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2000 Annual Report October 31, 2000
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discover
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(LOGO) FIRSTAR FUNDS
Money Market Fund
Institutional Money Market Fund
Tax-Exempt Money Market Fund
Ohio Tax-Exempt Money Market Fund
U.S. Government Money Market Fund
U.S. Treasury Money Market Fund
Short-Term Bond Fund
Intermediate Bond Fund
U.S. Government Securities Fund
Aggregate Bond Fund
Bond IMMDEX/TM Fund
Strategic Income Fund
Tax-Exempt Intermediate Bond Fund
Missouri Tax-Exempt Bond Fund
National Municipal Bond Fund
Balanced Income Fund
Balanced Growth Fund
Growth & Income Fund
Equity Income Fund
Relative Value Fund
Equity Index Fund
Large Cap Core Equity Fund
Large Cap Growth Fund
International Value Fund
International Growth Fund
MidCap Index Fund
MidCap Core Equity Fund
Small Cap Index Fund
Small Cap Core Equity Fund
Science & Technology Fund
MicroCap Fund
<PAGE>
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NOTICE TO INVESTORS
- Shares of Firstar Funds are distributed by Quasar Distributors, LLC, a Firstar
affiliate.
- There can be no assurance that the money market funds will be able to maintain
a stable net asset value of $1.00 per share.
- Firstar Bank affiliates serve as investment adviser, custodian, transfer
agent, administrator, accounting services agent and distributor and receive
compensation for these services as disclosed in the current prospectus.
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TABLE OF CONTENTS
Page(s)
Shareholder Letter and Market Outlook......................1-3
EQUITY FUNDS
Firstar Balanced Income Fund...............................4-5
(Firstar Stellar Fund combined
with Firstar Balanced Income Fund)
Firstar Balanced Growth Fund...............................6-7
(Mercantile Balanced Portfolio combined
with Firstar Balanced Growth Fund)
Firstar Growth & Income Fund...............................8-9
(Mercantile Growth & Income Equity Portfolio
combined with Firstar Growth and Income Fund)
Firstar Equity Income Fund...............................10-11
(Mercantile Equity Income Portfolio became
Firstar Equity Income Fund)
Firstar Relative Value Fund..............................12-13
(Firstar Stellar Relative Value Fund became
Firstar Relative Value Fund)
Firstar Equity Index Fund................................14-15
(Mercantile Equity Index Portfolio
combined with Firstar Equity Index Fund)
Firstar Large Cap Core Equity Fund.......................16-17
(Mercantile Growth Equity Portfolio combined
with Firstar Growth Fund and was renamed)
Firstar Large Cap Growth Fund............................18-19
(Firstar Stellar Growth Equity Fund became
Firstar Large Cap Growth Fund)
Firstar International Value Fund.........................20-21
(Firstar International Equity Fund became
Firstar International Value Fund)
Firstar International Growth Fund........................22-23
(Mercantile International Equity Portfolio
combined with Firstar Core International
Equity Fund and was renamed)
Firstar MidCap Index Fund................................24-25
(Firstar Stellar Capital Appreciation Fund combined
with Firstar MidCap Index Fund)
Firstar MidCap Core Equity Fund..........................26-27
(Firstar Special Growth Fund became Firstar
MidCap Core Equity Fund)
Firstar Small Cap Index Fund.............................28-29
(Mercantile Small Cap Equity Index Portfolio
became Firstar Small Cap Index Fund)
Firstar Small Cap Core Equity Fund.......................30-31
(Mercantile Small Cap Equity Portfolio combined with Firstar
Emerging Growth Fund and was renamed)
Firstar Science & Technology Fund........................32-33
(Firstar Stellar Science & Technology Fund became
Firstar Science & Technology Fund)
Firstar MicroCap Fund....................................34-35
Statement of Assets and Liabilities......................36-39
Statement of Changes in Net Assets.......................40-45
Statement of Operations..................................46-49
Financial Highlights.....................................50-69
Schedule of Investments.................................70-133
BOND FUNDS
Firstar Short-Term Bond Fund...........................134-135
(Firstar Short-Term Bond Market Fund was renamed
Firstar Short-Term Bond Fund)
Firstar Intermediate Bond Fund.........................136-137
(Mercantile Intermediate Corporate Bond Portfolio
combined with Firstar Intermediate Bond Market Fund
and was renamed)
Firstar U.S. Government Securities Fund................138-139
(Firstar Stellar U.S. Government Income Fund
combined with Mercantile U.S. Government
Securities Portfolio and was renamed)
Page(s)
BOND FUNDS (CONT.)
Firstar Aggregate Bond Fund............................140-141
(Mercantile Bond Index Portfolio combined with
Mercantile Government & Corporate Bond Portfolio
and was renamed)
Firstar Bond IMMDEX(TM)Fund............................142-143
Firstar Strategic Income Fund..........................144-145
(Firstar Stellar Strategic Income Fund was renamed
Firstar Strategic Income Fund)
Firstar Tax-Exempt Intermediate Bond Fund..............146-147
(Mercantile Short-Intermediate Municipal Portfolio
combined with Firstar Tax-Exempt Intermediate Bond Fund)
Firstar Missouri Tax-Exempt Bond Fund..................148-149
(Mercantile Missouri Tax-Exempt Bond Portfolio
became Firstar Missouri Tax-Exempt Bond Fund)
Firstar National Municipal Bond Fund...................150-151
(Firstar Stellar Insured Tax-Free Bond Fund
combined with Mercantile National Municipal
Bond Portfolio and was renamed)
Statement of Assets and Liabilities....................152-153
Statement of Changes in Net Assets.....................154-155
Statement of Operations................................156-157
Financial Highlights...................................158-171
Schedule of Investments................................172-194
MONEY MARKET FUNDS
Firstar Institutional Money Market Fund
Firstar Money Market Fund
(Mercantile Money Market Portfolio combined with Firstar Money Market Fund)
Firstar U.S. Government Money Market Fund
Firstar Ohio Tax-Exempt Money Market Fund
(Firstar Stellar Ohio Tax-Free Money Market Fund
became Firstar Ohio Tax-Exempt Money Market Fund)
Firstar Tax-Exempt Money Market Fund
(Firstar Stellar Tax-Free Money Market Fund and Mercantile
Tax-Exempt Money Market Portfolio combined with
Firstar Tax-Exempt Money Market Fund)
Firstar U.S. Treasury Money Market Fund
(Firstar Stellar Treasury Fund and Mercantile
Treasury Money Market Portfolio combined with the
Firstar U.S. Treasury Money Market Fund)
Year-End Review............................................196
Yield Comparisons..........................................197
Statement of Assets and Liabilities........................198
Statement of Operations....................................199
Statement of Changes in Net Assets.....................200-201
Financial Highlights...................................202-205
Schedule of Investments................................206-215
Notes to the Financial Statements......................216-231
Report of Independent Accountants.........................232
Notes to the Financial Statements......................233-241
Change of Accountants......................................242
Report of Independent Accountants.........................243
Notes to the Financial Statements......................244-259
Change of Accountants......................................260
Report of Independent Accountants.........................261
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NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
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<PAGE>
(LOGO) FIRSTAR FUNDS
DEAR SHAREHOLDER: December 2000
THREE FUND FAMILIES COME TOGETHER
Last summer, the Boards of Directors for Firstar Funds and Mercantile Mutual
Funds, and the Board of Trustees for Firstar Stellar Funds approved a plan to
combine the three fund families together to form a single family - Firstar
Funds. Shareholders of the fund families approved the plan in November and the
reorganization was completed on December 11, 2000.
For shareholders, we expect the consolidation to provide several benefits:
o A larger group of funds with a wider spectrum of investment styles to choose
from
o Enhanced research capabilities thanks to pooled resources
o Investors need to look to only one name when searching for information about
their investments - Firstar Funds
Under the plan, some of the funds with similar objectives were combined with
existing Firstar Funds, while other funds were reorganized into new Firstar
portfolios specifically created to continue the operations of the Mercantile or
Stellar fund under the Firstar name.
While the names may have changed, rest assured each fund continues to be
expertly managed with the same disciplined approach you've come to rely on. The
new Firstar Funds family offers 32 portfolios with varying investment objectives
and styles. For more information about any Firstar Fund, contact your financial
professional, visit us at www.firstarfunds.com, or call us at 1-800-677-FUND.
As always, we appreciate your investment in Firstar Funds.
Sincerely,
Firstar Funds
<PAGE>
(LOGO) FIRSTAR FUNDS
DEAR SHAREHOLDER: December, 2000
YEAR-END REVIEW
A review of market benchmarks shows mid-cap stocks led the pack during the year
ended October 31, 2000 with the S&P MidCap 400 Index posting a +31.7% return.
Small-cap stocks followed, with the Russell 2000 earning +17.4% and the S&P
SmallCap 600 Index advancing +25.3% during the same period. Large company stocks
lagged, with the S&P 500 Stock Index rising a modest +6.1% during the fiscal
year. Investment-grade bonds added stability and solid absolute returns to
diversified portfolios, demonstrated by the +7.1% total return for the Lehman
Brothers U.S. Government/Credit Bond Index.
The fiscal year came to a close amidst a closely contested national election, a
big jump in energy prices, a technology sector slowdown, and a deceleration in
economic growth - all of which pushed the pendulum of investor sentiment to the
fear side of the scale. A review of fundamentals, however, reveals the
foundation for further economic gains is still firmly in place.
Although a weak stock market, rising energy prices and tight credit conditions
are slowing the economy, we are skeptical that recession is the final outcome.
Since 1982, the U.S. has endured one recession, lasting just nine months from
July 1990 to March 1991. Back then, it took a war in the middle east, a big
spike in oil prices and a real estate collapse that threatened the banking
system to push the economy into decline. The current environment finds the world
at peace and the banking system secure. While the implosion of the "tech bubble"
has reduced the value of the NASDAQ 100 by over $2.4 trillion, major financial
intermediaries are not threatened by the decline. Although investors may be
depressed over their losses and less likely to spend aggressively due to a
reversal of the "wealth effect," we believe this slows, but does not stop
economic growth.
Better management techniques aided by technological innovation make the economy
more responsive to changes in final demand. "Just in time" supply chain
management keeps inventories low, so excessive inventory building is less likely
to trigger a recession. As a result, the economy slows down rapidly when demand
wanes but then re-accelerates just as quickly when final demand picks back up.
Because the financial system is sound, we believe the foundation for continued
growth is intact, and the current slowdown will foster the conditions necessary
for a re-acceleration in economic growth. Those conditions include lower
interest rates (thanks to a more accommodative monetary policy from the Federal
Reserve), lower energy prices and fiscal stimulus from the new Administration
and Congress in the form of increased government spending and a tax cut.
BOND MARKET
The steady "drumbeat" of soft economic news has resulted in a sharp decline in
interest rates. The biggest decline has been in the 5-year area of the Treasury
yield curve, taking the curve back to its normal, positively sloped shape. We
expect the Federal Reserve to once again "follow the market" with a series of
cuts in the short-term Fed Funds rate commencing early in the new year and
ultimately reversing a substantial portion of the 1.75% increase put in place
over the past eighteen months.
In addition to the return of a more "normal" yield curve, we also expect yield
spreads (the difference in yield between a corporate bond and a Treasury bond of
equal maturity) to level off and eventually narrow. As the year 2000 began,
spreads were vulnerable on several fronts. The relative supply/demand imbalance
between Treasury and corporate securities favored widening spreads. Further, the
Fed's aggressive moves to raise short-term interest rates and subsequent
inversion of the Treasury yield curve reminded bond market participants that an
economic slowdown was likely and that an economic "hard landing" was a
possibility. Looking forward, as economic growth re-accelerates in response to
lower rates, we expect yield spreads between corporate and government bonds to
narrow, especially if government surplus estimates are reduced due to increased
government spending and a tax cut.
STOCK MARKET
Earnings for the companies that comprise the S&P 500 Stock Index are projected
to grow +7% in 2001. Although in-line with the long-term historical average,
this is slower growth than we have experienced over the last two years. A
continued lack of pricing power, unfavorable currency translation and higher
energy and labor
<PAGE>
(LOGO) FIRSTAR FUNDS
costs are all working in tandem with a slower economy to diminish profit growth.
Our research effort is focused on identifying those companies that can overcome
these "headwinds" and sustain visible, consistent earnings gains. Specifically,
we are emphasizing companies with strong unit growth, the potential for
improvement in profit margins and the prospect for rising stock valuations.
From a sector allocation standpoint, we continue to overweight financial stocks.
If, as we believe, the Federal Reserve initiates a series of interest rate cuts
early in the new year, valuations for the group should improve. The recent
weakness in technology stocks is moving us to an overweight in this group as
well. Technology companies are still generating tremendous growth, with earnings
gains well above market averages. In our opinion, slower economic growth only
increases the need for investment in productivity-enhancing technologies.
Healthcare is another sector where company fundamentals meet our criteria and
where valuations are attractive. As a result, we are using any weakness in the
prices of these stocks to increase our exposure to the group.
In summary, we continue to see opportunities in the stock market. Valuations are
attractive, earnings growth remains solid and the interest rate environment is
likely to become more favorable for stocks. However, a slowing global economy
makes research and stock selection critical to performance, improving the
relative return potential of well diversified, actively managed portfolios.
We appreciate your continued support of Firstar Funds.
Sincerely,
Firstar Investment Research & Management Company, LLC (FIRMCO)
Investment Policy Committee
RICHARD BURLING WALTER DEWEY DONALD KELLER
Senior Vice President Senior Vice President Senior Vice President
Director of Credit Research Senior Portfolio Manager Senior Portfolio Manager
TODD KRIEG GEORGE SCHUPP MARIAN ZENTMYER
Senior Vice President Senior Vice President Committee Chairperson
Senior Portfolio Manager Director of Fixed Income Executive Vice President
Chief Investment Officer
of Equities
The above outlook and those that follow reflect the opinions of the portfolio
managers as of December, 2000. They are subject to change and any forecasts made
cannot be guaranteed. References to specific securities or sectors should not be
considered recommendations to buy or sell any securities.
S&P 500 STOCK INDEX: An unmanaged index of 500 large-capitalization common
stocks that is generally considered representative of the U.S. stock market. S&P
MIDCAP 400 INDEX: An unmanaged capitalization weighted index that measures the
performance of the mid-range sector of the U.S. stock market. S&P SMALLCAP 600
INDEX: An unmanaged capitalization weighted index that measures the performance
of the small-range sector of the U.S. stock market. Firstar Funds are not
sponsored, endorsed, sold, or promoted by Standard & Poor's, and Standard &
Poor's makes no representation regarding the advisability of investing in the
Funds. RUSSELL 2000 INDEX: An unmanaged index composed of the smallest 2,000
companies in a group of 3,000 U.S. companies in the Russell 3000 Index. LEHMAN
BROTHER'S U.S. GOVERNMENT/CREDIT BOND INDEX: An unmanaged bond index that
includes virtually every major U.S. Government and investment-grade corporate
bond with more than one year remaining until maturity.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED INCOME FUND
STRATEGY
Firstar Balanced Income Fund seeks to provide current income and the
preservation of capital by investing in a balanced portfolio of dividend-paying
equity and fixed-income securities.
MARKET CONDITIONS
The equity markets were extremely volatile during the twelve months ended
October 31, 2000 as traditional valuation and fundamental business analysis
replaced price-momentum as the winning stock market strategy. Momentum investing
held center stage until the markets peaked in March, when value-oriented
strategies began to significantly outperform the major market indexes. Our focus
on fundamental research and traditional valuation methodologies (such as
price-to-earnings and price-to-cash flow ratios) led to good performance in this
environment.
The past twelve months represent an extraordinary span of time for the
fixed-income market. The ten-year Treasury began the period at roughly 6.0%,
rose to 6.8% in January, and then proceeded to decline to 5.8% at the end of
October. While this was happening the yield curve went from a positive slope of
1.08% from the three-month Bill to the thirty-year Treasury, to a -0.59%.
INVESTMENT REVIEW
We are pleased to report Firstar Balanced Income Fund outperformed its
benchmark, the Lipper Balanced Fund Index, during the twelve month period ended
October 31, 2000. The Fund's return was +9.0% (Institutional shares) while the
S&P 500 Stock Index earned +6.1% and the Lipper Balanced Fund Index earned
+7.9%. Our strong performance for the equity portion of the portfolio is
attributable to two factors. First, our decision to overweight the healthcare
sector and underweight the telecommunication services sector. And second,
excellent stock selection within virtually every sector.
Currently, the equity portion of the portfolio is overweighted in the healthcare
and consumer staplem sectors and underweighted in the technology and
telecommunication services sectors. The Fund's sector weightings are compared to
a custom benchmark. The custom benchmark is an equally weighted combination of
the S&P 500 Stock Index and the S&P BARRA Value Index. This combination results
in a more evenly distributed sector allocation versus the S&P 500 Stock Index
alone. The financial and technology sectors each account for approximately 20%
each of the custom benchmark while the capital goods, telecommunication
services, consumer cyclical, consumer staple, energy and healthcare sectors each
account for about 10% each of the benchmark. Our decision to overweight the
consumer staple and healthcare sectors is based on our anticipation of
improvement in the relative earnings growth rates of these sectors. The more
stable growth rates of the companies in these two sectors are increasingly
attractive as the economy slows in response to the Federal Reserve's series of
interest rate hikes. The Fund is underweighted in the technology and telecom
services sectors because many of these companies are experiencing a decline in
their projected earnings growth rates. As growth expectations for these
companies have ratcheted down, their stock prices have declined significantly
from their peaks earlier this year. With valuations becoming increasingly
attractive, we are selectively adding to our holdings in these sectors. Within
each sector, we continue to concentrate on those companies that are generating
strong revenue and sustainable earnings growth.
Within the fixed-income portion of the portfolio, we concentrated our new
purchases in Treasury and agency securities. We increased our holdings of
Treasury securities because these were the best performing sector in the
market. Our agency exposure was increased due to the dramatic spread
widening in this sector. Our agency holdings had been almost zero at the
beginning of the period and now are closer to that of the general market.
LOOKING AHEAD - THE FORECAST
Looking ahead, we expect extreme stock price volatility and vicious sector
rotation within the equity market to continue as economic growth slows and
corporate earnings expectations are adjusted to reflect the slower growth
environment. However, slower economic growth means interest rates and inflation
expectations are likely to decline, creating a very favorable backdrop for the
stock market. We believe a diversified portfolio strategy emphasizing companies
with strong fundamentals and consistent, predictable earnings growth is the key
to success.
Within the fixed-income market, Treasuries have had a tremendous run over the
past year, outperforming all other sectors of the market. We believe that the
other sectors of the market; namely corporates, agencies and mortgages will
outperform in the coming year. It is our intention to add to these sectors of
the market as cash and opportunities present themselves.
PORTFOLIO MANAGER PROFILE
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MARIAN E. ZENTMYER, CFA, and DAVID BETHKE, CFA co-manage the Balanced Income
Fund - Ms. Zentmyer since its inception in December 1997, and Mr. Bethke since
February, 2000. Ms. Zentmyer has been with FIRMCO and its affiliates since 1982
and has 21 years of investment management experience. Mr. Bethke has been with
FIRMCO and its affiliates since 1987 and has 19 years of investment management
experience.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED
INCOME LIPPER
FUND- BALANCED S&P 500
INSTITUTIONAL FUND INDEX<F3> STOCK INDEX<F4>
12/97 10,000 10,000 10,000
10/98 11,270 10,854 11,659
10/99 11,854 12,217 13,180
10/00 13,062 13,180 15,544
This chart assumes an initial investment of $10,000 made on 12/1/97 (inception).
Per form ance reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced. Performance is shown for Institutional shares,
which have lower expenses than Series A or Series B shares. If those fees and
expenses were reflected in the chart above, total return would have been
reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past perform ance is not predictive of future performance.
Investment return and principal value will fluc tuate, so that your shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
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1 Year Since Inception
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<S> <C> <C>
BALANCED INCOME FUND - INSTITUTIONAL 9.0 9.6 (12/1/97)
BALANCED INCOME FUND - A - NO LOAD 8.7 9.3 (12/1/97)
BALANCED INCOME FUND - A - LOAD<F1> 2.7 7.2 (12/1/97)
BALANCED INCOME FUND - B - NO LOAD 8.1 6.0 (3/1/99)
BALANCED INCOME FUND - B - LOAD<F2> 3.1 3.7 (3/1/99)
LIPPER BALANCED FUND INDEX<F3> 7.9 9.9 (12/1/97)
S&P 500 STOCK INDEX<F4> 6.1 16.3 (12/1/97)
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</TABLE>
A= Series A (Retail shares)
B= Series B (Retail shares)
<F1> Reflects maximum sales charge of 5.50%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The Lipper Balanced Fund Index is composed of the 30 largest mutual
funds whose primary objective is to conserve principal by maintaining
a balanced portfolio of stocks and bonds.
<F4> The S&P500 Stock Index is an index of an unmanaged group of 500 selected
common stocks, most of which are listed on the New York Stock Exchange.
The Index is heavily weighted toward stocks with large market
capitalizations and represents approximately two-thirds of the total
market value of all domestic common stocks.
The Index figures do not reflect any fees or expenses. An investment cannot be
made directly in an index.
Series A shares have a 5.50% maximum sales load and are subject to an annual
0.25% service organization fee. The load performance for the Series A shares has
been restated to reflect the impact of the current sales charge. Series B shares
have a 5.00% maximum deferred sales charge and are subject to an annual 0.25%
service organization fee and an annual 0.75% 12b-1 fee. Performance reflects fee
waivers in effect. In the absence of fee waivers, total return would be reduced.
TOP 5 EQUITY HOLDINGS 10/31/00
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VERIZON COMMUNICATIONS 1.3%
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CITIGROUP INC. 1.2%
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MICROSOFT CORPORATION 1.2%
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BANK OF NEW YORK COMPANY, INC. 1.2%
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MCGRAW-HILL, INC. 1.1%
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Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/00
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$95,120,190
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<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED GROWTH FUND
STRATEGY
Firstar Balanced Growth Fund seeks to achieve a balance of capital appreciation
and current income with relatively low volatility of capital. The Fund pursues
its objective by investing principally in a diversified portfolio of
fixed-income and equity securities.
INVESTMENT REVIEW
In the twelve month period ended October 31, 2000, we are pleased to report
Firstar Balanced Growth Fund outperformed the S&P 500 Stock Index and the Lipper
Balanced Fund Index. The Fund's return for the period was +19.9% (Institutional
shares), while the S&P 500 Stock Index earned +6.1% and the Lipper Balanced Fund
Index earned +7.9%. As of October 31, 2000, the weighted average market
capitalization of the equity holdings of the Fund was $61.4 billion. The
fixed-income securities within the portfolio had an average maturity of 10.9
years, duration of 5.4 years, and a yield to maturity of 7.3%. The asset
allocation on October 31, 2000 was 59% in stocks, 34% in bonds, and 7% in money
markets. As mentioned above, the Fund's return during this reporting period was
more than double that of the S&P 500 Stock Index and the Lipper Balanced Fund
Index. This relative return is a tribute to the entire Firstar investment team
of analysts and portfolio managers, as this Fund is a compilation of the efforts
of most of our investment professionals.
The stock portion of the portfolio performed well during the fiscal year, as
small- and medium-sized companies emerged from a multi-year period of lagging
performance. Firstar Balanced Growth Fund invests in all capitalization ranges,
and is broadly diversified with over 300 companies. With 10% of the portfolio in
mid-cap stocks, 7% in small-cap stocks, and the balance of equities in large-cap
stocks, the Fund has a larger commitment in smaller companies than the typical
balanced fund. Further, each segment of small-, medium-, and large-sized
companies performed better than their underlying index. Technology was the
largest individual sector during the year, but the Fund also maintained large
positions in healthcare, finance, and consumer stocks. While energy was not a
large position, our commitment to natural gas has been well rewarded. We believe
that by owning those companies that have the strongest earnings prospects within
most market sectors, the Fund has the best opportunity for good relative
performance compared with major indices.
We believe this also tends to reduce the volatility of the Fund compared with
portfolios where major shifts between sectors are normal.
Stock selection was generally very good throughout the year. While volatility
was extreme on a daily basis and sector rotation was also dramatic, the Fund's
equity positions fared better than their S&P sectors. The last six months
of the fiscal year were notable for the collapse of technology stocks, lead by
the dot-com casualties of numerous names. Firstar Balanced Growth Fund had no
exposure to these companies, instead focusing on those companies building the
Internet (EMC, PMC-Sierra and Network Appliance were big winners) and service
companies with more predictable sales and earnings streams. Most equity gains
came from more mundane holdings such as energy broker Enron, gas producer
EOG, custody bank State Street, or food retailer Safeway. This
diversification has offset technology losses during the last half of the fiscal
year. For the full year, our technology positions had much better performance
than the underlying index.
The fixed-income portion of the portfolio both reduced equity volatility and had
better performance than the S&P 500 Stock Index for the full fiscal year. Bonds
had to contend with rising interest rates during the first several months of
fiscal 2000, and then rising credit spreads between Treasury debt and most other
fixed-income securities. The last year is a testament to the Firstar risk averse
fixed-income approach. By not investing the portfolio around anticipated
interest rate movements, the "whipsaw" of rate changes did not adversely affect
the Fund. Further, the Fund's emphasis on shorter-term corporate debt and longer
maturity Treasuries avoided the worst of the widening of spreads. The bond
portion of the port folio again performed better than the Lehman Brothers U.S.
Government/Credit Bond Index, and was a major contributor to the good relative
results.
LOOKING AHEAD - THE FORECAST
We view the new fiscal year with enthusiasm. The excesses of the technology
sector are collapsing, while tighter credit and higher energy costs are reducing
inflationary expectations. Valuations on small- and medium-sized companies are
attractive and their relative performance has improved. Spreads on corporate
debt are wide and attractive. In short, we see multiple opportunities for
investment and the prospect of favorable central bank movements as the economy
slows. We believe any reduction in interest rates by the Federal Reserve will be
greeted well by stock investors and corporate bond buyers.
PORTFOLIO MANAGER PROFILE
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WALTER DEWEY, CFA, and GEORGE SCHUPP, CFA co-manage the Balanced Growth Fund -
Mr. Dewey since November, 1999 and Mr. Schupp since February, 2000. Mr. Dewey
has been with FIRMCO and its affiliates since 1986 and has 16 years of
investment management experience. Mr. Schupp has been with FIRMCO and its
affiliates since 1983 and has 24 years of investment management experience.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED LIPPER S&P
GROWTH FUND- BALANCED 500
INSTITUTIONAL FUND INDEX <F3> STOCK INDEX <F4>
3/92 10,000 10,000 10,000
10/92 10,372 10,481 10,548
10/93 11,771 12,167 12,093
10/94 11,662 12,093 12,593
10/95 13,969 14,220 15,923
10/96 15,724 16,281 19,760
10/97 18,615 19,553 26,106
10/98 20,260 21,657 31,846
10/99 21,449 24,377 40,021
10/00 25,725 26,298 42,458
This chart assumes an initial investment of $10,000 made on 3/30/92 (inception).
Per form ance reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced. Performance is shown for Institutional shares,
which have lower expenses than Series A or Series B shares. If those fees and
expenses were reflected in the chart above, total return would have been
reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past perform ance is not predictive of future performance.
Investment return and principal value will fluc tuate, so that your shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years 5 Years Since Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BALANCED GROWTH FUND - INSTITUTIONAL 19.9 11.4 13.0 11.6 (3/30/92)
BALANCED GROWTH FUND - A - NO LOAD 19.5 11.1 12.7 11.4 (3/30/92)
BALANCED GROWTH FUND - A - LOAD<F1> 12.9 9.0 11.4 10.7 (3/30/92)
BALANCED GROWTH FUND - B - NO LOAD 18.8 -- -- 11.0 (3/1/99)
BALANCED GROWTH FUND - B - LOAD<F2> 13.8 -- -- 8.7 (3/1/99)
LIPPER BALANCED FUND INDEX<F3> 7.9 10.4 13.1 11.9 (3/30/92)
S&P 500 STOCK INDEX+ 6.1 17.6 21.7 18.3 (3/30/92)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A (retail class) B = Series B (retail class)
<F1> Reflects maximum sales charge of 5.50%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The Lipper Balanced Fund Index is composed of the 30 largest mutual
funds whose primary objective is to conserve principal by maintaining
a balanced portfolio of stocks and bonds.
<F4> The S&P500 Stock Index is an index of an unmanaged group of 500
selected common stocks, most of which are listed on the New York Stock
Exchange. The Index is heavily weighted toward stocks with large market
capitalizations and represents approximately two-thirds of the total
market value of all domestic common stocks.
The Index figures do not reflect any fees or expenses. An investment cannot be
made directly in an index.
Prior to January 10, 1995, the Fund offered to investors one series of shares
with neither a sales charge nor a service fee.
Effective at the close of business on January 9, 1995, Firstar Funds began to
offer Series A shares. Effective at the close of business on February 28, 1999,
Firstar Funds began to offer Series B shares. Series A shares have a 5.50%
maximum sales load and are subject to an annual 0.25% service organization fee.
The load performance for the Series A shares has been restated to reflect the
impact of the current sales charge. Series A performance prior to January 10,
1995, does not reflect the service organization fees. If service organization
fees had been reflected, performance would be reduced. Series B shares have a
5.00% maximum deferred sales charge and are subject to an annual 0.25% service
organization fee and an annual 0.75% 12b-1 fee. Performance for all share
classes reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced.
TOP 5 EQUITY HOLDINGS 10/31/00
--------------------------------------------------------------------------------
CISCO SYSTEMS, INC. 1.0%
--------------------------------------------------------------------------------
AMERICAN INTERNATIONAL GROUP, INC. 0.9%
--------------------------------------------------------------------------------
PFIZER, INC. 0.9%
--------------------------------------------------------------------------------
SAFEWAY, INC. 0.9%
--------------------------------------------------------------------------------
EMC CORPORATION 0.9%
--------------------------------------------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$219,780,784
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
GROWTH & INCOME FUND
STRATEGY
Firstar Growth & Income Fund seeks both reasonable income and long-term
capital appreciation. The Fund pursues its objective by investing in domestic
companies that have established dividend-paying histories, though the Fund may
invest in non-dividend paying securities provided not less than 80% of the net
assets of the Fund will be invested in dividend-paying securities.
MARKET CONDITIONS
The equity markets were extremely volatile during the twelve months ended
October 31, 2000 as traditional valuation and fundamental business analysis
replaced price-momentum as the winning stock market strategy. Momentum investing
held center stage until the markets peaked in March, when value-oriented
strategies began to significantly outperform the major market indexes. The
Firstar Growth & Income Fund, with its focus on fundamental research and
traditional valuation methodologies performed well in this environment. Led by a
strong +70% advance in natural gas stocks, the utilities sector was the Standard
& Poor's (S&P) 500 Index's best performing sector, posting a +40% return for the
year. Although the healthcare (+16%), technology (+17%), energy (+16%) and
financial (+14%) sectors each posted a mid-teens gain for the year, the
similarity in performance among these groups masks the rotational nature of the
market. The technology sector, for example, declined -18% in the second half of
the year after advancing +43% in the first six months. Meanwhile, the financial
sector gained +24% in the second half after it fell -8% in the first six months
of the Fund's fiscal year. The communication services sector, adversely affected
by a -55% decline in the long distance telephone service stocks, was the S&P 500
Stock Index's worst performing sector, dropping -20% during the year.
INVESTMENT REVIEW
In the twelve month period ended October 31, 2000, we are pleased to report
that the Fund outperformed both the S&P 500 Stock Index and the Custom Index,
a custom benchmark discussed below. The Fund's return was 12.8%
(Institutional shares) while the S&P 500 Stock Index and the Customer Index
earned 6.1% and 7.9%, respectively.
The superior performance of the Growth and Income Fund is attributable to two
factors. First, our decision to overweight the healthcare sector and under
weight the telecommunication services sector. And second, good stock selection
within virtually every sector.
Currently, the Growth & Income Fund is overweight in the healthcare and
consumer staple sectors and underweight in the technology and telecommunication
services sectors. The Fund's sector weightings are compared to a custom
benchmark. The custom benchmark is an equally weighted combination of the S&P
500 Stock Index and the S&P Barra Value Index. This combination results in a
more evenly distributed sector allocation versus the S&P 500 Stock Index alone.
The financial and technology sectors account for approximately 20% each of the
custom benchmark while the capital goods, telecommunication services, consumer
cyclical, consumer staple, energy and healthcare sectors each account for about
10% each of the benchmark. Our decision to overweight the consumer staple and
healthcare sectors is based on our anticipation of improvement in the relative
earnings growth rates of these sectors.
The Growth & Income Fund remains focused on companies able to generate
positive unit growth in an increasingly competitive environment. Utility
holdings Duke Energy Corporation (0.7%) and Excelon Corporation (0.5%) are
positioned to benefit from the trend toward increased deregulation of the power
market. Duke has capitalized on this trend by emphasizing its energy trading and
marketing operations while Excelon has significant power generating
capabilities. We believe Robert Half International (1.0%) and Manpower
(1.0%) are leading beneficiaries of the global trend toward labor outsourcing, a
common strategy in the ongoing effort to increase productivity, lower costs
and expand market share. Pharmaceutical manufacturer Bristol-Myers Squibb
(1.5%) is expected to benefit from strong demographic trends and an enhanced
political outlook, as well as a new focused strategy of divesting non-core
pharmaceutical assets and a potential blockbuster product launch in 2001 (VanLev
for hypertension).
LOOKING AHEAD - THE FORECAST
Looking ahead, we expect extreme stock price volatility and vicious sector
rotation to continue as economic growth slows and corporate earnings
expectations are adjusted to reflect the slower growth environment. However,
slower economic growth means interest rates and inflation expectations are
likely to decline, creating a very favorable backdrop for the stock market. We
believe a diversified portfolio strategy emphasizing companies with strong
fundamentals and consistent, predictable earnings growth is the key to success.
PORTFOLIO MANAGER PROFILE
--------------------------------------------------------------------------------
MARIAN ZENTMYER, CFA and LEON DODGE, CFA co-manage Firstar Growth & Income
Fund - Ms. Zentmyer since February, 1993 and Mr. Dodge since September, 2000.
Ms. Zentmyer has been with FIRMCO and its affiliates since 1982 and has 21 years
of investment management experience. Mr. Dodge has been with FIRMCO since
September, 2000 and has 23 years of investment management experience.
<PAGE>
(LOGO) FIRSTAR FUNDS
GROWTH
& INCOME S&P
FUND- 500 CUSTOM
INSTITUTIONAL STOCK INDEX<F3> INDEX S&P
12/89 10,000 10,000 10,000
10/90 9,304 8,855 9,565
10/91 11,688 11,821 11,819
10/92 12,368 12,999 12,986
10/93 13,596 14,941 14,666
10/94 13,846 15,519 15,236
10/95 17,307 19,622 19,782
10/96 21,963 24,351 23,986
10/97 28,734 32,170 31,110
10/98 34,008 39,244 40,126
10/99 38,129 49,318 50,181
10/00 42,991 52,322 44,405
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Per formance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Performance is shown for Institutional
shares, which have lower expenses than Series A or Series B shares. If those
fees and expenses were reflected in the chart above, total return would have
been reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past performance is not predictive of future performance.
Investment return and principal value will fluctuate, so that your shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
1 Year 5 Years 10 Years Since Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GROWTH & INCOME FUND - INSTITUTIONAL 12.8 20.0 16.5 14.4 (12/29/89)
GROWTH & INCOME FUND - A - NO LOAD 12.5 19.7 16.4 14.2 (12/29/89)
GROWTH & INCOME FUND - A - LOAD<F1> 6.4 18.3 15.7 13.6 (12/29/89)
GROWTH & INCOME FUND - B - NO LOAD 11.7 - - 8.9 (3/1/99)
GROWTH & INCOME FUND - B - LOAD<F2> 6.7 - - 6.6 (3/1/99)
S&P 500 Stock Index<F3> 6.1 21.7 19.4 16.5 (12/29/89)
Custom Index<F3> 7.9 20.2 18.7 14.7 (12/29/89)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A (retail class) B = Series B (retail class)
<F1> Reflects maximum sales charge of 5.50%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The S&P 500 Stock Index is an index of an unmanaged group of 500
selected common stocks, most of which are listed on the New York Stock
Exchange. The Index is heavily weighted toward stocks with large market
capitalizations and represents approx imately two-thirds of the total
market value of all domestic common stocks.The Custom Index is comprised
of 50% of returns of the S&P 500 Stock Index and 50% of returns of the S&P
BARRA Value Index. The S&P BARRA Value Index is an unmanaged market
capitalization weighted index consisting of approximately 50% of the
stocks in the S&P 500 Stock Index with low price-to-book ratios. The Index
figures do not reflect any fees or expenses. Investors cannot invest
directly in the Index.
The Index figures do not reflect any fees or expenses. An investment cannot be
made directly in an index.
Prior to January 10, 1995, the Fund offered to investors one series of shares
with neither a sales charge nor a service fee.
Effective at the close of business on January 9, 1995, Firstar Funds began to
offer SeriesA shares. Effective at the close of business on February 28, 1999,
Firstar Funds began to offer Series B shares. Series A shares have a 5.50% maxi
mum sales load and are subject to an annual 0.25% service organiza tion fee. The
load performance for the Series A shares has been restated to reflect the impact
of the current sales charge. Series A performance prior to January 10, 1995,
does not reflect the service organization fees. If service organization fees had
been reflected, performance would be reduced. Series B shares have a 5.00%
maximum deferred sales charge and are subject to an annual 0.25% service
organization fee and an annual 0.75% 12b-1 fee. Performance for all share
classes reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced.
TOP 5 EQUITY HOLDINGS 10/31/00
--------------------------------------------------------------------------------
VERIZON COMMUNICATIONS 2.5%
--------------------------------------------------------------------------------
ALLIANCE CAPITAL MANAGEMENT L.P. 2.3%
--------------------------------------------------------------------------------
CITIGROUP INC. 2.2%
--------------------------------------------------------------------------------
BANK OF NEW YORK COMPANY, INC. 2.2%
--------------------------------------------------------------------------------
MICROSOFT CORPORATION 2.2%
--------------------------------------------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$711,595,336
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
EQUITY INCOME FUND
STRATEGY
Firstar Equity Income Fund seeks to provide an above-average level of income
consistent with long-term capital appreciation. The Fund pursues its objective
by investing in the common stocks of value companies with large market
capitalizations.
MARKET CONDITIONS
For the twelve-month period ended October 31, 2000 the financial markets
continued to be volatile. Large intra-day price swings, active rotation among
sectors, and rising interest rates for most of the year made it a difficult
environment for common stocks.
Inflation remained under control, unemployment was at historic lows and energy
prices soared to record levels. As the year ended, the focus turned toward the
election of a new President and how that individual would impact the financial
markets.
INVESTMENT REVIEW
In this environment, the Fund's return was 0.6% (Institutional shares) for the
twelve-month period ended October 31, 2000. This trails the 5.5% return for the
Russell 1000 Value Index and the 9.7% return for the S&P BARRA Value Index. The
fund maintained its position in most of the bank and financial services stocks
because they offered the best values in the market. Solid performance was seen
out of our energy sector and even the technology and utility sectors provided
selected winners.
LOOKING AHEAD - THE FORECAST
As we enter a new year, we believe declining inflation, lower interest rates,
and continued, albeit slower, economic growth should translate to higher stock
prices as we enter 2001. A friendly Federal Reserve would be positive for
financial stocks as investors once again focus on quality, fundamentals and
valuations. Consumer stocks would benefit as well.
Going forward, the Fund's focus will be to strive to produce returns that
compare favorably to the benchmark (S&P BARRA Value Index) and less on current
dividend yield.
PORTFOLIO MANAGER PROFILE
--------------------------------------------------------------------------------
JOSEPH P. BELEW manages the Equity Income Fund. Mr. Belew joined FIRMCO and its
affiliates in 1979 and has 21 years of investment management experience. He has
managed the Predecessor Mercantile Equity Income Portfolio since October, 2000.
<PAGE>
(LOGO) FIRSTAR FUNDS
EQUITY INCOME FUND- RUSSELL 1000 S&P 500 BARRA
INSTITUTIONAL VALUE INDEX<F3> VALUE<F3>
2/97 10,000 10,000 10,000
11/97 11,763 12,846 12,068
11/98 13,175 14,209 13,666
11/99 13,205 15,696 15,368
10/00 13,727 16,693 16,956
This chart assumes an initial investment of $10,000 made on 2/27/97 (inception).
Per formance reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced. Performance is shown for Institutional shares,
which have lower expenses than Series A, Series Y or Series B shares. If those
fees and expenses were reflected in the chart above, total return would have
been reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past performance is not predictive of future performance.
Investment return and principal value will fluctuate, so that your shares,
when redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years Since Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
EQUITY INCOME FUND - INSTITUTIONAL 0.6 6.5 9.0 (2/27/97)
EQUITY INCOME FUND - Y 0.5 6.3 8.8 (2/27/97)
EQUITY INCOME FUND - A - NO LOAD 0.5 6.2 8.7 (2/27/97)
EQUITY INCOME FUND - A - LOAD<F1> (5.0) 4.2 7.0 (2/27/97)
EQUITY INCOME FUND - B - NO LOAD (0.2) 5.5 7.9 (2/27/97)
EQUITY INCOME FUND - B - LOAD<F2> (5.2) 4.6 7.2 (2/27/97)
RUSSELL 1000 VALUE INDEX<F3> 5.5 12.2 15.0 (2/28/97)
S&P BARRA VALUE INDEX<F3> 9.7 13.4 15.5 (2/28/97)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A (retail class) B = Series B (retail class) Y = Series Y
<F1> Reflects maximum sales charge of 5.50%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The Russell 1000 Value Index is a widely-recognized unmanaged index
that measures the performance of the stocks in the Russell 1000 Index
with less than average growth orientation. Companies in this Index
generally have low price to book and price/earnings ratios, higher
dividend yields and lower forecasted growth values. The Russell 1000
Index consists of the 1,000 largest U.S. companies as ranked by total
market capitalization. The comparative index for the Equity Income Fund
has been changed from the Russell 1000 Value Index to the S&P BARRA Value
Index. The S&P BARRA Value Index, an unmanaged capitalization weighted
index, is a more widely-recognized index which represents the value
components of the market capitalizations reflected in the Fund.
The Index figures do not reflect any fees or expenses. An investment cannot be
made directly in an Index.
The Fund began operations on February 27, 1997 as the Mercantile Equity Income
Portfolio of Mercantile Mutual Funds, Inc. On December 11, 2000, the Mercantile
Equity Income Portfolio was reorganized into the Firstar Equity Income Fund. The
returns shown represent the historical returns of the Mercantile Equity Income
Portfolio.
Series A shares have a 5.50% maximum sales load and are subject to
an annual 0.25% service organiza tion fee. The load performance for the Series A
shares has been restated to reflect the impact of the current sales charge.
Series B shares have a 5.00% maximum deferred sales charge and are subject to an
annual 0.25% service organization fee and an annual 0.75% 12b-1 fee. Series Y
shares are subject to an annual 0.25% service organization fee. Performance for
all share classes reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced.
TOP 5 EQUITY HOLDINGS 10/31/00
--------------------------------------------------------------------------------
DUKE ENERGY CORPORATION 3.8%
--------------------------------------------------------------------------------
ABBOTT LABORATORIES 3.5%
--------------------------------------------------------------------------------
MELLON FINANCIAL CORPORATION 3.4%
--------------------------------------------------------------------------------
SUNGARD DATA SYSTEMS INC. 3.3%
--------------------------------------------------------------------------------
MBNA CORPORATION 3.2%
--------------------------------------------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$53,955,251
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
RELATIVE VALUE FUND
STRATEGY
Firstar Relative Value Fund seeks to obtain the highest total return from a
combination of income and capital appreciation. The Fund pursues its objective
by investing primarily in common stocks that the portfolio manager believes
represent the best values within each industry sector.
MARKET CONDITIONS
For the twelve-month period ended October 31, 2000, the financial markets
continued to be volatile. Large intra-day price swings, active rotation among
sectors, and rising interest rates for most of the year made it a difficult
environment for common stocks.
Inflation remained under control, unemployment was at historic lows and
energy prices soared to record levels. As the year ended, the focus turned
toward the election of a new President and how that individual would impact
the financial markets.
INVESTMENT REVIEW
In this environment, Firstar Relative Value Fund returned 1.3% (Institutional
shares) for the twelve-month period ended October 31, 2000. This trails the 6.1%
return for the S&P 500 Stock Index and the 9.7% return for the S&P BARRA Value
Index. The Fund remained disciplined in its "value" investing approach by
staying neutral to large sectors such as technology and financial stocks and
underweighted in underperforming sectors such as consumer cyclicals and basic
materials. Positive relative performance was seen in the energy, technology and
utility sectors. The Fund remained overweighted in the healthcare sector. During
the course of the year, we maintained a small cash position as a defensive
measure.
LOOKING AHEAD - THE FORECAST
As we enter a new year, we believe declining inflation, lower interest rates,
and continued, albeit slower, economic growth should translate to higher stock
prices as we enter 2001. A friendly Federal Reserve would be positive for
financial stocks as investors once again focus on quality, fundamentals and
valuations. Consumer stocks would also benefit.
PORTFOLIO MANAGER PROFILE
--------------------------------------------------------------------------------
JOSEPH P. BELEW manages the Relative Value Fund. Mr. Belew joined FIRMCO and its
affiliates in 1979 and has 21 years of investment management experience. He has
managed the Predecessor Firstar Stellar Relative Value Fund since its inception
in June 1991.
<PAGE>
(LOGO) FIRSTAR FUNDS
RELATIVE S&P RELATIVE LIPPER GROWTH AND S&P BARRA
VALUE- 500 VALUE- INCOME FUND VALUE
A-LOAD INDEX A-NO LOAD INDEX<F5> INDEX<F4>
6/91 $9,550 $10,000 $10,000 $10,000 $10,000
11/91 9,138 9,818 9,569 9,818 9,502
11/92 10,545 11,631 11,041 11,553 11,192
11/93 12,070 12,806 12,639 13,138 13,290
11/94 11,884 12,883 12,444 13,265 13,267
11/95 16,055 17,644 16,811 17,279 17,903
11/96 20,689 22,561 21,662 21,407 22,821
11/97 26,417 28,995 27,661 26,468 28,544
11/98 30,822 35,855 32,273 29,541 32,323
11/99 34,488 43,351 36,109 32,989 36,351
10/00 34,464 45,074 36,082 34,971 40,105
This chart assumes an initial investment of $10,000 made on 6/4/91 (inception).
Per formance reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced. Returns shown include the reinvestment of all
dividends and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years 5 Years Since Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
RELATIVE VALUE FUND - INSTITUTIONAL 1.3 11.2 -- 10.2 (8/18/97)
RELATIVE VALUE FUND - A - NO LOAD 1.0 10.9 17.3 14.6 (6/4/91)
RELATIVE VALUE FUND - A - LOAD<F1> (4.5) 8.8 16.0 14.0 (6/4/91)
RELATIVE VALUE FUND - B - NO LOAD 0.7 - - 4.9 (3/31/98)
RELATIVE VALUE FUND - B - LOAD<F2> (4.3) - - 3.8 (3/31/98)
S&P 500 STOCK INDEX<F3> 6.1 17.6 21.7 17.3 (6/4/91)
S&P BARRA VALUE INDEX<F4> 9.7 13.4 18.7 15.9 (5/31/91)
LIPPER GROWTH & Income Fund Index<F5> 6.9 10.7 16.1 14.2 (5/31/91)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A (retail class) B = Series B (retail class)
<F1> Reflects maximum sales charge of 5.50%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The S&P 500 Stock Index is an unmanaged group of 500 selected common
stocks, most of which are listed on the New York Stock Exchange.
The Index is heavily weighted toward stocks with large market
capitalizations and represents approximately two-thirds of the total market
value of all domestic common stocks.
<F4> The S&P BARRA Value Index, an unmanaged market capitalization weighted
index, is replacing the S&P 500 Stock Index as the Fund's performance
benchmark. The S&P BARRA Value Index is composed of the stocks in the S&P
500 Stock Index with low price-to-book ratios. This benchmark is more
closely aligned to the management of the Relative Value Fund, which seeks
to obtain the highest total return from a combination of income and
capital appreciation by investing primarily in stocks that represent the
best values.
<F5> The Lipper Growth & Income Fund Index is composed of the 30 largest mutual
funds whose primary objective combines growth-of-earnings and dividend
income.
The Index figures do not represent any fees or expenses. An investment cannot be
made directly in an index.
The Fund began operations on June 4, 1991 as the Firstar Stellar Relative Value
Fund of Firstar Stellar Funds. On December 11, 2000, the Firstar Stellar
Relative Value Fund was reorganized into the Firstar Relative Value Fund.
Series A shares have a 5.50% maximum sales load and are subject to an annual
0.25% service organization fee. The load performance for the Series A shares has
been restated to reflect the impact of the current sales charge. Series B shares
have a 5.00% maximum deferred sales charge and are subject to an annual 0.25%
service organization fee and an annual 0.75% 12b-1 fee. Performance for all
share classes reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced.
TOP 5 EQUITY HOLDINGS 10/31/00
--------------------------------------------------------------------------------
INTERNATIONAL BUSINESS MACHINES CORPORATION 7.1%
--------------------------------------------------------------------------------
INTEL CORPORATION 6.8%
--------------------------------------------------------------------------------
GENERAL ELECTRIC COMPANY 4.7%
--------------------------------------------------------------------------------
CITIGROUP INC. 4.3%
--------------------------------------------------------------------------------
BROADWING INC. 4.3%
--------------------------------------------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$526,100,590
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
EQUITY INDEX FUND
STRATEGY
Firstar Equity Index Fund seeks returns, before Fund expenses, comparable to the
price and yield performance of publicly traded common stocks in the aggregate,
as represented by the S&P 500 Stock Index. The Fund does not use traditional
methods of financial and market analysis when making purchase and sale
decisions, rather, the Fund invests primarily in common stocks that comprise the
S&P 500 Stock Index in proportion to their relative capitalization and sector
weightings.
INVESTMENT REVIEW
During the twelve month period ended October 31, 2000, Firstar Equity Index Fund
returned 5.9% (Institutional shares) which is comparable to the S&P 500 Stock
Index's return of 6.1% during the same period.
We believe that by applying a capitalization weighting and sector balancing
technique that matches the structure of the S&P 500 Stock Index, as well as
using S&P 500 Stock Index futures contracts to equitize the portfolio's cash
position, the Fund should reasonably track the performance of its benchmark.
<PAGE>
(LOGO) FIRSTAR FUNDS
EQUITY INDEX- S&P 500
INSTITUTIONAL STOCK INDEX<F3>
12/89 $10,000 $10,000
12/90 8,854 8,855
12/91 11,767 11,821
12/92 12,869 12,999
12/93 14,644 14,941
12/94 15,157 15,519
12/95 19,101 19,622
12/96 23,624 24,351
12/97 31,037 32,170
12/98 37,843 39,244
12/99 47,424 49,318
10/00 50,213 52,322
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Per formance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Performance is shown for Institutional
shares, which have lower expenses than Series A or Series B shares. If those
fees and expenses were reflected in the chart above, total return would have
been reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past performance is not predictive of future performance.
Investment return and principal value will fluctuate, so that your shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
1 Year 5 Years 10 Years Since Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EQUITY INDEX FUND - INSTITUTIONAL 5.9 21.3 18.9 16.1 (12/29/89)
EQUITY INDEX FUND - A - NO LOAD 5.6 21.0 18.8 15.9 (12/29/89)
EQUITY INDEX FUND - A - LOAD<F1> (0.2) 19.7 18.1 15.3 (12/29/89)
EQUITY INDEX FUND - B - NO LOAD 4.8 - - 8.8 (3/1/99)
EQUITY INDEX FUND - B - LOAD<F2> (0.2) - - 6.5 (3/1/99)
S&P 500 STOCK INDEX<F3> 6.1 21.7 19.4 16.5 (12/29/89)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A (retail class)
B = Series B (retail class)
<F1> Reflects maximum sales charge of 5.50%.
<F2> Reflects maximum applicable
deferred sales charge.
<F3> The S&P500 Stock Index is an index of an unmanaged group of 500
selected common stocks, most of which are listed on the New York Stock
Exchange. The Index is heavily weighted toward stocks with large market
capitalizations and represents approximately two-thirds of the total
market value of all domestic common stocks.
"Standard & Poor's(R)," "S&P(R)," "S&P 500(R)," "Standard &Poor's 500," and
"500" are trademarks of the McGraw Hill Companies, Inc. and have been licensed
for use by Firstar Funds. The Equity Index Fund is not sponsored, endorsed, sold
or promoted by Standard & Poor's and Standard & Poor's makes no representation
regarding the advisability of investing in the Equity Index Fund.
The Index figures do not reflect any fees or expenses. An investment
cannot be made directly in an index.
Prior to January 10, 1995, the Fund offered to investors one series of shares
with neither a sales charge nor a service fee. Effective at the close of
business on January 9, 1995, Firstar Funds began to offer Series A shares.
Effective at the close of business on February 28, 1999, Firstar Funds
began to offer Series B shares. Series A shares have a 5.50% maximum sales load
and are subject to an annual 0.25% service organization fee. The load
performance for the Series A shares has been restated to reflect the impact of
the current sales charge. Series A performance prior to January 10, 1995, does
not reflect the service organization fees. If service organization fees had been
reflected, performance would be reduced. Series B shares have a 5.00% maximum
deferred sales charge and are subject to an annual 0.25% service organization
fee and an annual 0.75% 12b-1 fee. Performance for all share classes reflects
fee waivers in effect. In the absence of fee waivers, total return would be
reduced.
TOP 5 EQUITY HOLDINGS 10/31/00
--------------------------------------------------------------------------------
GENERAL ELECTRIC COMPANY 4.2%
--------------------------------------------------------------------------------
CISCO SYSTEMS, INC. 2.9%
--------------------------------------------------------------------------------
MICROSOFT CORPORATION 2.8%
--------------------------------------------------------------------------------
EXXON MOBIL CORPORATION 2.4%
--------------------------------------------------------------------------------
INTEL CORPORATION 2.4%
--------------------------------------------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$782,251,210
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
LARGE CAP CORE EQUITY FUND
STRATEGY
Firstar Large Cap Core Equity Fund seeks capital appreciation through investment
in securities of large-sized companies with market capitalizations greater than
$3 billion.
MARKET CONDITIONS
The 2000 fiscal year has been dominated by the performance of technology
companies and their price relationship with other sectors of the stock market.
Between October 31, 1999 and March 9, 2000, the tech-dominated NASDAQ rose an
astonishing +70.1%. Equally numbing was the extraordinary decline of -39.1%
between March 9 and October 12. For the twelve months, the NASDAQ return of
+13.6% was not appreciably different than the +11.2% return of the S&P 500 Stock
Index technology sector and the S&P 500 Stock Index return of 6.1%. But given
the volatile price swings, the opportunity for good and bad outcomes by
investing in technology was magnified. We are pleased with the Fund performance
in technology as our "dominator and bottleneck" strategy was rewarded this year.
"Dominator" companies are those that have leading share in rapidly growing
areas. Holdings in this class included Corning (+192% return), EMC (+144%
return), Sun MicroSystems (+110% return), Nortel (+46% return), and Cisco
Systems (+46% return). "Bottleneck" companies are those that provide solutions
to technology roadblocks. The current "roadblock" is the need for increased
Internet speed and user access to that speed. Holdings that have been strong
performers here were Juniper Networks (+110% return), PMC Sierra (+116% return),
Network Appliance (+111% return), Ciena (+66% return), and Broadcom (+64%
return). The strong relative results for the Fund are a direct result of
execution in technology investing, and the technical contributions of analysts
Jane Snorek and Randy Hare.
While technology was the single largest commitment throughout the year, finance,
healthcare, and consumer stocks were also large positions within the Fund.
Consumer stocks that helped fund performance were the staple companies Cardinal
Health (+118% return), Walgreen (+81% return), and Safeway (+55% return). Major
drug companies were only average performers for the full year, but were
exceptional holdings during the collapse of technology stocks. Financial
companies had a similar positive diversification impact. Specifically, during
the March 9-October 12-technology plunge, the S&P 500 Stock Index financial
sector returned 26.7% and the S&P Health Care Sector returned 27.3%. The Fund's
large commitment to these areas "cushioned" the technology impact.
INVESTMENT REVIEW
During the twelve months ended October 31, 2000, the Portfolio returned 20.2%
(Institutional shares), well ahead of the S&P 500 Stock Index return of 6.1%. As
of October 31, 2000, the portfolio had a weighted average market capitalization
of $81.9 billion, which compares with the fund's primary benchmark, the S&P 500
Stock Index which had a weighted average market capitalization of $130.6
billion.
The stocks that hurt the Fund's performance were primarily those that suffered
lowered earnings growth than investors expected. Retailing companies were the
main victims here as consumers slowed their purchasing activity. Communication
stocks were also poor performers as price competition in long distance severely
reduced earnings growth. Further, a slowing of wireless subscriber growth hurt
Fund holdings in companies Nextel and Alltel. As these areas are currently among
investor's least favorite, we are looking at new opportunities at attractive
prices.
LOOKING AHEAD - THE FORECAST
As the new fiscal year begins, technology companies are continuing to fall.
Earnings growth is moderating as the economy slows, and stock prices suffer as
investor expectations are revised downward. The extreme stock price volatility
has created an environment where "research conviction" is imperative in security
selection. Historically, Firstar Large Cap Core Equity Fund has emphasized
higher quality holdings (those with more predictable earnings and strong balance
sheets). This has served the Fund well during this period of uncertainty. We are
also believers in buying what is "cheap" and selling what is "dear". Currently,
the expensive market areas are the defensive healthcare and finance areas, while
technology is presenting valuations that are more compelling than just a few
months ago. By keeping sector allocations similar to the S&P 500 Stock Index, we
are confident that security selection based on superior earnings growth will
result in competitive investment returns.
PORTFOLIO MANAGER PROFILE
--------------------------------------------------------------------------------
WALTER DEWEY, CFA and JANE SNOREK, CFA co-manage the Large Cap Core Equity Fund
- Mr. Dewey since July, 1997, and Ms. Snorek since September, 2000. Mr. Dewey
has been with FIRMCO and its affiliates since 1986 and has 15 years of
investment management experience. Ms. Snorek has been with FIRMCO and its
affiliates since 1999 and has nine years of investment management experience.
<PAGE>
(LOGO) FIRSTAR FUNDS
LARGE CAP S&P
CORE EQUITY- 500
INSTITUTIONAL STOCK INDEX<F3>
12/92 $10,000 $10,000
10/93 10,753 10,981
10/94 10,813 11,406
10/95 12,927 14,422
10/95 15,360 17,898
10/96 18,671 23,645
10/97 22,199 28,844
10/98 26,236 36,248
10/99 31,547 38,456
10/00
This chart assumes an initial investment of $10,000 made on 12/29/92
(inception). Per formance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Performance is shown for Institutional
shares, which have lower expenses than Series A or Series B shares. If those
fees and expenses were reflected in the chart above, total return would have
been reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past performance is not predictive of future performance.
Investment return and principal value will fluctuate, so that your shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years 5 Years Since Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LARGE CAP CORE EQUITY FUND - INSTITUTIONAL 20.2 19.1 19.5 15.8 (12/29/92)
LARGE CAP CORE EQUITY FUND - A - NO LOAD 19.9 18.8 19.2 15.6 (12/29/92)
LARGE CAP CORE EQUITY FUND - A - LOAD<F1> 13.3 16.6 17.9 14.7 (12/29/92)
LARGE CAP CORE EQUITY FUND - B - NO LOAD 19.1 - - 12.5 (3/1/99)
LARGE CAP CORE EQUITY FUND - B - LOAD<F2> 14.1 - - 10.3 (3/1/99)
S&P 500 STOCK INDEX<F3> 6.1 17.6 21.7 18.7 (12/29/92)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A (retail class) B = Series B (retail class)
<F1> Reflects maximum sales charge of 5.50%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The S&P500 Stock Index is an index of an unmanaged group of 500
selected common stocks, most of which are listed on the New York Stock
Exchange. The Index is heavily weighted toward stocks with large market
capitalizations and represents approx i mately two-thirds of the total
market value of all domestic common stocks.
The Index figures do not reflect any fees or expenses. An investment cannot be
made directly in an index.
Prior to January 10, 1995, the Fund offered to investors one series of shares
with neither a sales charge nor a service fee.
Effective at the close of business on January 9, 1995, Firstar Funds began to
offer Series A shares. Effective at the close of business on February 28, 1999,
Firstar Funds began to offer Series B shares. Series A shares have a 5.50%
maximum sales load and are subject to an annual 0.25% service organization fee.
The load performance for the Series A shares has been restated to reflect the
impact of the current sales charge. Series A performance prior to January 10,
1995, does not reflect the service organization fees. If service organization
fees had been reflected, performance would be reduced. Series B shares have a
5.00% maximum deferred sales charge and are subject to an annual 0.25% service
organization fee and an annual 0.75% 12b-1 fee. Performance for all share
classes reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced.
TOP 5 EQUITY HOLDINGS 10/31/00
--------------------------------------------------------------------------------
CISCO SYSTEMS, INC. 2.1%
--------------------------------------------------------------------------------
AMERICAN INTERNATIONAL GROUP 2.0%
--------------------------------------------------------------------------------
PFIZER, INC. 2.0%
--------------------------------------------------------------------------------
SAFEWAY, INC. 1.9%
--------------------------------------------------------------------------------
NORTEL NETWORKS CORPORATION 1.9%
--------------------------------------------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$391,880,621
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
LARGE CAP GROWTH FUND
STRATEGY
Firstar Large Cap Growth Fund seeks to maximize capital appreciation. The Fund
pursues its objective by investing primarily in common stocks of large-sized
companies.
MARKET CONDITIONS
The market over the last twelve months has been extremely volatile. We
experienced a tremendous rally during the last two months of 1999, which then
continued into the first quarter of 2000. However, after that period the road
became very rocky.
The market was hindered by interest rate increases by the Fed, energy price
hikes along with the associated inflation fears, and generally weaker earnings
than investors expected, particularly in some technology companies. Furthermore,
the Fed had been very accommodative with money supply heading into Y2K but then
tightened quickly thereafter. These conditions typically are not favorable for
stock investors and this past year proved to be no exception to that rule.
With the economy undergoing these changes, confusion reigned in the stock
market, which led to high levels of volatility and dramatic rotation among
sectors. With signs of growth, we saw good periods for the technology sector,
but the moment weakness resurfaced, technology stocks sold off, and the money
flowed into areas such as financials and healthcare.
INVESTMENT REVIEW
In the twelve-month period ended October 31, 2000, we are pleased to report that
Firstar Large Cap Growth Fund outperformed both the S&P 500 Stock Index and the
S&P Barra Growth Index. The Fund's return was 13.2% (Institutional shares) while
the S&P 500 Stock Index and the S&P Barra Growth Index earned 6.1% and 2.1%,
respectively.
Our emphasis has continued to be on long-term investments where we feel we can
achieve above-average earnings growth. This continues to lead to relatively low
portfolio turnover. Over the past year, we have generally been overweight in
energy and finance. Both of these areas did very well from an absolute and
relative standpoint and helped overall performance. Additionally, while we were
not overweight in healthcare, we enjoyed very positive results. The most
difficult area of the market has been the technology sector. This sector has
really been tossed about as the earnings winds have shifted. While the overall
group struggled, we enjoyed good performance. We avoided the retail dot-com
companies and all of their inherent difficulties. Instead we concentrated on
industry leaders in the technology sectors which we believe are most likely to
continue outstanding growth. This discipline kept the Fund invested in more
stable companies.
Among the Fund's top-performing investments were Siebel Systems, a management
software firm; EMC, an information storage firm; Juniper, an internet router;
AIG, an insurance firm; Coastal, a natural gas company; Kohl's, a retailer and
Cardinal Health, a healthcare distribution firm.
LOOKING AHEAD - THE FORECAST
Our overall market outlook is positive. Stocks have come through a very rough
period over the past year. We believe many of the market forces will exert a
more positive influence on stock prices over the coming year.
We are certainly less confident that oil will be able to maintain an average
price above $30 per barrel. Therefore, we have begun and expect to continue to
reduce our energy weight. We feel very comfortable with the overall prospects
for healthcare and technology. While all boats will not rise together, we
believe that technology stocks are again poised to move higher. Our research
effort continues to focus on finding those companies that will be in the
forefront of the various technology segments and then reviewing them from a
valuation and portfolio mix standpoint. Our expectations that the Fed has
finished raising rates and may actually begin to ease money supply are a
positive for the market. We also believe an expansionary monetary policy will
help the financial groups. Lastly, the economy does appear to be slowing. This
gives us some cause for caution within the consumer and basic industry sectors.
PORTFOLIO MANAGER PROFILE
--------------------------------------------------------------------------------
DONALD L. KELLER and RANDY HARE co-manage Firstar Large Cap Growth Fund - Mr.
Keller since the inception of the Predecessor Firstar Stellar Growth Equity Fund
in October, 1994, and Mr. Hare since October, 2000. Mr. Keller has been with
FIRMCO and its affiliates since 1982 and has 18 years of investment management
experience. Mr. Hare has been with FIRMCO and its affiliates since 1998 and has
four years of investment management experience.
<PAGE>
(LOGO) FIRSTAR FUNDS
LARGE CAP GROWTH- S&P 500 S&P BARRA
B-NO LOAD<F2> INDEX GROWTH INDEX<F4>
12/94 $10,000 $10,000 $10,000
11/95 12,944 13,698 14,000
11/96 16,483 17,514 18,097
11/97 20,216 22,512 23,840
11/98 24,413 27,838 31,844
11/99 30,580 33,656 40,968
10/00 33,178 34,993 40,101
This chart assumes an initial investment of $10,000 made on 12/12/94
(inception). Per formance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years 5 Years Since Inception<F5>
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LARGE CAP GROWTH FUND - INSTITUTIONAL 13.2 19.3 - 18.6 (8/18/97)
LARGE CAP GROWTH FUND - A - NO LOAD - - - (3.8) (3/31/00)
LARGE CAP GROWTH FUND - A - LOAD<F1> - - - (9.1) (3/31/00)
LARGE CAP GROWTH FUND - B - NO LOAD 12.8 19.0 21.7 22.6 (12/12/94)
LARGE CAP GROWTH FUND - B - LOAD<F2> 7.8 18.3 21.5 22.5 (12/12/94)
S&P 500 STOCK INDEX<F3> 6.1 17.6 21.7 23.7 (12/12/94)
S&P BARRA GROWTH INDEX<F4> 2.1 21.0 24.1 26.6 (12/12/94)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A (retail class) B = Series B (retail class)
<F1> Reflects maximum sales charge of 5.50%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The S&P 500 Stock Index is an unmanaged group of 500 selected common
stocks, most of which are listed on the New York Stock Exchange. The
index is heavily weighted toward stocks with large market
capitalizations and represents approximately two-thirds of the total
market value of all domestic common stocks.
<F4> The S&P BARRA Growth Index, an unmanaged market capitalization weighted
index, is replacing the S&P 500 as the Fund's performance benchmark.
The S&P BARRA Growth Index is composed of the stocks in the S&P 500
with the highest valuations and, in the adviser's view, the greatest growth
opportunities. This benchmark is more closely aligned to the
management of the Large Cap Growth Fund, which seeks appreciation by
investing primarily in fast growing large cap securities.
<F5> Returns for less than one year are not annualized.
The Index figures do not reflect any fees or expenses. An investment cannot be
made directly in an index.
The Fund began operations on December 12, 1994 as the Firstar Stellar Growth
Equity Fund of Firstar Stellar Funds. On December 11, 2000, the Firstar Stellar
Growth Equity Fund was reorganized into with the Firstar Large Cap Growth Fund.
The returns shown represent the historical returns of the Firstar Stellar Growth
Equity Fund.
Series A shares have a 5.50% maximum sales load and are subject to an annual
0.25% service organization fee. Series B shares have a 5.00% maximum deferred
sales charge and are subject to an annual 0.25% service organization fee and an
annual 0.75% 12b-1 fee. Performance for all share classes reflects fee waivers
in effect. In the absence of fee waivers, total return would be reduced.
TOP 5 EQUITY HOLDINGS 10/31/00
--------------------------------------------------------------------------------
CISCO SYSTEMS, INC. 4.5%
--------------------------------------------------------------------------------
EMC CORPORATION 4.4%
--------------------------------------------------------------------------------
SUN MICROSYSTEMS, INC. 4.2%
--------------------------------------------------------------------------------
AMERICAN INTERNATIONAL GROUP, INC. 3.8%
--------------------------------------------------------------------------------
MICROSOFT CORPORATION 3.4%
--------------------------------------------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$341,442,009
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERNATIONAL VALUE FUND
STRATEGY
Firstar International Value Fund seeks capital appreciation through investing in
foreign securities believed to be undervalued.
MARKET CONDITIONS
Over the past year, conditions in international markets have been very
difficult. While there has been moderation in the vast differences in value and
growth stocks, the boom and subsequent bust of high tech stocks, rising interest
rates, high oil prices and the current problems with U.S. elections have all
added tremendous uncertainty to the markets. In addition, weakness in the Euro,
slower than expected recovery in Japan and a perceived slowdown in corporate
restructuring in many developing markets has further affected sentiment
adversely. Given this environment, it is not surprising that markets continue to
be volatile.
INVESTMENT REVIEW
Firstar International Value Fund trailed its benchmark during the one-year
period ended October 31, 2000. The Fund's return was -10.3% (Institutional
shares), while the MSCI/EAFE Index returned -2.9%. In October last year, on a
geographic basis, the Fund was overweighted in Asia relative to the MSCI/EAFE
Index. This was a result of strong performances in most of the Asian markets in
1999 as the region continued its recovery from the economic crisis of 1997 and
1998. In Japan, despite some disappointment over the pace of growth, there were
signs of an initial recovery. More importantly, we were able to identify
companies that were restructuring rapidly and focusing on improving
profitability and shareholder value. These qualities were sorely lacking for
many years. We were even more encouraged by developments in the rest of Asia
where economies saw strong growth, current account surpluses were at record
highs and FX reserves, which were depleted during the crisis, recovered to, and
in many cases surpassed pre-crisis levels. Our decision to be overweight in Asia
in 1999 served the Fund well.
Moving into 2000, we continued our overweight position in Asia although to a
lesser degree. Even though Asian economies continued the strong growth of 1999,
we felt that higher interest rates in the U.S. would make things difficult for
markets in the region. Although most Asian currencies have effectively de-linked
from the U.S. dollar as a result of the massive devaluations during the crisis,
sentiment in the markets continues very much affected by interest rates and
economic activity in the U.S. The FundAsian exposure has been reduced from 48% a
year ago, to 29% as of October 31, 2000. As sells were made, funds were shifted
more in favoring of Europe, and, in particular, the Euro countries.
We believe the tremendous weakness in the Euro, since its introduction at the
beginning of 1999, is unjustified. As with Asia over the past couple of years,
we believe the Euro is not reflecting the positive changes that are taking place
in Euro land. Economic growth rates remain healthy and, according to the OECD
(Organisation for Economic Cooperation and Development), Europe is on track for
its strongest growth in the last ten years. As a result, corporate profitability
is expected to be strong. In addition, the pace of mergers and acquisitions
across all industries continues, as does the tax and pension reform that is
critical to strong equity market performance. Perhaps most importantly, retail
investor interest in the stock market is expected to grow tremendously over the
next few years as Europe catches up with the U.S. in terms of retail
participation. Given these factors, we expect that the Euro and the stock
markets in Europe should provide significant upside over the next few years. The
Fund's European exposure has increased from 41% a year ago, to the 60% level.
From a sector perspective, over the year, we reduced the Fund's overweight
position in basic materials significantly. In particular, we cut back our
exposure to the chemical and paper sectors. These sectors have historically been
very sensitive to the economic cycle and although we do not anticipate a global
recession, a slowdown in economic activity will reduce both earnings and
valuations. The reduction in these sectors was partially offset by an increase
in our exposure to the telecom, IT and pharmaceutical sectors. We have
traditionally been underweight in these sectors due to unattractive valuations.
However, the downturn of IT and telecom related stocks in the first half of the
year has provided us with a good opportunity to selectively add to some of the
higher quality companies in these sectors at what we believe are very attractive
valuations.
LOOKING AHEAD - THE FORECAST
Going forward, we expect international markets to continue being volatile over
the near term as uncertainties remain over oil prices, U.S. elections and the
fate of the U.S. economy. However, we believe that our focus on value will serve
our shareholders well during such volatile markets.
PORTFOLIO MANAGER PROFILE
--------------------------------------------------------------------------------
A Portfolio Management Team lead by THOMAS HANSBERGER, CFA, CIC manages the
International Value Fund for Hansberger Global Investors. Mr. Hansberger serves
as the Chief Executive Officer of Hansberger Global Investors and has over
thirty-five years of investment management experience.
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERNATIONAL
VALUE FUND MSCI/EAFE
INSTITUTIONAL INDEX-<F3>
4/94 $10,000 $10,000
10/94 9,995 10,429
10/95 9,620 10,390
10/96 10,410 11,478
10/97 9,879 12,009
10/98 8,303 13,166
10/99 10,356 16,201
10/00 9,291 15,731
This chart assumes an initial investment of $10,000 made on 4/28/94 (inception).
Per form ance reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced. Performance is shown for Institutional shares,
which have lower expenses than Series A or Series B shares. If those fees and
expenses were reflected in the chart above, total return would have been
reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past perform ance is not predictive of future performance.
Investment return and principal value will fluctuate, so that your shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years 5 Years Since Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INTERNATIONAL VALUE FUND - INSTITUTIONAL (10.3) (2.0) (0.7) (1.1) (4/28/94)
INTERNATIONAL VALUE FUND - A - NO LOAD (10.6) (2.3) (0.9) (1.3) (4/28/94)
INTERNATIONAL VALUE FUND - A - LOAD<F1> (15.5) (4.1) (2.1) (2.2) (4/28/94)
INTERNATIONAL VALUE FUND - B - NO LOAD (11.1) - - 6.4 (3/1/99)
INTERNATIONAL VALUE FUND - B - LOAD<F2> (15.6) - - 4.1 (3/1/99)
MSCI/EAFEINDEX<F3> (2.9) 9.4 8.7 7.2 (4/28/94)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A (retail class) B = Series B (retail class)
<F1> Reflects maximum sales charge of 5.50%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The Morgan Stanley Capital International Europe, Australia and Far East
Index ("MSCI/EAFE") is an unmanaged index composed of 20 European and
Pacific Basin countries. The MSCI/EAFEIndex is the most recognized
international index and is weighted by market capitalization.
Foreign investing involves special risks not associated with domestic securities
including currency risk, increased volatility of foreign securities, and
differences in auditing and other financial standards.
The Index figures do not reflect any fees or expenses. An investment cannot be
made directly in an index.
Prior to January 10, 1995, the Fund offered to investors one series of shares
with neither a sales charge nor a service fee.
Effective at the close of business on January 9, 1995, Firstar Funds began to
offer Series A shares. Effective at the close of business on February 28, 1999,
Firstar Funds began to offer Series B shares. Series A shares have a 5.50%
maximum sales load and are subject to an annual 0.25% service organization fee.
The load performance for the Series A shares has been restated to reflect the
impact of the current sales charge. Series A performance prior to January 10,
1995, does not reflect the service organization fees. If service organization
fees had been reflected, performance would be reduced. Series B shares have a
5.00% maximum deferred sales charge and are subject to an annual 0.25% service
organization fee and an annual 0.75% 12b-1 fee. Performance for all share
classes reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced.
TOP 5 COUNTRIES 10/31/00
--------------------------------------------------------------------------------
JAPAN 19.0%
--------------------------------------------------------------------------------
GREAT BRITAIN 10.4%
--------------------------------------------------------------------------------
GERMANY 8.2%
--------------------------------------------------------------------------------
SWITZERLAND 7.6%
--------------------------------------------------------------------------------
NETHERLANDS 4.8%
--------------------------------------------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$52,163,396
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERNATIONAL GROWTH FUND
STRATEGY
Firstar International Growth Fund seeks to provide capital growth consistent
with reasonable investment risk. The Fund pursues its objective by investing
primarily in foreign common stocks, most of which are denominated in foreign
currency.
MARKET CONDITIONS
In local currency terms, the MSCI/EAFE Index rose by +12.1% during the twelve
months ended October 31, 2000. International markets performed particularly well
during the period through March 2000, but slipped sharply in September and
October. In dollar terms, the index finished the twelve month period down -2.9%,
reflecting a significant weakening of the Euro and Sterling relative to the U.S.
Dollar.
The twelve-month period also witnessed the final surge in the performance of the
Technology, Media and Telecommunications (TMT) group of stocks, followed by an
equally spectacular collapse in these shares. Between November 1, 1999 and March
1, 2000, the TMT group within the MSCI/EAFE Index rose by nearly +90%, only to
give up all but +10% of this gain over the following 8 months. This TMT
phenomenon was evident throughout international markets. The manner in which
these "new economy" stocks first outperformed and then underperformed the "old
economy" group, and the ability of managers to cope with these moves, provided
the dominant influence on relative performance, although country and currency
factors also played a part. The Japanese market underperformed the MSCI/EAFE
Index by more than 8% over the period, operating within a channel that ranged
between neutral performance and 10% underperformance. Europe outperformed by 4%,
while the Pacific Basin excluding Japan underperformed by 3%.
The break in the overall market after March and the dramatic collapse in TMT
stocks can both be traced to the combination of a dramatic slowdown in consumer
spending in the U.S. and an end to the economic upswing in the global economy.
These, in turn, were the lagging result of the tightening in monetary policy
that began in mid-1999, reinforced by a tripling in the oil price between
January 1999 and March 2000. There was some evidence of a temporary loosening of
global monetary policy around the onset of Y2K, which encouraged the TMT boom,
but interest rates rose further in the spring, and in Continental Europe they
have continued to rise.
After the second quarter of 2000, the global economy began to show clear signs
of deceleration, and estimates for economic growth in 2001 began to be revised
down. Since European inflation showed no clear signs of peaking, however, money
market rates of interest there continued to rise. Although inflation was not a
problem in Japan, monetary policy there also was tightened, both in terms of
interest rates and money supply growth rates. A combination of economic
slowdown, tight money and rising inflation was not conducive to higher equity
prices, and the super-cyclical TMT group experienced the sharpest price
declines.
INVESTMENT REVIEW
In this environment, Firstar International Growth Fund outperformed the
MSCI/EAFE Index. During the twelve months ended October 31, 2000, the Fund
returned +4.5% (Institutional shares), which is ahead of the MSCI/EAFE Index
return of -2.9%. Excellent stock selection in Continental Europe and in Asia
excluding Japan drove the strong relative results. The portfolio's exposure to
Europe was increased over the period, with an offsetting reduction in the
weighting to Japan. This shift enhanced overall results, as the Japanese market
significantly lagged Europe. Within Europe, purchases were focused in Great
Britain, France and the Netherlands. A timely reduction in the portfolio's
exposure to global Technology, Media and Telecommunications (TMT) shares, in
advance of their decline, added value during the period. As always, our focus
remains on stocks with reasonable valuations relative to their growth rates.
LOOKING AHEAD - THE FORECAST
Forward looking indicators continue to point to a global slowdown in 2001,
although it would not be surprising to see a temporary rebound in growth in the
first quarter of the year. Partly for this reason and partly because inflation
does not begin to fall until economies are operating beneath trend growth rates,
we are not envisaging any sustained fall in interest rates or inflation before
the Spring of 2001. Our strategy will concentrate on holding growth stocks that
meet our valuation criteria, but within this framework, we are likely to place
less emphasis on companies with a relatively high dependence on a strong
economic environment. In coming months, greater emphasis is likely to be placed
on those companies that perform well in an environment of falling bond yields
and falling interest rates.
PORTFOLIO MANAGER PROFILE
--------------------------------------------------------------------------------
CLAY FINLAY's International Equity team is responsible for the management of the
International Growth Fund. FRANCES DAKERS, GREG JONES, VIRGINIE MAISONNEUVE and
SUSAN KENNEALLY serve as regional team leaders on the International Equity team.
Each of these individuals is a Principal and Director of the Firm, and each has
an average of more than seventeen years of investment experience. This team has
managed the Predecessor Mercantile International Equity Portfolio since it began
operations in 1994.
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERNATIONAL
GROWTH FUND- MSCI/EAFE
INSTITUTIONAL INDEX<F3>
4/94 $10,000 $10,000
11/94 9,920 10,349
11/95 10,809 11,132
11/96 12,142 12,441
11/97 12,495 12,391
11/98 14,460 14,430
11/99 19,808 17,475
10/00 19,161 16,399
This chart assumes an initial investment of $10,000 made on 4/4/94 (inception).
Per form ance reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced. Performance is shown for Institutional shares,
which have lower expenses than Series A, Series Y or Series B shares. If those
fees and expenses were reflected in the chart above, total return would have
been reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past perform ance is not predictive of future performance.
Investment return and principal value will fluc tuate, so that your shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years 5 Years Since Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
International Growth Fund - Institutional 4.5 14.4 12.2 10.4 (4/4/94)
International Growth Fund - Y 4.1 14.1 11.9 10.3 (4/24/94)
International Growth Fund - A - No Load 4.2 14.1 11.9 10.0 (5/2/94)
International Growth Fund - A - Load<F1> (1.5) 12.0 10.6 9.0 (5/2/94)
International Growth Fund - B - No Load 3.4 13.3 11.1 9.3 (5/2/94)
International Growth Fund - B - Load<F2> (1.6) 12.5 10.8 9.3 (5/2/94)
MSCI/EAFE Index<F3> (2.9) 9.4 8.7 7.8 (3/31/94)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A (retail class) B = Series B (retail class) Y = Series Y
<F1> Reflects maximum sales charge of 5.50%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The Morgan Stanley Capital International Europe, Australia and
Far East Index ("MSCI/EAFE"), is an unmanaged index composed of 20 European
and Pacific Basin countries. The MSCI/EAFE Index is the most recognized
international index and is weighted by market capitalization.
The Index figures do not reflect any fees or expenses. Investors cannot invest
directly in an index.
Foreign investing involves special risks not associated with domestic securities
including currency risk, increased volatility of foreign securities, and
differences in auditing and other financial standards.
The Fund began operations on April 4, 1994 as the Mercantile International
Equity Portfolio. On November 27, 2000, the Mercantile International Equity
Portfolio was reorganized into the Firstar International Equity Fund. The
returns shown represent the historical returns of the Mercantile International
Equity Portfolio. Series A shares have a 5.50% maximum sales load and are
subject to an annual 0.25% service organization fee. Series B shares have a
5.00% maximum deferred sales charge and are subject to an annual 0.25% service
organization fee and an annual 0.75% 12b-1 fee. Series Y shares are subject to
an annual 0.25% service organization fee. Performance reflects fee waivers in
effect. In the absence of fee waivers, total return would be reduced.
TOP 5 COUNTRIES 10/31/00
--------------------------------------------------------------------------------
JAPAN 22.4%
--------------------------------------------------------------------------------
UNITED KINGDOM 16.9%
--------------------------------------------------------------------------------
FRANCE 13.2%
--------------------------------------------------------------------------------
NETHERLANDS 8.4%
--------------------------------------------------------------------------------
SPAIN 5.9%
--------------------------------------------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$143,025,208
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
MIDCAP INDEX FUND
STRATEGY
Firstar MidCap Index Fund seeks returns, before Fund expenses, comparable to the
price and yield performance of publicly traded common stocks in the aggregate,
as represented by the S&P MidCap 400 Index. The Fund does not use traditional
methods of financial and market analysis when making purchase and sale
decisions, rather, the Fund invests primarily in common stocks that comprise the
S&P MidCap 400 Index in proportion to their relative capitalization and sector
weightings.
INVESTMENT REVIEW
As of October 31, 2000, Firstar MidCap Index Fund returned 26.6% (Institutional
shares) since its inception on November 4, 1999, which is comparable to the
return of the S&P MidCap 400 Index return of 28.5% during the same period.
We believe that by applying a capitalization weighting and sector balancing
technique that matches the structure of the S&P MidCap 400 Index, as well as
using S&P MidCap 400 Index futures contracts to equitize the portfolio's cash
position, the Fund should reasonably track the performance of its benchmark.
<PAGE>
(LOGO) FIRSTAR FUNDS
MIDCAP INDEX- S&P MIDCAP
INSTITUTIONAL 400 INDEX<F3>
11/99 $10,000 $10,000
10/00 12,662 12,848
This chart assumes an initial investment of $10,000 made on 11/4/99 (inception).
Per form ance reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced. Performance is shown for Institutional shares,
which have lower expenses than Series A or Series B shares. If those fees and
expenses were reflected in the chart above, total return would have been
reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past performance is not predictive of future performance.
Investment return and principal value will fluctuate, so that your shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
Since Inception<F4>
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
MidCap Index Fund - Institutional 26.6 (11/4/99)
MidCap Index Fund - A - No Load 26.5 (11/4/99)
MidCap Index Fund - A - Load<F1> 19.5 (11/4/99)
MidCap Index Fund - B - No Load 25.7 (11/4/99)
MidCap Index Fund - B - Load<F2> 20.7 (11/4/99)
S&P MidCap 400 Index<F3> 28.5 (11/4/99)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A (retail class) B = Series B (retail class)
<F1> Reflects maximum sales charge of 5.50%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The S&PMidCap 400 Index is a capital-weighted index, representing the
aggregate market value of the common equity of an unmanaged group of 400
stocks chosen by Standard &Poor's with a median capitalization of
approximately $700 million.
<F4> Not annualized.
"Standard & Poor's(R)," "S&P(R)," "S&P 400(R)," "Standard &Poor's 400," and
"400" are trademarks of the McGraw Hill Companies, Inc. and have been licensed
for use by Firstar Funds. The MidCap 400 Index Fund is not sponsored, endorsed,
sold or promoted by Standard & Poor's and Standard & Poor's makes no
representation regarding the advisability of investing in the MidCap 400 Index
Fund.
The Index figures do not reflect any fees or expenses. An investment cannot be
made directly in an index.
Series A shares have a 5.50% maximum sales load and are subject to
an annual 0.25% service organization fee. The load performance for the Series A
shares has been restated to reflect the impact of the current sales charge.
Series B shares have a 5.00% maximum deferred sales charge and are subject to an
annual 0.25% service organization fee and an annual 0.75% 12b-1 fee. Performance
reflects fee waivers in effect. In the absence of fee waivers, total return
would be reduced.
TOP 5 EQUITY HOLDINGS 10/31/00
--------------------------------------------------------------------------------
DYNEGY, INC. 1.4%
--------------------------------------------------------------------------------
MILLENNIUM PHARMACEUTICALS, INC. 1.4%
--------------------------------------------------------------------------------
VITESSE SEMICONDUCTOR CORPORATION 1.3%
--------------------------------------------------------------------------------
INTUIT, INC. 1.3%
--------------------------------------------------------------------------------
CALPINE CORPORATION 1.2%
--------------------------------------------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$128,704,140
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
MIDCAP CORE EQUITY FUND
STRATEGY
Firstar MidCap Core Equity Fund seeks capital appreciation. The Fund pursues its
objective by investing in common stocks of medium-sized companies with market
capitalizations between $700 million and $10 billion.
MARKET CONDITIONS
The stock market began the fiscal year in the middle of one of the largest
technology stock rallies in recent history. From October 31, 1999 to March 10,
2000, the NASDAQ composite surged over 70% on the backs of high multiple
internet, semiconductor and telecommunications companies. Very little
differentiation existed between technology and telecommunications companies as
they rose in market value. By March 10, 2000, investors' exuberance over
wireless handset demand, fiber optics and the digital revolution had peaked, and
a market revaluation of high P/E stocks began in earnest. By April, investors
turned their focus to other areas of real growth including energy, independent
power and utilities. Despite marching into several short-term interest rate
increases from the Federal Reserve in the first six months of the fiscal year,
investors continued to pile into the domestic stock market at a record pace,
showing confidence that economic growth would continue. More importantly,
investors shifted asset allocation to mid-cap stocks and small-cap stocks as the
S&P MidCap 400 Index rose +31.7% and the S&P SmallCap 600 Index increased
+25.3%, while the large cap S&P 500 Stock Index increased only +6.1%.
