FIRSTAR FUNDS, INC.
MONEY MARKET FUND, INSTITUTIONAL MONEY MARKET FUND, U.S. TREASURY MONEY MARKET
FUND, U.S. GOVERNMENT MONEY MARKET FUND, TAX-EXEMPT MONEY MARKET FUND,
INTERMEDIATE BOND MARKET FUND, TAX-EXEMPT INTERMEDIATE BOND FUND, GROWTH FUND,
EMERGING GROWTH FUND, MICROCAP FUND AND CORE INTERNATIONAL EQUITY FUND
Supplement dated November 27, 2000 to the Prospectus for Retail A Shares of the
Money Market Fund, U.S. Treasury Money Market Fund, U.S. Government Money Market
Fund and Tax-Exempt Money Market Fund, Institutional Shares of the Institutional
Money Market Fund, and Retail A, Retail B and Institutional Shares of the
Intermediate Bond Market, Tax-Exempt Intermediate Bond, Growth, Emerging Growth,
Micro-Cap and Core International Equity Funds dated March 1, 2000, as
supplemented.
Effective November 27, 2000, the following Funds changed their names as follows:
PRIOR NAME CURRENT NAME
Intermediate Bond Market Fund Intermediate Bond Fund
Growth Fund Large Cap Core Equity Fund
Emerging Growth Fund Small Cap Core Equity Fund
Core International Equity Fund International Growth Fund
Effective November 27, 2000, Retail A Shares of the U.S. Treasury Money Market
Fund and Retail A, Retail B and Institutional Shares of the Small Cap Core
Equity and International Growth Funds are no longer being offered by this
Prospectus.
Effective November 27, 2000, the Prospectus is amended as follows:
PAGES 2-3
Under FEES AND EXPENSES OF THE FUND, replace the information concerning the
Money Market Fund with the following:
SHAREHOLDER FEES MONEY MARKET FUND
(FEES PAID DIRECTLY FROM YOUR INVESTMENT)
-----------------------------------------
Maximum Sales Charge (Load) Imposed on
Purchases (as a percentage of offering price) None
Maximum Deferred Sales Charge (Load)
(as a percentage of offering price) None(1)
Maximum Sales Charge (Load)
Imposed on Reinvested Dividends None
Redemption Fees None(2)
Exchange Fees None
ANNUAL FUND OPERATING EXPENSES MONEY MARKET
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS) FUND
---------------------------------------------
Management Fees (before waivers)3 0.50%
Distribution and Service (12b-1) Fees4 0.01%
Other Expenses (before waivers)5 0.51%
-----
Total Annual Fund Operating Expenses (before waivers) 1.02%
Fee Waivers and Expense Reimbursements6 (0.23%)
-------
Net Annual Fund Operating Expenses6 0.79%
=====
--------------------------------------------------------------------------------
1. A contingent deferred sales charge may be payable upon redemption of
the Money Market Fund Retail A Shares which were acquired upon exchange
for Retail B Shares. The contingent deferred sales charge is described
under the heading "Investing with Firstar Funds - Contingent Deferred
Sales Charge - Retail B Shares."
2. A fee of $12.00 is charged for each wire redemption and $15.00 for each
non-systematic withdrawal from a retirement account for which Firstar
Bank, N.A. is custodian.
3. As a result of fee waivers, the current management fee of the Money
Market Fund is 0.43% of the Fund's average daily net assets.
4. 12b-1 fees after waivers currently are 0.01% of the average daily net
assets of the Fund's Retail A Shares. The maximum 12b-1 fee applicable
to this Fund is 0.25%.
5. "Other Expenses" includes: (1) administration fees, transfer agency
fees and all other ordinary operating expenses of the Fund not listed
above; and (2) the payment of a shareholder servicing fee to
institutions under a service plan (described below under the heading
"Investing with Firstar Funds - Shareholder Organizations") equal to up
to 0.25% of the Fund's average daily net assets. Other Expenses after
waivers currently are 0.35% of the average daily net assets of the
Fund's Retail A Shares.
6. Certain service providers have contractually agreed to waive fees and
reimburse expenses for the Fund until October 31, 2001, so that Net
Annual Fund Operating Expenses will be no more than 0.79% for the
current fiscal year. The fee waivers and expense reimbursements may be
terminated at any time after October 31, 2001 at the discretion of the
service providers.
