLLUTION
CONTROL REVENUE 6.0%
Mason County, Kentucky Pollution Control,
$ 2,850 4.99%, 10/15/14<F1><F2> $ 2,850
Oakbrook Terrace, Illinois Industrial
Development,
4,100 3.89%, 12/01/25<F1><F2> 4,100
Oklahoma County, Oklahoma Finance Authority -
2,600 Perrine Office Project,
4.29%, 12/01/14<F1><F2> 2,600
-----------
9,550
-----------
MISCELLANEOUS 11.1%
Cook County, Illinois:
3,790 5.09%, 5/01/20<F1><F2> 3,790
2,000 5.09%, 1/01/28<F1><F2> 2,000
Illinois Development Finance Authority,
4,800 Rest Haven, 5.09%, 1/01/27<F1><F2> 4,800
Illinois Development Finance Authority,
3,000 Presbyterian Home Lake-A,
5.09%, 9/01/31<F1><F2> 3,000
Illinois Education Facilities Authority,
2,000 Chicago Zoological Society,
5.09%, 12/15/25<F1><F2> 2,000
Indiana Health Facilities Finance Authority,
2,100 5.04%, 1/12/20<F1><F2> 2,100
-----------
17,690
-----------
TAX-EXEMPTMONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2000
Principal Amount Amortized Cost
(in thousands) (in thousands)
---------------- ----------------
UNIVERSITY REVENUE 14.4%
Illinois Development Finance Authority -
$ 6,000 St. Ignatius College Prep,
5.09%, 6/01/24<F1><F2> $ 6,000
Minnesota State Higher Educational Authority,
4,745 Bethel College, 5.09%, 4/01/28<F1><F2> 4,745
Texas Higher Education Authority,
2,190 5.09%, 12/01/25<F1><F2> 2,190
University of Illinois, Series 1990A,
720 Certificates of Participation,
7.25%, 8/15/00 727
University of Minnesota, Series A,
4,000 5.09%, 1/01/34<F1><F2> 4,000
University of North Carolina,
Chapel Hill Foundation
5,200 Certificates of Participation,
5.09%, 10/01/09<F1><F2> 5,200
-----------
22,862
-----------
Total Revenue Bonds 97,511
-----------
Number
of Shares
(in thousands)
--------------
INVESTMENT COMPANIES 7.0%
7,321 Financial Square Tax-Exempt Money Market Fund 7,321
3,817 Tax Free Cash Reserves 3,817
-----------
Total Investment Companies 11,138
-----------
Total Investments 98.1% 155,896
-----------
Other Assets, less Liabilities 1.9% 3,042
-----------
NET ASSETS 100.0% $158,938
===========
<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, 2000
(UNAUDITED)
Principal Amount Amortized Cost
(in thousands) (in thousands)
---------------- ----------------
U.S. GOVERNMENT AGENCIES 96.2%
FEDERAL FARM CREDIT BANK 30.4%
Federal Farm Credit Bank Discount Notes:
$ 4,000 5.95%, 6/02/00 $ 3,979
4,000 5.92%, 6/16/00 3,970
4,000 5.96%, 6/30/00 3,960
6,790 6.01%, 7/21/00 6,698
-----------
18,607
-----------
FEDERAL HOME LOAN MORTGAGE CORPORATION 22.8%
Federal Home Loan Mortgage Corporation Discount Notes:
2,000 5.82%, 5/02/00 2,000
6,000 5.77%, 5/11/00 5,990
3,000 5.82%, 5/18/00 2,992
3,000 5.82%, 5/25/00 2,988
-----------
13,970
-----------
FEDERAL NATIONAL MORTGAGE ASSN. 20.1%
Federal National Mortgage Assn. Discount Notes:
2,500 5.83%, 5/04/00 2,499
2,000 5.87%, 6/08/00 1,988
5,417 5.97%, 6/22/00 5,370
2,500 6.10%, 7/20/00 2,466
-----------
12,323
-----------
OTHER 22.8%
Tennessee Valley Authority Discount Notes:
2,000 5.94%, 5/03/00 1,999
4,000 5.89%, 5/11/00 3,994
2,000 5.85%, 5/16/00 1,995
2,000 5.86%, 5/31/00 1,990
4,000 5.99%, 6/28/00 3,962
-----------
13,940
-----------
Total U.S. Government Agencies 58,840
-----------
U.S. GOVERNMENTMONEY MARKET FUND
SCHEDULE OF INVESTMENTS
April 30, 2000
Number of Shares Amortized Cost
(in thousands) (in thousands)
---------------- ----------------
INVESTMENT COMPANIES 5.0%
58 Financial Square Government Obligation Fund $ 58
3,036 Short-Term Investments Co. Treasury Portfolio 3,036
-----------
Total Investment Companies 3,094
-----------
Total Investments 101.2% 61,934
-----------
Liabilities, less Other Assets (1.2)% (748)
-----------
NET ASSETS 100.0% $ 61,186
===========
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
U.S. TREASURY MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2000
(UNAUDITED)
Principal Amount Amortized Cost
(in thousands) (in thousands)
---------------- ----------------
U.S. TREASURIES 93.8%
U.S. TREASURY NOTES 32.5%
$ 5,000 6.25%, 5/31/00 $ 5,002
5,000 6.13%, 7/31/00 5,004
10,000 6.00%, 8/15/00 9,999
5,000 6.25%, 8/31/00 5,001
5,000 4.50%, 9/30/00 4,967
8,000 4.00%, 10/31/00 7,915
-----------
37,888
-----------
U.S. TREASURY BILLS 61.3%
5,000 5.76%, 5/04/00 4,998
7,000 5.75%, 5/11/00 6,989
10,000 5.52%, 5/25/00 9,963
8,000 5.67%, 6/08/00 7,952
15,000 5.63%, 6/15/00 14,894
16,000 5.41%, 6/22/00 15,875
4,000 5.66%, 7/06/00 3,958
5,000 5.63%, 7/20/00 4,937
2,000 5.73%, 8/10/00 1,968
-----------
71,534
-----------
Total U.S. Treasuries 109,422
-----------
Number
of Shares
(in thousands)
---------------
INVESTMENT COMPANIES 6.2%
5,687 Financial Square
Treasury Obligation Portfolio 5,687
1,557 Short-Term Investments Co.
Treasury Tax Advantage Portfolio 1,557
-----------
Total Investment Companies 7,244
-----------
Total Investments 100.0% 116,666
-----------
Other Assets, less Liabilities 0.0% 21
-----------
NET ASSETS 100.0% $116,687
===========
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MONEY MARKET FUND
INSTITUTIONAL 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
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, 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, Institutional Money Market, Tax-Exempt Money Market, U.S.
Government Money Market and U.S. Treasury Money Market Funds commenced
operations on March 16, 1988, April 26, 1991, 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,
2000, FIRMCO voluntarily waived $219, $2,187, $42 and $3 of its advisory fees,
in thousands, for the Money Market, Institutional Money Market, U.S. Government
Money Market and U.S. Treasury Money Market Funds, 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, 2000, $400 of administration fees, in thousands, were voluntarily
waived for the Institutional Money Market Fund.
<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, 2000. No
expenses were incurred for the Institutional Money Market, Tax-Exempt Money
Market, U.S. Government Money Market or U.S. Treasury Money Market Funds for the
period ended April 30, 2000.
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.
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(LOGO) FIRSTAR FUNDS
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FIRSTAR FUNDS ARE AVAILABLE THROUGH:
- THE FIRSTAR FUNDS CENTER,
- FINANCIAL CONSULTANTS 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 # FFMMSEM-00