INVESTMENT REVIEW
In this environment, we are pleased to report Firstar MidCap Core Equity Fund
significantly outperformed its benchmark during the fiscal year. In the twelve
months ended October 31, 2000, the Fund delivered a return of +47.6%
(Institutional shares), ahead of the S&P MidCap 400 Index which earned +31.7%.
After a 10 percentage point overweight in technology was reduced in March to 5
percentage points, we moved to diversify the Fund's holdings significantly. The
result was an increase in weight in energy, independent power utilities,
selected consumer staples, defense contracts and business services. We also
increased the number of holdings to over 150 companies with the largest holding
now representing only 3% of the Fund. The reduction in technology holdings was
due to our perception of a fundamental peak. In early March, most hard
technology stocks were priced for perfection. In energy, we increased our weight
to an overweight against the S&P MidCap 400 Index until September, 2000, when we
sold off some positions that had appreciated significantly. The commodity prices
of natural gas and oil rose throughout the summer, driving the underlying energy
securities higher. Independence became a particularly salient topic in
California where regulated utilities couldn't meet peak energy demand in the
state and were forced to buy expensive power off the grid from companies like
Dynegy, Calpine and El Paso Energy (all of which were held in the Fund). Lack of
power supply will continue to exist, we believe, in many areas of the country,
thus creating opportunities for our holdings in NRG Energy, Southern Energy,
Capline and Excelon. We also took advantage of rising commercial insurance
prices by buying positions in Old Republic International and Everest Re Group.
One of the best performing areas of the Fund, however, was business and data
services. Generally, these companies grow 15-20% per year with great visibility
as the majority of their revenues are under long term contract. Examples of
increased holdings here include Acxiom, SunGard Data Systems, BISYS Group, DST
Systems and Choicepoint.
LOOKING AHEAD - THE FORECAST
Though the domestic economy appears to be headed for a soft landing at lower GDP
growth rates, we are concerned about increasing pressures overseas, particularly
in southeast Asia. The outlook for certain crucial technology areas is poor. We
expect worldwide wireless handset sales and personal computer sales to fall
short of current expectations. In addition, we believe capital expenditures
towards telecommunications and the business to consumer internet will exhibit
slower growth rates in 2001. Lastly, consumer spending will likely slow
gradually with higher energy costs and slowing wage growth. Pockets of improving
fundamentals include insurance, data processing, data storage, business services
and power production. The environment for midcap stocks should continue to be
robust as mid-cap company growth rates will likely be 2-3 times that of
large-cap companies.
PORTFOLIO MANAGER PROFILE
--------------------------------------------------------------------------------
TODD KRIEG, CFA and MATT D'ATTILIO, CFA co-manage the MidCap Core Equity Fund -
Mr. Krieg since September, 1994 and Mr. D'Attilio since December, 1998.
Mr. Krieg has been with FIRMCO and its affiliates since 1992 and has seven years
of investment management experience. Mr. D'Attilio has been with FIRMCO and its
affiliates since 1993 and has six years of investment management experience.
<PAGE>
(LOGO) FIRSTAR FUNDS
MIDCAP S&P S&P 500
CORE EQUITY- MIDCAP STOCK
INSTITUTIONAL 400 INDEX<F3> INDEX<F4>
12/89 $10,000 $10,000 $10,000
10/90 8,953 8,293 8,855
10/91 14,346 13,360 11,821
10/92 15,617 14,804 12,999
10/93 18,138 17,992 14,941
10/94 18,641 18,420 15,519
10/95 23,449 22,327 19,622
10/96 26,339 26,200 24,351
10/97 32,323 34,760 32,190
10/98 30,494 37,092 39,244
10/99 30,969 44,908 59,121
10/00 45,707 59,121 52,322
This chart assumes an initial investment of $10,000 made on 12/28/89
(inception). Per form ance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Performance is shown for Institutional
shares, which have lower expenses than Series A or Series B shares. If those
fees and expenses were reflected in the chart above, total return would have
been reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past performance is not predictive of future performance.
Investment return and principal value will fluctuate, so that your shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
1 Year 5 Years 10 Years Since Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MIDCAP CORE EQUITY FUND - INSTITUTIONAL 47.6 14.3 17.7 15.0 (12/28/89)
MIDCAP CORE EQUITY FUND - A - NO LOAD 47.2 14.0 17.5 14.9 (12/28/89)
MIDCAP CORE EQUITY FUND - A - LOAD<F1> 39.1 12.7 16.9 14.3 (12/28/89)
MIDCAP CORE EQUITY FUND - B - NO LOAD 46.1 - - 25.6 (3/1/99)
MIDCAP CORE EQUITY FUND - B - LOAD<F2> 41.1 - - 23.5 (3/1/99)
S&P MIDCAP 400 INDEX<F3> 31.7 21.5 21.7 17.8 (12/28/89)
S&P 500 STOCK INDEX<F4> 6.1 21.7 19.4 16.5 (12/28/89)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A (retail class) B = Series B (retail class)
<F1> Reflects maximum sales charge of 5.50%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The S&P MidCap 400 Index is a capital-weighted index, representing the
aggregate market value of the common equity of an unmanaged group of 400
stocks chosen by Standard &Poor's with a median capitalization of
approximately $700 million.
<F4> The S&P 500 Stock Index is an index of an unmanaged group of 500 selected
common stocks, most of which are listed on the New York Stock Exchange. The
Index is heavily weighted toward stocks with large market capitalizations
and represents approx i mately two-thirds of the total market value of all
domestic common stocks.
The Index figures do not reflect any fees or expenses. An investment cannot be
made directly in an index.
Prior to January 10, 1995, the Fund offered to investors one series of shares
with neither a sales charge nor a service fee.
Effective at the close of business on January 9, 1995, Firstar Funds began to
offer Series A shares. Effective at the close of business on February 28, 1999,
Firstar Funds began to offer Series B shares. Series A shares have a 5.50%
maximum sales load and are subject to an annual 0.25% service organization fee.
The load performance for the Series A shares has been restated to reflect the
impact of the current sales charge. Series A performance prior to January 10,
1995 does not reflect the service organization fees. If service organization
fees had been reflected, performance would be reduced. Series B shares have a
5.00% maximum deferred sales charge and are subject to an annual 0.25% service
organization fee and an annual 0.75% 12b-1 fee. Performance for all share
classes reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced.
TOP 5 EQUITY HOLDINGS 10/31/00
--------------------------------------------------------------------------------
SUNGARD DATA SYSTEMS, INC. 3.0%
--------------------------------------------------------------------------------
FAMILY DOLLAR STORES 2.3%
--------------------------------------------------------------------------------
ACXIOM CORPORATION 2.0%
--------------------------------------------------------------------------------
AMBAC FINANCIAL GROUP, INC. 2.0%
--------------------------------------------------------------------------------
ABERCROMBIE & FITCH COMPANY 1.4%
--------------------------------------------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$544,605,000
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
SMALL CAP INDEX FUND
STRATEGY
Firstar Small Cap Index Fund seeks returns that, before the deduction of
operating expenses, approximate the price and yield performance of U.S. common
stocks with smaller market capitalizations as represented by the S&P SmallCap
600 Index. The Fund does not use traditional methods of financial and market
analysis when making purchase and sale decisions, rather, the Fund invests
primarily in common stocks that comprise the S&P SmallCap 600 Index in
proportion to their relative capitalization and sector weightings.
INVESTMENT REVIEW
During the twelve month period ended October 31, 2000, Firstar Small Cap Index
Fund returned 26.9% (Institutional shares) which is comparable to the S&P
SmallCap 600 Index's return of 25.3% during the same period.
We believe that by applying a capitalization weighting and sector balancing
technique that matches the structure of the S&P SmallCap 600 Index, the Fund
should reasonably track the performance of its benchmark.
<PAGE>
(LOGO) FIRSTAR FUNDS
SMALL CAP S&P SMALLCAP
INDEX FUND- 600
INSTITUTIONAL INDEX<F2>
12/98 $10,000 $10,000
11/99 10,201 10,387
10/00 12,439 12,489
This chart assumes an initial investment of $10,000 made on 12/30/98
(inception). Per form ance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Performance is shown for Institutional
shares, which have lower expenses than Series A or Series Y shares. If those
fees and expenses were reflected in the chart above, total return would have
been reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past perform ance is not predictive of future performance.
Investment return and principal value will fluc tuate, so that your shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
1 Year Since Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
SMALL CAP INDEX FUND - INSTITUTIONAL 26.9 12.6 (12/30/98)
SMALL CAP INDEX FUND - Y 26.5 12.3 (12/30/98)
SMALL CAP INDEX FUND - A - NO LOAD 26.5 12.3 (12/30/98)
SMALL CAP INDEX FUND - A - LOAD<F1> 19.5 8.9 (12/30/98)
S&P SMALLCAP 600 INDEX<F2> 25.3 12.9 (12/31/98)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A (retail class)
Y = Series Y
<F1> Reflects maximum sales charge of 5.50%.
<F2> The S&PSmallCap 600 Index is a capitalization weighted index that measures
the performance of selected U.S. stocks with small market capitalizations.
"Standard & Poor's(R)", "S&P(R)", "S&P 600(R)", "Standard & Poor's 600", and
"600" are trademarks of the McGraw Hill Companies, Inc. and have been licensed
for use by Firstar Funds. The Small Cap Index Fund is not sponsored, endorsed,
sold or promoted by Standard & Poor's and Standard & Poor's makes no
representation regarding the advisability of investing in the Small Cap Index
Fund.
The Index figures do not reflect any fees or expenses. An investment cannot be
made directly in an index.
The Fund began operations on December 30, 1998 as the Mercantile Small Cap
Equity Index Portfolio of Mercantile Mutual Funds, Inc. On December 11, 2000,
the Mercantile Small Cap Equity Index Portfolio was reorganized into the Firstar
Small Cap Index Fund. The returns shown represent the historical returns of the
Mercantile Small Cap Equity Index Portfolio. Series A shares have a 5.50%
maximum sales load and are subject to an annual 0.25% service organization fee.
Series Y shares are subject to an annual 0.25% service organization fee.
Performance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced.
TOP 5 EQUITY HOLDINGS 10/31/00
--------------------------------------------------------------------------------
PROTEIN DESIGN LABS, INC. 1.5%
--------------------------------------------------------------------------------
VERTEX PHARMACEUTICALS, INC. 1.3%
--------------------------------------------------------------------------------
KING PHARMACEUTICALS, INC. 0.9%
--------------------------------------------------------------------------------
COR THERAPEUTICS, INC. 0.8%
--------------------------------------------------------------------------------
INTERNATIONAL RECTIFIER CORPORATION 0.7%
--------------------------------------------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$79,004,640
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
SMALL CAP CORE EQUITY FUND
STRATEGY
Firstar Small Cap Core Equity Fund seeks capital appreciation. The Fund pursues
its objective by investing the majority of its assets in small-sized companies
with market capitalizations between $100 million and $2 billion.
MARKET CONDITIONS
The stock market for the fiscal year ended October 31, 2000 was a story of two
very different markets. The first four-plus months saw the NASDAQ Composite
increase more than 70% as the insatiable appetite for technology stocks drove
this sector to mind-boggling valuations. While technology clearly maintained the
strongest fundamentals of any sector throughout the fiscal year, stock prices
began to reflect more than these companies could deliver. In the final
seven-plus months of the fiscal year, the NASDAQ fell by more than 30% and the
market rotated into sectors such as healthcare, energy and consumer staples.
Perhaps more important to our shareholders, this fiscal year marked the first
since 1993 that small-cap stocks significantly outperformed large-cap stocks.
INVESTMENT REVIEW
In the twelve months ended October 31, 2000, we are pleased to report Firstar
Small Cap Core Equity Fund outperformed the S&P SmallCap 600 Index. The Fund's
return was 38.9% (Institutional shares) while the S&P SmallCap 600 earned 25.3%.
A major factor driving this outperformance was strong relative returns in
technology. The Fund's overweight position in semiconductors throughout the
year, with companies such as Integrated Device Technologies, Triquint
Semiconductor and Burr Brown, provided solid returns. Technology/outsourcing
services companies also contributed to our outperformance, including large
holdings in Bisys Group, Affiliated Computer Services and Acxiom Corporation.
The business models of all of these outsourcing companies include a significant
amount of recurring revenues, and investors preferred the visibility of these
models in the second half of the year as the rest of technology suffered.
Outside of technology, consumer cyclicals was the other major sector that
performed well within the Fund this year. This is a very diverse group of
companies with the only consistent underlying theme being the strong U.S.
consumer. Solid returns were generated by Brinker International, an operator of
restaurants including Chili's and Macaroni Grill; Ultimate Electronics, a
retailer of consumer electronics and Anchor Gaming, a designer and operator of
video gaming machines.
LOOKING AHEAD - THE FORECAST
As we enter our fiscal 2001, we can't help but reflect on how the world has
changed in the last twelve months. Last November, we had an accelerating U.S.
economy, the Federal Reserve had just begun to raise interest rates, technology
stock prices seemed to defy gravity and the market became more and more narrow
by the day. Today we have a slowing U.S. economy, anticipation by many
(including ourselves) that interest rates will fall, and a broadening market as
investors continue to sell technology stocks.
In this environment, we have shifted the portfolio to take advantage of what we
believe will continue to be a broader market. We have increased our weighting in
financials to take advantage of a falling rate environment. We have also
increased our healthcare exposure as we believe relative growth rates in this
sector will improve in a slowing economic environment. In the area of
technology, we are now roughly market weighted and will remain so as we get
better clarity on end market demand for computers and telecommunications
equipment and on channel inventory issues for products such as semiconductors
and connectors.
Finally, we remain optimistic on small-cap stocks in general. We believe that
the relative growth rates in both revenues and earnings for small-caps will be
favorable in 2001, which should attract investor dollars. Also, the capital
markets most likely will not be as active as they were in the past two years.
Raising capital for new public companies tends to be a drag on fund flows to
other small-cap companies, so the reduction in this activity should help the
overall performance of smaller stocks. Our focus continues to be on buying
well-managed small-cap companies at reasonable valuations, and maintaining a
well diversified portfolio.
PORTFOLIO MANAGER PROFILE
--------------------------------------------------------------------------------
DAVID LETTENBERGER, CFA and JOHN POTTER, CFA co-manage Firstar Small Cap Core
Equity Fund - each since September, 2000. Mr. Lettenberger has been with FIRMCO
and its affiliates since 1999 and has seven years of investment management
experience. Mr. Potter joined FIRMCO in September, 2000 and has six years of
investment management experience.
<PAGE>
(LOGO) FIRSTAR FUNDS
SMALLCAP CORE RUSSELL S&P WILSHIRE
CORE FUND- 2000 SMALLCAP NEXT 1750
INSTITUTIONAL INDEX<F3> 600 INDEX<F3> INDEX<F3>
5/92 $10,000 $10,000 $10,000 $10,000
11/92 11,255 11,032 11,405 11,171
11/93 13,474 13,126 13,539 13,114
11/94 14,492 12,979 13,043 13,102
11/95 17,636 16,677 17,081 17,056
11/96 19,185 19,431 20,820 19,986
11/97 22,982 23,980 25,929 24,573
11/98 19,784 22,392 24,539 23,674
11/99 23,259 25,901 27,117 28,345
10/00 30,238 28,696 32,605 31,867
This chart assumes an initial investment of $10,000 made on 5/6/92 (inception).
Per form ance reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced. Performance is shown for Institutional shares,
which have lower expenses than Series Y, Series A or Series B shares. If those
fees and expenses were reflected in the chart above, total return would have
been reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past perform ance is not predictive of future performance.
Investment return and principal value will fluc tuate, so that your shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years 5 Years Since Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SMALL CAP CORE EQUITY FUND - INSTITUTIONAL 38.9 9.1 12.3 13.9 (5/6/92)
SMALL CAP CORE EQUITY FUND - Y 38.5 8.8 11.9 13.6 (5/6/92)
SMALL CAP CORE EQUITY FUND - A - NO LOAD 38.5 8.8 11.9 13.7 (5/6/92)
SMALL CAP CORE EQUITY FUND - A - LOAD<F1> 30.9 6.8 10.6 12.9 (5/6/92)
SMALL CAP CORE EQUITY FUND - B - NO LOAD 37.5 8.1 11.2 13.2 (5/6/92)
SMALL CAP CORE EQUITY FUND - B - LOAD<F2> 32.5 7.2 10.9 13.2 (5/6/92)
RUSSELL 2000 INDEX<F3> 17.4 6.0 12.4 13.2 (4/30/92)
S&P SMALLCAP 600 INDEX<F3> 25.3 7.7 14.7 14.9 (4/30/92)
WILSHIRE NEXT 1750 INDEX<F3> 19.7 8.8 14.3 14.6 (4/30/92)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A (retail class) B = Series B (retail class) Y = Series Y
<F1> Reflects maximum sales charge of 5.50%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The Russell 2000 Index is an unmanaged index comprised of the 2,000
smallest of the 3,000 largest U.S. companies based on market
capitalization. The S&P SmallCap 600 Index is a capitalization weighted
index that measures the performance of selected U.S. stocks with small
market capitalizations. The Wilshire Next 1750 Index is an unmanaged index,
which shows the next largest 1,750 companies after the Top 750 of the
Wilshire 5000 Stock Index. Prior to November 27, 2000, the S&P SmallCap 600
and Wilshire Next 1750 Index were the performance benchmarks of the Fund.
The Russell 2000 Index was the performance benchmark of the Mercantile
Small Cap Equity Portfolio. The S&P SmallCap 600 Index has been selected
as the sole performance benchmark for the Fund as the market capitalization
of the Index is closely aligned with that of the Fund.
The Index figures do not reflect any fees or expenses. An investment cannot be
made directly in an index.
The Fund began operations on May 6, 1992 as the Mercantile Small Cap Equity
Portfolio of Mercantile Mutual Funds, Inc. On November 27, 2000, the Mercantile
Small Cap Equity Portfolio reorganized into the Firstar Emerging Growth Fund.
The returns shown represent the historical returns of the Mercantile Small Cap
Equity Portfolio.
Retail B shares were initially offered on March 1, 1995. The performance figures
for Series B shares for periods prior to such date represent the performance for
Series A shares of the Fund, which are restated to reflect the contingent
deferred sales charge payable by holders of Series B shares who redeem within
six years of the date of purchase.
Series Y shares were initially offered on January 3, 1994. The performance
figures for Series Y shares for periods prior to such date represent the
performance for Retail A shares of the Fund.
Series A shares have a 5.50% maximum sales load and are subject to an annual
0.25% service organization fee. Series B shares have a 5.00% maximum deferred
sales charge and are subject to an annual 0.25% service organization fee and an
annual 0.75% 12b-1 fee. Series Y shares are subject to an annual 0.25% service
organization fee. Performance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced.
TOP 5 EQUITY HOLDINGS 10/31/00
--------------------------------------------------------------------------------
SUNGARD DATA SYSTEMS, INC. 4.5%
--------------------------------------------------------------------------------
ACXIOM CORPORATION 2.4%
--------------------------------------------------------------------------------
ARTHUR J. GALLEGHER & Company 1.9%
--------------------------------------------------------------------------------
COMPUTER NETWORK TECH CORPORATION 1.9%
--------------------------------------------------------------------------------
AVIS RENT A CAR, INC. 1.6%
--------------------------------------------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$149,928,028
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
SCIENCE & TECHNOLOGY FUND
STRATEGY
Firstar Science & Technology Fund seeks to maximize growth and capital
appreciation by investing in equity securities of companies in the science and
technology industry.
MARKET CONDITIONS
During the twelve months ended October 31, 2000, the technology market has
continued to be volatile. This year started out with an explosive
technology market benefiting from the extra spending and
investing companies were doing ahead of year 2000. Shortly after the beginning
of the calendar year we experienced a valuation correction in the market. During
this time investors concentrated on companies with sustainable earnings growth.
The pure internet stocks were companies that investors avoided and they
experienced the worst price declines. Many of these companies lost 90% of their
market capitalization in a matter of months. This correction was followed by a
return to normalcy. During this period, investors were rewarded only if they
owned top-tier companies. Finally, we experienced a fundamental correction. This
period in the market was an adjustment to forecasted earnings growth rate
deceleration in the coming months. This adjustment started with concerns about
the personal computer and wireless markets and then the telecommunications
equipment and semiconductor markets. Investors readjusted the valuation they
were willing to pay for individual stocks based on a lower fundamental growth
rate for revenue and earnings going forward.
The past twelve months started with an extremely positive market and finished
with an adjustment to investor growth expectations. This adjustment to growth
expectations is normal and is what continues to create volatility in the
technology sector.
INVESTMENT REVIEW
In the twelve-month period ended October 31, 2000, we
are please to report Firstar Science & Technology Fund outperformed
the NASDAQ 100 Index and the Lipper Science & Technology Fund Index. The Fund's
return was 49.9% (Institutional shares) while the NASDAQ 100 Index earned 24.5%
and the Lipper Science & Technology Fund Index earned 35.0%.
Our strategy that worked well was to be focused on top-tier semiconductor and
software stocks. The semiconductor industry has benefited from telecommunication
companies increasing their fiber optic networks in order to reduce their costs
to provide voice and data transmission. This cost reduction should continue to
be a focus of telecommunication companies albeit at a slower rate than in the
past. Examples of strong companies supplying semiconductors used to build these
optical networks are JDS Uniphase and SDL Incorporated. In the software
industry, a need for new companies providing software to enable e-commerce and
to allow this e-commerce data to communicate with current software applications
has emerged. The increase in commerce over the internet has been explosive and
driven revenue growth for the companies providing the infrastructure for
commerce. Broadvision and Siebel Systems are individual companies that were very
strong and are experiencing explosive revenue growth supplying this technology.
Our healthcare exposure is where the fund experienced underperformance for the
majority of the year. We continue to believe that these stocks represent an
opportunity for growth in the future.
LOOKING AHEAD - THE FORECAST
We believe corporate technology investments should continue to increase
based on the theory that the anticipated rate of return from investment is
greater than the initial outlay for the technology being implemented. The new
year has changed the focus of corporate IT (Information Technology) departments
from Y2K fixes to newer strategic technologies designed to either increase
revenues or decrease the costs necessary to produce the company's goods or
services. Leading-edge companies have just begun to implement a new electronic
business model. This new e-business model requires that companies expand their
internet presence and update their internal legacy systems with software
allowing the exchange of data throughout the entire company.
We believe we are starting to see the internet change the way companies do
business with each other. Companies are learning that they can either embrace
the internet as a means of doing business or risk being leap frogged by
companies who have embraced this technology. Going forward, we believe Firstar
Science & Technology Fund provides investors with an excellent way to
participate in all of these facets of technology and new opportunities as they
are presented.
PORTFOLIO MANAGER PROFILE
--------------------------------------------------------------------------------
DONALD L. KELLER and RANDY HARE co-manage Firstar Science & Technology Fund -
Mr. Keller since the inception of the Predecessor Firstar Stellar Science &
Technology Fund in August, 1999, and Mr. Hare since October, 2000. Mr. Keller
has been with FIRMCO and its affiliates since 1982 and has 18 years of
investment management experience. Mr. Hare has been with FIRMCO and its
affiliates since 1998 and has four years of investment management experience.
<PAGE>
(LOGO) FIRSTAR FUNDS
SCIENCE & TECHNOLOGY NASDAQ LIPPER SCIENCE &
FUND- 100 TECHNOLOGY FUND
INSTITUTIONAL INDEX<F3> INDEX<F4>
8/99 $10,000 $10,000 $10,000
11/99 14,560 13,412 13,373
10/00 19,540 14,844 15,954
This chart assumes an initial investment of $10,000 made on 8/9/99 (inception).
Per form ance reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced. Performance is shown for Institutional shares,
which have lower expenses than Series A or Series B shares. If those fees and
expenses were reflected in the chart above, total return would have been
reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past perform ance is not predictive of future performance.
Investment return and principal value will fluc tuate, so that your shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
1 Year Since Inception<F5>
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
SCIENCE & TECHNOLOGY FUND - INSTITUTIONAL 49.9 72.6 (8/9/99)
SCIENCE & TECHNOLOGY FUND - A - NO LOAD - (11.4) (3/31/00)
SCIENCE & TECHNOLOGY FUND - A - LOAD<F1> - (16.3) (3/31/00)
SCIENCE & TECHNOLOGY FUND - B - NO LOAD 48.9 70.9 (8/9/99)
SCIENCE & TECHNOLOGY FUND - B - LOAD<F2> 43.9 68.0 (8/9/99)
NASDAQ 100 INDEX<F3> 24.5 38.0 (8/9/99)
LIPPER SCIENCE & TECHNOLOGY FUND INDEX<F4> 35.0 42.6 (7/31/99)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A (retail class) B = Series B (retail class)
<F1> Reflects maximum sales charge of 5.50%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The Nasdaq 100 Index is an unmanaged modified capitalization-weighted index
of the 100 largest and most active non-financial domestic and international
issues listed on the NASDAQ.
<F4> The Lipper Science & Technology Fund Index is composed of the 30 largest
mutual funds whose primary objective is to invest in science and technology
stocks.
<F5> Returns for less than one year are not annualized.
The Index figures do not reflect any fees or expenses. An investment cannot be
made directly in an index.
The Fund began operations on August 9, 1999 as the Firstar Stellar Science &
Technology Fund of Firstar Stellar Funds. On December 11, 2000, the Firstar
Stellar Science & Technology Fund reorganized into the Firstar Science &
Technology Fund. The historical returns shown are those of the Firstar Stellar
Science & Technology Fund.
The Fund participates in Initial Public Offerings ("IPOs") and a
portion of the Fund's returns are attributable to its investment in IPOs which
have a magnified impact due to the Fund's relatively small asset base. There is
no guarantee that as the Fund's assets grow it will continue to experience
substantially similar performance by investing in IPOs. In fact, the impact of
IPOs on the Fund's performance likely will decrease.
Series A shares have a 5.50% maximum sales load and are subject to an annual
0.25% service organization fee. Series B shares have a 5.00% maximum deferred
sales charge and are subject to an annual 0.25% service organization fee and
a 0.75% 12b-1 fee. Performance reflects fee waivers in effect. In the absence
of fee waivers, total return would be reduced.
TOP 5 EQUITY HOLDINGS 10/31/00
--------------------------------------------------------------------------------
SDL, INC. 3.3%
--------------------------------------------------------------------------------
EMC CORPORATION 3.2%
--------------------------------------------------------------------------------
SIEBEL SYSTEMS, INC. 2.8%
--------------------------------------------------------------------------------
BROCADE COMMUICATIONS SYSTEMS, INC. 2.8%
--------------------------------------------------------------------------------
COMVERSE TECHNOLOGY, INC. 2.8%
--------------------------------------------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$137,175,978
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
MICROCAP FUND
STRATEGY
Firstar MicroCap Fund seeks capital appreciation. The Fund pursues its objective
by investing in the common stock of companies whose market capitalization is
below the median market capitalization of the Russell 2000 Index at the time of
purchase.
MARKET CONDITIONS
The conditions during the reporting period can be divided roughly into two
parts. The first part consisted of a strongly rising market, driven primarily by
continuing economic expansion, historically low inflation (and interest rates)
and strength in equity appreciation, particularly in shares of technology
companies. From November 1, 1999, until March 10, 2000, the Nasdaq Composite
Index rose from 2968 to 5049, or 70%, an exceptionally steep rate of growth.
Market sentiment during this time was discounting continued economic strength
driven by increased efficiencies made available by the Internet. As such,
business-to-business (b-to-b) oriented large-cap equities (e.g. Ariba,
CommerceOne) became market leaders, taking over from business-to-consumer
oriented stocks (e.g. Amazon, eToys). Additionally, "e-infrastructure" companies
(e.g. Sun Microsystems, Siebel Systems) were also strong.
However, in mid-March, 2000, market sentiment began to "roll over," driven at
first by some early signs of weakness in b-to-b stocks, and exacerbated by the
traditional springtime weakness in technology shares. This was compounded
further by weakness in Tech Bellwether, Microsoft, which was officially found
guilty in early April of several federal antitrust crimes. For the balance of
the fiscal year, the overall equity environment never again surpassed its March
highs, driven lower by the tech-heavy Nasdaq Index which lost a third of its
value from mid-March until the end of October. A succession of Federal Reserve
interest rate hikes, done proactively during this period to prevent inflation
from emerging during a super-normal economic growth period (e.g. GDP growth in
the 5-6% range) did not help matters. Furthermore, wholesale energy prices
continued to rise, roughly tripling during the fiscal year. As such, the market
sentiment began to turn negative during the summer, and the year ended with
severe market uncertainty.
INVESTMENT REVIEW
For the twelve-month period ended October 31, 2000, the portfolio's return was
87.9% (Institutional shares). This return greatly outperformed the Fund's
benchmark, the Russell 2000 Index, which returned 17.4% during the same period.
Throughout the reporting period, the MicroCap Fund remained heavily committed to
technology, as continued "waves" of disruptive technological shifts (e.g., from
the PC to the Internet, from wireline to wireless, from narrowband to broadband)
offered investors large emerging markets and expansive capital spending budgets.
During the period, technology shares generally comprised 30-40% of the
portfolio, reaching as much as 50% during the early, rising market phase.
Significant contributors to the portfolio's outperformance during the year
included Aeroflex, Remec and Three Five Systems, which rose 186%, 170% and 100%,
respectively.
The MicroCap Fund's other significant overweight position was in the energy
sector; an excellent supply-demand environment brought about by rising wholesale
prices, improving asset utilization and superior cash flow. Our winners here
included HS Resources, Louis Dreyfus and Natural Gas and Unit, which rose 98%,
70% and 59%, respectively. The Fund also took advantage of other trends,
including the move toward well-managed private education firms, a forthcoming
multi-year video-game cycle driven by Sony's PlayStation2 and strength in
specialty retailers including Ultimate Electronics, Gymboree and Chicos.
LOOKING AHEAD - THE FORECAST
We remain optimistic about the broader macro trends guiding the stock market.
Although the market at our fiscal year-end remained weak, broader indices had
only reversed to levels achieved just last year, before what most investors now
regard as an unsustainable rally. In Firstar MicroCap Fund, we still regard
technology as the market leader, offering the best growth prospects. Our
overweight in energy stocks will have a natural end, as higher commodity prices
are fully discounted by the underlying equities. We now look to suitable
positions in health care/biotech, and the financials for incremental growth
opportunities, driven in part by our expectation of a declining interest rate
environment.
Portfolio Manager Profile
--------------------------------------------------------------------------------
JOSEPH A. FROHNA, CFA and BARRY RANDALL co-manage the MicroCap Fund - Mr. Frohna
since September, 1997 and Mr. Randall since September, 2000. Mr. Frohna has been
with FIRMCO and its affiliates since 1995 and has seven years of investment
management experience. Mr. Randall has been with FIRMCO and its affiliates
since May 2000 and has seven years of investment management experience.
<PAGE>
(LOGO) FIRSTAR FUNDS
MICROCAP FUND RUSSELL
INSTITUTIONAl 2000 INDEX<F1>
8/95 $10,000 $10,000
10/95 16,393 11,709
10/96 17,188 11,567
10/97 22,365 14,960
10/98 17,555 13,189
10/99 31,083 15,150
10/00 58,403 17,788
This chart assumes an initial investment of $10,000 made on 8/1/95 (inception).
Per form ance reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced. Performance is shown for Institutional shares,
which have lower expenses than Series A or Series B shares. If those fees and
expenses were reflected in the chart above, total return would have been
reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past perform ance is not predictive of future performance.
Investment return and principal value will fluc tuate, so that your shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years 5 Years Since Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MICROCAP FUND - INSTITUTIONAL 87.9 37.7 39.3 40.0 (8/1/95)
MICROCAP FUND - A - NO LOAD 87.4 37.3 39.0 39.5 (8/1/95)
MICROCAP FUND - A - LOAD<F2> 77.1 34.8 37.4 38.0 (8/1/95)
MICROCAP FUND - B - NO LOAD 86.1 - - 90.4 (3/1/99)
MICROCAP FUND - B - LOAD<F3> 81.1 - - 88.8 (3/1/99)
RUSSELL 2000 INDEX<F1> 17.4 5.9 12.4 11.6 (8/1/95)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A (retail class) B = Series B (retail class)
<F1> The Russell 2000 Index, an unmanaged index, consists of the smallest 2,000
companies in a group of 3,000 U.S. companies in the Russell 3000 Index, as
ranked by total market capitalization.
<F2> Reflects maximum sales charge of 5.50%.
<F3> Reflects maximum applicable deferred sales charge.
The Index figures do not reflect any fees or expenses. An investment cannot be
made directly in an index.
Recent returns were primarily achieved during favorable market conditions,
especially within the technology sector and may not be sustainable. The Fund's
performance was also enhanced substantially by its participation in investment
opportunities in initial public offerings (IPOs) which may not be available in
the future. As the Fund's assets grow, the impact of IPOs on performance will
likely be reduced.
Small-capitalization funds typically carry additional risks, since smaller
companies generally have a higher risk of failure, and, historically, their
stocks have experienced a greater degree of market volatility than stocks on
average.
Series A shares have a 5.50% maximum sales load and are subject to
an annual 0.25% service organization fee. The load performance for the Series A
shares has been restated to reflect the impact of the current sales charge.
Series B shares have a 5.00% maximum deferred sales charge and are subject to an
annual 0.25% service organization fee and an annual 0.75% 12b-1 fee. Performance
reflects fee waivers in effect. In the absence of fee waivers, total return
would be reduced.
TOP 5 EQUITY HOLDINGS 10/31/00
--------------------------------------------------------------------------------
REMEC, INC. 3.9%
--------------------------------------------------------------------------------
PURCHASEPRO.COM, INC. 3.5%
--------------------------------------------------------------------------------
AEROFLEX, INC. 3.3%
--------------------------------------------------------------------------------
UNIVERSITY OF PHOENIX ONLINE, INC. 2.8%
--------------------------------------------------------------------------------
CAREER EDUCATION CORPORATION 2.5%
--------------------------------------------------------------------------------
Portfolio holdings are subject to change and are not a representation of the
Fund's entire portfolio holdings.
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$368,148,239
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF ASSETS AND LIABILITIES (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE
DATA) OCTOBER 31, 2000
<TABLE>
<CAPTION>
BALANCED BALANCED GROWTH
INCOME GROWTH AND INCOME
FUND FUND FUND
-------- -------- ----------
ASSETS:
<S> <C> <C> <C>
Investments, at value (cost $83,219, $173,966, $511,966, $38,242,
$285,605, $410,120, $268,886, $206,803, $51,996, respectively) $ 94,358 $216,468 $708,585
Foreign currency, at value (cost $89) - - --
Collateral received for securities loaned - - --
Cash - - --
Income receivable 756 1,582 672
Capital shares sold 74 160 1,490
Receivable for securities sold 757 3,150 12,170
Deferred organization costs - - --
Other assets 43 23 27
-------- -------- --------
Total Assets 95,988 221,383 722,944
-------- -------- --------
LIABILITIES:
Payable for securities purchased 705 1,267 9,926
Payable to custodian - - --
Capital shares redeemed 42 63 504
Payable for return of collateral received on securities loaned - - --
Payable to affiliates 66 218 602
Payable for distribution and services fees - - --
Written options, at value - - --
Accrued expenses and other liabilities 55 54 317
-------- -------- --------
Total Liabilities 868 1,602 11,349
-------- -------- --------
NET ASSETS $ 95,120 $219,781 $711,595
======== ======== ========
NET ASSETS CONSIST OF:
Capital stock $ 83,551 $144,879 $442,915
Undistributed net investment income (loss) 281 408 1,283
Undistributed accumulated net realized gains (losses) on investments 149 31,992 70,778
Unrealized net appreciation (depreciation) on:
Investments 11,139 42,502 196,619
Futures contracts - - --
Foreign currency - - --
-------- -------- --------
Total Net Assets $ 95,120 $219,781 $711,595
======== ======== ========
Series A:
Net assets $ 11,618 $ 54,380 $183,049
Shares authorized ($.0001 par value) 100,000 500,000 500,000
Shares issued and outstanding 1,019 1,621 3,862
Net asset value and redemption price per share <F1> $ 11.40 $ 33.55 $ 47.40
======== ======== ========
Maximum offering price per share $ 12.06 $ 35.50 $ 50.16
======== ======== ========
Series B:
Net assets $ 5,027 $ 2,243 $ 3,718
Shares authorized ($.0001 par value) 100,000 500,000 500,000
Shares issued and outstanding 440 67 79
Net asset value and offering price per share <F1><F3> $ 11.42 $ 33.62 $ 47.12
======== ======== ========
Series Y:
Net assets
Shares authorized ($.0001 par value)
Shares issued and outstanding
Net asset value, redemption price and offering price per share <F1>
Series Institutional:
Net assets $ 78,475 $163,158 $524,828
Shares authorized ($.0001 par value) 100,000 500,000 500,000
Shares issued and outstanding 6,869 4,855 11,056
Net asset value, redemption price and offering price per share <F1> $ 11.42 $ 33.61 $ 47.47
======== ======== ========
</TABLE>
<F1> Amounts may not recalculate due to rounding.
<F2> No par value.
<F3> Redemption price of Series B Shares varies based on length of time held.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF ASSETS AND LIABILITIES
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE
DATA) OCTOBER 31, 2000
<TABLE>
<CAPTION>
LARGE
EQUITY RELATIVE EQUITY CAP CORE LARGE CAP INTERNATIONAL
INCOME VALUE INDEX EQUITY GROWTH VALUE
FUND FUND FUND FUND FUND FUND
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost $83,219,
$173,966, $511,966, $38,242,
$285,605, $410,120, $268,886, $206,803,
$51,996, respectively) $54,034 $526,127 $782,080 $387,990 $341,901 $ 49,758
Foreign currency, at value (cost $89) - - - - - 87
Collateral received for securities loaned 4,181 - - - - -
Cash - - - - - -
Income receivable 97 893 617 279 199 298
Capital shares sold 2 208 884 446 389 2,416
Receivable for securities sold - - 435 5,077 - 51
Deferred organization costs 10 - - - - -
Other assets 2 16 53 21 21 16
---------- ---------- ---------- ---------- ---------- ----------
Total Assets 58,326 527,244 784,069 393,813 342,510 52,626
---------- ---------- ---------- ---------- ---------- ----------
LIABILITIES:
Payable for securities purchased - - - 1,068 - -
Payable to custodian 8 219 - - 392 -
Capital shares redeemed 110 341 1,350 212 100 127
Payable for return of collateral received
on securities loaned 4,181 - - - - -
Payable to affiliates 60 551 262 313 358 60
Payable for distribution and services fees 1 12 - - 21 -
Written options, at value - - - - 175 -
Accrued expenses and other liabilities 11 20 206 339 22 276
---------- ---------- ---------- ---------- ---------- ----------
Total Liabilities 4,371 1,143 1,818 1,932 1,068 463
---------- ---------- ---------- ---------- ---------- ----------
NET ASSETS $53,955 $526,101 $782,251 $391,881 $341,442 $ 52,163
========== ========== ========== ========== ========== ==========
NET ASSETS CONSIST OF:
Capital stock $35,441 $281,426 $405,022 $229,980 $199,010 $ 66,030
Undistributed net investment income (loss) 15 439 554 (5) - (5)
Undistributed accumulated net realized
gains (losses) on investments 2,707 3,714 4,685 42,802 7,334 (11,585)
Unrealized net appreciation (depreciation) on:
Investments 15,792 240,522 371,960 119,104 135,098 (2,238)
Futures contracts - - 30 - - -
Foreign currency - - - - - (39)
---------- ---------- ---------- ---------- ---------- ----------
Total Net Assets $53,955 $526,101 $782,251 $391,881 $341,442 $ 52,163
========== ========== ========== ========== ========== ==========
SERIES A:
Net assets $ 826 $ 42,853 $138,440 $ 51,232 $ 1,177 $ 5,028
Shares authorized ($.0001 par value) 25,000 unlimited<F2> 500,000 500,000 unlimited<F2> 500,000
Shares issued and outstanding 120 1,484 1,470 1,182 45 304
Net asset value and redemption
price per share<F1> $ 6.87 $ 28.87 $ 94.17 $ 43.33 $ 25.92 $ 16.56
========== ========== ========== ========== ========== ==========
Maximum offering price per share $ 7.27 $ 30.55 $ 99.65 $ 45.85 $ 27.43 $ 17.52
========== ========== ========== ========== ========== ==========
SERIES B:
Net assets $ 650 $ 15,537 $ 11,214 $ 1,483 $100,689 $ 442
Shares authorized ($.0001 par value) 25,000 unlimited<F2> 500,000 500,000 unlimited<F2> 500,000
Shares issued and outstanding 95 540 119 35 3,884 27
Net asset value and offering
price per share<F1><F3> $ 6.85 $ 28.78 $ 93.96 $ 42.80 $ 25.92 $ 16.31
========== ========== ========== ========== ========== ==========
SERIES Y:
Net assets $ 98
Shares authorized ($.0001 par value) 25,000
Shares issued and outstanding 14
Net asset value, redemption price and
offering price per share<F1> $ 6.88
==========
SERIES INSTITUTIONAL:
Net assets $52,381 $467,711 $632,597 $339,166 $239,576 $46,693
Shares authorized ($.0001 par value) 50,000 unlimited<F2> 500,000 500,000 unlimited<F2> 500,000
Shares issued and outstanding 7,623 16,178 6,708 7,709 9,210 2,798
Net asset value, redemption price and
offering price per share<F1> $ 6.87 $ 28.91 $ 94.31 $ 44.00 $ 26.01 $ 16.69
========== ========== ========== ========== ========== ==========
</TABLE>
<F1> Amounts may not recalculate due to rounding.
<F2> No par value.
<F3> Redemption price of Series B Shares varies based on length of
time held.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF ASSETS AND LIABILITIES
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
OCTOBER 31, 2000
<TABLE>
<CAPTION>
SMALL CAP
INTERNATIONAL MIDCAP MIDCAP SMALL CAP CORE SCIENCE &
GROWTH INDEX CORE EQUITY INDEX EQUITY TECHNOLOGY MICROCAP
FUND FUND FUND FUND FUND FUND FUND
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost
$138,299, $118,445, $447,742,
$70,847, $125,725, $116,652,
$320,723, respectively) $143,388 $128,313 $532,452 $ 79,102 $149,179 $141,519 $378,345
Foreign currency,
at value (Cost $2,350) 2,354 - - - - - -
Collateral received for
securities loaned 8,524 - - - 27,104 - -
Cash 89 - - 1 - 478 -
Income receivable 243 93 305 21 46 45 349
Capital shares sold 343 205 557 3 139 292 268
Receivable for securities sold 2,442 140 30,339 - 3,523 - 4,400
Deferred organization costs - - - - - - -
Other assets 9 34 23 1 23 13 19
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Assets 157,392 128,785 563,676 79,128 180,014 142,347 383,381
---------- ---------- ---------- ---------- ---------- ---------- ----------
LIABILITIES:
Payable for securities purchased 5,286 - 18,049 - 2,529 2,813 14,103
Payable for foreign currency 85 - - - - - -
Payable to custodian - - - - 210 - -
Capital shares redeemed 224 3 339 38 89 1,565 80
Payable for return of collateral
received on securities loaned 8,524 - - - 27,104 - -
Payable to affiliates 209 42 502 48 131 168 557
Payable for distribution
and service fees 23 - - - 4 9 -
Payable for administrative
services fees - - - 22 6 - -
Options written, at value - - - - - 589 -
Accrued expenses and
other liabilities 16 36 181 15 13 27 493
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Liabilities 14,367 81 19,071 123 30,086 5,171 15,233
---------- ---------- ---------- ---------- ---------- ---------- ----------
NET ASSETS $143,025 $128,704 $544,605 $ 79,005 $149,928 $137,176 $368,148
========== ========== ========== ========== ========== ========== ==========
NET ASSETS CONSIST OF:
Capital stock $123,896 $108,101 $292,959 $ 64,010 $ 96,699 $114,494 $206,723
Undistributed net
investment income (loss) 5 65 (5) - 48 - (5)
Undistributed accumulated net
realized gains (losses)
on investments 14,064 10,866 166,941 6,740 29,727 (1,849) 103,808
Unrealized net appreciation
(depreciation) on:
Investments 5,089 9,868 84,710 8,255 23,454 24,531 57,622
Futures contracts - (196) - - - - -
Foreign currency (29) - - - - - -
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Net Assets $143,025 $128,704 $544,605 $ 79,005 $149,928 $137,176 $368,148
========== ========== ========== ========== ========== ========== ==========
SERIES A:
Net assets $ 3,591 $ 1,918 $108,326 $ 177 $ 9,538 $ 1,944 $ 43,031
Shares authorized ($.0001 par value) 10,000 100,000 500,000 25,000 5,000 unlimited(2) 50,000
Shares issued and outstanding 241 153 1,983 14 542 100 1,377
Net asset value and redemption
rice per share<F1> 14.92 $ 12.56 $ 54.63 $ 12.23 $ 17.60 $ 19.43 $ 31.26
========== ========== ========== ========== ========== ========== ==========
Maximum offering price per share $ 15.79 $ 13.29 $ 57.81 $ 12.94 $ 18.62 $ 20.56 $ 33.08
========== ========== ========== ========== ========== ========== ==========
SERIES B:
Net assets $ 732 $ 905 $ 666 $ 1,331 $ 13,465 $ 2,136
Shares authorized ($.0001 par value) 50,000 100,000 500,000 50,000 unlimited<F2> 50,000
Shares issued and outstanding 51 72 12 79 695 69
Net asset value and offering price
per share<F1><F3> $ 14.38 $ 12.52 $ 53.97 $ 16.90 $ 19.36 $ 30.84
========== ========== ========== ========== ========== ========== ==========
SERIES Y:
Net assets $ 16,373 $ 18,057 $ 4,442
Shares authorized ($.0001 par value) 10,000 25,000 20,000
Shares issued and outstanding 1,100 1,481 253
Net asset value, redemption price
and offering price per share<F1> $ 14.89 $ 12.19 $ 17.55
========== ========== ========== ========== ========== ========== ==========
SERIES INSTITUTIONAL:
Net assets $122,329 $125,881 $435,613 $ 60,771 $134,617 $121,767 $322,981
Shares authorized ($.0001 par value) 10,000 100,000 500,000 50,000 35,000 unlimited<F2> 50,000
Shares issued and outstanding 8,087 10,026 7,846 4,963 7,514 6,231 10,147
Net asset value, redemption price
and offering price per share<F1> $ 15.13 $ 12.55 $ 55.52 $ 12.24 $ 17.92 $ 19.54 $ 31.83
========== ========== ========== ========== ========== ========== ==========
</TABLE>
<F1> Amounts may not recalculate due to rounding.
<F2> No par value.
<F3> Redemption price of Series B Shares varies based on length of time held.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
BALANCED INCOME FUND BALANCED GROWTH FUND
-------------------- --------------------
Year Year Year Year
ended ended ended ended
Oct. 31, Oct. 31, Oct. 31, Oct. 31,
2000 1999 2000 1999
-------- -------- -------- --------
OPERATIONS:
Net investment income $ 2,439 $ 1,404 $ 4,273 $ 4,649
Net realized gain (loss) on:
Investments (440) (452) 32,738 12,374
Foreign currency - - - -
Net change in unrealized
appreciation (depreciation) on:
Investments 6,310 2,065 5,378 (3,281)
Foreign currency - - - -
-------- -------- -------- --------
Net increase in net assets
resulting from operations 8,309 3,017 42,389 13,742
-------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Shares sold 69,344 32,182 80,625 65,070
Shares issued to owners in
reinvestment of dividends 2,575 1,347 16,237 12,405
Shares redeemed (45,971) (13,627) (138,139) (91,179)
-------- -------- -------- --------
Net increase (decrease) in
net assets resulting from
capital share transactions 25,948 19,902 (41,277) (13,704)
-------- -------- -------- --------
DISTRIBUTIONS TO SERIES A SHAREHOLDERS:
From net investment income (284) (312) (884) (953)
From net realized gains (227) (449) (2,820) (1,908)
-------- -------- -------- --------
(511) (761) (3,704) (2,861)
-------- -------- -------- --------
DISTRIBUTIONS TO SERIES B SHAREHOLDERS:
From net investment income (67) (9) (14) (3)
From net realized gains (46) - (42) -
-------- -------- -------- --------
(113) (9) (56) (3)
-------- -------- -------- --------
DISTRIBUTIONS TO SERIES Y SHAREHOLDERS:
From net investment income
From net realized gains
DISTRIBUTIONS TO SERIES INSTITUTIONAL
SHAREHOLDERS:
From net investment income (1,977) (1,044) (3,330) (3,692)
From net realized gains (922) (1,369) (9,415) (6,088)
-------- -------- -------- --------
(2,899) (2,413) (12,745) (9,780)
-------- -------- -------- --------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 30,734 19,736 (15,393) (12,606)
NET ASSETS:
Beginning of year 64,386 44,650 235,174 247,780
-------- -------- -------- --------
End of year (including
undistributed net investment
income of $281, $166, $408, $368,
$1,283, $832, $15, $20, $439,
$687, $554 and $570,
respectively) $95,120 $64,386 $219,781 $235,174
======== ======== ======== ========
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
GROWTH & INCOME EQUITY INCOME RELATIVE VALUE EQUITY INDEX
FUND FUND FUND FUND
----------------- ----------------- ----------------- -----------------
Year Year Eleven months Year Eleven months Year Year Year
ended ended ended ended ended ended ended ended
Oct. 31, Oct. 31, Oct. 31, Nov. 30, Oct. 31, Nov. 30, Oct. 31, Oct. 31,
2000 1999 2000 1999 2000 1999 2000 1999
-------- ------- -------- ------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 3,470 $ 6,818 $ 913 $ 2,088 $ 4,761 $ 3,714 $ 8,171 $ 7,373
Net realized gain (loss) on:
Investments 85,495 61,424 3,144 14,439 4,418 (704) 6,810 17,654
Foreign currency - - - - - - - -
Net change in unrealized
appreciation (depreciation) on:
Investments (5,442) 12,321 (3,513) (8,183) (8,477) 51,592 27,810 109,742
Foreign currency - - - - - - - -
-------- -------- -------- -------- -------- -------- -------- --------
Net increase in net assets resulting
from operations 83,523 80,563 544 8,344 702 54,602 42,791 134,769
-------- -------- -------- -------- -------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Shares sold 142,082 179,414 3,333 39,764 109,897 122,854 411,019 341,167
Shares issued to owners in
reinvestment of dividends 56,251 49,818 6,376 8,695 3,435 4,286 22,747 9,845
Shares redeemed (233,965) (191,334) (47,879) (36,985) (118,231) (85,918) (383,980) (322,755)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets
resulting from capital
share transactions (35,632) 37,898 (38,170) 11,474 (4,899) 41,222 49,786 28,257
-------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO SERIES A SHAREHOLDERS:
From net investment income (443) (1,524) (12) (26) (347) (307) (1,171) (1,277)
From net realized gains (15,918) (13,914) (189) (385) - (202) (3,195) (710)
-------- -------- -------- -------- -------- -------- -------- --------
(16,361) (15,438) (201) (411) (347) (509) (4,366) (1,987)
-------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO SERIES B SHAREHOLDERS:
From net investment income (0) (1) (4) (7) (112) (68) (14) (8)
From net realized gains (174) - (109) (125) - (33) (127) -
-------- -------- -------- -------- -------- -------- -------- --------
(174) (1) (113) (132) (112) (101) (141) (8)
-------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO SERIES Y SHAREHOLDERS:
From net investment income (1) (1)
From net realized gains (13) (8)
-------- --------
(14) (9)
-------- --------
DISTRIBUTIONS TO SERIES INSTITUTIONAL
SHAREHOLDERS:
From net investment income (2,544) (5,308) (885) (2,043) (4,550) (3,536) (6,977) (6,138)
From net realized gains (44,113) (35,752) (14,165) (24,394) - (1,548) (13,863) (2,753)
-------- -------- -------- -------- -------- -------- -------- --------
(46,657) (41,060) (15,050) (26,437) (4,550) (5,084) (20,840) (8,891)
-------- -------- -------- -------- -------- -------- -------- --------
TOTAL INCREASE (DECREASE) IN NET ASSETS (15,301) 61,962 (53,004) (7,171) (9,206) 90,130 67,230 152,140
NET ASSETS:
Beginning of year 726,896 664,934 106,959 114,130 535,307 445,177 715,021 562,881
-------- -------- -------- -------- -------- -------- -------- --------
End of year (including undistributed
net investment income of $281, $166,
$408, $368, $1,283, $832, $15, $20,
$439, $687, $554 and $570, respectively) $711,595 $726,896 $ 53,955 $106,959 $526,101 $535,307 $782,251 $715,021
======== ======== ======== ======== ======== ======== ======== ========
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
LARGE CAP LARGE CAP
CORE EQUITY FUND GROWTH FUND
------------------- -----------------------
Year Year Eleven months Year
ended ended ended ended
Oct. 31, Oct. 31, Oct. 31, Nov. 30,
2000 1999 2000 1999
-------- -------- -------- --------
OPERATIONS:
Net investment income (loss) $ (500) $ (302) $ (698) $ 212
Net realized gain (loss) on:
Investments 43,914 18,890 9,016 (1,646)
Foreign currency - - - -
Net change in unrealized
appreciation (depreciation) on:
Investments 25,284 25,991 16,005 54,037
Foreign currency - - - -
-------- -------- -------- --------
Net increase (decrease) in
net assets resulting
from operations 68,698 44,579 24,323 52,603
-------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Shares sold 277,904 218,241 84,797 79,638
Shares issued to owners in
reinvestment of dividends 15,065 22,498 - 3,395
Shares redeemed (306,375) (138,508) (44,323) (42,163)
-------- -------- -------- --------
Net increase (decrease) in
net assets resulting from
capital share transactions (13,406) 102,231 40,474 40,870
-------- -------- -------- --------
DISTRIBUTIONS TO SERIES A SHAREHOLDERS:
From net investment income - (28)
In excess of net investment income - -
From net realized gains (2,451) (4,421)
-------- --------
(2,451) (4,449)
-------- --------
DISTRIBUTIONS TO SERIES B SHAREHOLDERS:
From net investment income - - - (61)
In excess of net investment income - - - (6)
From net realized gains (42) - - (1,524)
-------- -------- -------- --------
(42) - - (1,591)
-------- -------- -------- --------
DISTRIBUTIONS TO SERIES Y SHAREHOLDERS:
From net investment income
In excess of net investment income
From net realized gains
DISTRIBUTIONS TO SERIES INSTITUTIONAL
SHAREHOLDERS:
From net investment income - (237) - (286)
In excess of net investment income - - - (111)
From net realized gains (15,710) (23,343) - (2,793)
-------- -------- -------- --------
(15,710) (23,580) - (3,190)
-------- -------- -------- --------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 37,089 118,781 64,797 88,692
NET ASSETS:
Beginning of year 354,792 236,011 276,645 187,953
-------- -------- -------- --------
End of year (including
undistributed net investment
income (loss) of $(5), $(4),
$0, $0, $(5), $176, $67, $608,
$65, $(5) and $(775),
respectively) $391,881 $354,792 $341,442 $276,645
======== ======== ======== ========
<F1> Commencement of operations.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF CHANGES IN NET ASSETS
(Amounts in thousands)
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL MIDCAP INDEX MIDCAP CORE
VALUE FUND GROWTH FUND FUND EQUITY FUND
----------------- ----------------- ------------ -----------------
Nov. 4,
Year Year Eleven months Year 1999<F1> Year Year
ended ended ended ended through ended ended
Oct. 31, Oct. 31, Oct. 31, Nov. 30, Oct. 31, Oct. 31, Oct. 31,
2000 1999 2000 1999 2000 2000 1999
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 174 $ 387 $ (7) $ 179 $ 993 $ (922) $ (103)
Net realized gain (loss) on:
Investments (2,410) (3,981) 13,800 10,365 10,866 217,428 38,420
Foreign currency (373) (189) (267) 36 - - -
Net change in unrealized appreciation
(depreciation) on:
Investments (3,256) 14,598 (22,320) 15,949 9,672 (27,891) (27,055)
Foreign currency (39) (8) (9) (19) - - -
--------- --------- --------- --------- --------- --------- ---------
Net increase (decrease) in net assets resulting
from operations (5,904) 10,807 (8,803) 26,510 21,531 188,615 11,262
--------- --------- --------- --------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Shares sold 31,898 20,267 73,506 22,687 118,677 151,004 255,663
Shares issued to owners in
reinvestment of dividends 147 691 6,986 2,611 823 8,062 4,422
Shares redeemed (34,671) (21,147) (26,949) (11,069) (11,399) (250,137) (411,662)
--------- --------- --------- --------- --------- --------- ---------
Net increase (decrease) in net assets
resulting from capital share transactions (2,626) (189) 53,543 14,229 108,101 (91,071) (151,577)
--------- --------- --------- --------- --------- --------- ---------
DISTRIBUTIONS TO SERIES A SHAREHOLDERS:
From net investment income (4) (122) (26) (8) (10) - -
In excess of net investment income - - - (3) - - -
From net realized gains - - (354) (178) - (1,850) (1,086)
--------- --------- --------- --------- --------- --------- ---------
(4) (122) (380) (189) (10) (1,850) (1,086)
--------- --------- --------- --------- --------- --------- ---------
DISTRIBUTIONS TO SERIES B SHAREHOLDERS:
From net investment income - - (4) - (1) - -
In excess of net investment income - - - - - - -
From net realized gains - - (72) (36) - (3) -
--------- --------- --------- --------- --------- --------- ---------
- - (76) (36) (1) (3) -
--------- --------- --------- --------- --------- --------- ---------
DISTRIBUTIONS TO SERIES Y SHAREHOLDERS:
From net investment income (77) (21)
In excess of net investment income - (8)
From net realized gains (1,003) (458)
--------- ---------
(1,080) (487)
--------- ---------
DISTRIBUTIONS TO SERIES INSTITUTIONAL
SHAREHOLDERS:
From net investment income (188) (767) (771) (232) (917) - -
In excess of net investment income - - - (88) - - -
From net realized gains - - (8,213) (3,385) - (6,917) (3,772)
--------- --------- --------- --------- --------- --------- ---------
(188) (767) (8,984) (3,705) (917) (6,917) (3,772)
--------- --------- --------- --------- --------- --------- ---------
TOTAL INCREASE (DECREASE) IN NET ASSETS (8,722) 9,729 34,220 36,322 128,704 88,774 (145,173)
NET ASSETS:
Beginning of year 60,885 51,156 108,805 72,483 - 455,831 601,004
--------- --------- --------- --------- --------- --------- ---------
End of year (including undistributed
net investment income (loss) of $(5), $(4),
$0, $0, $(5), $176, $67, $608, $65,
$(5) and $(775), respectively) $52,163 $60,885 $143,025 $108,805 $128,704 $544,605 $455,831
========= ========= ========= ========= ========= ========= =========
</TABLE>
<F1> Commencement of operations.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
SMALL CAP SCIENCE & TECHNOLOGY
SMALL CAP INDEX FUND CORE EQUITY FUND FUND MICROCAP FUND
------------------ ------------------ ------------------ ------------------
Eleven Dec. 30, Eleven Eleven Aug. 9,
months 1998<F1> months Year months 1999<F1> Year Year
ended through ended ended ended through ended ended
Oct. 31, Nov. 30, Oct. 31, Nov. 30, Oct. 31, Nov. 30, Oct. 31, Oct. 31,
2000 1999 2000 1999 2000 1999 2000 1999
-------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 77 $ 20 $ 346 $(401) $ (974) $ (71) $ (3,669) $ (1,572)
Net realized gain (loss) on:
Investments 6,829 741 31,087 2,841 (1,435) (414) 136,862 47,964
Foreign currency - - - - - - - -
Net change in unrealized appreciation
(depreciation) on:
Investments 6,540 1,715 5,810 19,705 14,820 9,711 23,319 29,718
Foreign currency - - - - - - - -
-------- -------- -------- -------- -------- -------- -------- --------
Net increase in net assets resulting
from operations 13,446 2,476 37,243 22,145 12,411 9,226 156,512 76,110
-------- -------- -------- -------- -------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Shares sold 14,326 72,276 21,669 27,162 101,794 33,789 147,553 53,050
Shares issued to owners in
reinvestment of dividends 913 18 2,233 621 - - 46,293 264
Shares redeemed (9,180) (14,330) (32,656) (92,663) (19,310) (734) (106,181) (41,236)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets
resulting from capital share transactions 6,059 57,964 (8,754) (64,880) 82,484 33,055 87,665 12,078
-------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO SERIES A SHAREHOLDERS:
From net investment income (0) - (4) (50) - - - -
From net realized gains (2) - (170) - - - (6,166) (44)
-------- -------- -------- -------- -------- -------- -------- --------
(2) - (174) (50) - - (6,166) (44)
-------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO SERIES B SHAREHOLDERS:
From net investment income (0) (6) - - - -
From net realized gains (21) - - - (62) -
-------- -------- -------- -------- -------- --------
(21) (6) - - (62) -
-------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO SERIES Y SHAREHOLDERS:
From net investment income (8) (6) (2) (108)
From net realized gains (200) - (49) -
-------- -------- -------- --------
(208) (6) (51) (108)
-------- -------- -------- --------
DISTRIBUTIONS TO SERIES INSTITUTIONAL
SHAREHOLDERS:
From net investment income (91) (13) (270) (546) - - - -
From net realized gains (620) - (2,115) - - - (42,827) (233)
-------- -------- -------- -------- -------- -------- -------- --------
(711) (13) (2,385) (546) - - (42,827) (233)
-------- -------- -------- -------- -------- -------- -------- --------
TOTAL INCREASE (DECREASE) IN NET ASSETS 18,584 60,421 25,858 (43,445) 94,895 42,281 195,122 87,911
NET ASSETS:
Beginning of year 60,421 - 124,070 167,515 42,281 - 173,026 85,115
-------- -------- -------- -------- -------- -------- -------- --------
End of year (including undistributed
net investment income (loss) of $0, $14,
$48, $0, $0, $0, $(5) and $(4), respectively) $79,005 $60,421 $149,928 $124,070 $137,176 $42,281 $368,148 $173,026
======== ======== ======== ======== ======== ======== ======== ========
</TABLE>
<F1> Commencement of operations.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
YEAR ENDED OCTOBER 31, 2000
BALANCED BALANCED GROWTH EQUITY
INCOME GROWTH & INCOME INCOME
FUND FUND FUND FUND<F1>
-------- -------- -------- --------
INVESTMENT INCOME:
Dividend income:
Domestic $ 574 $ 738 $ 8,945 $ 1,449
Foreign (net of withholding
taxes of $125) - - - -
Interest income:
Domestic 2,797 5,922 1,649 73
Foreign - - - -
Income from securities lending - - - 5
Other income - 5 - -
-------- -------- -------- --------
3,371 6,665 10,594 1,527
-------- -------- -------- --------
EXPENSES:
Investment advisory fees 670 1,735 5,295 417
Administration fees 95 246 751 111
Fund accounting fees 51 94 104 5
Transfer agent fees and expenses 36 74 190 43
Service organization fees - Series A 30 135 461 -
Service organization fees - Series B 9 3 7 -
Service organization fees - Fund level - - - -
Administrative services fees -
Series Institutional - - - 162
12b-1 fees - Series A - - - 3
12b-1 fees - Series B 27 10 20 6
Custody fees 45 106 113 28
Federal and state registration fees 46 37 53 8
Professional fees 42 45 45 9
Reports to shareholders 20 37 105 21
Amortization of organization costs 9 - - 7
Directors' fees and expenses 7 8 8 3
Other 2 6 13 8
-------- -------- -------- --------
Total expenses before waiver 1,089 2,536 7,165 831
Less: Waiver of investment
advisory fees (157) (144) (41) -
Waiver of administrative
service fees -
Series Institutional - - - (162)
Waiver of administration
fees - - - (55)
-------- -------- -------- --------
(157) (144) (41) (217)
-------- -------- -------- --------
Net Expenses 932 2,392 7,124 614
-------- -------- -------- --------
NET INVESTMENT INCOME (LOSS) 2,439 4,273 3,470 913
-------- -------- -------- --------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments (440) 32,738 85,495 3,144
Written options - - - -
Foreign currency - - - -
Net change in unrealized appreciation
(depreciation) on:
Investments 6,310 5,378 (5,442) (3,513)
Foreign currency - - - -
-------- -------- -------- --------
Net gain (loss) on investments,
written options and foreign
currency 5,870 38,116 80,053 (369)
-------- -------- -------- --------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $8,309 $42,389 $83,523 $ 544
======== ======== ======== ========
<F1> Results shown are for the eleven month period ended October 31, 2000.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
YEAR ENDED OCTOBER 31, 2000
<TABLE>
<CAPTION>
RELATIVE EQUITY LARGE CAP LARGE CAP INTERNATIONAL
VALUE INDEX CORE EQUITY GROWTH VALUE
FUND<F1> FUND FUND FUND<F1> FUND
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend income:
Domestic $ 9,391 $ 8,739 $ 1,929 $ 2,261 $ -
Foreign (net of withholding taxes of $125) - - - - 1,021
Interest income:
Domestic 962 2,853 1,302 714 128
Foreign - - - - -
Income from securities lending - - - - -
Other income - 22 - - -
--------- --------- --------- --------- ---------
10,353 11,614 3,231 2,975 1,149
--------- --------- --------- --------- ---------
EXPENSES:
Investment advisory fees 3,692 2,021 2,836 2,271 825
Administration fees 542 861 402 333 65
Fund accounting fees 109 126 77 80 58
Transfer agent fees and expenses 143 167 74 91 39
Service organization fees - Series A - 364 129 - 15
Service organization fees - Series B - 22 3 - 1
Service organization fees - Fund level 1,230 - - 758 -
Administrative services fees - Series Institutional - - - - -
12b-1 fees - Series A 112 - - 1 -
12b-1 fees - Series B 36 65 10 235 2
Custody fees 123 110 69 76 52
Federal and state registration fees 28 51 58 31 25
Professional fees 15 44 44 17 4
Reports to shareholders 43 76 37 41 12
Amortization of organization costs - - - 31 -
Directors' fees and expenses 6 7 7 6 8
Other 11 51 7 5 4
--------- --------- --------- --------- ---------
Total expenses before waiver 6,090 3,965 3,753 3,976 1,154
Less: Waiver of investment advisory fees - (522) (22) - (179)
Waiver of service organization fees - Fund level (498) - (303) -
Waiver of administrative service fees -
Series Institutional - - - - -
Waiver of administration fees - - - - -
--------- --------- --------- --------- ---------
(498) (522) (22) (303) (179)
--------- --------- --------- --------- ---------
Net Expenses 5,592 3,443 3,731 3,673 975
--------- --------- --------- --------- ---------
NET INVESTMENT INCOME (LOSS) 4,761 8,171 (500) (698) 174
--------- --------- --------- --------- ---------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments 4,418 6,810 43,914 8,295 (2,410)
Written options - - - 721 (373)
Foreign currency - - - - -
Net change in unrealized appreciation (depreciation) on:
Investments (8,477) 27,810 25,284 16,005 (3,256)
Foreign currency - - - - (39)
--------- --------- --------- --------- ---------
Net gain (loss) on investments, written options
and foreign currency (4,059) 34,620 69,198 25,021 (6,078)
--------- --------- --------- --------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 702 $42,791 $68,698 $24,323 $(5,904)
========= ========= ========= ========= =========
</TABLE>
<F1> Results shown are for the eleven month period ended October 31, 2000.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
YEAR ENDED OCTOBER 31, 2000
<TABLE>
INTERNATIONAL MIDCAP MIDCAP CORE SMALL CAP SMALL CAP SCIENCE &
GROWTH INDEX EQUITY INDEX CORE EQUITY TECHNOLOGY MICROCAP
FUND<F1> FUND<F2> FUND FUND<F1> FUND<F1> FUND<F1> FUND
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend income:
Domestic $ - $ 1,010 $ 2,246 $ 484 $ 738 $ 73 $ 800
Foreign (net of witholding taxes of $5) 1,392 - - - - - -
Interest income:
Domestic 187 485 1,795 89 667 393 1,398
Foreign - - - - - -
Income from securities lending 47 - - - 336 - -
Other income - - 64 - - - -
-------- -------- -------- -------- -------- -------- --------
1,626 1,495 4,105 573 1,741 466 2,198
-------- -------- -------- -------- -------- -------- --------
EXPENSES:
Investment advisory fees 1,228 248 3,763 263 1,033 900 5,061
Administrative service fees - Series Y 43 - - 45 11 - -
Administrative service fees - Series Institutional 312 - - 152 372 - -
Administration fees 246 105 534 132 275 110 359
Custody fees 214 66 100 33 69 25 81
Transfer agent fees and expenses 39 36 188 25 45 27 61
Reports to shareholders 21 11 84 16 22 16 15
12b-1 fees - Series A 11 - - - 27 1 -
12b-1 fees - Series B 7 3 3 - 11 69 9
Professional fees 17 58 43 14 18 13 45
Federal and state registration fees 12 41 31 - 14 57 40
Fund accounting fees 2 51 82 25 6 61 68
Directors' fees and expenses 2 7 7 3 3 6 9
Service organization fees - Series A - 3 257 - - - 103
Service organization fees - Series B - 1 1 - - - 3
Service organization fees - Fund Level - - - - - 250 -
Amortization of organization costs - - - - - - 4
Other 8 23 15 5 12 2 9
-------- -------- -------- -------- -------- -------- --------
Total expenses before waiver 2,162 653 5,108 713 1,918 1,537 5,867
Less: Waiver of investment advisory fees (68) (151) (81) - - - -
Waiver of service organization fees -
Series Institutional - - - - - (97) -
Waiver of administrative services fees -
Fund Level (312) - - (152) (372) - -
Waiver of administration fees (123) - - (65) (137) - -
Waiver of custody fees (26) - - - (14) - -
-------- -------- -------- -------- -------- -------- --------
(529) (151) (81) (217) (523) (97) -
-------- -------- -------- -------- -------- -------- --------
Net Expenses 1,633 502 5,027 496 1,395 1,440 5,867
-------- -------- -------- -------- -------- -------- --------
NET INVESTMENT INCOME (LOSS) (7) 993 (922) 77 346 (974) (3,669)
-------- -------- -------- -------- -------- -------- --------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments 13,800 10,866 217,428 6,829 31,087 (2,367) 136,862
Written options - - - - - 932 -
Foreign currency (267) - - - - - -
Net change in unrealized appreciation
(depreciation) on:
Investments (22,320) 9,672 (27,891) 6,540 5,810 14,820 23,319
Foreign currency (9) - - - - - -
-------- -------- -------- -------- -------- -------- --------
Net gain (loss) on investments, written options
and foreign currency investments (8,796) 20,538 189,537 13,369 36,897 13,385 160,181
-------- -------- -------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ (8,803) $21,531 $188,615 $13,446 $37,243 $12,411 $156,512
======== ======== ======== ======== ======== ======== ========
</TABLE>
<F1> Results shown are for the eleven month period ended October 31, 2000.
<F2> Results shown are for the period November 4, 1999 (commencement of
operations) through October 31, 2000.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
INSTITUTIONAL
EQUITY FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
-------------------------------------- -------------------------------------
Net Realized
Net and Unrealized Dividends
Asset Value, Net Gains or Total from from Net Distributions
Beginning Investment (Losses) on Investment Investment from Gains Total
of Period Income Securities Operations Income Capital Distributions
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
BALANCED INCOME
-----------------------------------------------------------------------------------------------------------------------------------
Dec. 1, 1997<F1> through Oct. 31, 1998 $10.00 $0.30<F10> $0.96 $1.26 $(0.25) $ - $(0.25)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 11.01 0.31 0.38 0.69 (0.30) (0.44) (0.74)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 10.96 0.31 0.65 0.96 (0.30) (0.20) (0.50)
-----------------------------------------------------------------------------------------------------------------------------------
BALANCED GROWTH
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 25.90 0.55<F11> 2.62 3.17 (0.53) (0.55) (1.08)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 27.99 0.66 4.20 4.86 (0.66) (1.68) (2.34)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 30.51 0.62 1.86 2.48 (0.64) (2.50) (3.14)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 29.85 0.58 1.19 1.77 (0.56) (0.95) (1.51)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 30.11 0.64 5.15 5.79 (0.62) (1.67) (2.29)
-----------------------------------------------------------------------------------------------------------------------------------
GROWTH AND INCOME
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 27.63 0.50<F11> 6.61 7.11 (0.47) (1.19) (1.66)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 33.08 0.46 8.94 9.40 (0.47) (2.73) (3.20)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 39.28 0.47 6.55 7.02 (0.45) (1.39) (1.84)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 44.46 0.41 4.92 5.33 (0.46) (3.21) (3.67)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 46.12 0.26<F10> 5.21 5.47 (0.22) (3.90) (4.12)
-----------------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME
-----------------------------------------------------------------------------------------------------------------------------------
Feb. 27, 1997<F1> through Nov. 30, 1997 10.00 0.20 1.55 1.75 (0.19) - (0.19)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 11.56 0.19 0.98 1.17 (0.20) (2.29) (2.49)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 10.24 0.16 (0.18) (0.02) (0.16) (2.23) (2.39)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 7.83 0.09 0.16 0.25 (0.10) (1.11) (1.21)
-----------------------------------------------------------------------------------------------------------------------------------
RELATIVE VALUE
-----------------------------------------------------------------------------------------------------------------------------------
Aug. 18, 1997<F1> through Nov. 30, 1997 22.67 0.08 0.81 0.89 (0.07) - (0.07)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 23.49 0.18 3.65 3.83 (0.23) (0.82) (1.05)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 26.27 0.23 2.96 3.19 (0.23) (0.11) (0.34)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 29.12 0.26 (0.19) 0.07 (0.28) - (0.28)
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Supplemental Data and Ratios
---------------------------------------------------
Ratio of Net
Net Assets, Ratio of Net Investment
Net Asset End of Expenses Income Portfolio
Value, End Total Period to Average to Average Turnover
of Period Return (000s) Net Assets Net Assets Rate<F12>
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
BALANCED INCOME
-----------------------------------------------------------------------------------------------------------------------------------
Dec. 1, 1997<F1> through Oct. 31, 1998 $11.01 12.70%<F2> $ 34,036 0.75%<F3><F5> 3.07%<F3> 58.33%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 10.96 6.34% 49,728 0.93%<F5> 2.84% 48.46%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 11.42 8.99% 78,475 0.97%<F5> 2.81% 82.13%
-----------------------------------------------------------------------------------------------------------------------------------
BALANCED GROWTH
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 27.99 12.56% 129,415 0.75%<F6> 2.05% 63.91%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 30.51 18.39% 164,382 0.75%<F6> 2.31% 69.90%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 29.85 8.83% 188,123 0.75%<F6> 2.16% 56.44%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 30.11 5.87% 180,737 0.93%<F6> 1.84% 69.42%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 33.61 19.94% 163,158 0.97%<F6> 1.91% 78.63%
-----------------------------------------------------------------------------------------------------------------------------------
GROWTH AND INCOME
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 33.08 26.90% 226,888 0.90%<F7> 1.67% 51.37%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 39.28 30.83% 366,020 0.87%<F7> 1.34% 31.36%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 44.46 18.35% 474,603 0.87%<F7> 1.11% 48.56%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 46.12 12.04% 531,257 0.92%<F7> 0.99% 62.20%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 47.47 12.83% 524,828 0.94%<F7> 0.56% 89.36%
-----------------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME
-----------------------------------------------------------------------------------------------------------------------------------
Feb. 27, 1997<F1> through Nov. 30, 1997 11.56 17.64%<F2> 131,919 0.15%<F3><F8> 2.51%<F3> 48.33%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 10.24 12.00% 111,866 0.71%<F8> 1.94% 98.32%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 7.83 0.23% 104,762 0.98%<F8> 1.90% 81.84%
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 6.87 3.96%<F2> 52,381 1.09%<F3><F8> 1.66%<F3> 32.22%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
RELATIVE VALUE
-----------------------------------------------------------------------------------------------------------------------------------
Aug. 18, 1997<F1> through Nov. 30, 1997 23.49 3.93%<F2> 312,056 1.00%<F3><F9> 1.35%<F3> 18.00%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 26.27 16.95% 386,405 1.04%<F9> 0.95% 26.00%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 29.12 12.20% 466,203 1.05%<F9> 0.77% 11.00%
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 28.91 0.25%<F2> 467,711 1.11%<F3><F9> 1.00%<F3> 7.10%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> Not annualized.
<F3> Annualized.
<F4> Effective in 2000, the Fund's fiscal year end was changed to October 31
from November 30.
<F5> Without fees waived, ratios of net expenses to average net assets for the
fiscal years ended October 31, 2000, 1999 and the period ended October 31,
1998 would have been 1.14%, 1.23%, 1.38%, respectively.
<F6> Without fees waived, ratios of net expenses to average net assets for the
fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would have been
1.03%, 1.00%, 0.99%, 1.00%, 1.03%, respectively.
<F7> Without fees waived, ratios of net expenses to average net assets for the
fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would have been
0.95%, 0.93%, 0.94%, 0.94%, 0.98%, respectively.
<F8> Without fees waived, ratios of net expenses to average net assets for the
period ended October 31, 2000, the fiscal years ended November 30, 1999,
1998 and the period ended November 30, 1997 would have been 1.49%, 1.38%,
1.37%, 1.38%, respectively.
<F9> Without fees waived, ratios of net expenses to average net assets for the
period ended October 31, 2000, the fiscal years ended November 30, 1999,
1998 and the period ended November 30, 1997 would have been 1.21%, 1.21%,
1.24%, 1.20%, respectively.
<F10> Net investment income (loss) per share represents net investment income
divided by the average shares outstanding throughout the period.
<F11> Net investment income (loss) per share is calculated using ending balances
prior to consideration of adjustments for permanent book and tax
differences.
<F12> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
INSTITUTIONAL
EQUITY FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
-------------------------------------- -------------------------------------
Net Realized
Net and Unrealized Dividends
Asset Value, Net Gains or Total from from Net Distributions
Beginning Investment (Losses) on Investment Investment from Gains Total
of Period Income Securities Operations Income Capital Distributions
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 $41.08 $0.91<F10> $ 8.68 $ 9.59 $(0.89) $(0.35) $(1.24)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 49.43 0.95 14.33 15.28 (0.94) (0.61) (1.55)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 63.16 1.02<F10> 12.59 13.61 (1.00) (1.11) (2.11)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 74.66 1.04 17.75 18.79 (1.03) (0.47) (1.50)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 91.95 1.04<F9> 4.41 5.45 (1.01) (2.08) (3.09)
-----------------------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 25.61 (0.01)<F10> 4.83 4.82 - - -
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 30.43 0.04<F10> 6.31 6.35 - (1.30) (1.30)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 35.48 0.07<F9> 5.70 5.77 (0.03) (5.17) (5.20)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 36.05 (0.02)<F9> 6.47 6.45 (0.04) (4.04) (4.08)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 38.42 (0.04)<F9> 7.65 7.61 - (2.03) (2.03)
-----------------------------------------------------------------------------------------------------------------------------------
LARGE CAP GROWTH
-----------------------------------------------------------------------------------------------------------------------------------
Aug. 18, 1997<F1> through Nov. 30, 1997 16.46 0.03 0.73 0.76 (0.04) - (0.04)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 17.18 0.06 3.30 3.36 (0.07) (0.96) (1.03)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 19.51 0.07 4.83 4.90 (0.06)<F13> (0.45) (0.51)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 23.90 (0.03) 2.14 2.11 - - -
-----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL VALUE <F12>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 19.19 0.11<F10> 1.44 1.55 (0.10) (0.37) (0.47)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 20.27 0.10<F10> (1.10) (1.00) (0.17) (0.46) (0.63)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 18.64 0.24<F9> (3.16) (2.92) (0.09) (0.37) (0.46)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 15.26 0.09 3.62 3.71 (0.31) - (0.31)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 18.66 0.06<F9> (1.97) (1.91) (0.06) - (0.06)
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Supplemental Data and Ratios
---------------------------------------------------
Ratio of Net
Net Assets, Ratio of Net Investment
Net Asset End of Expenses Income Portfolio
Value, End Total Period to Average to Average Turnover
of Period Return (000s) Net Assets Net Assets Rate<F11>
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 $49.43 23.68% $212,072 0.41%<F5> 2.01% 7.48%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 63.16 31.38% 315,759 0.38%<F5> 1.66% 9.81%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 74.66 21.93% 452,752 0.33%<F5> 1.43% 2.91%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 91.95 25.32% 568,161 0.36%<F5> 1.17% 13.95%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 94.31 5.88% 632,597 0.37%<F5> 1.07% 6.46%
-----------------------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 30.43 18.82% 155,293 0.90%<F6> (0.04)% 56.75%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 35.48 21.56% 181,650 0.89%<F6> 0.09% 62.09%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 36.05 18.89% 197,798 0.89%<F6> 0.20% 51.82%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 38.42 18.18% 306,832 0.94%<F6> (0.06)% 59.35%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 44.00 20.24% 339,166 0.95%<F6> (0.10)% 60.18%
-----------------------------------------------------------------------------------------------------------------------------------
LARGE CAP GROWTH
-----------------------------------------------------------------------------------------------------------------------------------
Aug. 18, 1997<F1> through Nov. 30, 1997 17.18 4.59%<F2> 109,087 1.06%<F3><F7> 0.68%<F3> 60.00%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 19.51 20.91% 121,475 1.09%<F7> 0.37% 48.00%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 23.90 25.61% 186,177 1.11%<F7> 0.17% 28.00%
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 26.01 8.83%<F2> 239,576 1.13%<F3><F7> (0.15)%<F3> 34.63%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL VALUE<F12>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 20.27 8.21% 43,182 1.50%<F8> 0.62% 31.57%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 18.64 (5.10)% 57,206 1.50%<F8> 0.50% 97.09%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 15.26 (15.97)% 44,670 1.50%<F8> 1.37% 43.96%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 18.66 24.74% 54,423 1.56%<F8> 0.80% 45.50%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 16.69 (10.29)% 46,693 1.57%<F8> 0.32% 75.46%
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> Not annualized.
<F3> Annualized.
<F4> Effective in 2000, the Fund's fiscal year end was changed to October 31
from November 30.
<F5> Without fees waived, ratios of net expenses to average net assets for the
fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would have
been 0.43%, 0.43%, 0.44%, 0.45%, 0.48%, respectively.
<F6> Without fees waived, ratios of net expenses to average net assets for
the fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would
have been 0.96%, 0.95%, 0.96%, 0.96%, 0.98%, respectively.
<F7> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000, the fiscal years ended November 30,
1999, 1998 and the period ended November 30, 1997 would have been 1.23%,
1.27%, 1.29%, 1.26%, respectively.
<F8> Without fees waived, ratios of net expenses to average net assets for
the fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would
have been 1.86%, 1.85%, 1.92%, 2.25%, 2.36%, respectively.
<F9> Net investment income per share represents net investment income divided
by the average shares outstanding throughout the period.
<F10> Net investment income (loss) per share is calculated using ending
balances prior to consideration of adjustments for permanent book and tax
differences.
<F11> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F12> Effective September 2, 1997, Hansberger Global Investors assumed the
investment sub-advisory responsibilities of State Street Global Advisors.
<F13> Includes distribution in excess of net investment income of $0.01 per
share.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
INSTITUTIONAL
EQUITY FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
-------------------------------------- -------------------------------------
Net Realized
Net and Unrealized Dividends
Asset Value, Net Gains or Total from from Net Distributions Total
Beginning Investment (Losses) on Investment Investment from Gains Distri-
of Period Income Securities Operations Income Capital butions
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 $10.79 $0.06 $1.27 $1.33 $ - $ - $ -
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 12.12 0.01 0.33 0.34 (0.06)<F13> (0.31) (0.37)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 12.09 0.04 1.80 1.84 (0.10)<F13> (0.43) (0.53)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 13.40 0.06 4.58 4.64 (0.07)<F13> (0.75) (0.82)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 17.22 0.01<F10> (0.45) (0.44) (0.13) (1.52) (1.65)
-----------------------------------------------------------------------------------------------------------------------------------
MIDCAP INDEX
-----------------------------------------------------------------------------------------------------------------------------------
Nov. 4, 1999<F1> through October 31, 2000 10.00 0.08 2.55 2.63 (0.08) - (0.08)
-----------------------------------------------------------------------------------------------------------------------------------
MIDCAP CORE EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 41.47 (0.04)<F11> 4.74 4.70 - (4.59) (4.59)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 41.58 (0.11)<F11> 8.49 8.38 - (5.26) (5.26)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 44.70 (0.14)<F10> (2.09) (2.23) - (4.46) (4.46)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 38.01 0.02<F11> 0.60 0.62 - (0.31) (0.31)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 38.32 (0.05)<F10> 18.04 17.99 - (0.79) (0.79)
-----------------------------------------------------------------------------------------------------------------------------------
SMALL CAP INDEX
-----------------------------------------------------------------------------------------------------------------------------------
Dec. 30, 1998<F1> through Nov. 30, 1999 10.00 0.01 0.19 0.20 (0.01) - (0.01)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 10.19 0.02 2.19 2.21 (0.02) (0.14) (0.16)
-----------------------------------------------------------------------------------------------------------------------------------
SMALL CAP CORE EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 13.49 0.02 1.05 1.07 (0.02) (1.05) (1.07)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 13.49 0.01 2.50 2.51 (0.01) (0.82) (0.83)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 15.17 (0.02) (1.91) (1.93) - (1.22)<F14> (1.22)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 12.02 (0.03) 2.13 2.10 - (0.05) (0.05)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 14.07 0.05 4.10 4.15 (0.03) (0.27) (0.30)
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Supplemental Data and Ratios
---------------------------------------------------
Ratio of Net
Net Assets, Ratio of Net Investment
Net Asset End of Expenses Income Portfolio
Value, End Total Period to Average to Average Turnover
of Period Return (000s) Net Assets Net Assets Rate<F12>
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 $12.12 12.33% $ 52,181 1.14%<F5> 0.51% 77.63%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 12.09 2.91% 55,038 1.29%<F5> 0.09% 75.18%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 13.40 15.73% 60,647 1.28%<F5> 0.34% 88.95%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 17.22 36.98% 92,778 1.26%<F5> 0.28% 93.73%
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 15.13 (3.27)%<F2> 122,329 1.28%<F3><F5> 0.04%<F3> 90.01%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
MIDCAP INDEX
-----------------------------------------------------------------------------------------------------------------------------------
Nov. 4, 1999<F1> through October 31, 2000 12.55 26.62%<F2> 125,881 0.50%<F3><F6> 1.00%<F3> 44.52%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
MIDCAP CORE EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 41.58 12.58% 482,857 0.88%<F7> (0.10)% 103.34%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 44.70 22.44% 569,028 0.87%<F7> (0.25)% 97.40%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 38.01 (5.66)% 464,858 0.88%<F7> (0.32)% 77.39%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 38.32 1.56% 359,947 0.94%<F7> 0.04% 139.91%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 55.52 47.56% 435,613 0.95%<F7> (0.13)% 204.56%
-----------------------------------------------------------------------------------------------------------------------------------
SMALL CAP INDEX
-----------------------------------------------------------------------------------------------------------------------------------
Dec. 30, 1998<F1> through Nov. 30, 1999 10.19 2.01%<F2> 45,331 0.68%<F3><F8> 0.18%<F3> 35.27%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 12.24 21.93%<F2> 60,771 0.69%<F3><F8> 0.19%<F3> 31.54%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
SMALL CAP CORE EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 13.49 8.72% 171,295 0.96%<F9> 0.17% 65.85%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 15.17 19.77% 211,643 0.95%<F9> 0.01% 80.23%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 12.02 (13.90)% 129,591 0.95%<F9> (0.16)% 69.72%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 14.07 17.57% 111,643 0.96%<F9> (0.26)% 72.08%
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 17.92 30.01%<F2> 134,617 0.98%<F3><F9> 0.29%<F3> 91.35%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> Not annualized.
<F3> Annualized.
<F4> Effective in 2000, the Fund's fiscal year end was changed to October 31
from November 30.
<F5> Without fees waived, ratios of net expenses to average net assets for the
period ended October 31, 2000 and the fiscal years ended November 30,
1999, 1998, 1997, 1996 would have been 1.76%, 1.75%, 1.75%, 1.75%, 1.45%,
respectively.