PAGE 3
Under EXAMPLE, replace the chart with the following:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
Money Market Fund - Retail A Shares........... $128 $400 $692 $1,523
Institutional Money Market Fund - 87 271 471 1,049
Institutional Shares..........................
</TABLE>
PAGE 5
Under FEES AND EXPENSES OF THE FUND, replace the information concerning the U.S.
Government Money Market Fund with the following:
This table describes the fees and expenses that you may pay if you buy and hold
Retail A Shares of the U.S. Government Money Market Fund.
U.S. GOVERNMENT
SHAREHOLDER FEES MONEY MARKET FUND
(FEES PAID DIRECTLY FROM YOUR INVESTMENT)
-----------------------------------------
Maximum Sales Charge (Load) Imposed on
Purchases (as a percentage of offering price) None
Maximum Deferred Sales Charge (Load)
(as a percentage of offering price) None(1)
Maximum Sales Charge (Load)
Imposed on Reinvested Dividends None
Redemption Fees None(2)
Exchange Fees None
U.S. GOVERNMENT
ANNUAL FUND OPERATING EXPENSES MONEY MARKET FUND
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
---------------------------------------------
Management Fees(3) 0.50%
Distribution and Service (12b-1) Fees (before 0.00%
waivers)(4)
Other Expenses (before waivers)(5) 0.66%
-----
Total Annual Fund Operating Expenses (before 1.16%
waivers)
Fee Waivers and Expense Reimbursements(6) (0.37%)
-------
Net Annual Fund Operating Expenses(6) 0.79%
-----------------------------------------------------------------------------
1. A contingent deferred sales charge may be payable upon redemption of
U.S. Government Money Market Fund's Retail A Shares which were acquired
upon exchange for Retail B Shares. The contingent deferred sales charge
is described under the heading "Investing with Firstar Funds -
Contingent Deferred Sales Charge - Retail B Shares."
2. A fee of $12.00 is charged for each wire redemption and $15.00 for each
non-systematic withdrawal from a retirement account for which Firstar
Bank, N.A. is custodian.
3. As a result of fee waivers, the current management fee of the U.S.
Government Money Market Fund is 0.31% of the Fund's average daily net
assets.
4. The Fund does not intend to pay 12b-1 fees for the current fiscal year.
The maximum 12b-1 fee applicable to this Fund is 0.25%.
5. "Other Expenses" includes: (1) administration fees, transfer agency
fees and all other ordinary operating expenses of the Fund not listed
above; and (2) the payment of a shareholder servicing fee to
institutions under a Service Plan (described below under "Investing
with Firstar Funds -- Shareholder Organizations") equal to 0.25% of the
average daily net assets of the Fund. Other Expenses after waivers
currently are 0.48% of the average daily net assets of the U.S.
Government Money Market Fund's Retail A Shares.
6. Certain service providers have contractually agreed to waive fees and
reimburse expenses for Retail A Shares of the U.S. Government Money
Market Fund until October 31, 2001, so that Net Annual Fund Operating
Expenses will be no more than 0.79% of the U.S. Government Money Market
Fund's average daily net assets for the current fiscal year. The fee
waivers and expense reimbursements may be terminated at any time after
October 31, 2001 at the discretion of the service providers.
EXAMPLE
The following example is intended to help you compare the cost of investing in
Retail A Shares of the Fund with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the Fund for the time periods
indicated, reinvest all of your dividends and distributions, and then redeem all
of your shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
U.S. Government Money Market Fund -
Retail A Shares $144 $446 $771 $1,691
PAGE 8
Replace the text under FEES AND EXPENSES OF THE FUND with the following:
This table describes the fees and expenses that you may pay if you buy and hold
Retail A Shares of the Tax-Exempt Money Market Fund.