<F6> Without fees waived, the ratio of net expenses to average net assets for
the period ended October 31, 2000 would have been 0.65%.
<F7> Without fees waived, ratios of net expenses to average net assets for the
fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would have
been 0.97%, 0.96%, 0.95%, 0.95%, 0.95%, respectively.
<F8> Without fees waived, ratios of net expenses to average net assets for the
period ended October 31, 2000 and the period ended November 30, 1999
would have been 1.09%, 1.13%, respectively.
<F9> Without fees waived, ratios of net expenses to average net assets for the
period ended October 31, 2000 and the fiscal years ended November 30,
1999, 1998, 1997, 1996 would have been 1.39%, 1.36%, 1.35%, 1.35%, 1.06%,
respectively.
<F10> Net investment income per share represents net investment income divided
by the average shares outstanding throughout the period.
<F11> Net investment income (loss) per share is calculated using ending
balances prior to consideration of adjustments for permanent book and tax
differences.
<F12> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F13> Includes distribution in excess of net investment income for the periods
ended November 30, 1999, 1998, 1997, of $0.02, $0.07, $0.02 per share,
respectively.
<F14> Includes distribution in excess of net realized gains of $0.03 per share.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
INSTITUTIONAL
EQUITY FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
-------------------------------------- -------------------------------------
Net Realized
Net and Unrealized Dividends
Asset Value, Net Gains or Total from from Net Distributions Total
Beginning Investment (Losses) on Investment Investment from Gains Distri-
of Period Loss Securities Operations Income Capital butions
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
SCIENCE & TECHNOLOGY
-----------------------------------------------------------------------------------------------------------------------------------
Aug. 9, 1999<F1> through Nov. 30, 1999 $10.00 $ - $ 4.56 $ 4.56 $ - $ - $ -
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 14.56 (0.13) 5.11 4.98 - - -
-----------------------------------------------------------------------------------------------------------------------------------
MICROCAP
-----------------------------------------------------------------------------------------------------------------------------------
Aug 1, 1995<F1> through June 30, 1996 10.00 (0.02) 6.14 6.12 (0.05) (0.62) (0.67)
-----------------------------------------------------------------------------------------------------------------------------------
July 1, 1996 through October 31, 1996 15.45 (0.07) 0.82 0.75 - - -
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 16.20 (0.15) 4.27 4.12 - (2.75) (2.75)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 17.57 (0.22) (3.19) (3.41) - (1.67) (1.67)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 12.49 (0.19)<F7> 9.79 9.60 - (0.03) (0.03)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 22.06 (0.31)<F7> 16.21 15.90 - (6.13) (6.13)
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Supplemental Data and Ratios
---------------------------------------------------
Ratio of Net
Net Assets, Ratio of Net Investment
Net Asset End of Expenses Income Portfolio
Value, End Total Period to Average to Average Turnover
of Period Return (000s) Net Assets Net Assets Rate<F8>
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
SCIENCE & TECHNOLOGY
-----------------------------------------------------------------------------------------------------------------------------------
Aug. 9, 1999<F1> through Nov. 30, 1999 $14.56 45.60%<F2> $ 40,936 1.69%<F3><F5> (0.94)%<F3> 16.00%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 19.54 34.20%<F2> 121,767 1.36%<F3><F5> (0.90)%<F3> 84.55%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
MICROCAP
-----------------------------------------------------------------------------------------------------------------------------------
Aug 1, 1995<F1> through June 30, 1996 15.45 63.93%<F2> 63,595 1.74%<F3><F6> (0.16)%<F3> 283.67%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
July 1, 1996 through October 31, 1996 16.20 4.85%<F2> 66,368 1.72%<F3><F6> (1.44)%<F3> 64.44%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 17.57 30.12% 103,840 1.70%<F6> (1.20)% 158.39%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 12.49 (21.51)% 72,696 1.74%<F6> (1.38)% 135.61%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 22.06 77.06% 150,898 1.76%<F6> (1.18)% 200.09%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 31.83 87.90% 322,981 1.71% (1.06)% 178.77%
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> Not annualized.
<F3> Annualized.
<F4> Effective in 2000, the Fund's fiscal year end was changed to October 31
from November 30.
<F5> Without fees waived, ratios of net expenses to average net assets for the
period ended October 31, 2000 and the period ended November 30, 1999 would
have been 1.46%, 1.84%, respectively.
<F6> Without fees waived, ratios of net expenses to average net assets for the
fiscal years ended October 31, 1999, 1998, 1997 and the periods ended
October 31 and June 30, 1996 would have been 1.77%, 1.81%, 1.78%, 1.79%,
1.97%, respectively.
<F7> Net investment loss per share is calculated using ending balances prior to
consideration of adjustments for permanent book and tax differences.
<F8> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
RETAIL A SHARE
EQUITY FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
-------------------------------------- -------------------------------------
Net Realized
Net and Unrealized Dividends
Asset Value, Net Gains or Total from from Net Distributions Total
Beginning Investment (Losses) on Investment Investment from Gains Distri-
of Period Income Securities Operations Income Capital butions
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
BALANCED INCOME
-----------------------------------------------------------------------------------------------------------------------------------
Dec. 1, 1997<F1> through Oct. 31, 1998 $10.00 $0.28<F11> $0.96 $1.24 $(0.24) $ - $(0.24)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 11.00 0.28 0.38 0.66 (0.28) (0.44) (0.72)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 10.94 0.28 0.65 0.93 (0.27) (0.20) (0.47)
-----------------------------------------------------------------------------------------------------------------------------------
BALANCED GROWTH
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 25.89 0.47<F12> 2.64 3.11 (0.47) (0.55) (1.02)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 27.98 0.58 4.19 4.77 (0.59) (1.68) (2.27)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 30.48 0.56 1.86 2.42 (0.58) (2.50) (3.08)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 29.82 0.49 1.19 1.68 (0.49) (0.95) (1.44)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 30.06 0.55 5.15 5.70 (0.54) (1.67) (2.21)
-----------------------------------------------------------------------------------------------------------------------------------
GROWTH AND INCOME
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 27.62 0.42<F12> 6.61 7.03 (0.39) (1.19) (1.58)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 33.07 0.37 8.92 9.29 (0.39) (2.73) (3.12)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 39.24 0.36 6.55 6.91 (0.35) (1.39) (1.74)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 44.41 0.29 4.92 5.21 (0.35) (3.21) (3.56)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 46.06 0.14<F11> 5.21 5.35 (0.11) (3.90) (4.01)
-----------------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME
-----------------------------------------------------------------------------------------------------------------------------------
Feb. 27, 1997<F1> through
November 30, 1997 10.00 0.16 1.57 1.73 (0.17)<F14> - (0.17)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 11.56 0.17 0.98 1.15 (0.18) (2.29) (2.47)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 10.24 0.13 (0.18) (0.05) (0.13) (2.23) (2.36)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 7.83 0.07 0.16 0.23 (0.08) (1.11) (1.19)
-----------------------------------------------------------------------------------------------------------------------------------
RELATIVE VALUE
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 15.02 0.27 4.01 4.28 (0.26) (0.01) (0.27)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 19.03 0.67 4.45 5.12 (0.28) (0.39) (0.67)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 23.48 0.11 3.66 3.77 (0.17) (0.82) (0.99)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 26.26 0.10 3.01 3.11 (0.16) (0.11) (0.27)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 29.10 0.20 (0.22) (0.02) (0.21) - (0.21)
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Supplemental Data and Ratios
---------------------------------------------------
Ratio of Net
Net Assets, Ratio of Net Investment
Net Asset End of Expenses Income Portfolio
Value, End Total Period to Average to Average Turnover
of Period Return<F10> (000s) Net Assets Net Assets Rate<F13>
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
BALANCED INCOME
-----------------------------------------------------------------------------------------------------------------------------------
Dec. 1, 1997<F1> through Oct. 31, 1998 $11.00 12.46%<F2> $10,614 1.00%<F3><F5> 2.82%<F3> 58.33%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 10.94 6.01% 13,087 1.18%<F5> 2.59% 48.46%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 11.40 8.73% 11,618 1.22%<F5> 2.56% 82.13%
-----------------------------------------------------------------------------------------------------------------------------------
BALANCED GROWTH
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 27.98 12.30% 29,034 1.00%<F6> 1.80% 63.91%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 30.48 18.07% 44,026 1.00%<F6> 2.06% 69.90%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 29.82 8.60% 59,657 1.00%<F6> 1.91% 56.44%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 30.06 5.56% 53,807 1.18%<F6> 1.59% 69.42%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 33.55 19.46% 54,380 1.22%<F6> 1.66% 78.63%
-----------------------------------------------------------------------------------------------------------------------------------
GROWTH AND INCOME
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 33.07 26.62% 71,310 1.15%<F7> 1.42% 51.37%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 39.24 30.47% 128,070 1.12%<F7> 1.09% 31.36%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 44.41 18.08% 190,331 1.12%<F7> 0.86% 48.56%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 46.06 11.78% 194,089 1.17%<F7> 0.74% 62.20%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 47.40 12.54% 183,049 1.19%<F7> 0.31% 89.36%
-----------------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME
-----------------------------------------------------------------------------------------------------------------------------------
Feb. 27, 1997<F1> through
November 30, 1997 11.56 17.42%<F2> 173 0.45%<F3><F8> 2.29%<F3> 48.33%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 10.24 11.69% 1,709 1.15%<F8> 1.51% 98.32%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 7.83 (0.05)% 1,336 1.28%<F8> 1.60% 81.84%
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 6.87 3.67%<F2> 826 1.39%<F3><F8> 1.36%<F3> 32.22%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
RELATIVE VALUE
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 19.03 28.86% 215,843 1.04%<F9> 1.71% 16.00%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 23.48 27.69% 37,748 1.01%<F9> 1.40% 18.00%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 26.26 16.67% 50,925 1.29%<F9> 0.70% 26.00%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 29.10 11.89% 54,825 1.30%<F9> 0.52% 11.00%
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 28.87 (0.07)%<F2> 42,853 1.36%<F3><F9> 0.75%<F3> 7.10%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> Not annualized.
<F3> Annualized.
<F4> Effective in 2000, the Fund's fiscal year end was changed to October 31
from November 30.
<F5> Without fees waived, ratios of net expenses to average net assets for the
fiscal years ended October 31, 2000, 1999 and the period ended October
31, 1998 would have been 1.39%, 1.48%, 1.63%, respectively.
<F6> Without fees waived, ratios of net expenses to average net assets for the
fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would have
been 1.28%, 1.25%, 1.24%, 1.25%, 1.28%, respectively.
<F7> Without fees waived, ratios of net expenses to average net assets for the
fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would have
been 1.20%, 1.18%, 1.19%, 1.19%, 1.23%, respectively.
<F8> Without fees waived, ratios of net expenses to average net assets for the
period ended October 31, 2000, the fiscal years ended November 30, 1999,
1998 and the period ended November 30, 1997 would have been 1.49%, 1.38%,
1.38%, 1.38%, respectively.
<F9> Without fees waived, ratios of net expenses to average net assets for the
period ended October 31, 2000 and the fiscal years ended November 30,
1999, 1998, 1997, 1996 would have been 1.46%, 1.46%, 1.49%, 1.21%, 1.24%,
respectively.
<F10> The total return calculation does not reflect the maximum sales charge of
5.50%.
<F11> Net investment income per share represents net investment income divided
by the average shares outstanding throughout the period.
<F12> Net investment income per share is calculated using ending balances prior
to consideration of adjustments for permanent book and tax differences.
<F13> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F14> Includes distribution in excess of net investment income of $0.01 per
share.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
RETAIL A SHARE
EQUITY FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
-------------------------------------- -------------------------------------
Net Realized
Net and Unrealized Dividends
Asset Value, Net Gains or Total from from Net Distributions Total
Beginning Investment (Losses) on Investment Investment from Gains Distri-
of Period Income (Loss) Securities Operations Income Capital butions
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 $41.07 $0.77<F12> $ 8.69 $ 9.46 $(0.78) $(0.35) $(1.13)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 49.40 0.80<F11> 14.33 15.13 (0.81) (0.61) (1.42)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 63.11 0.84 12.58 13.42 (0.84) (1.11) (1.95)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 74.58 0.80 17.75 18.55 (0.83) (0.47) (1.30)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 91.83 0.78 4.41 5.19 (0.77) (2.08) (2.85)
-----------------------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 25.58 (0.07)<F12> 4.81 4.74 - - -
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 30.32 (0.05)<F12> 6.30 6.25 - (1.30) (1.30)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 35.27 (0.02)<F11> 5.66 5.64 (0.02) (5.17) (5.19)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 35.72 (0.12)<F11> 6.42 6.30 (0.02) (4.04) (4.06)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 37.96 (0.15)<F11> 7.55 7.40 - (2.03) (2.03)
-----------------------------------------------------------------------------------------------------------------------------------
LARGE CAP GROWTH
-----------------------------------------------------------------------------------------------------------------------------------
March 31, 2000<F1> through
October 31, 2000<F4> 26.95 (0.03) (1.00) (1.03) - - -
-----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL VALUE<F14>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 19.15 0.07<F12> 1.43 1.50 (0.07) (0.37) (0.44)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 20.21 0.06<F12> (1.10) (1.04) (0.13) (0.46) (0.59)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 18.58 0.20<F11> (3.15) (2.95) (0.08) (0.37) (0.45)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 15.18 0.03 3.62 3.65 (0.30) - (0.30)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 18.53 0.01<F11> (1.97) (1.96) (0.01) - (0.01)
-----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 10.76 0.02 1.27 1.29 - - -
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 12.05 (0.02) 0.32 0.30 (0.05)<F15> (0.31) (0.36)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 11.99 0.01 1.77 1.78 (0.07)<F15> (0.43) (0.50)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 13.27 - 4.55 4.55 (0.04)<F15> (0.75) (0.79)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 17.03 (0.03)<F11> (0.45) (0.48) (0.11) (1.52) (1.63)
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Supplemental Data and Ratios
---------------------------------------------------
Ratio of Net
Net Assets, Ratio of Net Investment
Net Asset End of Expenses Income Portfolio
Value, End Total Period to Average to Average Turnover
of Period Return<F10> (000s) Net Assets Net Assets Rate<F13>
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 $49.40 23.36% $ 39,656 0.66%<F5> 1.76% 7.48%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 63.11 31.08% 76,866 0.63%<F5> 1.40% 9.81%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 74.58 21.63% 110,129 0.58%<F5> 1.18% 2.91%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 91.83 25.01% 142,247 0.61%<F5> 0.92% 13.95%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 94.17 5.60% 138,440 0.62%<F5> 0.82% 6.46%
-----------------------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 30.32 18.53% 16,636 1.15%<F6> (0.29)% 56.75%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 35.27 21.30% 25,043 1.14%<F6> (0.16)% 62.09%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 35.72 18.58% 38,213 1.14%<F6> (0.05)% 51.82%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 37.96 17.92% 47,238 1.19%<F6> (0.31)% 59.35%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 43.33 19.92% 51,232 1.20%<F6> (0.35)% 60.18%
-----------------------------------------------------------------------------------------------------------------------------------
LARGE CAP GROWTH
-----------------------------------------------------------------------------------------------------------------------------------
March 31, 20001 through
October 31, 2000<F4> 25.92 (3.82)%<F2> 1,177 1.40%<F3><F7> (0.75)%<F3> 34.63%
-----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL VALUE<F14>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 20.21 7.95% 3,769 1.75%<F8> 0.37% 31.57%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 18.58 (5.30)% 6,502 1.75%<F8> 0.25% 97.09%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 15.18 (16.16)% 6,486 1.75%<F8> 1.12% 43.96%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 18.53 24.48% 6,418 1.81%<F8> 0.56% 45.50%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 16.56 (10.57)% 5,028 1.82%<F8> 0.07% 75.46%
-----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 12.05 11.99% 2,573 1.44%<F9> 0.19% 77.63%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 11.99 2.58% 2,854 1.59%<F9> (0.20)% 75.18%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 13.27 15.33% 3,154 1.58%<F9> 0.02% 88.95%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 17.03 36.62% 3,939 1.56%<F9> (0.01)% 93.73%
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 14.92 (3.59)%<F2> 3,591 1.58%<F3><F9> (0.26)%<F3> 90.01%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> Not annualized.
<F3> Annualized.
<F4> Effective in 2000, the Fund's fiscal year end was changed to October 31
from November 30.
<F5> Without fees waived, ratios of net expenses to average net assets for the
fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would have
been 0.68%, 0.68%, 0.69%, 0.70%, 0.73%, respectively.
<F6> Without fees waived, ratios of net expenses to average net assets for the
fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would have
been 1.21%, 1.20%, 1.21%, 1.21%, 1.23%, respectively.
<F7> Without fees waived, the ratio of net expenses to average net assets for
the period ended October 31, 2000 would have been 1.49%.
<F8> Without fees waived, ratios of net expenses to average net assets for the
fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would have
been 2.11%, 2.10%, 2.16%, 2.50%, 2.61%, respectively.
<F9> Without fees waived, ratios of net expenses to average net assets for the
period ended October 31, 2000 and the fiscal years ended November 30,
1999, 1998, 1997, 1996 would have been 1.76%, 1.75%, 1.75%, 1.75%, 1.75%,
respectively.
<F10> The total return calculation does not reflect the maximum sales charge of
5.50%.
<F11> Net investment income (loss) per share represents net investment income
divided by the average shares outstanding throughout the period.
<F12> Net investment income (loss) per share is calculated using ending
balances prior to consideration of adjustments for permanent book and tax
differences.
<F13> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F14> Effective September 2, 1997, Hansberger Global Investors assumed the
investment sub-advisory responsibilities of State Street Global Advisors.
<F15> Includes distribution in excess of net investment income for the periods
ended November 30, 1999, 1998, 1997 of $0.01, $0.07, $0.05 per share,
respectively.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
RETAIL A SHARE
EQUITY FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
-------------------------------------- -------------------------------------
Net Realized
Net and Unrealized Dividends
Asset Value, Net Gains or Total from from Net Distributions Total
Beginning Investment (Losses) on Investment Investment from Gains Distri-
of Period Income Securities Operations Income Capital butions
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
MIDCAP INDEX
-----------------------------------------------------------------------------------------------------------------------------------
Nov. 4, 1999<F1> through
October 31, 2000 $10.00 $0.04 $2.56 $2.60 $(0.04) $ - $(0.04)
-----------------------------------------------------------------------------------------------------------------------------------
MIDCAP CORE EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 41.40 (0.13)<F13> 4.70 4.57 - (4.59) (4.59)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 41.38 (0.20)<F13> 8.44 8.24 _ (5.26) (5.26)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 44.36 (0.24)<F12> (2.07) (2.31) - (4.46) (4.46)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 37.59 (0.08)<F12> 0.60 0.52 - (0.31) (0.31)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 37.80 (0.18)<F12> 17.80 17.62 - (0.79) (0.79)
-----------------------------------------------------------------------------------------------------------------------------------
SMALL CAP INDEX
-----------------------------------------------------------------------------------------------------------------------------------
December 30, 1998<F1>
through November 30, 1999 10.00 - 0.19 0.19 (0.01) - (0.01)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 10.18 (0.01) 2.20 2.19 (0.00)<F16> (0.14) (0.14)
-----------------------------------------------------------------------------------------------------------------------------------
SMALL CAP CORE EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 13.44 (0.01) 1.03 1.02 (0.01)<F15> (1.05) (1.06)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 13.40 (0.05) 2.50 2.45 - (0.82) (0.82)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 15.03 (0.06) (1.89) (1.95) - (1.22)<F15> (1.22)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 11.86 (0.07)<F12> 2.10 2.03 - (0.05) (0.05)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 13.84 (0.10)<F12> 4.13 4.03 (0.01) (0.26) (0.27)
-----------------------------------------------------------------------------------------------------------------------------------
SCIENCE & TECHNOLOGY
-----------------------------------------------------------------------------------------------------------------------------------
March 31, 20001 through
October 31, 2000<F4> 21.93 (0.07) (2.43) (2.50) - - -
-----------------------------------------------------------------------------------------------------------------------------------
MICROCAP
-----------------------------------------------------------------------------------------------------------------------------------
Aug. 1, 1995<F1> through June 30, 1996 10.00 (0.02) 6.10 6.08 (0.04) (0.62) (0.66)
-----------------------------------------------------------------------------------------------------------------------------------
July 1, 1996 through Oct. 31, 1996 15.42 (0.08)<F13> 0.82 0.74 - - -
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 16.16 (0.18)<F13> 4.24 4.06 - (2.75) (2.75)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 17.47 (0.25)<F12> (3.17) (3.42) - (1.67) (1.67)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 12.38 (0.26)<F13> 9.71 9.45 - (0.03) (0.03)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 21.80 (0.40)<F12> 15.99 15.59 - (6.13) (6.13)
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Supplemental Data and Ratios
---------------------------------------------------
Ratio of Net
Net Assets, Ratio of Net Investment
Net Asset End of Expenses Income Portfolio
Value, End Total Period to Average to Average Turnover
of Period Return<F11> (000s) Net Assets Net Assets Rate<F14>
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
MIDCAP INDEX
-----------------------------------------------------------------------------------------------------------------------------------
Nov. 4, 1999<F1> through
October 31, 2000 $12.56 26.48%<F2> $ 1,918 0.75%<F3><F5> 0.75%<F3> 44.52%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
MIDCAP CORE EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 41.38 12.27% 111,159 1.13%<F6> (0.35)% 103.34%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 44.36 22.18% 147,396 1.12%<F6> (0.50)% 97.40%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 37.59 (5.91)% 136,146 1.13%<F6> (0.57)% 77.39%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 37.80 1.31% 95,758 1.19%<F6> (0.21)% 139.91%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 54.63 47.23% 108,326 1.20%<F6> (0.38)% 204.56%
-----------------------------------------------------------------------------------------------------------------------------------
SMALL CAP INDEX
-----------------------------------------------------------------------------------------------------------------------------------
December 30, 1998<F1> through
November 30, 1999 10.18 1.86%<F2> 134 1.00%<F3><F7> (0.15)%<F3> 35.27%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 12.23 21.81%<F2> 177 0.99%<F3><F7> (0.11)%<F3> 31.54%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
SMALL CAP CORE EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 13.40 8.36% 13,889 1.26%<F8> (0.13)% 65.85%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 15.03 19.45% 14,213 1.25%<F8> (0.29)% 80.23%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 11.86 (14.19)% 11,601 1.25%<F8> (0.45)% 69.72%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 13.84 17.21% 8,885 1.26%<F8> (0.57)% 72.08%
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F4> 17.60 29.65%<F2> 9,538 1.28%<F3><F8> (0.01)%<F3> 91.35%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
SCIENCE & TECHNOLOGY
-----------------------------------------------------------------------------------------------------------------------------------
March 31, 20001 through
October 31, 2000<F4> 19.43 (11.40)%<F2> 1,944 1.64%<F3><F9> (1.47)%<F3> 84.55%
-----------------------------------------------------------------------------------------------------------------------------------
MICROCAP
-----------------------------------------------------------------------------------------------------------------------------------
Aug. 1, 1995<F1> through June 30, 1996 15.42 63.52%<F2> 9,036 1.99%<F3><F10> (0.36)%<F3> 283.67%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
July 1, 1996 through Oct. 31, 1996 16.16 4.80%<F2> 9,273 1.97%<F3><F10> (1.69)%<F3> 64.44%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 17.47 29.78% 16,793 1.95%<F10> (1.45)% 158.39%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 12.38 (21.71)% 12,419 1.99%<F10> (1.63)% 135.61%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 21.80 76.54% 21,988 2.01%<F10> (1.43)% 200.09%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 31.26 87.43% 43,031 1.96% (1.31)% 178.77%
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> Not annualized.
<F3> Annualized.
<F4> Effective in 2000, the Fund's fiscal year end was changed to October 31
from November 30.
<F5> Without fees waived, the ratio of net expenses to average net assets for
the period ended October 31, 2000 would have been 0.90%.
<F6> Without fees waived, ratios of net expenses to average net assets for the
fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would have
been 1.22%, 1.21%, 1.20%, 1.20%, 1.20%, respectively.
<F7> Without fees waived, ratios of net expenses to average net assets for the
period ended October 31, 2000 and the period ended November 30, 1999
would have been 1.09%, 1.14%, respectively.
<F8> Without fees waived, ratios of net expenses to average net assets for the
period ended October 31, 2000 and the fiscal years ended November 30,
1999, 1998, 1997, 1996 would have been 1.39%, 1.36%, 1.35%, 1.35%, 1.36%,
respectively
<F9> Without fees waived, the ratio of net expenses to average net assets for
the period ended October 31, 2000 would have been 1.73%.
<F10> Without fees waived, ratios of net expenses to average net assets for the
fiscal years ended October 31, 1999, 1998, 1997 and the periods ended
October 31 and June 30, 1996 would have been 2.02%, 2.06%, 2.03%, 2.04%,
2.22%, respectively.
<F11> The total return calculation does not reflect the maximum sales charge of
5.50%.
<F12> Net investment loss per share represents net investment loss divided by
the average shares outstanding throughout the period.
<F13> Net investment loss per share is calculated using ending balances prior
to consideration of adjustments for permanent book and tax differences.
<F14> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F15> Includes distribution in excess of net capital gains of $0.03 per share
for the period ended November 30, 1998.
<F16> Dividends from net investment income were less than $0.005 per share.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
RETAIL B SHARE
EQUITY FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
-------------------------------------- -------------------------------------
Net Realized
Net and Unrealized Dividends
Asset Value, Net Gains or Total from from Net Distributions Total
Beginning Investment (Losses) on Investment Investment from Gains Distri-
of Period Income Securities Operations Income Capital butions
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
BALANCED INCOME
-----------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through
October 31, 1999 $10.87 $0.14<F13> $0.07 $0.21 $(0.12) $ - $(0.12)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 10.96 0.21 0.65 0.86 (0.20) (0.20) (0.40)
-----------------------------------------------------------------------------------------------------------------------------------
BALANCED GROWTH
-----------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through
October 31, 1999 30.25 0.17<F13> (0.10) 0.07 (0.17) - (0.17)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 30.15 0.33 5.15 5.48 (0.34) (1.67) (2.01)
-----------------------------------------------------------------------------------------------------------------------------------
GROWTH AND INCOME
-----------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through
October 31, 1999 44.64 0.02<F13> 1.40 1.42 (0.03) - (0.03)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 46.03 (0.22)<F13> 5.21 4.99 - (3.90) (3.90)
-----------------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME
-----------------------------------------------------------------------------------------------------------------------------------
Feb. 27, 1997<F1> through
November 30, 1997 10.00 0.10 1.57 1.67 (0.12)<F14> - (0.12)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 11.55 0.11<F13> 0.97 1.08 (0.11) (2.29) (2.40)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 10.23 0.08 (0.19) (0.11) (0.08) (2.23) (2.31)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F15> 7.81 0.03 0.16 0.19 (0.04) (1.11) (1.15)
-----------------------------------------------------------------------------------------------------------------------------------
RELATIVE VALUE
-----------------------------------------------------------------------------------------------------------------------------------
March 31, 1998<F1> through
November 30, 1998 26.01 0.14 0.24 0.38 (0.11) - (0.11)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 26.28 0.16 2.94 3.10 (0.18) (0.11) (0.29)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F15> 29.09 0.20 (0.30) (0.10) (0.21) - (0.21)
-----------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX
-----------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through
October 31, 1999 83.72 0.08<F13> 8.18 8.26 (0.26) - (0.26)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 91.72 0.05<F13> 4.43 4.48 (0.16) (2.08) (2.24)
-----------------------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through
October 31, 1999 36.92 (0.29)<F13> 1.15 0.86 - - -
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 37.78 (0.47)<F13> 7.52 7.05 - (2.03) (2.03)
-----------------------------------------------------------------------------------------------------------------------------------
LARGE CAP GROWTH
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 12.70 0.17 3.12 3.29 (0.16) (0.66) (0.82)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 15.17 0.19 2.97 3.16 (0.14) (1.02) (1.16)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 17.17 0.02 3.32 3.34 (0.03) (0.96) (0.99)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 19.52 (0.04) 4.88 4.84 (0.02) (0.45) (0.47)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F15> 23.89 (0.10) 2.13 2.03 - - -
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Supplemental Data and Ratios
---------------------------------------------------
Ratio of Net
Net Assets, Ratio of Net Investment
Net Asset End of Expenses Income Portfolio
Value, End Total Period to Average to Average Turnover
of Period Return<F12> (000s) Net Assets Net Assets Rate<F11>
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
BALANCED INCOME
-----------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through
October 31, 1999 $10.96 1.97%<F2> $1,571 1.97%<F3><F4> 1.90%<F3> 48.46%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 11.42 8.07% 5,027 1.97%<F4> 1.81% 82.13%
-----------------------------------------------------------------------------------------------------------------------------------
BALANCED GROWTH
-----------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through
October 31, 1999 30.15 0.25%<F2> 630 1.97%<F3><F5> 0.87%<F3> 69.42%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 33.62 18.77% 2,243 1.97%<F5> 0.91% 78.63%
-----------------------------------------------------------------------------------------------------------------------------------
GROWTH AND INCOME
-----------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through
October 31, 1999 46.03 3.19%<F2> 1,550 1.94%<F3> 0.05%<F3> 62.20%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 47.12 11.69% 3,718 1.94%<F16> (0.44)% 89.36%
-----------------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME
-----------------------------------------------------------------------------------------------------------------------------------
Feb. 27, 1997<F1> through
November 30, 1997 11.55 16.75%<F2> 131 1.14%<F3><F6> 1.53%<F3> 48.33%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 10.23 10.98% 520 1.84%<F6> 0.83% 98.32%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 7.81 (0.85)% 766 1.98%<F6> 0.89% 81.84%
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F15> 6.85 3.08%<F2> 650 2.09%<F3><F6> 0.66%3 32.22%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
RELATIVE VALUE
-----------------------------------------------------------------------------------------------------------------------------------
March 31, 1998<F1> through
November 30, 1998 26.28 1.50%<F2> 7,847 1.04%<F3><F7> 0.95%<F3> 26.00%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 29.09 11.84% 14,278 1.30%<F7> 0.57% 11.00%
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F15> 28.78 (0.35)%<F2> 15,537 1.36%<F3><F7> 0.75%<F3> 7.10%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
EQUITY INDEX
-----------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through
October 31, 1999 91.72 9.88%<F2> 4,613 1.37%<F3><F8> 0.13%<F3> 13.95%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 93.96 4.83% 11,214 1.37%<F8> 0.07% 6.46%
-----------------------------------------------------------------------------------------------------------------------------------
LARGE CAP CORE EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through
October 31, 1999 37.78 2.33%<F2> 722 1.96%<F3><F9> (1.17)%<F3> 59.35%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 42.80 19.06% 1,483 1.95%<F9> (1.10)% 60.18%
-----------------------------------------------------------------------------------------------------------------------------------
LARGE CAP GROWTH
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 15.17 27.34% 85,311 1.19%<F10> 1.31% 96.00%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 17.17 22.65% 45,025 1.09%<F10> 0.86% 60.00%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 19.52 20.76% 66,478 1.34%<F10> 0.12% 48.00%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 23.89 25.26% 90,468 1.36%<F10> (0.08)% 28.00%
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F15> 25.92 8.50%<F2> 100,689 1.38%<F3><F10> (0.40)%<F3> 34.63%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> Not annualized.
<F3> Annualized.
<F4> Without fees waived, ratios of net expenses to average net assets for the
fiscal year ended October 31, 2000 and the period ended October 31, 1999
would have been 2.14%, 2.21%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for the
fiscal year ended October 31, 2000 and the period ended October 31, 1999
would have been 2.03%, 2.03%, respectively.
<F6> Without fees waived, ratios of net expenses to average net assets for the
period ended October 31, 2000 and the fiscal years ended November 30,
1999, 1998 and the period ended November 30, 1997 would have been 2.19%,
2.08%, 2.08%, 2.07%, respectively.
<F7> Without fees waived, the ratios of net expenses to average net assets for
the period ended October 31, 2000, the fiscal year ended November 30,
1999 and the period ended November 30, 1998 would have been 1.46%, 1.46%,
1.24%, respectively.
<F8> Without fees waived, ratios of net expenses to average net assets for the
fiscal year ended October 31, 2000 and the period ended October 31, 1999
would have been 1.43%, 1.43%, respectively.
<F9> Without fees waived, the ratio of net expenses to average net assets for
the fiscal year ended October 31, 2000 and the period ended October 31,
1999 would have been 1.96%, 1.97%, respectively.
<F10> Without fees waived, ratios of net expenses to average net assets for the
period ended October 31, 2000 and the fiscal years ended November 30,
1999, 1998, 1997, 1996 would have been 1.48%, 1.52%, 1.54%, 1.29%, 1.39%,
respectively.
<F11> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F12> The total return calculation does not reflect the maximum deferred sales
charge of 5.00%.
<F13> Net investment income (loss) per share represents net investment income
(loss) divided by the average shares outstanding throughout the period.
<F14> Includes distribution in excess of net investment income of $0.02 per
share.
<F15> Effective in 2000, the Fund's fiscal year end was changed to October 31
from November 30.
<F16> Without fees waived, ratio of net expenses to average net assets for the
fiscal year ended October 31, 2000 would have been 1.95%.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
RETAIL B SHARE
EQUITY FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
-------------------------------------- -------------------------------------
Net Realized
Net and Unrealized Dividends
Asset Value, Net Gains or Total from from Net Distributions Total
Beginning Investment (Losses) on Investment Investment from Gains Distri-
of Period Income Securities Operations Income Capital butions
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL VALUE<F10>
-----------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through
October 31, 1999 $14.71 $(0.10)<F13> $ 3.76 $ 3.66 $ - $ - $ -
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 18.37 (0.07)<F13> (1.97) (2.04) (0.02) - (0.02)
-----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 10.71 (0.04) 1.23 1.19 - - -
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 11.90 (0.09) 0.30 0.21 (0.03)<F14> (0.31) (0.34)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 11.77 (0.09) 1.74 1.65 (0.02)<F14> (0.43) (0.45)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 12.97 (0.10) 4.43 4.33 (0.01) (0.75) (0.76)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F16> 16.54 (0.11)<F13> (0.45) (0.56) (0.08) (1.52) (1.60)
-----------------------------------------------------------------------------------------------------------------------------------
MIDCAP INDEX
-----------------------------------------------------------------------------------------------------------------------------------
Nov. 4, 1999<F1> through
October 31, 2000 10.00 (0.01)<F13> 2.56 2.55 (0.03) - (0.03)
-----------------------------------------------------------------------------------------------------------------------------------
MIDCAP CORE EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through
October 31, 1999 37.57 (0.23)<F13> 0.29 0.06 - - -
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 37.63 (0.53)<F13> 17.66 17.13 - (0.79) (0.79)
-----------------------------------------------------------------------------------------------------------------------------------
SMALL CAP CORE EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 13.37 (0.07) 0.99 0.92 - (1.05) (1.05)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 13.24 (0.13) 2.45 2.32 - (0.82) (0.82)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 14.74 (0.14) (1.85) (1.99) - (1.22) (1.22)<F15>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 11.53 (0.16)<F13> 2.06 1.90 - (0.05) (0.05)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F16> 13.38 (0.13) 3.92 3.79 - (0.27) (0.27)
-----------------------------------------------------------------------------------------------------------------------------------
SCIENCE & TECHNOLOGY
-----------------------------------------------------------------------------------------------------------------------------------
Aug. 9, 1999<F1> through
November 30, 1999 10.00 - 4.52 4.52 - - -
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F16> 14.52 (0.27)<F13> 5.11 4.84 - - -
-----------------------------------------------------------------------------------------------------------------------------------
MICROCAP
-----------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through
October 31, 1999 13.74 (0.30)<F13> 8.25 7.95 - - -
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 21.69 (0.61)<F13> 15.89 15.28 - (6.13) (6.13)
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Supplemental Data and Ratios
---------------------------------------------------
Ratio of Net
Net Assets, Ratio of Net Investment
Net Asset End of Expenses Income Portfolio
Value, End Total Period to Average to Average Turnover
of Period Return (000s) Net Assets Net Assets Rate<F11>
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL VALUE<F10>
-----------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through
October 31, 1999 $18.37 24.88%<F2> $ 44 2.57%<F3><F4> (0.85)%<F3> 45.50%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 16.31 (11.12)% 442 2.57%<F4> (0.68)% 75.46%
-----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 11.90 11.11% 437 2.14%<F5> (0.50)% 77.63%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 11.77 1.82% 562 2.29%<F5> (0.91)% 75.18%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 12.97 14.48% 624 2.28%<F5> (0.70)% 88.95%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 16.54 35.65% 781 2.26%<F5> (0.71)% 93.73%
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F16> 14.38 (4.22)%<F2> 732 2.28%<F3><F5> (0.96)%<F3> 90.01%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
MIDCAP INDEX
-----------------------------------------------------------------------------------------------------------------------------------
Nov. 4, 1999<F1> through
October 31, 2000 12.52 25.65%<F2> 905 1.50%<F3><F6> (0.00)%<F3> 44.52%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
MIDCAP CORE EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through
October 31, 1999 37.63 0.16%<F2> 126 1.95%<F3><F7> (0.89)%<F3> 139.91%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 53.97 46.13% 666 1.95%<F7> (1.13)% 204.56%
-----------------------------------------------------------------------------------------------------------------------------------
SMALL CAP CORE EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 13.24 7.63% 1,272 1.96%<F8> (0.83)% 65.85%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 14.74 18.62% 1,503 1.95%<F8> (0.99)% 80.23%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 11.53 (14.79)% 1,286 1.95%<F8> (1.15)% 69.72%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 13.38 16.57% 1,094 1.96%<F8> (1.27)% 72.08%
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F16> 16.90 28.81%<F2> 1,331 1.98%<F3><F8> (0.71)%<F3> 91.35%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
SCIENCE & TECHNOLOGY
-----------------------------------------------------------------------------------------------------------------------------------
Aug. 9, 1999<F1> through
November 30, 1999 14.52 45.20%<F2> 1,345 1.94%<F3><F9> (1.19)%<F3> 16.00%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F16> 19.36 33.33%<F2> 13,465 2.09%<F3><F9> (1.63)%<F3> 84.55%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
MICROCAP
-----------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through
October 31, 1999 21.69 57.86%<F2> 140 2.78%<F3> (2.36)%<F3> 200.09%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 30.84 86.13% 2,136 2.71% (2.06)% 178.77%
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> Not annualized.
<F3> Annualized.
<F4> Without fees waived, ratios of net expenses to average net assets for the
fiscal year ended October 31, 2000 and the period ended October 31, 1999
would have been 2.86%, 2.85%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for the
period ended October 31, 2000 and fiscal years ended November 30, 1999,
1998, 1997, 1996 would have been 2.46%, 2.45%, 2.45%, 2.45%, 2.46%,
respectively.
<F6> Without fees waived, the ratio of net expenses to average net assets for
the period ended October 31, 2000 would have been 1.65%.
<F7> Without fees waived, ratios of net expenses to average net assets for the
fiscal year ended October 31, 2000 and the period ended October 31, 1999
would have been 1.97%, 1.97%, respectively.
<F8> Without fees waived, ratios of net expenses to average net assets for the
period ended October 31, 2000 and the fiscal years ended November 30,
1999, 1998, 1997, 1996 would have been 2.09%, 2.06%, 2.05%, 2.05%, 2.05%,
respectively.
<F9> Without fees waived, ratios of net expenses to average net assets for the
period ended October 31, 2000 and the period ended November 30, 1999
would have been 2.19%, 2.09%, respectively.
<F10> Effective September 2, 1997, Hansberger Global Investors assumed the
investment sub-advisory responsibilities of State Street Global Advisors.
<F11> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F12> The total return calculation does not reflect the maximum deferred sales
charge of 5.00%.
<F13> Net investment income (loss) per share represents net investment income
divided by the average shares outstanding throughout the period.
<F14> Includes distribution in excess of net investment income of $0.02 and
$0.03 per share for the periods ended November 30, 1998 and 1997,
respectively.
<F15> Includes distribution in excess of net capital gains of $0.04 per share.
<F16> Effective in 2000, the Fund's fiscal year end was changed to October 31
from November 30.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
Y SHARE
EQUITY FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
-------------------------------------- -------------------------------------
Net Realized
Net and Unrealized Dividends
Asset Value, Net Gains or Total from from Net Distributions Total
Beginning Investment (Losses) on Investment Investment from Gains Distri-
of Period Income (Loss) Securities Operations Income Capital butions
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME
-----------------------------------------------------------------------------------------------------------------------------------
February 27, 1997<F1> through
November 30, 1997 $10.00 $0.19 $1.56 $1.75 $(0.19) $- $(0.19)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 11.56 0.18 0.98 1.16 (0.19) (2.29) (2.48)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 10.24 0.14 (0.18) (0.04) (0.13) (2.23) (2.36)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F12> 7.84 0.07 0.16 0.23 (0.08) (1.11) (1.19)
-----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 10.75 0.01 1.27 1.28 - - -
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 12.03 (0.03) 0.33 0.30 (0.05)<F10> (0.31) (0.36)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 11.97 - 1.78 1.78 (0.07)<F10> (0.43) (0.50)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 13.25 (0.01) 4.55 4.54 (0.04)<F10> (0.75) (0.79)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F12> 17.00 (0.03)<F8> (0.45) (0.48) (0.11) (1.52) (1.63)
-----------------------------------------------------------------------------------------------------------------------------------
SMALL CAP INDEX
-----------------------------------------------------------------------------------------------------------------------------------
December 30, 1998<F1> through
November 30, 1999 10.00 - 0.17 0.17 - - -
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F12> 10.17 (0.01) 2.18 2.17 (0.01) (0.14) (0.15)
-----------------------------------------------------------------------------------------------------------------------------------
SMALL CAP CORE EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 13.40 (0.01) 1.03 1.02 (0.01)9 (1.05) (1.06)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 13.36 (0.04) 2.48 2.44 - (0.82) (0.82)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 14.98 (0.07) (1.87) (1.94) - (1.22)<F9> (1.22)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 11.82 (0.07)<F8> 2.10 2.03 - (0.05) (0.05)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F12> 13.80 (0.01)<F8> 4.03 4.02 (0.01) (0.26) (0.27)
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Supplemental Data and Ratios
---------------------------------------------------
Ratio of Net
Net Assets, Ratio of Net Investment
Net Asset End of Expenses Income Portfolio
Value, End Total Period to Average to Average Turnover
of Period Return (000s) Net Assets Net Assets Rate<F11>
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME
-----------------------------------------------------------------------------------------------------------------------------------
February 27, 1997<F1> through
November 30, 1997 $11.56 17.64%<F2> 1 0.37%<F3><F4> 2.34%<F3> 48.33%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 10.24 11.82% 35 1.23%<F4> 1.40% 98.32%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 7.84 0.09% 95 1.28%<F4> 1.58% 81.84%
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F12> 6.88 3.67%<F2> 98 1.39%<F3><F4> 1.36%3 32.22%2
-----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 12.03 11.91% 6,059 1.44%<F5> 0.16% 77.63%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 11.97 2.59% 6,798 1.59%<F5> (0.21)% 75.18%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 13.25 15.37% 8,058 1.58%<F5> 0.01% 88.95%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 17.00 36.61% 11,307 1.56%<F5> 0.00% 93.73%
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F12> 14.89 (3.59)%<F2> 16,373 1.58%<F3><F5> (0.26)%<F3> 90.01%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
SMALL CAP INDEX
-----------------------------------------------------------------------------------------------------------------------------------
December 30, 1998<F1> through
November 30, 1999 10.17 1.74%<F2> 14,955 0.92%<F3><F6> (0.06)%<F3> 35.27%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F12> 12.19 21.54%<F2> 18,057 0.99%<F3><F6> (0.11)% <F3> 31.54%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
SMALL CAP CORE EQUITY
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 13.36 8.39% 30,081 1.26%<F7> (0.13)% 65.85%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 14.98 19.41% 34,395 1.25%<F7> (0.29)% 80.23%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 11.82 (14.17)% 25,037 1.25%<F7> (0.45)% 69.72%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 13.80 17.27% 2,448 1.26%<F7> (0.59)% 72.08%
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F12> 17.55 29.67%<F2> 4,442 1.28%<F3><F7> (0.01)%<F3> 91.35%<F2>
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> Not annualized.
<F3> Annualized.
<F4> Without fees waived, ratios of net expenses to average net assets for the
period ended October 31, 2000, the fiscal years ended November 30, 1999,
1998 and the period ended November 30, 1997 would have been 1.49%, 1.38%,
1.32%, 1.60%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for the
period ended October 31, 2000 and the fiscal years ended November 30,
1999, 1998, 1997, 1996 would have been 1.76%, 1.75%, 1.75%, 1.75%, 1.76%,
respectively.
<F6> Without fees waived, ratios of net expenses to average net assets for the
period ended October 31, 2000 and the period ended November 30, 1999
would have been 1.09%, 1.12%, respectively.
<F7> Without fees waived, ratios of net expenses to average net assets for the
period ended October 31, 2000 and the fiscal years ended November 30,
1999, 1998, 1997, 1997 would have been 1.39%, 1.36%, 1.35%, 1.35%, 1.36%,
respectively.
<F8> Net investment loss per share represents net investment loss divided by
the average shares outstanding throughout the period.
<F9> Includes distribution in excess of net investment income of $0.01 per
share for the period ended November 30, 1996. Includes distribution in
excess of net capital gains of $0.03 per share for the period ended
November 30, 1998.
<F10> Includes distribution in excess of net investment income for the periods
ended November 30, 1999, 1998, 1997 of $0.01, $0.07 and $0.02 per share,
respectively.
<F11> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F12> Effective in 2000, the Fund's fiscal year end was changed to October 31
from November 30.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
COMMON STOCKS 47.5%
Air Transportation 0.1%
3,800 Southwest Airlines $ 108
-------
BANKING 3.4%
19,700 Bank of New York Company, Inc. 1,134
16,800 Mellon Bank Corporation 811
11,600 Northern Trust Corporation 990
5,800 Wells Fargo Company, Inc. 269
-------
3,204
-------
BUSINESS MACHINES & SOFTWARE 1.9%
3,300 International Business Machines Corporation 325
16,475 Microsoft Corporation<F1> 1,135
3,300 Sun Microsystems, Inc.<F1> 366
-------
1,826
-------
BUSINESS SERVICES 2.1%
12,100 Automatic Data Processing, Inc. 790
14,800 Manpower, Inc. 515
16,200 Robert Half International, Inc.<F1> 494
4,400 Sungard Data Systems, Inc.<F1> 225
-------
2,024
-------
CHEMICALS 1.8%
18,300 Ecolab, Inc. 717
12,750 Millipore Corporation 669
9,400 Praxair, Inc. 348
-------
1,734
COMMUNICATIONS & MEDIA 1.7%
10,700 Interpublic Group of Companies, Inc. 459
7,900 Time Warner, Inc. 600
10,233 Viacom, Inc.<F1> 582
-------
1,641
-------
COMPUTERS 1.2%
9,500 EMC Corporation<F1> 846
5,600 Hewlett-Packard Co. 260
-------
1,106
-------
CONSUMER PRODUCTS 0.3%
5,750 Avery Dennison Corporation 290
-------
COSMETICS & Soap 0.8%
9,500 Avon Products, Inc. 461
5,800 Estee Lauder Companies - Class A 269
-------
730
-------
Number Market Value
of Shares (in thousands)
--------- --------------
DRUGS/MEDICAL SUPPLIES 3.8%
12,300 American Home Products Corporation $ 781
12,100 Bristol Myers Squibb Company 737
3,500 Eli Lilly & Company 313
6,000 Johnson & Johnson 553
7,000 Merck & Co., Inc. 630
14,075 Pfizer, Inc. 608
-------
3,622
-------
ELECTRICAL EQUIPMENT 0.8%
13,600 General Electric Company 745
-------
ELECTRONICS 1.2%
1,400 Adobe Systems, Inc. 106
4,800 Analog Devices, Inc. 312
2,600 Celestica, Inc.<F1> 187
5,400 Flextronics International Ltd.<F1> 205
9,375 Molex, Inc. - Class A 369
-------
1,179
-------
ELECTRIC UTILITIES 0.7%
4,400 Duke Power Company 380
10,000 The Montana Power Company 283
-------
663
-------
ENTERTAINMENT & Leisure 0.7%
20,900 Carnival Corporation 519
4,600 The Walt Disney Company 165
-------
684
-------
FINANCIAL SERVICES 4.8%
12,200 Alliance Capital Management L.P. 586
9,100 American Express Company 546
21,600 Citigroup Inc. 1,137
11,600 Franklin Resources, Inc. 497
6,100 Marsh & McLennan Companies, Inc. 798
8,200 Merrill Lynch & Company, Inc. 574
5,500 Morgan Stanley Dean Witter & Company 442
-------
4,580
-------
FOOD, BEVERAGES & Tobacco 1.9%
15,000 Anheuser-Busch Companies, Inc. 686
14,900 PepsiCo, Inc. 722
7,800 Sysco Corporation 407
-------
1,815
-------
HEALTH CARE SERVICES & Supplies 1.3%
9,400 Baxter International, Inc. 773
12,400 Columbia / HCA Healthcare Corporation 495
-------
1,268
-------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
INSURANCE 1.3%
6,850 Ambac Financial Group, Inc. $ 547
6,750 American International Group, Inc. 661
-------
1,208
-------
MULTI-INDUSTRY 0.8%
13,500 Tyco International, Ltd. 765
-------
NATURAL GAS 0.8%
7,200 Enron Corporation 591
5,300 The Williams Companies, Inc. 222
-------
813
-------
NETWORKING PRODUCTS 0.9%
15,900 Cisco Systems, Inc.<F1> 857
-------
OIL - DOMESTIC 0.9%
5,000 Phillips Petroleum Company 309
20,000 USX Corporation - Marathon Group, Inc. 544
-------
853
-------
OIL - INTERNATIONAL 0.9%
9,888 Exxon Mobil Corporation 882
-------
OIL - SERVICES & Equipment 1.3%
4,900 Apache Corporation 271
4,600 Exelon Corporation 276
12,500 Nabors Industries, Inc.<F1> 636
5,950 Schlumberger Limited 453
-------
1,636
-------
PAPER & Forest Products 0.5%
7,100 Kimberly-Clark Corporation 469
-------
PRINTING & Publishing 1.6%
7,900 Harcourt General, Inc. 443
16,000 McGraw-Hill, Inc. 1,027
-------
1,470
-------
REAL ESTATE INVESTMENT TRUSTS (REITs) 0.6%
13,075 AMB Property Corporation 307
4,400 Spieker Properties, Inc. 244
-------
551
-------
RETAIL 3.3%
10,100 Costco Wholesale Corporation<F1> 370
7,935 Gap, Inc. 205
1,200 Kohl's Corporation<F1> 65
9,700 Lowe's Companies, Inc. 443
15,600 Safeway, Inc.<F1> 853
11,900 Target Corporation 329
19,100 Walgreen Company 871
-------
3,136
-------
Number Market Value
of Shares (in thousands)
--------- --------------
SEMICONDUCTORS 1.1%
11,800 Intel Corporation $ 531
10,700 Texas Instruments, Inc. 525
-------
1,056
TELECOMMUNICATIONS 3.1%
4,600 ALLTEL Corporation 296
17,075 SBC Communications, Inc. 989
21,300 Verizon Communications 1,231
17,125 WorldCom, Inc.<F1> 407
-------
2,923
TELECOMMUNICATIONS EQUIPMENT 1.2%
3,500 Corning, Incorporated 268
6,500 Nokia Corp. - ADR 278
13,000 Nortel Networks Corporation 591
-------
1,137
TRANSPORTATION 0.3%
4,300 United Parcel Service, Inc. 261
-------
Total Common Stocks (Cost $34,097) 45,236
-------
PREFERRED STOCKS 1.4%
CHEMICALS 0.5%
Monsanto Corporation, 6.50%, 11/30/03
(convertible into Pharmacia Corporation
9,925 common stock) 478
COMMUNICATIONS 0.3%
Cox Communications Inc., 7.75%, 11/15/29
1,600 (convertible to Sprint PCS common stock) 124
Global Crossing Inc., 6.75%, 4/15/12 (convertible
1,000 to Global Crossing Inc. common stock) 204
NATURAL GAS 0.6%
Enron Corporation, 7.00%, 7/31/02
14,900 (convertible to EOG Resources common
stock) 509
-------
Total Preferred Stocks (Cost $1,507) 1,315
-------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Principal Amount Market Value
(in thousands) (in thousands)
--------------- --------------
LONG-TERM INVESTMENTS 46.2%
ASSET-BACKED SECURITIES 2.9%
AUTO LOAN RECEIVABLES 0.9%
Banc One Auto Grantor Trust,
$ 36 Series 1997-A, Class A, 6.27%, 11/20/03 $ 36
Chase Manhattan Auto Owner Trust,
300 Series 1997-B, Class A5, 6.60%,
3/15/02 300
Honda Auto Least Trust,
500 Series 1999-A, Class A5, 6.65%, 7/15/05 498
-------
834
CREDIT CARD RECEIVABLES 1.0%
Citibank Credit Card Master Trust I,
Principal Only:
300 Series 1996-1, Class A, 0.00%,
2/07/01 295
800 Series 1997-6, Class A, 0.00%,
8/15/06 619
Sears Credit Account Master Trust,
50 Series 1995-2, Class A, 8.10%, 1/15/01 50
-------
964
HOME EQUITY LOAN RECEIVABLES 1.0%
Contimortgage Home Equity Loan Trust,
491 Series 1997-3, Class A9, 7.12%, 8/15/28 485
GE Capital Mortgage Services, Inc.,
200 Series 1996-HE1, Class A4, 7.30%, 2/25/25 200
Green Tree Home Equity Loan Trust,
286 Series 1997-B, Class A6, 7.12%, 4/15/27 287
-------
972
CORPORATE BONDS 9.7%
ABN Amro Bank Guarantee,
250 7.25%, 5/31/05 251
Air 2 US,
100 10.127%, 10/01/20 104
American West Airlines Pass-Thru Certificates,
125 8.54%, 1/02/06 (Acquired 9/14/99,
Cost $125)<F2> 125
AT&T Capital Corp. Company Guarantee,
200 6.25%, 5/15/01 199
Associates Corporation of North America
Senior Notes,
150 7.50%, 4/15/02 152
Bank One Corporation Notes,
250 6.875%, 8/01/06 245
BankAmerica Corporation Subordinated Notes,
185 9.20%, 5/15/03 194
BankBoston Corporation Subordinated Notes,
200 6.625%, 2/01/04 197
Bankers Trust Corporation Subordinated Notes,
200 7.50%, 11/15/15 193
Bank of New York Subordinated Notes,
150 7.875%, 11/15/02 153
Bank of Oklahoma Subordinated Notes,
300 7.125%, 8/15/07 284
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
Corporate Bonds 9.7% (cont.)
Barclays North American Capital Corp. Debentures,
$ 300 9.75%, 5/15/21 $ 317
CE Generations LLC,
395 7.416%, 12/15/18 370
Citicorp Subordinated Notes,
100 9.50%, 2/01/02 103
Conectiv, Inc. Medium Term Notes,
225 6.73%, 6/01/06 222
Continental Airlines Inc. Pass-Thru
Certificates,
171 6.80%, 7/02/07 165
Continental Cablevision, Inc. Debentures,
100 9.50%, 8/01/13 108
Donaldson,Lufkin & Jenrette Senior Notes,
200 5.875%, 4/01/02 197
Duty Free International, Inc. Notes,
250 7.00%, 1/15/04 241
Dynegy, Inc. Senior Notes,
200 7.45%, 7/15/06 199
Federal Express Corporation Notes,
180 9.65%, 6/15/12 199
FPL Group Capital, Inc. Guaranteed Notes,
150 7.625%, 9/15/06 153
Goldman Sachs Group Notes,
400 6.25%, 2/01/03 (Acquired 6/30/99,
Cost $393)<F2> 392
Lehman Brothers, Inc. Senior Notes,
150 8.75%, 5/15/02 153
Lehman Brothers, Inc. Medium Term Notes,
375 7.50%, 9/01/06 368
Marlin Water Trust Senior Notes,
97 7.09%, 12/15/01 (Acquired 12/9/98,
Cost $97)<F2> 96
Merrill Lynch & Co. Notes,
225 8.30%, 11/01/02 230
Midlantic Corporation Subordinated Notes,
240 9.20%, 8/01/01 244
Morgan Stanley Group Debentures,
300 8.875%, 10/15/01 306
National Westminster Bank Debentures,
300 9.375%, 11/15/03 319
Oneok, Inc. Notes,
125 7.75%, 8/15/06 127
Paine Webber Group, Inc. Subordinated Notes,
200 7.75%, 9/01/02 203
Principal Financial Group Senior Notes,
400 8.20%, 8/15/09 (Acquired 8/18/99,
Cost $399)<F2> 403
PSI Energy Debentures,
150 7.85%, 10/15/07 148
J.C. Penney Company, Inc. Debentures,
150 8.25%, 8/15/22 78
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
CORPORATE BONDS 9.7% (cont.)
Salomon, Inc. Notes:
$ 409 7.50%, 2/01/03 $ 413
277 7.00%, 6/15/03 277
Standard Federal Bancorp Medium Term Notes,
250 7.75%, 7/17/06 258
Washington Mutual, Inc. Notes,
250 7.50%, 8/15/06 249
Westdeutsche Landesbank Subordinated Notes:
200 6.05%, 1/15/09 182
400 6.75%, 6/15/05 393
-------
9,210
INTERNATIONAL/YANKEE (U.S. $ DENOMINATED) 1.3%
Ford Capital BV Debentures:
200 9.375%, 5/15/01 203
150 9.50%, 6/01/10 164
Household Netherlands BV Company Guarantee,
125 6.20%, 12/01/03 122
Korea Development Bank Bonds,
230 7.125%, 9/17/01 229
Metronet Communications Corp. Senior Notes,
300 9.95%, 6/15/08 243
Norsk Hydro A/S Debentures,
50 9.00%, 4/15/12 55
Stagecoach Holdings PLC Notes,
200 8.625%, 11/15/09 180
Wharf Capital International Ltd. Notes,
50 7.625%, 3/13/07 47
-------
1,243
U.S. GOVERNMENT AGENCY-BACKED
MORTGAGE ISSUES 4.3%
Federal Farm Credit Bank, Medium Term Notes,
500 5.75%, 9/01/05 483
Federal Home Loan Mortgage Corporation
(FHLMC)
2,000 5.75%, 4/15/08 1,898
Real Estate Mortgage Investment Conduit
(REMIC),
42 Series 1201, Class E, 7.40%, 12/15/21 42
Federal National Mortgage Association (FNMA)
1,000 6.375%, 6/15/09 978
Federal National Mortgage Association (FNMA)
500 Medium Term Notes, 6.40%, 9/27/05 496
Real Estate Mortgage Investment Conduit
(REMIC):
37 Series 1989-2, Class D, 8.80%, 1/25/19 38
43 Series 1990-89, Class K, 6.50%, 7/25/20 42
Government National Mortgage Association
(GNMA)
Real Estate Mortgage Investment Conduit
(REMIC),
60 Series 3, Class F, 6.50%, 6/17/20 58
-------
4,035
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
U.S. Treasury Obligations 28.0%
U.S. Treasury Bonds,
$ 7,250 11.625%, 11/15/02 $ 8,021
U.S. Treasury Notes,
1,000 6.625%, 5/15/07 1,041
U.S. Treasury Strips, Principal Only,
22,280 0.00%, 11/15/04 17,604
-------
26,666
Total Long-Term Investments (Cost $43,732) 43,924
-------
Number
of Shares
(in thousands)
--------------
SHORT-TERM INVESTMENTS 4.1%
INVESTMENT COMPANIES 4.1%
124 Financial Square Prime Obligation Fund 124
3,759 Short-Term Investments Co. Liquid
Assets Portfolio 3,759
-------
Total Short-Term Investments (Cost $3,883) 3,883
-------
Total Investments (Cost $83,219) 99.2% 94,358
-------
Other Assets, less Liabilities, 0.8% 762
-------
TOTAL NET ASSETS 100.0% $ 95,120
=======
<F1>Non-income producing
<F2>Unregistered security
ADR - American Depository Receipt
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
---------- -------------
COMMON STOCKS 57.9%
AEROSPACE & Defense 0.5%
3,800 Atlantic Coast Airlines Holdings, Inc.<F1> $ 136
11,000 General Dynamics Corporation 787
2,200 Litton Industries, Inc.<F1> 114
-------
1,037
-------
AIR TRANSPORTATION 0.4%
28,000 Southwest Airlines 798
-------
BANKING 2.6%
500 Banknorth Group, Inc. 9
15,700 Citigroup, Inc. 826
3,100 City National Corporation 106
3,300 Commerce Bancorp, Inc. 200
9,300 Cullen/Frost Bankers, Inc. 310
3,200 Dime Bancorp, Inc. 78
22,550 Fifth Third Bancorp 1,159
1,900 First Tennessee National Corporation 43
500 Marshall & Ilsley Corporation 23
21,205 National Commerce Bancorporation 451
4,600 North Fork Bancorporation, Inc. 93
4,300 Queens County Bancorp, Inc. 120
1,500 Silicon Valley Bancshares 69
16,000 State Street Corporation 1,996
2,200 TCF Financial Corporation 89
2,000 Zions Bancorporation 115
-------
5,687
-------
BATTERIES 0.1%
21,700 Rayovac Corporation<F1> 320
-------
BIOTECHNOLOGY 0.1%
500 Alexion Pharmaceuticals, Inc.<F1> 52
1,100 Intermune Pharmaceuticals, Inc.<F1> 55
4,300 Lexicon Genetics, Inc.<F1> 87
500 Sangamo BioSciences, Inc.<F1> 13
1,000 Tularik, Inc.<F1> 32
500 Vertex Pharmaceuticals, Inc.<F1> 45
-------
284
BUILDING & Construction 0.2%
3,800 Astec Industries, Inc.<F1> 39
2,400 Granite Construction, Inc. 55
2,300 Martin Marietta Materials, Inc. 88
2,600 Southdown, Inc. 184
5,900 U.S. Aggregates, Inc.<F1> 83
-------
449
-------
BUSINESS SERVICES 1.9%
11,300 Affiliated Computer Services, Inc.<F1> 629
1,800 Catalina Marketing Corporation<F1> 71
Number Market Value
of Shares (in thousands)
--------- --------------
BUSINESS SERVICES 1.9% (cont.)
3,850 Cintas Corporation $ 179
7,200 Computer Sciences Corporation<F1> 454
21,300 First Data Corporation 1,068
2,155 FIserv, Inc.<F1> 113
6,400 F.Y.I. Inc.<F1> 257
5,300 Manpower Inc. 184
6,700 Robert Half International Inc. 204
19,900 Sabre Group Holdings, Inc.<F1> 665
8,200 The Source Information Management Company<F1> 45
7,100 Steiner Leisure Ltd.<F1> 156
2,600 Trex Company, Inc.<F1> 97
2,400 Viad Corp. 51
-------
4,173
-------
COMMUNICATIONS & MEDIA 2.9%
42,100 Charter Communications, Inc.<F1> 821
6,400 Clear Channel Communications<F1> 384
4,400 Cumulus Media, Inc.<F1> 28
900 Entravision Communications Corporation<F1> 16
1,300 Hispanic Broadcasting Corporation<F1> 41
24,800 Infinity Broadcasting<F1> 825
30,700 Interpublic Group of Companies, Inc. 1,318
16,000 Omnicom Group, Inc. 1,476
11,100 Radio One, Inc.<F1> 89
1,100 True North Communications, Inc. 41
4,400 Univision Communications, Inc.<F1> 168
14,000 USANetworks, Inc.<F1> 284
24,600 The Walt Disney Company 881
-------
6,372
-------
COMPUTERS 2.2%
2,100 Brocade Communications Systems, Inc.<F1> 477
22,500 EMC Corporation<F1> 2,004
6,800 Read-Rite Corporation<F1> 51
17,100 Sun Microsystems, Inc.<F1> 1,896
8,450 Zebra Technologies Corporation<F1> 370
-------
4,798
-------
COMPUTER SERVICES 1.1%
14,800 The BISYSGroup, Inc.<F1> 697
6,000 Cadence Design Systems, Inc.<F1> 154
1,900 DST Systems, Inc.<F1> 117
1,000 Inforte Corporation<F1> 31
26,100 SunGard Data Systems, Inc. 1,334
-------
2,333
-------
COMPUTER SOFTWARE 0.3%
7,800 Adobe Systems, Inc. 593
-------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
----------- -------------
DATA PROCESSING 0.6%
23,400 Acxiom Corporation<F1> $ 942
3,800 ChoicePoint, Inc.<F1> 195
1,500 CSG Systems International, Inc.<F1> 70
1,300 SEIInvestments Company 118
-------
1,325
-------
DISTRIBUTION 0.0%
500 Fastenal Company 29
-------
DRUGS 4.5%
2,100 Albany Molecular Research, Inc.<F1> 122
1,100 Barr Laboratories, Inc.<F1> 69
17,200 Bristol-Myers Squibb Company 1,048
500 Cephalon, Inc.<F1> 27
500 COR Therapeutics, Inc.<F1> 28
14,800 Eli Lilly & Company 1,323
6,400 Genentech, Inc.<F1> 528
1,000 Gilead Sciences, Inc.<F1> 86
600 IDEC Pharmaceuticals Corporation<F1> 118
4,400 IVAXCorporation 191
3,550 King Pharmaceuticals, Inc.<F1> 159
21,300 Merck &Co., Inc. 1,916
47,000 Pfizer, Inc. 2,030
13,700 Pharmacia Corporation 754
1,600 Sepracor Inc.<F1> 109
23,600 Serono SA<F1> - ADR 534
3,300 Shire Pharmaceuticals Group PLC - ADR<F1> 207
11,100 Watson Pharmaceuticals, Inc.<F1> 694
-------
9,943
-------
ELECTRONIC COMPONENTS & SEMICONDUCTORS 6.0%
13,100 ASM Lithography Holding N.V.<F1> 364
17,700 Analog Devices,Inc.<F1> 1,151
16,700 Applied Materials, Inc.<F1> 887
9,400 Applied Micro Circuits Corporation<F1> 719
1,500 Artesyn Technologies, Inc.<F1> 61
3,800 Atmel Corporation<F1> 57
6,300 Benchmark Electronics, Inc.<F1> 254
4,100 Broadcom Corporation<F1> 912
500 C & D Technologies, Inc. 30
1,000 C-Mac Industries, Inc.<F1> 56
1,900 CTS Corporation 82
1,800 Camtek Ltd.<F1> 14
3,900 Coherent, Inc.<F1> 136
600 Exar Corporation<F1> 27
18,800 Flextronics International Ltd.<F1> 714
5,700 Integrated Device Technology, Inc.<F1> 321
30,300 Intel Corporation 1,364
500 International Rectifier Corporation<F1> 22
Number Market Value
of Shares (in thousands)
--------- --------------
ELECTRONIC COMPONENTS &
SEMICONDUCTORs 6.0% (cont.)
6,100 IXYS Corporation<F1> $ 154
4,300 Jabil Circuit, Inc.<F1> 245
1,300 KEMET Corporation<F1> 36
8,000 Linear Technology Corporation 516
3,200 Littelfuse, Inc.<F1> 93
1,500 Methode Electronics, Inc. 56
1,700 Micrel, Inc.<F1> 77
1,600 Millipore Corporation 84
21,212 Molex, Inc. - Class A 834
1,400 NVIDIACorporation<F1> 87
5,200 PMC - Sierra, Inc.<F1> 881
3,500 Pericom Semiconductor Corporation<F1> 93
6,700 Photronics, Inc.<F1> 151
7,100 Power Integrations, Inc.<F1> 95
5,300 SCI Systems,Inc.<F1> 228
500 Semtech Corporation<F1> 16
1,400 SIPEX Corporation<F1> 55
2,150 Symbol Technologies,Inc.<F1> 98
13,320 Texas Instruments, Inc. 654
2,000 TranSwitch Corporation<F1> 115
3,900 TriQuint Semiconductor, Inc.<F1> 149
3,200 Veeco Instruments Inc.<F1> 212
11,600 Viasystems Group, Inc.<F1> 165
500 Vicor Corporation<F1> 27
4,000 Vitesse Semiconductor<F1> 280
8,400 Xilinx, Inc.<F1> 608
-------
13,180
-------
ENTERTAINMENT & LEISURE 0.6%
2,500 Anchor Gaming<F1> 212
35,000 Carnival Corporation 868
8,400 Cinar Films Inc. - Class B<F1> 26
10,800 Park Place Entertainment Corporation<F1> 138
-------
1,244
-------
FINANCIAL SERVICES 2.3%
3,600 AmeriCredit Corporation<F1> 97
1,600 Charter One Financial, Inc.<F1> 37
6,350 Concord EFS, Inc.<F1> 262
1,500 Countrywide Credit Industries, Inc. 56
6,900 E*Trade Group, Inc.<F1> 100
13,300 Federal Home Loan Mortgage Corporation 798
7,000 Federal National Mortgage Association 539
6,800 Federated Investors, Inc. 198
4,300 John Hancock Financial Services, Inc.<F1> 136
50,500 MBNA Corporation 1,897
11,700 Morgan Stanley Dean Witter & Company 940
2,000 NOVA Corporation<F1> 32
-------
5,092
-------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
FOOD & BEVERAGE 1.0%
1,100 Adolph Coors Company $ 70
14,800 Anheuser-Busch Companies, Inc. 677
5,600 Constellation Brands, Inc.<F1> 273
8,300 Dean Foods Company 266
1,300 McCormick & Company, Inc. 41
15,500 PepsiCo, Inc. 751
9,500 Universal Foods Corporation 188
-------
2,266
-------
HEALTH CARE SERVICES & SUPPLIES 0.7%
8,525 Cardinal Health, Inc. 808
10,653 Health Management Associates, Inc. -
Class A<F1> 211
4,100 Lincare Holdings, Inc.<F1> 172
15,800 Omnicare,Inc. 277
1,000 Universal Health Services, Inc. 84
-------
1,552
-------
INSURANCE 3.6%
17,700 AFLAC, Inc. 1,293
1,400 Allmerica Financial Corporation 88
5,800 Ambac Financial Group, Inc. 463
21,232 American International Group 2,081
18,500 Aon Corporation 767
4,900 Everest Re Group, Ltd. 287
2,300 Fidelity National Financial, Inc. 56
2,500 First American Corporation 52
7,000 Arthur J. Gallagher & Company 442
3,600 Harleysville Group, Inc. 83
8,100 Hartford Financial Services Group, Inc. 603
2,700 INGGroepN.V. - ADR 187
15,500 MGIC Investment Corporation 1,056
8,000 Old Republic International Corporation 208
1,350 The PMI Group, Inc. 100
2,000 Protective Life Corporation 46
1,000 Renaissance Re Holdings, Ltd. 73
-------
7,885
-------
INTERNET PRODUCTS & SERVICES 0.3%
5,000 Digitas, Inc.<F1> 60
300 EDGAR Online, Inc.<F1> 1
13,000 Interliant, Inc.<F1> 78
11,900 PurchasePro.com, Inc.<F1> 321
1,000 RSASecurity, Inc.<F1> 58
700 TMPWorldwide, Inc.<F1> 49
-------
567
-------
MEDICAL 1.4%
7,800 Amgen, Inc.<F1> 452
10,100 Baxter International, Inc. 830
Number Market Value
of Shares (in thousands)
--------- -------------
MEDICAL 1.4% (cont.)
2,200 Chiron Corporation<F1> $ 95
13,000 Johnson & Johnson 1,198
4,200 Millennium Pharmaceuticals, Inc.<F1> 305
3,900 Mylan Laboratories Inc. 109
1,000 Polymedia Corporation<F1> 58
7,350 QuadraMed Corporation<F1> 8
6,600 Texas Biotechnology Corporation<F1> 97
-------
3,152
-------
MEDICAL INSTRUMENTS 0.6%
4,475 DENTSPLY InternationalInc. 155
11,500 Edwards Lifesciences Corporation<F1> 155
10,700 Medtronic, Inc. 581
1,000 MiniMed Inc.<F1> 73
2,400 Stryker Corporation 113
2,600 Sybron International Corporation<F1> 64
3,000 Waters Corporation<F1> 218
-------
1,359
METALS & MINERALS 0.1%
7,400 Allegheny Technologies, Inc. 150
-------
MISCELLANEOUS 0.1%
3,400 Knightsbridge Tankers Ltd. 73
1,200 SPXCorporation 148
-------
221
-------
MULTI-INDUSTRY 1.0%
6,700 GSI Lumonics Inc.<F1> 85
8,000 Kaydon Corporation 176
6,200 Mettler-Toledo International Inc.<F1> 289
29,800 Tyco International, Ltd. 1,689
-------
2,239
-------
NATURAL GAS 0.8%
2,300 Atmos Energy Corporation 53
17,700 Enron Corporation 1,453
3,400 Equitable Resources, Inc. 198
-------
1,704
NETWORKING PRODUCTS 2.0%
800 Aeroflex, Inc.<F1> 48
3,100 Black Box Corporation<F1> 204
41,500 Cisco Systems, Inc.<F1> 2,236
7,600 Computer Network Technology Corporation<F1> 231
5,500 Extreme Networks,Inc.<F1> 456
6,600 Network Appliance, Inc.<F1> 785
2,900 QLogic Corporation<F1> 281
9,600 3Com Corporation<F1> 170
-------
4,411
-------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
OIL & GAS - DOMESTIC 1.8%
15,500 Burlington Resources, Inc. $ 558
31,100 EOG Resources, Inc. 1,225
4,000 Newfield Exploration Company<F1> 151
15,600 Phillips Petroleum Company 963
3,300 St. Mary Land & Exploration Company 77
15,000 Texaco Inc. 886
5,700 Valero Energy Corporation 189
-------
4,049
OIL & GAS SERVICES 2.4%
23,300 Apache Corporation 1,289
1,100 BJ Services Company<F1> 58
2,600 Cal Dive International, Inc.<F1> 129
900 Dril-Quip, Inc.<F1> 30
3,300 ENSCO International, Inc. 110
3,900 Global Marine Inc.<F1> 103
18,400 Halliburton Company 682
1,400 Hanover Compressor Company<F1> 46
5,500 Kinder Morgan,Inc. 212
1,600 Nabors Industries, Inc.<F1> 82
1,100 National Fuel Gas Company 59
5,700 National-Oilwell, Inc.<F1> 167
2,700 Noble Drilling Corporation<F1> 112
7,400 Petroleum Geo-Services ASA-ADR<F1> 101
2,900 Pogo Producing Company 73
6,700 Precision Drilling Corporation<F1> 192
4,500 Pride International, Inc.<F1> 114
19,600 Schlumberger Limited<F1> 1,492
600 Smith International, Inc.<F1> 42
1,700 Talisman Energy Inc.<F1> 54
1,700 Universal Compression Holdings, Inc.<F1> 49
3,300 W-H Energy Services, Inc.<F1> 46
1,500 Weatherford International, Inc.<F1> 55
-------
5,297
PRINTING & PUBLISHING 0.2%
4,700 Banta Corporation 108
3,400 Harcourt General, Inc. 191
2,700 Readers Digest Association, Inc. 99
1,600 Scholastic Corporation<F1> 128
-------
526
RENTAL EQUIPMENT 0.2%
8,200 Avis Group Holdings, Inc.<F1> 245
4,700 Rent-A-Center, Inc.<F1> 137
-------
382
RESTAURANTS 0.2%
3,600 Brinker International, Inc.<F1> 141
4,900 CEC Entertainment, Inc.<F1> 156
3,100 Outback Steakhouse, Inc.<F1> 89
-------
386
-------
Number Market Value
of Shares (in thousands)
--------- --------------
RETAIL 4.3%
21,300 Abercrombie & Fitch Company<F1> $ 502
900 AnnTaylor Stores Corporation<F1> 27
2,500 BJ's Wholesale Club<F1> 82
36,756 Dollar General Corporation 570
36,300 Family Dollar Stores 706
14,050 Home Depot, Inc. 604
15,600 Kohl's Corporation<F1> 845
29,220 Lowe's Companies, Inc. 1,335
5,300 The Men's Wearhouse, Inc.<F1> 155
36,800 Safeway, Inc.<F1> 2,013
3,000 Ultimate Electronics, Inc.<F1> 108
28,200 Wal-Mart Stores, Inc. 1,280
26,300 Walgreen Company<F1> 1,200
2,100 Williams-Sonoma, Inc.<F1> 44
-------
9,471
RETAIL - COMPUTERS 0.1%
2,700 CDW Computer Centers, Inc.<F1> 174
-------
SOFTWARE 3.0%
3,300 Ariba, Inc.<F1> 417
1,800 Aspen Technology, Inc.<F1> 74
3,900 Check Point Software Technologies, Ltd.<F1> 618
7,300 Dendrite International, Inc.<F1> 159
2,600 Electronic Arts, Inc.<F1> 130
2,800 i2 Technologies, Inc.<F1> 476
3,000 Intuit Inc.<F1> 184
800 Macromedia, Inc.<F1> 62
28,600 Microsoft Corporation <F1> 1,970
7,400 Network Associates, Inc.<F1> 142
12,800 Oracle Corporation<F1> 422
4,500 Rational Software Corporation<F1> 269
9,300 SAGA SYSTEMS, Inc.<F1> 50
7,100 Siebel Systems, Inc.<F1> 745
4,300 Sybase, Inc.<F1> 90
1,300 Symantec Corporation<F1> 51
4,825 VERITAS Software Corporation<F1> 681
6,300 Verity, Inc.<F1> 148
1,300 Wind River Systems, Inc.<F1> 53
-------
6,741
STEEL PIPE & TUBE 0.1%
2,700 Maverick Tube Corporation<F1> 42
1,400 Shaw Group, Inc.<F1> 114
-------
156
-------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
TELECOMMUNICATIONS 1.4%
1,850 AirGate PCS, Inc.<F1> $ 72
2,100 Alamosa PCSHoldings, Inc.<F1> 32
7,800 ALLTEL Corporation 503
5,500 Broadwing Inc.<F1> 155
11,700 McLeodUSA, Incorporated<F1> 225
25,986 MCI WorldCom, Inc.<F1> 617
17,500 Nextel Communications, Inc.<F1> 673
7,000 TeleCorp PCS, Inc.<F1> 131
4,900 Voicestream Wireless Corporation<F1> 644
-------
3,052
-------
TELECOMMUNICATIONS EQUIPMENT 4.5%
2,700 ADTRAN, Inc.<F1> 104
4,100 Alpha Industries, Inc. 164
500 Anaren Microwave, Inc.<F1> 52
10,300 CIENA Corporation<F1> 1,083
5,800 Comverse Technology, Inc.<F1> 648
13,200 Corning Incorporated 1,010
3,200 DMCStratex Networks, Inc.<F1> 74
2,400 Ditech Communications Corporation<F1> 84
800 Exfo Electro-Optical Engineering, Inc.<F1> 30
5,200 Harris Corporation 165
10,000 JDS Uniphase Corporation<F1> 814
4,900 Juniper Networks, Inc.<F1> 956
44,000 Nortel Networks Corporation 2,002
1,600 Polycom, Inc.<F1> 104
1,600 Powerwave Technologies, Inc.<F1> 77
15,200 QUALCOMM Incorporated<F1> 990
5,500 REMEC, Inc.<F1> 164
1,900 SDL, Inc.<F1> 493
11,200 Scientific-Atlanta, Inc. 767
4,500 Turnstone Systems, Inc.<F1> 96
-------
9,877
-------
TELECOMMUNICATIONS SERVICES 0.4%
14,700 Asia Global Crossing Ltd.<F1> 103
21,400 Global Crossing Ltd.<F1> 506
3,500 Williams Communications Group, Inc.<F1> 64
8,100 XO Communications, Inc.<F1> 273
-------
946
-------
TRANSPORTATION 0.6%
4,200 EGL, Inc.<F1> 120
1,500 GATX Corporation 63
22,000 Harley-Davidson, Inc. 1,060
-------
1,243
Number Market Value
of Shares (in thousands)
--------- -------------
UTILITIES 0.8%
2,800 Allegheny Energy, Inc. $ 115
2,900 Calpine Corporation<F1> 229
1,100 DPL, Inc. 31
2,800 Energy East Corporation 56
9,200 Exelon Corporation 553
5,800 Kansas City Power & Light Company 140
5,900 Montana Power Company 167
900 Northeast Utilities, Inc. 18
5,100 NRGEnergy, Inc.<F1> 133
6,700 Southern Energy, Inc.<F1> 182
6,400 Wisconsin Energy Corporation 120
-------
1,744
-------
Total Common Stocks (Cost $85,619) 127,207
-------
Principal Amount
(in thousands)
----------------
LONG-TERM INVESTMENTS 33.6%
ASSET-BACKED SECURITIES 1.6%
CREDIT CARD RECEIVABLES 0.4%
Chase Credit Card Master Trust,
$ 500 Series 1996-1, 5.55%, 1/15/01 499
Citibank Credit Card Master Trust,
Principal Only,
200 Series 1997-6, 0.00%, 8/15/06 155
Household Affinity Credit Card Master Trust I,
42 Series 1993-2, Class A, 5.60%, 11/15/00 42
Sears Credit Account Master Trust,
88 Series 1995-2, Class A, 8.10%, 1/15/01 88
-------
784
HOME EQUITY LOAN RECEIVABLES 1.2%
Contimortgage Home Equity Loan Trust,
700 Series 1997-5, Class A5, 6.63%, 12/15/20 689
Merrill Lynch Mortgage Investors, Inc.,
1,175 Series 1998-C1, Class A1, 6.31%, 11/15/26 1,149
Saxon Asset Securities Trust,
875 Series 1998-2, Class AF5, 7.325%, 1/25/12 875
-------
2,713
CORPORATE BONDS 14.9%
ABN AMRO Bank Guarantee,
$ 1,000 7.25%, 5/31/05 1,002
Air 2 US,
400 10.127%, 10/01/20 414
America West Airlines Pass-Thru
Certificates:
376 8.54%, 1/02/06 (Acquired 9/14/99,
Cost $376)<F2> 375
653 7.93%, 1/02/19 (Acquired 9/14/99,
Cost $653)<F2> 658
Atlantic Richfield Co. Debentures,
300 8.50%, 4/01/12 329
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
CORPORATE BONDS 14.9% (cont.)
BankAmerica Corporation Subordinated Notes,
$ 350 7.75%, 7/15/02 $ 354
BankBoston Corporation Subordinated Notes,
725 6.625%, 2/01/04 712
Bankers Trust Corporation Subordinated
Debentures,
1,275 8.125%, 5/15/02 1,298
Bank One Corporation Notes,
300 6.875%, 8/01/06 293
Barclays American Corp. Debentures,
250 9.75%, 5/15/21 264
CE Generations LLC,
592 7.416%, 12/15/18 555
CIT Group, Inc. Senior Notes,
950 5.57%, 12/08/03 900
Commonwealth Edison Debentures,
900 9.875%, 6/15/20 986
Compass Bancshares, Inc. Subordinated Notes,
400 8.375%, 9/15/04 415
Continental Bank Subordinated Notes,
300 12.50%, 4/01/01 306
Continental Cablevision, Inc. Debentures:
350 8.875%, 9/15/05 371
900 9.50%, 8/01/13 976
Donaldson,Lufkin & Jenrette Senior Notes:
1,000 6.00%, 12/01/01 992
800 6.875%, 11/01/05 781
Dresdner Bank New York Subordinated
Debentures,
800 7.25%, 9/15/15 745
Duty Free International, Inc. Notes,
975 7.00%, 1/15/04 941
Dynegy, Inc. Senior Notes,
1,000 7.45%, 7/15/06 997
Federal Express Corporation Notes,
500 9.65%, 6/15/12 553
First Bank System Subordinated Notes,
975 6.625%, 5/15/03 967
General Motors Acceptance Corp.
Medium Term Notes,
1,000 6.70%, 4/30/01 1,000
Georgia Pacific Corporation Debentures:
300 9.50%, 12/01/11 320
300 9.875%, 11/01/21 307
100 9.50%, 5/15/22 99
Goldman Sachs Group Notes,
1,500 6.25%, 2/01/03 (Acquired 2/01/96;
Cost $1,496)<F2> 1,471
Heller Financial, Inc. Notes,
170 8.00%, 6/15/05 172
Keycorp Subordinated Notes,
730 8.00%, 7/01/04 749
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
Corporate Bonds 14.9% (cont.)
Lehman Brothers Holdings, Inc. Notes:
$ 350 6.65%, 11/08/00 $ 350
200 8.75%, 5/15/02 204
500 7.80%, 7/07/05 506
500 8.50%, 8/01/15 512
Marlin Water Trust Senior Notes,
677 7.09%, 12/15/01 (Acquired 12/9/98,
Cost $680)<F2> 673
The May Department Stores Company Debentures,
300 9.875%, 6/15/21 316
Merrill Lynch & Co. Notes,
925 6.875%, 11/15/18 848
NCNB Corporation Subordinated Notes,
750 10.20%, 7/15/15 886
News America Holdings, Inc. Debentures,
300 10.125%, 10/15/12 324
PSI Energy, Inc. Debentures,
600 7.85%, 10/15/07 594
Paine Webber Group, Inc. Notes:
500 7.875%, 2/15/03 511
500 8.875%, 3/15/05 534
JC Penney Company, Inc. Debentures:
625 9.75%, 6/15/21 411
500 8.25%, 8/15/22 259
Rochester Telephone Debentures,
400 9.00%, 8/15/21 396
Salomon, Inc. Senior Notes,
575 6.75%, 2/15/03 572
Salomon Smith Barney Holdings, Inc. Notes,
700 6.875%, 6/15/05 688
Stagecoach Holdings PLC Notes,
300 8.625%, 11/15/09 270
TRW, Inc.,
1,000 6.30%, 5/15/08 895
Tenneco, Inc. Debentures,
425 7.95%, 12/15/25 356
USF&G Corporation Senior Notes:
1,000 8.375%, 6/15/01 1,007
350 7.125%, 6/01/05 345
U.S. West Communications Group Debentures,
575 8.875%, 6/01/31 581
Utilicorp United Inc. Senior Notes,
350 7.00%, 7/15/04 340
-------
32,680
-------
INTERNATIONAL/YANKEE
(U.S. $ DENOMINATED) 3.3%
Banco Santander-Chile Notes,
475 6.500%, 11/01/05 459
Ford Capital BV Debentures,
325 9.875%, 5/15/02 338
Hydro-Quebec Corporation Debentures:
350 11.75%, 2/01/12 468
500 9.75%, 1/15/18 522
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
INTERNATIONAL/YANKEE
(U.S. $ DENOMINATED) 3.3% (CONT.)
Korea Development Bank Bonds,
$ 585 7.125%, 9/17/01 $ 582
Korea Electric Power Debentures:
290 7.75%, 4/01/13 267
200 6.75%, 8/01/27 189
Midland Bank PLC Subordinated Notes,
950 6.95%, 3/15/11 902
National Bank of Hungary Debentures,
250 8.875%, 11/01/13 265
Norsk Hydro A/S Debentures,
350 9.00%, 4/15/12 387
Principal Financial Group (Australia)
Senior Notes,
1,400 8.20%, 8/15/09 (Acquired 8/18/99,
Cost $1,396)<F2> 1,411
Sweden (Kingdom of) Debentures,
150 11.125%, 6/01/15 202
WestDeutsche Landesbank NY Subordinated Notes,
700 6.05%, 1/15/09 638
Wharf Capital International Ltd. Notes:
325 8.875%, 11/01/04 336
225 7.625%, 3/13/07 214
-------
7,180
-------
U.S. GOVERNMENT AGENCY-BACKED MORTGAGE ISSUES 2.9%
Federal Home Loan Mortgage Corporation
(FHLMC),
2,950 Notes, 6.625%, 9/15/09 2,928
Real Estate Mortgage Investment Conduit
(REMIC):
232 Series 85, Class C, 8.60%, 1/15/21 237
309 Series 1136, Class H, 6.00%, 9/15/21 299
197 Series 1201, Class E, 7.40%, 12/15/21 198
Federal National Mortgage Association (FNMA),
2,000 7.125%, 3/15/07 2,056
Real Estate Mortgage Investment Conduit
(REMIC):
237 Series 1989-37, Class XX, 8.00%, 7/25/19 240
209 Series 1990-30, Class E, 6.50%, 3/25/20 203
212 Series 1990-105, Class J, 6.50%, 9/25/20 207
-------
6,368
-------
U.S. TREASURY OBLIGATIONS 10.9%
U.S. Treasury Bonds:
175 9.875%, 11/15/15 242
13,685 9.25%, 2/15/16 18,092
1,500 8.00%, 11/15/21 1,854
U.S. Treasury Notes,
3,700 6.625%, 5/15/07 3,852
-------
24,040
-------
Total Long-Term Investments (Cost $72,851) 73,765
-------
Number
of Shares Market Value
(in thousands) (in thousands)
-------------- --------------
SHORT-TERM INVESTMENTS 7.0%
INVESTMENT COMPANIES 7.0%
4,863 Financial Square Prime Obligation Fund $ 4,863
10,633 Short-Term Investments Co. Liquid Assets
Portfolio 10,633
-------
Total Investment Companies (Cost $15,496) 15,496
-------
Total Short-Term Investments (Cost $15,496) 15,496
-------
Total Investments (Cost $173,966) 98.5% 216,468
-------
Other Assets, less Liabilities 1.5% 3,313
-------
TOTAL NET ASSETS 100.0% $219,781
========
<F1>Non-income producing
<F2>Unregistered security
ADR - American Depository Receipt
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
GROWTH & INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
COMMON STOCKS 91.0%
Air Transportation 0.2%
53,200 Southwest Airlines Company $ 1,516
-------
BANKING 6.3%
274,300 Bank of New York 15,789
233,700 Mellon Financial Corporation 11,276
161,800 Northern Trust Corporation 13,814
81,100 Wells Fargo Company, Inc. 3,756
-------
44,635
-------
BUSINESS MACHINES & SOFTWARE 4.3%
17,800 Adobe Systems, Inc. 1,354
80,200 Hewlett-Packard Company 3,724
46,500 International Business Machines Corporation 4,580
228,900 Microsoft Corporation<F1> 15,765
45,675 Sun Microsystems, Inc.<F1> 5,064
-------
30,487
-------
BUSINESS SERVICES 4.0%
169,000 Automatic Data Processing, Inc. 11,038
207,300 Manpower, Inc. 7,217
224,400 Robert Half International, Inc.<F1> 6,844
60,900 SunGard Data Systems, Inc.<F1> 3,113
-------
28,212
-------
CHEMICALS 3.4%
256,400 Ecolab, Inc. 10,048
178,100 Millipore Corporation 9,350
133,200 Praxair, Inc. 4,936
-------
24,334
-------
COMMUNICATIONS & MEDIA 3.7%
155,800 Interpublic Group of Companies, Inc. 6,690
89,900 The Walt Disney Company 3,220
111,100 Time Warner, Inc. 8,434
143,311 Viacom, Inc.<F1> 8,151
-------
26,495
-------
COMPUTERS 1.7%
135,700 EMC Corporation<F1> 12,086
-------
CONSUMER PRODUCTS 0.6%
79,900 Avery Dennison Corporation 4,035
-------
COSMETICS & SOAP 1.5%
132,900 Avon Products, Inc. 6,446
83,700 The Estee Lauder Companies, Inc. 3,887
-------
10,333
-------
Number Market Value
of Shares (in thousands)
--------- --------------
DRUGS & MEDICAL SUPPLY 7.1%
171,800 American Home Products Corporation $ 10,909
169,400 Bristol-Myers Squibb Company 10,323
50,300 Eli Lilly & Company 4,496
81,200 Johnson & Johnson 7,480
100,300 Merck & Company, Inc. 9,021
196,500 Pfizer, Inc. 8,486
-------
50,715
-------
ELECTRIC 1.9%
59,800 Duke Power Company 5,169
65,200 Exelon Corporation 3,912
143,900 Montana Power Company 4,065
-------
13,146
-------
ELECTRICAL EQUIPMENT 1.5%
190,200 General Electric Company 10,425
-------
ELECTRONICS 4.4%
68,275 Analog Devices, Inc.<F1> 4,438
36,800 Celestica, Inc.<F1> 2,645
75,100 Flextronics International, Ltd.<F1> 2,854
197,800 Intel Corporation 8,901
131,900 Molex, Inc. - Class A 5,185
149,400 Texas Instruments, Inc. 7,330
-------
31,353
-------
ENTERTAINMENT & LEISURE 1.0%
292,400 Carnival Corporation 7,255
-------
FINANCIAL SERVICES 10.4%
338,100 Alliance Capital Management L.P. 16,229
127,800 American Express Company 7,668
303,066 Citigroup Inc. 15,949
201,800 Franklin Resources, Inc. 8,645
87,000 Marsh & McLennan Companies, Inc. 11,375
113,700 Merrill Lynch & Company, Inc. 7,959
78,600 Morgan Stanley Dean Witter & Company 6,312
-------
74,137
-------
Food, Beverages & Tobacco 3.6%
208,700 Anheuser-Busch Companies, Inc. 9,548
209,000 PepsiCo, Inc. 10,123
108,600 Sysco Corporation 5,668
-------
25,339
-------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
GROWTH & INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- -------------
HEALTHCARE SERVICES & SUPPLIES 2.5%
135,900 Baxter International, Inc. $ 11,169
170,600 HCA - The Healthcare Company 6,813
-------
17,982
-------
INSURANCE 2.4%
94,600 Ambac Financial Group, Inc. 7,550
94,650 American International Group, Inc. 9,276
-------
16,826
-------
MULTI-INDUSTRY 1.5%
192,200 Tyco International, Ltd. 10,895
-------
NATURAL GAS 1.5%
96,100 Enron Corporation 7,886
76,000 The Williams Companies, Inc. 3,178
-------
11,064
-------
OIL - DOMESTIC 1.7%
73,000 Phillips Petroleum Company 4,508
279,300 USX Corporation - Marathon Group, Inc. 7,593
-------
12,101
-------
OIL - EXPLORATION & Production 0.5%
69,800 Apache Corporation 3,861
-------
OIL - INTERNATIONAL 1.8%
141,619 Exxon Mobil Corporation 12,631
-------
OIL & GAS - SERVICES 2.2%
174,800 Nabors Industries<F1> 8,897
86,000 Schlumberger Ltd. 6,547
-------
15,444
-------
PAPER & FOREST PRODUCTS 0.9%
99,600 Kimberly-Clark Corporation 6,574
-------
PRINTING & PUBLISHING 2.9%
109,700 Harcourt General, Inc. 6,149
230,200 McGraw-Hill, Inc. 14,776
-------
20,925
-------
Real Estate Investment Trusts (REITs) 1.0%
183,400 AMB Property Corporation 4,310
57,575 Spieker Properties, Inc. 3,188
-------
7,498
-------
Number Market Value
of Shares (in thousands)
--------- --------------
RETAIL 6.1%
143,100 Costco Wholesale Corporation<F1> $ 5,241
113,900 Gap, Inc. 2,940
16,800 Kohl's Corporation<F1> 910
141,200 Lowe's Companies, Inc. 6,451
225,525 Safeway, Inc.<F1> 12,169
133,900 Target Corporation 3,699
267,000 Walgreen Company 12,182
-------
43,592
-------
TELECOMMUNICATIONS 5.8%
66,000 ALLTEL Corporation 4,253
240,900 SBC Communications, Inc. 13,957
303,300 Verizon Communications 17,534
240,200 WorldCom, Inc.<F1> 5,705
-------
41,449
-------
TELECOMMUNICATIONS EQUIPMENT 4.0%
226,000 Cisco Systems, Inc.<F1> 12,176
48,900 Corning Incorporated 3,741
91,500 Nokia Corporation 3,912
185,500 Nortel Networks Corporation 8,440
-------
28,269
-------
TRANSPORTATION 0.6%
60,750 United Parcel Service, Inc. 3,691
-------
Total Common Stocks (Cost $452,719) 647,305
-------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
GROWTH & INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
PREFERRED STOCKS 2.6%
COMMUNICATIONS 0.7%
23,100 Cox Communications Inc.,
7.75%, 11/15/29 (convertible to
Sprint PCS Inc. common stock) $ 1,796
13,400 Global Crossing Inc.,
6.75%, 4/15/12 (convertible to
Global Crossing Inc. common stock) 2,738
Drugs 0.9%
137,000 Monsanto Corporation,
6.50%, 11/30/03 (convertible to
Pharmacia Corporation common stock) 6,602
Natural Gas 1.0%
216,500 Enron Corporation,
7.00%, 7/31/02 (convertible to EOG
Resources common stock) 7,401
-------
Total Preferred Stocks (Cost $16,504) 18,537
-------
Number
of Shares Market Value
(in thousands) (in thousands)
-------------- --------------
SHORT-TERM INVESTMENTS 6.0%
INVESTMENT COMPANIES 6.0%
8,634 Financial Square Prime Obligation Fund $ 8,634
34,109 Short-Term Investments Co. Liquid
Assets Portfolio 34,109
-------
Total Short-Term Investments (Cost $42,743) 42,743
-------
Total Investments (Cost $511,966) 99.6% 708,585
-------
Other Assets, less Liabilities 0.4% 3,010
-------
TOTAL NET ASSETS 100.0% $711,595
========
<F1>Non-income producing
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
COMMON STOCKS 91.3%
BANKING 11.9%
28,000 Comerica, Inc. $ 1,689
36,000 First Union Corporation 1,091
47,000 National City Group 1,005
22,000 PNC Bank Corporation 1,471
34,000 Union Planters Corporation 1,150
-------
6,406
-------
BEVERAGES 1.8%
20,000 PepsiCo, Inc. 969
-------
BUILDING PRODUCTS 1.4%
35,000 Sherwin-Williams Company 759
-------
BUSINESS SERVICES 2.4%
26,000 First Data Corporation 1,303
-------
COMPUTERS 3.6%
16,800 Hewlett-Packard Company 780
12,000 IBM Corporation 1,182
-------
1,962
-------
COMPUTER SERVICES 3.3%
35,000 SunGard Data Systems Inc.<F1> 1,789
-------
ELECTRONIC COMPONENTS & SEMICONDUCTORS 1.7%
10,000 Integrated Device Technology, Inc.<F1> 563
8,000 Intel Corporation 360
-------
923
-------
ELECTRONIC MEASURING INSTRUMENTS 0.3%
3,203 Agilent Technologies, Inc.<F1> 148
-------
FINANCIAL SERVICES 12.2%
26,666 Citigroup Inc. 1,403
21,000 Fannie Mae 1,617
46,000 MBNA Corporation 1,728
38,000 Mellon Financial Corporation 1,834
-------
6,582
-------
FOOD PRODUCTS & SERVICES 5.3%
30,000 H.J. Heinz Company 1,258
30,000 Ralston Purina Group 728
41,000 Sara Lee Corporation 884
-------
2,870
-------
HEALTH CARE 2.1%
27,000 C.R. Bard, Inc. 1,131
-------
Number Market Value
of Shares (in thousands)
--------- --------------
INSURANCE 1.4%
10,000 The Hartford Financial Services Group, Inc. $ 744
-------
MEDICAL EQUIPMENT & SUPPLIES 2.8%
18,000 Baxter International, Inc. 1,479
-------
OIL & EXPLORATION, PRODUCTION &
SERVICES 6.3%
22,000 Murphy Oil Corporation 1,275
26,000 National Fuel Gas Company 1,394
25,000 Precision Drilling Corporation<F1> 716
-------
3,385
-------
OIL COMPANIES - INTEGRATED 5.5%
27,000 Phillips Petroleum Company 1,667
48,000 USX- Marathon Group, Inc. 1,305
-------
2,972
-------
PHARMACEUTICALS 6.2%
36,000 Abbott Laboratories 1,901
26,000 Pharmacia Corporation 1,430
-------
3,331
-------
REAL ESTATE INVESTMENT TRUSTS (REITs) 4.1%
43,000 Archstone Communities Trust 1,013
48,000 Prentiss Properties Trust 1,218
-------
2,231
-------
RETAIL STORES 1.9%
22,300 Lowe's Co, Inc. 1,019
-------
TELECOMMUNICATIONS 4.3%
16,000 Alcatel,ADR 998
23,180 Verizon Communications 1,340
-------
2,338
-------
UTILITIES - GAS & ELECTRIC 9.7%
30,000 Cinergy Corporation 919
38,000 Constellation Energy Group, Inc. 1,584
24,000 Duke Energy Corporation 2,074
10,698 El Paso Energy Corporation 671
-------
5,248
-------
WHOLESALE DISTRIBUTION 3.1%
32,000 Sysco Corporation 1,670
-------
Total Common Stocks (Cost $33,467) 49,259
-------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Principal
Amount Market Value
(in thousands) (in thousands)
-------------- --------------
SHORT-TERM INVESTMENTS 8.8%
COMMERCIAL PAPER 5.2%
$ 304 Lucent Technologies, Inc., 6.65%, 11/01/00 $ 304
2,542 Merrill Lynch & Co., Inc., 6.55%, 11/01/00 2,542
-------
Total Commercial Paper (Cost $2,846) 2,846
-------
U.S. Government Agency 3.6%
1,929 Sallie Mae, 6.30%, 11/01/00 1,929
-------
Total U.S. Government Agency (Cost $1,929) 1,929
-------
Total Short-Term Investments (Cost $4,775) 4,775
-------
Total Investments (Cost $38,242) 100.1% 54,034
-------
Liabilities, less Other Assets (0.1)% (79)
-------
TOTAL NET ASSETS 100.0% $53,955
=======
<F1>Non-income producing
ADR - American Depository Receipt
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
RELATIVE VALUE FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- -------------
COMMON STOCKS 100.0%
AEROSPACE 2.5%
240,625 Honeywell, Inc. $ 12,948
--------
AIRLINES 0.7%
80,000 Delta Air Lines, Inc. 3,780
--------
APPLIANCES 0.8%
100,000 Whirlpool Corporation 4,350
--------
AUTOMOBILE 1.9%
227,262 Ford Motor Company 5,937
65,000 General Motors Corporation 4,038
--------
9,975
--------
AUTOMOTIVE & RELATED 0.6%
50,000 Johnson Controls, Inc. 2,981
-------
BANKS & SAVINGS INSTITUTIONS 18.1%
243,230 AmSouth Bancorporation 3,390
70,000 Bank of America Corporation 3,364
300,000 Bank of New York Co., Inc. 17,269
430,000 Citigroup Inc. 22,629
192,500 First Financial Bancorp 2,984
165,000 First Tennessee National Corporation 3,795
300,000 KeyCorp 7,406
200,000 Mellon Financial Corporation 9,650
115,000 National City Corporation 2,458
160,000 North Fork Bancorporation, Inc. 3,230
100,000 PNC Financial Services Corporation 6,687
100,000 TCFFinancial Corporation 4,044
250,000 Union Planters Corporation 8,453
--------
95,359
--------
CHEMICALS 0.8%
135,000 The Dow Chemical Company 4,134
--------
COMPUTER SOFTWARE 2.2%
170,000 Microsoft Corporation<F1> 11,709
--------
DRUGS 14.8%
200,000 American Home Products Corporation 12,700
260,000 Bristol-Myers Squibb Company 15,844
207,000 Merck & Co., Inc. 18,617
275,000 Pharmacia Corporation 15,125
240,000 Smithkline Beecham Corporation, ADR 15,645
--------
77,931
--------
ELECTRICAL EQUIPMENT 4.7%
450,000 General Electric Company 24,665
-------
Number Market Value
of Shares (in thousands)
--------- --------------
ELECTRONICS 7.4%
60,000 Applied Materials, Inc.<F1> $ 3,187
800,000 Intel Corporation 36,000
--------
39,187
--------
HOUSEHOLD PRODUCTS 5.1%
230,000 Gillette Company 8,021
260,000 Proctor &Gamble Company 18,574
--------
26,595
--------
INSURANCE 2.3%
170,000 Cincinnati Financial Corporation 6,248
700,000 Ohio Casualty Corporation 5,884
--------
12,132
--------
MISC. FINANCIAL SERVICES 2.6%
225,000 American Express Company 13,500
--------
OFFICE & BUSINESS EQUIPMENT 7.1%
380,000 InternationalBusiness Machines Corporation 37,430
--------
OIL 9.6%
114,800 BP Amoco PLC, ADR 5,848
195,382 Exxon Mobil Corporation 17,426
156,000 Royal Dutch Petroleum Company, ADR 9,262
300,000 Texaco, Inc. 17,719
--------
50,255
PAPER & FOREST PRODUCTS 0.7% --------
100,000 International Paper Company 3,663
--------
RETAILING & APPAREL 1.2%
200,000 FederatedDepartment Stores, Inc.<F1> 6,513
--------
STEEL 0.4%
250,000 AK Steel Holding Corporation 2,313
--------
TELECOMMUNICATIONS 9.6%
253,500 AT&T Corporation 5,878
800,000 BroadWing Inc.<F1> 22,600
67,000 Cable &Wireless Communications PLC, ADR 2,885
185,440 VerizonCommunications 10,721
195,000 Vodafone AirTouch PLC, ADR 8,300
--------
50,384
--------
TOBACCO 2.4%
350,000 Philip Morris Companies, Inc. 12,819
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
RELATIVE VALUE FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
----------- --------------
Utilities - Electric 4.5%
250,000 Cinergy Corporation $ 7,656
100,000 Duke Energy Corporation 8,644
190,000 TXU Corporation 7,042
--------
23,342
--------
Total Common Stocks (Cost $285,443) 525,965
--------
Number
of Shares
(in thousands)
--------------
SHORT-TERM INVESTMENT 0.0%
Investment Company 0.0%
162 Short-Term Investments Co. Gov.
Agency Portfolio 162
--------
Total Short-Term Investment (Cost $162) 162
--------
Total Investments (Cost $285,605) 100.0% 526,127
--------
Liabilities, less Other Assets 0.0% (26)
--------
TOTAL NET ASSETS 100.0% $526,101
========
<F1>Non-income producing
ADR - American Depository Receipt
PLC - Public LimitedCompany
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
COMMON STOCKS 97.4%
AEROSPACE & AIRCRAFT 1.2%
56,926 Boeing Company $ 3,860
12,100 General Dynamics Corporation 866
24,468 Lockheed Martin Corporation 877
3,800 Northrop Grumman Corporation 319
20,800 Raytheon Company 711
11,800 Rockwell International Corporation 464
9,300 Textron, Inc. 469
29,900 United Technologies Corporation 2,087
--------
9,653
--------
AIR TRANSPORTATION 0.2%
10,700 AMR Corporation<F1> 350
8,400 Delta Air Lines, Inc. 397
29,925 Southwest Airlines Company 853
4,700 US Airways Group, Inc.<F1> 177
--------
1,777
--------
APPLIANCES 0.1%
2,200 Armstrong Holdings, Inc. 6
5,300 Black & Decker Corporation 199
5,300 Maytag Corporation 152
3,900 Snap-On Tools, Inc. 100
4,600 Whirlpool Corporation 200
--------
657
--------
AUTOS & TRUCKS 0.9%
8,300 Autozone, Inc.<F1> 223
10,038 Dana Corporation 223
33,638 Delphi Automotive Systems 528
4,500 Eaton Corporation 306
105,100 Ford Motor Company 2,746
33,600 General Motors Corporation 2,087
11,237 Genuine Parts Company 239
5,600 ITT Industries, Inc. 182
3,900 Navistar International Corporation 129
4,240 PACCAR, Inc. 178
7,200 TRW, Inc. 302
9,819 Visteon Corporation 174
--------
7,317
BANKING 6.9%
24,400 AMSouth Bancorp 340
70,994 Banc One Corporation 2,591
101,507 BankAmerica Corporation 4,879
42,600 Bank of New York Company, Inc. 2,452
20,700 BB&T Corporation 660
81,330 Chase Manhattan Corporation 3,701
272,502 Citigroup, Inc. 14,340
9,100 Comerica, Inc. 549
Number Market Value
of Shares (in thousands)
--------- --------------
BANKING 6.9% (CONT.)
27,975 Fifth Third Bancorp $ 1,437
59,737 Firstar Corporation 1,176
61,728 First Union Corporation 1,871
56,305 Fleet Financial Group, Inc. 2,140
17,149 Huntington Bancshares Incorporated 247
9,400 J.P. Morgan & Co., Inc. 1,556
30,400 Mellon Bank Corporation 1,467
13,700 Northern Trust Corporation 1,170
7,350 Old Kent Financial Corporation 204
18,800 PNC Financial Service Group 1,257
13,300 Regions Financial Corporation 313
10,000 SouthTrust Corporation 324
10,000 State Street Corporation 1,247
10,200 Summit Bancorp. 383
19,900 Sun Trust Banks, Inc. 971
16,100 Synovus Financial Corp. 347
45,055 US Bancorp 1,090
8,500 Union Planters Corporation 287
12,100 Wachovia Corporation 653
33,937 Washington Mutual, Inc. 1,493
98,830 Wells Fargo & Company 4,577
--------
53,722
--------
BIO-TECHNOLOGY 0.5%
63,400 Amgen, Inc.<F1> 3,673
--------
BUILDING & HOUSING 0.1%
3,700 Centex Corporation 137
4,600 Fluor Corporation 161
3,000 Kaufman and Broad Home Corporation 89
27,100 Masco Corporation 506
2,700 Pulte Corporation 90
6,100 The Stanley Works 162
--------
1,145
--------
BUILDING MATERIALS 0.1%
4,800 Johnson Controls, Inc. 286
2,900 Owens-Corning Corporation 4
5,900 Vulcan Materials Company 248
--------
538
--------
BUSINESS MACHINES & SOFTWARE 5.1%
20,000 Apple Computer, Inc.<F1> 391
105,309 COMPAQ Computer Corporation 3,202
48,825 Honeywell, Inc. 2,627
109,700 International Business Machines Corporation 10,805
338,772 Oracle Systems Corporation<F1> 11,179
16,600 Pitney-Bowes, Inc. 493
94,400 Sun Microsystems, Inc.<F1> 10,467
41,000 Xerox Corporation 346
--------
39,510
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
BUSINESS SERVICES 4.3%
3,300 Autodesk, Inc. $ 73
38,300 Automatic Data Processing, Inc. 2,501
5,700 H & R Block, Inc. 203
15,100 BMC Software<F1> 307
8,800 Ceridian Corporation<F1> 220
425,400 Cisco Systems, Inc.<F1> 22,918
33,187 Computer Associates International, Inc. 1,058
10,400 Computer Sciences Corporation<F1> 655
8,700 Convergys Corporation<F1> 379
4,700 Deluxe Corporation 106
4,860 Dun & Bradstreet Corporation 105
27,300 Electronic Data Systems 1,281
9,000 Equifax Inc. 311
23,700 First Data Corporation 1,188
2,600 National Service Industries 53
21,900 Paychex, Inc.<F1> 1,241
7,200 Quintiles Transnational Corporation<F1> 100
19,400 Unisys Corporation<F1> 247
4,200 Young & Rubicam Inc. 235
--------
33,181
--------
CHEMICALS 1.1%
13,700 Air Products and Chemicals, Inc. 511
40,800 Dow Chemical Company 1,250
65,199 Dupont (E.I.) De Nemours & Company 2,958
4,637 Eastman Chemical Company 199
7,900 Ecolab, Inc. 310
4,500 W.R. Grace & Co.<F1> 17
3,100 Great Lakes Chemical Corporation 103
6,000 Hercules, Inc. 110
2,600 Millipore Corporation 137
10,300 PPG Industries, Inc. 460
9,400 Praxair, Inc. 350
12,644 Rohm & Haas Company 380
10,100 Sherwin-Williams Company 219
6,300 Sigma-Aldrich Corporation 225
8,350 Union Carbide Corporation 359
26,800 The Williams Companies, Inc. 1,121
--------
8,709
COMMUNICATIONS & MEDIA 1.8%
4,350 Andrew Corporation<F1> 114
20,600 Clear Channel Communications, Inc.<F1> 1,237
55,600 Comcast Corporation - Class A 2,266
5,100 Dow Jones & Company, Inc. 300
17,300 Gannett Company, Inc. 1,003
4,300 Harcourt General, Inc. 241
17,500 Interpublic Group of Companies, Inc. 751
5,000 Knight-Ridder, Inc. 251
Number Market Value
of Shares (in thousands)
--------- --------------
COMMUNICATIONS & MEDIA 1.8% (cont.)
10,800 New York Times Company - Class A $ 397
10,600 Omnicom Group, Inc. 978
79,700 Time Warner, Inc. 6,050
18,007 Tribune Company 667
--------
14,255
COMPUTERS 3.1%
160,900 Dell Computer Corporation<F1> 4,747
127,800 EMC Corporation<F1> 11,382
18,600 Gateway 2000, Inc.<F1> 960
6,000 NCR Corporation<F1> 259
18,600 Network Appliance, Inc.<F1> 2,213
13,900 Seagate Technology, Inc.<F1> 971
24,300 Veritas Software Corporation<F1> 3,427
--------
23,959
--------
CONSUMER DURABLES 0.1%
19,950 Eastman Kodak Company 895
2,128 Polaroid Corporation 21
--------
916
--------
CONSUMER PRODUCTS 0.2%
7,200 Avery Dennison Corporation 364
18,800 Nabisco Group Holdings 543
17,500 Newell Rubbermaid, Inc. 336
3,200 Tupperware Corporation 55
608 Water Pik Technologies, Inc.<F1> 6
--------
1,304
--------
CONTAINERS 0.1%
1,900 Ball Corporation 67
2,800 Bemis Company, Inc. 72
6,900 Crown Cork & Seal Company, Inc. 63
8,900 Owens-Illinois, Inc.<F1> 53
9,624 Pactiv Corporation<F1> 101
4,904 Sealed Air Corporation<F1> 236
--------
592
--------
COSMETICS & SOAP 1.5%
3,500 Alberto-Culver Company 117
16,200 Avon Products, Inc. 786
14,000 Clorox Company 625
36,200 Colgate-Palmolive Company 2,127
64,588 Gillette Company 2,253
6,600 International Flavors & Fragrances, Inc. 111
81,000 Procter & Gamble Company 5,786
--------
11,805
--------
DISTRIBUTION 0.0%
9,358 Ikon Office Solutions, Inc. 30
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- -------------
DIVERSIFIED 0.3%
8,100 Danaher Corporation $ 511
35,410 Unilever N.V. 1,799
--------
2,310
--------
DRUGS 10.3%
91,900 Abbott Laboratories 4,853
8,000 Allergan, Inc. 673
6,000 Alza Corporation,<F1> Class A 486
80,200 American Home Products Corporation 5,093
3,100 Bard (C.R.), Inc. 130
18,100 Baxter International, Inc. 1,488
14,400 Becton, Dickinson & Company 482
9,300 Biogen, Inc.<F1> 560
118,440 Bristol-Myers Squibb Company 7,217
16,850 Cardinal Health, Inc. 1,597
9,500 Humana, Inc.<F1> 115
85,400 Johnson & Johnson 7,867
68,100 Eli Lilly & Company 6,086
13,400 MedImmune, Inc.<F1> 876
74,700 Medtronic, Inc. 4,057
140,900 Merck & Company, Inc. 12,672
381,400 Pfizer, Inc. 16,472
76,412 Pharmacia Corporation 4,203
87,800 Schering-Plough 4,538
5,400 St. Jude Medical, Inc.<F1> 297
18,800 Tenet Healthcare Corporation<F1> 739
5,800 Watson Pharmaceuticals, Inc.<F1> 363
--------
80,864
--------
ELECTRIC 1.0%
25,800 AES Corp. 1,458
7,700 Ameren Corporation 306
9,632 CINenergy Corporation 295
6,900 CMS Energy Corporation 186
13,700 Consolidated Edison Company of New York, Inc. 482
8,950 Constellation Energy Group 373
22,528 Duke Power Company 1,947
20,700 Edison International 494
6,700 Florida Progress Corporation 356
7,600 General Public Utilities Corporation 251
5,300 Pinnacle West Capital Corporation 230
16,600 TXU Corporation 615
19,540 Xcel Energy, Inc. 499
--------
7,492
--------
ELECTRICAL EQUIPMENT 4.7%
27,000 Emerson Electric Company 1,983
595,600 General Electric Company 32,646
5,600 Grainger (W.W.), Inc. 179
37,300 Solectron Corporation<F1> 1,641
--------
36,449
--------
Number Market Value
of Shares (in thousands)
--------- --------------
ELECTRONICS 5.4%
24,142 Agilent Technologies, Inc.<F1> $ 1,118
21,900 Analog Devices<F1> 1,424
13,400 Broadcom Corporation<F1> 2,980
123,800 Hewlett-Packard Company 5,749
414,600 Intel Corporation 18,657
8,100 Lexmark International Group, Inc.<F1> 332
12,250 Molex Incorporated 662
133,256 Motorola, Inc. 3,323
10,000 National Semiconductor Corporation<F1> 260
31,147 Palm, Inc.<F1> 1,668
8,900 Sanmina Corporation<F1> 1,017
3,450 Tektronix, Inc.<F1> 246
101,300 Texas Instruments, Inc. 4,970
3,400 Thomas & Betts Corporation 51
--------
42,457
--------
ENERGY 1.2%
18,520 American Electric Power Company 769
9,000 Carolina Power & Light Company 363
12,650 Coastal Corporation 954
13,822 Dominion Resources, Inc. 823
8,900 DTE Energy Company 322
14,300 El Paso Energy Corporation 896
14,900 Entergy Corporation 571
14,100 FirstEnergy Corp. 365
11,700 FPL Group, Inc. 772
11,600 Niagara Mohawk Power Corporation<F1> 186
3,300 NICOR, Inc. 117
23,800 Pacific Gas & Electric Company 641
13,100 Public Service Enterprises Group, Inc. 544
17,672 Reliant Energy, Inc. 730
14,017 Sempra Energy 290
40,200 Southern Company 1,181
--------
9,524
--------
ENERGY - RAW MATERIALS 0.3%
19,990 Baker Hughes, Inc. 687
27,300 Halliburton Company 1,012
20,700 Occidental Petroleum Corporation 411
--------
2,110
ENTERTAINMENT & LEISURE 1.2%
7,700 Brunswick Corporation 150
38,000 Carnival Corporation 943
12,187 Hasbro, Inc. 131
24,387 Mattel, Inc. 316
84,100 McDonald's Corporation 2,607
94,416 Viacom, Inc. - Class B<F1> 5,370
8,050 Wendy's International, Inc. 175
--------
9,692
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
FINANCE 1.6%
82,700 American Express Company $ 4,962
7,717 Bear Stearns Companies, Inc. 468
29,706 Household International, Inc. 1,495
14,400 Lehman Brothers Holdings, Inc. 929
49,000 Merrill Lynch & Company, Inc. 3,430
38,200 National City Corporation 817
--------
12,101
FINANCIAL SERVICES 2.8%
45,090 Associates First Capital Corporation -
Class A 1,674
12,200 Capital One Financial Corporation 770
17,900 The CIT Group, Inc. - Class A 312
18,815 Conseco, Inc. 131
6,600 Countrywide Credit Industries, Inc. 247
62,400 Federal National Mortgage Association 4,805
15,000 Franklin Resources, Inc. 643
3,250 Kansas City Southern Industries 28
6,000 MBIA, Inc. 436
49,662 MBNA Corporation 1,865
9,721 Moody's 256
70,732 Morgan Stanley Group, Inc. 5,681
8,700 Paine Webber 620
75,900 The Charles Schwab Corporation 2,666
13,000 Stilwell Financial, Inc. 583
7,300 T. Rowe Price Associates, Inc. 342
9,700 USA Education, Inc. 542
--------
21,601
--------
FOOD, BEVERAGES & TOBACCO 3.8%
38,595 Archer-Daniels-Midland Company 425
27,000 Campbell Soup Company 790
150,800 Coca-Cola Company 9,105
26,300 Coca-Cola Enterprises 483
30,250 ConAgra, Inc. 647
9,800 Dardeen Restaurants, Inc. 221
10,000 Fortune Brands, Inc. 294
18,000 General Mills, Inc. 752
2,400 Great Atlantic & Pacific Tea Company, Inc. 24
22,300 Heinz (H.J.) Company 935
8,300 Hershey Foods Corporation 451
25,100 Kellogg Company 637
23,900 Lowe's Companies, Inc 1,092
89,200 PepsiCo, Inc. 4,321
143,400 Philip Morris Companies, Inc. 5,252
8,000 Quaker Oats Company 653
19,400 Ralston-Ralston Purina Group 470
56,000 Sara Lee Corporation 1,208
20,600 Sysco Corporation 1,075
Number Market Value
of Shares (in thousands)
--------- --------------
FOOD, BEVERAGES & TOBACCO 3.8% (CONT.)
9,120 Tricon Global Restaurants, Inc.<F1> $ 274
10,900 UST, Inc. 275
6,800 Wrigley (Wm) Jr. Company 538
--------
29,922
--------
GOLD & PRECIOUS METALs 0.1%
23,200 Barrick Gold Corporation 310
9,600 Freeport McMoRan Copper & Gold, Inc. 76
15,500 Homestake Mining Company 64
19,361 Placer Dome, Inc. 157
--------
607
--------
HEALTH CARE SERVICES & SUPPLIES 0.6%
3,400 Bausch & Lomb, Inc. 131
24,500 Boston Scientific Corporation<F1> 390
33,828 Columbia/HCA Healthcare Corporation 1,351
25,700 HEALTHSOUTH Corporation<F1> 308
18,842 IMS Health, Inc. 445
6,300 Manor Care, Inc.<F1> 105
16,494 McKesson HBOC, Inc. 463
942 SYNAVANT, Inc.<F1> 4
10,000 UnitedHealth Group, Inc. 1,094
4,300 Wellpoint Health Networks<F1> 503
--------
4,794
--------
HOME FURNISHINGS 0.0%
11,700 Leggett & Platt, Inc. 192
--------
HOSPITAL SUPPLIES & SERVICES 0.0%
9,750 Biomet, Inc. 353
--------
HOUSEHOLD PRODUCTS 0.1%
12,300 Federated Department Stores<F1> 401
--------
INSURANCE 3.8%
9,394 Aetna Life and Casualty Company 543
15,900 AFLAC Corporation 1,162
44,546 Allstate Corporation 1,793
15,500 American General Corporation 1,248
141,203 American International Group, Inc. 13,838
15,000 Aon Corporation 622
11,000 Chubb Corporation 929
10,200 CIGNA Corporation 1,244
10,200 Cincinnati Financial Corporation 375
13,700 The Hartford Financial Services Group, Inc. 1,020
6,225 Jefferson-Pilot Corporation 428
26,704 KeyCorp 659
11,800 Lincoln National Corporation 571
16,260 Marsh & McLennan Companies, Inc. 2,126
6,400 MGIC Investment Corporation 436
See notes to the financial statements.
<PAGE>
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- -------------
INSURANCE 3.8% (CONT.)
4,300 Progressive Corporation $ 422
8,800 Providian Corporation 915
8,100 SAFECO Corporation 196
14,332 St. Paul Companies, Inc. 735
7,900 Torchmark Corporation 263
14,259 UNUM Provident Corporation 403
--------
29,928
INTERNET SERVICES 1.2%
139,600 America Online, Inc.<F1> 7,040
3,700 Sapient Corporation<F1> 132
33,100 Yahoo! Inc.<F1> 1,940
--------
9,112
LIQUOR 0.6%
54,700 Anheuser-Busch Companies, Inc. 2,503
4,200 Brown-Foreman Corporation - Class B 256
2,300 Adolph Coors Company 146
26,500 Seagram Company Ltd. 1,514
--------
4,419
--------
MACHINERY - INDUSTRIAL 0.0%
9,500 Thermo Electron Corporation<F1> 276
--------
MEDICAL INSTRUMENTS 0.4%
18,700 Guidant Corporation 990
12,800 PE Corp-PE Biosystems Group 1,498
2,900 PerkinElmer, Inc. 347
--------
2,835
--------
METALS & MINERALS 0.1%
6,080 Allegheny Teledyne, Inc. 123
1,132 Arch Coal, Inc. 12
5,200 Nucor Corporation 180
18,366 USX Corporation-Marathon Group, Inc. 499
4,793 USX Corporation-US Steel Group, Inc. 76
5,600 Worthington Industries, Inc. 54
--------
944
--------
MISCELLANEOUS 0.7%
49,200 Applied Materials, Inc.<F1> 2,614
9,400 PPL Corporation 387
24,900 3M Corporation 2,406
--------
5,407
--------
MULTI-INDUSTRY 1.4%
46,141 Cendant Corporation<F1> 554
51,900 Corning, Inc. 3,970
6,500 Loews Corporation 591
106,843 Tyco International, Ltd. 6,057
--------
11,172
--------
Number Market Value
of Shares (in thousands)
--------- --------------
NATURAL GAS 0.5%
45,300 Enron Corporation $ 3,717
--------
NETWORKING 0.0%
6,500 Adaptec, Inc.<F1> 103
--------
NON-FERROUS METALS 0.3%
13,250 Alcan Aluminum Ltd. 418
53,220 Alcoa, Inc. 1,527
8,800 Englehard Corporation 184
11,400 Inco, Ltd. 176
9,436 Newmont Mining Corporation 128
5,100 Phelps Dodge Corporation 238
--------
2,671
--------
OFFICE EQUIPMENT 0.0%
21,500 Novell, Inc.<F1> 194
--------
OIL - DOMESTIC 0.5%
5,600 Amerada Hess Corporation 347
14,278 Anadarko Petroleum Corporation 915
4,600 Ashland, Inc. 151
13,592 Burlington Resources, Inc. 489
5,208 Kerr-McGee Corporation 340
14,900 Phillips Petroleum Company 920
5,200 Rowan Companies, Inc.<F1> 131
5,700 Sunoco, Inc. 171
14,200 Unocal Corporation 485
--------
3,949
--------
OIL - INTERNATIONAL 4.5%
7,400 Apache Corporation 409
40,400 Chevron Corporation 3,318
38,400 Conoco, Inc. 1,044
8,200 Devon Energy Corporation 413
212,327 Exxon Mobil Corporation 18,937
9,300 Nabors Industries, Inc.<F1> 473
131,400 Royal Dutch Petroleum Company 7,802
34,500 Texaco, Inc. 2,038
13,163 Transocean Sedco Forex Inc. 698
--------
35,132
--------
OIL & GAS SERVICES 0.5%
1,700 Eastern Enterprises 109
19,513 Exelon Corporation 1,173
3,700 McDermott International, Inc. 36
2,200 Peoples Energy Corporation 76
33,900 Schlumberger, Ltd. 2,581
9,000 Tosco Corporation 258
--------
4,233
--------
See notes to the financial statements.
<PAGE>
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
PAPER & FOREST PRODUCTS 0.7%
3,400 Boise Cascade Corporation $ 98
13,400 Fort James Corporation 441
10,200 Georgia-Pacific Corporation 274
29,305 International Paper Company 1,073
34,012 Kimberly-Clark Corporation 2,245
6,372 Louisiana Pacific Corporation 54
6,200 Mead Corporation 179
1,800 Potlatch Corporation 60
3,250 Temple-Inland, Inc. 145
6,825 Westvaco Corporation 195
14,650 Weyerhaeuser Company 688
6,600 Willamette Industries 240
--------
5,692
--------
PRINTING & PUBLISHING 0.1%
11,500 McGraw-Hill, Inc. 738
3,200 Meredith Corporation 102
7,300 R.R. Donnelley & Sons Company 157
--------
997
--------
PRODUCTION 0.5%
1,400 Briggs & Stratton Corporation 50
22,000 Caterpillar, Inc. 771
5,600 Cooper Industries, Inc. 214
4,100 Crane Co. 107
14,000 Deere & Company 515
13,600 Dover Corporation 577
1,900 FMC Corporation<F1> 144
18,800 Illinois Tool Works, Inc. 1,045
10,300 Ingersoll-Rand Company 389
6,366 Pall Corporation 137
6,525 Parker-Hannifin Corporation 270
4,900 Timken Company 69
--------
4,288
--------
RAILROADS 0.3%
27,943 Burlington Northern Santa Fe 742
12,720 CSX Corporation 322
22,200 Norfolk Southern Corporation 314
15,300 Union Pacific Corporation 717
--------
2,095
RETAIL 4.7%
26,043 Albertson's, Inc. 617
4,400 American Greetings Corporation 80
14,800 Bed Bath & Beyond, Inc.<F1> 382
12,700 Best Buy Co., Inc.<F1> 637
12,000 Circuit City Stores, Inc. 159
6,000 Consolidated Stores Corporation<F1> 71
27,242 Costco Wholesale Corporation 998
6,600 Dillard Department Stores, Inc. - Class A 69
20,726 Dollar General Corporation 321
Number Market Value
of Shares (in thousands)
--------- --------------
RETAIL 4.7% (CONT.)
53,275 Gap, Inc. $ 1,375
141,400 Home Depot, Inc. 6,080
28,500 Kmart Corporation<F1> 169
19,400 Kohl's Department Stores<F1> 1,051
51,200 Kroger Corporation<F1> 1,155
26,622 The Limited, Inc. 672
2,500 Longs Drug Stores Corporation 55
20,514 The May Department Stores Company<F1> 538
8,400 Nordstrom, Inc. 138
23,400 Office Depot, Inc.<F1> 195
15,700 JC Penney Company, Inc. 183
11,400 RadioShack Corporation 680
30,800 Safeway, Inc.<F1> 1,684
23,600 Sears Roebuck and Company 702
28,750 Staples, Inc.<F1> 410
7,000 Supervalu, Inc. 108
54,800 Target Corporation 1,514
9,000 Tiffany & Company 384
19,000 TJX Companies, Inc. 518
17,025 Toys `R' Us, Inc.<F1> 293
62,000 Walgreen Company 2,829
265,800 Wal-Mart Stores, Inc. 12,061
8,800 Winn-Dixie Stores, Inc. 169
--------
36,297
--------
SAVINGS & LOAN 0.4%
13,965 Charter One Financial, Inc. 320
43,100 Federal Home Loan Mortgage Corporation 2,586
10,200 Golden West Financial Corporation 572
--------
3,478
--------
SEMICONDUCTORS 1.7%
9,400 Advanced Micro Devices, Inc.<F1> 213
25,200 Altera Corporation<F1> 1,032
12,200 Conexant Systems, Inc.<F1> 321
56,900 JDS Uniphase Corporation<F1> 4,634
10,400 KLA-Tencor Corporation<F1> 352
18,600 LSI Logic Corporation<F1> 611
20,300 Linear Technology Corporation 1,311
17,100 Maxim Integrated Products, Inc.<F1> 1,134
33,000 Micron Technology Incorporated 1,147
8,600 Novellus Systems, Inc.<F1> 352
10,100 Teradyne, Inc.<F1> 316
20,000 Xilinx, Inc.<F1> 1,449
--------
12,872
--------
SOFTWARE 3.5%
14,400 Adobe Systems Incorporated 1,095
10,800 Citrix Systems, Inc.<F1> 239
22,800 Compuware Corporation<F1> 180
4,800 Mercury Interactive Corporation<F1> 533
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
EQUITY INDEX FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
SOFTWARE 3.5% (CONT.)
317,300 Microsoft Corporation<F1> $ 21,854
16,200 Parametric Technology Company<F1> 199
16,800 Peoplesoft, Inc.<F1> 733
25,000 Siebel Systems, Inc.<F1> 2,623
--------
27,456
--------
STEEL 0.0%
8,200 Bethlehem Steel Corporation<F1> 24
--------
TELECOMMUNICATIONS 7.1%
37,200 ADC Telecommunications, Inc.<F1> 795
19,600 Alltell Corporation 1,263
225,196 AT&T Corporation 5,222
16,814 Avaya, Inc.<F1> 226
116,400 BellSouth Corporation 5,624
10,300 Cabletron Systems<F1> 279
8,300 CenturyTel, Inc. 320
47,420 Global Crossing Ltd.<F1> 1,120
201,779 Lucent Technologies, Inc. 4,704
45,400 Nextel Communications, Inc.<F1> 1,745
99,159 Qwest Communications International, Inc.<F1> 4,822
203,807 SBC Communications, Inc. 11,757
9,000 Scientific-Atlanta, Inc. 616
54,400 Sprint Corporation 1,387
54,500 Sprint PCS Group 2,078
164,002 Verizon Communications 9,481
177,170 WorldCom, Inc. 4,208
--------
55,647
--------
TELECOMMUNICATIONS EQUIPMENT 1.7%
9,400 Comverse Technology, Inc.<F1> 1,050
182,320 Nortel Networks Corporation 8,296
45,500 Qualcomm, Inc.<F1> 2,962
25,100 Tellabs, Inc.<F1> 1,253
--------
13,561
--------
TEXTILES & APPAREL 0.3%
24,200 CVS Corporation 1,281
3,600 Liz Claiborne, Inc. 153
17,400 Nike, Inc. - Class B 695
1,100 Springs Industries, Inc. 26
7,454 VF Corporation 204
--------
2,359
--------
TIRE & RUBBER 0.1%
4,800 Cooper Tire & Rubber Company 53
6,800 Goodrich (B.F.) Company 278
9,262 Goodyear Tire & Rubber Company 171
--------
502
--------
Number Market Value
of Shares (in thousands)
--------- --------------
TRANSPORTATION 0.2%
2,500 Cummins Engine Company, Inc. $ 85
17,700 FedEx Corporation<F1> 829
18,800 Harley Davidson, Inc. 906
--------
1,820
--------
TRAVEL & RECREATION 0.8%
7,150 Harrahs Entertainment, Inc.<F1> 205
23,000 Hilton Hotels Corporation 218
14,900 Marriott International, Inc. - Class A 603
8,032 Sabre Holding Corporation<F1> 269
127,000 The Walt Disney Company 4,548
--------
5,843
TRUCKING 0.0%
3,550 Ryder System, Inc. 70
--------
WASTE MANAGEMENT 0.1%
11,800 Allied Waste Industries, Inc.<F1> 109
37,740 Waste Management, Inc. 755
--------
864
Total Common Stocks (Cost $389,609) 761,569
--------
Principal
Amount
(in thousands)
--------------
SHORT-TERM INVESTMENTS 2.6%
U.S. Treasuries 0.6%
$ 4,600 U.S. Treasury Bill, 6.17%, 11/24/00 4,582
--------
Total U.S. Treasuries (Cost $4,582) 4,582
--------
Number
of Shares
(in thousands)
--------------
INVESTMENT COMPANIES 2.0%
6 Financial Square Prime Obligation Fund 6
15,923 Short-Term Investments Co.
Liquid Assets Portfolio1 5,923
--------
Total Investment Companies (Cost $15,929) 15,929
--------
Total Short-Term Investments (Cost $20,511) 20,511
--------
Total Investments (Cost $410,120) 100.0% 782,080
--------
Other Assets, less Liabilities 0.0% 171
--------
TOTAL NET ASSETS 100.0% $782,251
========
<F1> Non-income producing
See notes to the financial statements.
LARGE CAP CORE EQUITY FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
COMMON STOCKS 88.4%
AEROSPACE & AIRCRAFT 0.8%
41,100 General Dynamics Corporation $ 2,941
--------
AIR TRANSPORTATION 0.8%
105,200 Southwest Airlines Company 2,998
--------
BANKING 3.8%
57,800 Citigroup, Inc. 3,042
84,550 Fifth Third Bancorp 4,344
60,200 State Street Corporation 7,509
--------
14,895
BEVERAGES 0.7%
58,300 PepsiCo, Inc. 2,824
--------
BIO-TECHNOLOGY 0.9%
29,000 Amgen, Inc.<F1> 1,680
73,600 Serono SA - ADR<F1> 1,665
--------
3,345
--------
BUSINESS SERVICES 2.7%
27,000 Computer Sciences Corporation<F1> 1,701
76,900 First Data Corporation 3,855
74,600 Sabre Group Holdings, Inc.<F1> 2,494
50,000 SunGard Data Systems, Inc.<F1> 2,556
--------
10,606
--------
COMMUNICATIONS & MEDIA 5.3%
131,100 Charter Communications, Inc.<F1> 2,556
23,600 Clear Channel Communications, Inc.<F1> 1,417
93,200 Infinity Broadcasting 3,099
115,200 Interpublic Group of Companies, Inc. 4,946
59,900 Omnicom Group, Inc. 5,526
92,200 The Walt Disney Company 3,302
--------
20,846
--------
COMPUTER HARDWARE 3.7%
83,900 EMC Corporation<F1> 7,472
64,200 Sun Microsystems, Inc. 7,118
--------
14,590
--------
DRUGS 9.7%
37,000 Baxter International, Inc. 3,041
64,600 Bristol-Myers Squibb Company 3,937
54,200 Eli Lilly and Company 4,844
26,000 Genentech, Inc.<F1> 2,145
48,800 Johnson & Johnson 4,496
79,900 Merck & Co., Inc. 7,186
176,975 Pfizer, Inc. 7,643
50,100 Pharmacia Corporation 2,756
33,300 Watson Pharmaceuticals, Inc.<F1> 2,083
--------
38,131
--------
Number Market Value
of Shares (in thousands)
--------- --------------
ELECTRIC 0.3%
17,800 Exelon Corporation $ 1,068
--------
ELECTRONIC COMPONENTS & SEMICONDUCTORS 8.9%
52,500 Analog Devices,Inc.<F1> 3,413
62,600 Applied Materials, Inc.<F1> 3,326
33,800 Applied Micro Circuits Corporation<F1> 2,584
49,300 ASM Lithography Holding N.V.<F1> 1,371
14,800 Broadcom Corporation<F1> 3,291
70,600 Flextronics International Ltd.<F1> 2,683
113,900 Intel Corporation 5,126
30,000 Linear Technology Corporation 1,937
79,637 Molex, Inc. - Class A 3,131
18,900 PMC - Sierra, Inc.<F1> 3,204
50,100 Texas Instruments Incorporated 2,458
30,700 Xilinx, Inc.<F1> 2,224
--------
34,748
--------
FINANCIAL SERVICES 4.0%
49,800 Federal Home Loan Mortgage Corporation 2,988
26,100 Federal National Mortgage Association 2,010
190,125 MBNA Corporation 7,142
43,800 Morgan Stanley Dean Witter & Company 3,518
--------
15,658
--------
HEALTH CARE SERVICES & SUPPLIES 0.8%
32,050 Cardinal Health, Inc. 3,037
--------
INSURANCE 5.4%
66,250 AFLAC, Inc. 4,840
79,723 American International Group 7,813
58,100 Aon Corporation 2,408
31,300 Hartford Financial Services Group, Inc. 2,330
58,300 MGIC Investment Corporation 3,972
--------
21,363
--------
LIQUOR 0.6%
55,100 Anheuser-Busch Companies,Inc. 2,521
--------
MEDICAL INSTRUMENTS 0.6%
40,200 Medtronic, Inc. 2,183
--------
MULTI-INDUSTRY 1.6%
111,900 Tyco International, Ltd. 6,343
--------
NETWORKING PRODUCTS 4.7%
7,800 Brocade Communications Systems, Inc.<F1> 1,774
154,500 Cisco Systems, Inc.<F1> 8,324
20,100 Extreme Networks, Inc.<F1> 1,667
19,300 Juniper Networks, Inc.<F1> 3,764
25,300 Network Appliance, Inc.<F1> 3,011
--------
18,540
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
LARGE CAP CORE EQUITY FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
Oil & Gas - Domestic 3.5%
58,100 Burlington Resources, Inc. $ 2,092
114,500 EOG Resources, Inc. 4,508
58,700 Phillips Petroleum Company 3,625
56,300 Texaco, Inc. 3,325
--------
13,550
OIL & GAS SERVICES 4.6%
79,300 Apache Corporation 4,386
66,275 Enron Corporation 5,439
68,900 Halliburton Company 2,554
73,500 Schlumberger Limited 5,595
--------
17,974
RETAIL 7.4%
115,900 Dollar General Corporation 1,796
51,400 Home Depot, Inc. 2,210
58,400 Kohl's Corporation<F1> 3,164
109,500 Lowe's Companies, Inc. 5,003
138,500 Safeway, Inc.<F1> 7,574
97,500 Walgreen Company 4,448
105,800 Wal-Mart Stores, Inc. 4,801
--------
28,996
SOFTWARE 5.6%
28,600 Adobe Systems, Inc. 2,175
13,100 Ariba, Inc.<F1> 1,655
14,100 Check Point Software Technologies, Ltd.<F1> 2,233
11,400 i2 Technologies, Inc.<F1> 1,938
104,200 Microsoft Corporation<F1> 7,177
48,400 Oracle Corporation<F1> 1,597
26,500 Siebel Systems, Inc.<F1> 2,781
17,600 VERITAS Software Corporation<F1> 2,482
--------
22,038
TELECOMMUNICATIONS 2.8%
29,100 ALLTEL Corporation 1,875
80,100 Global Crossing Ltd.<F1> 1,892
97,672 MCI WorldCom, Inc.<F1> 2,320
65,700 Nextel Communications, Inc.<F1> 2,525
17,600 VoiceStream Wireless Corporation<F1> 2,314
--------
10,926
Number Market Value
of Shares (in thousands)
--------- --------------
TELECOMMUNICATIONS EQUIPMENT 7.4%
38,800 CIENA Corporation<F1> $ 4,079
21,500 Comverse Technology, Inc.<F1> 2,403
47,700 Corning Incorporated 3,649
37,700 JDS Uniphase Corporation<F1> 3,070
165,100 Nortel Networks Corporation 7,512
56,900 Qualcomm, Inc. 3,704
41,900 Scientific-Atlanta, Inc. 2,867
6,700 SDL, Inc.<F1> 1,737
--------
29,021
--------
TRANSPORTATION 1.0%
84,700 Harley-Davidson,Inc. 4,081
--------
TRAVEL & RECREATION 0.8%
131,400 Carnival Corporation - Class A 3,260
--------
Total Common Stocks (Cost $227,379) 346,483
--------
Number of
Shares
(in thousands)
--------------
SHORT-TERM INVESTMENTS 10.6%
INVESTMENT COMPANIES 8.8%
15,606 Financial Square Prime Obligation Fund 15,606
18,901 Short-Term Investments Co.
Liquid Assets Portfolio 18,901
--------
Total Investment Companies
(Cost $34,507) 34,507
--------
Principal
Amount
(in thousands)
--------------
Variable Rate Demand Notes 1.8%
$7,000 Sara Lee Corporation 7,000
--------
Total Variable Rate Demand Notes
(Cost $7,000) 7,000
--------
Total Short-Term Investments
(Cost $41,507) 41,507
--------
Total Investments (Cost $268,886) 99.0% 387,990
--------
Other Assets, less Liabilities 1.0% 3,891
--------
TOTAL NET ASSETS 100.0% $391,881
========
<F1>Non-income producing
ADR - American Depository Receipt
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
LARGE CAP GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
COMMON STOCKS 95.1%
AUTOMOBILE 0.7%
96,149 Ford Motor Company $ 2,512
--------
BANKING 2.7%
130,000 Citigroup Inc. 6,841
55,000 Wells Fargo & Company 2,547
--------
9,388
--------
BROADCASTING 0.9%
52,000 Clear Channel Communications, Inc.<F1> 3,123
--------
BROKERAGE SERVICES 0.9%
44,000 Merrill Lynch & Company, Inc. 3,080
--------
COMPUTER PERIPHERALS 4.4%
170,000 EMC Corporation<F1> 15,141
--------
COMPUTER PRODUCTS & SERVICES 14.5%
97,500 America Online, Inc.<F1> 4,917
287,400 Cisco Systems, Inc.<F1> 15,484
15,000 Computer Sciences Corporation<F1> 945
100,000 Dell Computer Corporation<F1> 2,950
40,000 Hewlett-Packard Company 1,857
45,000 Juniper Networks, Inc.<F1> 8,775
130,000 Sun Microsystems, Inc.<F1> 14,414
--------
49,342
--------
COMPUTERS & SOFTWARE 11.2%
20,000 Adobe Systems Inc. 1,521
12,000 BEA Systems, Inc.<F1> 861
17,000 BroadVision, Inc.<F1> 506
18,000 i2 Technologies, Inc.<F1> 3,060
166,000 Microsoft Corporation<F1> 11,433
218,000 Oracle Corporation<F1> 7,194
82,000 Siebel Systems, Inc.<F1> 8,605
34,000 VERITAS Software Corporation<F1> 4,795
--------
37,975
COSMETICS & TOILETRIES 0.5%
25,000 Kimberly-Clark Corporation 1,650
--------
DRUGS 9.7%
30,000 American Home Products Corporation 1,905
100,000 Bristol-Myers Squibb Company 6,094
30,000 Genentech, Inc.<F1> 2,475
112,000 Merck & Co., Inc. 10,073
201,750 Pfizer Inc. 8,713
60,000 Watson Pharmaceuticals, Inc.<F1> 3,754
--------
33,014
--------
Number Market Value
of Shares (in thousands)
--------- --------------
ELECTRICAL EQUIPMENT 2.6%
160,500 General Electric Company $ 8,797
--------
ELECTRONICS - SEMICONDUCTORS 9.2%
18,000 Analog Devices,Inc.<F1> 1,170
35,000 Applied Materials, Inc.<F1> 1,859
10,000 Broadcom Corporation<F1> 2,224
150,560 Intel Corporation 6,775
45,000 JDS Uniphase Corporation<F1> 3,662
20,000 Micron Technology, Inc. 695
25,000 PMC - Sierra, Inc.<F1> 4,238
8,000 SDL, Inc.<F1> 2,074
85,000 Texas Instruments Inc. 4,170
60,000 Vitesse Semiconductor Corporation<F1> 4,196
7,000 Xilinx, Inc.<F1> 507
--------
31,570
--------
FOOD & BEVERAGE 1.7%
25,000 Anheuser-Busch Companies, Inc. 1,144
40,000 H. J. Heinz Company 1,678
60,000 PepsiCo, Inc. 2,906
--------
5,728
--------
HEALTH TECHNOLOGY 2.1%
38,900 Baxter International Inc.<F1> 3,197
50,000 Guidant Corporation 2,647
54,500 Serono SA, ADR<F1> 1,233
--------
7,077
--------
HOUSEHOLD PRODUCTS 2.5%
90,000 Clorox Company 4,016
63,658 Procter & Gamble Company 4,548
--------
8,564
--------
INSURANCE 3.8%
133,519 American International Group, Inc. 13,085
--------
MANUFACTURING 2.0%
94,164 Illinois Tool Works Inc. 5,232
30,000 Tyco International Ltd. 1,701
--------
6,933
--------
MEDICAL PRODUCTS & SERVICES 4.1%
62,250 Cardinal Health, Inc. 5,898
20,000 Johnson & Johnson 1,842
15,000 MedImmune, Inc.<F1> 981
99,530 Medtronic, Inc. 5,406
--------
14,127
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
LARGE CAP GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
METALS & MINING 1.0%
120,000 Alcoa Inc. $ 3,443
--------
MULTIMEDIA 0.3%
15,000 Time Warner Inc. 1,139
--------
NATURAL GAS 1.6%
72,300 Coastal Corporation 5,454
--------
OFFICE & BUSINESS EQUIPMENT 0.8%
27,000 International Business Machines Corporation 2,660
--------
OIL 2.1%
2,500 Ashland Inc. 82
25,566 BP Amoco PLC, ADR 1,302
44,238 Exxon Mobil Corporation 3,945
30,000 Halliburton Company 1,112
25,000 Valero Energy Corporation 827
--------
7,268
--------
PRODUCER MANUFACTURING 0.5%
30,000 Textron, Inc. 1,513
--------
RETAIL TRADE 5.3%
5,000 Federated Department Stores, Inc.,
warrants, 12/19/01<F1> 40
57,000 The Home Depot, Inc. 2,451
100,200 Kohl's Corporation<F1> 5,429
76,244 Safeway, Inc.<F1> 4,170
128,000 Wal-Mart Stores, Inc. 5,808
--------
17,898
--------
SCIENTIFIC INSTRUMENTS 0.6%
40,000 Millipore Corporation 2,100
--------
TELECOMMUNICATIONS & EQUIPMENT 9.4%
100,000 Alcatel SA ADR 6,236
56,000 BellSouth Corporation 2,706
5,000 CIENA Corporation<F1> 526
30,000 Comverse Technology, Inc.<F1> 3,353
44,000 Corning Inc. 3,366
26,000 Nokia Corporation, ADR 1,111
77,000 Nortel Networks Corporation 3,503
292,000 Telefonaktiebolaget LM Ericsson,
Class B, ADR 4,052
42,072 Verizon Communications 2,432
46,000 Vodafone Group PLC, ADR 1,958
122,500 WorldCom, Inc.<F1> 2,909
--------
32,152
--------
Total Common Stocks (Cost $189,277) 324,733
--------
Number of Market Value
Contracts (in thousands)
--------- --------------
Put Options Purchased 0.0%
American International Group, Inc.,
500 expires 11/18/00, exercise price $85 $ 11
EMC Corporation, expires 11/18/00,
500 exercise price $80 94
Intel Corporation, expires 11/18/00,
250 exercise price $35 6
Sun Microsystems, Inc., expires 11/18/00,
200 exercise price $100 56
--------
Total Put Options Purchased (Cost $525) 167
--------
Number
of Shares
(in thousands)
--------------
SHORT-TERM INVESTMENTS 5.0%
Investment Companies 3.1%
1,752 Lindner Government Money Market Fund 1,752
2,500 RNC Money Market Fund 2,500
6,220 Short-Term Investments Co. Gov.
Agency Portfolio 6,220
--------
Total Investment Companies (Cost $10,472) 10,472
--------
Principal
Amount
(in thousands)
--------------
Variable Rate Demand Notes 1.9%
$6,529 Sara Lee Corporation 6,529
--------
Total Variable Rate Demand Notes
(Cost $6,529) 6,529
--------
Total Short-Term Investments
(Cost $17,001) 17,001
--------
Total Investments (Cost $206,803) 100.1% 341,901
--------
Liabilities, less Other Assets (0.1)% (459)
--------
TOTAL NET ASSETS 100.0% $341,442
========
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
LARGE CAP GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number of Market Value
Contracts (in thousands)
--------- --------------
Schedule of Call Options Written
Cisco Systems, Inc., expires 1/20/01,
300 exercise price $75 $ 26
Kohl's Corporation, expires 11/18/00,
250 exercise price $65 6
Nokia Corporation, ADR, expires 1/20/01,
150 exercise price $55 23
--------
Total Call Options Written
(Premiums received $159) 55
--------
Schedule of Put Options Written
15 SDL, Inc., expires 12/16/00,
exercise price $320 117
230 Safeway, Inc., expires 12/16/00,
exercise price $40 3
--------
Total Put Options Written
(Premiums received $78) 120
--------
Total Options Written
(Premiums received $237) $175
========
<F1>Non-income producing
ADR - American Depository Receipt
PLC - Public Limited Company
(LOGO) FIRSTAR FUNDS
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERNATIONAL VALUE FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
<TABLE>
<CAPTION>
Number Market
of Shares Industry Value
--------- -------- ------
<S> <C> <C>
COMMON AND PREFERRED STOCKS 92.1%
AUSTRALIA 1.3%
100,000 Westpac Bank Banks $ 682,697
----------
AUSTRIA 1.8%
9,787 Bank Austria AG<F1> Banks 528,837
9,500 VA Technologie AG Engineering 384,091
----------
912,928
----------
BERMUDA 1.9%
13,000 XL Capital Ltd. - Class A Insurance 999,375
----------
BRAZIL 1.3%
15,000 Companhia Vale do Rio Doce ADR Diversified Minerals 350,625
20,000 Embratel Participacoes SA Telecommunications 323,750
----------
674,375
----------
CHINA 0.7%
3,500,000 Sinopec Shanghai Petrochemical Co., LTD Petrochemicals 354,528
----------
CROATIA 1.0%
50,000 Pliva d.d. 144A GDR<F2> Pharmaceuticals 514,570
----------
DENMARK 0.9%
64,345 Nordic Baltic Holding AB<F1> Financial Services 483,626
----------
FINLAND 1.4%
1 Instrumentarium Corporation Medical Products 23
18,000 Tietoenator Oyj Computer Software 345,567
50,000 Valmet - Rauma Oyj Machinery 381,421
----------
727,011
----------
FRANCE 4.5%
30,000 Alstom Machinery 658,586
5,200 Compagnie de Saint Gobain Building & Construction 687,133
14,000 Pechiney SA Metal Processing 522,122
45,000 Usinor SA Steel 490,126
----------
2,357,967
----------
GERMANY 8.2%
10,000 Adidas-Salomon AG Footwear 459,824
16,300 BASF AG Chemicals 641,058
12,500 DaimlerChrysler AG Automobiles 575,839
15,600 E.On AG Manufacturing 792,033
11,000 Jenoptik AG Manufacturing 302,551
15,000 Linde AG Manufacturing 654,772
19,000 Merck KGAA Pharmaceuticals 723,894
700 SAP AG Software 141,507
----------
4,291,478
----------
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERNATIONAL VALUE FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
<TABLE>
<CAPTION>
Number Market
of Shares Industry Value
--------- -------- ------
GREAT BRITAIN 10.4%
<S> <C> <C>
100,845 British Airways PLC Airlines $ 451,064
44,650 British Telecommunications PLC Telecommunications 523,921
75,000 The Great Universal Stores PLC Retail 518,443
58,000 Lloyds TSB Group PLC Banks 591,287
65,000 Nycomed Amersham PLC Medical Products 582,414
270,380 Rolls-Royce PLC Aerospace & Aircraft 702,847
21,900 Royal Bank of Scotland Group PLC - V Banks 25,920
22,057 Royal Bank of Scotland Group PLC Banks 495,530
50,381 Standard Chartered PLC Banks 727,254
120,000 Unilever PLC Consumer Goods 812,518
----------
5,431,198
GREECE 0.7%
20,000 Hellenic Telecommunications Organization SA Telecommunications 348,596
----------
HUNGARY 0.7%
14,000 Matav RT-Sponsored ADR Telecommunications 329,000
----------
HONG KONG 3.2%
54,390 HSBC Holdings PLC Banks 756,666
44,500 Hutchison Whampoa Limited Diversified Operations 552,748
142,000 Peregrine Investments Holdings Limited Financial Services 0
250,000 SmarTone Telecommunications Limited Telecommunications 370,235
----------
1,679,649
----------
IRELAND 2.1%
70,000 Bank of Ireland Banks 538,735
200,000 Eircom PLC Telecommunications 556,027
----------
1,094,762
----------
ITALY 3.6%
160,000 Banca Nazionale del Lavoro Banks 518,054
135,000 ENI SPA Oil & Gas Exploration 730,039
450,000 Parmalat Finanziaria SPA Food Products 648,415
----------
1,896,508
----------
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERNATIONAL VALUE FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
<TABLE>
<CAPTION>
Number Market
of Shares Industry Value
--------- -------- ------
JAPAN 19.0%
<S> <C> <C> <C>
130,000 Asahi Chemical Industry, Ltd. Chemicals $ 804,836
30,000 Daiichi Pharmaceutical Co., Ltd. Drugs 851,727
75,000 Daiwa Securities Company Limited Financial Services 830,434
23,000 Fujitsu Limited Computers 409,488
83,000 Hitachi Ltd. Electrical Products 889,368
16,000 Honda Motor Co., LTD Automobiles 552,432
4,500 Mabuchi Motor Co., LTD Manufacturing 480,539
40,000 Marui Co., Ltd. Retail 589,798
104 Mizuho Holdings, Inc. Banks 799,122
22,000 NEC Corporation Electrical Products 419,086
30,000 Nihon Unisys, Ltd. Software 406,631
102,000 Nippon Fire & Marine Insurance Insurance 379,266
145,000 Nishimatsu Construction Co., Ltd. Building & Construction 458,147
35,000 Sankyo Company, Ltd. Drugs 770,905
100,000 The Sumitomo Trust & Banking Co., Ltd. Banks 769,302
5,000 TDK Corporation Computers 503,710
----------
9,914,791
----------
MALAYSIA 0.8%
490,000 Technology Resources Industries Bhd Telecommunications 397,158
----------
MEXICO 2.0%
9,500 Telefonos de Mexico SA Telecommunications 512,406
10,000 Grupo Televisa SA Telecommunications 541,250
----------
1,053,656
----------
NETHERLANDS 4.8%
30,434 ABN AMRO Holding NV Banks 704,228
10,104 ING Group NV Insurance 693,012
25,118 Koninklijke KPN NV Telecommunications 508,194
27,000 Wolters Kluwer NV Publishing 606,916
----------
2,512,350
----------
NORWAY 0.8%
30,000 Petroleum Geo Services ASA Oil & Gas Exploration 412,881
----------
PORTUGAL 0.9%
50,000 Portugal Telecom SA Telecommunications 444,991
----------
RUSSIA 1.3%
7,000 Lukoil Holding ADR Oil & Gas - International 373,800
33,000 Rostelecom ADR Telecommunications 288,750
----------
662,550
----------
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERNATIONAL VALUE FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
<TABLE>
<CAPTION>
Number Market
of Shares Industry Value
--------- -------- ------
SINGAPORE 1.0%
<S> <C> <C> <C>
112,000 City Developments Limited Real Estate $ 516,776
----------
SLOVAK REPUBLIC 0.2%
50,000 Slovakofarma 144A GDR<F2> Health & Beauty Aids 100,000
----------
SOUTH AFRICA 0.9%
225,000 Old Mutual PLC Insurance 494,209
----------
SOUTH KOREA 0.8%
12,000 Korea Telecom Corporation Telecommunications 442,500
----------
SPAIN 3.3%
55,000 Iberdrola SA Electric 671,766
35,000 Repsol SA Oil & Gas - International 555,348
25,000 Telefonica SA Telecommunications 476,140
----------
1,703,254
----------
SWEDEN 3.7%
7,956 ABB Ltd. Engineering 705,083
30,000 Atlas Copco AB - Class B Mining 618,263
50,000 Electrolux AB Appliances 628,743
----------
1,952,089
----------
SWITZERLAND 7.6%
525 Novartis AG Drugs 796,215
70 Roche Holding AG Drugs 639,229
800 Swiss Life Insurance & Pension Insurance 621,990
2,000 Swisscom AG Telecommunications 507,757
4,500 UBS AG Building Products 623,158
1,638 Zurich Financial Services AG Insurance 792,532
----------
3,980,881
----------
THAILAND 1.3%
35,000 Advanced Info Service Public Co., LTD Telecommunications 288,053
710,000 Thai Farmers Bank Public Company Limited Banks 367,227
----------
655,280
----------
Total Common and Preferred Stocks (Cost $50,191,513) 48,021,634
----------
See notes to the financial statements.
</TABLE>
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERNATIONAL VALUE FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
<TABLE>
<CAPTION>
Number Market
of Shares Value
--------- ------
SHORT-TERM INVESTMENTS 3.3%
INVESTMENT COMPANIES 0.3%
<S> <C> <C>
31,000 ROC Taiwan Fund $ 182,125
----------
Total Investment Companies (Cost $250,577) 182,125
----------
Principal
Amount
---------
Variable Rate Demand Notes 3.0%
$1,553,778 Chase U.S. 1,553,778
----------
Total Variable Rate Demand Notes (Cost $1,553,778) 1,553,778
----------
Total Short-Term Investments (Cost $1,804,355) 1,735,903
----------
Total Investments (Cost $51,995,868) 95.4% 49,757,537
----------
Other Assets, less Liabilities 4.6% 2,405,859
----------
TOTAL NET ASSETS 100% $52,163,396
===========
</TABLE>
<F1> Non-income producing
<F2> Unregistered security
AB - Aktiebolag (Swedish Stock Co.)
ADR - American Depository Receipt
AG - Aktiengesellschaft (German Stock Co.)
GDR - Global Depository Receipt
NV - Naamloze Vennootschaap (Dutch Corporation)
PLC - Public Limited Company
SA - Societe Anonyme (French Corporation)
SpA - Societa per Azioni (Italian Corporation)
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERNATIONAL GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
<TABLE>
<CAPTION>
Number Market
of Shares Industry Value
--------- -------- ------
Common Stocks 98.0%
AUSTRALIA 5.4%
<S> <C> <C> <C>
300,000 Aristocrat Leisure Limited Casino Services $ 937,451
510,800 BRL Hardy Limited Beverages 2,003,812
249,450 Computershare Limited Computer Services 1,079,394
360,775 ERG Limited Electronic Components & Instruments 1,766,764
132,500 Macquarie Bank Limited Banks 1,919,145
----------
7,706,566
----------
BRAZIL 0.5%
27,400 Petroleo Brasileiro S.A., ADR Oil & Gas 726,634
----------
DENMARK 1.4%
46,140 Carlsberg A/S Brewery 1,985,261
----------
FINLAND 1.3%
45,900 Nokia OYJ<F1> Telecommunications 1,886,499
----------
FRANCE 13.2%
54,620 Accor SA<F1> Hotels & Lodging 2,208,318
33,900 Alcatel Telecommunications 2,065,952
35,500 Aventis SA Pharmaceuticals 2,557,637
15,800 Axa Insurance 2,081,825
22,200 Banque Nationale De Paris Banks 1,911,782
11,100 Cap Gemini SA Computer Software 1,768,774
8,740 Castorama Dubois Retail 1,774,965
15,715 Total Fina SA, Class B Oil Companies - Integrated 2,245,761
60,800 Vivendi Environnement<F1> Water Treatment Systems 2,267,503
----------
18,882,517
----------
GERMANY 4.3%
6,200 Allianz AG Insurance 2,104,679
25,450 Fresenius Medical Care AG Health Care 2,027,717
15,460 Marschollek Lautenshlaeger und Partner AG Financial Services 2,083,523
----------
6,215,919
HONG KONG 2.7%
70,000 Cheung Kong (Holdings) Limited Real Estate 774,128
107,000 China Mobile (Hong Kong) Limited<F1> Telecommunications 678,027
780,000 China Resources Enterprise Limited Diversified Operations 875,101
190,000 China Unicom Limited<F1> Telecommunications 381,282
91,000 Hang Seng Bank Limited Banks 1,070,540
----------
3,779,078
IRELAND 1.5%
147,000 Allied Irish Banks PLC Banks 1,495,168
66,100 Irish Life & Permanent PLC Financial Services 661,672
----------
2,156,840
See notes to the financial statements.
</TABLE>
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERNATIONAL GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
<TABLE>
<CAPTION>
Number Market
of Shares Industry Value
--------- -------- ------
ITALY 4.5%
<S> <C> <C> <C>
181,050 Autogrill SpA Restaurants $ 1,996,491
145,000 Banca Fideuram SpA Financial Services 2,226,988
417,300 ENI SpA Oil Companies - Integrated 2,256,632
----------
6,480,111
JAPAN 22.4%
8,200 Avex, Inc. Entertainment - Television 826,084
15,500 C TWO-NETWORK Company, Limited Food 957,814
117,000 Daiwa Securities Co. Limited Financial Services 1,295,477
149 DDI CORPORATION Telephone 698,673
15,600 ENPLAS CORPORATION Electrical & Electronic 658,467
7,800 Fast Retailing Company Limited Retail 1,918,035
290,000 FUJI ELECTRIC COMPANY, LIMITED<F1> Machinery - Electrical 946,378
30,000 Fuji Photo Film Company, Limited Photo Equipment 1,112,740
16,000 Hogy Medical Company Health Care 1,025,736
189,000 Japan Radio Telecommunications 1,490,330
173,000 Japan Storage Battery Company, Limited Batteries 602,070
72,000 KOA Electrical & Electronic 1,615,534
11,500 KOSE Corporation Cosmetics & Toiletries 399,090
3,700 Kyocera Corporation Electrical & Electronic 481,180
70,000 Mitsui Mining & Smelting Co., Limited Metals & Mining 589,798
71,000 NGK INSULATORS, LIMITED Electrical & Electronic 939,602
64,000 NGK Spark Plug Automotive Parts & Equipment 984,120
45,000 Nihon Unisys Limited Computer Software 609,947
173,000 NIPPON CHEMI-CON CORPORATION Capacitors 887,262
133 Nippon Telegraph & Telephone Corporation Telecommunications 1,209,535
700 Nippon Television Network Corporation Television 394,267
42,000 Nomura Securities Co. Limited Financial Services 890,467
37 NTT Mobile Communications Network, Inc. Telecommunications 911,531
8,200 Orix Corporation Financial Services 859,878
4,900 Rohm Co. Limited Electrical & Electronic 1,234,537
15,000 Ryohin Keikaku Co. Limited Retail 761,702
185,000 Sakura Bank Limited Banks 1,346,965
47,000 SANTEN PHARMACEUTICAL COMPANY, LIMITED Drugs 927,604
11,800 Sony Corporation Electrical & Electronic 942,358
5,900 TDK Corporation Electrical & Electronic 594,377
24,000 TOKYO BROADCASTING SYSTEM, INC. Television 938,548
11,000 Toyota Gosei Automotive Parts & Equipment 439,235
7,500 Toys "R" Us-Japan, Limited Retail 1,023,446
10,600 World Co., Limited Textile/Apparel 394,139
13,000 Yamada Denki Retail 1,142,963
----------
32,049,889
----------
MEXICO 0.5%
12,600 Telefonos de Mexico SA de CV (Telmex), ADR Telephone 679,613
----------
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERNATIONAL GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
<TABLE>
<CAPTION>
Number Market
of Shares Industry Value
--------- -------- ------
Netherlands 8.4%
<S> <C> <C> <C>
32,200 Akzo Nobel Chemicals & Pharmaceuticals $ 1,464,257
22,000 Gucci Group NV, Sponsored ADR Textile/Apparel 2,150,500
37,420 Jomed NV<F1> Medical Products 2,286,795
51,750 Koninklijke (Royal) Philips Electronics NV Electronic Components 2,031,313
135,700 Vedior NV Human Resources 2,018,592
42,840 VNU NV Publishing 2,015,274
----------
11,966,731
NEW ZEALAND 1.3%
579,700 Fletcher Challenge Energy Oil & Gas 1,898,204
----------
SINGAPORE 2.3%
78,840 Datacraft Asia Limited Telecommunications 540,054
470,000 DBS Land Limited Real Estate 714,839
700,000 Singapore Telecommunications Limited Telecommunications 1,160,353
117,000 United Overseas Bank Limited Banks 866,420
----------
3,281,666
----------
SPAIN 5.9%
205,500 Banco Santander Central Hispano SA Financial Services 1,989,159
199,500 Indra Sistemas SA Computer Services 2,005,484
188,200 NH Hoteles SA Hotels & Lodging 2,121,597
122,580 Telefonica SA Telecommunications 2,334,610
----------
8,450,850
----------
SWEDEN 2.8%
105,300 Ericsson LM, Sponsored ADR Telecommunications 1,461,038
335,000 Nordic Baltic Holding AB<F1> Banks 2,507,485
----------
3,968,523
----------
SWITZERLAND 2.7%
18,930 ABB Limited<F1> Engineering & Construction 1,681,813
1,050 Nestle SA Food 2,175,213
----------
3,857,026
----------
UNITED KINGDOM 16.9%
243,300 BP Amoco PLC Oil & Gas 2,065,188
80,100 Celltech Group PLC<F1> Biotechnology/Pharmaceuticals 1,593,625
142,100 CGNU PLC Insurance 1,902,646
213,000 Diageo PLC Beverages/Food 2,012,148
178,800 Electrocomponents PLC Electrical & Electronic 1,786,442
160,500 Misys PLC Computer Services 1,673,526
153,900 Reckitt Benckiser PLC Consumer Products 2,024,882
136,600 Reuters Group PLC Media 2,662,172
264,700 Scottish & Southern Energy PLC Utilities - Gas & Electric 2,202,630
158,500 Smithkline Beecham PLC<F1> Pharmaceuticals 2,048,577
518,500 Tesco PLC Food 1,978,447
520,995 Vodafone Group PLC Telecommunications 2,169,551
----------
24,119,834
----------
Total Common Stocks (Cost $135,002,438) 140,091,761
-----------
See notes to the financial statements.
</TABLE>
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERNATIONAL GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
<TABLE>
<CAPTION>
Number Market
of Shares Industry Value
--------- --------
SHORT-TERM INVESTMENT 2.3%
Investment Company 2.3%
<C> <S> <C>
3,296,023 Deutsche Liquid Assets Fund Investment Companies $ 3,296,023
------------
Total Short-Term Investment (Cost $3,296,023) 3,296,023
------------
Total Investments (Cost $138,298,461) 100.3% 143,387,784
------------
Liabilities, less Other Assets (0.3)% (362,576)
------------
TOTAL NET ASSETS 100% $143,025,208
============
<F1> Non-income producing
AB - Aktiebolag (Swedish Stock Co.)
ADR - American Depository Receipt
AG - Aktiengesellschaft (German Stock Co.)
NV - Naamloze Vennootschaap (Dutch Corporation)
PLC - Public Limited Company
SA - Societe Anonyme (French Corporation)
SpA - Societa per Azioni (Italian Corporation)
See notes to the financial statements.
</TABLE>
<PAGE>
(LOGO) FIRSTAR FUNDS
MIDCAP INDEX FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
COMMON STOCKS 94.7%
Aerospace & Aircraft 0.3%
5,700 Litton Industries, Inc.<F1> $ 296
1,300 Sequa Corporation 48
--------
344
--------
AUTOS & TRUCKS 0.5%
7,700 ArvinMeritor, Inc. 129
3,300 Borg-Warner Automotive, Inc. 125
8,800 Federal-Mogul Corporation 29
8,300 Lear Corporation<F1> 226
3,200 Superior Industries International,Inc. 109
--------
618
--------
BANKING 5.1%
8,560 Associated Banc-Corp 206
17,000 Banknorth Group, Inc. 308
5,900 City National Corporation 203
15,000 Compass Bancshares, Inc. 273
11,000 FirstMerit Corporation 251
16,200 First Tennessee National Corporation 373
5,900 First Virginia Banks, Inc. 244
5,600 Greater Bay Bancorp 182
19,900 Hibernia Corporation 238
15,100 Marshall & Ilsley Corporation 684
8,550 Mercantile Bankshares Corporation 322
29,480 National Commerce Bancorporation 626
21,700 North Fork Bancorporation, Inc. 438
9,900 Pacific Century Financial Corporation 126
6,100 Provident Financial Group 185
10,100 TCF Financial Corporation 408
8,662 Wells Fargo & Company 401
4,500 Westamerica Bancorporation 162
4,000 Wilmington Trust Corporation 211
12,400 Zions Bancorporation 712
--------
6,553
--------
BIOTECHNOLOGY 2.0%
23,600 Chiron Corporation<F1> 1,022
6,400 IDEC Pharmaceuticals Corporation<F1> 1,255
8,050 Incyte Pharmaceuticals, Inc.<F1> 295
--------
2,572
--------
BUILDING & CONSTRUCTION 0.4%
17,200 Clayton Homes, Inc. 158
3,400 Granite Construction, Inc. 78
7,700 Lennar Corporation 247
--------
483
--------
Number Market Value
of Shares (in thousands)
--------- --------------
BUILDING MATERIALS 0.8%
8,800 American Standard Companies, Inc.<F1> $ 404
5,800 Martin Marietta Materials, Inc. 223
4,500 Southdown, Inc. 319
5,800 USG Corporation 99
--------
1,045
BUSINESS SERVICES 4.5%
7,200 ACNielson Corporation<F1> 172
11,000 Avnet, Inc. 296
5,300 Avocent Corporation<F1> 376
22,000 Cintas Corporation 1,020
22,100 Comdisco, Inc. 272
27,700 Concord EFS, Inc.<F1> 1,144
11,400 Galileo International, Inc. 225
10,800 Gartner Group, Inc.<F1> 95
8,500 Harte-Hanks,Inc. 188
3,200 Jacobs Engineering Group, Inc.<F1> 132
8,800 Keane, Inc.<F1> 114
4,500 Kelly Services, Inc. - Class A 100
9,400 Manpower, Inc. 327
12,000 Modis Professional Services, Inc.<F1> 50
5,100 Navigant Consulting, Inc.<F1> 19
3,200 NCO Group, Inc.<F1> 70
7,200 Quanta Services, Inc.<F1> 224
25,800 Robert Half International, Inc. 787
11,700 Viad Corporation 250
--------
5,861
--------
CHEMICALS 1.9%
8,700 Airgas, Inc.<F1> 59
5,700 Albemarle Corporation 132
8,400 Cabot Corporation 185
2,355 Cabot Microelectronics Corporation<F1> 104
14,200 Crompton Corporation 114
5,100 Cytec Industries, Inc.<F1> 177
10,400 Ethyl Corporation 21
4,300 Ferro Corporation 88
3,900 Georgia Gulf Corporation 52
1,700 H.B. Fuller Company 58
6,600 The Lubrizol Corporation 143
14,700 Lyondell Chemical Company 211
2,600 Minerals Technologies, Inc. 81
5,600 Olin Corporation 99
6,100 PolyOne Corporation 48
3,800 A. Schulman, Inc. 42
13,600 Solutia, Inc. 173
9,100 Waters Corporation<F1> 660
4,000 Wellman, Inc. 60
--------
2,507
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MIDCAP INDEX FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
COMMUNICATIONS & MEDIA 2.0%
14,800 A.H. Belo Corporation $ 284
4,399 Chris-Craft Industries, Inc.<F1> 323
13,600 Hispanic Broadcasting Corporation<F1> 425
2,800 Media General, Inc. 106
29,900 Univision Communications, Inc.<F1> 1,144
14,000 Westwood One, Inc.<F1> 265
--------
2,547
--------
COMPUTERS 0.5%
5,100 InFocus Corporation<F1> 225
20,000 Quantum Corporation<F1> 300
12,500 Storage Technology Corporation<F1> 122
--------
647
--------
COMPUTER SERVICES 3.3%
6,200 Affiliated Computer Services, Inc.<F1> 345
35,600 Cadence Design Systems, Inc.<F1> 915
7,800 Cambridge Technology Partners, Inc.<F1> 30
9,700 CheckFree Holdings Corporation<F1> 483
16,500 DST Systems, Inc.<F1> 1,017
18,300 MarchFirst, Inc.<F1> 106
19,100 SunGard Data Systems, Inc.<F1> 976
5,400 Sykes Enterprises, Inc.<F1> 29
8,800 Synopsys, Inc.<F1> 307
--------
4,208
--------
CONSUMER PRODUCTS 0.7%
6,000 Blyth Industries, Inc. 156
5,600 Carter-Wallace, Inc. 154
11,800 The Dial Corporation 132
12,500 Energizer Holdings, Inc.<F1> 247
9,800 Pennzoil-Quaker State Company 115
13,100 RPM, Inc. 117
--------
921
--------
COSMETICS & SOAP 0.1%
4,700 Church & Dwight Companies, Inc. 93
--------
DATA PROCESSING 1.5%
10,800 Acxiom Corporation<F1> 435
6,500 CSG Systems International, Inc.<F1> 302
16,200 Fiserv, Inc.<F1> 849
34,900 Informix Corporation<F1> 148
9,500 The Reynolds & Reynolds Company - Class A 170
--------
1,904
--------
DISTRIBUTION 0.8%
14,000 Arrow Electronics, Inc. 448
4,700 Fastenal Company 270
6,500 Tech Data Corporation<F1> 271
--------
989
--------
Number Market Value
of Shares (in thousands)
--------- --------------
DRUGS 5.0%
16,700 Bergen Brunswig Corporation $ 151
11,100 Forest Laboratories, Inc.<F1> 1,471
5,900 Gilead Sciences, Inc.<F1> 507
9,900 ICN Pharmaceuticals, Inc. 377
22,650 IVAX Corporation 985
24,000 Millennium Pharmaceuticals, Inc.<F1> 1,742
16,800 Mylan Laboratories, Inc. 470
9,100 Perrigo Company<F1> 60
9,500 Sepracor, Inc.<F1> 647
--------
6,410
--------
ELECTRIC 7.6%
16,000 Allegheny Energy, Inc. 655
9,900 Alliant Energy Corporation 300
2,700 Black Hills Corporation 84
19,900 Calpine Corporation<F1> 1,571
2,800 Cleco Corporation 133
11,300 Conectiv, Inc. 203
19,200 DPL, Inc. 545
9,800 DQE, Inc. 342
15,400 Energy East Corporation 311
4,100 Hawaiian Electric Industries, Inc. 135
4,700 IDACORP, Inc. 232
10,700 IPALCO Enterprises, Inc. 240
7,700 Kansas City Power & Light Company 185
16,200 LG&E Energy Corporation 398
15,300 The Montana Power Company 432
15,100 NiSource, Inc. 377
21,500 Northeast Utilities 438
7,000 NSTAR 271
9,800 OGE Energy Corporation 202
14,800 Potomac Electric Power Company 339
4,900 Public Service Company of New Mexico 135
10,600 Puget Sound Energy, Inc. 260
13,069 SCANA Corporation 346
9,800 Sierra Pacific Resources 168
18,100 TECO Energy, Inc. 505
11,700 Utilicorp United Inc. 311
7,600 Vectren Corporation 176
9,700 Western Resources, Inc. 207
15,000 Wisconsin Energy Corporation 282
--------
9,783
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MIDCAP INDEX FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
ELECTRONICS 3.3%
4,000 AMETEK, Inc. $ 87
8,900 Diebold, Inc. 231
3,800 DSP Group, Inc.<F1> 108
7,400 Hubbell, Inc. 177
4,100 L-3 Communications Holdings, Inc.<F1> 270
2,900 MagneTek, Inc.<F1> 32
15,300 Microchip Technology Inc.<F1> 484
21,000 SCI Systems, Inc.<F1> 903
5,300 Sawtek, Inc.<F1> 270
9,600 Sensormatic Electronics Corporation<F1> 173
19,800 Symbol Technologies, Inc. 900
5,600 UCAR International, Inc.<F1> 46
19,900 Vishay Intertechnology, Inc.<F1> 597
--------
4,278
--------
ENTERTAINMENT & LEISURE 1.3%
9,500 Callaway Golf Company 152
4,300 GTECH Holdings Corporation<F1> 74
9,000 International Game Technology<F1> 330
6,600 International Speedway Corporation 212
11,300 Mandalay Resort Group<F1> 235
44,100 Park Place Entertainment Corporation<F1> 562
8,400 Six Flags, Inc. 131
--------
1,696
FINANCIAL SERVICES 2.2%
11,000 A.G. Edwards, Inc. 558
42,300 E*TRADE Group, Inc.<F1> 616
7,600 The FINOVA Group, Inc. 20
3,900 Investment Technology Group, Inc. 140
8,250 Legg Mason, Inc. 429
8,700 NOVA Corporation<F1> 136
7,400 SEI Investments Company 672
10,200 Waddel &Reed Financial, Inc. 325
--------
2,896
FOOD, BEVERAGES & TOBACCO 2.4%
4,500 Dean Foods Company 144
7,000 Dole Food Company, Inc. 84
3,500 Dreyer's Grand Ice Cream, Inc. 86
12,400 Flowers Industries, Inc. 191
17,700 Hormel Foods Corporation 298
13,200 IBP, Inc. 271
2,400 International Multifoods Corporation 41
8,300 Interstate Bakeries Corporation 116
3,600 Lance, Inc. 36
8,600 McCormick & Company, Inc. 273
15,000 R.J. Reynolds Tobacco Holding, Inc. 536
5,800 Ruddick Corporation 76
300 The J.M. Smucker Company 7
3,600 Suiza Foods Corporation<F1> 167
Number Market Value
of Shares (in thousands)
--------- --------------
FOOD, BEVERAGES & TOBACCO 2.4% (CONT.)