TAX-EXEMPT MONEY
SHAREHOLDER FEES MARKET FUND
(FEES PAID DIRECTLY FROM YOUR INVESTMENT)
-----------------------------------------
Maximum Sales Charge (Load) Imposed on
Purchases (as a percentage of offering price) None
Maximum Deferred Sales Charge (Load)
(as a percentage of offering price) None(1)
Maximum Sales Charge (Load)
Imposed on Reinvested Dividends None
Redemption Fees None(2)
Exchange Fees None
ANNUAL FUND OPERATING EXPENSES TAX-EXEMPT MONEY
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS) MARKET FUND
---------------------------------------------
Management Fees 0.50%
Distribution and Service (12b-1) Fees (before 0.00%
waivers)(3)
Other Expenses (before waivers)(4) 0.43%
-----
Total Annual Fund Operating Expenses (before 0.93%
waivers)
Fee Waivers and Expense Reimbusements(5) (0.14%)
-------
Net Annual Fund Operating Expenses(5) 0.79%
=====
--------------------------------------------------------------------------------
1. A contingent deferred sales charge may be payable upon redemption of
Retail A Shares of the Tax-Exempt Money Market Fund which were acquired
upon exchange for Retail B Shares. The contingent deferred sales charge
is described under the heading Investing with Firstar Funds -
Contingent Deferred Sales Charge - Retail B Shares."
2. A fee of $12.00 is charged for each wire redemption and $15.00 for each
non-systematic withdrawal from a retirement account for which Firstar
Bank, N.A., is custodian.
3. The Fund does not intend to pay 12b-1 fees for the current fiscal year.
The maximum 12b-1 fee applicable to this Fund is 0.25%.
4. "Other Expenses" includes (1) administration fees, transfer agency fees
and all other ordinary operating expenses of the Fund not listed above
and (2) the payment of a shareholder servicing fee to institutions
under a Service Plan (described below under "Investing with Firstar
Funds--Shareholder Organizations") equal to up to 0.25% of the Fund's
average daily net assets. Other Expenses after waivers currently are
0.29% of the average daily net assets of the Fund's Retail A Shares.
5. Certain service providers have contractually agreed to waive fees and
reimburse expenses for Retail A Shares of the Tax-Exempt Money Market
Fund until October 31, 2001, so that Net Annual Fund Operating Expenses
will be no more than 0.79% of the Fund's average daily net assets for
the current fiscal year. The fee waivers and expense reimbursements may
be terminated at any time after October 31, 2001 at the discretion of
the service providers.
EXAMPLE
The following example is intended to help you compare the cost of investing in
Retail A Shares of the Fund with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the Retail A Shares of the Fund
for the time periods indicated, reinvest all of your dividends and
distributions, and then redeem all of your shares at the end of those periods.
The example also assumes that your investment has a 5% return each year and that
the Fund's operating expenses remain the same. Although your actual costs may be
higher or lower, based on these assumptions your costs would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
Tax-Exempt Money Market Fund
Retail A Shares............... $120 $375 $649 $1,432
PAGE 14
Under FEES AND EXPENSES OF THE FUND, replace the information in the Annual Fund
Operating Expenses Chart (and related footnotes) concerning the Intermediate
Bond Fund with the following:
INTERMEDIATE BOND FUND
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted RETAIL A RETAIL B INSTITUTIONAL
from Fund assets) -------- -------- -------------
Management Fees 0.50%3 0.50%3 0.50%3
Distribution and Service (12b-1) 0.00%4 0.75%4 None
Fees
Other Expenses(5) 0.45% 0.45% 0.20%
----- ----- -----
Total Annual Fund Operating 0.95% 1.70% 0.70%
Expenses (before waivers)
Fee Waivers and Expense (0.10%) (0.10%) (0.10%)
------- ------- -------
Reimbursements(6)
Net Annual Fund Operating 0.85% 1.60% 0.60%
===== ===== =====
Expenses(6)
--------------------------------------------------------------------------------
1. A contingent deferred sales charge is imposed on Retail B Shares
redeemed within six years of purchase at a rate of 5% in the first
year, 4% in the second year, 3% in the third and fourth year, 2% in the
fifth year, declining to 1% in the sixth year. Thereafter Retail B
Shares convert to Retail A Shares, which do not bear a contingent
deferred sales charge.
2. A fee of $12.00 is charged for each wire redemption of Retail A and
Retail B Shares and $15.00 for each non-systematic withdrawal of Retail
A, Retail B and Institutional Shares from a Retirement Account for
which Firstar Bank, N.A. is custodian.
3. As a result of fee waivers, management fees of the Intermediate Bond
Fund currently are 0.40% of the Fund's average daily net assets.
4. The total of all 12b-1 fees and shareholder servicing fees may not
exceed, in the aggregate, the annual rate of 0.25% of the Fund's
average daily net assets for the Retail A Shares. The Fund does not
intend to pay 12b-1 fees with respect to the Retail A Shares for the
current fiscal year.