28,100 Tyson Foods, Inc. - Class A $ 314
3,500 Universal Corporation 98
6,200 Universal Foods Corporation 122
16,900 Whitman Corporation 220
--------
3,080
--------
HEALTH CARE SERVICES & SUPPLIES 3.4%
6,500 Apria Healthcare Group, Inc.<F1> 130
7,100 Covance Inc.<F1> 61
4,700 Express Scripts, Inc.<F1> 316
6,000 First Health Group Corporation<F1> 234
15,200 Foundation Health Systems, Inc.<F1> 307
11,200 Genzyme Corporation<F1> 795
33,100 Health Management Associates, Inc. -
Class A<F1> 656
7,800 Hillenbrand Industries, Inc. 361
6,600 Lincare Holdings, Inc.<F1> 278
11,500 Omnicare, Inc. 201
5,800 Quest Diagnostics, Inc.<F1> 558
8,900 Quorum Health Group, Inc.<F1> 119
4,700 Trigon Healthcare, Inc.<F1> 337
--------
4,353
--------
HOME FURNISHINGS 0.2%
6,100 Furniture Brands International, Inc.<F1> 103
6,800 Mohawk Industries, Inc.<F1> 148
--------
251
--------
INSURANCE 3.1%
7,700 Allmerica Financial Corporation 486
10,200 Ambac Financial Group, Inc. 814
7,300 American Financial Group, Inc. 157
5,700 Everest Re Group, Ltd. 334
5,100 Horace Mann Educators Corporation 86
3,600 HSB Group, Inc. 142
6,500 The MONY Group, Inc. 267
7,500 Ohio Casualty Corporation 63
14,800 Old Republic International Corporation 385
10,300 Oxford Health Plans, Inc.<F1> 348
4,400 PacifiCare Health Systems, Inc.<F1> 46
5,500 The PMI Group, Inc. 406
8,000 Protective Life Corporation 185
8,600 Unitrin, Inc. 267
--------
3,986
--------
MACHINERY - AGRICULTURE & Automotive 0.1%
7,450 AGCO Corporation 85
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MIDCAP INDEX FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Number Market Value
of Shares (in thousands)
--------- ---------------
MACHINERY - INDUSTRIAL 0.9%
3,836 Albany International Corporation $ 41
4,700 Flowserve Corporation 95
4,500 Imation Corporation<F1> 89
3,800 Kennametal, Inc. 112
4,000 Nordson Corporation 115
4,600 SPX Corporation 569
3,500 Stewart & Stevenson Services, Inc. 84
--------
1,105
MANUFACTURING 1.2%
3,800 Carlisle Companies Inc. 158
5,700 Federal Signal Corporation 133
4,900 Harsco Corporation 99
3,800 Kaydon Corporation 83
4,900 Lancaster Colony Corporation 116
3,600 Modine Manufacturing Company 95
600 NCH Corporation 23
6,000 Pentair, Inc. 179
6,200 Precision Castparts Corporation 234
2,500 Tecumseh Products Company - Class A 100
4,700 Teleflex, Inc. 162
4,900 Trinity Industries, Inc. 118
--------
1,500
--------
MEDICAL INSTRUMENTS 2.4%
3,400 Acuson Corporation<F1> 78
3,600 Beckman Coulter,Inc. 252
6,400 DENTSPLY International, Inc. 222
7,300 Edwards Lifesciences Corporation<F1> 98
8,500 MiniMed, Inc.<F1> 620
8,900 PSS World Medical, Inc.<F1> 27
8,400 STERIS Corporation<F1> 126
25,600 Stryker Corporation 1,206
13,100 Sybron International Corporation<F1> 324
7,600 VISX, Inc.<F1> 163
--------
3,116
--------
METALS & MINERALS 0.2%
13,800 AK Steel Holding Corporation 128
2,800 Carpenter Technology Corporation 87
1,300 Cleveland-Cliffs, Inc. 27
900 MAXXAM, Inc.<F1> 17
3,100 Ryerson Tull, Inc. 23
--------
282
--------
Number Market Value
of Shares (in thousands)
--------- --------------
MISCELLANEOUS 1.4%
5,700 Donaldson Company, Inc. $ 129
14,300 IMC Global, Inc. 185
3,800 Rollins, Inc. 69
7,300 Sotheby's Holdings, Inc. 198
13,300 Stewart Enterprises, Inc. 28
50,900 3 Com Corporation<F1> 903
6,300 Titan Corporation<F1> 84
5,400 The Valspar Corporation 147
4,700 York International Corporation 128
--------
1,871
--------
MULTI-INDUSTRY 0.2%
5,100 Alexander & Baldwin,Inc. 127
6,200 Ogden Corporation 85
6,400 Pittston Brink's Group 102
--------
314
--------
OFFICE EQUIPMENT & SUPPLIES 0.4%
9,800 Herman Miller, Inc. 256
7,450 HON INDUSTRIES, Inc. 179
3,400 The Standard Register Company 41
5,000 Wallace Computer Services, Inc. 73
--------
549
--------
OIL - DOMESTIC 0.1%
6,200 Helmerich & Payne, Inc. 195
--------
OIL - INTERNATIONAL 2.3%
5,600 Murphy Oil Corporation 324
21,100 Nabors Industries, Inc.<F1> 1,074
7,000 Noble Affiliates, Inc. 257
19,400 Noble Drilling Corporation<F1> 806
20,900 Ocean Energy Inc.<F1> 290
12,400 Pioneer Natural Resources Company 162
--------
2,913
--------
OIL & GAS SERVICES 6.7%
6,800 AGL Resources, Inc. 139
12,100 BJ Services Company<F1> 635
7,600 Cooper Cameron Corporation<F1> 414
39,850 Dynegy, Inc. 1,846
20,000 ENSCO International, Inc. 665
25,400 Global Marine, Inc.<F1> 673
13,550 Grant Prideco, Inc.<F1> 252
7,200 Hanover Compressor Company<F1> 235
16,500 Kinder Morgan, Inc. 636
10,700 MCN Energy Group, Inc. 263
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MIDCAP INDEX FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
OIL & GAS SERVICES 6.7% (CONT.)
4,900 National Fuel Gas Company $ 263
10,000 Questar Corporation 271
7,300 Smith International, Inc.<F1> 515
7,500 Tidewater, Inc. 346
10,800 Ultramar Diamond Shamrock Corporation 284
7,000 Valero Energy Corporation 231
11,373 Varco International, Inc. 196
5,800 Washington Gas Light Company 148
15,700 Weatherford International, Inc.<F1> 573
--------
8,585
--------
PAPER & FOREST PRODUCTS 1.1%
6,400 Bowater, Inc. 346
2,000 Chesapeake Corporation 39
10,100 Georgia-Pacific Corporation 286
6,400 Longview Fibre Company 87
5,300 P.H. Glatfeler Company 55
3,400 Rayonier, Inc. 120
12,400 Sonoco Products Company 239
19,148 Stora Enso - ADR<F1> 194
6,400 Wausau-Mosinee Paper Corporation 56
--------
1,422
PRINTING & PUBLISHING 1.6%
3,100 Banta Corporation 72
4,000 Houghton Mifflin Company 147
5,500 Lee Enterprises, Inc. 152
15,200 Reader's Digest Association, Inc. 558
2,100 Scholastic Corporation<F1> 168
6,900 Valassis Communications, Inc.<F1> 191
1,400 The Washington Post Company - Class B 748
--------
2,036
--------
RESTAURANTS 0.7%
4,600 Bob Evans Farms, Inc. 87
8,100 Brinker International, Inc.<F1> 318
7,300 CBRL Group, Inc. 131
3,300 Lone Star Steakhouse & Saloon, Inc. 28
9,400 Outback Steakhouse, Inc.<F1> 268
3,100 Papa John's International, Inc.<F1> 78
--------
910
--------
Number Market Value
of Shares (in thousands)
--------- --------------
RETAIL 3.1%
12,800 Abercrombie & Fitch Company<F1> $ 302
5,800 American Eagle Outfitters, Inc.<F1> 200
8,100 Barnes & Noble, Inc.<F1> 153
9,200 BJ's Wholesale Club, Inc.<F1> 303
9,600 Borders Group, Inc.<F1> 133
11,450 CDW Computer Centers, Inc.<F1> 738
6,400 Claire's Stores, Inc. 129
14,950 Dollar Tree Stores, Inc.<F1> 585
21,300 Family Dollar Stores, Inc. 414
3,800 Lands' End, Inc.<F1> 97
6,100 Neiman Marcus Group, Inc. 226
14,000 OfficeMax, Inc.<F1> 40
2,800 Payless ShoeSource, Inc.<F1> 162
11,000 Ross Stores, Inc. 145
17,800 Saks, Inc.<F1> 181
7,100 Williams-Sonoma, Inc.<F1> 148
--------
3,956
--------
SAVINGS & LOAN 1.2%
6,400 Astoria Financial Corporation 240
13,900 Dime Bancorp, Inc. 340
12,900 GreenPoint Financial Corporation 384
8,000 Roslyn Bancorp, Inc. 174
28,200 Sovereign Bancorp, Inc. 234
6,600 Webster Financial Corporation 161
--------
1,533
--------
SCHOOLS 0.6%
9,400 Apollo Group, Inc.<F1> 368
8,700 DeVry, Inc.<F1> 321
5,300 Sylvan Learning Systems, Inc.<F1> 82
--------
771
--------
SEMICONDUCTORS 7.6%
57,800 Atmel Corporation<F1> 863
8,300 Cirrus Logic, Inc.<F1> 358
6,100 Credence Systems Corporation<F1> 114
17,300 Cypress Semiconductor Corporation<F1> 648
13,600 Integrated Device Technology, Inc.<F1> 766
8,600 International Rectifier Corporation<F1> 384
25,000 Jabil Circuit, Inc.<F1> 1,427
15,000 Lattice Semiconductor Corporation<F1> 438
12,200 Micrel, Inc.<F1> 552
11,650 Qlogic Corporation<F1> 1,127
8,200 Semtech Corporation<F1> 264
11,700 TranSwitch Corporation<F1> 676
11,100 TriQuint Semiconductor, Inc.<F1> 425
24,500 Vitesse Semiconductor Corporation<F1> 1,713
--------
9,755
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MIDCAP INDEX FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- -------------
SHIPBUILDING 0.1%
3,900 Newport News Shipbuilding, Inc. $ 192
--------
SOFTWARE 5.3%
18,800 Electronic Arts, Inc.<F1> 940
26,500 Intuit, Inc.<F1> 1,628
10,800 Legato Systems, Inc.<F1> 96
6,100 Macromedia, Inc.<F1> 470
7,900 Mentor Graphics Corporation<F1> 185
8,800 Mynd Corporation<F1> 112
20,100 Network Associates, Inc.<F1> 387
9,000 NVIDIA Corporation<F1> 559
23,300 Rational Software Corporation<F1> 1,391
4,500 Structural Dynamics Research Corporation<F1> 46
11,100 Sybase,Inc.<F1> 232
7,400 Symantec Corporation<F1> 289
4,100 Transaction Systems Architects, Inc.<F1> 55
10,200 Wind River Systems,Inc.<F1> 419
--------
6,809
--------
TELECOMMUNICATIONS 1.3%
28,150 Broadwing, Inc.<F1> 795
8,200 Telephone and Data Systems, Inc. 865
--------
1,660
TELECOMMUNICATIONS EQUIPMENT 1.3%
4,800 ADTRAN, Inc.<F1> 182
4,700 ANTEC Corporation<F1> 57
6,300 CommScope, Inc.<F1> 160
8,600 Harris Corporation 273
9,000 Polycom, Inc.<F1> 585
7,600 Powerwave Technologies, Inc.<F1> 366
--------
1,623
--------
TEXTILES & APPAREL 0.6%
14,800 Jones Apparel Group, Inc.<F1> 412
7,100 Unifi, Inc.<F1> 62
16,100 Shaw Industries, Inc. 299
6,600 Warnaco Group, Inc. 17
6,100 Westpoint Stevens, Inc. 44
--------
834
--------
TIRE & RUBBER 0.1%
2,600 Bandag, Inc. 93
--------
Number Market Value
of Shares (in thousands)
--------- --------------
TRANSPORTATION 1.1%
6,100 Airborne Freight Corporation $ 61
3,300 Alaska Air Group, Inc.<F1> 86
3,100 Arnold Industries, Inc. 54
4,500 Atlas Air, Inc.<F1> 163
5,300 C.H. Robinson Worldwide, Inc. 290
6,000 CNF Transportation, Inc. 160
5,900 GATX Corporation 248
4,400 J.B. Hunt Transport Services, Inc.<F1> 57
4,200 Overseas Shipholding Group, Inc. 101
7,800 Swift Transportation Company, Inc.<F1> 111
6,200 Wisconsin Central Transportation
Corporation<F1> 79
--------
1,410
--------
UTILITIES 0.2%
12,200 American Water Works, Inc. 297
--------
Total Common Stocks (Cost $111,973) 121,841
--------
Number
of Shares
(in thousands)
--------------
SHORT-TERM INVESTMENTS 5.0%
INVESTMENT COMPANIES 4.3%
20 Financial Square Prime Obligation Fund 20
5,554 Short-Term Investments Co.
Liquid Assets Portfolio 5,554
--------
Total Investment Companies (Cost $5,574) 5,574
--------
Principal
Amount
(in thousands)
--------------
U.S. TREASURIES 0.7%
$ 700 U.S. Treasury Bill, 5.16%, 11/09/00 699
200 U.S. Treasury Bill, 5.92%, 12/14/00 199
--------
Total U.S. Treasuries (Cost $898) 898
--------
Total Short-Term Investments (Cost $6,472) 6,472
--------
Total Investments (Cost $118,445) 99.7% 128,313
--------
Other Assets, less Liabilities 0.3% 391
--------
TOTAL NET ASSETS 100.0% $128,704
========
<F1> Non-income producing
ADR - American Depository Receipt
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MIDCAP CORE EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
(Unaudited)
Number Market Value
of Shares (in thousands)
--------- --------------
COMMON STOCKS 89.4%
AEROSPACE & Aircraft 0.5%
52,700 Litton Industries, Inc.<F1> $ 2,737
--------
BANKING 4.0%
7,900 Banknorth Group, Inc. 142
40,400 Charter One Financial, Inc. 924
71,075 City National Corporation 2,443
97,000 Cullen/Frost Bankers, Inc. 3,231
69,700 Dime Bancorp, Inc. 1,703
46,800 First Tennessee National Corporation 1,071
7,300 Marshall & Ilsley Corporation 331
243,495 National Commerce Bancorporation 5,174
107,100 North Fork Bancorporation, Inc. 2,162
49,100 TCF Financial Corporation 1,985
49,200 Zions Bancorporation 2,826
--------
21,992
--------
BIOTECHNOLOGY 1.9%
48,800 Chiron Corporation<F1> 2,114
102,825 Millennium Pharmaceuticals, Inc.<F1> 7,461
10,500 Vertex Pharmaceuticals, Inc.<F1> 939
--------
10,514
--------
BUILDING MATERIALS & CONSTRUCTION 1.1%
49,725 Martin Marietta Materials, Inc. 1,909
56,680 Southdown, Inc. 4,017
--------
5,926
--------
BUSINESS SERVICES 3.2%
86,850 Cintas Group<F1> 4,028
139,900 Manpower, Inc. 4,870
162,600 Robert Half International, Inc. 4,959
76,350 Symbol Technologies, Inc. 3,469
--------
17,326
--------
COMMUNICATIONS & MEDIA 2.7%
137,400 Charter Communications, Inc.<F1> 2,679
30,300 Hispanic Broadcasting Corporation<F1> 947
108,200 Univision Communications, Inc.<F1> 4,139
331,200 USA Networks, Inc.<F1> 6,707
--------
14,472
--------
COMPUTER SERVICES 5.7%
99,200 Affiliated Computer Services, Inc.<F1> 5,524
132,950 The BISYS Group, Inc.<F1> 6,265
47,750 DST Systems, Inc.<F1> 2,946
316,775 Sungard Data Systems, Inc.<F1> 16,195
--------
30,930
--------
Number Market Value
of Shares (in thousands)
--------- --------------
CONSUMER PRODUCTS 0.7%
268,700 Rayovac Corporation<F1> $ 3,963
--------
DATA PROCESSING 3.3%
276,800 Acxiom Corporation<F1> 11,141
57,600 ChoicePoint, Inc.<F1> 2,948
35,575 CSG Systems International, Inc.<F1> 1,652
26,000 SEI Investments Company 2,360
--------
18,101
--------
DISTRIBUTION 0.1%
10,200 Fastenal Company 586
--------
DRUGS 4.4%
24,000 Gilead Sciences,Inc.<F1> 2,064
12,800 IDEC Pharmaceuticals Corporation<F1> 2,510
103,600 IVAX Corporation 4,507
87,662 King Pharmaceuticals, Inc.<F1> 3,928
94,600 Mylan Laboratories, Inc. 2,649
32,800 Sepracor, Inc.<F1> 2,235
94,600 Serono SA<F1> 2,140
9,700 Shire Pharmaceuticals Group PLC - ADR<F1> 610
48,500 Watson Pharmaceuticals, Inc.<F1> 3,034
--------
23,677
--------
ELECTRONICS 3.4%
25,300 C-MAC Industries, Inc.<F1> 1,418
106,900 Jabil Circuit, Inc.<F1> 6,100
128,200 SCI Systems, Inc.<F1> 5,513
82,200 Veeco Instruments, Inc.<F1> 5,442
--------
18,473
--------
ENTERTAINMENT & LEISURE 0.6%
267,225 Park Place Entertainment Corporation<F1> 3,414
--------
FINANCIAL SERVICES 2.6%
159,057 Concord EFS, Inc.<F1> 6,571
37,525 Countrywide Credit Industries, Inc. 1,405
163,250 E*Trade Group, Inc.<F1> 2,377
58,972 Fiserv, Inc.<F1> 3,092
48,000 NOVA Corporation<F1> 753
--------
14,198
--------
FOOD, BEVERAGES & TOBACCO 1.4%
20,800 Adolph Coors Company 1,325
38,700 Constellation Brands, Inc.<F1> 1,887
61,750 Dean Foods Company 1,976
31,400 McCormick & Company 995
68,000 Universal Foods Corporation 1,343
--------
7,526
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MIDCAP CORE EQUITY FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
HEALTH CARE SERVICES & SUPPLIES 1.7%
259,759 Health Management Associates, Inc. -
Class A<F1> $ 5,146
93,010 Lincare Holdings, Inc.<F1> 3,912
--------
9,058
INSURANCE 6.2%
32,000 Allmerica Financial Corporation 2,018
134,575 Ambac Financial Group, Inc. 10,741
69,800 Aon Corporation 2,892
110,200 Everest Re Group, Ltd. 6,460
106,100 John Hancock Financial Services, Inc.<F1> 3,355
195,600 Old Republic International Corporation 5,086
31,550 The PMI Group, Inc. 2,331
45,955 Protective Life Corporation 1,063
--------
33,946
--------
INTERNET PRODUCTS & SERVICES 1.6%
321,175 Interliant, Inc.<F1> 1,927
197,400 PurchasePro.com, Inc.<F1> 5,330
18,000 TMP Worldwide, Inc.<F1> 1,253
--------
8,510
--------
MACHINERY - INDUSTRIAL 1.3%
29,075 SPX Corporation 3,594
81,350 Zebra Technologies Corporation<F1> 3,565
--------
7,159
--------
MEDICAL INSTRUMENTS 2.5%
66,900 Coherent, Inc.<F1> 2,329
22,800 MiniMed, Inc.<F1> 1,663
63,000 Stryker Corporation 2,969
58,525 Sybron International Corporation<F1> 1,448
71,400 Waters Corporation<F1> 5,181
--------
13,590
--------
METALS & MINERALS 0.4%
108,775 Allegheny Technologies, Inc. 2,203
--------
NETWORKING PRODUCTS 2.6%
187,800 Network Associates, Inc.<F1> 3,616
68,900 QLogic Corporation<F1> 6,666
232,600 3Com Corporation<F1> 4,129
--------
14,411
--------
Number Market Value
of Shares (in thousands)
--------- --------------
OIL & GAS SERVICES 5.7%
45,600 Apache Corporation $ 2,522
26,200 BJ Services Company<F1> 1,374
21,600 Cal Dive International, Inc.<F1> 1,075
79,525 ENSCO International, Inc. 2,644
54,575 Equitable Resources, Inc. 3,188
97,900 Global Marine, Inc.<F1> 2,594
33,000 Hanover Compressor Company<F1> 1,077
39,700 Nabors Industries, Inc.<F1> 2,021
25,300 National Fuel Gas Company 1,357
63,700 Noble Drilling Corporation<F1> 2,648
173,800 Petroleum Geo-Services ASA - ADR<F1> 2,379
157,500 Precision Drilling Corporation<F1> 4,508
16,300 Smith International, Inc.<F1> 1,149
42,300 Talisman Energy, Inc.<F1> 1,325
36,700 Weatherford International, Inc.<F1> 1,340
--------
31,201
--------
OIL REFINING 0.2%
32,125 Valero Energy Corporation 1,064
--------
PRINTING & PUBLISHING 2.3%
77,475 Banta Corporation 1,787
85,450 Harcourt General, Inc. 4,789
66,100 Reader's Digest Association, Inc. 2,425
41,275 Scholastic Corporation<F1> 3,301
--------
12,302
RESTAURANTS 1.1%
121,600 CEC Entertainment, Inc.<F1> 3,876
75,900 Outback Steakhouse, Inc.<F1> 2,163
--------
6,039
RETAIL 4.6%
319,400 Abercrombie & Fitch Company<F1> 7,526
54,730 BJ's Wholesale Club, Inc.<F1> 1,803
128,828 Dollar General Corporation 1,997
657,195 Family Dollar Stores<F1> 12,774
43,800 Williams-Sonoma, Inc.<F1> 912
--------
25,012
--------
RETAIL - COMPUTERS 0.5%
40,000 CDW Computer Centers, Inc.<F1> 2,578
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MIDCAP CORE EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Number Market Value
of Shares (in thousands)
--------- -------------
SEMICONDUCTORS 4.9%
77,000 Analog Devices, Inc.<F1> $ 5,005
101,100 Atmel Corporation<F1> 1,510
67,350 Integrated Device Technology, Inc.<F1> 3,793
42,450 Micrel, Inc.<F1> 1,921
34,300 NVIDIA Corporation<F1> 2,131
18,775 Semtech Corporation<F1> 605
46,750 TranSwitch Corporation<F1> 2,700
53,600 TriQuint Semiconductor, Inc.<F1> 2,054
102,500 Vitesse Semiconductor Corporation<F1> 7,169
--------
26,888
--------
SOFTWARE 4.5%
144,600 Cadence Design Systems, Inc.<F1> 3,714
66,100 Electronic Arts, Inc.<F1> 3,305
72,000 Intuit, Inc.<F1> 4,424
19,100 Macromedia, Inc.<F1> 1,472
111,700 Rational Software Corporation<F1> 6,667
100,550 Saga Systems, Inc.<F1> 540
100,200 Sybase, Inc.<F1> 2,098
27,000 Symantec Corporation<F1> 1,063
32,200 Wind River Systems, Inc.<F1> 1,322
--------
24,605
TELECOMMUNICATIONS 3.7%
136,100 Broadwing, Inc.<F1> 3,838
279,500 McLeodUSA, Incorporated<F1> 5,380
166,600 TeleCorp PCS, Inc.<F1> 3,124
81,125 Williams Communications Group, Inc.<F1> 1,486
195,300 XO Communications, Inc.<F1> 6,588
--------
20,416
--------
TELECOMMUNICATIONS EQUIPMENT 3.0%
36,300 ADTRAN, Inc.<F1> 1,402
59,000 Ditech Communications Corporation<F1> 2,070
200 Exfo Electro-Optical Engineering, Inc.<F1> 8
125,400 Harris Corporation 3,974
39,200 Polycom, Inc.<F1> 2,548
39,900 Powerwave Technologies, Inc.<F1> 1,920
64,800 REMEC, Inc.<F1> 1,932
105,700 Turnstone Systems, Inc.<F1> 2,246
--------
16,100
--------
TRANSPORTATION 0.2%
31,300 GATX Corporation 1,317
--------
Number Market Value
of Shares (in thousands)
--------- --------------
UTILITIES 6.8%
72,550 Allegheny Energy, Inc. $ 2,970
73,475 Calpine Corporation<F1> 5,800
60,800 Energy East Corporation 1,227
119,900 Exelon Corporation 7,209
53,800 Kansas City Power & Light Company 1,295
133,900 Kinder Morgan, Inc. 5,164
77,900 Montana Power Company 2,201
123,975 NRG Energy, Inc.<F1> 3,223
23,300 Northeast Utilities 466
161,200 Southern Energy, Inc.<F1> 4,393
157,800 Wisconsin Energy Corporation 2,971
--------
36,919
Total Common Stocks (Cost $402,443) 487,153
--------
Number
of Shares
(in thousands)
--------------
SHORT-TERM INVESTMENTS 8.3%
Investment Companies 6.1%
15,441 Financial Square Prime Obligation Fund 15,441
17,858 Short-Term Investments Co.
Liquid Assets Portfolio 17,858
--------
Total Investment Companies (Cost $33,299) 33,299
--------
Principal
Amount
(in thousands)
--------------
Variable Rate Demand Notes 2.2%
$12,000 American Family Financial Services, Inc. 12,000
--------
Total Variable Rate Demand Notes
(Cost $12,000) 12,000
--------
Total Short-Term Investments (Cost $45,299) 45,299
--------
Total Investments (Cost $447,742) 97.7% 532,452
--------
Other Assets, less Liabilities 2.3% 12,153
--------
TOTAL NET ASSETS 100.0% $544,605
========
<F1> Non-income producing
ADR - American Depository Receipt
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SMALL CAP INDEX FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
COMMON STOCKS 97.5%
Advertising 1.7%
3,791 Advo, Inc.<F1> $ 140
11,438 Catalina Marketing Corporation<F1> 449
2,833 Cyrk, Inc.<F1> 11
8,589 Ha-Lo Industries, Inc.<F1> 33
18,730 Havas Advertising SA<F1> 301
10,174 True North Communications, Inc. 383
--------
1,317
AEROSPACE/DEFENSE 0.6%
4,841 AAR Corporation 58
1,806 Alliant Techsystems, Inc.<F1> 162
4,351 BEAerospace, Inc.<F1> 72
7,424 Gencorp, Inc. 62
4,089 Kaman Corporation Class A 59
6,669 Orbital Sciences Corporation<F1> 53
--------
466
AGRICULTURE 0.1%
1,876 Agribrands International, Inc.<F1> 82
--------
AIRLINES 0.7%
4,225 Atlantic Coast Airlines Holdings, Inc.<F1> 151
5,990 Mesa Air Group, Inc.<F1> 35
2,458 Midwest Express Holdings<F1> 47
5,625 Skywest, Inc. 284
--------
517
APPAREL 1.3%
2,513 Ashworth, Inc.<F1> 19
4,474 Cone Mills Corporation<F1> 19
1,297 Haggar Corporation 17
5,446 Hartmarx Corporation<F1> 14
1,972 K-Swiss, Inc. Class A 54
4,873 Kellwood Company 95
6,110 Nautica Enterprises, Inc.<F1> 77
2,270 Oshkosh B'gosh, Inc. 36
1,416 Oxford Industries, Inc. 25
4,802 Phillips-Van Heusen Corporation 57
3,973 Quicksilver, Inc.<F1> 76
8,164 Timberland Company<F1> 421
2,468 WETSeal, Inc. Class A<F1> 46
7,304 Wolverine World Wide 79
--------
1,035
--------
AUTOMOTIVE PARTS 0.7%
2,900 Midas, Inc. 40
10,308 O'Reilly Automotive, Inc.<F1> 186
3,184 Simpson Industries, Inc. 38
2,248 Spartan Motors, Inc. 6
2,289 Standard Motor Products, Inc. 19
3,701 TBCCorporation<F1> 18
Number Market Value
of Shares (in thousands)
--------- --------------
AUTOMOTIVE PARTS 0.7% (CONT.)
5,945 Tenneco Automotive, Inc. $ 26
9,500 The Pep Boys - Manny, Moe & Jack 43
3,641 Titan International, Inc. 17
8,314 Tower Automotive, Inc.<F1> 91
4,032 Wabash National Corporation 32
--------
516
--------
BANKS AND S&Ls 5.9%
4,492 Anchor Bancorp Wisconsin, Inc. 69
8,203 Centura Banks, Inc. 315
4,973 Chittenden Corporation 132
6,332 Commerce Bancorp, Inc. NJ 383
11,422 Commercial Federal Corporation 200
8,816 Community First Bancshares 137
10,530 Cullen/Frost Bankers, Inc. 351
5,721 Downey Financial Corporation 273
5,049 First Bancorp/Puerto Rico 116
7,769 First Midwest Bancorp, Inc. 195
2,400 GBCBancorp 77
9,516 Hudson United Bancorp 213
9,300 Imperial Bancorp<F1> 226
6,150 Investors Financial Services Corporation 441
4,306 MAF Bancorp,Inc. 103
4,758 Provident Bancshares Corporation 90
3,772 Queens County Bancorp,Inc. 106
5,013 Riggs National Corporation Washington, D.C. 56
5,800 Southwest BanCorporation of Texas, Inc.<F1> 212
7,100 Staten Island Bancorp,Inc. 137
7,904 Susquehanna Bancshares,Inc. 112
13,968 Trustco Bank Corporation NY 168
8,125 United Bancshares,Inc. 158
10,800 Washington Federal, Inc. 241
4,606 Whitney Holding Corporation 170
--------
4,681
--------
BEVERAGES 0.3%
1,531 Coca-Cola Bottling Company Consolidated 55
3,767 Constellation Brands, Inc.<F1> 184
--------
239
--------
BIOMEDICAL 2.3%
10,068 Advanced Tissue Sciences, Inc.<F1> 72
11,141 Bio-TechnologyGeneral Corporation<F1> 117
5,251 Enzo Biochem, Inc.<F1> 202
6,933 Organogenesis, Inc.<F1> 87
8,596 Protein Design Labs, Inc.<F1> 1,161
7,240 Regeneron Pharmaceutical<F1> 194
--------
1,833
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SMALL CAP INDEX FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
---------- --------------
BUILDING PRODUCTS 0.6%
4,882 Apogee Enterprises, Inc. $ 26
1,279 Butler Manufacturing Company 31
3,422 Elcor Corporation 53
3,326 Florida Rock Industries 129
2,085 Republic Group, Inc. 39
2,085 Simpson Manufacturing Company, Inc.<F1> 89
3,694 Texas Industries, Inc. 86
3,564 Universal Forest Products 48
--------
501
--------
BUSINESS SERVICES 2.1%
5,500 Administaff, Inc.<F1> 195
5,346 Checkpoint Systems, Inc.<F1> 42
5,247 Edgewater Technology, Inc.<F1> 26
10,092 eLoyalty Corporation<F1> 97
2,400 Hall,Kinion & Associates, Inc.<F1> 63
3,900 Heidrick &Struggles International,Inc.<F1> 241
6,553 National Data Corporation 250
4,600 On Assignment, Inc.<F1> 116
6,500 Penton Media, Inc. 199
11,885 Spherion Corporation<F1> 141
2,500 StarTek, Inc.<F1> 64
6,953 United Stationers Inc. 209
--------
1,643
--------
CHEMICALS 1.4%
4,100 Arch Chemicals, Inc. 80
5,134 Cambrex Corporation 205
3,234 Chemfirst, Inc. 74
4,699 Lilly Industries, Inc. 141
5,726 Macdermid, Inc. 123
4,613 Mississippi Chemical Corporation 21
4,748 OM Group, Inc. 220
7,387 Omnova Solutions, Inc. 42
1,353 Penford Corporation 17
19,616 PolyOne Corporation 154
1,564 Quaker Chemical Corporation 27
2,427 Tetra Technologies, Inc.<F1> 35
--------
1,139
--------
COMMERCIAL SERVICES 4.0%
3,509 Aaron Rents, Inc. 59
4,547 ABMIndustries, Inc. 127
6,646 Billing Concepts Corporation<F1> 20
11,322 BISYSGroup, Inc.<F1> 534
3,354 CDICorporation<F1> 53
7,424 Central Parking Corporation 142
1,801 Chemed Corporation 59
1,754 CPICorporation 35
3,630 Franklin Covey Company<F1> 29
3,200 F.Y.I. Inc.<F1> 128
13,486 Hooper Holmes, Inc. 128
Number Market Value
of Shares (in thousands)
--------- --------------
COMMERCIAL SERVICES 4.0% (CONT.)
2,004 Insurance Auto Auctions, Inc.<F1> $ 24
7,622 Labor Ready, Inc.<F1> 23
3,301 Lason, Inc.<F1> 3
9,747 Lennox International Inc. 77
3,674 Maximus, Inc.<F1> 90
3,300 MemberWorks Inc.<F1> 113
9,994 Orthodontic Centers Of America, Inc.<F1> 334
4,455 Parexel International Corporation<F1> 39
5,155 Pharmaceutical Product Development, Inc.<F1> 161
8,030 Plexus Corporation<F1> 506
4,494 Prepaid Legal Services, Inc.<F1> 197
8,584 Profit Recovery Group International, Inc.<F1> 46
3,300 SCPPool Corporation<F1> 85
18,762 USOncology Inc.<F1> 101
2,676 Volt Information Sciences, Inc.<F1> 58
--------
3,171
--------
COMPUTERS 2.8%
3,943 Analysts International Corporation 25
7,517 Anixter International,Inc.<F1> 182
4,827 Auspex System, Inc. 49
3,660 Black BOXCorporation<F1> 241
2,500 Brooktrout Inc.<F1> 36
2,300 CACIInternational Inc.<F1> 47
10,447 Ciber, Inc.<F1> 82
3,666 Computer Task Group, Inc. 19
4,051 Exabyte Corporation<F1> 31
6,590 Factset Research Systems, Inc.<F1> 250
4,392 Hutchinson Technology<F1> 96
5,692 InterVoice-Brite, Inc.<F1> 56
8,358 Jack Henry & Associates,Inc. 460
2,187 Kronos, Inc.<F1> 80
3,579 Microage, Inc.<F1> 0
2,961 Micros Systems, Inc.<F1> 58
5,100 NYFIX, Inc.<F1> 201
2,411 QRSCorporation<F1> 20
12,477 Read-Rite Corporation<F1> 93
2,865 Telxon Corporation 64
5,387 Xircom, Inc.<F1> 76
3,425 Zixit Corporation<F1> 84
--------
2,250
--------
COMPUTER SOFTWARE 5.9%
4,800 Actel Corporation<F1> 176
8,405 American Management Systems<F1> 182
5,418 Aspen Technology, Inc.<F1> 224
8,100 Avant! Corporation<F1> 136
5,184 Avid Technology, Inc.<F1> 72
6,100 AVT Corporation<F1> 38
2,794 Barra, Inc.<F1> 171
6,972 Cerner Corporation<F1> 432
8,290 Choicepoint Inc.<F1> 424
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SMALL CAP INDEX FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
COMPUTER SOFTWARE 5.9% (CONT.)
2,500 Concord Communications, Inc.<F1> $ 19
8,059 Dendrite International, Inc.<F1> 175
2,652 DigiInternational, Inc.<F1> 19
7,256 Epicor Software Corporation<F1> 14
4,700 ePresence, Inc.<F1> 33
2,849 Fair, Issac &Company, Inc. 117
7,029 Filenet Corporation<F1> 186
3,986 Great Plains Software, Inc.<F1> 155
6,487 HNCSoftware, Inc.<F1> 132
5,775 Hyperion Solutions Corporation<F1> 81
4,942 Information Resources, Inc.<F1> 26
4,547 Inter-Tel, Inc. 53
4,300 Mercury Computer Systems, Inc.<F1> 133
6,705 Midway Games, Inc.<F1> 52
10,315 National Instruments Corporation<F1> 482
5,400 Phoenix Technologies Ltd.<F1> 87
9,214 Pinnacle Systems, Inc.<F1> 116
6,218 Progress Software Corporation<F1> 98
3,788 Project Software and Development<F1> 49
3,500 RadiSys Corporation<F1> 93
6,391 Remedy Corporation<F1> 109
18,859 S3, Inc.<F1> 170
4,900 SAGASYSTEMS, Inc.<F1> 26
1,800 SPSSInc.<F1> 41
6,700 Systems & Computer Technology Corporation<F1> 97
3,254 THQ, Inc.<F1> 67
6,482 Verity, Inc.<F1> 152
--------
4,637
--------
CONSTRUCTION 0.8%
8,490 Dycom Industries, Inc.<F1> 319
3,900 The Shaw Group Inc.<F1> 318
--------
637
--------
CONSUMER GOODS & SERVICES 0.1%
2,983 Action Performance Cos., Inc.<F1> 7
3,212 Brown Shoe Company, Inc. 32
3,048 Department 56, Inc.<F1> 43
--------
82
DENTAL SUPPLIES 0.5%
13,624 Patterson Dental Company<F1> 427
--------
Diversified Operations 0.4%
7,742 Delta & Pineland Company 189
4,408 Triarc Company<F1> 110
--------
299
Number Market Value
of Shares (in thousands)
--------- --------------
ELECTRICAL & ELECTRONICS 5.1%
2,603 Analogic Corporation $ 92
3,800 Audiovox Corporation Class A<F1> 52
3,876 Benchmark Electronics, Inc.<F1> 156
4,832 BMC Industries, Inc. 29
4,598 Brady Corporation 143
6,758 C-COR.net Corporation<F1> 106
5,489 Coherent, Inc.<F1> 191
5,762 CTSCorporation 247
4,400 Dionex Corporation<F1> 143
5,416 Electro Scientific Industries, Inc.<F1> 189
15,268 Gentex Corporation<F1> 378
2,614 Innovex, Inc. 37
2,657 Itron, Inc.<F1> 16
18,016 Kemet Corporation<F1> 502
5,759 Kent Electronics Corporation<F1> 107
9,216 Kulicke &Soffa Industries, Inc.<F1> 135
7,382 Methode Electronics, Inc. 278
4,054 Northwestern Corporation 90
1,886 Park Electrochemical Corporation 125
8,275 Paxar Corporation<F1> 68
6,041 Photronics, Inc.<F1> 136
2,805 Standard Microsystems Corporation<F1> 67
3,371 Technitrol, Inc. 374
6,407 Teledyne Technologies Inc.<F1> 161
4,720 Trimble Navigation Ltd.<F1> 112
4,729 Watts Industries 53
3,798 X-Rite, Inc. 26
--------
4,013
--------
ELECTRONIC COMPONENTS/INSTRUMENTS 2.8%
7,706 APW Ltd.<F1> 356
7,799 Artesyn Technologies, Inc.<F1> 317
4,299 Belden, Inc. 112
5,408 C&DTechnologies, Inc. 320
9,921 C-Cube Microsystems, Inc.<F1> 193
8,659 Cable Design Technologies Corporation<F1> 200
1,537 Insteel Industries, Inc. 5
2,229 Intermagnetics General Corporation<F1> 57
7,100 Robotic Vision Systems, Inc.<F1> 39
6,313 SLI, Inc.<F1> 52
7,676 Valence Technology, Inc.<F1> 107
8,828 Vicor Corporation<F1> 477
--------
2,235
--------
ENGINEERING 0.5%
8,344 Foster Wheeler Corporation 62
5,090 Instituform Technologies, Inc.<F1> 182
2,783 URSCorporation<F1> 36
9,281 Washington Group International,Inc.<F1> 97
--------
377
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SMALL CAP INDEX FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
ENTERTAINMENT 0.4%
2,338 Anchor Gaming<F1> $ 199
7,713 Aztar Corporation<F1> 117
2,058 Carmike Cinemas, Inc.<F1> 1
1,382 GCCompanies,Inc.<F1> 3
--------
320
--------
ENVIRONMENTAL SERVICES 0.4%
2,933 Imco Recycling, Inc. 16
2,864 Ionics, Inc.<F1> 60
7,996 Tetra Tech, Inc.<F1> 278
--------
354
--------
FINANCIAL SERVICES 2.6%
15,612 Americredit Corporation<F1> 420
2,538 Dain Rauscher Corporation 238
7,311 Eaton Vance Corporation 364
6,919 Elan Corporation 6
4,987 Jefferies Group, Inc. 136
5,400 Morgan Keegan,Inc. 108
4,200 National Discount Brokers Group, Inc.<F1> 204
9,404 Raymond James Financial Corporation 318
8,940 The South Financial Group, Inc. 91
3,300 Southwest Securities Group, Inc. 93
4,400 Tucker Anthony Sutro Corporation 102
--------
2,080
--------
FOOD DISTRIBUTORS 0.4%
3,800 International Multifoods Corporation 64
2,500 Morrison Management Specialists, Inc. 84
2,800 Performance Food Group Company<F1> 113
3,209 United Natural Foods, Inc.<F1> 40
--------
301
--------
FOOD PRODUCTS 2.1%
3,597 American Italian Pasta Company<F1> 72
11,633 Chiquita Brands International, Inc. 23
6,639 Corn Products International,Inc. 167
8,540 Earthgrains Company 173
6,899 Fleming Cos., Inc. 98
7,600 The Great Atlantic & Pacific Tea Company, Inc. 76
6,000 Hain Celestial Group, Inc.<F1> 238
1,581 J & J Snack Foods Corporation<F1> 21
3,543 Michael Foods, Inc. 95
2,056 NashFinch Company 25
5,453 Ralcorp Holdings, Inc.<F1> 77
11,433 Smithfield Foods, Inc.<F1> 328
5,439 Whole Foods Market, Inc.<F1> 252
--------
1,645
--------
Number Market Value
of Shares (in thousands)
--------- --------------
FOREST PRODUCTS & PAPER 0.4%
7,079 Buckeye Technologies, Inc.<F1> $ 121
4,519 Caraustar Industries, Inc. 46
2,800 Chesapeake Corporation 55
2,667 Pope & Talbot, Inc. 42
2,813 Schweitzer-Mauduit International,Inc. 46
--------
310
--------
GAS - DISTRIBUTION 1.5%
6,433 Atmos Energy Corporation 149
1,934 Cascade Natural Gas Corporation 36
6,100 Energen Corporation 175
3,644 New Jersey Resources 146
5,167 Northwest Natural Gas Company 121
6,002 Piedmont Natural Gas Company 183
10,002 Southern Union Company<F1> 188
4,428 Southwest Energy Company 35
6,376 Southwest Gas Corporation 133
--------
1,166
--------
HEALTH CARE 4.0%
3,662 Adac Laboratories<F1> 48
1,544 Angelica Corporation 14
2,873 Cooper Companies, Inc. 103
12,011 Coventry Health Care, Inc.<F1> 219
1,761 Curative Health Services, Inc.<F1> 10
2,626 Datascope Corporation<F1> 91
2,790 Diagnostic Products Corporation 127
3,417 Hanger Orthopedic Group, Inc.<F1> 11
2,659 Hologic, Inc.<F1> 18
6,614 Idexx Laboratories, Inc.<F1> 159
6,112 Invacare Corporation 174
4,422 Laser Vision Centers, Inc.<F1> 18
4,321 Mentor Corporation 76
10,000 Mid Atlantic Medical Services, Inc.<F1> 170
2,750 Pediatrix Medical Group, Inc.<F1> 44
6,200 Province Healthcare Company<F1> 261
9,306 Renal Care Group, Inc.<F1> 219
6,344 ResMed, Inc.<F1> 162
5,354 Respironics, Inc.<F1> 105
4,787 Sierra Health Services, Inc.<F1> 26
4,370 Sola International, Inc.<F1> 19
1,661 Spacelabs Medical,Inc.<F1> 18
3,973 Sunrise Medical, Inc.<F1> 37
5,207 Theragenics Corporation<F1> 24
6,018 Universal Health Services<F1> 505
6,329 Varian Medical Systems, Inc. 309
2,160 Vital Signs, Inc. 67
3,061 Wesley Jessen Visioncare<F1> 118
--------
3,152
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SMALL CAP INDEX FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
HOME BUILDERS 1.6%
8,474 Champion Enterprises, Inc.<F1> $ 33
2,862 Coachmen Industries, Inc. 24
13,622 D.R. Horton, Inc. 252
5,800 Fleetwood Enterprises, Inc. 76
3,977 M.D.C. Holdings, Inc. 109
3,334 Monaco Coach Corporation<F1> 57
1,900 NVR, Inc.<F1> 196
8,371 Oakwood Homes Corporation 6
2,557 Ryland Group, Inc. 82
1,562 Skyline Corporation 34
5,196 Standard-Pacific Corporation 97
2,122 Thor Industries, Inc. 42
7,542 Toll Brothers, Inc.<F1> 245
3,939 Winnebago Industries 45
--------
1,298
--------
HOME FURNISHINGS 1.1%
2,187 Bassett Furniture Industries 28
7,756 Ethan Allen Interiors, Inc. 227
6,338 Fedders Corporation 27
7,012 Harman International 337
12,218 La-Z-Boy, Inc. 192
2,516 Pillowtex Corporation<F1> 4
3,119 Royal Appliance Manufacturing<F1> 18
--------
833
--------
HOTELS & LODGING 0.3%
5,332 Marcus Corporation 76
5,000 Pegasus Solutions Inc.<F1> 85
8,931 Prime Hospitality Corporation<F1> 85
--------
246
HOUSEHOLD PRODUCTS/WAREs 1.0%
3,800 Applica Inc. 19
2,429 Enesco Group, Inc. 16
5,700 Fossil, Inc.<F1> 74
5,344 John H. Harland Company 74
2,881 Libbey, Inc. 79
1,009 Nashua Corporation<F1> 6
1,255 National Presto Industries, Inc. 38
2,445 New England Business SVC, Inc. 42
3,633 Russ Berrie & Company, Inc. 82
2,300 Salton,Inc.<F1> 53
1,370 Swiss Army Brands, Inc.<F1> 8
5,710 The Scott's Company<F1> 204
2,269 Toro Company 79
2,493 USADetergents, Inc.<F1> 9
--------
783
--------
Number Market Value
of Shares (in thousands)
--------------- ---------------
INSURANCE 3.2%
2,303 Blanch (EW)Holdings, Inc. $ 44
4,037 Delphi Financial Group<F1> 149
6,771 Enhance Financial Services Group 79
13,830 Fidelity National Financial, Inc. 340
12,923 First American Financial Corporation 271
12,354 Fremont General Corporation 45
7,602 Gallagher, Arthur J. & Company 480
2,372 Hilb, Rogal, &Hamilton Company 94
7,747 Mutual Risk Management Ltd. 140
7,663 Radian Group, Inc. 543
1,700 RLICorporation 67
2,100 SCPIEHoldings Inc. 40
4,897 Selective Insurance Group 84
3,260 Trenwick Group, Inc. 64
3,037 Zenith National Insurance Corporation 69
--------
2,509
IRON/STEEL 0.4%
5,288 Birmingham Steel Corporation 13
2,713 Material SciencesCorporation<F1> 27
5,686 Reliance Steel & Aluminum Company 135
8,200 Steel Dynamics, Inc.<F1> 98
1,948 Steel Technologies, Inc. 11
2,867 WHXCorporation<F1> 6
--------
290
LEISURE & RECREATION/GAMING 0.5%
4,555 Arctic Cat, Inc. 58
1,820 Huffy Corporation 18
3,200 K2, Inc. 30
4,634 Pinnacle Entertainment, Inc.<F1> 106
4,757 Polaris Industries, Inc. 165
--------
377
MACHINERY & EQUIPMENT 2.5%
3,420 Astec Industries, Inc.<F1> 35
6,308 Baldor Electric Company 125
8,886 Cognex Corporation<F1> 298
3,100 Esterline Technologies Corporation<F1> 69
2,570 Flow International Corporation<F1> 32
2,672 Gardner Denver Machinery, Inc.<F1> 49
3,964 Gerber Scientific, Inc. 32
3,662 Graco, Inc. 132
4,377 Helix Technology Corporation 122
6,095 Idex Corporation 197
7,877 JLGIndustries, Inc. 110
2,147 Lindsay Manufacturing Company 45
4,557 Manitowoc Company 124
7,400 MilacronInc. 118
3,677 Regal Beloit Corporation 62
1,935 Robbins & Myers, Inc. 47
3,986 Specialty Equipment Cos., Inc.<F1> 121
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SMALL CAP INDEX FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
MACHINERY & EQUIPMENT 2.5% (CONT.)
5,204 SpeedFam - IPEC, Inc.<F1> $ 49
2,798 Thomas Industries, Inc. 59
5,600 Veritas DGC Inc.<F1> 168
--------
1,994
MANUFACTURING - CONSUMER GOODS 0.2%
7,220 Aptargroup, Inc. 149
--------
MEDICAL EQUIPMENT & SUPPLIES 0.9%
2,666 CONMEDCorporation<F1> 39
2,479 Osteotech, Inc.<F1> 14
2,700 PolyMedica Corporation<F1> 155
4,117 TechneCorporation<F1> 464
--------
672
METAL FABRICATION & HARDWARE 0.8%
2,510 A. M. Castle &Company 25
1,595 Amcast Industrial Corporation 16
2,200 Cleveland-Cliffs, Inc. 45
2,530 Commercial Metals Company 69
4,481 Intermet Corporation 34
1,790 Lawson Products 49
6,988 Mueller Industries, Inc.<F1> 163
3,894 Myers Industries, Inc. 52
2,569 Quanex Corporation 51
4,195 Valmont Industries 85
2,316 Wolverine Tube, Inc.<F1> 32
--------
621
METALS & MINING 0.5%
2,937 Brush Wellman, Inc. 60
5,153 Coeur d'Alene Mines Corporation<F1> 5
2,903 Commonwealth Industries, Inc. 17
3,649 RTIInternational Metals, Inc.<F1> 53
7,945 Stillwater Mining Company<F1> 230
--------
365
MISCELLANEOUS MANUFACTURING 1.8%
4,131 A.O.Smith Corporation 58
3,047 A. T. Cross Company Class A 15
3,317 Barnes Group, Inc. 64
4,244 Clarcor, Inc. 81
2,100 Deltic Timber Corporation 41
5,336 Griffon Corporation<F1> 41
3,200 JAKKSPacific, Inc.<F1> 28
2,784 Lydall, Inc. 29
9,071 Mascotech, Inc.<F1> 151
3,300 Meade Instruments Corporation<F1> 60
3,400 Oshkosh Truck Corporation 140
6,211 Roper Industries, Inc. 217
3,197 Scott Technologies, Inc.<F1> 74
Number Market Value
of Shares (in thousands)
---------- --------------
MISCELLANEOUS MANUFACTURING 1.8% (CONT.)
2,560 SPSTechnologies, Inc.<F1> $ 132
2,290 Standex International Corporation 42
4,731 Sturm, Ruger, & Company, Inc. 40
2,547 Thomas Nelson, Inc. 17
7,671 Tredegar Corporation 146
5,200 Visual Networks,Inc.<F1> 19
--------
1,395
OFFICE EQUIPMENT & SERVICES 0.5%
9,356 Interface, Inc. 85
6,456 Zebra Technologies Corporation, ClassA<F1> 283
--------
368
OIL -EXPLORATION, PRODUCTION & SERVICES 4.0%
2,414 Atwood Oceanics<F1> 81
6,594 Barrettt Resources Corporation<F1> 240
5,877 Cabot Oil & Gas Corporation<F1> 115
14,063 Cross Timbers Oil Company 265
3,536 Dril-Quip<F1> 117
9,843 Friede Goldman Halter, Inc.<F1> 57
3,329 HSResources, Inc.<F1> 104
9,002 Input/Output, Inc.<F1> 76
8,781 Newfield Exploration Company<F1> 331
3,600 Nuevo Energy Company<F1> 65
4,137 Oceaneering International, Inc.<F1> 58
3,500 Patina Oil & Gas Corporation 61
3,122 Plains Resources, Inc.<F1> 60
8,126 Pogo Producing Company 203
13,479 Pride International, Inc.<F1> 341
3,737 Remington Oil & Gas Corporation<F1> 34
3,132 Seacor Smit,Inc.<F1> 131
4,900 Seitel, Inc.<F1> 74
4,560 St. Mary Land & Exploration Company 107
3,765 Stone Energy Corporation<F1> 193
4,500 Swift Energy Company<F1> 146
12,799 Vintage Petroleum, Inc. 270
2,780 WD-40 Company 61
--------
3,190
PHARMACEUTICALS 7.3%
5,092 Advance Paradigm, Inc.<F1> 249
9,564 Alliance Pharmaceutical Corporation<F1> 135
8,218 Alpharma, Inc. 319
7,126 Barr Laboratories, Inc.<F1> 450
7,047 Bindley Western Industries, Inc. 253
4,064 Biomatrix, Inc.<F1> 78
8,361 Cephalon, Inc.<F1> 448
10,944 CORTherapeutics, Inc.<F1> 618
4,427 Cygnus, Inc.<F1> 40
9,071 Dura Pharmaceuticals, Inc.<F1> 312
4,601 Immune Response Corporation<F1> 28
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SMALL CAP INDEX FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
PHARMACEUTICALS 7.3% (CONT.)
15,271 King Pharmaceuticals, Inc.<F1> $ 684
6,094 Medicis Pharmaceutical<F1> 449
3,088 Natures Sunshine Products, Inc. 22
11,912 NBTY, Inc.<F1> 77
4,420 Noven Pharmaceuticals, Inc.<F1> 197
4,642 Priority Healthcare Corporation ClassB<F1> 250
4,958 Syncor International Corporation<F1> 127
10,820 Vertex Pharmaceuticals, Inc.<F1> 1,007
--------
5,743
--------
PRINTING & Publishing 0.1%
6,579 Bowne &Company, Inc. 55
2,828 Consolidated Graphics, Inc.<F1> 30
--------
85
--------
RESTAURANTS 1.7%
4,986 Applebee's International, Inc. 151
5,420 CEC Entertainment, Inc.<F1> 173
6,372 The Cheesecake Factory, Inc.<F1> 282
5,136 Consolidated Products, Inc.<F1> 39
3,586 IHOPCorporation<F1> 76
7,553 Jack in the Box, Inc.<F1> 185
4,440 Landry's Seafood Restaurants, Inc.<F1> 36
4,006 Luby's, Inc. 24
2,103 Panera Bread Company<F1> 43
12,376 Ruby Tuesday, Inc. 168
6,445 Ryan's Family Steak Houses, Inc.<F1> 54
3,286 Sonic Corporation<F1> 120
2,326 Taco Cabana, Inc. Class A<F1> 20
--------
1,371
--------
RETAIL STORES 4.2%
6,429 99 Cents Only Stores<F1> 144
5,194 Ames Department Stores, Inc.<F1> 20
5,835 Ann Taylor Stores Corporation<F1> 175
6,427 The Bombay Company, Inc.<F1> 16
3,216 Books-A-Million, Inc.<F1> 8
2,281 Building Materials Holding Corporation<F1> 20
9,000 Burlington Coat Factory Warehouse Corporation 142
9,370 Casey's General Stores, Inc. 117
4,491 Cash America Investments, Inc. 23
4,684 Cato Corporation 56
3,600 Chico's FAS, Inc.<F1> 117
10,450 Copart, Inc.<F1> 157
3,638 Cost Plus, Inc.<F1> 102
1,001 Damark International, Inc. - Class A<F1> 13
2,953 Discount Auto Parts<F1> 21
3,551 Dress Barn, Inc.<F1> 89
2,600 Factory 2-U Stores, Inc.<F1> 83
3,702 Footstar, Inc.<F1> 133
5,919 Goody's Family Clothing, Inc.<F1> 21
Number Market Value
of Shares (in thousands)
--------- --------------
RETAIL STORES 4.2% (CONT.)
2,249 Gottschalks, Inc.<F1> $ 11
3,779 Group 1 Automotive, Inc.<F1> 38
4,322 Gymboree Corporation<F1> 39
3,380 Hancock Fabrics, Inc. 15
4,088 Hughes Supply, Inc. 77
2,502 J.Baker, Inc. 10
3,226 Jo-Ann Stores, Inc.<F1> 21
1,605 Lillian Vernon Corporation 15
8,041 Linens 'N Things, Inc.<F1> 247
4,665 Mayor's Jewelers, Inc.<F1> 17
8,009 The Men's Wearhouse, Inc.<F1> 234
6,933 Michaels Stores, Inc.<F1> 169
5,982 Pacific Sunwear Of California, Inc.<F1> 123
19,537 Pier 1 Imports, Inc. 259
7,344 Regis Corporation 111
3,600 SchoolSpecialty, Inc.<F1> 55
5,366 Shopko Stores, Inc.<F1> 34
5,697 The Sports Authority, Inc.<F1> 10
7,848 Stein Mart, Inc.<F1> 122
8,170 Stride Rite Corporation 44
6,797 Zale Corporation<F1> 230
--------
3,338
--------
SECURITY SERVICES 0.6%
3,888 Kroll-O'Gara Company Ltd.<F1> 23
8,118 RSASecurity, Inc.<F1> 471
--------
494
--------
SEMICONDUCTORS 3.5%
8,800 Alliance Semiconductor Corporation<F1> 176
8,846 Alpha Industries, Inc.<F1> 353
4,272 AXT, Inc.<F1> 165
3,500 Cohu, Inc. 55
12,424 Dallas Semiconductor Corporation 492
3,488 Electroglas, Inc.<F1> 49
8,700 ESSTechnology, Inc.<F1> 135
6,479 General Semiconductor, Inc.<F1> 74
12,724 International Rectifier Corporation<F1> 568
4,900 Pericom Semiconductor Corporation<F1> 130
4,788 Pioneer-Standard Electronics 66
6,980 Silicon Valley Group, Inc.<F1> 230
3,700 TelCom Semiconductor, Inc.<F1> 52
4,395 Three-Five Systems, Inc.<F1> 152
3,737 Ultratech Stepper, Inc.<F1> 88
--------
2,785
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SMALL CAP INDEX FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- -------------
TELECOMMUNICATIONS 1.7%
7,646 Adaptive Broadband Corporation<F1> $ 123
4,867 Allen Telecom, Inc.<F1> 91
10,603 Aspect Telecommunications Corporation<F1> 175
4,600 Aware Inc.<F1> 142
8,933 General Communications, Inc. ClassA<F1> 70
3,833 Network Equipment Technologies, Inc.<F1> 36
15,680 P-Com, Inc.<F1> 88
10,026 Plantronics, Inc.<F1> 457
4,042 Symmetricom, Inc.<F1> 52
15,891 Talk.Com, Inc.<F1> 49
4,200 ViaSat, Inc.<F1> 92
--------
1,375
--------
TELECOMMUNICATIONS - SERVICES & EQUIPMENT 1.4%
6,000 Aeroflex Inc.<F1> 357
2,400 Davox Corporation<F1> 23
14,433 DMC Stratex Networks, Inc.<F1> 334
7,300 Pac-West Telecomm, Inc.<F1> 63
5,186 Proxim, Inc.<F1> 314
--------
1,091
--------
TEXTILE PRODUCTS 0.2%
2,056 The Dixie Group Inc. 7
4,196 G & K Services, Inc.Class A 116
3,889 Guilford Mills, Inc. 6
--------
129
--------
TOBACCO 0.0%
7,860 DIMON, Inc. 24
--------
TRANSPORTATION & SHIPPING 2.2%
6,537 American Freightways Corporation<F1> 105
3,480 Arkansas Best Corporation<F1> 56
10,516 Expeditors International Washington, Inc. 546
4,400 Forward Air Corporation<F1> 181
6,505 Fritz Companies, Inc.<F1> 53
2,873 Frozen Foods Express Industries 6
5,264 Heartland Express Inc.<F1> 91
4,295 Kirby Corporation<F1> 79
1,769 Landstar System, Inc.<F1> 84
2,225 M.S.Carriers, Inc.<F1> 35
3,749 Offshore Logistics, Inc.<F1> 65
1,096 RailAmerica, Inc.<F1> 8
4,000 Roadway Express, Inc. 82
10,177 Rollins Truck Leasing Corporation 53
4,680 U.S. Freightways Corporation 121
8,407 Werner Enterprises, Inc. 118
4,418 Yellow Corporation<F1> 80
--------
1,763
--------
Number Market Value
of Shares (in thousands)
--------- --------------
UTILITIES - GAS & ELECTRIC 2.0%
9,800 Avista Corporation $ 220
1,256 Bangor Hydro-Electric Company 31
3,224 Cal Dive International, Inc.<F1> 160
2,063 Central Vermont Public Service Corporation 21
3,000 CH Energy Group, Inc. 118
2,800 CUNOInc.<F1> 71
995 Green Mountain Power Corporation 8
3,200 Laclede Gas Company 70
8,400 Louis Dreyfus Natural Gas Corporation<F1> 269
2,500 NUICorporation 78
7,100 RGSEnergy Group Inc. 209
4,900 UGICorporation 114
2,882 UILHoldings Corporation 135
6,900 UniSource Energy Corporation 103
--------
1,607
--------
WATER UTILITY 0.3%
1,576 American States Water Company 49
8,253 Philadelphia Suburban Corporation 193
--------
242
--------
WHOLESALE DISTRIBUTION 0.6%
9,429 Brightpoint, Inc.<F1> 63
8,188 Insight Enterprises, Inc.<F1> 266
5,756 Owens & Minor,Inc. 87
5,156 Watsco, Inc. 49
--------
465
Total Common Stocks (Cost $68,772) 77,027
--------
Principal
Amount
(in thousands)
--------------
SHORT-TERM INVESTMENT 2.6%
COMMERCIAL PAPER 2.6%
Lucent Technologies, Inc.
$2,075 6.65%, 11/01/00 2,075
--------
Total Short-Term Investment (Cost $2,075) 2,075
--------
Total Investments (Cost $70,847) 100.1% 79,102
Liabilities, less Other Assets (0.1)% (97)
--------
TOTAL NET ASSETS 100% $79,005
--------
<F1> Non-income producing
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SMALL CAP CORE EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
COMMON STOCKS 86.0%
ADVERTISING 0.2%
9,100 True North Communications Inc. $ 343
--------
AIRLINES 0.8%
32,400 Atlantic Coast Airlines
Holdings, Inc.<F1> 1,158
--------
BANKING 6.3%
31,250 Commerce Bancorp, Inc. NJ 1,892
73,022 Cullen/Frost Bankers, Inc. 2,433
96,775 National Commerce Bancorporation 2,056
37,200 New York Community Bancorp, Inc.<F1> 1,042
13,000 Silicon Valley Bancshares<F1> 601
59,600 Webster Financial Corporation 1,453
--------
9,477
--------
BEVERAGES 1.3%
38,467 Constellation Brands, Inc.<F1> 1,875
--------
BIOTECHNOLOGY 2.0%
4,100 Alexion Pharmaceuticals, Inc.<F1> 424
9,800 Intermune Pharmaceuticals, Inc.<F1> 490
37,100 Lexicon Genetics Inc.<F1> 751
4,600 Sangamo BioSciences, Inc.<F1> 120
58,600 Texas Biotechnology Corporation<F1> 865
10,400 Tularik, Inc.<F1> 330
--------
2,980
--------
BROADCASTING 0.5%
100,100 Radio One, Inc.<F1> 802
--------
BUSINESS SERVICES 4.1%
90,000 Acxiom Corporation<F1> 3,623
54,642 Iron Mountain, Inc.<F1> 1,847
104,800 Source Information Management Co.<F1> 576
--------
6,046
CAPACITORS 0.2%
12,200 KEMETCorporation<F1> 340
--------
CIRCUIT BOARDS 1.1%
115,600 Viasystems Group, Inc.<F1> 1,640
--------
COMMERCIAL SERVICES 1.6%
81,687 Avis Rent a Car, Inc.<F1> 2,440
--------
COMMUNICATIONS 0.2%
37,000 Cumulus Media, Inc., Class A<F1> 231
--------
COMPUTER EQUIPMENT 0.3%
59,300 Read-Rite Corporation<F1> 441
--------
Number Market Value
of Shares (in thousands)
--------- --------------
COMPUTER SERVICES 5.7%
19,100 Affiliated Computer Services, Inc.<F1> $ 1,064
42,500 Digitas, Inc.<F1> 507
8,000 Inforte Corporation<F1> 245
131,800 SunGard Data Systems, Inc.<F1> 6,738
--------
8,554
COMPUTER SOFTWARE 3.3%
14,966 Aspen Technology, Inc.<F1> 618
71,400 Dendrite International,Inc.<F1> 1,553
53,483 Quadramed Corporation<F1> 60
7,000 RSASecurity Inc.<F1> 406
46,400 SPSS, Inc.<F1> 1,044
51,544 Verity, Inc.<F1> 1,211
--------
4,892
CONSTRUCTION 0.7%
27,300 Trex Company, Inc.<F1> 1,020
--------
DATA PROCESSING 0.3%
9,900 ChoicePoint Inc.<F1> 507
--------
ELECTRICAL & ELECTRONIC 4.2%
12,025 Artesyn Technologies, Inc.<F1> 488
54,200 Benchmark Electronics, Inc.<F1> 2,181
5,000 C&D Technologies, Inc. 296
15,200 Camtek Limited<F1> 122
21,500 Littelfuse, Inc.<F1> 624
12,000 Methode Electronics, Inc. 452
68,660 Photronics, Inc.<F1> 1,549
16,106 PRIAutomation, Inc.<F1> 364
4,500 Vicor Corporation<F1> 243
--------
6,319
--------
ELECTRONIC COMMERCE 0.5%
30,200 PurchasePro.com, Inc.<F1> 815
--------
ENTERTAINMENT 1.4%
20,600 Anchor Gaming<F1> 1,750
89,800 Cinar Corporation<F1> 280
--------
2,030
--------
FINANCIAL SERVICES 0.5%
30,200 AmeriCredit Corporation<F1> 812
--------
FOOD DISTRIBUTORS 2.6%
46,300 Dean Foods Company 1,481
59,254 Performance Food Group Company<F1> 2,400
--------
3,881
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SMALL CAP CORE EQUITY FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
FOOD PRODUCTS & SERVICES 2.6%
56,990 Hain Celestial Group, Inc.<F1> $ 2,262
84,600 Universal Foods Corporation 1,671
--------
3,933
GAS DISTRIBUTION 0.7%
19,700 Atmos Energy Corporation 456
10,400 Equitable Resources, Inc. 603
--------
1,059
--------
HEALTH CARE 1.4%
226,800 Serologicals Corporation<F1> 1,531
7,200 Universal Health Services, Inc.,Class B<F1> 604
--------
2,135
INSTRUMENTATION 1.6%
51,552 Mettler-Toledo International, Inc.<F1> 2,407
--------
INSURANCE 3.5%
4,100 Everest Re Group, Limited 240
19,300 Fidelity National Financial, Inc. 474
19,900 First American Corporation 417
45,600 Gallagher, Arthur J. & Company 2,879
32,200 Harleysville Group Inc. 743
1 Protective Life Corporation 0
7,600 RenaissanceRe Holdings Ltd. 551
--------
5,304
--------
LASER SYSTEMS 0.2%
9,300 Coherent, Inc.<F1> 324
--------
MACHINERY & EQUIPMENT 2.6%
32,613 Astec Industries, Inc.<F1> 336
155,100 DT Industries, Inc.<F1><F2>
(Acquired 8/29/97-12/17/99, Cost $2,362) 1,532
55,555 GSI Lumonics, Inc.<F1> 701
62,800 Kaydon Corporation 1,378
--------
3,947
--------
MANUFACTURING - CONSUMER GOODS 1.0%
98,100 Rayovac Corporation<F1> 1,447
--------
MANUFACTURING - STEEL 1.2%
25,550 Allegheny Technologies Inc. 517
22,300 Maverick Tube Corporation<F1> 347
11,600 The Shaw Group, Inc.<F1> 946
--------
1,810
--------
MARKETING 0.4%
16,000 Catalina Marketing Corporation<F1> 628
--------
Number Market Value
of Shares (in thousands)
--------- --------------
MEDICAL EQUIPMENT & SUPPLIES 2.2%
38,725 DENTSPLYInternational, Inc. $ 1,343
109,900 Edwards Lifesciences Corporation<F1> 1,477
8,800 PolyMedica Corporation<F1> 506
--------
3,326
--------
METALS & MINING 0.3%
44,902 Century Aluminum Company 393
--------
NETWORKING PRODUCTS 2.6%
8,600 Aeroflex Inc.<F1> 512
92,489 Computer Network Tech Corporation<F1> 2,811
27,500 DMCStratex Networks, Inc.<F1> 636
--------
3,959
--------
OFFICE EQUIPMENT & SERVICES 3.1%
28,000 Black BOXCorporation<F1> 1,845
9,900 CDWComputer Centers, Inc.<F1> 638
47,888 Zebra Technologies Corp., ClassA<F1> 2,098
--------
4,581
--------
OIL - EXPLORATION, PRODUCTION & SERVICES 5.4%
14,900 Cal Dive International, Inc.<F1> 741
7,400 Dril-Quip, Inc.<F1> 244
55,500 National-Oilwell, Inc.<F1> 1,623
139,833 Ocean Energy,Inc.<F1> 1,940
25,200 Pogo Producing Company 630
36,900 Pride International, Inc.<F1> 934
14,800 Universal Compression Holdings, Inc.<F1> 427
36,700 Valero Energy Corporation 1,214
26,700 W-H Energy Services, Inc.<F1> 371
--------
8,124
--------
PHARMACEUTICALS 1.9%
9,400 Barr Labortatories, Inc.<F1> 593
6,200 Cephalon, Inc.<F1> 333
4,800 CORTherapeutics, Inc.<F1> 271
27,055 Shire Pharmaceuticals Group PLCADR<F1> 1,701
--------
2,898
--------
PHARMACY SERVICES 1.5%
129,600 Omnicare, Inc. 2,268
--------
PRINTING 0.2%
15,100 Banta Corporation 348
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SMALL CAP CORE EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
REAL ESTATE INVESTMENT TRUSTS (REITs) 0.7%
38,000 Plum Creek Timber, Inc. $ 986
--------
RESEARCH AND DEVELOPMENT 0.7%
18,200 Albany Molecular Research, Inc.<F1> 1,058
--------
RESTAURANTS 0.9%
33,600 Brinker International, Inc.<F1> 1,319
--------
retail stores 5.1%
73,200 Abercrombie & Fitch Company<F1> 1,725
7,900 AnnTaylor Stores Corporation 237
71,300 Family Dollar Stores, Inc. 1,386
48,500 The Men's Wearhouse, Inc.<F1> 1,418
45,200 Rent-A-Center, Inc.<F1> 1,319
43,200 Ultimate Electronics, Inc. 1,561
--------
7,646
--------
SCIENTIFIC INSTRUMENTS 0.4%
12,300 Millipore Corporation 645
--------
SEMICONDUCTORS 3.3%
7,400 Exar Corporation<F1> 331
22,500 Integrated Device Technology, Inc.<F1> 1,267
51,400 IXYSCorporation 1,297
29,900 Pericom Semiconductor Corporation<F1> 792
60,300 Power Integrations, Inc.<F1> 807
11,400 SIPEX Corporation<F1> 449
--------
4,943
--------
TELECOMMUNICATION EQUIPMENT 0.7%
2,700 Anaren Microwave, Inc.<F1> 281
23,600 REMEC, Inc.<F1> 703
--------
984
--------
TELECOMMUNICATIONS 2.2%
15,200 AirGate PCS, Inc.<F1> 586
19,700 Alamosa PCSHoldings, Inc.<F1> 298
128,100 Asia Global Crossing Limited<F1> 897
7,000 Exfo Electro-Optical Engineering,Inc.<F1> 267
34,400 Tekelec<F1> 1,266
--------
3,314
--------
TRANSPORTATION & SHIPPING 1.2%
38,658 EGL, Inc.<F1> 1,102
29,300 Knightsbridge Tankers, Limited 632
--------
1,734
UTILITIES - GAS & ELECTRIC 0.6%
35,600 Kansas City Power & Light Company 857
--------
Total Common Stocks (Cost $105,526) 128,980
--------
Principal
Amount Market Value
(in thousands) (in thousands)
-------------- --------------
SHORT-TERM INVESTMENTS 13.5%
COMMERCIAL PAPER 13.5%
$ 5,585 Gillette Company, 6.54%, 11/01/00 $ 5,585
14,614 Lucent Technologies, Inc., 6.65%, 11/01/00 14,614
--------
Total Short-Term Investments (Cost $20,199) 20,199
--------
Total Investments (Cost $125,725) 99.5% 149,179
--------
Other Assets, less Liabilities 0.5% 749
--------
TOTAL NET ASSETS 100.0% $149,928
========
<F1>Non-income producing
<F2>Fair valued & unregistered security
ADR- American Depository Receipt
PLC- Public LimitedCompany
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SCIENCE & TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
COMMON STOCKS 97.1%
Aerospace 0.6%
11,000 General Dynamics Corporation $ 787
--------
COMPUTER PERIPHERALS 5.7%
50,000 EMCCorporation<F1> 4,453
23,000 SanDisk Corporation<F1> 1,236
95,000 Silicon Storage Technology, Inc.<F1> 2,161
--------
7,850
--------
COMPUTER PRODUCTS & SERVICES 6.1%
21,000 Ariba, Inc.<F1> 2,654
16,900 Brocade Communications Systems, Inc.<F1> 3,843
30,000 Computer Sciences Corporation<F1> 1,890
--------
8,387
--------
COMPUTERS 3.6%
43,000 Dell Computer Corporation<F1> 1,268
33,000 Sun Microsystems, Inc.<F1> 3,659
--------
4,927
--------
Computer Software 22.6%
40,000 Adobe Systems Inc. 3,042
29,400 BEASystems, Inc.<F1> 2,109
124,000 BroadVision, Inc.<F1> 3,689
18,000 Check Point Software Technologies Ltd.<F1> 2,851
16,400 i2 Technologies, Inc.<F1> 2,788
39,900 Microsoft Corporation<F1> 2,749
21,000 NuanceCommunications Inc.<F1> 1,811
20,000 OTGSoftware, Inc.<F1> 630
29,000 Rational Software Corporation<F1> 1,731
37,000 Siebel Systems, Inc.<F1> 3,883
23,500 VERITASSoftware Corporation<F1> 3,314
15,000 Versata, Inc.<F1> 248
24,000 webMethods, Inc.<F1> 2,133
--------
30,978
--------
DRUGS 6.1%
15,100 American Home Products Corporation 959
21,000 Bristol-Myers Squibb Company 1,280
8,000 Genentech, Inc.<F1> 660
31,800 MedImmune,Inc.<F1> 2,079
18,000 Millennium Pharmaceuticals, Inc.<F1> 1,306
22,600 Schering-Plough Corporation 1,168
14,600 Watson Pharmaceuticals, Inc.<F1> 913
--------
8,365
--------
ELECTRONICS - SEMICONDUCTOR EQUIPMENT 2.9%
40,900 Applied Materials, Inc.<F1> 2,173
77,000 Asyst Technologies, Inc.<F1> 1,155
20,000 KLA-Tencor Corporation<F1> 676
--------
4,004
--------
Number Market Value
of Shares (in thousands)
--------- --------------
ELECTRONICS - SEMICONDUCTORS 23.5%
28,000 Analog Devices, Inc.<F1> $ 1,820
20,000 Applied Micro Circuits Corporation<F1> 1,529
15,000 AXT,Inc.<F1> 577
6,000 Broadcom Corporation<F1> 1,334
18,000 Cree, Inc.<F1> 1,786
76,000 EMCORECorporation<F1> 3,106
24,000 Exar Corporation<F1> 1,073
44,900 Intel Corporation 2,039
14,000 JDS Uniphase Corporation<F1> 1,140
37,700 Micron Technology, Inc. 1,310
22,000 PMC-Sierra, Inc.<F1> 3,729
17,500 SDL, Inc.<F1> 4,537
54,800 Texas Instruments Inc. 2,689
18,000 Virata Corporation<F1> 349
48,900 Vitesse Semiconductor Corporation<F1> 3,420
25,000 Xilinx, Inc.<F1> 1,811
--------
32,249
--------
HEALTH TECHNOLOGY 3.8%
22,000 Abgenix, Inc.<F1> 1,735
12,000 ALZACorporation<F1> 971
18,500 Guidant Corporation 979
8,200 PECorporation - Celera Genomics Group<F1> 554
39,500 Serono SA, ADR<F1> 894
--------
5,133
--------
MEDICAL PRODUCTS & SERVICES 3.2%
26,500 Amgen Inc.<F1> 1,535
21,900 Medtronic, Inc. 1,189
38,500 Pfizer Inc. 1,663
4,387
MULTIMEDIA 0.4%
8,000 Time Warner Inc. 607
--------
NETWORKING PRODUCTS 6.6%
65,600 Cisco Systems, Inc.<F1> 3,534
12,000 Extreme Networks, Inc.<F1> 995
17,100 Juniper Networks, Inc.<F1> 3,335
11,500 Redback Networks Inc.<F1> 1,224
--------
9,088
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SCIENCE & TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
TELECOMMUNICATIONS & EQUIPMENT 12.0%
2,600 Avanex Corporation<F1> $ 264
33,800 Comverse Technology, Inc.<F1> 3,777
31,500 Corning Inc.<F1> 2,410
32,100 Corvis Corporation<F1> 2,107
28,000 New Focus, Inc.<F1> 1,778
15,400 QUALCOMM Inc.<F1> 1,003
10,000 RF Micro Devices, Inc.<F1> 199
15,000 Software.com, Inc.<F1> 2,235
25,000 SpeechWorks International Inc.<F1> 2,081
27,000 WorldCom, Inc.<F1> 641
--------
16,495
--------
Total Common Stocks (Cost $108,390) 133,257
--------
Number
of Shares
(in thousands)
---------------
SHORT-TERM INVESTMENTS 6.0%
INVESTMENT COMPANY 3.8%
5,262 Short-Term Investments Co.
Gov Agency Portfolio 5,262
--------
Principal Amount
(in thousands)
----------------
Variable Rate Demand Notes 2.2%
$3,000 American Family Financial Services, Inc. 3,000
--------
Total Short-Term Investments (Cost $8,262) 8,262
--------
Total Investments (Cost $116,652) 103.1% 141,519
--------
Liabilities, less Other Assets (3.1)% (4,343)
--------
TOTAL NET ASSETS 100.0% $137,176
========
<F1>Non-income producing
ADR - American Depository Receipt
Number Market Value
of Contracts (in thousands)
--------- --------------
SCHEDULE OF PUT OPTIONS WRITTEN
50 Ariba, Inc., expires 11/18/00,
exercise price $140 $ 102
50 Broadcom Corporation,
expires 11/18/00,
exercise price $220 72
25 Philadelphia Semiconductor Index,
expires 11/18/00, exercise price $890 384
--------
Total Put Options Written
(Premiums received $215) 558
--------
Schedule of Call Options Written
70 MedImmune, Inc., expires 11/18/00,
exercise price $65 31
--------
Total Call Options Written
(Premiums received $38) 31
--------
Total Options Written
(Premiums received $253) $ 589
========
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MICROCAP FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- -------------
COMMON STOCKS 94.0%
AEROSPACE & Aircraft 0.7%
181,200 Kaman Corporation $ 2,627
--------
AIR TRANSPORTATION 0.4%
69,200 Frontier Airlines, Inc.<F1> 1,626
--------
BANKING 3.8%
139,300 BankUnited Financial Corporation<F1> 1,080
150,800 Boston Private Financial Holdings, Inc. 2,696
114,450 Columbia Banking System, Inc.<F1> 1,602
68,100 East West Bancorp, Inc. 1,290
92,700 Greater Bay Bancorp<F1> 3,019
129,800 Sterling Bancshares, Inc. 2,231
53,100 UCBH Holdings, Inc. 1,932
--------
13,850
--------
BATTERIES 0.4%
101,800 Rayovac Corporation 1,502
--------
BIOTECHNOLOGY 1.3%
52,300 Corixa Corporation<F1> 2,342
25,000 Informax, Inc.<F1> 695
33,100 Large Scale Biology Corporation<F1> 614
80,000 NeoRx Corporation<F1> 1,300
--------
4,951
--------
BROADCASTING - RADIO & TELEVISION 0.6%
131,850 Saga Communications, Inc.<F1> 2,176
--------
BUSINESS SERVICES 1.4%
246,500 Exult, Inc.<F1> 3,698
57,400 Hall Kinton & Associates, Inc.<F1> 1,518
--------
5,216
COMPUTER SOFTWARE & SERVICES 10.1%
255,500 Activision, Inc.<F1> 3,529
229,000 ClickSoftware Technologies Ltd.<F1> 701
126,000 Datalink Corporation<F1> 1,512
90,150 Digital Lighthouse Corporation<F1> 269
228,300 EXE Technologies, Inc.<F1> 4,081
275,500 General Magic, Inc.<F1> 1,111
129,400 Interact Commerce Corporation<F1> 1,189
92,400 Interplay Entertainment Corporation<F1> 335
88,400 Level 8 Systems, Inc.<F1> 851
467,300 ProSoft Training.Com<F1> 3,275
12,400 Resonate, Inc.<F1> 525
43,500 Speechworks International, Inc.<F1> 3,621
160,800 Take-Two Interactive Software, Inc.<F1> 2,000
449,300 3DO Company<F1> 1,376
320,700 THQ, Inc.<F1> 6,574
2,785 Tridium, Inc.<F1><F2>
(Acquired 4/30/99 and 8/16/99,
Cost $1,524) 1,524
158,100 ValiCert, Inc.<F1> 2,737
551,100 Zamba Corporation<F1> 1,963
--------
37,173
--------
Number Market Value
of Shares (in thousands)
--------- --------------
Distribution 0.8%
173,650 Pomeroy Computer Resources,Inc.<F1> $ 3,039
--------
DRUGS 2.0%
92,900 CIMA Labs, Inc.<F1> 5,110
48,900 NPS Pharmaceuticals, Inc.<F1> 2,097
--------
7,207
--------
ELECTRONICS 9.6%
203,925 Aeroflex, Inc.<F1> 12,134
107,100 DuraSwitch Industries, Inc.<F1> 1,064
415,178 Genroco, Inc.<F1>
<F2> (Acquired 12/28/99, Cost $1,661) 772
103,794 Genroco, Inc. warrants, 12/28/02<F1><F2>
(Acquired 1/26/00, Cost $0) 0
68,200 II - VI, Inc.<F1> 1,411
9,100 Interlink Electronics, Inc.<F1> 204
244,400 Lexar Media, Inc.<F1> 1,818
105,800 Merix Corporation<F1> 4,941
155,500 Planar Systems, Inc.<F1> 2,644
601,600 Read-Rite Corporation<F1> 4,474
217,600 Stamford International, Inc.<F1><F2>
(Acquired 1/12/00 - 7/19/00 Cost $3,198) 789
66,400 TTM Technologies, Inc.<F1> 1,328
96,149 Three Five Systems, Inc.<F1> 3,317
830,356 VideoPropulsion, Inc.<F1>
<F2> (Acquired 7/10/00,
Cost $291) 291
--------
35,187
--------
ENTERTAINMENT & LEISURE 2.0%
200,000 Championship Auto Racing Teams, Inc.<F1> 4,975
256,300 JAKKS Pacific, Inc.<F1> 2,259
--------
7,234
FOOD, BEVERAGES & TOBACCO 0.7%
65,500 Performance Food Group Company<F1> 2,652
--------
HEALTH CARE SERVICES & SUPPLIES 1.4%
273,700 Data Critical Corporation<F1> 1,403
51,000 PolyMedic Corporation<F1> 2,933
75,700 Quadramed Corporation<F1> 86
1,200 Rightchoice Managed Care, Inc.<F1> 33
24,900 Triad Hospitals, Inc.<F1> 691
--------
5,146
--------
INSURANCE 2.1%
110,200 Annuity and Life Re Holdings, Ltd. 3,037
13,700 Hilb, Rogal and Hamilton Company 543
124,300 Presidential Life Corporation 1,810
173,400 State Auto Financial Corporation 2,341
--------
7,731
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MICROCAP FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
Number Market Value
of Shares (in thousands)
--------- ------------
INTERNET PRODUCTS & SERVICES 3.9%
74,900 eMerge Interactive, Inc.<F1> $ 838
44,000 Internet Commerce Corporation - Class A<F1> 223
114,702 Internet Commerce Corporation -
Non Registered<F1><F2>
(Acquired 12/2/99, Cost $2,073) 485
475,800 PurchasePro.com, Inc.<F1> 12,847
--------
14,393
--------
MANUFACTURING - INDUSTRIAL 1.2%
100,100 Century Aluminum Company 876
86,700 CIRCOR International, Inc. 959
132,400 DT Industries, Inc.<F1>
<F2> (Acquired 3/06/00 - 8/08/00
Cost $1,629) 1,307
--------
251,800 Fargo Electronics, Inc.<F1> 692
26,200 Medis Technologies Ltd.<F1> 500
--------
4,334
--------
MEDICAL INSTRUMENTS 4.2%
168,300 Kensey Nash Corporation<F1> 1,935
487,100 Osteotech, Inc.<F1> 2,679
257,850 Physiometrix, Inc.<F1> 6,108
303,100 Packard BioScience Company<F1> 4,887
--------
15,609
--------
NETWORKING 0.2%
51,400 Tricord Systems, Inc.<F1> 848
--------
OIL & GAS - DOMESTIC 5.8%
351,300 Cabot Oil & Gas Corporation 6,894
151,800 Chieftain International, Inc.<F1> 3,074
167,300 HS Resources, Inc.<F1> 5,207
130,400 Louis Dreyfus Natural Gas Corp.<F1> 4,181
104,000 Mallon Resources Corporation<F1> 579
303,000 Range Resources Corporation 1,326
--------
21,261
--------
OIL & GAS SERVICES 9.1%
250,800 CE Franklin Ltd.<F1> 1,223
39,600 Cal Dive International, Inc.<F1> 1,970
323,500 Horizon Offshore, Inc.<F1> 4,448
283,400 Key Energy Services, Inc.<F1> 2,551
160,175 Maverick Tube Corporation<F1> 2,493
96,100 NS Group, Inc.<F1> 830
370,600 Oceaneering International, Inc.<F1> 5,212
362,400 Superior Energy Services, Inc.<F1> 3,262
460,400 Unit Corporation<F1> 6,129
265,600 UTI Energy Corporation<F1> 5,329
--------
33,447
--------
PRIVATE CORRECTION FACILITIES 0.3%
183,500 Cornell Corrections, Inc.<F1> 918
--------
Number Market Value
of Shares (in thousands)
--------- --------------
REAL ESTATE INVESTMENT TRUSTS (REITs) 1.7%
24,100 Alexandria Real Estate Equities, Inc. $ 816
44,000 Bedford Property Investors, Inc. 866
28,900 CBL & Associates Properties, Inc. 668
23,100 Chelsea GCA Realty, Inc. 745
40,100 EastGroup Properties, Inc. 817
43,500 Mills Corporation 742
35,900 Pacific Gulf Properties, Inc. 954
26,950 Parkway Properties, Inc. 771
--------
6,379
RESTAURANTS 0.4%
87,700 Buca, Inc.<F1> 1,370
--------
RETAIL 5.8%
387,100 Ashford.com, Inc.<F1> 847
316,600 Goody's Family Clothing, Inc.<F1> 1,140
356,200 The Gymboree Corporation<F1> 3,184
117,700 J. Jill Group, Inc.<F1> 1,724
221,700 Pacific Sunwear of California, Inc.<F1> 4,545
104,000 Tweeter Home Entertainment Group, Inc.<F1> 2,480
206,500 Ultimate Electronics, Inc.<F1> 7,460
--------
21,380
--------
SEMICONDUCTOR CAPITAL EQUIPMENT 2.0%
43,950 Adept Technology, Inc.<F1> 1,225
99,500 ATS Automation Tooling Systems, Inc.<F1> 1,765
274,300 Camtek, Ltd.<F1> 2,194
59,700 OmniVision Technologies, Inc.<F1> 2,037
--------
7,221
--------
SEMICONDUCTORS 2.0%
108,700 Alpha Industries,Inc.<F1> 4,334
96,100 Celeritek, Inc.<F1> 3,177
--------
7,511
--------
SCHOOLS 7.0%
236,600 Career Education Corporation<F1> 9,153
91,500 Corinthian Colleges, Inc.<F1> 6,325
395,000 University of Phoenix Online, Inc.<F1> 10,369
--------
25,847
--------
TELECOMMUNICATIONS 3.2%
117,275 Adelphia Business Solutions, Inc.<F1> 728
41,300 Airgate PCS, Inc.<F1> 1,588
214,900 Airspan Networks, Inc.<F1> 1,175
12,625 Alaska Communications Systems
Holdings, Inc.<F1> 86
149,600 MDSI Mobile Data Solutions, Inc.<F1> 1,926
320,000 Metro One Telecommunications, Inc.<F1> 4,414
415,000 ViaSource Communications, Inc.<F1> 1,919
--------
11,836
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
Microcap FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Number Market Value
of Shares (in thousands)
--------- --------------
TELECOMMUNICATIONS EQUIPMENT 8.5%
29,300 Advanced Switching Communications,Inc.<F1> $ 298
37,525 Elastic Networks,Inc.<F1> 232
291,200 Endwave Corporation<F1> 4,186
493,500 FiberCore, Inc.<F1> 3,084
85,200 Ixia, Inc.<F1> 1,997
29,200 LightPath Technologies, Inc.<F1> 796
50,000 Oplink Communications,Inc.<F1> 1,219
479,750 REMEC, Inc.<F1> 14,303
240,800 ViaSat, Inc.<F1> 5,298
--------
31,413
--------
TEXTILES & APPAREL 0.5%
179,100 Steven Madden, Ltd.<F1> 1,706
--------
TRANSPORTATION 0.9%
158,300 Knightsbridge Tankers, Ltd. 3,409
--------
Total Common Stocks (Cost $288,579) 346,199
--------
Number
of Shares
(in thousands)
--------------
SHORT-TERM INVESTMENTS 8.7%
Investment Companies 5.5%
4,315 Financial Square Prime Obligation Fund $ 4,315
16,006 Short-Term Investments Co.
Liquid Assets Portfolio 16,006
--------
Total Investment Companies (Cost $20,321) 20,321
--------
Principal
Amount
(in thousands)
--------------
Variable Rate Demand Notes 3.2%
$1,926 American Family Financial Services, Inc. 1,926
9,897 Sara Lee Corporation 9,897
--------
Total Variable Rate Demand Notes
(Cost $11,823) 11,823
--------
Total Short-Term Investments
(Cost $32,144) 32,144
--------
Total Investments (Cost $320,723) 102.7% 378,343
--------
Liabilities, less Other Assets (2.7)% (10,195)
--------
TOTAL NET ASSETS 100.0% $368,148
========
<F1> Non-income producing
<F2> Fair valued & unregistered security
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SHORT-TERM BOND FUND
STRATEGY
Firstar Short-Term Bond Fund seeks to provide an annual rate of total return,
before Fund expenses, comparable to the annual rate of total return of the
Lehman Brothers 1-3 Year Government/Credit Bond Index (the "Lehman 1-3 Index").
INVESTMENT REVIEW
Over the past 12 months, rates on Treasuries have risen dramatically on the
short end while falling slightly for intermediate and longer-term issues.
Spreads on corporate bonds (over Treasuries), which have widened greatly, are
currently wider than in 1998 during the Asian currency crisis. Moreover, our
differences within the corporate sector among the quality segment (for example,
AA vs. BBB) is very steep. Downgrades have been prevalent.
Sector Exposure and Credit Quality
The Fund's careful, research intensive process of selecting investment grade
corporate issues, asset-backed securities and mortgages gives the fund a high
quality focus. As of October 31, 2000, the fund had 64% invested in securities
rated AAA or higher. The Fund's current exposure to the corporate sector is 33%.
We continue to favor the finance, banking and brokerage areas of the corporate
sector.
AVERAGE MATURITY AND DURATION
During this period, the Fund's duration equaled the benchmark's. Firstar's
disciplined management style reflects a duration neutral approach in all
interest rate environments to manage risk. As of October 31,
2000, the Fund's average weighted maturity and duration
equaled 2.0 years and 1.7 years, respectively.
LOOKING AHEAD - THE FORECAST
We anticipate further slowing of the economy. Market rates have already leveled
off as investors have become convinced that the slow down is for real this time
and will not be interrupted by a re-acceleration of strong growth. When the Fed
becomes convinced that inflationary pressures are contained, they will begin to
lower rates to restart the economy. This will probably occur after the end
of the first quarter next year. Level and declining interest rate environments
are optimal conditions for bond investments.
PORTFOLIO MANAGER PROFILE
--------------------------------------------------------------------------------
RICHARD BURLING, CFA, Senior Vice President and Director of Credit Research
with Firstar Investment Research & Management Company, LLC (FIRMCO) and Bradley
Peters, CFA, CPA, CFP, Senior Vice President and Senior Portfolio Manager have
co-managed the Fund since February 2000. Rick has been with FIRMCO and its
affiliates since 1980 and has 17 years of investment management experience.
He has a BA from Northwestern University and received his MBA from the
University of Wisconsin. Brad has been with FIRMCO and its affiliates since
1993 and has 18 years of investment management experience. He received his
BBA from the University of Wisconsin. Rick and Brad are both Chartered
Financial Analysts.
<PAGE>
(LOGO) FIRSTAR FUNDS
LEHMAN 1-3
YEAR GOV'T
SHORT-TERM CORP
BOND FUND INDEX
12/29/89 $10,000 $10,000
10/90 10,464 10,738
10/91 11,865 11,964
10/92 12,966 12,943
10/93 13,833 13,712
10/94 14,035 13,879
10/95 15,290 15,118
10/96 16,177 16,030
10/97 17,223 17,073
10/98 18,402 18,364
10/99 19,031 18,952
10/00 20,233 20,113
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Per form ance reflects fee waivers in effect. In the absence of
fee waivers, total return would be reduced. Performance is shown for
Institutional shares, which have lower expenses than Series A or Series B
shares. If those fees and expenses were reflected in the chart above, total
return would have been reduced. Returns shown include the reinvest ment of all
dividends and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that your
shares, when redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
--------------------------------------------------------------------------------------------------------------------------------
1 Year 5 Years 10 Years Since Inception
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Short-Term Bond Fund - Institutional 6.3 5.8 6.8 6.7
Short-Term Bond Fund - A - No Load 6.1 5.5 6.7 6.6
Short-Term Bond Fund - A - Load<F1> 1.8 4.6 6.2 6.2
Short-Term Bond Fund - B - No Load 5.1 - - 4.4
Short-Term Bond Fund - B - Load<F2> 0.1 - - 2.1
Lehman Brothers 1-3 Year Gov't./Credit Bond Index<F3> 6.1 5.9 6.5 6.7
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A
B = Series B
<F1> Reflects maximum sales charge of 4.00%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The Lehman Brothers 1-3 Year Gov't./Credit Bond Index is an unmanaged
market value weighted index measuring both principal price
changes of, and income pro vided by, the under lying uni verse of
securities that comprise the index. Securities included in the
index must meet the follow ing criteria: fixed as opposed to variable rate;
not less than one year to maturity; not more than three
years remaining to maturity; and minimum out stand ing par value of $100
million. The Index figures do not reflect any fees or expenses.
An investment cannot be made directly in an index.
The Lehman Brothers 1-3 Year Government/Credit Bond Index, the Lehman Brothers
Intermediate Government/Credit Bond Index and the Lehman Brothers Government/
Credit Bond Index are trademarks of Lehman Brothers. The Fund, its Adviser and
the Administrator are not affiliated in any way with Lehman Brothers. Inclusion
of a security in a bond index in no way implies an opinion by Lehman Brothers
as to its attractiveness or appropriateness as an investment. Lehman Brothers'
publication of the bond index is not made in connection with any sale or offer
for sale of securities or any solicitation of orders for the purchase of
securities.
Prior to January 10, 1995, the Fund offered to investors one series
of shares with neither a sales charge nor a service fee.
Effective at the close of business January 9, 1995, Firstar Funds began to offer
Series A shares. Effective at the close of business on February 28, 1999,
Firstar Funds began to offer Series B shares. Series A shares have a 4.00%
maximum sales load and are subject to an annual 0.25% service organization fee.
The load performance for the Series A shares has been restated to
reflect the impact of the current sales charge. Series A performance prior to
January 10, 1995, does not reflect the service organization fees. If service
organization fees had been reflected, performance would be reduced. Series B
shares have a 5.00% maximum deferred sales charge and are subject to an annual
0.25% service organization fee and an annual 0.75% 12b-1 fee. Performance for
all share classes reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced.
SECTOR DISTRIBUTION
10/31/00
--------------------------------------------------------------------------------
U.S. TREASURY 29%
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY 0%
--------------------------------------------------------------------------------
MORTGAGE-BACKED<F1> 10%
--------------------------------------------------------------------------------
FINANCE, BANKING, BROKERAGE 31%
--------------------------------------------------------------------------------
INDUSTRIAL 2%
--------------------------------------------------------------------------------
UTILITY 0%
--------------------------------------------------------------------------------
INTERNATIONAL/YANKEE 2%
--------------------------------------------------------------------------------
ASSET-BACKED 23%
--------------------------------------------------------------------------------
CASH AND OTHER 3%
--------------------------------------------------------------------------------
TAXABLE MUNICIPAL 0%
--------------------------------------------------------------------------------
TOTAL 100%
--------------------------------------------------------------------------------
<F1>incl. U.S. Govt. Agency-Backed
PORTFOLIO COMPOSITION 10/31/00
--------------------------------------------------------------------------------
AVERAGE MATURITY 2.0 YEARS
--------------------------------------------------------------------------------
AVERAGE DURATION 1.7 YEARS
--------------------------------------------------------------------------------
QUALITY DISTRIBUTION 10/31/00
--------------------------------------------------------------------------------
U.S. TREASURY 29%
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY 8%
--------------------------------------------------------------------------------
Aaa 27%
--------------------------------------------------------------------------------
Aa 3%
--------------------------------------------------------------------------------
A 23%
--------------------------------------------------------------------------------
Baa 10%
--------------------------------------------------------------------------------
Ba 0%
--------------------------------------------------------------------------------
TOTAL 100%
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$183,070,162
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
Intermediate Bond Fund
STRATEGY
Firstar Intermediate Bond Fund seeks to provide an annual rate of total
return, before Fund expenses, comparable to the annual rate of total return of
the Lehman Brothers Intermediate Government/Credit Bond Index (the "Lehman
Intermediate Index").
INVESTMENT REVIEW
The past twelve months represent an extraordinary span of time for the
fixed-income market. The ten-year Treasury began the period at roughly 6.0%,
rose to 6.8% in January, and then proceeded to decline to 5.8% at the end of
October. While this was happening the yield curve went from a positive slope of
1.08% from the three-month Bill to the thirty-year Treasury, to a negative
0.59%.
Corporate spreads to Treasuries as measured by the interest rate swaps
curve went from plus 0.8% to plus 1.2%. They are currently wider than the levels
that were achieved in October of 1998, when there was a great deal of
uncertainty in the market due to the near collapse of the Long Term Capital
Management hedge fund.
The mortgage backed market has experienced some of the same spread widening
to Treasuries as the corporate market, but were somewhat insulated due to their
much higher credit quality. Straight agencies or agencies without the mortgage
collateral backing, experienced more of the corporate type spread widening than
their brethren.
SECTOR EXPOSURE AND CREDIT QUALITY
Our credit quality remains consistently high at AA. We strive to buy the
highest quality corporates available at a given level of spread to Treasuries.
Currently the Fund holds 34% in corporate securities and 14% in agency
securities. Over the past year, agency yields started to approach those
available in the corporate sector, so we have shifted some of our corporate
assets into the agency sector. Since the transfer, agency spreads have narrowed
to Treasuries, while corporate spreads have continued to deteriorate.
AVERAGE MATURITY AND DURATION
Our average maturity and duration remains that of the Lehman Intermediate
Government/Credit Index. By holding our maturity and duration to that of the
benchmark we offer greater consistency of returns, while adding value in our
security selection and sector rotation.
LOOKING AHEAD - THE FORECAST
We believe that over the coming year, corporate and agency spreads should
narrow to their Treasury equivalent. Treasury securities appear expensive to
other sectors of the market, and it is these alternative sectors on which we are
focused.
PORTFOLIO MANAGER PROFILE
David Bethke, CFA, Senior Vice President and Senior Portfolio Manager of
Firstar Investment Research & Management Company, LLC (FIRMCO) has managed the
Fund since February 2000. David has 19 years of investment management experience
and has been with FIRMCO and its affiliates since 1987. He received his BA from
Upper Iowa University and his MBA from the University of Iowa. David is a
Chartered Financial Analyst.
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERMEDIATE LEHMAN
BOND FUND INTERMEDIATE
GOV'T/CORP BOND
1/5/93 $10,000 $10,000
10/93 10,858 10,844
10/94 10,670 10,635
10/95 11,978 11,968
10/96 12,669 12,663
10/97 13,603 13,612
10/98 14,665 14,853
10/99 14,946 15,000
10/00 15,943 15,969
This chart assumes an initial investment of $10,000 made on 1/5/93
(inception). Per formance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Performance is shown for Institutional
shares, which have lower expenses than Series A or Series B shares. If those
fees and expenses were reflected in the chart above, total return would have
been reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past performance is not predictive of future performance.
Investment return and principal value will fluctuate, so that your shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
--------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years 5 Years Since Inception
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Intermediate Bond Fund - Institutional 6.7 5.4 5.9 6.1 (1/5/93)
Intermediate Bond Fund - A - No Load 6.4 5.2 5.6 6.0 (1/5/93)
Intermediate Bond Fund - A - Load<F1> 2.2 3.8 4.7 5.4 (1/5/93)
Intermediate Bond Fund - B - No Load 5.7 - - 3.9 (3/1/99)
Intermediate Bond Fund - B - Load<F2> 0.7 - - 1.6 (3/1/99)
Lehman Brothers Intermediate Gov't./
Credit Bond Index<F3> 6.5 5.5 5.9 6.2 (1/5/93)
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A
B = Series B
<F1> Reflects maximum sales charge of 4.00%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The Lehman Brothers Intermediate Gov't./Credit Bond Index is an
unmanaged market value weighted index measuring both principal price changes of,
and income provided by, the underlying universe of securities that comprise
the index. Securities included in the index must meet the following critieria:
fixed as opposed to variable rate; remaining maturity of one to ten years;
minimum out stand ing par value of $100 million; and rated investment grade or
higher by Moody's, Standard & Poor's, or Fitch, in that order. The Index figures
do not reflect any fees or expenses. An investment cannot be made directly in an
index.
The Lehman Brothers 1-3 Year Government/Credit Bond Index, the Lehman
Brothers Intermediate Government/Credit Bond Index and the Lehman Brothers
Government/Credit Bond Index are trademarks of Lehman Brothers. The Fund, its
Adviser and the Administrator are not affiliated in any way with Lehman
Brothers. Inclusion of a security in a bond index in no way implies an opinion
by Lehman Brothers as to its attractiveness or appropriateness as an investment.
Lehman Brothers' publication of the bond index is not made in connection with
any sale or offer for sale of securities or any solicitation of orders for the
purchase of securities.
Prior to January 10 1995, the Fund offered to investors one series of shares
with neither a sales charge nor a service fee.
Effective at the close of business January 9, 1995, Firstar Funds began to
offer Series A shares. Effective at the close of business on February 28,
1999, Firstar Funds began to offer Series B shares. Series A shares have
a 4.00% maximum sales load and are subject to an annual 0.25% service
organization fee. The load performance for the Series A shares has been
restated to reflect the impact of the current sales charge. Series A performance
prior to January 10, 1995, does not reflect the service organization fees.
If service organization fees had been reflected, performance would be reduced.
Series B shares have a 5.00% maximum deferred sales charge and are subject to
an annual 0.25% service organization fee and an annual 0.75% 12b-1 fee.
Performance for all share classes reflects fee waivers in effect. In the
absence of fee waivers, total return would be reduced.
SECTOR DISTRIBUTION
10/31/00
--------------------------------------------------------------------------------
U.S. TREASURY 26%
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY 0%
--------------------------------------------------------------------------------
MORTGAGE-BACKED<F1> 18%
--------------------------------------------------------------------------------
FINANCE, BANKING, BROKERAGE 22%
--------------------------------------------------------------------------------
INDUSTRIAL 10%
--------------------------------------------------------------------------------
UTILITY 2%
--------------------------------------------------------------------------------
INTERNATIONAL/YANKEE 7%
--------------------------------------------------------------------------------
ASSET-BACKED 10%
--------------------------------------------------------------------------------
CASH AND OTHER 5%
--------------------------------------------------------------------------------
TOTAL 100%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION 10/31/00
--------------------------------------------------------------------------------
AVERAGE MATURITY 4.7 YEARS
--------------------------------------------------------------------------------
AVERAGE DURATION 3.5 YEARS
--------------------------------------------------------------------------------
<F2> incl. U.S. Gov't. Agency-Backed
QUALITY DISTRIBUTION 10/31/00
--------------------------------------------------------------------------------
U.S. TREASURY 26%
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY 14%
--------------------------------------------------------------------------------
Aaa 18%
--------------------------------------------------------------------------------
Aa 9%
--------------------------------------------------------------------------------
a 20%
--------------------------------------------------------------------------------
Baa 13%
--------------------------------------------------------------------------------
Ba 0%
--------------------------------------------------------------------------------
TOTAL 100%
--------------------------------------------------------------------------------
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$436,436,147
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
U.S. GOVERNMENT SECURITIES FUND
STRATEGY
Firstar U.S. Government Securities Fund seeks to provide a high rate of
current income that is consistent with relative stability of principal.
INVESTMENT REVIEW
The past twelve months represent an extraordinary span of time for the
fixed-income market. The ten-year Treasury began the period at roughly 6.0%,
rose to 6.8% in January, and then proceeded to decline to 5.8% at the end of
October. While this was happening the yield curve went from a positive slope of
1.08% from the three-month Bill to the thirty-year Treasury, to a negative
0.59%.
Corporate spreads to Treasuries as measured by the interest rate swaps
curve went from plus 0.8% to plus 1.2%. They are currently wider than the levels
that were achieved in October of 1998, when there was a great deal of
uncertainty in the market due to the near collapse of the Long Term Capital
Management hedge fund.
The mortgage backed market has experienced some of the same spread widening
to Treasuries as the corporate market, but were somewhat insulated due to their
much higher credit quality. Straight agencies or agencies without the mortgage
collateral backing, experienced more of the corporate type spread widening than
their brethren.
SECTOR EXPOSURE AND CREDIT QUALITY
The average credit quality of the Fund is AAA, the highest rating.
The composition of the Fund changed slightly over the past year; our
mortgage pass through position went from 74% to 80%, while our agency exposure
went from 19% down to 10%. Treasuries, which had accounted for 6% of the
portfolio one-year ago, now account for 10% of the portfolio.
AVERAGE MATURITY AND DURATION
We continue to track the duration of the Lehman Brothers Intermediate
Government Bond Index at 3.1 years. By maintaining our duration equal to that of
the benchmark, we are able to achieve consistent performance in rising and
declining interest rate environments.
Looking Ahead - The Forecast
The intermediate portion of the Treasury yield curve appears to currently
have the most value. Although Treasuries themselves appear rich, the agencies
and mortgages priced off this sector of the curve should perform well over the
coming year.
PORTFOLIO MANAGER PROFILE
--------------------------------------------------------------------------------
DAVID BETHKE, CFA, Senior Vice President and Senior Portfolio Manager of
Firstar Investment Research & Management Company, LLC (FIRMCO) manages the Fund.
He managed the Predecessor Mercantile U.S. Government Securities Portfolio since
it commenced operations in 1988. David has 19 years of investment management
experience and has been with FIRMCO and its affiliates since 1987. He received
his BA from Upper Iowa University and his MBA from the University of Iowa. David
is a Chartered Financial Analyst.
<PAGE>
(LOGO) FIRSTAR FUNDS
US GOVERNMENT LEHMAN BROTHERS
SECURITIES FUND INTERMEDIATE GOVERNMENT BOND
11/90 $10,000 $10,000
11/91 11,262 11,294
11/92 12,109 12,212
11/93 13,362 13,324
11/94 12,980 13,102
11/95 14,928 14,892
11/96 15,656 15,735
11/97 16,519 16,723
11/98 17,672 17,729
11/99 17,967 17,942
11/00 19,106 19,417
This chart assumes an initial investment of $10,000 made on 11/30/90. Per
form ance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Performance is shown for Institutional shares, which
have lower expenses than Series A, Series B or Series Y shares. If those fees
and expenses were reflected in the chart above, total return would have been
reduced. Returns shown include the reinvest ment of all dividends and other
distributions. Past performance is not predictive of future performance.
Investment return and principal value will fluctuate, so that your shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years 5Years 10 Years
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Government Securities Fund - Institutional 6.4 5.1 5.3 6.9
U.S. Government Securities Fund - Y 6.1 4.8 5.0 6.6
U.S. Government Securities Fund - A - No Load 6.1 4.8 5.0 6.6
U.S. Government Securities Fund - A - Load<F1> 1.9 3.4 4.1 6.2
U.S. Government Securities Fund - B - No Load 5.5 4.1 4.3 6.2
U.S. Government Securities Fund - B - Load<F2> 0.5 3.2 4.0 6.2
Lehman Brothers Intermediate Government Bond Index<F3> 6.7 5.6 6.0 7.2
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A
B = Series B
Y = Series Y
<F1> Reflects maximum sales charge of 4.00%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The Lehman Brothers Intermediate Government Bond Index is an unmanaged
market value weighted index measuring both principal price changes of, and
income provided by, the under lying universe of securities that comprise
the index. Securities included in the index must meet the following
criteria: fixed as opposed to variable rate; not less than one year to
maturity; not more than three years remaining to maturity; and minimum out
stand ing par value of $100 million. The Index figures do not reflect any
fees or expenses. An investment cannot be made directly in an index.
The Fund began operations on June 2, 1988 as the Mercantile U.S. Government
Securities Portfolio of Mercantile Mutual Funds, Inc. On November 27, 2000, the
Mercantile U.S. Government Securities Portfolio and the Firstar Stellar U.S.
Government Income Fund reorganized into the Firstar U.S. Government Securities
Fund. The historical returns shown are those of the Mercantile U.S. Government
Securities Portfolio.
Institutional shares were initially offered on February 1, 1991. Y shares
were initially offered on June 7, 1994. Retail B shares were initially offered
on March 1, 1995. The performance figures for the Institutional, Y and Retail B
shares for periods prior to such dates represent the performance for Retail A
shares of the Fund.
Series A shares have a 4.00% maximum sales load and are subject to an annual
0.25% service organization fee. The load performance for the Series A shares
has been restated to reflect the impact of the current sales charge. Series Y
shares are subject to an annual 0.25% service organization fee. Series B shares
have a 5.00% maximum deferred sales charge and are subject to an annual 0.25%
service organization fee and an annual 0.75% 12b-1 fee. Performance for all
share classes reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced.
SECTOR DISTRIBUTION
10/31/00
--------------------------------------------------------------------------------
U.S. TREASURY 10%
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY 0%
--------------------------------------------------------------------------------
MORTGAGE-BACKED<F1> 90%
--------------------------------------------------------------------------------
FINANCE, BANKING, BROKERAGE 0%
--------------------------------------------------------------------------------
INDUSTRIAL 0%
--------------------------------------------------------------------------------
UTILITY 0%
--------------------------------------------------------------------------------
INTERNATIONAL/YANKEE 0%
--------------------------------------------------------------------------------
ASSET-BACKED 0%
--------------------------------------------------------------------------------
CASH AND OTHER 0%
--------------------------------------------------------------------------------
TAXABLE MUNICIPAL 0%
--------------------------------------------------------------------------------
TOTAL 100%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION 10/31/00
--------------------------------------------------------------------------------
AVERAGE MATURITY 4.0 YEARS
--------------------------------------------------------------------------------
AVERAGE DURATION 23.9 YEARS
--------------------------------------------------------------------------------
<F1> INCL. U.S. GOVT. AGENCY-BACKED
--------------------------------------------------------------------------------
QUALITY DISTRIBUTION 10/31/00
--------------------------------------------------------------------------------
U.S. TREASURY 10%
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY 90%
--------------------------------------------------------------------------------
Aaa 0%
--------------------------------------------------------------------------------
Aa 0%
--------------------------------------------------------------------------------
A 0%
--------------------------------------------------------------------------------
Baa 0%
--------------------------------------------------------------------------------
Ba 0%
--------------------------------------------------------------------------------
TOTAL 100%
--------------------------------------------------------------------------------
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$62,824,004
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
AGGREGATE BOND FUND
STRATEGY
Firstar Aggregate Bond Fund seeks to provide an annual rate of total
return, before Fund expenses, comparable to the annual rate of total return of
the Lehman Brothers Aggregate Bond Index. The investment objective may be
changed by the Board of Directors without approval of shareholders, although no
change is currently anticipated.
INVESTMENT REVIEW
Over the past twelve months the Federal Reserve raised short term rates 125
basis points on top of a 50 basis point increase in mid-1999. The reasons for
this aggressive monetary policy were strong economic growth and nearly full
utilization of the US workforce. As a result the yield curve became negatively
sloped in the early part of 2000. This phenomenon was exacerbated by the
treasury's announcement in January that they would not only cut back on new debt
issuance but would begin to buy back long term treasury bonds with cash from the
growing surplus. Concurrent to this, corporate spreads, which had narrowed,
began to widen again due to a fear in the marketplace that the Federal Reserve's
efforts to slow the economy would succeed and corporate profits would fall. In
summary, while short term rates have risen, 10-30 year rates have fallen, and at
the same time spreads have widened especially among Baa issuers.
SECTOR EXPOSURE AND CREDIT QUALITY
Generally speaking our corporate weighting remained higher than that of the
comparable indices. In addition to that the overall quality of our corporate
exposure declined as did the quality of the corporate bond market in general due
to the fact that credit downgrades have been running significantly ahead of
credit upgrades. However, the apparently negative influence of corporate bonds
was not great enough to badly affect our results because we have made it a
policy to concentrate corporate exposure in shorter maturities. The adverse
price impact on shorter corporates came almost as much from the yield curve as
from credit conditions. The real damage has been to long corporates where our
exposure is low. Recognizing that credit quality has been deteriorating we have
made efforts to reduce our corporate bond weighting in favor of US agencies.
AVERAGE MATURITY AND DURATION
A key element of our maturity management process is hinted at in the above
paragraph. Since we limit quality risk to shorter term securities then in order
to be duration neutral we must take maturity risk somewhere else. Our strategy
is to get exposure in the 5-30 year treasury segment. A year ago when the yield
curve was more positively sloped we were happy to take that exposure exclusively
in longer treasuries. During this past year with an inverted yield curve, we
tried to get more duration from the intermediate maturities. In this way we were
able to benefit from both a greater overall weighting in governments and from
re-steepening in the curve which has returned to a more normal slope since early
2000.
LOOKING AHEAD - THE FORECAST
We are concerned primarily with two forces that will affect bond returns
over the next year; the re-shaping of the yield curve and the conditions in the
credit markets. These forces are tied closely together since the outcome of
Federal Reserve strategy will help determine the resolution of both. We believe
that the Fed may have gone too far in tightening monetary policy as evidenced by
the reaction of the stock market and by the continued deterioration in corporate
credit quality. The yield curve itself has been suggesting that conditions are
too tight. Therefore we think that there will be an eventual Fed ease and it
will lead to an improvement in the corporate market and even greater
opportunities along the yield curve as the slope becomes more normal. Our
portfolios should benefit from both our exposure to corporate bonds and to
intermediate maturity segments.
PORTFOLIO MANAGER PROFILE
--------------------------------------------------------------------------------
GEORGE SCHUPP, CFA, Senior Vice President and Director of Fixed Income for
Firstar Investment Research & Management Company, LLC (FIRMCO) and David Bethke,
CFA, Senior Vice President and Senior Portfolio Manager of FIRMCO co-manage the
Fund. Both had managed the Predecessor Mercantile Government & Corporate Bond
Portfolio - George since February 1988 and David since February 2000. George has
24 years of investment management experience and has been with Firstar and its
affiliates since 1983. He received his BA from the University of Missouri -
St. Louis and his MBA from Southern Illinois University. David has been with
Firstar and its affiliates since 1987 and has 19 years of investment management
experience. David received his BA from Upper Iowa University and his MBA from
the University of Iowa. George and David are both Chartered Financial Analysts.
<PAGE>
(LOGO) FIRSTAR FUNDS
AGGREGATE BOND FUND LEHMAN BROTHERS
AGGREGATE BOND INDEX
11/90 $10,000 $10,00
11/91 11,305 11,441
11/92 12,224 12,455
11/93 13,513 13,812
11/94 13,104 13,389
11/95 15,241 15,751
11/96 15,976 16,707
11/97 16,986 17,969
11/98 18,621 18,708
11/99 18,467 19,027
10/00 19,756 20,332
This chart assumes an initial investment of $10,000 made on 11/30/90. Per
form ance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Performance is shown for Institutional shares, which
have lower expenses than Series A, Series Y or Series B shares. If those fees
and expenses were reflected in the chart above, total return would have been
reduced. Returns shown include the reinvest ment of all dividends and other
distributions. Past performance is not predictive of future performance.
Investment return and principal value will fluctuate, so that your shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years 5Years 10 Years
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AGGREGATE BOND FUND - INSTITUTIONAL 7.0 5.4 5.6 7.5
AGGREGATE BOND FUND - Y 6.7 5.1 5.3 7.0
AGGREGATE BOND FUND - A - NO LOAD 6.6 5.0 5.3 7.0
AGGREGATE BOND FUND - A - LOAD<F1> 2.3 3.6 4.4 6.6
AGGREGATE BOND FUND - B - NO LOAD 5.9 4.3 4.6 6.6
AGGREGATE BOND FUND - B - LOAD<F2> 0.9 3.4 4.3 6.6
LEHMAN BROTHERS AGGREGATE BOND INDEX<F3> 7.3 5.7 6.3 8.2
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A
B = Series B
Y = Series Y
<F1> Reflects maximum sales charge of 4.00%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The Lehman Brothers Aggregate Bond Index is an unmanaged market value
weighted index measuring both principal price changes of, and income
provided by, the under lying uni verse of secur ities that comprise the
index. Securities included in the index must meet the follow ing criteria:
fixed as opposed to variable rate; not less than one year to maturity; not
more than three years remaining to maturity; and minimum out stand ing par
value of $100 million. The Index figures do not reflect any fees or
expenses. An investment cannot be made directly in an index.
The Fund began operations on June 15, 1988 as the Mercantile Government &
Corporate Bond Portfolio of Mercantile Mutual Funds, Inc. On November 27, 2000,
the Mercantile Government & Corporate Bond Portfolio and the Mercantile Bond
Index Portfolio reorganized into the Firstar Aggregate Bond Fund.
The historical returns shown are those of the Mercantile Government &
Corporate Bond Portfolio. Institutional shares were initially offered on
February 1, 1991. Y shares were initially offered on January 3, 1994. Retail B
shares were initially offered on March 1, 1995. The performance figures for the
Institutional, Y and Retail B shares for periods prior to such dates represent
the performance for Retail A shares of the Fund.
Series A shares have a 4.00% maximum sales load and are subject to an annual
0.25% service organization fee. The load performance for the Series A shares
has been restated to reflect the impact of the current sales charge. Series Y
shares are subject to an annual 0.25% service organization fee. Series B shares
have a 5.00% maximum deferred sales charge and are subject to an annual 0.25%
service organization fee and an annual 0.75% 12b-1 fee. Performance for all
share classes reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced.
SECTOR DISTRIBUTION
10/31/00
--------------------------------------------------------------------------------
U.S. TREASURY 18%
--------------------------------------------------------------------------------
MORTGAGE-BACKED<F1> 40%
--------------------------------------------------------------------------------
CORPORATE 40%
--------------------------------------------------------------------------------
CASH AND OTHER 2%
--------------------------------------------------------------------------------
TOTAL 100%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION 10/31/00
--------------------------------------------------------------------------------
AVERAGE MATURITY 7.8 YEARS
--------------------------------------------------------------------------------
AVERAGE DURATION 4.9 YEARS
--------------------------------------------------------------------------------
<F1> INCL. U.S. GOVT. AGENCY-BACKED
QUALITY DISTRIBUTION 10/31/00
--------------------------------------------------------------------------------
U.S. TREASURY 18%
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY 40%
--------------------------------------------------------------------------------
Aaa 4%
--------------------------------------------------------------------------------
Aa 17%
--------------------------------------------------------------------------------
A 18%
--------------------------------------------------------------------------------
Baa 3%
--------------------------------------------------------------------------------
Ba 0%
--------------------------------------------------------------------------------
TOTAL 100%
--------------------------------------------------------------------------------
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$125,956,819
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
BOND IMMDEX/TM FUND
STRATEGY
Firstar Bond IMMDEX Fund seeks to provide an annual rate of total return
comparable to that of the Lehman Brothers Government/Credit Bond Index, before
Fund expenses. In order to achieve its objective, the Fund may invest in
securities with very long remaining maturities (30 years or longer) in addition
to shorter bonds and notes.
INVESTMENT REVIEW
Over the past twelve months the Federal Reserve raised short term rates 125
basis points on top of a 50 basis point increase in mid-1999. The reasons for
this aggressive monetary policy were strong economic growth and nearly full
utilization of the US workforce. As a result the yield curve became negatively
sloped in the early part of 2000. This phenomenon was exacerbated by the
treasury's announcement in January that they would not only cut back on new debt
issuance but would begin to buy back long term treasury bonds with cash from the
growing surplus. Concurrent to this, corporate spreads, which had narrowed,
began to widen again due to a fear in the marketplace that the Federal Reserve's
efforts to slow the economy would succeed and corporate profits would fall. In
summary, while short term rates have risen, 10-30 year rates have fallen, and at
the same time spreads have widened especially among Baa issuers.
SECTOR EXPOSURE AND CREDIT QUALITY
Generally speaking our corporate weighting remained higher than that of the
comparable indices. In addition to that, the overall quality of our corporate
exposure declined as did the quality of the corporate bond market in general due
to the fact that credit downgrades have been running significantly ahead of
credit upgrades. However, the apparently negative influence of corporate bonds
was not great enough to badly affect our results because we have made it a
policy to concentrate corporate exposure in shorter maturities. The adverse
price impact on shorter corporates came almost as much from the yield curve as
from credit conditions. The real damage has been to long corporates where our
exposure is low. Recognizing that credit quality has been deteriorating we have
made efforts to reduce our corporate bond weighting in favor of US agencies.
AVERAGE MATURITY AND DURATION
A key element of our maturity management process is hinted at in the above
paragraph. Since we limit quality risk to shorter term securities, in order to
be duration neutral we must take maturity risk somewhere else. Our strategy is
to get exposure in the 5-30 year treasury segment. A year ago when the yield
curve was more positively sloped we were happy to take that exposure exclusively
in longer treasuries. During this past year with an inverted yield curve, we
tried to get more duration from the intermediate maturities. In this way we were
able to benefit from both a greater overall weighting in governments and from
re-steepening in the curve which has returned to a more normal slope since early
2000.
LOOKING AHEAD - THE FORECAST
We are concerned primarily with two forces that will affect bond returns
over the next year; the re-shaping of the yield curve and the conditions in the
credit markets. These forces are tied closely together since the outcome of
Federal Reserve strategy will help determine the resolution of both. We believe
that the Fed may have gone too far in tightening monetary policy as evidenced by
the reaction of the stock market and by the continued deterioration in corporate
credit quality. The yield curve itself has been suggesting that conditions are
too tight. Therefore we think that there will be an eventual Fed ease and it
will lead to an improvement in the corporate market and even greater
opportunities along the yield curve as the slope becomes more normal. Our
portfolios should benefit from both our exposure to corporate bonds and to
intermediate maturity segments.
PORTFOLIO MANAGER PROFILE
--------------------------------------------------------------------------------
GEORGE SCHUPP, CFA, Senior Vice President and
Director of Fixed Income for Firstar Investment Research & Management Company,
LLC (FIRMCO) and DAVID BETHKE, CFA, Senior Vice President and Senior Portfolio
Manager of FIRMCO have co-managed the Fund since February 2000. George has 24
years of investment management experience and has been with Firstar and its
affiliates since 1983. He received his BA from the University of Missouri - St.
Louis and his MBA from Southern Illinois University. David has been with Firstar
and its affiliates since 1987 and has 19 years of investment management
experience. David received his BA from Upper Iowa University and his MBA from
the University of Iowa. George and David are both Chartered Financial Analysts.
<PAGE>
(LOGO) FIRSTAR FUNDS
BOND LEHMAN GOVT/
INDEX CORP BOND
12/29/89 $10,000 $10,000
10/90 10,421 10,440
10/91 12,105 12,045
10/92 13,376 13,312
10/93 15,154 15,126
10/94 14,565 14,424
10/95 16,934 16,755
10/96 17,840 17,658
10/97 19,428 19,214
10/98 21,256 21,189
10/99 21,298 21,049
10/00 22,851 22,550
This chart assumes an initial investment of $10,000 made on 12/29/89
(inception). Per form ance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Performance is shown for Institutional
shares, which have lower expenses than Series A or Series B shares. If those
fees and expenses were reflected in the chart above, total return would have
been reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past performance is not predictive of future performance.
Investment return and principal value will fluctuate, so that your shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS Ended October 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
1 Year 5 Years 10Years Since Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Bond ImmdexTM Fund - Institutional 7.3 6.2 8.2 7.9
Bond ImmdexTM Fund - A - No Load 7.0 5.9 8.0 7.8
Bond ImmdexTM Fund - A - Load<F1> 2.7 5.0 7.6 7.4
Bond ImmdexTM Fund - B - No Load 6.2 - - 3.7
Bond ImmdexTM Fund - B - Load<F2> 1.2 - - 1.4
Lehman Brothers Gov't/Credit Bond Index<F3> 7.1 6.1 8.0 7.8
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A
B = Series B
<F1> Reflects maximum sales charge of 4.00%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The Lehman Brothers Gov't/Credit Bond Index is an unmanaged market
value weighted index measuring both principal price changes of, and income
provided by, the underlying universe of securities that comprise the index.
Securities included in the index must meet the following criteria: fixed as
opposed to variable rate; not less than one year to maturity; minimum
outstanding par value of $100 million; and rated investment grade or higher by
Moody's, Standard & Poor's, or Fitch, in that order. The Index figures do not
reflect any fees or expenses. An investment cannot be made directly in an index.
The Lehman Brothers 1-3 Year Government/Credit Bond Index, the Lehman
Brothers Intermediate Government/Credit Bond Index and the Lehman Brothers
Government/Credit Bond Index are trademarks of Lehman Brothers. The Fund, its
Adviser and the Administrator are not affiliated in any way with Lehman
Brothers. Inclusion of a security in a bond index in no way implies an opinion
by Lehman Brothers as to its attractiveness or appropriateness as an investment.
Lehman Brothers' publication of the bond index is not made in connection with
any sale or offer for sale of securities or any solicitation of orders for the
purchase of securities.
Prior to January 10, 1995, the Fund offered to investors one series of
shares with neither a sales charge nor a service fee.
Effective at the close of business January 9, 1995, Firstar Funds began to
offer Series A shares. Effective at the close of business on February 28, 1999,
Firstar Funds began to offer Series B shares. Series A shares have a 4.00%
maximum sales load and are subject to an annual 0.25% service organization fee.
The load performance for the Series A shares has been restated to reflect the
impact of the current sales charge. Series A performance prior to January 10,
1995, does not reflect the service organization fees. If service organization
fees had been reflected, performance would be reduced. Series B shares have a
5.00% maximum deferred sales charge and are subject to an annual 0.25% service
organization fee and an annual 0.75% 12b-1 fee. Performance for all share
classes reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced.
SECTOR DISTRIBUTION
10/31/00
--------------------------------------------------------------------------------
U.S. TREASURY 30%
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY 0%
--------------------------------------------------------------------------------
MORTGAGE-BACKED<F1> 12%
--------------------------------------------------------------------------------
FINANCE, BANKING, BROKERAGE 23%
--------------------------------------------------------------------------------
INDUSTRIAL 15%
--------------------------------------------------------------------------------
UTILITY 4%
--------------------------------------------------------------------------------
INTERNATIONAL/YANKEE 12%
--------------------------------------------------------------------------------
ASSET-BACKED 3%
--------------------------------------------------------------------------------
CASH AND OTHER 1%
--------------------------------------------------------------------------------
TOTAL 100%
--------------------------------------------------------------------------------
PORTFOLIO DISTRIBUTION 10/31/00
--------------------------------------------------------------------------------
AVERAGE MATURITY 9.5 YEARS
--------------------------------------------------------------------------------
AVERAGE DURATION 5.4 YEARS
--------------------------------------------------------------------------------
<F1> incl. U.S. Gov't. Agency-Backed
QUALITY DISTRIBUTION
10/31/00
--------------------------------------------------------------------------------
U.S. TREASURY 30%
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY 11%
--------------------------------------------------------------------------------
Aaa 6%
--------------------------------------------------------------------------------
Aa 6%
--------------------------------------------------------------------------------
A 23%
--------------------------------------------------------------------------------
Baa 23%
--------------------------------------------------------------------------------
Ba 1%
--------------------------------------------------------------------------------
TOTAL 100%
--------------------------------------------------------------------------------
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$562,274,754
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
STRATEGIC INCOME FUND
STRATEGY
Firstar Strategic Income Fund seeks to generate high current income.
INVESTMENT REVIEW
Bond market conditions over the past year clearly indicate a bifurcated
market: high credit quality issuers have performed well while lower quality has
underperformed. The combination of structural changes in the corporate bond
(fewer dealers), slowing earnings, high debt levels, and potential "hard
landing" for the economy are the main reasons for corporate bonds
underperforming. Overall, corporate issues have trailed Treasury issues by
nearly 3% for the past 12-months. Mortgage-backed securities (implied top-tier
credit rating) have outperformed by a slim margin.
SECTOR EXPOSURE AND CREDIT QUALITY
The Fund maintained approximately a 41% allocation to investment grade
corporate bonds in a variety of industries. Higher quality issuers were
concentrated in the longer maturity allocation while higher yield alternatives
were focused in shorter to intermediate maturity allocation in order to maintain
high yields. Key strategies involved diversifying banking exposure and reducing
REIT bond exposure to better manage market risks. The mortgage and equity REIT
allocations have performed well over the past year, helping to compensate for
the corporate bond market problems.
AVERAGE MATURITY AND DURATION
The Fund remained matched to its index duration throughout the period. Our
view in the Spring that the Treasury yield curve would begin shifting back to a
more normal shape resulted in the Fund maturity allocation being focused towards
intermediate bond maturities. Corporate bonds maturing beyond 10-years have
suffered the worst performance in the credit markets this year underperforming
by 7%. Thus, we were able to lessen some of the damage caused by longer-maturity
corporate bond underperformance.
LOOKING AHEAD - THE FORECAST
We are concerned primarily with two forces that will affect bond returns
over the next year; the re-shaping of the yield curve and the conditions in the
credit markets. These forces are tied closely together since the outcome of
Federal Reserve strategy will help determine the resolution of both. We believe
that the Fed may have gone too far in tightening monetary policy as evidenced by
the reaction of the stock market and by the continued deterioration in corporate
credit quality. The yield curve itself has been suggesting that conditions are
too tight. Therefore we think that there will be an eventual Fed ease and it
will lead to an improvement in the corporate market and even greater
opportunities along the yield curve as the slope becomes more normal. Our
portfolios should benefit from both our exposure to corporate bonds and to
intermediate maturity segments.
PORTFOLIO MANAGER PROFILE
--------------------------------------------------------------------------------
GEORGE SCHUPP, CFA, Senior Vice President and Director of Fixed Income for
Firstar Investment Research & Management Company, LLC (FIRMCO) and KAREN BOWIE,
JD, CFA, Vice President co-manage the Fund. George has 24 years of investment
management experience and has been with Firstar and its affiliates since 1983.
He received his BA from the University of Missouri - St. Louis and his MBA from
Southern Illinois University. Karen has over 15 years of trust and investment
management experience with five of those years at FIRMCO and its affiliates. She
is also an Adjunct Associate Professor at the University of Cincinnati. She
received her BSBA and MBA from Xavier University, and her a Juris Doctorate from
Salmon P. Chase College of Law. George and Karen are both Chartered Financial
Analysts.
<PAGE>
(LOGO) FIRSTAR FUNDS
STRATEGIC LEHMAN BROTHERS GOV'T./ STRATEGIC
INCOME FUND CREDIT INCOME
(NO-LOAD) BOND INDEX FUND (LOAD)
12/12/94 $10,000 $10,000 $10,000
11/95 11,271 11,829 11,271
11/96 12,059 12,490 12,059
11/97 13,147 13,416 13,147
11/98 12,863 14,805 12,863
11/99 12,221 14,611 12,221
10/00 13,058 15,660 12,973
This chart assumes an initial investment of $10,000 made on 12/12/94
(inception). Per formance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Returns shown include the reinvestment
of all dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
-------------------------------------------------------------------------------------------------------------------
1 Year 3 Years 5Years Since Inception<F2>
----------------------------------------------------------------------------------------------------------------------
<S> <C>
STRATEGIC INCOME FUND - A - NO LOAD - - - 6.4 (3/31/00)
STRATEGIC INCOME FUND - A - LOAD<F1> - - - 2.1 (3/31/00)
STRATEGIC INCOME FUND - B - NO LOAD 5.5 0.1 3.3 4.6 (12/12/94)
STRATEGIC INCOME FUND - B - LOAD<F2> 0.5 (0.9) 2.9 4.5 (12/12/94)
LEHMAN BROTHERS GOV'T./CREDIT BOND INDEX<F3> 7.1 5.5 6.1 7.9 (12/12/94)
----------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A
B = Series B
<F1> Reflects maximum sales charge of 4.00%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The Lehman Brothers Government/Credit Bond Index is an unmanaged market
value weighted index measuring both principal price
changes of, and income provided by, the underlying universe of securities
that comprise the index. Securities included in the index must meet the
following criteria: fixed as opposed to variable rate; not less than one
year to maturity; minimum outstanding par value of $100 million; and rated
investment grade or higher by Moody's, Standard & Poor's, or Fitch, in
that order. The Index figures do not reflect any fees or expenses. An
investment cannot be made directly in an index.
<F4> Returns for less than one year are not annualized.
International investing involves special risks including: currency risk,
increased volatility of foreign securities and differences in auditing and other
financial standards.
The Fund began operations on December 12, 1994 as the Firstar Stellar
Strategic Income Fund of the Firstar Stellar Funds. On December 11, 2000, the
Firstar Stellar Strategic Income Fund reorganized into the Firstar Strategic
Income Fund. The historical returns shown are those of the Firstar Stellar
Strategic Income Fund.
Series A shares have a 4.00% maximum sales load and are subject to an annual
0.25% service organization fee. The load performance for the Series A shares
has been restated to reflect the impact of the current sales charge. Series B
shares have a 5.00% maximum deferred sales charge and are subject to an annual
0.25% service organization fee and an annual 0.75% 12b-1 fee. Performance for
all share classes reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced.
Sector Distribution
10/31/00
--------------------------------------------------------------------------------
U.S. TREASURY 0%
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY 0%
--------------------------------------------------------------------------------
MORTGAGE-BACKED<F1> 16%
--------------------------------------------------------------------------------
CORPORATE BONDS 41%
--------------------------------------------------------------------------------
DOMESTIC EQUITY 12%
--------------------------------------------------------------------------------
INTERNATIONAL/YANKEE 11%
--------------------------------------------------------------------------------
REITS 19%
--------------------------------------------------------------------------------
CASH AND OTHER 1%
--------------------------------------------------------------------------------
TOTAL 100%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION 10/31/00
--------------------------------------------------------------------------------
AVERAGE MATURITY 12.6 YEARS
--------------------------------------------------------------------------------
AVERAGE DURATION 5.2 YEARS
--------------------------------------------------------------------------------
<F1> incl. U.S. Gov't. Agency-Backed
QUALITY DISTRIBUTION 10/31/00
--------------------------------------------------------------------------------
U.S. TREASURY 0%
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY 27%
--------------------------------------------------------------------------------
Aaa 0%
--------------------------------------------------------------------------------
Aa 20%
--------------------------------------------------------------------------------
A 26%
--------------------------------------------------------------------------------
Baa 27%
--------------------------------------------------------------------------------
Ba 0%
--------------------------------------------------------------------------------
TOTAL 100%
--------------------------------------------------------------------------------
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$129,486,000
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
TAX-EXEMPT INTERMEDIATE BOND FUND
STRATEGY
Firstar Tax-Exempt Intermediate Bond Fund seeks to provide current income
that is substantially exempt from federal income tax and emphasize total return
with relatively low volatility of principal.
Investment Review
Longer term municipal bonds outperformed shorter term municipal issues. The
Federal Reserve's rate increases over the past twelve months did not pose a
significant threat to the municipal bond market because tax-exempt issues were
in great demand.
SECTOR EXPOSURE AND CREDIT QUALITY
The majority of the Fund's holdings were invested in pre-refunded municipal
bonds, resulting in an average credit quality rating of AAA. With credit spreads
in the municipal bond market remaining tight, the Fund's focus on superior
quality issues will help minimize the effects of any widening of credit spreads
and will protect the Fund from any general deterioration of credit quality in
the municipal bond market.
AVERAGE MATURITY AND DURATION
We endeavored to hold maturity and duration within benchmark tolerances.
The Fund's maturity and duration were slightly lengthened to take advantage of
more attractive yields in the municipal bond market.
LOOKING AHEAD - THE FORECAST
We expect the demand for municipal bonds to remain strong and we anticipate
the municipal market will perform well relative to the taxable market. We
believe steady retail demand and strong institutional demand, especially
insurance property and casualty companies, will keep the market strong.
PORTFOLIO MANAGER PROFILE
--------------------------------------------------------------------------------
PETER MERZIAN, Vice President and Portfolio Manager of Firstar Investment
Research & Management Company, LLC (FIRMCO) has managed the Fund since February
2000. Peter joined FIRMCO and its affiliates in 1993 and has 12 years of
investment management experience. Peter received his BS and MBA from St. Louis
University.
<PAGE>
(LOGO) FIRSTAR FUNDS
TAX-EXEMPT LEHMAN BROTHERS
INTERMEDIATE 5-YEAR GENERAL
BOND FUND OBLIGATION BOND
2/8/93 $10,000 $10,000
10/93 10,536 10,537
10/94 10,459 10,499
10/95 11,440 11,586
10/96 11,900 12,143
10/97 12,609 12,934
10/98 13,351 13,777
10/99 13,403 13,927
10/00 14,080 14,731
This chart assumes an initial investment of $10,000 made on 2/8/93
(inception). Per formance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Performance is shown for Institutional
shares, which have lower expenses than Series A or Series B shares. If those
fees and expenses were reflected in the chart above, total return would have
been reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past performance is not predictive of future performance.
Investment return and principal value will fluctuate, so that your shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years 5 Years Since Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAX-EXEMPT INTERMEDIATE BOND FUND - INSTITUTIONAL 5.1 3.7 4.2 4.5 (2/8/93)
TAX-EXEMPT INTERMEDIATE BOND FUND - A - NO LOAD 4.8 3.5 4.0 4.3 (2/8/93)
TAX-EXEMPT INTERMEDIATE BOND FUND - A - LOAD<F1> 0.6 2.1 3.2 3.8 (2/8/93)
TAX-EXEMPT INTERMEDIATE BOND FUND - B - NO LOAD 3.9 - - 1.7 (3/1/99)
TAX-EXEMPT INTERMEDIATE BOND FUND - B - LOAD<F2> (1.1) - - (0.6) (3/1/99)
LEHMAN BROTHERS 5-YEAR GENERAL OBLIGATION BOND INDEX<F3> 5.8 4.4 4.9 5.1 (2/8/93)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A (retail class)
B = Series B (retail class)
<F1> Reflects maximum sales charge of 4.00%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The Lehman Brothers 5-Year General Obligation Bond Index, an unmanaged
index, is a total return performance benchmark for the investment-grade
tax-exempt bond market. To be included in this index, a municipal bond must be a
state or local General Obligation bond; have a minimum credit rating of at least
Baa; have been issued as part of an offering of at least $50 million; have a
maturity amount outstanding of at least $3 million; have been issued within the
last five years; and have a maturity of 4 to 6 years. The Index figures do not
reflect any fees or expenses. An investment cannot be made directly in an index.
Prior to January 10, 1995, the Fund offered investors one series of shares
with neither a sales charge nor a service fee.
Effective at the close of business January 9, 1995, Firstar Funds began to
offer Series A shares. Effective at the close of business on February 28, 1999,
Firstar Funds began to offer Series B shares. Series A shares have a 4.00%
maximum sales load and are subject to an annual 0.25% service organization fee.
The load performance for the Series A shares has been restated to reflect the
impact of the current sales charge. Series A performance prior to January 10,
1995, does not reflect the service organization fees. If service organization
fees had been reflected, performance would be reduced. Series B shares have a
5.00% maximum deferred sales charge and are subject to an annual 0.25% service
organization fee and an annual 0.75% 12b-1 fee. Performance for all share
classes reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced.
SECTOR DISTRIBUTION
10/31/00
--------------------------------------------------------------------------------
GENERAL OBLIGATIONS 16%
--------------------------------------------------------------------------------
ESCROWED/PREREFUNDED 52%
--------------------------------------------------------------------------------
INSURED 16%
--------------------------------------------------------------------------------
REVENUE 10%
--------------------------------------------------------------------------------
CASH AND OTHER 6%
--------------------------------------------------------------------------------
TOTAL 100%
--------------------------------------------------------------------------------
Quality Distribution 10/31/00
--------------------------------------------------------------------------------
Aaa 86%
--------------------------------------------------------------------------------
Aa 12%
--------------------------------------------------------------------------------
Other 2%
--------------------------------------------------------------------------------
TOTAL 100%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION 10/31/00
--------------------------------------------------------------------------------
AVERAGE MATURITY 5.1 YEARS
--------------------------------------------------------------------------------
AVERAGE DURATION 4.0 YEARS
--------------------------------------------------------------------------------
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$114,850,788
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
MISSOURI TAX-EXEMPT BOND FUND
STRATEGY
The investment objective of the Firstar Missouri Tax-Exempt Bond Fund is to
seek as high a level of interest income exempt from federal income tax as is
consistent with conservation of capital.
INVESTMENT REVIEW
Longer-term municipal bonds outperformed shorter term municipal issues.
Rate increases by the Federal Reserve over the past twelve months did not pose a
significant threat to the municipal bond market because tax-exempt issues were
in great demand.
SECTOR EXPOSURE AND CREDIT QUALITY
The portfolio's average credit rating remained very high at AA1. This
approach benefited the portfolio, as investors favored high quality, liquid
issues, in the general obligation and revenue bond categories.
AVERAGE MATURITY AND DURATION
We invested new cash in longer-term bonds in an effort to increase the
portfolio's average maturity, aiming to capture additional yield for
shareholders.
LOOKING AHEAD - THE FORECAST
We expect the demand for municipal bonds to remain strong and we anticipate
the municipal market will perform well relative to the taxable market. We
believe steady retail demand and strong institutional demand, especially
insurance property and casualty companies, will keep the market strong.
We anticipate the Missouri market's supply to remain extremely low. We will
continue to search for issues with very high credit quality and seek
opportunities to capture value in the Missouri market.
PORTFOLIO MANAGER PROFILE
--------------------------------------------------------------------------------
PETER MERZIAN, Vice President and Portfolio
Manager of Firstar Investment Research & Management Company, LLC (FIRMCO)
manages the Fund. He managed the Predecessor Mercantile Missouri Tax-Exempt Bond
Portfolio since 1993. Peter joined FIRMCO and its affiliates in 1993 and has 12
years of investment management experience. Peter received his BS and MBA from
St. Louis University.
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
MISSOURI TAX-EXEMPT LEHMAN BROTHERS
BOND FUND MUNICIPAL BOND
11/30/90 $10,000 $10,000
11/91 10,963 11,026
11/92 12,070 12,132
11/93 13,367 13,477
11/94 12,572 12,769
11/95 14,920 15,182
11/96 15,609 16,074
11/97 16,621 17,277
11/98 17,705 18,563
11/99 17,384 18,364
10/00 18,532 19,717
This chart assumes an initial investment of $10,000 made on 11/30/90. Per
formance reflects fee waivers in effect. In the absence of fee waivers, total
return would be reduced. Performance is shown for Institutional shares, which
have lower expenses than Series A or Series B shares. If those fees and expenses
were reflected in the chart above, total return would have been reduced. Returns
shown include the reinvestment of all dividends and other distributions. Past
performance is not predictive of future performance. Investment return and
principal value will fluctuate, so that your shares, when redeemed, may be worth
more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years 5Years 10 Years
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MISSOURI TAX-EXEMPT BOND FUND - INSTITUTIONAL 7.7 3.9 4.8 6.6
MISSOURI TAX-EXEMPT BOND FUND - A - NO LOAD 7.5 3.6 4.5 6.4
MISSOURI TAX-EXEMPT BOND FUND - A - LOAD<F1> 3.2 2.2 3.7 6.0
MISSOURI TAX-EXEMPT BOND FUND - B - NO LOAD 6.6 2.9 3.7 5.9
MISSOURI TAX-EXEMPT BOND FUND - B - LOAD<F2> 1.6 1.9 3.4 5.9
LEHMAN BROTHERS MUNICIPAL BOND INDEX<F3> 8.5 4.8 5.7 7.2
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = Series A (retail class)
B = Series B (retail class)
<F1> Reflects maximum sales charge of 4.00%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The Lehman Brothers Intermediate Gov't./Corp. Bond Index is an
unmanaged market value weighted index measuring both principal price
changes of, and income pro vided by, the under lying uni verse of
securities that comprise the index. Securities included in the index must
meet the follow ing critieria: fixed as opposed to variable rate; remaining
maturity of one to ten years; minimum out stand ing par value of $100
million; and rated investment grade or higher by Moody's, Standard &
Poor's, or Fitch, in that order. An investment cannot be made directly in
an index.
The Fund began operations on September 28, 1990 as the Mercantile Missouri
Tax-Exempt Bond Portfolio of the Mercantile Mutual Funds, Inc.
On December 11, 2000, the Mercantile Missouri Tax-Exempt Bond Portfolio
reorganized with the Firstar Missouri Tax-Exempt Bond Fund. The historical
returns shown are those of the Mercantile Missouri Tax-Exempt Bond Portfolio.
Retail B shares of the Mercantile Missouri Tax-Exempt Portfolio were initially
offered on March 1, 1995. The performance figures for Retail B shares for
periods prior to such date represent the performance for the Retail A shares of
the Portfolio.
Series A shares have a 4.00% maximum sales load and are subject to an annual
0.25% service organization fee. Series B shares have a 5.00% maximum deferred
sales charge and are subject to an annual 0.25% service organization fee and an
annual 0.75% 12b-1 fee. Performance for all share classes reflects fee waivers
in effect. In the absence of fee waivers, total return would be reduced.
SECTOR DISTRIBUTION
10/31/00
--------------------------------------------------------------------------------
MUNICIPALS
--------------------------------------------------------------------------------
MISSOURI 87%
--------------------------------------------------------------------------------
PUERTO RICO 7%
--------------------------------------------------------------------------------
CASH AND OTHER 6%
--------------------------------------------------------------------------------
TOTAL 100%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION 10/31/00
--------------------------------------------------------------------------------
AVERAGE MATURITY 15.0 YEARS
--------------------------------------------------------------------------------
AVERAGE DURATION 7.0 YEARS
--------------------------------------------------------------------------------
QUALITY DISTRIBUTION 10/31/00
--------------------------------------------------------------------------------
Aaa 55%
--------------------------------------------------------------------------------
Aa 39%
--------------------------------------------------------------------------------
A 4%
--------------------------------------------------------------------------------
Baa 2%
--------------------------------------------------------------------------------
Ba 0%
--------------------------------------------------------------------------------
TOTAL 100%
--------------------------------------------------------------------------------
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$149,459,827
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
NATIONAL MUNICIPAL BOND FUND
STRATEGY
The investment objective of Firstar National Municipal Bond Fund is to seek
as high a level of current income exempt from regular federal income tax as is
consistent with conservation of capital.
INVESTMENT REVIEW
Longer term municipal bonds outperformed shorter term municipal issues. The
Federal Reserve's rate increases over the past twelve months did not pose a
significant threat to the municipal bond market because tax-exempt issues were
in great demand.
SECTOR EXPOSURE AND CREDIT QUALITY
The portfolio's average credit rating remained very high at AA1. The Fund's
sector exposure was curtailed to high-quality, liquid issues, within the general
obligation and revenue categories.
AVERAGE MATURITY AND DURATION
We attempted to lengthen the portfolio while battling redemptions. Selling
shorter securities helped stabilize the portfolio's average maturity and
duration.
LOOKING AHEAD - THE FORECAST
We expect the demand for municipal bonds to remain strong and we anticipate
the municipal market will perform well relative to the taxable market. We
believe steady retail demand and strong institutional demand, especially
insurance property and casualty companies, will keep the market strong.
We will achieve and maintain an average maturity of approximately 10 years
in order to capture attractive yields for shareholders.
PORTFOLIO MANAGER PROFILE
--------------------------------------------------------------------------------
PETER MERZIAN, Vice President and Portfolio Manager of Firstar Investment
Research & Management Company, LLC (FIRMCO) manages the Fund. He managed the
Predecessor Mercantile National Municipal Bond Portfolio since it commenced
operations in 1996. Peter joined FIRMCO and its affiliates in 1993 and has 12
years of investment management experience. Peter received his BS and MBA from
St. Louis University.
<PAGE>
(LOGO) FIRSTAR FUNDS
NATIONAL MUNICIPAL LEHMAN BROTHERS
BOND FUND MUNICIPAL BOND
11/18/96 $10,000 $10,000
11/96 10,074 10,202
11/97 10,876 10,922
11/98 11,719 11,808
11/99 11,370 11,758
10/00 12,238 12,589
This chart assumes an initial investment of $10,000 made on 11/18/96
(inception). Per formance reflects fee waivers in effect. In the absence of fee
waivers, total return would be reduced. Performance is shown for Institutional
shares, which have lower expenses than Series A or Series B shares. If those
fees and expenses were reflected in the chart above, total return would have
been reduced. Returns shown include the reinvestment of all dividends and other
distributions. Past performance is not predictive of future performance.
Investment return and principal value will fluctuate, so that your shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
AVERAGE ANNUAL RATE OF RETURN (%)
FOR PERIODS ENDED OCTOBER 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
1 Year 3 Years Since Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NATIONAL MUNICIPAL BOND FUND - INSTITUTIONAL 9.4 4.2 5.2 (11/18/96)
NATIONAL MUNICIPAL BOND FUND - A - NO LOAD 9.4 4.1 5.1 (11/18/96)
NATIONAL MUNICIPAL BOND FUND - A - LOAD<F1> 5.1 2.7 4.0 (11/18/96)
NATIONAL MUNICIPAL BOND FUND - B - NO LOAD 8.4 3.2 4.2 (11/18/96)
NATIONAL MUNICIPAL BOND FUND - B - LOAD<F2> 3.4 2.3 3.5 (11/18/96)
LEHMAN BROTHERS MUNICIPAL BOND INDEX 10 Year<F3> 8.2 5.0 5.9 (10/31/96)
------------------------------------------------------------------------------------------------------------------------------------
A = Series A (retail class)
B = Series B (retail class)
<F1> Reflects maximum sales charge of 4.00%.
<F2> Reflects maximum applicable deferred sales charge.
<F3> The Lehman Brothers Municipal Bond Index-10 Year is a
widely-recognized unmanaged index that tracks the performance of municipal
bonds with remaining maturities of 10 years or less. The Index figures do
not reflect any fees or expenses. Investors cannot invest directly in an
Index.
The Fund began operations on November 18, 1996 as the Mercantile National
Municipal Bond Portfolio of the Mercantile Mutual Funds, Inc. On November 27,
2000, the Mercantile National Municipal Bond Portfolio and the Firstar Stellar
Insured Tax-Free Bond Fund reorganized into the Firstar National Municipal Bond
Fund. The historical returns shown are those of the Mercantile National
Municipal Bond Portfolio.
Series A shares have a 4.00% maximum sales load and are subject to an annual
0.25% service organization fee. The load performance for the Series A shares has
been restated to reflect the impact of the current sales charge. Series B shares
have a 5.00% maximum deferred sales charge and are subject to an annual 0.25%
service organization fee and an annual 0.75% 12b-1 fee. Performance for all
share classes reflects fee waivers in effect. In the absence of fee waivers,
total return would be reduced.
SECTOR DISTRIBUTION
10/31/00
--------------------------------------------------------------------------------
MUNICIPALS 97%
--------------------------------------------------------------------------------
CASH AND OTHER 3%
--------------------------------------------------------------------------------
TOTAL 100%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION 10/31/00
--------------------------------------------------------------------------------
AVERAGE MATURITY 14.4 YEARS
--------------------------------------------------------------------------------
AVERAGE DURATION 9.0 YEARS
--------------------------------------------------------------------------------
QUALITY DISTRIBUTION 10/31/00
--------------------------------------------------------------------------------
Aaa 70%
--------------------------------------------------------------------------------
Aa 30%
--------------------------------------------------------------------------------
TOTAL 100%
--------------------------------------------------------------------------------
TOTAL FUND NET ASSETS 10/31/00
--------------------------------------------------------------------------------
$255,983,329
--------------------------------------------------------------------------------
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF ASSETS AND LIABILITIES
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
OCTOBER 31, 2000
</TABLE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT
SHORT-TERM INTERMEDIATE SECURITIES
BOND FUND BOND FUND FUND
---------- ------------ ---------------
ASSETS:
<S> <C> <C> <C>
Investments, at value (cost $184,365, $432,862, $63,651, $125,568,
$552,212, $137,259, $113,141, $149,888 and $251,457, respectively) $183,499 $431,707 $ 62,954
Collateral received for securities loaned - 72,677 6,463
Cash - - -
Income receivable 3,198 6,200 448
Capital shares sold 232 575 18
Receivable for securities sold - - -
Deferred organization costs - - -
Other assets 19 12 2
------- ------- -------
Total Assets 186,948 511,171 69,885
------- ------- -------
LIABILITIES:
Dividends payable - - 237
Payable for securities purchased 2,433 - -
Payable to custodian - - 9
Capital shares redeemed 416 194 295
Payable for return of collateral received on securities loaned - 72,677 6,463
Payable to affiliates 114 231 41
Payable for distribution and services fees - - 1
Payable for administrative service fees - - 7
Options written, at value - - -
Accrued expenses and other liabilities 915 1,633 8
------- ------- -------
Total Liabilities 3,878 74,735 7,061
------- ------- -------
NET ASSETS $183,070 $436,436 $62,824
======== ======== =======
NET ASSETS CONSIST OF:
Capital stock $187,284 $437,430 $64,963
Undistributed net investment income (loss) 118 316 409
Distributions in excess of net investment income - - -
Undistributed accumulated net realized gains (losses) on investments (3,466) (155) (1,851)
Unrealized net appreciation (depreciation) on investments (866) (1,155) (697)
------- ------- -------
Total Net Assets $183,070 $436,436 $62,824
======== ======== =======
SERIES A:
Net assets $ 49,911 $ 27,431 $ 3,644
Shares authorized ($.0001 par value) 500,000 500,000 5,000
Shares issued and outstanding 4,919 2,711 349
Net asset value and redemption price per share <F1> $ 10.15 $ 10.12 $ 10.44
======== ======== =======
Maximum offering price per share $ 10.57 $ 10.54 $ 10.88
======== ======== =======
SERIES B:
Net assets $ 753 $ 297 $ 139
Shares authorized ($.0001 par value) 500,000 500,000 50,000
Shares issued and outstanding 74 29 13
Net asset value and offering price per share <F1><F3> $ 10.14 $ 10.11 $ 10.45
======== ======== =======
SERIES Y:
Net assets $ 5,145
Shares authorized ($.0001 par value) 20,000
Shares issued and outstanding 495
Net asset value, redemption price and offering price per share <F1> $ 10.40
SERIES INSTITUTIONAL:
Net assets $132,406 $408,708 $53,896
Shares authorized ($.0001 par value) 500,000 500,000 15,000
Shares issued and outstanding 13,047 40,393 5,164
Net asset value, redemption price and offering price per share <F1> $ 10.15 $ 10.12 $ 10.44
======== ======== =======
<F1> Amounts may not recalculate due to rounding.
<F2> No par value.
<F3> Redemption price of Series B shares varies based on length of time held.
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF ASSETS AND LIABILITIES
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
OCTOBER 31, 2000
<TABLE>
<CAPTION>
TAX-
EXEMPT MISSOURI NATIONAL
AGGREGATE BOND STRATEGIC INTER- TAX- MUNICIPAL
BOND IMMDEX/TM INCOME MEDIATE EXEMPT BOND
FUND FUND FUND BOND FUND BOND FUND
---------- ----------- ---------- --------- -------- ----------
ASSETS:
<S> <C> <C> <C> <C> <C> <C>
Investments, at value (cost $184,365,
$432,862, $63,651, $125,568,
$552,212, $137,259, $113,141,
$149,888 and $251,457, respectively) $125,006 $557,380 $128,970 $112,617 $150,149 $253,171
Collateral received for securities
loaned 21,901 38,395 - - - -
Cash - - - - 1 -
Income receivable 1,568 11,846 1,848 1,899 2,707 4,022
Capital shares sold 23 1,170 42 589 - -
Receivable for securities sold 11 - 1,195 - - -
Deferred organization costs - - - - - 7
Other assets 5 16 13 15 1 1
-------- -------- --------- -------- -------- --------
Total Assets 148,514 608,807 132,068 115,120 152,858 257,201
-------- -------- --------- -------- -------- --------
LIABILITIES:
Dividends payable 402 - 166 - 502 919
Payable for securities purchased - - 1,031 - 2,740 -
Payable to custodian 133 - 82 - - 27
Capital shares redeemed 1 7,141 75 52 60 8
Payable for return of collateral
received on securities loaned 21,901 38,395 - - - -
Payable to affiliates 82 272 174 73 88 207
Payable for distribution
and services fees 1 - - - 2 1
Payable for administrative service fees 17 - - - - -
Options written, at value - - 1,037 - - -
Accrued expenses and other liabilities 20 724 17 144 6 56
-------- -------- --------- -------- -------- --------
Total Liabilities 22,557 46,532 2,582 269 3,398 1,218
-------- -------- --------- -------- -------- --------
NET ASSETS $125,957 $562,275 $129,486 $114,851 $149,460 $255,983
======== ======== ======== ======== ======= =======
NET ASSETS CONSIST OF:
Capital stock $129,002 $554,540 $168,307 $115,538 $149,152 $256,550
Undistributed net investment
income (loss) (36) 413 (76) 45 (9) -
Distributions in excess of net
investment income - - - - - (439)
(2,447) 2,154 (29,888) (209) 56 (1,842)
Unrealized net appreciation
(depreciation) on investments (562) 5,168 (8,857) (523) 261 1,714
-------- -------- --------- -------- -------- --------
Total Net Assets $125,957 $562,275 $129,486 $114,851 $149,460 $255,983
======== ======== ======== ======== ======= =======
SERIES A:
Net assets $ 2,968 $ 82,131 $ 25 $ 15,295 $ 19,876 $ 1,526
Shares authorized ($.0001 par value) 5,000 500,000 unlimited<F2> 500,000 25,000 25,000
Shares issued and outstanding 298 2,987 3 1,506 1,722 157
Net asset value and redemption price
per share <F1> $ 9.96 $ 27.49 $ 8.46 $ 10.15 $ 11.54 $ 9.73
======== ======== ======== ======== ======= =======
Maximum offering price per share $ 10.38 $ 28.64 $ 8.81 $ 10.57 $ 12.02 $ 10.14
======== ======== ======== ======== ======= =======
SERIES B:
Net assets $ 653 $ 2,689 $129,461 $ 208 $ 2,688 $ 654
Shares authorized ($.0001 par value) 50,000 500,000 unlimited<F2> 500,000 25,000 25,000
Shares issued and outstanding 65 98 15,300 20 233 67
Net asset value and offering price
per share <F1><F3> $ 9.98 $ 27.49 $ 8.46 $ 10.16 $ 11.54 $ 9.72
======== ======== ======== ======= ======= =======
SERIES Y:
Net assets $ 14,831
Shares authorized ($.0001 par value) 20,000
Shares issued and outstanding 1,487
Net asset value, redemption price
and offering
price per share <F1> $ 9.98
========
SERIES INSTITUTIONAL:
Net assets $107,505 $477,455 $ 99,348 $126,896 $253,803
Shares authorized ($.0001 par value) 50,000 500,000 500,000 25,000 50,000
Shares issued and outstanding 10,775 17,357 9,785 10,991 26,133
Net asset value, redemption price and
offering price per share <F1> $ 9.98 $ 27.51 $ 10.15 $ 11.55 $ 9.71
======== ======== ======== ======= =======
</TABLE>
<F1> Amounts may not recalculate due to rounding.
<F2> No par value.
<F3> Redemption price of Series B shares based on length of time held.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
U.S. GOVERNMENT
SHORT-TERM INTERMEDIATE SECURITIES AGGREGATE
BOND FUND BOND FUND FUND BOND FUND
----------------- --------------- Eleven Eleven
Year Year Year Year Months Year Months Year
Ended Ended Ended Ended Ended Ended Ended Ended
Oct. 31, Oct. 31, Oct. 31, Oct. 31, Oct. 31, Nov. 30, Oct. 31, Nov. 30,
2000 1999 2000 1999 2000 1999 2000 1999
--------- -------- --------- -------- ------- -------- --------- ---------
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net investment income $ 10,485 $ 11,031 $ 24,486 $ 18,045 $ 3,390 $ 5,768 $ 7,073 $ 10,268
Net realized gain (loss) on
investments (448) (684) 26 (230) (680) (400) (1,499) (984)
Net change in unrealized appreciation
(depreciation) on investments 794 (3,714) 1,534 (11,981) 1,015 (3,562) 2,987 (11,046)
------- ------- ------- ------- ------ ------- ------- -------
Net increase (decrease) in net assets
resulting from operations 10,831 6,633 26,046 5,834 3,725 1,806 8,561 (1,762)
------- ------- ------- ------- ------ ------- ------- -------
CAPITAL SHARE TRANSACTIONS:
Shares sold 45,335 53,639 210,538 71,398 21,024 32,703 26,726 20,384
Shares issued to owners in
reinvestment of dividends 7,457 8,699 11,783 10,859 832 2,248 2,422 6,598
Shares redeemed (66,683) (57,459) (105,573) (72,617) (45,335) (49,656) (40,494) (80,613)
------- ------- ------- ------- ------ ------- ------- -------
Net increase (decrease) in net
assets resulting from
capital share transactions (13,891) 4,879 116,748 9,640 (23,479) (14,705) (11,346) (53,631)
------- ------- ------- ------- ------ ------- ------- -------
DISTRIBUTIONS TO SERIES A
SHAREHOLDERS:
From net investment income <F1> (3,113) (3,882) (1,806) (1,821) (192) (252) (175) (235)
In excess of net investment income - - - - - - - -
From net realized gains - - - (30) - - - (62)
In excess of net realized gains - - - - - - - (30)
------- ------- ------- ------- ------ ------- ------- ------
(3,113) (3,882) (1,806) (1,851) (192) (252) (175) (327)
------- ------- ------- ------- ------ ------- ------- ------
DISTRIBUTIONS TO SERIES B
SHAREHOLDERS:
From net investment income <F1> (32) (12) (15) (5) (8) (11) (31) (37)
In excess of net investment income - - - - - - - -
From net realized gains - - - - - - - (8)
In excess of net realized gains - - - - - - - (4)
------- ------- ------- ------- ------ ------- ------- ------
(32) (12) (15) (5) (8) (11) (31) (49)
------- ------- ------- ------- ------ ------- ------- ------
DISTRIBUTIONS TO SERIES Y
SHAREHOLDERS:
From net investment income <F1> (334) (319) (483) (425)
From net realized gains - - - (250)
In excess of net realized gains - - - (123)
(334) (319) (483) (798)
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREHOLDERS:
From net investment income <F1> (7,343) (7,103) (22,569) (16,154) (2,856) (5,186) (6,384) (9,571)
In excess of net investment income - - - - - - - -
From net realized gains - - - (271) - - - (2,238)
In excess of net realized gains - - - - - - - (1,101)
------- ------- ------- ------- ------ ------- ------- -------
(7,343) (7,103) (22,569) (16,425) (2,856) (5,186) (6,384) (12,910)
------- ------- ------- ------- ------ ------- ------- -------
TOTAL INCREASE (DECREASE)IN NET ASSETS (13,548) 515 118,404 (2,807) (23,144) (18,667) (9,858) (69,477)
NET ASSETS:
Beginning of year 196,618 196,103 318,032 320,839 85,968 104,635 135,815 205,292
------- ------- ------- ------- ------ ------- ------- -------
End of year (including undistributed
net investment income (loss) of $118,
$120, $316, $220, $409, $377, $(36),
$(43), $413, $377, $(76), $0, $45,
$33, $(9), $(32), $0 and $(256),
respectively) $183,070 $196,618 $436,436 $318,032 $ 62,824 $ 85,968 $125,957 $135,815
======== ======== ======== ======== ======== ======== ======== ========
<F1> For the Tax-Exempt Intermediate Bond Fund, Missouri Tax-Exempt Bond
Fund and National Municipal Bond Fund substantially all distributions
from net investment income are exempt from federal income tax.