5. "Other Expenses" includes: (1) administration fees, transfer agency
fees and all other ordinary operating expenses of the Fund not listed
above; and (2) with respect to Retail A and Retail B Shares, the
payment of a shareholder servicing fee to institutions under a Service
Plan (described below under the heading "Investing with Firstar Funds -
Shareholder Organizations") equal to 0.25% of the average daily net
assets of the Fund's Retail A Shares and Retail B Shares.
6. Certain service providers have contractually agreed to waive fees and
reimburse expenses for Retail A Shares, Retail B and Institutional
Shares of the Intermediate Bond Fund, in each case until October 31,
2001, so that Net Annual Fund Operating Expenses will be no more than:
0.85% for Retail A Shares, 1.60% for Retail B Shares and 0.60% for
Institutional Shares, in each case, for the current fiscal year. The
fee waivers and expense reimbursements may be terminated at any time
after October 31, 2001 at the discretion of the service providers.
PAGE 19
Replace the Annual Fund Operating Chart and related footnotes with the
following:
ANNUAL FUND OPERATING EXPENSES (expenses
that are deducted from fund assets) RETAIL A RETAIL B INSTITUTIONAL
----------------------------------- -------- -------- -------------
Management Fees(3) 0.50% 0.50% 0.50%
Distribution and Service (12b-1) Fees 0.00%4 0.75%4 None
Other Expenses5 0.61% 0.61% 0.36%
----- ----- -----
Total Annual Operating Expenses (before 1.11% 1.86% 0.86%
waivers)
Fee Waivers and Expense Reimbursements(6) (0.11%) (0.11%) (0.11%)
------- ------- -------
Net Annual Fund Operating Expenses(6) 1.00% 1.75% 0.75%
===== ===== =====
--------------------------------------------------------------------------------
1. A contingent deferred sales charge is imposed on Retail B Shares
redeemed within six years of purchase at a rate of 5% in the first
year, 4% in the second year, 3% in the third and fourth year, 2% in the
fifth year, declining to 1% in the sixth year. Thereafter Retail B
Shares convert to Retail A Shares, which do not bear a contingent
deferred sales charge.
2. A fee of $12.00 is charged for each wire redemption of Retail A and
Retail B Shares and $15.00 for each non-systematic withdrawal of Retail
A, Retail B and Institutional Shares from a Retirement Account for
which Firstar Bank, N.A. is custodian.
3. As a result of fee waivers, management fees of the Tax-Exempt
Intermediate Bond Fund currently are 0.39% of the Fund's average daily
net assets.
4. The total of all 12b-1 fees and shareholder servicing fees may not
exceed, in the aggregate, the annual rate of 0.25% of the Fund's
average daily net assets for the Retail A Shares. The Fund does not
intend to pay 12b-1 fees with respect to the Retail A Shares for the
current fiscal year.
5. "Other Expenses" includes: (1) administration fees, transfer agency
fees and all other ordinary operating expenses of the Fund not listed
above; and (2) with respect to Retail A and Retail B Shares, the
payment of a shareholder servicing fee to institutions under a Service
Plan (described below under the heading "Investing with Firstar Funds -
Shareholder Organizations") equal to 0.25% of the average daily net
assets of the Fund's Retail A Shares and Retail B Shares.
6. Certain service providers have contractually agreed to waive fees and
reimburse expenses for Retail A Shares and Retail B Shares of the Fund
until October 31, 2001, so that Net Annual Fund Operating Expenses will
be no more than 1.00% for Retail A Shares, no more than 1.75% for
Retail B Shares and no more than 0.75% for Institutional Shares for the
current fiscal year. The fee waivers and expense reimbursements may be
terminated at any time after October 31, 2001 at the discretion of the
service providers.
PAGE 57
Under EXAMPLE, replace the chart with the following:
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
MicroCap Fund - Institutional Shares..... $172 $533 $918 $1,998
PAGE 88
Under FUND MANAGERS, replace the second paragraph with the following:
David Bethke manages the Intermediate Bond Fund. Mr. Bethke has 19 years of
investment management experience and has been with FIRMCO and its affiliates
since 1987. Mr. Bethke has managed the Intermediate Bond Fund since
February 2000.