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
BOND STRATEGIC TAX-EXEMPT MISSOURI NATIONAL
IMMDEX/TM INCOME INTERMEDIATE TAX-EXEMPT MUNICIPAL
FUND FUND BOND FUND BOND FUND BOND FUND
------------- ----------- ------------ ---------- -----------
Eleven Eleven Eleven
Year Year months Year Year Year months Year months Year
ended ended ended ended ended ended ended ende dended ended
Oct. 31, Oct. 31, Oct. 31, Nov. 30, Oct. 31, Oct. 31, Oct. 31, Nov. 30, Oct. 31, Nov. 30,
2000 1999 2000 1999 2000 1999 2000 1999 2000 1999
------- ------- ------- -------- --------- ------- --------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 34,423 $ 31,584 $ 10,123 $ 13,168 $ 3,840 $ 3,948 $ 6,093 $ 5,798 $11,254 $ 15,856
Net realized gain (loss)
on investments 2,419 (54) (7,729) (17,555) (209) 293 56 8 (1,499) (343)
Net change in unrealized
appreciation (depreciation)
on investments 148 (30,858) 6,766 (5,029) 839 (3,854) 2,814 (8,452) 9,127 (26,887)
--------- -------- --------- --------- --------- ------- --------- -------- -------- --------
Net increase (decrease) in net
assets resulting
from operations 36,990 672 9,160 (9,416) 4,470 387 8,963 (2,646) 18,882 (11,374)
--------- -------- --------- --------- --------- ------- --------- -------- -------- ---------
CAPITAL SHARE TRANSACTIONS:
Shares sold 198,226 191,150 13,000 39,164 59,116 30,647 42,757 44,357 20,093 25,914
Shares issued to owners in
reinvestment of dividends 24,546 24,755 2,818 3,845 1,432 1,857 944 1,042 75 121
Shares redeemed (182,502) (232,395) (45,669) (62,151) (31,173)(42,638) (33,729) (20,666) (100,799) (51,966)
--------- -------- --------- --------- --------- ------- --------- -------- -------- ---------
Net increase (decrease) in net
assets resulting from
capital share transactions 40,270 (16,490) (29,851) (19,142) 29,375(10,134) 9,972 24,733 (80,631) (25,931)
--------- -------- --------- --------- --------- ------- --------- -------- -------- ---------
DISTRIBUTIONS TO SERIES A
SHAREHOLDERS:
From net investment
income <F1> (5,390) (5,786) (1) - (645) (1,181) (852) (994) (60) (73)
In excess of net investment
income - - - - - - - (5) (1) (1)
From net realized gains - - - - (66) (29) (1) (32) - (10)
In excess of net realized gains - - - - - - - - - (1)
--------- -------- --------- --------- --------- ------- --------- -------- -------- --------
(5,390) (5,786) (1) - (711) (1,210) (853) (1,031) (61) (85)
--------- -------- --------- --------- --------- ------- --------- -------- -------- --------
DISTRIBUTIONS TO SERIES B
SHAREHOLDERS:
From net investment
income<F1> (135) (44) (9,846) (13,048) (5) (1) (109) (119) (22) (26)
In excess of net investment
income - - (582) (142) - - - (1) (0) (0)
From net realized gains - - - - - - (0) (4) - (4)
--------- -------- --------- --------- --------- ------- --------- -------- -------- --------
In excess of net realized
gains - - - - - - - - - (1)
--------- -------- --------- --------- --------- ------- --------- -------- -------- --------
(135) (44) (10,428) (13,190) (5) (1) (109) (124) (22) (31)
--------- -------- --------- --------- --------- ------- --------- -------- -------- --------
DISTRIBUTIONS TO SERIES Y
SHAREHOLDERS:
From net investment income<F1>
From net realized gains
In excess of net realized gains
DISTRIBUTIONS TO SERIES
INSTITUTIONAL SHAREHOLDERS:
From net investment income<F1> (28,861) (25,677) (3,177) (2,759) (5,109) (4,685) (11,172) (15,757)
In excess of net investment
income - - - - - (25) (182) (254)
From net realized gains - - (225) (52) (7) (128) - (3,239)
In excess of net realized
gains - - - - - - - (342)
--------- -------- --------- ------- --------- -------- -------- --------
(28,861) (25,677) (3,402) (2,811) (5,116) (4,838) (11,354) (19,592)
--------- -------- --------- ------- --------- -------- -------- --------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 42,874 (47,325) (31,120) (41,748) 29,727(13,769) 12,857 16,094 (73,186) (57,013)
NET ASSETS:
Beginning of year 519,401 566,726 160,606 202,354 85,124 98,893 136,603 120,509 329,169 386,182
--------- -------- --------- --------- --------- ------- --------- -------- -------- --------
End of year (including
undistributed
net investment income (loss)
of $118, $120, $316, $220,
$409, $377, $(36), $(43),
$413, $377, $(76), $0, $45,
$33, $(9), $(32), $0 and
$(256), respectively) $562,275 $519,401 $129,486 $160,606 $114,851 $85,124 $149,460 $136,603 $255,983 $329,169
========= ======== ======== ======== ======== ======= ======== ======== ======== ========
</TABLE>
<F1> For the Tax-Exempt Intermediate Bond Fund, Missouri Tax-Exempt Bond Fund
and National Municipal Bond Fund substantially all distributions from net
investment income are exempt from federal income tax.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
YEAR ENDED OCTOBER 31, 2000 U.S. GOVERNMENT
SHORT-TERM INTERMEDIATE SECURITIES AGGREGATE
BOND FUND BOND FUND FUND<F1> BOND FUND<F1>
---------- ------------ --------------- -------------
INVESTMENT INCOME:
<S> <C> <C> <C> <C>
Interest income $11,681 $26,781 $3,865 $7,912
Dividend income - - - -
Income from securities lending - - 2 19
------- ------- ------ ------
11,681 26,781 3,867 7,931
------- ------- ------ ------
EXPENSES:
Investment advisory fees 1,103 1,944 273 528
Administration fees 196 413 121 235
Service organization fees - Series A 141 76 - -
Service organization fees - Series B 2 1 - -
Service organization fees - Fund level - - - -
Fund accounting fees 93 128 16 20
Transfer agent fees and expenses 53 62 30 45
Professional fees 41 44 4 9
Custody fees 34 54 30 59
Federal and state registration fees 28 42 10 9
Reports to shareholders 27 13 18 28
Directors' fees and expenses 8 8 2 2
12b-1 fees - Series A - - 11 9
12b-1 fees - Series B 5 2 2 6
Administrative service fees - Series Y - - 19 25
Administrative service fees - Series Institutional - - 151 316
Amortization of organization costs - - - -
Other 5 8 8 12
------- ------- ------ ------
Total expenses before waiver 1,736 2,795 695 1,303
Less: Waiver of investment advisory fees (540) (500) - -
Waiver of administration fees - - (61) (117)
Waiver of custody fees - - (6) (12)
Waiver of administrative service fees -
Series Institutional - - (151) (316)
Waiver of service organization fees -
Fund level - - - -
------- ------- ------ ------
Net expenses 1,196 2,295 477 858
------- ------- ------ ------
NET INVESTMENT INCOME 10,485 24,486 3,390 7,073
------- ------- ------ ------
REALIZED AND UNREALIZED Gain (LOSS):
Net realized gain (loss) on:
Investments (448) 26 (680) (1,499)
Written options - - - -
Net change in unrealized appreciation (depreciation)
on investments 794 1,534 1,015 2,987
Net gain (loss) on investments and written options 346 1,560 335 1,488
------- ------- ------ ------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $10,831 $26,046 $3,725 $8,561
======= ======== ====== ======
</TABLE>
<F1> Results shown are for the eleven month period ended October 31, 2000.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
YEAR ENDED OCTOBER 31, 2000 TAX- MISSOURI
STRA- EXEMPT TAX- NATIONAL
BOND TEGIC INTERMEDIATE EXEMPT MUNICIPAL
IMMDEX/TM INCOME BOND BOND BOND
FUND FUND<F1> FUND FUND<F1> FUND<F1>
--------- -------- ------------ --------- ---------
INVESTMENT INCOME:
<S> <C> <C> <C> <C> <C>
Interest income $37,244 $ 6,849 $4,484 $7,017 $13,204
Dividend income - 5,057 - - -
Income from securities lending - - - - -
------- ------- ------ ------ -------
37,244 11,906 4,484 7,017 13,204
------- ------- ------ ------ -------
EXPENSES:
Investment advisory fees 1,593 1,240 450 578 1,365
Administration fees 565 144 96 257 496
Service organization fees - Series A 217 - 40 - -
Service organization fees - Series B 6 - - - -
Service organization fees - Fund level - 326 - - -
Fund accounting fees 147 46 60 11 10
Transfer agent fees and expenses 85 43 41 37 96
Professional fees 46 17 42 9 17
Custody fees 69 33 19 65 124
Federal and state registration fees 31 18 37 8 16
Reports to shareholders 38 23 11 22 49
Directors' fees and expenses 9 6 7 3 6
12b-1 fees - Series A - - - 37 3
12b-1 fees - Series B 18 - 1 29 6
Administrative service fees - Series Y - - - - -
Administrative service fees - Series Institutional - - - 321 738
Amortization of organization costs - 16 - - 7
------- ------- ------ ------ -------
Other 11 4 4 10 28
------- ------- ------ ------ -------
Total expenses before waiver 2,835 1,916 808 1,387 2,961
Less: Waiver of investment advisory fees (14) - (164) - -
Waiver of administration fees - - - (129) (248)
Waiver of custody fees - - - (13) (25)
Waiver of administrative service fees -
Series Institutional - - - (321) (738)
Waiver of service organization fees - Fund level - (133) - - -
------- ------- ------ ------ -------
(14) (133) (164) (463) (1,011)
------- ------- ------ ------ -------
Net expenses 2,821 1,783 644 924 1,950
------- ------- ------ ------ -------
NET INVESTMENT INCOME 34,423 10,123 3,840 6,093 11,254
------- ------- ------ ------ -------
REALIZED AND UNREALIZED Gain (LOSS):
Net realized gain (loss) on:
Investments 2,419 (8,509) (209) 56 (1,499)
Written options - 780 - - -
Net change in unrealized appreciation (depreciation)
on investments 148 6,766 839 2,814 9,127
------- ------- ------ ------ -------
Net gain (loss) on investments and written options 2,567 (963) 630 2,870 7,628
------- ------- ------ ------ -------
NET INCREASEIN NET ASSETS
RESULTING FROM OPERATIONS $36,990 $ 9,160 $4,470 $8,963 $18,882
======= ======= ====== ====== =======
</TABLE>
<F1> Results shown are for the eleven month period ended October 31, 2000.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
INSTITUTIONAL
BOND FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Income from Investment Operations
---------------------------------
Net Net Realized and
Asset Value, Net Unrealized Gains Total from
Beginning Investment or (Losses) on Investment
of Period Income Securities Operations
---------------------------------------------------------------------------------------------------------------------------
SHORT-TERM BOND
<S> <C> <C> <C> <C> <C>
Year Ended October 31, 1996 $10.28 $0.61<F6> $(0.03) $0.58
---------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 10.25 0.62 0.02 0.64
----------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 10.27 0.61 0.07 0.68
----------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 10.34 0.56 (0.22) 0.34
----------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 10.12 0.59 0.03 0.62
----------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND 10.21 0.59<F6> (0.02) 0.57
----------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 10.19 0.60 0.12 0.72
---------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 10.31 0.59 0.19 0.78
---------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 10.50 0.59 (0.39) 0.20
---------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 10.10 0.63 0.02 0.65
---------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES
---------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 10.85 0.66 (0.15) 0.51
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 10.67 0.61 (0.05) 0.56
---------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 10.62 0.60 0.12 0.72
---------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 10.74 0.58 (0.41) 0.17
---------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F11> 10.34 0.55 0.08 0.63
---------------------------------------------------------------------------------------------------------------------------
AGGREGATE BOND
---------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 10.53 0.67 (0.19) 0.48
---------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 10.34 0.59 0.03 0.62
---------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 10.37 0.60 0.37 0.97
---------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 10.74 0.60 (0.69) (0.09)
---------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F11> 9.86 0.55 0.12 0.67
---------------------------------------------------------------------------------------------------------------------------
BOND IMMDEX/TM
---------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 27.82 1.70<F6> (0.27) 1.43
---------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 27.55 1.75 0.61 2.36
---------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 28.16 1.72 0.85 2.57
---------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 29.02 1.70 (1.65) 0.05
---------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 27.37 1.94 0.13 2.07
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
FINANCIAL HIGHLIGHTS
INSTITUTIONAL
BOND FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Less Distributions Supplemental Data and Ratios
------------------------------------ -------------------------------------------------
Ratio
Net Ratio of of Net
Dividends Distri- Asset Net Net Investment
from Net butions Value, Assets, Expenses Income
Investment from Total End End of to Average to Portfolio
Income Capital Distri- of Total Period Net Average Turnover
Gains butions Period Return (000s) Assets Net Assets Rate<F7>
-----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM BOND
<S> <C> <C> <C> <C> <C> <C>
Year Ended October 31, 1996 $(0.61) $ - $(0.61) $10.25 5.80% $147,466 0.50%<F1> 5.92% 59.62%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 (0.62) - (0.62) 10.27 6.47% 136,084 0.50%<F1> 6.04% 77.12%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 (0.61) - (0.61) 10.34 6.84% 120,693 0.50%<F1> 5.92% 78.20%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 (0.56) - (0.56) 10.12 3.42% 130,611 0.56%<F1> 5.52% 52.28%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 (0.59) - (0.59) 10.15 6.32% 132,406 0.57%<F1> 5.80% 31.87%
-----------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND
Year Ended October 31, 1996 (0.59) - (0.59) 10.19 5.77% 173,468 0.50%<F2> 5.84% 59.29%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 (0.60) - (0.60) 10.31 7.36% 254,521 0.50%<F2> 5.96% 40.61%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 (0.59) - (0.59) 10.50 7.83% 291,289 0.50%<F2> 5.75% 27.29%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 (0.59) (0.01) (0.60) 10.10 1.91% 284,047 0.56%<F2> 5.71% 64.07%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 (0.63) - (0.63) 10.12 6.67% 408,708 0.57%<F2> 6.33% 17.91%
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT
SECURITIES
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 (0.66) (0.03) (0.69) 10.67 4.88% 60,079 0.67%<F3> 6.10% 53.76%
<F9>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 (0.61) - (0.61) 10.62 5.51% 72,753 0.67%<F3> 5.84% 100.33%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 (0.60) - (0.60) 10.74 6.98% 93,683 0.67%<F3> 5.64% 54.57%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 (0.57) - (0.57) 10.34 1.67% 72,483 0.68%<F3> 5.45% 26.17%
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 200011 (0.53) - (0.53) 10.44 6.34% 53,896 0.74% 5.66% 22.73%
<F8> <F12> <F3><F12> <F8>
-----------------------------------------------------------------------------------------------------------------------------------
AGGREGATE BOND
Year Ended November 30, 1996 (0.67) - (0.67) 10.34 4.82% 141,440 0.65% <F4> 6.36% 149.20%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 (0.59) - (0.59) 10.37 6.32% 172,637 0.65%<F4> 5.85% 140.72%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 (0.60) - (0.60) 10.74 9.63% 178,868 0.66%<F4> 5.71% 91.14%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 (0.59) (0.20) (0.79) 9.86 (0.83)% 126,472 0.67%<F4> 5.84% 38.29%
<F10>
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000 (0.55) - (0.55) 9.98 6.98% 107,505 0.70% 6.06% 24.93%
<F11> <F8> <F4><F12> <F12> <F8>
-----------------------------------------------------------------------------------------------------------------------------------
BOND IMMDEX/TM
Year Ended October 31, 1996 (1.70) - (1.70) 27.55 5.35% 370,556 0.43%<F5> 6.23% 33.38%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 (1.75) - (1.75) 28.16 8.90% 408,018 0.42%<F5> 6.33% 35.12%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 (1.71) - (1.71) 29.02 9.41% 471,425 0.42%<F5> 6.02% 20.07%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 (1.70) - (1.70) 27.37 0.20% 421,897 0.47%<F5> 6.05% 57.04%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 (1.93) - (1.93) 27.51 7.29% 477,455 0.49%<F5> 6.55% 25.34%
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Without fees waived, ratios of net expenses to average net assets for
the fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would
have been 0.87%, 0.84%, 0.86%, 0.86%, 0.87%, respectively.
<F2> Without fees waived, ratios of net expenses to average net assets for
the fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would
have been 0.70%, 0.70%, 0.71%, 0.73%, 0.74%, respectively.
<F3> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000 and the fiscal years ended November 30,
1999, 1998, 1997, 1996 would have been 1.15%, 1.09%, 1.07%, 1.07%, 0.77%,
respectively.
<F4> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000 and the fiscal years ended November
30, 1999, 1998, 1997, 1996 would have been 1.11%, 1.08%, 1.06%, 1.05%,
0.75%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for
the fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would
have been 0.49%, 0.48%, 0.49%, 0.49%, 0.50%, respectively.
<F6> Net investment income per share is calculated using ending balances
prior to consideration of adjustments for permanent book and tax
differences.
<F7> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F8> Not annualized.
<F9> Includes distributions in excess of net realized gains of $0.03 per
share.
<F10> Includes distributions in excess of net realized gains of $0.07 per
share.
<F11> Effective in 2000, the Fund's fiscal year end was changed to October
31 from November 30.
<F12> Annualized.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
INSTITUTIONAL
BOND FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Income from Investment Operations
------------------------------------------
Net Net Realized and
Asset Value, Net Unrealized Gains Total from
Beginning Investment or (Losses) on Investment
of Period Income2 Securities Operations
-----------------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT INTERMEDIATE BOND
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Year Ended October 31, 1996 $10.24 $0.43<F6> $(0.03) $0.40
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 10.21 0.44 0.15 0.59
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 10.36 0.44 0.16 0.60
---------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 10.52 0.44 (0.40) 0.04
---------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 10.12 0.43 0.06 0.49
---------------------------------------------------------------------------------------------------------------------------------
MISSOURI TAX-EXEMPT BOND
---------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 11.74 0.57 (0.05) 0.52
---------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 11.69 0.56 0.18 0.74
---------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 11.87 0.55 0.21 0.76
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 12.08 0.53 (0.74) (0.21)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F12> 11.32 0.50 0.23 0.73
-----------------------------------------------------------------------------------------------------------------------------------
NATIONAL MUNICIPAL BOND
-----------------------------------------------------------------------------------------------------------------------------------
November 18, 19961 to November 30, 1996 10.00 0.02 0.05 0.07
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 10.05 0.54 0.23 0.77
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 10.28 0.46 0.30 0.76
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 10.23 0.43 (0.72) (0.29)
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F12> 9.41 0.39 0.31 0.70
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> For the Tax-Exempt Intermediate Bond Fund, Missouri Tax-Exempt Bond Fund
and National Municipal Bond Fund, substantially all investment income
is exempt from federal income tax.
<F3> Without fees waived, ratios of net expenses to average net assets for
the fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would have
been 0.85%, 0.82%, 0.81%, 0.88%, 0.97%, respectively.
<F4> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000 and the fiscal years ended November
30, 1999, 1998, 1997, 1996 would have been 1.08%, 1.07%, 1.06%, 1.06%,
0.75%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000, the fiscal years ended November 30,
1999, 1998, 1997 and the period ended November 30, 1996 would have been
1.19%, 1.16%, 1.16%, 1.17%, 0.82%, respectively.
<F6> Net investment income per share is calculated using ending balances
prior to consideration of adjustments for permanent book and tax
differences.
<F7> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F8> Not annualized.
<F9> Annualized.
<F10> Includes distributions in excess of net investment income and net
realized gains of $0.01 and $0.01 per share, respectively.
<F11> Includes distributions in excess of net investment income of $0.02 per
share.
<F12> Effective in 2000, the Fund's fiscal year end was changed to October 31
from November 30.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
INSTITUTIONAL
BOND FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Less Distributions Supplemental Data and Ratios
------------------------------------- ---------------------------------
Ratio of Net
Ratio Invest-
Divi- Net of Net ment
dends Distri- Net Assets, Expenses Income
Net butions Asset End to to
Invest- from Total Value, of Average Average Portfolio
ment Capital Distri- End Total Period Net Net Turnover
Income Gains butions of Period Return (000s) Assets Assets Rate<F7>
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TAX-EXEMPT INTERMEDIATE
BOND
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 $(0.43) $ - $(0.43) $10.21 4.02% $36,652 0.50% 4.24% 30.46%
<F3>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 (0.44) - (0.44) 10.36 5.96% 52,208 0.50% 4.36% 11.22%
<F3>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 (0.44) - (0.44) 10.52 5.88% 66,427 0.50% 4.25% 14.38%
<F3>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 (0.43) (0.01) (0.44) 10.12 0.39% 65,034 0.64% 4.16% 21.77%
<F3>
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 (0.43) (0.03) (0.46) 10.15 5.05% 99,348 0.67% 4.32% 17.92%
<F3>
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI TAX-EXEMPT BOND
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 (0.57) - (0.57) 11.69 4.62% 55,905 0.65% 4.95% 3.66%
<F4>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 (0.56) - (0.56) 11.87 6.48% 75,431 0.66% 4.76% 3.50%
<F4>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 0.55) - (0.55) 12.08 6.52% 94,402 0.66% 4.57% 6.14%
<F4>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 0.53) (0.02) (0.55) 11.32 (1.81)% 111,842 0.66% 4.51% 0.76%
<F4>
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F12> (0.50) - (0.50) 11.55 6.60% 126,896 0.67% 4.79% 2.61%
<F8> <F4><F9> <F9> <F8>
------------------------------------------------------------------------------------------------------------------------------------
NATIONAL MUNICIPAL BOND
------------------------------------------------------------------------------------------------------------------------------------
November 18, 19961 to
November 30, 1996 (0.02) - (0.02) 10.05 0.74%8 310,413 0.12% 5.77% -
<F8> <F5><F9> <F9>
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 (0.54) - (0.54) 10.28 7.97% 366,889 0.14% 5.38% 83.94%
<F5>
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 (0.46) (0.35) (0.81) 10.23 7.76% 384,518 0.56% 4.52% 18.30%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 (0.43) (0.10) (0.53) 9.41 (2.97)% 326,840 0.76% 4.33% -
<F10> <F10> <F5>
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F12> (0.40) - (0.40) 9.71 7.63% 253,803 0.78% 4.54% 3.69%
<F11> <F8> <F5><F9> <F9> <F8>
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> For the Tax-Exempt Intermediate Bond Fund, Missouri Tax-Exempt Bond
Fund and National Municipal Bond Fund, substantially all investment income
is exempt from federal income tax.
<F3> Without fees waived, ratios of net expenses to average net assets for
the fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would
have been 0.85%, 0.82%, 0.81%, 0.88%, 0.97%, respectively.
<F4> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000 and the fiscal years ended November
30, 1999, 1998, 1997, 1996 would have been 1.08%, 1.07%, 1.06%, 1.06%,
0.75%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000, the fiscal years ended November 30,
1999, 1998, 1997 and the period ended November 30, 1996 would have been
1.19%, 1.16%, 1.16%, 1.17%, 0.82%, respectively.
<F6> Net investment income per share is calculated using ending balances
prior to consideration of adjustments for permanent book and tax
differences.
<F7> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F8> Not annualized.
<F9> Annualized.
<F10> Includes distributions in excess of net investment income and net
realized gains of $0.01 and $0.01 per share, respectively.
<F11> Includes distributions in excess of net investment income of $0.02
per share.
<F12> Effective in 2000, the Fund's fiscal year end was changed to October
31 from November 30.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
RETAIL A SHARE
BOND FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Income from Investment Operations
-----------------------------------------------
Asset Value, Net Unrealized Gains Total from
Beginning Investment or (Losses) on Investment
of Period Income Securities Operations
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM BOND
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Year Ended October 31, 1996 $10.28 $0.58<F7> $(0.03) $0.55
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 10.25 0.60 0.02 0.62
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 10.27 0.58 0.07 0.65
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 10.34 0.54 (0.22) 0.32
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 10.12 0.57 0.03 0.60
------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 10.21 0.56<F7> (0.02) 0.54
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 10.19 0.58 0.12 0.70
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 10.31 0.57 0.19 0.76
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 10.50 0.56 (0.39) 0.17
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 10.10 0.61 0.02 0.63
------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 10.85 0.62 (0.15) 0.47
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 10.67 0.60 (0.07) 0.53
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 10.62 0.57 0.12 0.69
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 10.74 0.54 (0.40) 0.14
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F13> 10.34 0.53 0.08 0.61
------------------------------------------------------------------------------------------------------------------------------------
AGGREGATE BOND
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 10.53 0.64 (0.19) 0.45
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 10.34 0.56 0.01 0.57
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 10.35 0.57 0.37 0.94
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 10.72 0.57 (0.69) (0.12)
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F13> 9.84 0.52 0.12 0.64
------------------------------------------------------------------------------------------------------------------------------------
BOND IMMDEX/TM
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 27.82 1.617 (0.26) 1.35
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 27.54 1.66 0.64<F12> 2.30
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 28.16 1.64 0.85 2.49
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 29.01 1.64<F12> (1.66) (0.02)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 27.36 1.71<F12> 0.13 1.84
------------------------------------------------------------------------------------------------------------------------------------
<F1> The total return calculation does not reflect the maximum sales charge
of 4.00%.
<F2> Without fees waived, ratios of net expenses to average net assets for
the fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would
have been 1.12%, 1.09%, 1.11%, 1.11%, 1.12%, respectively.
<F3> Without fees waived, ratios of net expenses to average net assets for
the fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would
have been 0.95%, 0.95%, 0.96%, 0.98%, 0.99%, respectively.
<F4> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000 and the fiscal years ended November
30, 1999, 1998, 1997, 1996 would have been 1.15%, 1.09%, 1.07%, 1.07%,
1.07%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000 and the fiscal years ended November
30, 1999, 1998, 1997, 1996 would have been 1.11%, 1.08%, 1.06%, 1.05%,
1.05%, respectively.
<F6> Without fees waived, ratios of net expenses to average net assets for
the fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would
have been 0.74%, 0.74%, 0.74%, 0.74%, 0.75%, respectively.
<F7> Net investment income per share is calculated using ending balances
prior to consideration of adjustments for permanent book and tax
differences.
<F8> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F9> Not annualized.
<F10> Includes distributions in excess of net realized gains of $0.03 per
share.
<F11> Includes distributions in excess of net realized gains of $0.07 per
share.
<F12> Net investment income per share represents net investment income
divided by the average shares outstanding throughout the period.
<F13> Effective in 2000, the Fund's fiscal year end was changed to October
31 from November 30.
<F14> Annualized.
See notes to the financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS
RETAIL A SHARE
BOND FUNDS
PER SHARE DATA
</TABLE>
<TABLE>
<CAPTION>
Less Distributions Supplemental Data and Ratios
---------------------------------- -----------------------------------------------
Ratio of
Ratio Invest-
Divi- Net of Net ment
dends Distri Net Assets, Expenses Income
Net butions Asset End to to Portfolio
Invest- from Total Value, Total of Average Average Turnover
ment Capital Distri- End Return Period Net Net Rate
Income Gains butions of Period <F1> (000s) Assets Assets <F8>
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM BOND
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended October 31, 1996 $(0.58) $ - $(0.58) $10.25 5.54% $58,843 0.75%<F2> 5.67% 59.62%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 (0.60) - (0.60) 10.27 6.21% 65,567 0.75%<F2> 5.79% 77.12%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 (0.58) - (0.58) 10.34 6.58% 75,410 0.75%<F2> 5.67% 78.20%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 (0.54) - (0.54) 10.12 3.16% 65,490 0.81%<F2> 5.27% 52.28%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 (0.57) - (0.57) 10.15 6.05% 49,911 0.82%<F2> 5.55% 31.87%
------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 (0.56) - (0.56) 10.19 5.51% 17,392 0.75%<F3> 5.59% 59.29%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 (0.58) - (0.58) 10.31 7.09% 20,691 0.75%<F3> 5.71% 40.61%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 (0.57) - (0.57) 10.50 7.57% 29,550 0.75%<F3> 5.50% 27.29%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 (0.56) (0.01) (0.57) 10.10 1.66% 33,779 0.81%<F3> 5.47% 64.07%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 (0.61) - (0.61) 10.12 6.41% 27,431 0.82%<F3> 6.08% 17.91%
------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 (0.62) (0.03) (0.65) 10.67 4.57% 7,153 0.97%<F4> 5.82% 53.76%
<F10>
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 (0.58) - (0.58) 10.62 5.20% 5,181 0.97%<F4> 5.56% 100.33%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 (0.57) - (0.57) 10.74 6.66% 4,664 0.97%<F4> 5.35% 54.57%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 (0.54) - (0.54) 10.34 1.37% 4,620 0.98%<F4> 5.15% 26.17%
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F13> (0.51) - (0.51) 10.44 6.05%<F9> 3,644 1.04%<F4><F14> 5.36%<F14> 22.73%<F8>
------------------------------------------------------------------------------------------------------------------------------------
AGGREGATE BOND
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 (0.64) - (0.64) 10.34 4.51% 4,915 0.95%<F5> 6.06% 149.20%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 (0.56) - (0.56) 10.35 5.78% 4,774 0.95%<F5> 5.46% 140.72%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 (0.57) - (0.57) 10.72 9.31% 4,927 0.96%<F5> 5.41% 91.14%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 (0.56)(0.20)<F11> (0.76) 9.84 (1.13)% 3,878 0.97%<F5> 5.54% 38.29%
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F13> (0.52) - (0.52) 9.96 6.70%<F9> 2,968 1.00% 5.76%<F14> 24.93%<F8>
<F5><F14>
------------------------------------------------------------------------------------------------------------------------------------
BOND IMMDEX/TM
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 (1.63) - (1.63) 27.54 5.06% 42,671 0.68%<F6> 5.98% 33.38%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 (1.68) - (1.68) 28.16 8.68% 64,144 0.67%<F6> 6.08% 35.12%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 (1.64) - (1.64) 29.01 9.11% 95,301 0.67%<F6> 5.77% 20.07%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 (1.63) - (1.63) 27.36 (0.05)% 95,635 0.72%<F6> 5.80% 57.04%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 (1.71) - (1.71) 27.49 6.99% 82,131 0.74%<F6> 6.30% 25.34%
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> The total return calculation does not reflect the maximum sales charge
of 4.00%.
<F2> Without fees waived, ratios of net expenses to average net assets for
the fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would
have been 1.12%, 1.09%, 1.11%, 1.11%, 1.12%, respectively.
<F3> Without fees waived, ratios of net expenses to average net assets for
the fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would
have been 0.95%, 0.95%, 0.96%, 0.98%, 0.99%, respectively.
<F4> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000 and the fiscal years ended November
30, 1999, 1998, 1997, 1996 would have been 1.15%, 1.09%, 1.07%, 1.07%,
1.07%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000 and the fiscal years ended November
30, 1999, 1998, 1997, 1996 would have been 1.11%, 1.08%, 1.06%, 1.05%,
1.05%, respectively.
<F6> Without fees waived, ratios of net expenses to average net assets for
the fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would
have been 0.74%, 0.74%, 0.74%, 0.74%, 0.75%, respectively.
<F7> Net investment income per share is calculated using ending balances
prior to consideration of adjustments for permanent book and tax
differences.
<F8> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F9> Not annualized.
<F10> Includes distributions in excess of net realized gains of $0.03 per
share.
<F11> Includes distributions in excess of net realized gains of $0.07 per
share.
<F12> Net investment income per share represents net investment income
divided by the average shares outstanding throughout the period.
<F13> Effective in 2000, the Fund's fiscal year end was changed to October
31 from November 30.
<F14> Annualized.
See notes to the financial statements.
<PAGE>
(logo) firstar funds
FINANCIAL HIGHLIGHTS
RETAIL A SHARE
BOND FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Income from Investment Operations
--------------------------------------------
Net Net Realized and
Asset Value, Net Unrealized Gains Total from
Beginning Investment or (Losses) on Investment
of Period Income<F2> Securities Operations
------------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
March 31, 2000<F1> through October 31, 2000<F15> 8.32 $0.36 $ 0.16 $0.52
------------------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT INTERMEDIATE BOND
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 10.23 0.40<F8> (0.01) 0.39
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 10.21 0.42 0.14 0.56
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 10.35 0.41 0.17 0.58
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 10.52 0.42 (0.40) 0.02
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 10.12 0.42 0.06 0.48
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI TAX-EXEMPT BOND
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 11.74 0.55 (0.05) 0.50
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 11.69 0.53 0.18 0.71
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 11.87 0.52 0.21 0.73
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 12.08 0.50 (0.74) (0.24)
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F15> 11.31 0.48 0.23 0.71
------------------------------------------------------------------------------------------------------------------------------------
NATIONAL MUNICIPAL BOND
------------------------------------------------------------------------------------------------------------------------------------
November 18, 19961 through
November 30, 1996 10.00 0.02 0.05 0.07
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 10.05 0.52 0.22 0.74
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 10.27 0.44 0.30 0.74
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 10.22 0.41 (0.69) (0.28)
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F15> 9.43 0.37 0.31 0.68
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> For the Tax-Exempt Intermediate Bond Fund, Missouri Tax-Exempt Bond Fund
and National Municipal Bond Fund, substantially all investment income is
exempt from federal income tax.
<F3> The total return calculation does not reflect the maximum sales charge of
4.00%.
<F4> Without fees waived, the ratio of net expenses to average net assets for
the period ended October 31, 2000 would have been 1.48%.
<F5> Without fees waived, ratios of net expenses to average net assets for the
fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would have been
1.10%, 1.07%, 1.06%, 1.13%, 1.22%, respectively.
<F6> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000 and the fiscal years ended November 30,
1999, 1998, 1997, 1996 would have been 0.98%, 1.07%, 1.06%, 1.06%, 1.05%,
respectively.
<F7> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000, the fiscal years ended November 30,1999,
1998, 1997 and the period ended November 30, 1996 would have been 1.09%,
1.16%, 1.16%, 1.17%, 1.07%, respectively.
<F8> Net investment income per share is calculated using ending balances
prior to consideration of adjustments for permanent book and tax
differences.
<F9> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F10> Not annualized.
<F11> Annualized.
<F12> Includes distributions in excess of net income and net realized gains of
$0.01 and $0.01 per share, respectively.
<F13> Includes distributions in excess of net investment income of $0.02 per
share.
<F14> Incurred class specific gains. The total return excluding this would
have been (3.14)%.
<F15> Effective in 2000, the Fund's fiscal year end was changed to October 31
from November 30.
See notes to the financial statements.
<PAGE>
<TABLE>
<CAPTION>
Less Distributions Supplemental Data and Ratios
------------------------------ -----------------------------------------------
Ratio of Net
Ratio Invest-
Divi- Net of Net ment
dends Distri Net Assets, Expenses Income
Net butions Asset End to to Portfolio
Invest- from Total Value, Total of Average Average Turnover
ment Capital Distri- End Return Period Net Net Rate
Income Gains butions of Period <F3> (000s) Assets Assets <F9>
------------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C. <C> <C> <C> <C>
March 31, 20001 through
------------------------------------------------------------------------------------------------------------------------------------
October 31, 2000<F15> $(0.38) $ - $(0.38) $ 8.46 6.38% $ 25 1.39% 7.58% 63.29%
<F10> <F4><F11> <F11>
------------------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT INTERMEDIATE BOND
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 (0.41) - (0.41) 10.21 3.87% 10,690 0.75%<F5> 3.99% 30.46%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 (0.42) - (0.42) 10.35 5.60% 19,199 0.75%<F5> 4.11% 11.22%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 (0.41) - (0.41) 10.52 5.73% 32,466 0.75%<F5> 4.00% 14.38%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 (0.41) (0.01) (0.42) 10.12 0.14% 20,016 0.89%<F5> 3.91% 21.77%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 (0.41) (0.04) (0.45) 10.15 4.79% 15,295 0.92%<F5> 4.07% 17.82%
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI TAX-EXEMPT BOND
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 0.55) - (0.55) 11.69 4.41% 25,144 0.85% <F6> 4.75% 3.66%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 (0.53) - (0.53) 11.87 6.27% 23,722 0.86%<F6> 4.57% 3.50%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 (0.52) - (0.52) 12.08 6.31% 23,611 0.86%<F6> 4.38% 6.14%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 (0.51) (0.02) (0.53) 11.31 (2.09)% 21,242 0.86%<F6> 4.30% 0.76%
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000 (0.48) - (0.48) 11.54 6.41% 19,876 0.87% 4.59% 2.61%
<F15> <F10> <F6><F11> <F11> <F10>
------------------------------------------------------------------------------------------------------------------------------------
NATIONAL MUNICIPAL BOND
------------------------------------------------------------------------------------------------------------------------------------
November 18, 19961 through
November 30, 1996 (0.02) - (0.02) 10.05 0.73%10 1 0.37% 9.08% -
<F10> <F7><F11> <F11>
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 (0.52) - (0.52) 10.27 7.61% 717 0.35%<F7> 4.71% 83.94%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 (0.44) (0.35) (0.79) 10.22 7.56% 1,162 0.85%<F7> 4.18% 18.30%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 (0.41) (0.10) (0.51) 9.43 (2.87)% 1,582 0.96%<F7> 4.14% -
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 200015 (0.38) - (0.38) 9.73 7.43% 1,526 0.98% 4.34% 3.69%
<F13> <F10> <F7><F11> <F11> <F10>
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> For the Tax-Exempt Intermediate Bond Fund, Missouri Tax-Exempt Bond Fund
and National Municipal Bond Fund, substantially all investment income is
exempt from federal income tax.
<F3> The total return calculation does not reflect the maximum sales charge of
4.00%.
<F4> Without fees waived, the ratio of net expenses to average net assets for
the period ended October 31, 2000 would have been 1.48%.
<F5> Without fees waived, ratios of net expenses to average net assets for the
fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would have been
1.10%, 1.07%, 1.06%, 1.13%, 1.22%, respectively.
<F6> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000 and the fiscal years ended November 30,
1999, 1998, 1997, 1996 would have been 0.98%, 1.07%, 1.06%, 1.06%, 1.05%,
respectively.
<F7> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000, the fiscal years ended November 30,1999,
1998, 1997 and the period ended November 30, 1996 would have been 1.09%,
1.16%, 1.16%, 1.17%, 1.07%, respectively.
<F8> Net investment income per share is calculated using ending balances
prior to consideration of adjustments for permanent book and tax
differences.
<F9> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F10> Not annualized.
<F11> Annualized.
<F12> Includes distributions in excess of net income and net realized gains of
$0.01 and $0.01 per share, respectively.
<F13> Includes distributions in excess of net investment income of $0.02 per
share.
<F14> Incurred class specific gains. The total return excluding this would
have been (3.14)%.
<F15> Effective in 2000, the Fund's fiscal year end was changed to October 31
from November 30.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
RETAIL B SHARE
BOND FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Income from Investment Operations
--------------------------------------------
Net Net Realized and
Asset Value, Net Unrealized Gains Total from
Beginning Investment or (Losses) on Investment
of Period Income Securities Operations
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM BOND
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
March 1, 1999<F1> through October 31, 1999 $10.23 $0.31<F11> $(0.09) $0.22
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 10.12 0.48 0.03 0.51
------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND
------------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through October 31, 1999 10.31 0.31<F11> (0.21) 0.10
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 10.09 0.53<F11> 0.02 0.55
------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 10.84 0.55 (0.15) 0.40
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 10.66 0.51 (0.05) 0.46
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 10.61 0.50<F11> 0.13 0.63
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 10.74 0.47<F11> (0.38) 0.09
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F2> 10.36 0.45<F11> 0.08 0.53
------------------------------------------------------------------------------------------------------------------------------------
AGGREGATE BOND
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 10.53 0.57 (0.19) 0.38
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 10.34 0.49 0.03 0.52
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 10.37 0.50 0.38 0.88
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 10.75 0.49 (0.69) (0.20)
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F2> 9.86 0.45 0.12 0.57
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
BOND IMMDEX/TM
------------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through October 31, 1999 28.34 0.92<F11> (0.91) 0.01
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 27.36 1.53 0.13 1.66
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> Effective in 2000, the Fund's fiscal year end was changed to October
31 from November 30.
<F3> The total return calculation does not reflect the maximum deferred
sales charge of 5.00%.
<F4> Without fees waived, ratios of net expenses to average net assets for
the fiscal year ended October 31, 2000 and the period ended October 31,
1999 would have been 1.87%, 1.85%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for
the fiscal year ended October 31, 2000 and the period ended October 31,
1999 would have been 1.70%, 1.71%, respectively.
<F6> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000 and the fiscal years ended November 30,
1999, 1998, 1997, 1996 would have been 1.85%, 1.79%, 1.77%, 1.77%, 1.76%,
respectively.
<F7> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000 and the fiscal years ended November
30, 1999, 1998, 1997, 1996 would have been 1.81%, 1.78%, 1.76%, 1.75%,
1.75%, respectively.
<F8> Not annualized.
<F9> Annualized.
<F10> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F11> Net investment income per share represents net investment income
divided by the average shares outstanding throughout the period.
<F12> Includes distributions in excess of net realized gains of $0.03 per share.
<F13> Includes distributions in excess of net realized gains of $0.07 per share.
<F14> Without fees waived, ratio of net expenses to average net assets for
the fiscal year ended October 31, 2000 would have been 1.49%.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
RETAIL B SHARE
BOND FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Ratio of Net
Ratio Invest-
Divi- Net of Net ment
dends Distri Net Assets, Expenses Income
Net butions Asset End to to Portfolio
Invest- from Total Value, Total of Average Average Turnover
ment Capital Distri- End Return Period Net Net Rate
Income Gains butionsof Period <F3> (000s) Assets Assets <F10>
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
March 1, 1999<F1> through
October 31, 1999 $(0.33) $ - $(0.33) $10.12 2.18% $ 517 1.57% 4.58% 52.28%
<F8> <F4><F9> <F9>
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 (0.49) - (0.49) 10.14 5.13% 753 1.57%4 4.80% 31.87%
------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND
------------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through
October 31, 1999 (0.32) - (0.32) 10.09 1.02% 206 1.57% 4.87% 64.07%
<F8> <F5><F9> <F9>
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 (0.53) - (0.53) 10.11 5.65% 297 1.57%<F5> 5.33% 17.91%
------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT
SECURITIES
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 (0.55) (0.03) (0.58) 10.66 3.85% 359 1.66% 5.06% 53.76%
<F12> <F6>
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 (0.51) - (0.51) 10.61 4.47% 466 1.67%<F6> 4.84% 100.33%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 (0.50) - (0.50) 10.74 6.02% 149 1.67%<F6> 4.67% 54.57%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 (0.47) - (0.47) 10.36 0.86% 282 1.68%<F6> 4.47% 26.17%
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F2> (0.44) - (0.44) 10.45 5.27% 139 1.74% 4.66% 22.73%
<F8> <F6><F9> <F9>
------------------------------------------------------------------------------------------------------------------------------------
AGGREGATE BOND
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 (0.57) - (0.57) 10.34 3.79% 511 1.65%<F7> 5.37% 149.20%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 (0.49) - (0.49) 10.37 5.26% 545 1.65%<F7> 4.84% 140.72%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 (0.50) - (0.50) 10.75 8.65% 662 1.66%<F7> 4.70% 91.14%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 (0.49) (0.20) (0.69) 9.86 (1.90)% 712 1.67%<F7> 4.85% 38.29%
<F13>
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F2> (0.45) - (0.45) 9.98 6.01% 653 1.70% 5.06% 24.93%
<F8> <F7><F9> <F9>
------------------------------------------------------------------------------------------------------------------------------------
BOND IMMDEX/TM
------------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through
October 31, 1999 (0.99) - (0.99) 27.36 0.04% 1,869 1.49%9 5.06% 57.04%
<F8> <F9>
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 (1.53) - (1.53) 27.49 6.22% 2,689 1.49% 5.55% 25.34%
<F14>
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> Effective in 2000, the Fund's fiscal year end was changed to October
31 from November 30.
<F3> The total return calculation does not reflect the maximum deferred
sales charge of 5.00%.
<F4> Without fees waived, ratios of net expenses to average net assets for
the fiscal year ended October 31, 2000 and the period ended October 31,
1999 would have been 1.87%, 1.85%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for
the fiscal year ended October 31, 2000 and the period ended October 31,
1999 would have been 1.70%, 1.71%, respectively.
<F6> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000 and the fiscal years ended November 30,
1999, 1998, 1997, 1996 would have been 1.85%, 1.79%, 1.77%, 1.77%, 1.76%,
respectively.
<F7> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000 and the fiscal years ended November
30, 1999, 1998, 1997, 1996 would have been 1.81%, 1.78%, 1.76%, 1.75%,
1.75%, respectively.
<F8> Not annualized.
<F9> Annualized.
<F10> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F11> Net investment income per share represents net investment income
divided by the average shares outstanding throughout the period.
<F12> Includes distributions in excess of net realized gains of $0.03 per share.
<F13> Includes distributions in excess of net realized gains of $0.07 per share.
<F14> Without fees waived, ratio of net expenses to average net assets for
the fiscal year ended October 31, 2000 would have been 1.49%.
See notes to the financial statements.
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
RETAIL B SHARE
BOND FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Income from Investment Operations
--------------------------------------------------------------
Net Net Realized and
Asset Value, Net Unrealized Gains Total from
Beginning Investment or (Losses) on Investment
of Period Income2 Securities Operations
------------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Year Ended November 30, 1996 $10.53 $0.73 $(0.04) $0.69
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 10.50 0.73 0.18 0.91
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 10.67 0.72 (0.94) (0.22)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 9.62 0.64 (1.10) (0.46)
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F14> 8.52 0.60 (0.04) 0.56
------------------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT INTERMEDIATE BOND
------------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through October 31, 1999 10.51 0.22<F11> (0.38) (0.16)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 10.12 0.35 0.06 0.41
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI TAX-EXEMPT BOND
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 11.74 0.45 (0.06) 0.39
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 11.68 0.44 0.18 0.62
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 11.86 0.43 0.21 0.64
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 12.07 0.41 (0.73) (0.32)
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F14> 11.31 0.39 0.23 0.62
------------------------------------------------------------------------------------------------------------------------------------
NATIONAL MUNICIPAL BOND
------------------------------------------------------------------------------------------------------------------------------------
November 18, 19961 through
November 30, 1996 10.00 0.02 0.05 0.07
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 10.05 0.44 0.24 0.68
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 10.29 0.36 0.30 0.66
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 10.24 0.33 (0.72) (0.39)
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F14> 9.41 0.31 0.31 0.62
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> For the Tax-Exempt Intermediate Bond Fund, Missouri Tax-Exempt Bond Fund
and National Municipal Bond Fund, substantially all investment income is
exempt from federal income tax.
<F3> The total return calculation does not reflect the maximum deferred sales
charge of 5.00%.
<F4> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000 and the fiscal years ended November
30, 1999, 1998, 1997, 1996 would have been 1.47%, 1.44%, 1.46%, 1.46%,
1.56%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for
the fiscal year ended October 31, 2000 and the period ended October 31,
1999 would have been 1.85%, 1.85%, respectively.
<F6> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000 and the fiscal years ended November
30, 1999, 1998, 1997, 1996 would have been 1.78%, 1.77%, 1.76%, 1.76%,
1.75%, respectively.
<F7> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000 and the fiscal years ended November 30,
1999, 1998, 1997 and the period ended November 30, 1996 would have been
1.89%, 1.86%, 1.86%, 1.89%, 1.80%, respectively.
<F8> Not annualized.
<F9> Annualized.
<F10> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F11> Net investment income per share represents net investment income divided
by the average shares outstanding throughout the period.
<F12> Includes distributions in excess of net investment income of $0.04 per
share.
<F13> Includes distributions in excess of net investment income and net
realized gains of $0.01 and $0.01 per share, respectively.
<F14> Effective in 2000, the Fund's fiscal year end was changed to October 31
from November 30.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
RETAIL B SHARE
BOND FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Less Distributions Supplemental Data and Ratios
---------------------------------- -----------------------------------------------
Ratio of Net
Ratio Invest-
Divi- Net of Net ment
dends Distri Net Assets, Expenses Income
Net butions Asset End to to Portfolio
Invest- from Total Value, Total of Average Average Turnover
ment Capital Distri- End Return Period Net Net Rate
Income Gains butionsof Period <F3> (000s) Assets Assets <F10>
------------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended November 30, 1996 $(0.72) $ - (0.72) $10.50 6.99% $110,775 1.36%<F4> 7.26% 201.00%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 (0.74) - (0.74) 10.67 9.02% 179,413 1.26%<F4> 7.13% 142.00%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 (0.73) (0.10) (0.83) 9.62 (2.16)% 202,354 1.26%<F4> 7.19% 146.00%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 (0.64) - (0.64) 8.52 (4.99)% 160,605 1.28%<F4> 6.95% 73.00%
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F14> (0.62) - (0.62) 8.46 6.85% 129,461 1.37% 7.76% 63.29%
<F12> <F8> <F4><F9> <F9> <F8>
------------------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT INTERMEDIATE BOND
------------------------------------------------------------------------------------------------------------------------------------
March 1, 1999<F1> through
October 31, 1999 (0.23) - (0.23) 10.12 (1.55)% 74 1.67% 3.25% 21.77%
<F8> <F5><F9> <F9>
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 (0.34) (0.03) (0.37) 10.16 3.87% 208 1.67%5 3.32% 17.92%
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI TAX-EXEMPT BOND
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 (0.45) - (0.45) 11.68 3.48% 675 1.65%<F6> 3.96% 3.66%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 (0.44) - (0.44) 11.86 5.43% 1,398 1.66% <F6> 3.76% 3.50%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 (0.43) - (0.43) 12.07 5.47% 2,496 1.66%<F6> 3.57% 6.14%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 (0.42) (0.02) (0.44) 11.31 (2.79)% 3,519 1.66%<F6> 3.51% 0.76%
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000 (0.39) - (0.39) 11.54 5.64% 2,688 1.67% 3.79% 2.61%
<F14> <F8> <F6><F9> <F8>
------------------------------------------------------------------------------------------------------------------------------------
NATIONAL MUNICIPAL BOND
------------------------------------------------------------------------------------------------------------------------------------
November 18, 1996<F1> through
November 30, 1996 (0.02) - (0.02) 10.05 0.70% 1 1.10% 8.35% -
<F8> <F7><F9> <F9>
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 (0.44) - (0.44) 10.29 7.01% 408 1.17%7 4.08% 83.94%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 (0.36) (0.35) (0.71) 10.24 6.69% 503 1.56%7 3.51% 18.30%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 (0.34)13 (0.10)13 (0.44) 9.41 (4.03)% 747 1.76%7 3.34% -
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F14> (0.31) - (0.31) 9.72 6.77% 654 1.78% 3.54% 3.69%
<F8> <F8> <F7><F9> <F9>
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Commencement of operations.
<F2> For the Tax-Exempt Intermediate Bond Fund, Missouri Tax-Exempt Bond Fund
and National Municipal Bond Fund, substantially all investment income is
exempt from federal income tax.
<F3> The total return calculation does not reflect the maximum deferred sales
charge of 5.00%.
<F4> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000 and the fiscal years ended November
30, 1999, 1998, 1997, 1996 would have been 1.47%, 1.44%, 1.46%, 1.46%,
1.56%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for
the fiscal year ended October 31, 2000 and the period ended October 31,
1999 would have been 1.85%, 1.85%, respectively.
<F6> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000 and the fiscal years ended November
30, 1999, 1998, 1997, 1996 would have been 1.78%, 1.77%, 1.76%, 1.76%,
1.75%, respectively.
<F7> Without fees waived, ratios of net expenses to average net assets for
the period ended October 31, 2000 and the fiscal years ended November 30,
1999, 1998, 1997 and the period ended November 30, 1996 would have been
1.89%, 1.86%, 1.86%, 1.89%, 1.80%, respectively.
<F8> Not annualized.
<F9> Annualized.
<F10> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F11> Net investment income per share represents net investment income divided
by the average shares outstanding throughout the period.
<F12> Includes distributions in excess of net investment income of $0.04 per
share.
<F13> Includes distributions in excess of net investment income and net
realized gains of $0.01 and $0.01 per share, respectively.
<F14> Effective in 2000, the Fund's fiscal year end was changed to October 31
from November 30.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
CLASS Y SHARE
BOND FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Income from Investment Operations
---------------------------------
Net Net Realized and
Asset Value, Net Unrealized Gains Total from
Beginning Investment or (Losses) on Investment
of Period Income Securities Operations
------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Year Ended November 30, 1996 $10.82 $0.62 $(0.15) $0.47
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 10.64 0.56 (0.04) 0.52
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 10.58 0.57 0.12 0.69
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 10.70 0.53 (0.38) 0.15
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 20001 10.31 0.53 0.07 0.60
------------------------------------------------------------------------------------------------------------------------------------
AGGREGATE BOND
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 10.53 0.64 (0.19) 0.45
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 10.34 0.56 0.03 0.59
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 10.37 0.57 0.37 0.94
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 10.74 0.567 (0.68) (0.12)
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 20001 9.86 0.527 0.12 0.64
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Effective in 2000, the Fund's fiscal year end was changed to
October 31 from November 30.
<F2> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F3> Without fees waived, ratios of net expenses to average net assets for the
fiscal year ended October 31, 2000 and the fiscal years
ended November 30, 1999, 1998, 1997, 1996 would have been 1.15%, 1.09%,
1.07%, 1.07%, 1.06%, respectively.
<F4> Without fees waived, ratios of net expenses to average net assets for the
fiscal year ended October 31, 2000 and the fiscal years
ended November 30, 1999, 1998, 1997, 1996 would have been 1.11%, 1.08%,
1.06%, 1.05%, 1.05%, respectively.
<F5> Includes distributions in excess of net realized gains of $0.03 per share.
<F6> Includes distributions in excess of net realized gains of $0.07 per share.
<F7> Net investment income per share represents net investment income divided
by the average shares outstanding throughout the period.
<F8> Annualized.
<F9> Not annualized.
See notes to the financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS
CLASS Y SHARE
BOND FUNDS
PER SHARE DATA
<TABLE>
<CAPTION>
Less Distributions Supplemental Data and Ratios
---------------------------------------- -----------------------------------
Ratio of Net
Ratio Invest-
Divi- Net of Net ment
dends Distri Net Assets, Expenses Income
Net butions Asset End to to Portfolio
Invest- from Total Value, of Average Average Turnover
ment Capital Distri- End Total Period Net Net Rate
Income Gains butionsof Period Return (000s) Assets Assets <F2>
------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended November 30, 1996 $(0.62) $(0.03) $(0.65) $10.64 4.55% 2,232 0.96% 5.75% 53.76%
------------------------------------------------------------------------------------------------------------------------------------
<F5> <F3>
Year Ended November 30, 1997 (0.58) - (0.58) 10.58 5.10% 7,049 0.97%<F3> 5.52% 100.33%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 (0.57) - (0.57) 10.70 6.67% 6,140 0.97%<F3> 5.34% 54.57%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 (0.54) - (0.54) 10.31 1.45% 8,584 0.98%<F3> 5.17% 26.17%
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F1> (0.51) - (0.51) 10.40 5.96% 5,145 1.04% 5.36% 22.73%
<F1> <F9> <F3><F8> <F8> <F9>
------------------------------------------------------------------------------------------------------------------------------------
AGGREGATE BOND
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 (0.64) - (0.64) 10.34 4.51% 14,875 0.95%<F4> 6.06% 149.20%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 (0.56) - (0.56) 10.37 6.00% 16,954 0.95%<F4> 5.55% 140.72%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 (0.57) - (0.57) 10.74 9.30% 20,835 0.96%<F4> 5.41% 91.14%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 (0.56) (0.20) (0.76) 9.86 (1.12)% 4,753 0.97%<F4> 5.49% 38.29%
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F1> (0.52) - (0.52) 9.98 6.71% 14,831 1.00% 5.76% 24.93%
<F9> <F4><F8> <F8> <F9>
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Effective in 2000, the Fund's fiscal year end was changed to
October 31 from November 30.
<F2> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
<F3> Without fees waived, ratios of net expenses to average net assets for the
fiscal year ended October 31, 2000 and the fiscal years
ended November 30, 1999, 1998, 1997, 1996 would have been 1.15%, 1.09%,
1.07%, 1.07%, 1.06%, respectively.
<F4> Without fees waived, ratios of net expenses to average net assets for the
fiscal year ended October 31, 2000 and the fiscal years
ended November 30, 1999, 1998, 1997, 1996 would have been 1.11%, 1.08%,
1.06%, 1.05%, 1.05%, respectively.
<F5> Includes distributions in excess of net realized gains of $0.03 per share.
<F6> Includes distributions in excess of net realized gains of $0.07 per share.
<F7> Net investment income per share represents net investment income divided
by the average shares outstanding throughout the period.
<F8> Annualized.
<F9> Not annualized.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SHORT-TERM BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
LONG-TERM INVESTMENTS 97.2%
ASSET-BACKED SECURITIES 23.2%
AUTO LOAN RECEIVABLES 1.9%
Honda Auto Lease Trust,
$ 3,500 Series 1999-A, Class A5, 6.65%, 7/15/05 $ 3,487
--------
CREDIT CARD RECEIVABLES 5.5%
Citibank Credit Card Master Trust I, Principal Only:
5,220 Series 1996-1, Class A, 0.00%, 2/07/01 5,126
1,500 Series 1997-6, Class A, 0.00%, 8/15/06 1,160
Discover Card Master Trust I,
2,200 Series 1993-3, Class A, 6.20%, 5/16/06 2,166
Household Affinity Credit Card Master Trust I,
138 Series 1993-2, Class A, 5.60%, 11/15/00 137
Sears Credit Account Master Trust:
141 Series 1995-2, Class A, 8.10%, 1/15/01 141
1,417 Series 1996-1, Class A, 6.20%, 3/15/02 1,411
--------
10,141
--------
HOME EQUITY LOAN RECEIVABLES 15.8%
Advanta Home Equity Loan Trust:
567 Series 1992-3, Class A1, 6.05%, 9/25/08 552
1,029 Series 1993-2, Class A2, 6.15%, 10/25/09 1,007
558 Series 1993-3, Class A1, 4.90%, 1/25/10 551
1,076 Series 1993-4, Class A1, 5.50%, 3/25/10 1,038
AFC Home Equity Loan Trust:
1,219 Series 1993-1, Class 1A, 5.90%, 5/20/08 1,197
1,006 Series 1993-4, Class 1A, 5.80%, 2/26/24 973
1,016 Series 1994-1, Class 1A, 6.40%, 5/25/25 1,002
Amresco Residential Securities Mortgage Loan,
740 Series 1998-2, Class A2, 6.245%, 4/25/22 734
BankAmerica Manufactured Housing Contract,
3,500 Series 1997-2, Class A6, 6.47%, 4/10/15 3,473
Contimortgage Home Equity Loan Trust,
447 Series 1997-4, Class A4, 6.30%, 7/15/12 446
Corestates Home Equity Trust,
1,167 Series 1996-1, Class A3, 7.00%, 12/15/09 1,167
EQCC Home Equity Loan Trust:
1,333 Series 1993-3, Class A, 5.15%, 9/15/08 1,292
971 Series 1993-4, Class A, 5.725%, 12/15/08 952
1,087 Series 1996-2, Class A2, 7.125%, 12/15/10 1,088
Equivantage Home Equity:
1,677 Series 1996-1, Class A, 6.55%, 10/25/25 1,660
3,796 Series 1996-4, Class A, 6.75%, 1/25/28 3,686
GE Home Equity Loan Asset-Backed Certificates:
1,473 Series 1991-1, Class B, 8.70%, 9/15/11 1,469
2,000 Series 1996-HE1, Class A4, 7.30%, 2/25/25 1,996
IMC Home Equity Loan Trust,
30 Series 1997-3, Class A4, 6.84%, 10/20/13 30
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
HOME EQUITY LOAN RECEIVABLES 15.8% (CONT.)
The Money Store Home Equity Trust:
$ 603 Series 1993-B, Class A2, 6.975%, 7/15/08 $ 601
230 Series 1995-C, Class A3, 6.55%, 9/15/21 229
1,366 Series 1993-B, Class A3, 6.10%, 5/15/22 1,345
969 Series 1997-B, Class A3, 6.90%, 7/15/38 957
UCFC Home Equity Loan:
417 Series 1993-B2, Class A2, 6.20%, 7/25/14 407
595 Series 1996-C1, Class A4, 7.475%, 3/15/20 595
462 Series 1995-A2, Class A7, 8.30%, 2/10/26 461
--------
28,908
--------
CORPORATE BONDS 32.8%
ABN AMRO Bank Guarantee,
1,750 6.625%, 10/31/01 1,747
AT&T Capital Corp. Company Guarantee:
2,000 6.875%, 1/16/01 2,000
3,295 6.25%, 5/15/01 3,286
America West Airlines Pass-Thru
Certificates, 1,467 8.54%, 1/02/06
(Acquired 9/14/99, Cost $1,467)<F1> 1,464
Associated P&C Holdings Senior Notes,
2,000 6.75%, 7/15/03 (Acquired
9/03/99, Cost $1,925)<F1> 1,952
AVCO Financial Services Medium Term Notes,
1,100 5.75%, 1/23/06 1,096
Bankers Trust Subordinated Debentures,
1,310 8.125%, 5/15/02 1,334
Bankers Trust Subordinated Notes,
1,500 8.125%, 4/01/02 1,525
Bear Stearns Company Senior Notes,
800 9.375%, 6/01/01 810
Beneficial Corp. Notes,
800 8.20%, 3/15/02 812
Compass Bancshares, Inc.,
2,000 8.375%, 9/15/04 2,073
Dillard Investment Debentures,
2,000 9.25%, 2/01/01 2,009
Donaldson, Lufkin & Jenrette Senior Notes,
4,000 6.00%, 12/01/01 3,967
Dynegy, Inc. Senior Notes,
2,000 6.875%, 7/15/02 1,984
First Chicago Corporation Subordinated Notes,
2,491 11.25%, 2/20/01 2,520
First Interstate Bancorp Subordinated Notes,
2,000 10.875%, 4/15/01 2,031
Fleet Financial Group Subordinated Notes,
950 6.875%, 3/01/03 947
General Motors Acceptance Corporation,
1,000 7.50%, 7/15/05 1,009
Goldman Sachs Group Notes,
2,000 6.25%, 2/01/03 (Acquired 6/30/99,
Cost $1,961)<F1> 1,962
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
SHORT-TERM BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
CORPORATE BONDS 32.8% (CONT.)
Household Finance Corporation Senior Notes,
$ 1,000 6.125%, 7/15/12 $ 982
Lehman Brothers Holdings, Inc. Notes,
2,000 8.75%, 5/15/02 2,042
Lehman Brothers Holdings, Inc. Senior Notes,
5,370 7.125%, 9/15/03 5,334
Marlin Water Trust Senior Notes,
1,500 7.09%, 12/15/01 (Acquired 12/08/98;
Cost $1,492)<F1> 1,491
The Money Store Company Guarantee,
1,740 8.05%, 4/15/02 1,766
The Money Store Subordinated Notes,
1,350 7.30%, 12/01/02 1,360
Osprey Trust Secured Notes,
1,750 8.31%, 1/15/03 (Acquired 9/16/99,
Cost $1,750)<F1> 1,768
Paine Webber Group Inc. Notes,
1,025 6.45%, 12/01/03 1,011
JC Penney Company, Inc. Notes,
2,000 7.25%, 4/01/02 1,800
Transamerica Financial Corp. Senior Notes,
1,900 6.125%, 11/01/01 1,886
USF&G Corporation Senior Notes,
1,455 8.375%, 6/15/01 1,466
Worldcom, Inc. Senior Notes,
4,472 8.875%, 1/15/06 4,607
--------
60,041
--------
MORTGAGE-BACKED SECURITIES 2.7%
Collateralized Mortgage Obligation Trust,
682 Series 15, Class E, 5.00%, 3/20/18 641
Green Tree Financial Corp. Pass-Thru Certificates:
594 Series 1994-A, Class A, 7.05%, 3/15/14 587
730 Series 1992-2, Class A4, 8.15%, 1/15/18 735
211 Series 1993-3, Class A5, 5.75%, 10/15/18 210
1,000 Series 1995-5, Class A5, 6.90%, 9/15/26 998
244 Series 1996-1, Class A3, 6.20%, 3/15/27 242
Prudential Securities Financial Asset
Funding Corp.,
41 Series 1993-4, Class A3, 6.83%, 9/25/09 40
Prudential Securities Secured Financing Corp.:
367 Series 1998-C1, Class A1, 6.105%, 11/15/02 364
1,082 Series 1994-5, Class A1, 5.66%, 5/25/24 1,044
--------
4,861
--------
INTERNATIONAL/YANKEE (U.S. $ DENOMINATED) 1.9%
Ford Capital BV Debentures,
1,450 9.875%, 5/15/02 1,508
Korea Development Bank Bonds,
2,000 7.125%, 9/17/01 1,988
--------
3,496
--------
Principal Amount Market Value
(in thousands) (in thousands)
---------------- -------------
OTHER 0.2%
Florida Housing Finance Agency:
$ 70 Antigua Club-A-2, 8.625%, 8/01/01 $ 70
175 Brittany Apartments-C-2, 8.625%, 8/01/02 178
150 Maitland Club-B-2, 8.625%, 8/01/01 151
--------
399
--------
U.S. GOVERNMENT AGENCY-BACKED
MORTGAGE ISSUES 7.7%
Federal Home Loan Mortgage Corporation
(FHLMC)
Participation Certificates:
4,000 7.375%, 5/15/03 4,086
71 7.75%, 7/01/09 71
Federal Home Loan Mortgage Corporation
(FHLMC)
Real Estate Mortgage Investment Conduit
(REMIC),
452 Series 1022, Class J, 6.00%, 12/15/20 435
Federal National Mortgage Association
(FNMA)
5,400 7.00%, 7/15/05 5,498
Real Estate Mortgage Investment Conduit
(REMIC):
375 Series 1991-63, Class G, 6.95%, 5/25/06 373
3,600 Series 1996-W4, Class A4, 6.743%,
12/25/11 3,570
--------
14,033
--------
U.S. TREASURY OBLIGATIONS 28.7%
U.S. Treasury Bonds:
18,150 10.75%, 2/15/03 19,965
11,750 11.875%, 11/15/03 13,654
U.S. Treasury Notes,
18,800 6.375%, 8/15/02 18,916
--------
52,535
--------
Total Long-Term Investments
(Cost $178,767) 177,901
--------
Number of Shares
(in thousands)
----------------
SHORT-TERM INVESTMENTS 3.1%
INVESTMENT COMPANIES 3.1%
2,470 Financial Square Prime Obligation Fund 2,470
3,128 Short-Term Investments Co. Liquid
Assets Portfolio 3,128
--------
Total Short-Term Investments (Cost $5,598) 5,598
--------
Total Investments (Cost $184,365) 100.3% 183,499
--------
Liabilities, less Other Assets (0.3)% (429)
--------
TOTAL NET ASSETS 100.0% $183,070
========
<F1>Unregistered security
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
LONG-TERM INVESTMENTS 94.6%
ASSET-BACKED SECURITIES 9.5%
AUTO LOAN RECEIVABLES 0.7%
Honda Auto Lease Trust,
$ 3,000 Series 1999-A, Class A5, 6.65%,
7/15/05 $ 2,989
--------
CREDIT CARD RECEIVABLES 3.7%
American Express Master Trust,
2,000 Series 1994-2, Class A, 7.60%, 8/15/02 2,012
Chemical Master Credit Card Trust,
633 Series 1995-3, Class A, 6.23%, 8/15/02 628
Citibank Credit Card Master Trust I,
Principal Only:
11,900 Series 1996-1, Class A, 0.00%, 2/07/01 11,686
1,875 Series 1997-6, Class A, 0.00%, 8/15/06 1,450
Household Affinity Credit Card
Master Trust I,
275 Series 1993-2, Class A, 5.60%, 11/15/00 275
--------
16,051
--------
HOME EQUITY LOAN RECEIVABLES 5.1%
Advanta Home Equity Loan Trust:
465 Series 1993-1, Class A1, 5.95%, 3/25/09 452
652 Series 1993-1, Class A2, 5.95%, 5/25/09 636
AFC Home Equity Loan Trust:
1,464 Series 1993-4, Class 1A, 5.80%, 2/26/24 1,416
2,094 Series 1996-4, Class 1A7, 6.86%, 3/25/27 2,059
Contimortgage Home Equity Loan Trust:
2,236 Series 1997-4, Class A4, 6.30%, 7/15/12 2,228
2,950 Series 1997-5, Class A5, 6.63%, 12/15/20 2,903
981 Series 1997-2, Class A9, 7.09%, 4/15/28 977
3,007 Series 1997-3, Class A9, 7.12%, 8/15/28 2,971
Corestates Home Equity Trust,
535 Series 1996-1, Class A3, 7.00%, 12/15/09 535
Delta Funding Home Equity Loan Trust,
2,000 Series 1997-4, Class A5F, 6.67%, 1/25/28 1,956
EQCC Home Equity Loan
Trust:
55 Series 1994-4, Class A3, 8.68%, 10/15/08 55
641 Series 1993-4, Class A, 5.725%, 12/15/08 628
829 Series 1994-1, Class A, 5.80%, 3/15/09 811
2,000 Series 1996-1, Class A4, 6.56%, 3/15/23 1,980
1,850 Series 1997-1, Class A7, 7.12%, 5/15/28 1,851
UCFC Home Equity Loan,
735 Series 1995-C2, Class A6, 6.825%,
10/10/26 730
--------
22,188
--------
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
CORPORATE BONDS 33.6%
ABN AMRO Bank Guarantee,
$ 1,600 7.25%, 5/31/05 $ 1,604
Aetna Services, Inc. Company Guarantee,
3,000 6.75%, 8/15/01 2,995
Aetna Services, Inc. Debentures,
1,375 6.75%, 9/15/13 1,289
Air 2 US,
1,000 10.127%, 10/01/20 1,036
American West Airlines, Pass-Thru
Certificates,
2,087 8.54%, 1/02/06 (Acquired 9/14/99,
Cost $2,087)<F1> 2,082
Amsouth Bancorp Subordinated Notes,
1,500 7.75%, 5/15/04 1,499
Associated P&C Holdings Senior Notes,
1,500 6.75%, 7/15/03 (Acquired 9/03/99,
Cost $1,431)<F1> 1,464
AT&T Capital Corporation Company Guarantee:
2,000 6.25%, 5/15/01 1,995
1,075 6.75%, 2/04/02 1,065
BankAmerica Corporation Subordinated Notes,
2,000 10.00%, 2/01/03 2,117
BankBoston Notes,
1,450 6.375%, 4/15/08 1,363
Bankers Trust - NY Subordinated Debentures,
6,000 8.125%, 5/15/02 6,110
Bank of Oklahoma Subordinated Notes,
1,300 7.125%, 8/15/07 1,229
Bear Stearns Company Senior Notes:
2,000 9.375%, 6/01/01 2,024
150 6.25%, 7/15/05 142
Caterpillar, Inc. Sinking Fund Debentures,
1,634 9.75%, 6/01/19 1,706
Chase Manhattan Corp. Subordinated Notes,
2,300 9.375%, 7/01/01 2,335
Conectiv, Inc. Medium Term Notes,
3,000 6.73%, 6/01/06 2,963
Continental Airlines Inc. Pass-Thru
Certificates,
1,457 6.80%, 7/02/07 1,403
Continental Bank N.A. Subordinated Notes,
2,875 12.50%, 4/01/01 2,935
Continental Cablevision, Inc. Debentures,
4,525 9.50%, 8/01/13 4,909
Dillard Investment Debentures,
1,895 9.25%, 2/01/01 1,903
Donaldson, Lufkin & Jenrette, Inc.
Senior Notes,
3,000 5.875%, 4/01/02 2,956
Dynegy, Inc. Senior Notes,
2,100 6.875%, 7/15/02 2,084
Federal Express Corporation Notes,
1,500 9.65%, 6/15/12 1,658
Federal Express Sinking Fund Pass-Thru
Certificates,
748 7.89%, 9/23/08 742
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
CORPORATE BONDS 33.6% (CONT.)
First Interstate Bancorp Subordinated Notes:
$ 2,350 10.875%, 4/15/01 $ 2,386
500 9.90%, 11/15/01 515
First National Bank Omaha
Subordinated Notes,
1,600 7.32%, 12/01/10 1,515
First USA Bank Senior Notes,
1,000 5.85%, 2/22/01 997
Ford Motor Credit Co. Notes:
2,575 8.20%, 2/15/02 2,614
1,000 9.03%, 12/30/09 1,046
FPL Group Capital, Inc. Guaranteed Notes,
1,500 7.625%, 9/15/06 1,525
General Motors Acceptance Corp. Notes,
1,000 9.625%, 12/15/01 1,029
Georgia Pacific Corp. Debentures:
1,150 9.50%, 12/01/11 1,226
775 9.50%, 5/15/22 769
Goldman Sachs Group Notes,
5,000 6.25%, 2/01/03 (Acquired 2/01/96,
Cost $4,988)<F1> 4,905
Homeside, Inc. Senior Notes,
1,000 11.25%, 5/15/03 1,074
Lehman Brothers Holdings, Inc. Notes:
1,500 6.65%, 11/08/00 1,500
1,212 8.875%, 3/01/02 1,238
800 8.75%, 5/15/02 817
2,700 7.50%, 9/01/06 2,646
Lehman Brothers, Inc. Debentures:
1,000 6.125%, 2/01/01 998
2,450 11.625%, 5/15/05 2,824
Marlin Water Trust Senior Notes,
2,492 7.09%, 12/15/01 (Acquired 12/08/98,
Cost $2,492)<F1> 2,477
The May Department Stores Debentures,
2,000 9.875%, 6/15/21 2,107
Merrill Lynch & Company Notes,
7,000 5.75%, 11/04/02 6,843
National Westminster Bank Debentures,
1,700 9.375%, 11/15/03 1,810
National Westminster Bank Subordinated Notes,
700 9.45%, 5/01/01 709
NCNB Corp. Subordinated Notes,
2,380 10.20%, 7/15/15 2,812
Newcourt Credit Group Notes:
1,785 7.125%, 12/17/03 (Acquired 9/14/99,
Cost $1,772)<F1> 1,742
1,800 6.875%, 2/16/05 (Acquired 3/16/99,
Cost $1,032)<F1> 1,702
News America Holdings Debentures,
750 10.125%, 10/15/12 810
Northwest Airlines Pass-Thru Certificates:
800 8.13%, 2/01/14 777
811 7.248%, 7/02/14 721
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
CORPORATE BONDS 33.6% (CONT.)
Oneok, Inc. Notes,
$ 1,100 7.75%, 8/15/06 $ 1,114
Osprey Trust Secured Notes,
2,300 8.31%, 1/15/03 (Acquired 9/16/99,
Cost $2,300)<F1> 2,324
Paine Webber Group, Inc. Notes:
3,000 7.115%, 1/27/04 3,014
500 8.875%, 3/15/05 534
Principal Financial Group Senior Notes,
4,500 8.20%, 8/15/09 (Acquired 8/18/99,
Cost $4,486)<F1> 4,536
PSI Energy, Inc. Debentures,
1,600 7.85%, 10/15/07 1,584
JC Penney Company, Inc. Debentures:
1,950 9.75%, 6/15/21 1,283
875 8.25%, 8/15/22 453
Rochester Telephone Corporation Debentures,
1,000 9.00%, 8/15/21 990
Salomon, Inc. Senior Notes,
1,100 6.75%, 2/15/03 1,095
Sears Roebuck Acceptance Corporation Notes,
1,300 6.25%, 5/01/09 1,136
Security Capital Group, Inc. Medium
Term Notes,
1,700 7.75%, 11/15/03 1,687
Security Pacific Corp. Subordinated Notes,
1,158 11.00%, 3/01/01 1,171
Standard Federal Bancorp Medium Term Notes,
2,155 7.75%, 7/17/06 2,227
Toll Road Investors Debentures,
Principal Only,
4,800 0.00%, 2/15/04 (Acquired 4/23/99,
Cost $3,591)<F1> 3,797
Transamerica Finance Corporation Senior
Notes,
3,225 6.125%, 11/01/01 3,201
United Airlines Pass-Thru Certificates,
3,055 7.27%, 1/30/13 2,891
United HealthCare Corporation Notes,
5,000 6.60%, 12/01/03 (Acquired 11/19/98,
Cost $4,989)<F1> 4,840
Westdeutsche Landesbank Subordinated
Notes,
3,000 6.75%, 6/15/05 2,945
--------
146,564
--------
MORTGAGE-BACKED SECURITIES 3.6%
Advanta Mortgage Loan Trust,
1,058 Series 1997-1, Class A5, 7.35%, 5/25/27 1,059
Amresco Residential Securities Mortgage Loan,
2,936 6.96%, 3/25/27 2,906
Green Tree Financial Corporation Pass-
Thru Certificates:
836 Series 1994-4, Class A4, 7.95%, 7/15/19 842
5,927 Series 1997-E, Class HEA6, 6.62%, 1/15/29 5,873
MDC Asset Investors Trust,
Real Estate Mortgage Investment Conduit
(REMIC),
403 Series VIII, Class 8, 7.75%, 9/25/17 406
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
MORTGAGE-BACKED SECURITIES 3.6% (CONT.)
Prudential Securities Financial Asset Funding Corp.,
$ 1,157 Series 1993-8, Class A, 5.775%, 11/15/14 $ 1,131
Prudential Securities Secured Financing Corp.:
282 Series 1993-1, Class A, 6.44%, 2/16/21 278
1,322 Series 1994-5, Class A1, 5.66%, 5/25/25 1,277
Residential Asset Securities Corporation,
1,000 Series 1998-KS1, Class AI9, 6.445%, 3/25/28 973
Salomon Brothers Mortgage Securities VI,
715 Series 1986-1, Class A, 6.00%, 12/25/11 697
Westam Mortgage Financial Corporation,
550 Series 11, Class A, 6.36%, 8/26/20 535
--------
15,977
--------
INTERNATIONAL/YANKEE (U.S. $ DENOMINATED) 7.1%
Banco Santander-Chile Notes,
3,450 6.50%, 11/01/05 3,335
British Sky Broadcasting Subordinated
Debentures,
1,130 6.875%, 2/23/09 967
Corp Andina De Fomento Notes,
750 7.75%, 3/01/04 755
Dresdner Bank Subordinated Debentures,
650 7.25%, 9/15/15 606
Ford Capital BV Debentures:
175 9.875%, 5/15/02 182
600 9.50%, 6/01/10 655
Hydro-Quebec Corporation Debentures,
2,250 11.75%, 2/01/12 3,006
Korea Development Bank Bonds,
1,075 7.125%, 9/17/01 1,069
Korea Electric Power Debentures:
3,000 8.00%, 7/01/02 2,992
820 7.75%, 4/01/13 754
750 6.75%, 8/01/27 709
Metronet Communications Corp. Senior Notes:
2,000 9.95%, 6/15/08 1,621
2,000 10.625%, 11/01/08 2,206
Midland Bank PLC Subordinated Notes,
4,225 6.95%, 3/15/11 4,010
National Bank of Hungary Debentures,
1,350 8.875%, 11/01/13 1,432
Norsk Hydro A/S Debentures,
1,350 9.00%, 4/15/12 1,491
Pohang Iron & Steel Notes,
875 7.125%, 7/15/04 843
Sanwa Bank Ltd. Subordinated Notes,
2,000 8.35%, 7/15/09 1,990
Wharf Capital International Ltd. Notes:
800 8.875%, 11/01/04 828
1,725 7.625%, 3/13/07 1,637
--------
31,088
--------
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
U.S. GOVERNMENT AGENCY-BACKED
MORTGAGE ISSUES 14.4%
Federal Farm Credit Bank (FFCB):
$ 5,000 5.75%, 9/01/05 $ 4,828
3,000 5.93%, 6/10/08 2,858
5,000 5.24%, 10/01/08 4,539
Federal Home Loan Bank (FHLB):
4,000 6.09%, 6/02/06 3,909
5,500 5.795%, 6/19/08 5,221
3,000 7.375%, 2/12/10 3,136
Federal Home Loan Mortgage Corporation
(FHLMC):
8,000 6.875%, 1/15/05 8,095
9,000 6.625%, 9/15/09 8,933
Real Estate Mortgage Investment Conduit
(REMIC):
226 Series 1551, Class E, 6.50%, 9/15/07 225
340 Series 1167, Class E, 7.50%, 11/15/21 342
1,004 Series 1286, Class A, 6.00%, 5/15/22 963
Federal National Mortgage Association (FNMA):
6,000 6.40%, 9/27/05 5,950
5,000 7.125%, 3/15/07 5,141
Real Estate Mortgage Investment Conduit
(REMIC):
429 Series 1992-103, Class L, 7.50%, 11/25/02 428
200 Series 1990-89, Class K, 6.50%, 7/25/20 195
Tennessee Valley Authority (TVA)
8,000 6.375%, 6/15/05 7,923
--------
62,686
--------
U.S. TREASURY OBLIGATIONS 26.4%
U.S. Treasury Bonds:
10,000 13.75%, 8/15/04 12,618
25,200 10.75%, 8/15/05 30,237
U.S. Treasury Strips, Principal Only:
60,900 0.00%, 11/15/04 48,118
32,000 0.00%, 8/15/05 24,212
--------
115,185
--------
Total Long-Term Investments (Cost $413,883) 412,728
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Number
of Shares Market Value
(in thousands) (in thousands)
-------------- --------------
SHORT-TERM INVESTMENTS 4.3%
INVESTMENT COMPANIES 4.3%
6 Financial Square Prime Obligation Fund $ 6
18,973 Short-Term Investments Co. Liquid Assets
Portfolio 18,973
--------
Total Short-Term Investments
(Cost $18,979) 18,979
--------
Total Investments (Cost $432,862) 98.9% 431,707
--------
Other Assets, less Liabilities 1.1% 4,729
--------
TOTAL NET ASSETS 100.0% $436,436
========
<F1>Unregistered security
<PAGE>
(LOGO) FIRSTAR FUNDS
U.S. GOVERNMENT SECURITIES FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal
Amount Market Value
(in thousands) (in thousands)
-------------- --------------
LONG-TERM INVESTMENTS 99.0%
U.S. GOVERNMENT AGENCIES 89.1%
FEDERAL HOME LOAN MORTGAGE
CORPORATION (FHLMC) 39.8%
$1,400 5.00%, 2/15/01 1,393
5 9.50%, 9/01/04, Pool #380053 5
93 8.50%, 3/01/06, Gold Pool #E00022 94
136 7.50%, 4/01/08, Gold Pool #E45929 138
268 6.00%, 2/01/11, Gold Pool #E62600 260
439 6.50%, 2/01/11, Gold Pool #E00419 432
403 7.00%, 7/01/11, Gold Pool #31335K 402
268 7.00%, 11/01/11, Gold Pool #E65619 268
584 6.50%, 1/01/12, Gold Pool #E00465 575
774 6.00%, 2/01/12, Gold Pool #E66284 748
340 6.50%, 2/01/12, Gold Pool #E66172 334
498 6.50%, 2/01/12, Gold Pool #E66272 490
781 6.00%, 3/01/12, Gold Pool #E66474 755
1,993 7.50%, 9/01/12, Gold Pool #G10735 2,013
3,443 5.50%, 12/01/12, Gold Pool #E68353 3,267
780 6.00%, 3/01/13, Gold Pool #E69338 752
729 6.00%, 4/01/13, Gold Pool #E70028 704
1,527 6.00%, 4/01/13, Gold Pool #E00543 1,474
1,586 5.50%, 5/01/13, Gold Pool #G10814 1,501
3,918 6.00%, 5/01/13, Gold Pool #E00549 3,781
780 6.50%, 10/01/13, Gold Pool #E00574 765
1,312 5.50%, 3/01/14, Gold Pool #E00633 1,241
916 6.50%, 7/01/14, Gold Pool #E77812 898
2,714 7.00%, 9/01/14, Gold Pool #E00746 2,702
--------
24,992
--------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION (FNMA) 39.9%
8 6.00%, 11/01/00, Pool #190070 $ 8
5,000 5.36%, 2/16/01, Medium Term Note 4,984
140 7.00%, 1/01/11, Pool #351122 139
618 6.00%, 3/01/11, Pool #340503 601
603 6.50%, 5/01/11, Pool #335713 594
375 6.50%, 5/01/11, Pool #346276 370
430 6.50%, 7/01/11, Pool #351761 424
1,080 6.50%, 7/01/11, Pool #250613 1,064
175 7.00%, 11/01/11, Pool #250738 174
177 7.00%, 11/11/11, Pool #349630 177
639 6.50%, 12/01/11, Pool #368127 630
1,044 6.50%, 12/01/11, Pool #250781 1,028
609 6.50%, 12/01/11, Pool #367868 600
1,453 5.50%, 3/01/13, Pool #420158 1,373
749 6.00%, 4/01/13, Pool #251656 722
2,436 6.00%, 4/01/13, Pool #425550 2,348
1,896 6.50%, 8/01/13, Pool #251901 1,861
794 6.00%, 11/01/13, Pool #323379 765
862 5.50%, 1/01/14, Pool #482515 815
904 6.50%, 4/01/14, Pool #492264 887
Principal
Amount Market Value
(in thousands) (in thousands)
-------------- --------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION (FNMA) 39.9% (CONT.)
$2,539 7.00%, 7/01/14, Pool #252637 $ 2,527
1,824 7.00%, 10/01/14, Pool #252799 1,816
507 8.00%, 7/01/24, Pool #190264 515
663 6.50%, 10/01/27, Pool #400141 639
--------
25,061
--------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (GNMA) 9.4%
46 8.00%, 1/15/07, Pool #315126 47
32 6.50%, 5/15/08, Pool #340791 32
126 9.00%, 7/15/09, Pool #390782 132
169 9.00%, 11/15/09, Pool #359559 177
244 8.00%, 10/15/10, Pool #414750 250
73 6.50%, 11/15/10, Pool #414786 73
181 6.50%, 2/15/11, Pool #373569 179
30 6.50%, 3/15/11, Pool #416179 29
211 6.50%, 3/15/11, Pool #406466 209
370 6.50%, 3/15/11, Pool #410935 366
196 6.50%, 3/15/11, Pool #344973 194
226 6.50%, 3/15/11, Pool #408253 223
403 6.50%, 4/15/11, Pool #416060 399
274 6.50%, 4/15/11, Pool #422652 271
193 6.50%, 5/15/11, Pool #408304 191
43 6.50%, 5/15/11, Pool #422814 43
99 6.50%, 5/15/11, Pool #433036 98
158 6.50%, 6/15/11, Pool #421731 156
79 6.50%, 6/15/11, Pool #432993 78
212 6.50%, 7/15/11, Pool #424521 210
530 6.50%, 7/15/11, Pool #433088 524
69 8.50%, 5/15/17, Pool #219152 71
105 8.50%, 6/15/21, Pool #307921 109
860 7.50%, 12/15/22, Pool #347332 868
210 8.00%, 5/15/23, Pool #352469 215
16 9.50%, 1/15/25, Pool #384421 17
18 9.50%, 2/15/25, Pool #401796 19
2 9.50%, 2/15/25, Pool #392967 2
293 9.50%, 2/15/25, Pool #365292 308
82 9.50%, 3/15/25, Pool #407257 86
70 9.50%, 4/15/25, Pool #386741 74
256 7.00%, 9/15/27, Pool #455304 252
--------
5,902
--------
Total U.S. Government Agencies
(Cost $56,697) 55,955
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
U.S. GOVERNMENT SECURITIES FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal
Amount Market Value
(in thousands) (in thousands)
U.S.TREASURY NOTES 9.9%
$4,500 7.25%, 8/15/04 $ 4,710
1,000 5.625%, 5/15/08 986
500 6.50%, 2/15/10 524
--------
Total U.S.Treasury Notes (Cost $6,175) 6,220
--------
Total Long-TermInvestments (Cost $62,872) 62,175
--------
Number
of Shares
(in thousands)
--------------
SHORT-TERM INVESTMENT 1.2%
INVESTMENT COMPANY 1.2%
779 Federated Trust for U.S. Treasury Obligations 779
--------
Total Short-Term Investment (Cost $779) 779
--------
Total Investments (Cost $63,651) 100.2% 62,954
--------
Liabilities, less Other Assets (0.2)% (130)
--------
TOTAL NET ASSETS 100.0% $62,824
=======
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
AGGREGATE BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal
Amount Market Value
(in thousands) (in thousands)
-------------- --------------
LONG-TERM INVESTMENTS 98.1%
CORPORATE BONDS 39.6%
$2,000 Associates Corporation, 5.80%, 4/20/04 $ 1,926
1,000 AT&T Corporation, 5.625%, 3/15/04 942
500 BankAmerica Corporation, 7.50%, 10/15/02 505
1,300 Cendant Corporation, 7.75%, 12/01/03 1,262
2,000 Citigroup, Inc., 6.625%, 1/15/28 1,770
1,500 Computer Associates, 6.25%, 4/15/03 1,436
1,200 Dell Computer Corporation, 7.10%, 4/15/28 1,076
Deutsche Telekom International
1,000 Finance, 7.75%, 6/15/05 1,018
1,500 Dillards,Inc., 7.13%, 8/01/18 872
E.I. duPont de Nemours & Company,
1,300 6.875%, 10/15/09 1,280
Ford Motor Credit Corporation, 6.80%,
4/23/01,
1,850 Medium Term Notes 1,852
Ford Motor Credit Corporation, Global Bond,
750 7.00%, 9/25/01 751
Ford Motor Credit Corporation, Global Bond,
3,200 7.50%, 3/15/05 3,211
General Electric Capital Corporation, 8.75%,
1,000 3/14/03, Medium Term Notes 1,045
General Electric Global Insurance Holdings,
1,700 6.45%, 3/01/19 1,504
General Motors Acceptance Corporation,
1,000 6.85%, 4/17/01, Medium Term Notes 1,001
General Motors Acceptance Corporation,
1,400 6.70%, 4/30/01, Medium Term Notes 1,400
1,000 Goldman Sachs Group, Inc., 6.65%, 5/15/09 940
3,000 Household Finance Corporation, 8.375%,
11/15/013,044
1,400 IBM Corporation, 6.45%, 8/01/07 1,360
500 International Paper Company, 7.10%, 9/01/05 493
1,500 Laclede Gas Company, 7.50%, 11/01/07 1,529
1,265 Lucent Technologies, 6.45%, 3/15/29 980
Merrill Lynch & Company, Series B,
3,000 6.375%, 10/01/01, Medium Term Notes 2,992
2,500 Procter & Gamble Company, 6.60%, 12/15/04 2,492
500 Province of Ontario, Global Bond, 7.375%,
1/27/03 508
500 Rockwell International Corporation, 6.75%,
9/15/02 500
Southern New England Telecommunications
Corporation, Series 2, 6.50%, 12/15/02,
3,250 Medium Term Notes 3,239
St. Paul Companies, Inc., 6.38%, 12/15/08,
1,550 Medium Term Notes 1,436
Texaco Capital, 6.95%, 10/15/01,
2,000 Medium Term Notes 2,001
2,000 Traveler's Group, Inc., 7.30%, 5/15/02 2,014
3,000 Traveler's Group, Inc., 7.50%, 2/01/03 3,034
500 United Telephone - Florida, 7.25%, 12/15/04 504
--------
49,917
--------
Principal
Amount Market Value
(in thousands) (in thousands)
-------------- --------------
U.S. GOVERNMENT AGENCY-BACKED
MORTGAGE ISSUES 40.1%
Federal Farm Credit Bank (FFCB):
$2,000 7.21%, 4/04/07 $ 2,069
1,500 6.37%, 10/30/07 1,476
Federal Home Loan Bank (FHLB):
1,000 5.71%, 9/08/08 942
3,100 5.79%, 4/27/09 2,916
Federal Home Loan Mortgage Corporation
(FHLMC):
4 8.50%, 5/01/01, Pool #200034 4
13 8.50%, 11/01/01, Pool #200058 13
13 8.00%, 3/01/02, Pool #215507 13
19 7.50%, 4/01/02, Pool #200070 19
6 8.00%, 5/01/02, Pool #216910 6
53 8.00%, 6/01/02, Pool #218101 54
15 8.00%, 6/01/02, Pool #218582 15
12 8.00%, 7/01/02, Pool #217891 12
33 8.00%, 7/01/02, Pool #501214 33
27 8.50%, 3/01/05, Pool #380084 27
3 8.50%, 4/01/05, Pool #380085 4
9 8.50%, 9/01/05, Pool #503592 9
11 8.50%, 4/01/06, Gold Pool #E00025 11
600 6.76%, 3/12/07, Pool #000001 607
2,500 5.75%, 4/15/08 2,376
313 6.00%, 2/01/11, Gold Pool #E62600 304
869 8.00%, 1/01/23, Gold Pool #C00225 885
130 8.00%, 1/01/23, Gold Pool #D29451 133
2,577 6.00%, 12/01/25, Gold Pool #G00427 2,440
2,599 6.00%, 9/01/27, Gold Pool #C00565 2,445
184 6.00%, 4/01/29, Pool #C24786 173
374 6.00%, 4/01/29, Pool #C25708 352
3,943 6.00%, 5/01/29, Pool #C25918 3,703
291 6.00%, 5/01/29, Pool #C25930 274
108 6.00%, 5/01/29, Pool #C26993 102
236 6.00%, 7/01/29, Pool #C29068 222
Federal National Mortgage Association (FNMA):
3,000 6.63%, 9/15/09 2,993
17 6.00%, 11/01/00, Pool #190070 16
1,657 6.50%, 12/01/11, Pool #367838 1,632
364 6.50%, 7/01/12, Pool #370716 358
699 6.50%, 7/01/12, Pool #393667 689
614 6.50%, 8/01/12, Pool #251165 603
2,830 6.00%, 1/01/13, Pool #251501 2,731
2,197 6.00%, 2/01/26, Pool #336918 2,077
1,158 6.00%, 10/01/26, Pool #368935 1,094
1,606 6.50%, 8/01/27, Pool #395219 1,549
1,426 6.50%, 8/01/27, Pool #397372 1,375
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
AGGREGATE BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal
Amount Market Value
(in thousands) (in thousands)
-------------- --------------
U.S. GOVERNMENT AGENCY-BACKED
MORTGAGE ISSUES 40.1% (CONT.)
Government National Mortgage Association
(GNMA):
$ 16 8.00%, 1/15/02, Pool #188653 $ 16
3 8.00%, 3/15/02, Pool #199167 3
8 8.00%, 4/15/02, Pool #180980 8
31 8.00%, 7/15/02, Pool #209779 31
14 9.50%, 10/15/02, Pool #232514 14
88 6.50%, 9/15/03, Pool #002549 86
10 9.50%, 9/15/05, Pool #290435 10
28 9.50%, 1/15/06, Pool #298829 29
48 8.00%, 5/15/06, Pool #303851 49
42 9.50%, 7/15/07, Pool #331878 44
190 8.00%, 11/15/07, Pool #339329 194
108 8.00%, 12/15/07, Pool #338551 111
303 9.50%, 8/15/09, Pool #400219 319
113 9.50%, 9/15/09, Pool #377317 119
234 9.50%, 2/15/10, Pool #392932 247
18 8.00%, 5/15/10, Pool #398424 18
129 6.50%, 8/15/10, Pool #387094 128
110 8.00%, 11/15/10, Pool #405524 113
630 8.00%, 11/15/10, Pool #410294 645
142 8.00%, 11/15/10, Pool #414827 146
57 6.50%, 3/15/11, Pool #408253 56
212 6.50%, 4/15/11, Pool #402546 210
57 6.50%, 4/15/11, Pool #418274 56
277 6.50%, 4/15/11, Pool #421831 274
333 6.50%, 5/15/11, Pool #408304 330
42 6.50%, 5/15/11, Pool #430822 42
438 6.50%, 6/15/11, Pool #345631 433
67 6.50%, 6/15/11, Pool #421731 66
225 6.50%, 6/15/11, Pool #423833 223
514 6.50%, 6/15/11, Pool #430820 508
786 8.50%, 4/15/17, Pool #212112 814
667 8.00%, 4/15/22, Pool #320818 681
545 7.50%, 4/15/23, Pool #343195 550
421 9.00%, 3/15/25, Pool #404067 439
728 6.50%, 4/15/26, Pool #415721 706
752 6.50%, 4/15/26, Pool #422323 730
697 6.50%, 5/15/26, Pool #417388 676
3,738 6.50%, 6/15/26, Pool #423801 3,628
341 7.00%, 9/15/27, Pool #455304 337
644 6.50%, 10/15/28, Pool #434031 623
--------
50,468
--------
Principal
Amount Market Value
(in thousands) (in thousands)
-------------- --------------
U.S. TREASURY OBLIGATIONS 18.4%
U.S. Treasury Bonds:
$2,865 8.875%, 8/15/17 $ 3,724
3,150 8.875%, 2/15/19 4,142
2,183 8.75%, 8/15/20 2,869
1,050 8.00%, 11/15/21 1,298
U.S. Treasury Notes:
500 5.25%, 5/15/04 490
4,930 5.625%, 5/15/08 4,862
5,400 5.50%, 5/15/09 5,280
500 6.50%, 2/15/10 524
--------
23,189
--------
Total Long-Term Investments
(Cost $124,136) 123,574
--------
Number
of Shares
(in thousands)
--------------
SHORT-TERM INVESTMENT 1.1%
INVESTMENT COMPANY 1.1%
1,432 Federated Money Market Trust 1,432
--------
Total Short-Term Investment (Cost $1,432) 1,432
--------
Total Investments (Cost $125,568) 99.2% 125,006
--------
Other Assets, less Liabilities 0.8% 951
--------
TOTAL NET ASSETS 100.0% $125,957
========
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BOND IMMDEX(TM) FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Market Value
(in thousands) (in thousands)
LONG-TERM INVESTMENTS 98.6%
ASSET-BACKED SECURITIES 2.7%
CREDIT CARD RECEIVABLES 1.6%
Chemical Master Credit Card Trust,
$ 1,520 Series 1995-3, Class A, 6.23%, 8/15/02 $ 1,509
Citibank Credit Card Master Trust I,
Principal Only:
3,465 Series 1996-1, Class A, 0.00%, 2/07/01 3,403
5,000 Series 1997-6, Class A, 0.00%, 8/15/06 3,866
Household Affinity Credit Card Master Trust I,
312 Series 1993-2, Class A, 5.60%, 11/15/00 312
Sears Credit Account Master Trust,
213 Series 1995-2, Class A, 8.10%, 1/15/01 213
--------
9,303
--------
HOME EQUITY LOAN RECEIVABLES 1.1%
Contimortgage Home Equity Loan Trust:
1,050 Series 1998-1, Class A6, 6.58%, 12/15/18 1,036
3,000 Series 1997-3, Class A8, 7.58%, 8/15/28 2,971
Delta Funding Home Equity Loan Trust,
1,973 Series 1997-3, Class A6F, 6.86%,
10/25/28 1,942
--------
5,949
--------
CORPORATE BONDS 41.6%
AT&T Corporation Notes,
2,000 6.50%, 3/15/29 1,571
Aetna Services, Inc. Debentures,
1,800 6.75%, 9/15/13 1,687
Air 2 US Bonds:
1,000 10.127%, 10/01/20 (Acquired 12/6/99,
Cost $1,034)<F1> 1,036
5,000 8.63%, 11/01/20 (Acquired 10/31/99,
Cost $5,000)<F1> 5,103
Alabama Power Company First Mortgage Bond,
925 9.00%, 12/01/24 965
American Airline Equipment Pass-Thru
Certificates,
1,500 10.21%, 1/01/10 1,674
America West Airlines Pass-Thru Certificates:
2,755 8.54%, 1/02/06 (Acquired 9/14/99,
Cost $2,775)<F1> 2,748
2,931 7.93%, 1/02/19 (Acquired 9/14/99,
Cost $2,931)<F1> 2,955
Associated P&C Holdings Senior Notes,
4,895 6.75%, 7/15/03 (Acquired
11/5/98, Cost $4,793)<F1> 4,778
BankAmerica Corporation Subordinated Notes,
3,539 10.00%, 2/01/03 3,745
BankBoston Notes,
2,500 6.375%, 4/15/08 2,350
Barclays North American Capital Corp.
Debentures,
925 9.75%, 5/15/21 977
Conectiv, Inc. Medium Term Notes,
3,000 6.73%, 6/01/06 2,963
Continental Airlines, Inc. Pass-Thru
Certificates,
2,571 6.80%, 7/02/07 2,476
Continental Bank Subordinated Notes,
1,963 12.50%, 4/01/01 2,004
Continental Cablevision, Inc. Debentures,
8,200 9.50%, 8/01/13 8,896
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
CORPORATE BONDS 41.6% (CONT.)
CSX Corporation Medium Term Notes,
$ 3,000 5.85%, 12/01/03 $ 2,861
Duty Free International, Inc. Notes,
6,450 7.00%, 1/15/04 6,228
Dynegy, Inc. Senior Notes,
2,600 7.45%, 7/15/06 2,592
Federal Express Corporation Notes,
4,400 9.65%, 6/15/12 4,864
First National Bank Chicago Debentures,
1,350 8.08%, 1/05/18 1,384
First National Bank Omaha Subordinated Notes,
3,100 7.32%, 12/01/10 2,935
First Union Corporation Subordinated Notes,
3,000 8.125%, 6/24/02 3,051
First USA Bank Notes,
1,125 5.85%, 2/22/01 1,122
Ford Motor Company Debentures:
2,934 9.215%, 9/15/21 3,184
1,000 8.875%, 11/15/22 1,025
Geico Corporation Debentures,
2,000 9.15%, 9/15/21 2,124
General Motors Acceptance Corp. Notes,
2,694 9.625%, 12/15/01 2,772
Georgia Pacific Corp. Debentures:
1,511 9.50%, 12/01/11 1,610
4,605 9.875%, 11/01/21 4,707
975 9.50%, 5/15/22 967
Goldman Sachs Group Notes,
10,000 6.25%, 2/01/03 (Acquired 2/01/96,
Cost $9,974)<F1> 9,810
GTE North, Inc. Debentures,
1,100 9.60%, 1/01/21 1,157
Harris Bankcorp Subordinated Notes,
1,065 9.375%, 6/01/01 1,079
Heller Financial, Inc. Notes,
1,285 8.00%, 6/15/05 1,297
Lehman Brothers Holdings, Inc. Notes:
3,825 6.65%, 11/08/00 3,825
5,000 7.50%, 9/01/06 4,901
Lehman Brothers, Inc. Debentures,
2,620 11.625%, 5/15/05 3,020
Lehman Brothers Holdings, Inc. Senior Notes,
1,500 8.75%, 5/15/02 1,531
Marlin Water Trust Senior Notes,
6,053 7.09%, 12/15/01 (Acquired 12/8/98,
Cost $6,039)<F1> 6,017
The May Department Stores Company Debentures,
1,725 9.875%, 6/15/21 1,817
Merrill Lynch & Co. Medium Term Notes,
5,000 5.88%, 1/15/04 4,814
National Westminster Bancorp, Inc.
Debentures,
1,000 9.375%, 11/15/03 1,065
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
CORPORATE BONDS 41.6% (CONT.)
NCNB Corp. Subordinated Notes,
$ 5,155 10.20%, 7/15/15 $ 6,091
Newcourt Credit Group Notes,
3,490 6.875%, 2/16/05 (Acquired 3/16/99,
Cost $6,587)<F1> 3,301
News America Holdings Debentures,
2,200 10.125%, 10/15/12 2,376
Northwest Airlines Corp. Pass-Thru Certificates,
6,829 7.248%, 7/02/14 6,075
Old Dominion Electric Co-op First Mortgage,
6,850 8.76%, 12/01/22 7,033
Osprey Trust Secured Notes,
3,750 8.31%, 1/15/03 (Acquired 9/16/99,
Cost $3,750)<F1> 3,790
Paine Webber Group, Inc. Notes:
2,500 6.45%, 12/01/03 2,465
2,450 6.73%, 1/20/04 2,434
1,540 8.875%, 3/15/05 1,644
Parker Hannifin Debentures,
400 9.75%, 2/15/21 419
JC Penney Company, Inc. Debentures:
4,000 9.75%, 6/15/21 2,631
1,000 8.25%, 8/15/22 518
Principal Financial Group Senior Notes,
7,000 8.20%, 8/15/09 (Acquired 8/18/99,
Cost $6,979)<F1> 7,056
PSIEnergy, Inc. Debentures,
3,100 7.85%, 10/15/07 3,068
Salomon, Inc. Notes,
3,450 7.00%, 6/15/03 3,447
Salomon, Inc. Senior Notes:
2,100 6.75%, 2/15/03 2,090
1,000 7.20%, 3/03/03 1,005
Security Capital Group, Inc. Medium Term Notes,
2,850 7.75%, 11/15/03 2,828
Sprint Capital Corporation Company Guarantee,
5,250 5.70%, 11/15/03 5,023
Sun Co. Inc. Debentures,
2,802 9.375%, 6/01/16 2,962
Tenneco, Inc. Debentures,
3,150 7.95%, 12/15/25 2,641
Time Warner, Inc. Debentures,
2,200 9.125%, 1/15/13 2,457
Toll Road Investors Debentures,
Principal Only:
5,800 0.00%, 2/15/04 (Acquired 4/23/99,
Cost $4,339)<F1> 4,587
1,000 0.00%, 2/15/05 (Acquired 5/21/99,
Cost $705)<F1> 733
Transamerica Finance Corporation
Senior Notes,
5,675 6.125%, 11/01/01 5,633
TRW, Inc. Notes,
3,360 6.625%, 6/01/04 3,213
United HealthCare Corporation Notes,
10,000 6.60%, 12/01/03 (Acquired 11/19/98,
Cost $9,977)<F1> 9,680
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
CORPORATE BONDS 41.6% (CONT.)
U.S. West Communications Debentures,
$ 1,000 8.875%, 6/01/31 $ 1,010
Utilicorp United Inc. Senior Notes,
3,000 7.625%, 11/15/09 2,900
Western National Corporation Senior Notes,
2,456 7.125%, 2/15/04 2,452
Williams Companies, Inc. Notes,
2,675 7.625%, 7/15/19 2,590
Wisconsin Public Service First Mortgage,
2,000 8.80%, 9/01/21 2,052
--------
233,891
--------
MORTGAGE-BACKED SECURITIES 0.9%
Amresco Residential Securities
Mortgage Loan,
4,819 Series 1997-3, Class A9, 6.96%, 3/25/27 4,770
Prudential Securities Secured Financing Corp.,
281 Series 1993-1, Class A, 6.44%, 2/16/21 277
--------
5,047
--------
INTERNATIONAL/YANKEE (U.S. $ DENOMINATED) 12.0%
Banco Santander-Chile Notes,
4,925 6.50%, 11/01/05 4,760
British Sky Broadcasting Company Guarantee,
5,000 6.875%, 2/23/09 4,279
Dresdner Bank Subordinated Debentures,
3,500 7.25%, 9/15/15 3,261
Ford Capital BV Debentures,
560 9.875%, 5/15/02 582
Ford Capital BV Notes:
4,025 9.375%, 5/15/01 4,073
1,400 9.50%, 6/01/10 1,529
Household Netherlands BV Company Guarantee,
10,000 6.20%, 12/01/03 9,743
Hydro-Quebec Corporation Debentures:
3,500 11.75%, 2/01/12 4,676
750 9.75%, 1/15/18 783
Korea Development Bank Bonds:
2,300 7.125%, 9/17/01 2,287
3,600 7.90%, 2/01/02 3,601
Korea Electric Power Debentures,
1,400 6.75%, 8/01/27 1,324
Metronet Communications Corp. Senior Notes,
1,000 10.625%, 11/01/08 1,103
National Bank of Hungary Debentures,
2,490 8.875%, 11/01/13 2,641
Newfoundland (Province of) Canada,
1,975 10.00%, 12/01/20 2,443
Norsk Hydro A/S Debentures,
2,900 9.00%, 4/15/12 3,204
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BOND IMMDEX(TM) FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
INTERNATIONAL/YANKEE
(U.S. $ DENOMINATED) 12.0% (CONT.)
Sanwa Bank Ltd. Subordinated Notes,
$5,000 8.35%, 7/15/09 $ 4,975
Stagecoach Holdings PLC Notes,
2,500 8.625%, 11/15/09 2,250
Sumitomo Bank International Guaranteed Notes,
3,000 8.50%, 6/15/09 3,033
Sweden (Kingdom of) Debentures,
1,100 11.125%, 6/01/15 1,478
Wharf Capital International Ltd. Notes:
2,700 8.875%, 11/01/04 2,793
2,675 7.625%, 3/13/07 2,539
--------
67,357
--------
U.S. GOVERNMENT AGENCY-BACKED
MORTGAGE ISSUES 11.0%
Federal Home Loan Bank (FHLB):
1,005 5.37%, 1/16/03 983
6,000 5.785%, 2/09/05 5,832
1,500 6.365%, 11/05/07 1,483
Federal Home Loan Mortgage Corporation
(FHLMC):
54 Participation Certificates, 7.50%, 4/01/07 53
7,500 Reference Note, 6.625%, 9/15/09 7,444
Real Estate Mortgage Investment Conduit
(REMIC):
458 Series 1022, Class J, 6.00%, 12/15/20 441
1,266 Series 162, Class F, 7.00%, 5/15/21 1,251
1,094 Series 1118, Class Z, 8.25%, 7/15/21 1,118
262 Series 6, Class C, 9.05%, 6/15/19 270
918 Series 188, Class H, 7.00%, 9/15/21 907
537 Series 1201, Class E, 7.40%, 12/15/21 538
1,058 Series 1790-A, Class A, 7.00%, 4/15/22 1,045
Federal National Mortgage Association (FNMA):
300 5.45%, 10/10/03 292
20,000 7.125%, 3/15/07 20,565
2,090 6.21%, 11/07/07 2,035
2,600 7.25%, 1/15/10 2,694
Federal National Mortgage Association (FNMA),
Participation Certificates:
216 Series 317, 7.50%, 8/01/07 217
68 Series 1464, 7.75%, 6/01/08 69
Real Estate Mortgage Investment Conduit (REMIC):
12 Series 1992-145, Class N, 10.06%, 1/25/06 155
532 Series 1988-24, Class G, 7.00%, 10/25/18 523
529 Series 1989-44, Class H, 9.00%, 7/25/19 546
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
U.S. GOVERNMENT AGENCY-BACKED
MORTGAGE ISSUES 11.0% (CONT.)
Federal National Mortgage Association
(FNMA)
Real Estate Mortgage Investment Conduit
(REMIC):
$ 125 Series 1989-90, Class E, 8.70%, 12/25/19 $ 128
551 Series 1990-30, Class E, 6.50%, 3/25/20 535
510 Series 1990-61, Class H, 7.00%, 6/25/20 505
298 Series 1990-72, Class B, 9.00%, 7/25/20 308
390 Series 1990-102, Class J, 6.50%, 8/25/20 378
1,930 Series 1990-105, Class J, 6.50%, 9/25/20 1,878
334 Series 1990-106, Class J, 8.50%, 9/25/20 343
1,712 Series 1991-56, Class M, 6.75%, 6/25/21 1,673
2,992 Series 1991-134, Class Z, 7.00%, 10/25/21 2,931
720 Series 1992-120, Class C, 6.50%, 7/25/22 695
FDIC REMIC Trust,
4,162 Series 1996-C1, Class 1A, 6.75%, 5/25/26 4,137
--------
61,972
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BBOND IMMDEX(TM) FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
INTERNATIONAL/YANKEE
(U.S. $ DENOMINATED) 12.0% (CONT.)
Sanwa Bank Ltd. Subordinated Notes,
$5,000 8.35%, 7/15/09 $ 4,975
Stagecoach Holdings PLC Notes,
2,500 8.625%, 11/15/09 2,250
Sumitomo Bank International Guaranteed Notes,
3,000 8.50%, 6/15/09 3,033
Sweden (Kingdom of) Debentures,
1,100 11.125%, 6/01/15 1,478
Wharf Capital International Ltd. Notes:
2,700 8.875%, 11/01/04 2,793
2,675 7.625%, 3/13/07 2,539
--------
67,357
--------
U.S. GOVERNMENT AGENCY-BACKED
MORTGAGE ISSUES 11.0%
Federal Home Loan Bank (FHLB):
1,005 5.37%, 1/16/03 983
6,000 5.785%, 2/09/05 5,832
1,500 6.365%, 11/05/07 1,483
Federal Home Loan Mortgage Corporation
(FHLMC):
54 Participation Certificates, 7.50%, 4/01/07 53
7,500 Reference Note, 6.625%, 9/15/09 7,444
Real Estate Mortgage Investment Conduit
(REMIC):
262 Series 6, Class C, 9.05%, 6/15/19 270
458 Series 1022, Class J, 6.00%, 12/15/20 441
1,266 Series 162, Class F, 7.00%, 5/15/21 1,251
1,094 Series 1118, Class Z, 8.25%, 7/15/21 1,118
918 Series 188, Class H, 7.00%, 9/15/21 907
537 Series 1201, Class E, 7.40%, 12/15/21 538
1,058 Series 1790-A, Class A, 7.00%, 4/15/22 1,045
Federal National Mortgage Association (FNMA):
300 5.45%, 10/10/03 292
20,000 7.125%, 3/15/07 20,565
2,090 6.21%, 11/07/07 2,035
2,600 7.25%, 1/15/10 2,694
Participation Certificates:
216 Series 317, 7.50%, 8/01/07 217
68 Series 1464, 7.75%, 6/01/08 69
Real Estate Mortgage Investment Conduit
(REMIC):
12 Series 1992-145, Class N, 10.06%, 1/25/06 155
532 Series 1988-24, Class G, 7.00%, 10/25/18 523
529 Series 1989-44, Class H, 9.00%, 7/25/19 546
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
U.S. GOVERNMENT AGENCY-BACKED
MORTGAGE ISSUES 11.0% (CONT.)
Federal National Mortgage Association
(FNMA)
Real Estate Mortgage Investment Conduit
(REMIC):
$ 125 Series 1989-90, Class E, 8.70%, 12/25/19 $ 128
551 Series 1990-30, Class E, 6.50%, 3/25/20 535
510 Series 1990-61, Class H, 7.00%, 6/25/20 505
298 Series 1990-72, Class B, 9.00%, 7/25/20 308
390 Series 1990-102, Class J, 6.50%, 8/25/20 378
1,930 Series 1990-105, Class J, 6.50%, 9/25/20 1,878
334 Series 1990-106, Class J, 8.50%, 9/25/20 343
1,712 Series 1991-56, Class M, 6.75%, 6/25/21 1,673
2,992 Series 1991-134, Class Z, 7.00%, 10/25/21 2,931
720 Series 1992-120, Class C, 6.50%, 7/25/22 695
FDIC REMIC Trust,
4,162 Series 1996-C1, Class 1A, 6.75%, 5/25/26 4,137
--------
61,972
--------
U.S. TREASURY OBLIGATIONS 30.4%
U.S. Treasury Bonds:
4,000 6.00%, 8/15/09 4,042
16,050 9.875%, 11/15/15 22,146
54,680 9.25%, 2/15/16 72,287
25,373 8.00%, 11/15/21 31,359
U.S. Treasury Notes:
20,000 7.25%, 8/15/04 20,928
19,325 6.625%, 5/15/07 20,117
--------
170,879
--------
Total Long-Term Investments (Cost $549,230) 554,398
--------
Number
of Shares
(in thousands)
--------------
SHORT-TERM INVESTMENTS 0.5%
INVESTMENT COMPANIES 0.5%
3 Financial Square Prime Obligation Fund 3
2,979 Short-Term Investments Co. Liquid Assets
Portfolio 2,979
--------
Total Short-Term Investments (Cost $2,982) 2,982
--------
Total Investments (Cost $552,212) 99.1% 557,380
--------
Other Assets, less Liabilities 0.9% 4,895
--------
TOTAL NET ASSETS 100.0% $562,275
========
<F1>Unregistered security
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STRATEGIC INCOME FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Number Market Value
of Shares (in thousands)
------------ ---------------
COMMON STOCKS 5.2%
BANKING & FINANCE 0.0%
2,300 National City Corporation $ 49
--------
CLOSED-END INVESTMENT COMPANIES 2.0%
165,000 First Australia Prime Income Fund 637
220,000 First Commonwealth Fund Inc. 1,952
--------
2,589
--------
COSMETICS & TOILETRIES 0.3%
20,000 International Flavors & Fragrances Inc. 335
--------
RETAIL 0.1%
2,500 Home Depot, Inc. (The) 108
--------
TOBACCO 1.7%
60,000 Philip Morris Companies, Inc. 2,198
--------
UTILITIES 1.1%
20,000 PG&E Corporation 539
25,000 TXU Corporation 926
--------
1,465
--------
Total Common Stocks (Cost $6,786) 6,744
--------
PREFERRED STOCKS 11.0%
ENERGY 1.5%
78,200 Enron Capital Trust I 1,926
--------
FINANCE 5.8%
60,000 Household International, Inc., Capital
Trust V1,586
20,800 MSDW Capital Trust I 458
124,900 PLC Capital Trust I, Series B 2,943
75,000 SI Financing Trust I 1,889
25,000 TXU Capital Trust II 628
--------
7,504
--------
INTERNATIONAL OIL 2.3%
124,300 TransCanada PipeLines Ltd. 2,968
--------
TELECOMMUNICATIONS 1.0%
55,000 MCI Capital I, Series A 1,275
--------
UTILITIES 0.4%
22,500 Alabama Power Capital Trust II 531
--------
Total Preferred Stocks (Cost $14,804) 14,204
--------
Number Market Value
of Shares (in thousands)
--------- --------------
REAL ESTATE INVESTMENT TRUSTS 17.5%
25,000 AvalonBay Communities, Inc., Pfd., Series G $ 588
40,000 Bedford Property Investors, Inc. 788
120,000 Developers Diversified Realty Corporation 1,433
10,900 Equity One, Inc. 102
60,000 Equity Residential Properties Trust, Pfd. 1,335
50,000 FelCor Lodging Trust Inc. 1,097
30,000 Franchise Finance Corporation of America 609
100,000 Glimcher Realty Trust 1,300
84,637 Healthcare Realty Trust, Inc. 1,687
74,000 Hospitality Properties Trust 1,596
42,100 Kimco Realty Corporation, Pfd. 953
140,000 LaSalle Hotel Properties 2,013
75,000 Lexington Corporate Properties Trust 839
35,000 Liberty Property Trust 925
31,700 MeriStar Hospitality Corporation 606
70,000 Mills Corporation 1,194
55,000 Public Storage,Inc., Pfd., Series F 1,406
150,000 RFS Hotel Investors, Inc. 1,931
20,000 Simon Property Group, Inc. 446
130,000 Sizeler Property Investors, Inc. 999
15,300 Sorvan Self Storage, Inc. 289
20,000 Storage USA, Inc. 559
--------
Total Real Estate Investment Trusts
(Cost $24,400) 22,695
--------
Principal Amount
(in thousands)
----------------
LONG-TERM INVESTMENTS 64.4%
CORPORATE BONDS 41.7%
750 Ashland Inc., Series F, 7.90%, 8/05/06 750
1,500 Ashland Inc., 7.78%, 9/19/16 1,416
2,000 Atlantic Richfield Company, Series B,
8.60%, 5/15/12 2,198
2,000 AvalonBay Communities, Inc., 6.80%, 7/15/06 1,907
2,000 Banc One Corporation, 8.00%, 4/29/27 1,971
500 Capital Holding Corporation, 9.25%, 5/07/01 506
500 Chevron Capital USA, Inc., 7.45%, 8/15/04 505
1,000 Coastal Corporation, 9.625%, 5/15/12 1,147
3,500 Dell Computer Corporation, 7.10%, 4/15/28 3,140
289 Duke Energy Corporation, 7.875%, 5/01/24 281
2,520 Federated Department Stores, Inc., 7.45%,
7/15/17 2,105
2,000 Finova Capital Corporation, 9.125%, 2/27/02 1,310
1,000 Finova Capital Corporation, 6.71%, 11/07/05 592
2,000 First Union Corporation Capital Trust I, 8.04%,
12/01/26 1,797
2,000 Ford Motor Credit Company, 6.75%, 8/15/08 1,888
3,500 GTE Corporation, 7.83%, 5/01/23 3,386
2,000 Highwoods Forsyth LP, 7.19%, 6/15/04 1,916
1,500 International Lease Finance Corporation,
8.375%, 12/15/04 1,565
2,000 Lockheed Martin Corporation, 7.875%,
3/15/23 1,868
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STRATEGIC INCOME FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Market Value
(in thousands) (in thousands)
---------------- -------------
CORPORATE BONDS 41.7% (CONT.)
$1,000 May Department Stores Company (The),
7.625%, 8/15/13 $ 959
2,100 NationsBank Capital Trust IV, 8.25%,
4/15/27 2,006
2,000 Northern Illinois Gas Company, 7.26%,
10/15/25 1,871
2,000 Ohio National Life Insurance Company,
8.875%, 7/15/04 2,089
1,000 Penney (JC) Co., Inc., 7.65%, 8/15/16 580
1,000 Penney (JC) Co., Inc., 7.95%, 4/01/17 560
1,017 Philip Morris Companies, Inc., 7.125%,
8/15/02 1,007
1,000 Post Apartment Homes LP, 7.30%, 4/01/04 995
2,000 Procter & Gamble Company, 7.375%, 3/01/23 1,928
3,000 Safeway, Inc., Medium Term Note, 8.57%,
4/01/03 3,079
725 Sears, Roebuck & Company, 8.66%, 10/02/06 750
2,000 Spieker Properties, Inc., 8.00%, 7/19/05 2,043
1,000 Spieker Properties, Inc., 7.35%, 12/01/17 895
3,000 TRW Inc., 8.75%, 5/15/06 3,079
2,000 Wells Fargo & Company, 7.96%, 12/15/26 1,860
--------
53,949
--------
INTERNATIONAL 6.9%
3,700 ABN-AMRO Bank NV, New York, 7.75%, 5/15/23 3,608
1,000 Koninklijke Philips Electronics NV,
8.375%, 9/15/06 1,042
4,500 Zurich Capital Trust, 8.376%, 6/01/37 4,275
--------
8,925
--------
U.S. GOVERNMENT AGENCY-BACKED
MORTGAGE ISSUES 15.8%
Federal Home Loan Mortgage Corporation
(FHLMC)
332 9.00%, 5/01/21 345
707 8.50%, 6/01/24 728
Real Estate Mortgage Investment Conduit
(REMIC):
670 Series 1360, Class PK, 10.00%, 12/15/20 696
2,000 Series 1378, Class H, 10.00%, 1/15/21 2,136
539 Series 1255, Class G, 7.50%, 7/15/21 539
1,916 Series 62, Class B, 7.50%, 5/20/24 1,921
Federal National Mortgage Association (FNMA)
207 7.00%, 11/01/06 205
245 7.50%, 4/01/07 245
1,356 8.00%, 4/01/20 1,378
2,913 8.00%, 2/01/30 2,950
Real Estate Mortgage Investment Conduit
(REMIC):
220 Series 1989-54, Class E, 8.40%, 8/25/19 225
502 Series 1990-63, Class H, 9.50%, 6/25/20 523
Government National Mortgage Association
(GNMA)
Real Estate Mortgage Investment Conduit
(REMIC):
4,000 Series 1996-20, Class C, 7.50%, 5/16/23 4,028
Principal Amount Market Value
(in thousands) (in thousands)
---------------- -------------
U.S. GOVERNMENT AGENCY-BACKED
MORTGAGE ISSUES 15.8% (CONT.)
Government National Mortgage Association
(GNMA):
$ 65 9.00%, 7/15/16 $ 68
196 9.00%, 1/15/22 205
305 8.00%, 11/20/26 309
472 7.50%, 12/15/26 475
945 7.50%, 2/20/27 944
2,669 6.50%, 12/20/28 2,567
--------
20,487
--------
Total Long-Term Investments (Cost $89,303) 83,361
--------
Number
of Shares
(in thousands)
--------------
SHORT-TERM INVESTMENT 1.5%
INVESTMENT COMPANY 1.5%
1,966 Short-Term Investments Co. Gov.
Agency Portfolio 1,966
--------
Total Short-Term Investment (Cost $1,966) 1,966
--------
Total Investment (Cost $137,259) 99.6% 128,970
--------
Other Assets, less Liabilities 0.4% 516
--------
TOTAL NET ASSETS 100.0% $129,486
========
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STRATEGIC INCOME FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Number of Market Value
Contracts (in thousands)
--------- --------------
SCHEDULE OF CALL OPTIONS WRITTEN
200 Hospitality Properties Trust,
expires 6/16/01,
exercise price $22.50 $ 24
200 International Flavors & Fragrances Inc.,
expires 2/17/01, exercise price $15 50
600 Philip Morris Companies, Inc.,
expires 1/20/01,
exercise price $25 735
200 TXU Corporation, expires 1/20/01,
exercise price $35 61
--------
Total Call Options Written
(Premiums received $255) 870
--------
SCHEDULE OF PUT OPTIONS WRITTEN
100 Anheuser-Busch Companies, Inc.,
expires 12/16/00,
exercise price $40 6
100 Bristol-Myers Squibb Company,
expires 12/16/00,
exercise price $55 13
100 Dow Chemical Company (The), expires 3/17/01,
exercise price $22.50 5
100 First Union Corporation, expires 1/20/01,
exercise price $25 6
25 Home Depot, Inc. (The), expires 11/18/00,
exercise price $55 30
100 Lockheed Martin Corporation, expires 12/16/00,
exercise price $30 4
100 MBIA, Inc., expires 11/18/00,
exercise price $60 1
50 J.P. Morgan & Company, expires 12/16/00,
exercise price $150 19
200 PG&E Corporation, expires 12/16/00,
exercise price $25 54
100 Westvaco Corporation, expires 1/20/01,
exercise price $30 29
--------
Total Put Options Written
(Premiums received $214) 167
--------
Total Options Written (Premiums
received $469) $ 1,037
=======
NV - Naamloze Vennootschaap (Dutch Corporation)
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
TAX-EXEMPTINTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
LONG-TERM INVESTMENTS 93.9%
MUNICIPAL BONDS 93.9%
ALABAMA 1.5%
Anniston, Alabama Regional Medical
Center Board
$1,400 Project, 8.00%, 7/01/11, Escrowed
to Maturity $ 1,708
--------
ALASKA 1.3%
Alaska State Housing Finance Corporation,
1,465 6.375%, 12/01/12, Prerefunded 12/01/02 1,541
--------
ARIZONA 12.1%
Arizona State Municipal Funding Program,
1,500 8.75%, 8/01/07, Escrowed to Maturity 1,852
Arizona Health Facilities Hospital Revenue,
1,870 7.25%, 11/01/14, Prerefunded 11/01/03 2,030
Maricopa County, Arizona Elementary School
District, No. 068, Alhambra, 5.625%,
7/01/13,
2,500 Partially Prerefunded 2,594
Phoenix, Arizona Street & Highway Users,
Partially Prerefunded 7/01/02, Remainder
Escrowed to Maturity:
1,000 6.50%, 7/01/09 1,050
4,700 6.25%, 7/01/11 4,877
Scottsdale Arizona Water and Sewer,
1,290 7.00%, 7/01/06 1,441
--------
13,844
--------
CALIFORNIA 0.7%
San Marcos, California Certificates of
Participation,
Principal Only, 0.00%, 2/15/06,
1,085 Escrowed to Maturity 860
--------
COLORADO 1.8%
Fruita, Colorado, Escrowed to Maturity,
485 9.25%, 4/01/03 528
Loveland, Colorado, Water Utility Improvements,
1,365 8.875%, 11/01/05, Escrowed to Maturity 1,563
--------
2,091
--------
DELAWARE 4.0%
Delaware State Economic Development
Authority,
First Mortgage; Gilpin Hall Project
2,800 7.625%, 7/01/25, Prerefunded 7/01/05 3,192
Delaware State Health Facilities Authority
Revenue,
1,265 7.00%, 10/01/15, Prerefunded to
Various Dates 1,364
--------
4,556
--------
GEORGIA 7.1%
Municipal Electric Authority, Georgia,
7,000 4.189%, 1/01/20<F1> 7,000
Fulco, Georgia Hospital Authority
Anticipation
1,090 Certificates, 6.25%, 9/01/13,
Prerefunded 9/01/02 1,144
--------
8,144
--------
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
ILLINOIS 24.2%
Elgin, Illinois,
$2,990 7.25%, 1/01/04 $ 3,219
Lake County, Illinois, School District 112,
1,415 9.00%, 12/01/05 1,686
Cook County, Illinois Niles Twp. School
District,
1,560 Principal Only, 0.00%, 12/01/07 1,099
Cook County, Illinois Cicero School
District,
1,000 8.50%, 12/01/04 1,141
Bolingbrook, Illinois, Principal Only
1,080 0.00%, 1/01/05 887
Chicago, Illinois,
675 11.60%, 1/01/01 683
Chicago, Illinois, Equipment,
5,000 5.60%, 1/01/06 5,204
Granite, Illinois Single Family Mortgage
Revenue,
925 7.75%, 10/01/11, Escrowed to Maturity 1,070
Hodgkins, Illinois,
1,200 9.50%, 12/01/09, Prerefunded 12/01/01 1,300
Illinois Educational Facility Authority,
Revenue,
2,270 4.288%, 12/01/25<F1> 2,270
Illinois Health Facilities Authority
Revenue,
Memorial Hospital, 7.25%, 5/01/22,
1,000 Prerefunded 5/01/02 1,058
Illinois Health Facilities Authority
Revenue,
Evangelical - A, 6.75%, 4/15/12,
1,320 Escrowed to Maturity 1,492
Illinois State Certificates of
Participation,
1,000 6.00%, 7/01/06 1,064
Regional Transportation Authority,
Illinois Series B,
1,000 6.00%, 6/01/07, Prerefunded 6/01/04 1,064
Springfield, Illinois Electric Revenue,
1,000 6.00%, 3/01/04 1,043
1,050 6.00%, 3/01/06 1,114
University of Illinois,
1,005 6.10%, 10/01/03, Escrowed to Maturity 1,049
Will County, Illinois Community School
District #365,
1,685 Principal Only, 0.00%, 11/01/05 1,322
--------
27,765
--------
INDIANA 1.8%
Indiana Transportation Financial
Authority,
2,000 5.75%, 6/01/12 2,130
--------
KANSAS 1.1%
Emporia, Kansas Sewer System,
1,165 6.25%, 11/15/07, Escrowed to
Maturity 1,294
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
TAX-EXEMPTINTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Market Value
(in thousands) (in thousands)
---------------- -------------
KENTUCKY 2.6%
Kentucky State Turnpike Authority Revenue,
$1,400 7.20%, 7/01/09, Escrowed to Maturity $ 1,589
Louisville, Kentucky Water & Sewer Revenue,
1,250 6.00%, 11/15/07, Escrowed to Maturity 1,350
--------
2,939
--------
LOUISIANA 1.8%
Louisiana Public Facilities Authority
Hospital Revenue,
1,915 7.25%, 10/01/22, Prerefunded 10/01/02 2,045
--------
MICHIGAN 0.9%
Detroit Michigan Water Supply System,
1,000 6.25%, 7/01/12, Prerefunded 7/01/02 1,043
--------
MINNESOTA 3.8%
Minneapolis, Minnesota Hospital and
Rehabilitation,
St. Mary's Hospital,
1,210 10.00%, 6/01/13, Escrowed to Maturity 1,579
St. Paul, Minnesota, Port Authority Hotel,
2,335 8.05%, 8/01/21, Prerefunded 8/01/08 2,811
--------
4,390
--------
NEVADA 2.7%
Nevada State Capital Improvements,
3,000 5.25%, 6/01/11 3,054
--------
NEW JERSEY 0.8%
New Jersey State Turnpike Authority Revenue,
820 6.75%, 1/01/09, Escrowed to Maturity 883
--------
NEW MEXICO 2.8%
Farmington, New Mexico Power Revenue Bonds,
2,645 9.875%, 1/01/13, Prerefunded 7/01/05 3,169
--------
OHIO 2.8%
Cleveland, Ohio Parking Facilities Revenue,
1,125 8.10%, 9/15/22, Prerefunded 9/15/02 1,217
Ohio Air Quality Development Authority
Revenue,
2,000 4.587%, 12/01/15<F1> 2,000
--------
3,217
--------
OKLAHOMA 2.4%
Cherokee County, Oklahoma, Principal Only,
1,340 0.00%, 11/01/11, Escrowed to Maturity 765
Tulsa County, Oklahoma Home Finance
Authority
Single Family Mortgage Revenue,
1,710 6.90%, 8/01/10, Escrowed to Maturity 1,994
--------
2,759
--------
PENNSYLVANIA 2.1%
Hazleton, Pennsylvania, Health Services
Authority,
955 8.38%, 7/01/12, Prerefunded to 1/01/03 1,046
Philadelphia Hospitals Authority Revenue,
1,150 9.875%, 7/01/10, Prerefunded to 7/01/05 1,398
--------
2,444
--------
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
TENNESSEE 1.3%
Metropolitan Government Nashville & Davidson
County, Tennessee Water & Sewer,
Principal Only,
$5,000 0.00%, 12/01/13, Prerefunded 12/01/02 $ 1,447
--------
TEXAS 6.3%
Amarillo, Texas Independent School District,
1,035 7.00%, 2/01/06 1,147
Cypress-Fairbanks, Texas Independent
School District,
4,000 5.50%, 2/15/18 3,995
Houston, Texas Airport System Revenue,
950 8.20%, 7/01/05, Escrowed to Maturity 1,046
Texas State Turnpike Authority, Dallas,
1,000 6.50%, 1/01/08 1,105
--------
7,293
--------
VIRGINIA 1.8%
Peninsula Ports Authority Virginia
Health Care
Facilities - Mary Immaculate
Project, 7.00%,
2,000 8/01/17, Prerefunded to 8/01/04
& 8/01/06 2,100
--------
WASHINGTON 5.3%
Seattle, Washington, Library Facilities,
4,515 5.375%, 12/01/14 4,576
Washington State,
1,500 6.30%, 9/01/02 1,537
--------
6,113
--------
WISCONSIN 0.9%
Wausau, Wisconsin School District,
1,000 6.50%, 4/01/10, Prerefunded 4/01/02 1,027
--------
Total Municipal Bonds (Cost $108,379) 107,856
--------
Number
of Shares
(in thousands)
--------------
SHORT-TERM INVESTMENTS 4.2%
INVESTMENT COMPANIES 4.2%
4,728 Financial Square Tax-Exempt 4,728
33 Tax-Free Investment Trust 33
--------
Total Short-Term Investments (Cost $4,761) 4,761
--------
Total Investments (Cost $ 113,140) 98.1% 112,617
--------
Other Assets, less Liabilities 1.9% 2,234
--------
TOTAL NET ASSETS 100.0% $114,851
========
<F1> Variable rate security
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MISSOURI TAX-EXEMPT BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
LONG-TERM INVESTMENTS 94.0%
MUNICIPAL BONDS 94.0%
MISSOURI 87.1%
Clay County, Public Building Authority,
Leasehold Revenue, 5.125%, 5/15/14,
$3,280 Callable on 5/15/08 @ 100 $ 3,272
Clayton SchoolDistrict, G.O., 5.00%,
3,325 3/01/17, Callable on 3/01/07 @ 101 3,164
Columbia, Water & Electrical Revenue,
Series A, 6.125%, 10/01/12, Prerefunded
1,000 on 10/01/02 @ 102 1,049
Hazelwood School District, G.O., 5.85%,
1,000 3/01/09, Callable on 3/01/04 @ 100 1,036
Jackson County School District, G.O.,
2,000 4.85%, 3/01/13, Callable on 3/01/08 @ 100 1,947
Jefferson City School District, Series A,
1,000 6.70%, 3/01/11 1,128
Kansas City School District Building,
Capital Improvement Project, 5.00%,
2/01/14,
2,230 Callable on 2/01/04 @ 102 (FGIC Insured) 2,198
Kansas City School District Building,
Capital Improvement Project, 5.15%,
2/01/08,
2,415 Callable on 2/01/04 @ 102 (FGICInsured) 2,466
Kansas City School District Building,
Elementary Improvement Project, Series D,
5.00%, 2/01/14, Callable on 2/01/04 @ 102
1,000 (FGICInsured) 986
Kansas City School District Building,
SeriesC, 5.375%, 7/01/05, Callable on
1,000 7/01/03 @ 101 (FGICInsured) 1,028
1,000 Kansas City Sewer Revenue, 5.75%, 3/01/01 1,005
Kansas City Water Revenue, Series A, 5.00%,
4,390 12/01/11, Callable on 12/01/08 @ 101 4,424
Kansas City Water Revenue, Series B, 5.00%,
2,200 12/01/16, Callable on 12/01/06 @ 101 2,122
Kansas City, Series A, G.O., 5.25%, 9/01/12,
3,980 Callable on 3/01/08 @ 101 4,062
Mehlville School District No. 09, G.O.,
6.00%, 2/15/13,
1,500 Callable on 2/15/03 @ 102 (MBIA Insured) 1,576
Missouri Southern State College Revenue,
5.25%, 12/01/12, Prerefunded on 12/01/02
750 @ 100 (MBIA Insured) 762
Missouri State Board of Public Buildings,
1,500 6.40%, 12/01/09, Callable on 12/01/01
@ 100 1,529
Missouri State Environmental Improvement &
Energy Resources Authority, Water Pollution
Control Revenue, Series A, 6.45%, 7/01/08,
1,000 Callable on 7/01/02 @ 102 1,050
Missouri State Environmental Improvement &
Energy Resources Authority, Water
Pollution
Control Revenue, Series A, 6.875%, 6/01/14,
1,100 Callable on 12/01/01 @ 102 1,147
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
MISSOURI 87.1% (CONT.)
Missouri State Environmental Improvement &
Energy Resources Authority,
Water Pollution
Control Revenue, Series A, 6.55%, 7/01/14,
$ 500 Callable on 7/01/02 @ 102 $ 524
Missouri State Environmental Improvement &
Energy Resources Authority, Water
Pollution
Control Revenue, Series A, 5.50%, 7/01/16,
2,495 Callable on 7/01/10 @ 100 2,542
Missouri State Environmental Improvement &
Energy Resources Authority, Water
Pollution
Control Revenue, Series A, 5.00%, 1/01/19,
2,200 Callable on 7/01/08 @ 101 2,087
Missouri State Environmental Improvement &
Energy Resources Authority, Water
Pollution
Control Revenue, Series B, 5.25%, 1/01/15,
2,180 Callable on 1/01/09 @ 101 2,187
Missouri State Environmental Improvement &
Energy Resources Authority, Water Pollution
Control Revenue, Series E, 5.625%, 7/01/16,
1,250 Callable on 7/01/06 @ 101 1,279
Missouri State Environmental Improvement &
Energy Resources Authority, Water
Pollution
Control Revenue, Series D, 5.875%,
1/01/15,
1,000 Callable on 1/01/06 @ 101 1,041
Missouri State Health & Educational
Facilities Authority,
Health Facilities Revenue, Barnes Hospital,
500 7.125%, 12/15/12, Prerefunded on 12/15/00
@ 102512
Missouri State Health & Educational
Facilities Authority, Health Facilities
Revenue, Barnes-Jewish, Inc., Series A,
5.25%, 5/15/21,
2,500 Callable on 5/15/03 @ 102 2,342
Missouri State Health & Educational
Facilities Authority, Health
Facilities Revenue,
Bethesda Eye Institute, 6.625%,
11/01/09, Prerefunded on
600 11/01/01 @ 102 (LOC-Credit Local de France) 625
Missouri State Health & Educational
Facilities Authority, Health Facilities
Revenue,
3,310 BJC Health Systems, SeriesA, 6.75%,
5/15/12 3,813
Missouri State Health & Educational
Facilities Authority, Health Facilities
Revenue, Children's
Mercy Hospital Projects, 5.625%, 5/15/12,
1,200 Callable on 5/15/03 @ 101 (MBIAInsured) 1,228
Missouri State Health & Educational
Facilities
Authority, Health Facilities Revenue,
Freeman
Hospital Project, Series A, 5.375%,
2/15/14,
1,000 Callable on 2/15/04 @ 102 (FSAInsured) 1,007
Missouri State Health & Educational
Facilities
Authority, Health Facilities Revenue,
Nurshome
Hospital, 5.00%, 5/15/28, Callable on
3,105 5/15/08 @ 101 2,717
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MISSOURI TAX-EXEMPT BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
MISSOURI 87.1% (CONT.)
Missouri State Health & Educational
Facilities Authority, Health Facilities
Revenue, Sisters of Mercy Health
System, Series A, 6.25%, 6/01/15,
$ 750 Callable on 6/01/02 @ 102 (MBIAInsured) $ 779
Missouri State Health & Educational
Facilities Authority, Health
Facilities Revenue, SSMHealth
Care System, Series A, 5.00%, 6/01/12,
1,500 Callable on 6/01/08 @ 101 (MBIAInsured) 1,496
Missouri State Health & Educational Facilities
Authority, Health Facilities Revenue,
SSMHealth Care System, Series A, 5.00%,
6/01/18,
3,895 Callable on 6/01/08 @ 101 (MBIAInsured) 3,681
Missouri State Health & Educational
Facilities Authority, Health Facilities
Revenue, SSMHealth Care System,
Series AA, 6.25%, 6/01/16,
1,610 Callable on 6/01/02 @ 102 (MBIAInsured) 1,671
Missouri State Health & Educational
Facilities Authority, Health Facilities
Revenue, SSMHealth Care System,
Series AA, 6.25%, 6/01/16,
390 Prerefunded on 6/01/02 @ 102
(MBIAInsured) 408
Missouri State Health & Educational
Facilities Authority,
Health Facilities Revenue,
St. Luke's Health System,
5.10%, 11/15/13, Callable on
2,000 11/15/03 @ 102 (MBIAInsured) 1,985
Missouri State Higher Education
Loan Authority, Student Loan
1,000 Revenue, Series A, 5.75%, 2/15/02 1,013
Missouri State Housing Development Revenue,
6.60%, 7/01/24, Callable on 1/01/03 @ 100
685 (FHAInsured) 697
Missouri State Housing Development Revenue,
Series B, 7.00%, 9/01/10, Callable
415 on 9/01/01 @ 102 (FHAInsured) 429
Missouri State Housing Development Revenue,
310 Series C, 6.90%, 7/01/18, Callable on
1/01/02 @ 102 320
Missouri State Water Pollution Control
Revenue, Series A, G.O., 5.75%, 8/01/18,
2,085 Callable on 8/01/06 @ 100 2,133
Missouri State Water Pollution Control
Revenue, Series A, G.O., 5.75%, 8/01/12,
1,000 Callable on 8/01/02 @ 100 1,015
Missouri State, Fourth Street Building,
Series A, G.O., 5.40%, 8/01/09,
2,000 Callable on 8/01/06 @ 100 2,071
Missouri State, Third Street Building,
Series A, G.O., 5.25%, 8/01/08,
1,000 Callable on 8/01/02 @ 100 1,010
Missouri Western State College Revenue,
5.40%, 10/01/16, Callable on 10/01/03
1,000 @ 102 (MBIA Insured) 1,008
Missouri Series A, G.O., 5.125%, 8/01/09,
1,000 Callable on 8/01/02 @ 100 1,007
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
MISSOURI 87.1% (CONT.)
North Kansas City Hospital Revenue,
5.00%, 11/15/28, Callable on 11/15/08
$3,000 @ 101 (AMBAC Insured) $ 2,672
O'Fallon, G.O., 5.75%, 3/01/10, Callable on
570 3/01/01 @ 100 (MBIA Insured) 572
Sikeston Electric Revenue, 5.00%, 6/01/22,
1,000 Callable on 6/01/06 @ 101 (MBIA Insured) 932
Sikeston Electric Revenue, 6.25%, 6/01/22,
1,000 Prerefunded on 6/01/02 @ 102
(MBIA Insured) 1,046
Southeast Missouri Correctional
Facilities Revenue,
500 5.75%, 10/15/08, Callable on 10/15/00
@ 102 510
Southeast Missouri Correctional
Facilities Revenue,
500 5.75%, 10/15/16, Callable on 10/15/02 @ 100 506
Springfield School District No. R-12,
Series A, G.O., 5.25%, 3/01/11,
Callable on 03/01/03
2,000 @ 100 (MBIA Insured) 2,019
Springfield Water Works Revenue, Series A,
2,000 5.60%, 5/01/23, Callable on 05/01/03 @ 102 2,083
St. Charles County Community College,
G.O., 6.00%, 2/15/09, Callable on 02/15/01
1,000 @ 102 (AMBACInsured) 1,023
3,250 St. Louis Co., G.O., 5.00%, 2/01/12 3,264
St. Louis County Industrial Development
Authority, Health Facility Revenue,
Lutheran Health Care Association, Series A,
800 7.375%, 2/01/14, Prerefunded on
02/01/02 @ 102842
St. Louis County Industrial Development
Authority, Pollution Control Revenue,
400 Anheuser-Busch Co. Project, 6.65%, 5/01/16 443
St. Louis County, Pattonville R-3
School District,
G.O., 6.25%, 2/01/10, Prerefunded on 2/01/02
750 @ 100 (FGICInsured) 766
St. Louis County, Rockwood School
District No. R-6,
1,000 G.O., 5.00%, 2/01/04, Callable on
2/01/02 @ 10 11,016
St. Louis County, Series B, G.O.,
5.50%, 2/01/13,
2,500 Callable on 2/01/03 @ 100 2,540
St. Louis Public Safety, G.O., 5.125%,
4,185 2/15/17, Callable on 8/15/09 @ 100
(FGICInsured) 4,083
St. Louis WaterRevenue, 6.00%, 7/01/14,
500 Prerefunded on 7/01/04 @ 102 (FGICInsured) 533
St. Peters, G.O., 5.85%, 1/01/13,
1,065 Prerefunded on 1/01/02 @ 102 1,102
St. Peters, G.O., 5.80%, 1/01/09,
1,740 Prerefunded on 1/01/02 @ 102 1,800
University City Industrial Development
Authority, Multi-family Housing Revenue,
Series A, 5.95%, 12/20/25, Callable on
1,400 12/20/05 @ 102 1,418
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MISSOURI TAX-EXEMPT BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Market Value
(in thousands) (in thousands)
---------------- -------------
MISSOURI 87.1% (CONT.)
University Health Facilities Revenue,
University of Missouri Health System,
Series A, 5.60%, 11/01/26, Callable on
$5,000 11/01/06 @ 102 (AMBACInsured) $ 4,966
University of Missouri Health Systems,
Series A, 5.125%, 11/01/28, Callable on
4,000 11/01/08 @ 100 (AMBACInsured) 3,644
University of Missouri, University Revenue,
2,000 5.50%, 11/01/23, Callable on 11/01/03
@ 101 1,977
University of Missouri, University Revenue,
5,000 5.80%, 11/01/27, Callable on
11/01/07 @ 101 5,051
University of Missouri, University Revenue,
3,000 5.50%, 11/01/21, Callable on
11/01/07 @ 101 2,974
University of Missouri, University Revenue,
Series A, 6.50%, 11/01/11, Prerefunded on
925 11/01/00 @ 102 (AMBACInsured) 943
Wentzville School District No. R-4, G.O.,
5.10%,
3,000 03/01/18, Callable on 3/01/08 @ 100
(FSAInsured) 2,903
--------
130,206
--------
PUERTO RICO 6.9%
Puerto Rico Commonwealth, G.O., 6.45%,
500 7/01/17, Prerefunded on 7/01/04 @ 101.5 544
Puerto Rico Commonwealth, Series A, G.O.,
1,000 6.00%, 7/01/06, Callable on
7/01/02 @ 101.5 1,038
Puerto Rico Municipal Finance Agency,
3,000 5.50%, 8/01/23, Callable on 8/01/09 @ 100 3,017
Puerto Rico Public Buildings Authority,
Public Education and Health
Facilities Revenue, Series B, 5.00%,
7/01/27, Callable on 7/01/07
4,000 @ 101.5 (AMBACInsured) 3,722
Puerto Rico Public Building Authority,
Public Education and Health Facilities
2,000 Revenue, Series M, 5.50%, 7/01/21,
Callable on 7/01/03 @ 101.5 1,964
--------
10,285
--------
Total Long-Term Investments
(Cost $140,230) 140,491
--------
Number
of Shares Market Value
(in thousands) (in thousands)
-------------- --------------
SHORT-TERM INVESTMENTS 6.5%
INVESTMENT COMPANIES 6.5%
6,825 Federated Tax-Free Fund $ 6,825
2,833 Nuveen Tax-Exempt Fund 2,833
--------
Total Short-Term Investments (Cost $9,658) 9,658
--------
Total Investments (Cost $149,888) 100.5% 150,149
--------
Liabilities, less Other Assets (0.5)% (689)
--------
Total Net Assets 100.0% $149,460
========
AMBAC AMBACIndemnity Corp.
FGIC Financial Guaranty Insurance Corp.
FHA Federal Housing Administration
FSA Financial Securities Assurance, Inc.
G.O. General Obligation
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
NATIONAL MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
LONG-TERM INVESTMENTS 97.1%
MUNICIPAL BONDS 97.1%
ALASKA 0.4%
Alaska State, Housing Finance Corp.,
Series A, 5.70%, 12/01/11, Callable on
$1,000 12/01/05 @ 102 (MBIA Insured) $ 1,035
--------
ARIZONA 1.9%
Arizona State, Transportation Board
4,580 Highway Revenue, 6.00%, 7/01/12,
Callable on 7/01/09 @ 100 4,942
--------
CALIFORNIA 2.0%
San Francisco Bay Area Rapid
Transit Tax Revenue,
5,000 5.25%, 7/01/17, Callable on
7/01/08 @ 101 5,041
--------
COLORADO 4.9%
Adams County School District No. 012,
G.O., 5.40%,
6,655 12/15/13, Callable on 12/15/07 @ 101
(FGIC Insured) 6,799
Colorado Springs, Utilities Revenue, System
Improvement, Series A, 5.25%, 11/15/22,
6,160 Callable on 11/15/07 @ 100 5,859
--------
12,658
--------
CONNECTICUT 1.7%
Connecticut State, Clean Water
Foundation Revenue,
4,360 5.25%, 3/01/20, Callable on
3/01/08 @ 101 4,256
--------
DISTRICT OF COLUMBIA 1.9%
District of Columbia Water & Sewer
Authority Revenue, 5.50%, 10/01/18,
5,000 Callable on 4/01/09 @ 160 (FSA Insured) 5,000
--------
FLORIDA 6.1%
Florida State Department of Environmental
Preservation 2000, General Services
Revenue, Series A, 5.50%, 7/01/13,
5,000 Callable on 7/01/06 @ 101 (MBIA Insured 5,123
Florida State Department of
Transportation, G.O.,
5,525 5.25%, 7/01/17, Callable on 7/01/06 @ 101 5,458
Palm Beach County, Park & Revenue, 5.25%,
Recreational Facilities 11/01/16,
Callable on 11/01/06
5,000 @ 102 (FSA Insured) 4,984
--------
15,565
--------
HAWAII 5.1%
Hawaii State, Series CN, G.O., 5.50%,
8,000 3/01/14, Callable on 3/01/07 @ 102
(FGIC Insured) 8,165
Hawaii State, Series CR, G.O., 5.00%,
5,000 4/01/16, Callable on 4/01/08 @ 101
(MBIA Insured) 4,807
--------
12,972
--------
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
ILLINOIS 7.2%
Cook County, Series A, G.O., 6.25%
$9,090 11/15/12 (MBIA Insured) $ 10,064
Illinois State, G.O., 5.25%, 2/01/13,
8,400 Callable on 2/01/07 @ 101
(FGIC Insured) 8,460
--------
18,524
--------
INDIANA 1.5%
Indiana Transportation Finance Authority,
Highway Revenue, Series A, 5.75%, 6/01/12
3,500 (AMBAC Insured) 3,732
--------
MASSACHUSETTS 7.4%
Massachusetts Bay Transportation Authority,
Series A, 5.00%, 3/01/12, Callable on
5,795 3/01/07 @ 101 (FGIC Insured) 5,810
Massachusetts Bay Transportation Authority,
Series A, 5.125%, 3/01/17, Callable
6,165 on 3/01/07 @ 101 (FGIC Insured) 5,976
Massachusetts State Water Pollution
Abatement Trust, Series 3, 5.625%,
7,115 2/01/15, Callable on 2/01/07 @ 101 7,296
--------
19,082
--------
MINNESOTA 6.2%
Minnesota State, G.O., 4.90%, 8/01/14,
5,000 Callable on 8/01/07 @ 100 4,863
Monticello Independent School District ,
6,000 No. 882 G.O., 5.40%, 2/01/15,
Callable on 2/01/06 @ 1006,167
Rochester Health Care Facilities, Mayo
Foundation, Series A, 5.375%, 11/15/18,
5,000 Callable on 5/15/08 @ 101 4,901
--------
15,931
--------
MISSISSIPPI 2.6%
Mississippi State, Series A, G.O.,
6,835 5.125%, 7/01/14, Callable on
7/01/07 @ 100 6,752
--------
NEVADA 7.1%
Clark County Flood Control, Series F, G.O.,
5.00%, 11/01/12, Callable on
6,460 11/01/08 @ 101(FGIC Insured) 6,460
Clark County School District, Series B,
5,000 G.O., 5.50%, 6/15/11, Callable on
6/15/07 @ 101 (FGIC Insured) 5,205
Nevada State, 5.00%, 5/15/15, Callable on
6,745 5/15/08 @ 100 6,476
--------
18,141
--------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
NATIONAL MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
NEW JERSEY 4.9%
Camden County, Municipal Utilities Authority
Sewer Revenue, Series C, G.O., 5.10%,
$5,000 7/15/12, Callable on 7/15/08 @ 101 $ 5,027
New Jersey State Transportation System,
7,500 Series A, 5.00%, 6/15/14, Callable on
6/15/08 @ 100 7,412
--------
12,439
--------
NEW YORK 2.0%
New York State Thruway Authority, Series A,
5.25%, 4/01/14, Callable on 4/01/07 @ 102
5,000 (AMBAC Insured) 5,030
--------
NORTH DAKOTA 2.0%
Fargo Water Revenue, 5.125%, 1/01/17,
5,250 Callable on 1/01/08 @ 100 (MBIA Insured) 5,090
--------
OHIO 2.9%
Ohio State Building Authority, 4.75%,
8,000 10/01/17, Callable on 10/01/08 @ 101 7,394
--------
OREGON 2.6%
Washington County, Unified Sewer Agency,
6,110 Sewer Revenue, Series 1, 5.75%, 10/01/10
(FGIC Insured) 6,588
--------
PENNSYLVANIA 2.0%
Pennsylvania State, G.O., 5.125%, 9/15/11,
5,000 Callable on 3/15/07 @ 101.5
(AMBAC Insured) 5,083
--------
RHODE ISLAND 2.0%
Rhode Island State, Series A, G.O., 5.125%,
5,055 8/01/12, Callable on 8/01/07 @ 101
(MBIA Insured) 5,088
--------
TEXAS 12.6%
Cypress-Fairbanks Independent School
5,000 District, 5.50%, 2/15/18, Callable
on 2/15/10 @ 100 4,999
Harris County Health Facilities
Development Revenue,
Memorial Hospital Systems Project,
Series A, 5.50%,
8,000 6/01/17, Callable on 6/01/07 @ 102
(MBIA Insured)7,982
San Antonio Independent School
District, G.O., 5.125%,
6,000 8/15/14, Callable on 8/15/08 @ 100
(PSF Guaranteed) 5,944
Texas State, G.O., 5.40%, 8/01/21,
6,750 Callable on 8/01/06 @ 100 6,601
University of Texas Permanent
University Fund,ollege & University
C Revenue, 5.00%, 7/01/14,
7,060 Callable on 7/01/08 @ 100
(PUFG Guaranteed) 6,882
--------
32,408
--------
Principal Amount Market Value
(in thousands) (in thousands)
---------------- --------------
VIRGINIA 1.9%
Virginia State Transportation Board,
Transportation Contract Revenue,
U.S. Route 58 Corridor, Series B,
$4,920 5.125%, 5/15/12, Callable on
5/15/06 @ 101 $ 4,976
--------
WASHINGTON 8.2%
King County School District No. 415, G.O.,
5.35%, 12/01/16, Callable on
4,050 12/01/07 @ 100 (MBIA Insured) 4,037
King County, Series F, G.O., 5.125%,
5,000 12/01/14, Callable on 12/01/07 @ 100 4,919
Washington State Motor Vehicle Fuel Tax,
Series D, G.O., 5.375%,
1/01/22, Callable on 1/01/07 @ 100
8,000 (FGIC Insured) 7,730
Washington State, Series C, G.O., 5.50%,
4,190 1/01/17, Callable on 1/01/07 @ 100 4,201
--------
20,887
--------
Total Long-Term Investments
(Cost $246,903) 248,617
--------
Number
of Shares
(in thousands)
--------------
SHORT-TERM INVESTMENTS 1.8%
INVESTMENT COMPANIES 1.8%
4,554 Federated Tax-Free Fund 4,554
--------
Total Short-Term Investments (Cost $4,554) 4,554
--------
Total Investments (Cost $251,457) 98.9% 253,171
--------
Other Assets, less Liabilities 1.1% 2,812
--------
TOTAL NET ASSETS 100.0% $255,983
========
AMBAC AMBAC Indemnity Corp.
FGIC Financial Guaranty Insurance Corp.
FSA Financial Securities Assurance, Inc.
G.O. General Obligation
MBIA Municipal Bond Insurance Association
PSF Permanent School Fund
PUFG Permanent University Fund Guarantee
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
This page intentionally left blank.
<PAGE>
(LOGO) FIRSTAR FUNDS
December 2000
DEAR SHAREHOLDER:
INVESTMENT REVIEW
Money Market Funds continued to provide strong inflation-adjusted returns. In an
attempt to slow down economic growth and fend off inflation, the Federal Reserve
increased the overnight lending rate from 5.50% at the beginning of the year to
6.50% during the first half of 2000. As a result, money market rates rose
steadily through the early part of the year. The Federal Reserve maintained the
overnight lending rate at 6.50% in subsequent months, and, as a result, money
market rates have leveled off.
STRATEGY
Firstar Money Market Funds are managed with quality and safety of principal as
primary goals. All securities purchased by the Funds must meet our internal high
standards for minimal credit risk and must also meet the strict guidelines set
by the Securities and Exchange Commission ("SEC"). Our credit research team
closely monitors all invesments to ensure quality standards are met.
--------------------------------------------------------------------------------
FIRSTAR MONEY MARKET FUNDS 7-DAY YIELDS
--------------------------------------------------------------------------------
PERIOD ENDED OCTOBER 31, 2000
-----------------------------
INSTITUTIONAL
MONEY MARKET
FUND<F1><F2>
CURRENT EFFECTIVE
6.29% 6.49%
-----------------------------
-----------------------------
MONEY MARKET
FUND<F1>
CURRENT EFFECTIVE
5.91% 6.08%
-----------------------------
-----------------------------
TAX-EXEMPT
MONEY MARKET
FUND
CURRENT EFFECTIVE
3.59% 3.65%
-----------------------------
-----------------------------
OHIO TAX-EXEMPT
MONEY MARKET
FUND<F1>
CURRENT EFFECTIVE
3.44% 3.50%
-----------------------------
-----------------------------
U.S. GOVERNMENT
MONEY MARKET
FUND<F1>
CURRENT EFFECTIVE
5.87% 6.05%
-----------------------------
-----------------------------
U.S. TREASURY
MONEY MARKET
FUND<F2>
CURRENT EFFECTIVE
5.53% 5.68%
-----------------------------
<F1> After fee waivers. Had fees not been waived, current and effective yields
would have been 5.70% and 5.87% for the Money Market Fund, 6.11% and 6.31%
for the Institutional Money Market Fund, 5.64% and 5.82% 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 nor is there any assurance
the Funds will be able to maintain a stable net asset value of $1.00 per
share.
<F2> Institutional Shares.
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
TAX- AVERAGE/TM
IBC'S IBC'S EXEMPT /ALL
IBC'S MONEY FIRSTAR MONEY MONEY OHIO TAX-FREE FIRSTAR
FIRSTAR INSTITUTIONAL FUND TAX- FUND MARKET TAX- TAX U.S.
INSTITUTIONAL AVERAGE/TM FIRSTAR AVERAGE/TM EXEMPT AVERAGE/ TAX EXEMPT EQUIVALENT GOV'T.
MONEY /ALL MONEY /ALL MONEY TM/ALL EQUIVALENT MONEY YIELD MONEY
MARKET TAXABLE MARKET TAXABLE MARKET TAX-FREE YIELD<F2> MARKET <F2> MARKET
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------------
2000
October 6.28% 6.14% 5.90% 5.99% 3.58% 3.68% 5.59% 3.47 5.75% 5.84%
-----------------------------------------------------------------------------------------------------------------------------------
September 6.27% 6.15% 5.91% 6.00% 3.59% 3.65% 5.61% 3.40 5.70% 5.83%
-----------------------------------------------------------------------------------------------------------------------------------
August 6.28% 6.14% 5.89% 5.99% 3.48% 3.52% 5.44% 3.30 5.50% 5.83%
-----------------------------------------------------------------------------------------------------------------------------------
July 6.27% 6.11% 5.87% 5.96% 3.33% 3.43% 5.20% 3.34 5.36% 5.83%
-----------------------------------------------------------------------------------------------------------------------------------
June 6.17% 6.03% 5.76% 5.87% 3.55% 3.62% 5.55% 3.46 5.66% 5.70%
-----------------------------------------------------------------------------------------------------------------------------------
May 5.91% 5.77% 5.53% 5.62% 3.95% 4.04% 6.17% 3.85 6.31% 5.44%
-----------------------------------------------------------------------------------------------------------------------------------
April 5.71% 5.62% 5.41% 5.46% 3.28% 3.37% 5.13% 3.27 5.31% 5.25%
-----------------------------------------------------------------------------------------------------------------------------------
March 5.63% 5.48% 5.25% 5.32% 3.09% 3.11% 4.83% 2.98 4.86% 5.10%
-----------------------------------------------------------------------------------------------------------------------------------
February 5.59% 5.37% 5.19% 5.22% 2.83% 2.93% 4.42% 2.74 4.55% 4.89%
-----------------------------------------------------------------------------------------------------------------------------------
January 5.47% 5.24% 5.10% 5.11% 3.10% 2.86% 4.84% 3.12 4.41% 4.69%
-----------------------------------------------------------------------------------------------------------------------------------
1999
December 5.50% 5.20% 5.19% 5.06% 3.09% 3.23% 4.83% 3.01 4.88% 4.75%
-----------------------------------------------------------------------------------------------------------------------------------
November 5.31% 5.06% 4.92% 4.92% 2.82% 3.02% 4.41% 3.12 4.70% 4.56%
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
FIRSTAR FIRSTAR
U.S. U.S. IBC'S
IBC'S TREASURY TREASURY MONEY
MONEY MONEY MONEY FUND
FUND MARKET MARKET AVERAGE/TM
AVERAGE/TM RETAIL INSTI- /U.S.
/GOV'T. A TUTIONAL TREASURY
--------------------------------------------------------------
2000
October 5.80% 5.32% 5.47% 5.56%
-----------------------------------------------------------
September 5.80% 5.35% 5.50% 5.55%
-----------------------------------------------------------
August 5.77% 5.33% 5.48% 5.47%
-----------------------------------------------------------
July 5.71% 5.28% 5.44% 5.35%
-----------------------------------------------------------
June 5.65% 5.29% 5.44% 5.29%
-----------------------------------------------------------
May 5.40% 4.98% 5.13% 5.16%
-----------------------------------------------------------
April 5.28% 4.93% 5.07% 5.13%
-----------------------------------------------------------
March 5.14% 4.78% 4.93% 5.00%
-----------------------------------------------------------
February 5.01% 4.62% 4.77% 4.79%
-----------------------------------------------------------
January 4.76% 4.36% 4.56% 4.64%
-----------------------------------------------------------
1999
December 4.76% 4.31% 4.46% 4.57%
-----------------------------------------------------------
November 4.67% 4.34% 4.49% 4.39%
-----------------------------------------------------------
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 controlled economic growth. Next year, we anticipate
the Federal Reserve will take a loosening stance and roll interest rates back
slightly. As always, we will continue to manage the funds in a manner that
provides for preservation of capital and liquidity while maintaining superior
credit quality.
We appreciate your continued confidence in the Firstar Money Market Funds.
Brad Peters, CFA, CPA, CFP
Margaret Radske
Maclovio Vega
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)
OCTOBER 31, 2000
<TABLE>
<CAPTION>
OHIO U.S. U.S.
INSTITUTIONAL TAX-EXEMPT TAX-EXEMPT GOVERNMENT TREASURY
MONEY MONEY MONEY MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND MARKET FUND MARKET FUND MARKET FUND
------------- ------------- ------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at amortized cost $3,011,857 $ 172,852 $184,315 $ 70,549 $ 61,094 $2,713,958
Investments in repurchase agreements - - - - - 1,597,000
Receivable for securities matured - - - - - -
Interest receivable 2,241 153 1,498 801 22 22,431
Other 46 14 11 3 8 66
------------- ------------- ------------- ------------- ------------- ------------
Total Assets 3,014,144 173,019 185,824 71,353 61,124 4,333,455
------------- ------------- ------------- ------------- ------------- ------------
LIABILITIES:
Payable for securities purchased - - - 2,603 - -
Dividends payable 15,005 899 541 193 283 18,771
Payable to custodian - - - 5 - -
Payable to affiliates 1,062 157 126 57 76 3,250
Payable for 12b-1 fees - - - - - 287
Accrued expenses and other liabilities 57 86 26 13 304 206
------------- ------------- ------------- ------------- ------------- ------------
Total Liabilities 16,124 1,142 693 2,871 663 22,514
------------- ------------- ------------- ------------- ------------- ------------
NET ASSETS $2,998,020 $ 171,877 $ 185,131 $ 68,482 $ 60,461 $4,310,941
============= ============= ============= ============= ============= ------------
SERIES A:
Net assets - $ 171,877 $ 185,131 $ 68,482 $ 60,461 $2,284,168
Shares authorized - 5,000,000 5,000,000 unlimited<F1> 5,000,000 unlimited<F1>
Shares issued and outstanding - 171,877 185,131 68,482 60,461 2,284,168
NET ASSET VALUE,
REDEMPTION PRICE AND
OFFERING PRICE PER SHARE $ - $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============= ============= ============= ============= ============= ============
SERIES INSTITUTIONAL:
Net assets $2,998,000 - - - - $2,026,773
Shares authorized 5,000,000 - - - - unlimited<F1>
Shares issued and outstanding 2,998,000 - - - - 2,026,773
NET ASSET VALUE,
REDEMPTION PRICE AND
OFFERING PRICE PER SHARE $ 1.00 $ - $ - $ - $ - $ 1.00
============= ============= ============= ============= ============= =============
<F1> No Par Value.
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS)
YEAR ENDED OCTOBER 31, 2000
<TABLE>
<CAPTION>
OHIO U.S. U.S.
INSTITUTIONAL TAX-EXEMPT TAX-EXEMPT GOVERNMENT TREASURY
MONEY MONEY MONEY MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND MARKET FUND MARKET FUND MARKET FUND
------------- ------------- ------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $150,524 $12,247 $6,794 $2,418 $5,451 $195,844
------------- ------------- ------------- ------------- ------------- -----------
EXPENSES:
Investment advisory fees 11,567 986 843 333 468 16,407
Administration fees 2,544 210 179 67 100 3,610
Service organization fees 4 106 - 151 1 8,204
12b-1 fees - Series A - - - - - 2,111
Custody fees 299 37 30 15 33 820
Transfer agent fees and expenses 176 284 37 15 37 681
Fund accounting fees 109 49 41 37 44 221
Professional fees 42 43 43 16 43 16
Reports to shareholders 13 140 11 - 22 331
Federal and state registration fees 50 33 20 16 16 428
Directors' fees and expenses 9 8 8 6 8 6
Other 37 9 3 - 7 41
------------- ------------- ------------- ------------- ------------- ------------
Total expenses before waiver 14,850 1,905 1,215 656 779 32,876
Less: Waiver of fees (5,523) (426) - (189) (107) (3,277)
------------- ------------- ------------- ------------- ------------- ------------
Net Expenses 9,327 1,479 1,215 467 672 29,599
------------- ------------- ------------- ------------- ------------- ------------
NET INVESTMENT INCOME $141,197 $10,768 $5,579 $1,951 $4,779 $166,245
============= ============= ============= ============= ============= ============
<F1> For the period December 1, 1999, through October 31, 2000.
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
This page left intentionally blank.
<PAGE>
(LOGO) FIRSTAR FUNDS
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
INSTITUTIONAL TAX-EXEMPT
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
---------------------------- ---------------------------- ----------------------------
Year Year Year Year Year Year
ended ended ended ended ended ended
Oct. 31, 2000 Oct. 31, 1999 Oct. 31, 2000 Oct. 31, 1999 Oct. 31, 2000<F1> Oct. 31, 1999
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $141,197 $104,359 $10,768 $12,640 $5,579 $3,476
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations 141,197 104,359 10,768 12,640 5,579 3,476
------------ ------------ ------------ ------------ ------------ ------------
CAPITAL SHARE
TRANSACTIONS:
Shares sold 5,645,519 7,441,516 1,509,160 1,076,363 279,958 257,973
Shares issued to
owners in reinvestment
of dividends 6,397 4,367 9,929 12,321 1,307 1,319
Shares redeemed (5,010,147) (6,713,602) (1,630,693) (1,094,291) (249,323) (228,554)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) 641,769 732,281 (111,604) (5,607) 31,942 30,738
------------ ------------ ------------ ------------ ------------ ------------
DIVIDENDS PAID FROM:
Net investment income:
Series A - - (10,768) (12,640) (5,579) (3,476)
Series Institutional (141,197) (104,359) - - - -
------------ ------------ ------------ ------------ ------------ ------------
$(141,197) $(104,359) $(10,768) $(12,640) $(5,579) $(3,476)
============ ============ ============ ============ ============ ============
TOTAL INCREASE (DECREASE)
IN NET ASSETS 641,769 732,281 (111,604) (5,607) 31,942 30,738
NET ASSETS:
Beginning of year 2,356,251 1,623,970 283,481 289,088 153,189 122,451
------------ ------------ ------------ ------------ ------------ ------------
End of year $2,998,020 $2,356,251 $171,877 $283,481 $185,131 $153,189
============ ============ ============ ============ ============ ============
<F1> For the period December 1, 1999 through October 31, 2000.
</TABLE>
<TABLE>
<CAPTION>
OHIO TAX-EXEMPT U.S. GOVERNMENT U.S. TREASURY
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
---------------------------- ---------------------------- ---------------------------
Eleven months Year Year Year Eleven months Year
ended Oct. 31, ended ended ended ended Oct. 31, ended
2000<F1> Oct. 31, 1999 Oct. 31, 2000 Oct. 31, 1999 2000<F1> Nov. 30, 1999
-------------- -------------- -------------- -------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Net investment income $1,951 $1,472 $4,779 $10,770 $166,245 $80,549
------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations 1,951 1,472 4,779 10,770 166,245 80,549
------------ ------------ ------------ ------------
CAPITAL SHARE
TRANSACTIONS:
Shares sold 107,525 141,618 332,922 891,590 10,326,219 8,570,767
Shares issued to
owners in reinvestment
of dividends 9 9 1,074 1,870 53,582 7,206
Shares redeemed (103,527) (134,766) (482,550) (917,621) (8,884,747) (7,427,660)
------------ ------------ ------------ ------------
Net increase (decrease) 4,007 6,861 (148,554) (24,161) 1,495,054 1,150,314
------------ ------------ ------------ ------------
DIVIDENDS PAID FROM:
Net investment income:
Series A (1,951) (1,472) (4,779) (10,770) (71,037) (24,520)
Series Institutional - - (95,208) (56,029)
------------ ------------ ------------ ------------
(1,951) (1,472) (4,779) (10,770) (166,245) (80,549)
============ ============ ============ ============
TOTAL INCREASE (DECREASE)
IN NET ASSETS 4,007 6,861 (148,554) (24,161) (1,495,054) (1,150,314)
NET ASSETS:
Beginning of year 64,475 57,614 209,015 233,176 2,815,887 1,665,573
------------ ------------ ------------ ------------
End of year $68,482 $64,475 $60,461 $209,015 $4,310,941 $2,815,887
============ ============ ============ ============
</TABLE>
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
RETAIL A SHARES
PER SHARE DATA
<TABLE>
<CAPTION>
Supplemental Data and Ratios
-------------------------------------
Ratio of Net
Net Asset Dividends from Net Net Assets, Ratio of Investment
Value, Net Net Asset Value, End of Net Expenses Income
Beginning Investment Investment End of Period to Average to Average Total
of Period Income Income Period (000s) Net Assets Net Assets Return
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MONEY MARKET FUND
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 $1.00 $0.05 $(0.05) $1.00 $224,036 0.60%<F1> 4.94% 5.06%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 1.00 0.05 (0.05) 1.00 261,017 0.60%<F1> 4.98% 5.12%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 1.00 0.05 (0.05) 1.00 289,088 0.60%<F1> 5.05% 5.16%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 1.00 0.04 (0.04) 1.00 283,481 0.72%<F1> 4.44% 4.52%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 1.00 0.06 (0.06) 1.00 171,877 0.75%<F1> 5.48% 5.65%
-----------------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT MONEY MARKET FUND
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 1.00 0.03 (0.03) 1.00 79,328 0.60%<F2> 3.09% 3.13%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 1.00 0.03 (0.03) 1.00 108,639 0.60%<F2> 3.06% 3.12%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 1.00 0.03 (0.03) 1.00 122,451 0.60%<F2> 3.02% 3.04%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 1.00 0.03 (0.03) 1.00 153,189 0.71%<F2> 2.51% 2.53%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 1.00 0.03 (0.03) 1.00 185,131 0.72% 3.32% 3.35%
-----------------------------------------------------------------------------------------------------------------------------------
OHIO TAX-EXEMPT MONEY MARKET FUND
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998<F7> 1.00 0.03 (0.03) 1.00 57,614 0.69%<F3><F9> 2.81%<F9> 2.85%<F8>
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 1.00 0.03 (0.03) 1.00 64,475 0.58%<F3> 2.64% 2.67%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000<F10> 1.00 0.03 (0.03) 1.00 68,482 0.77%<F3><F9> 3.22%<F9> 3.29%<F8>
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 1.00 0.05 (0.05) 1.00 198,334 0.60%<F3> 4.84% 4.96%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 1.00 0.05 (0.05) 1.00 198,592 0.60%<F3> 4.83% 4.99%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 1.00 0.05 (0.05) 1.00 233,176 0.60%<F3> 4.90% 4.97%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 1.00 0.04 (0.04) 1.00 209,015 0.68%<F3> 4.30% 4.37%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 1.00 0.05 (0.05) 1.00 60,461 0.72%<F3> 5.12% 5.46%
-----------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1996 1.00 0.05 (0.05) 1.00 829,259 0.70%<F4> 4.69% 4.80%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1997 1.00 0.05 (0.05) 1.00 469,400 0.73%<F4> 4.73% 4.85%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 1.00 0.05 (0.05) 1.00 542,430 0.88%<F4> 4.58% 4.69%
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 1.00 0.04 (0.04) 1.00 1,049,641 0.92%<F4> 3.98% 4.02%
-----------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 2000<F6> 1.00 0.05 (0.05) 1.00 2,284,168 0.99% 4.98%<F7> 5.04%<F8>
<F4><F7>
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Without fees waived, ratios of net expenses to average net assets for the
fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would have been
0.97%, 0.85%, 0.86%, 0.84%, 0.81%, respectively.
<F2> Without fees waived, ratios of net expenses to average net assets for the
fiscal years ended October 31, 1999, 1998, 1997, 1996 would have been
0.73%, 0.75%, 0.75%, 0.78%, respectively.
<F3> Without fees waived, ratios of net expenses to average net assets for the
fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would have been
0.83%, 0.69%, 0.71%, 0.70%, 0.71%, respectively.
<F4> Without fees waived, ratios of net expenses to average net assets for the
periods ended October 31, 2000 and November 30, 1999, 1998, 1997, 1996
would have been 1.14%, 1.08%, 1.08%, 0.93%, 0.90%, respectively.
<F5> Without fees waived, ratios of net expenses to average net assets for the
period ended october 31,2000 and the fiscal years ended November 30, 1999
1998, 1997, 1996 would have been 1.09%, 1.08% 1.08%, 0.93%, 0.90%
respectively.
<F6> For the Tax-Exempt Money Market Fund, substantially all investment income
is exempt from federal income tax.
<F7> Reflects operations for the period from December 2, 1997 (date of initial
public investment, to November 30, 1998.
<F8> Not annualized.
<F9> Annualized.
<F10> Effective in 2000, the Fund's fiscal year end was changed to October 31
from November 30.
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
FINANCIAL HIGHLIGHTS
Institutional
Per Share Data
<TABLE>
<CAPTION>
Supplemental Data and Ratios
-------------------------------------
Ratio of Net
Net Asset Dividends from Net Net Assets, Ratio of Investment
Value, Net Net Asset Value, End of Net Expenses Income
Beginning Investment Investment End of Period to Average to Average Total
of Period Income Income Period (000s) Net Assets Net Assets Return
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INSTITUTIONAL MONEY MARKET FUND
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1996 $1.00 $0.05 $(0.05) $1.00 $ 750,051 0.35%<F1> 5.19% 5.32%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1997 1.00 0.05 (0.05) 1.00 1,201,341 0.35%<F1> 5.23% 5.38%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1998 1.00 0.05 (0.05) 1.00 1,623,970 0.35%<F1> 5.30% 5.41%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 1999 1.00 0.05 (0.05) 1.00 2,356,251 0.38%<F1> 4.76% 4.85%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended October 31, 2000 1.00 0.06 (0.06) 1.00 2,998,020 0.39%<F1> 5.92% 6.05%
------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
------------------------------------------------------------------------------------------------------------------------------------
Period Ended November 30, 1997<F6> 1.00 0.03 (0.03) 1.00 659,296 0.72% 4.87%4 3.37%<F5>
<F2><F4>
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1998 1.00 0.05 (0.05) 1.00 1,123,144 0.73%<F2> 4.73% 4.84%
------------------------------------------------------------------------------------------------------------------------------------
Year Ended November 30, 1999 1.00 0.04 (0.04) 1.00 1,766,246 0.77%<F2> 4.13% 4.18%
------------------------------------------------------------------------------------------------------------------------------------
Period Ended October 31, 20003 1.00 0.05 (0.05) 1.00 2,026,773 0.84% 5.13%<F4> 5.20%<F5>
<F2><F4>
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Without fees waived, ratios of net expenses to average net assets for the
fiscal years ended October 31, 2000, 1999, 1998, 1997, 1996 would have been
0.62%, 0.62%, 0.64%, 0.66%, 0.64%, respectively.
<F2> Without fees waived, ratios of net expenses to average net assets for the
periods ended October 31, 2000 and November 30, 1999, 1998, 1997 would have
been 0.94%, 0.93%, 0.93%, 0.92%, respectively.
<F3> Effective in 2000, the Fund's fiscal year end was changed to October 31
from November 30.
<F4> Annualized.
<F5> Not annualized.
<F6> Reflects operations for the period from March 25, 1997 (date of initial
public investment) to November 30, 1997.
<PAGE>
(LOGO) FIRSTAR FUNDS
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Amortized Cost
(in thousands) (in thousands)
--------------- --------------
COMMERCIAL PAPER 90.5%
ASSET BACKED 23.0%
Ciesco L.P.:
$50,000 6.49%, 11/06/00 $ 49,955
32,518 6.55%, 1/12/01 32,092
50,000 6.50%, 1/23/01 49,251
Corporate Asset Funding Co., Inc.:
50,000 6.48%, 11/03/00 49,982
35,000 6.48%, 11/29/00 34,824
50,000 6.47%, 12/06/00 49,685
CXC, Inc.:
29,900 6.51%, 11/03/00 29,889
50,000 6.55%, 1/05/01 49,409
60,000 6.53%, 1/16/01 59,173
Edison Asset Securitization, L.L.C.,
50,000 6.53%, 11/09/00 49,927
FCAR Owners Trust:
50,000 6.48%, 11/21/00 49,820
25,000 6.46%, 12/27/00 24,749
New Center Asset Trust,
50,000 6.50%, 11/21/00 49,820
Sheffield Receivables Corp.:
50,000 6.51%, 11/02/00 49,991
62,150 6.51%, 11/27/00 61,858
------------
690,425
------------
AUTO & TRUCKS 7.1%
DaimlerChrysler Holding Company,
60,000 6.48%, 11/27/00 59,719
Ford Credit Europe PLC:
50,000 6.47%, 12/11/00 49,641
20,000 6.45%, 12/27/00 19,799
General Motors Acceptance Corporation:
50,000 6.52%, 1/11/01 49,357
35,000 6.52%, 1/31/01 34,423
------------
212,939
------------
BANKING - FOREIGN 7.6%
Deutsche Bank Financial, Inc.:
50,000 6.53%, 1/19/01 49,284
50,000 6.47%, 2/14/01 49,057
Dresdner US Finance, Inc.:
50,000 6.48%, 11/07/00 49,946
80,000 6.54%, 1/03/01 79,084
------------
227,371
------------
Principal Amount Amortized Cost
(in thousands) (in thousands)
--------------- --------------
COMMUNICATIONS & MEDIA 13.2%
AT&T Corporation:
$50,000 6.48%, 12/01/00 $ 49,730
48,915 6.48%, 12/12/00 48,554
50,000 6.54%, 1/04/01 49,419
Bellsouth Capital Funding:
5,000 6.45%, 12/12/00 4,963
40,000 6.48%, 11/01/00 40,000
British Telecommunications PLC,
50,000 6.51%, 12/07/00 49,675
Motorola, Inc.:
56,635 6.47%, 12/19/00 56,146
50,000 6.43%, 3/15/01 48,803
SBC Communications, Inc.,
50,000 6.47%, 11/20/00 49,829
------------
397,119
------------
FINANCE - MISCELLANEOUS 15.1%
ABB Treasury Center, Inc.,
50,000 6.47%, 12/20/00 49,560
American Express Credit Company:
50,000 6.46%, 12/11/00 49,641
50,000 6.46%, 12/19/00 49,569
CIT Group Holding, Inc.:
50,000 6.52%, 1/08/01 49,384
50,000 6.53%, 1/25/01 49,229
General Electric Capital Corporation:
35,000 6.52%, 1/17/01 34,512
50,000 6.47%, 2/12/01 49,074
Household Finance Corporation,
50,000 6.54%, 1/18/01 49,292
National Rural Utilities CFC:
31,140 6.49%, 11/06/00 31,112
40,000 6.71%, 7/20/01 40,000
------------
451,373
------------
FINANCE - SERVICES 10.3%
Associates Corporation:
50,000 6.63%, 11/01/00 50,000
50,000 6.51%, 1/17/01 49,304
Goldman Sachs Group, L.P.,
50,000 6.52%, 1/02/01 49,439
Hartford Financial Services, Inc.,
31,159 6.52%, 11/10/00 31,108
Merrill Lynch & Company, Inc.:
50,000 6.51%, 1/10/01 49,367
50,000 6.55%, 1/11/01 49,354
30,000 6.51%, 1/12/01 29,609
------------
308,181
------------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
INSTITUTIONAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Amortized Cost
(in thousands) (in thousands)
--------------- --------------
INSURANCE 3.1%
Metlife Funding Corporation,
$42,721 6.48%, 11/15/00 $ 42,613
Prudential Funding Corporation,
50,000 6.55%, 1/02/01 49,436
------------
92,049
------------
METALS & MINING 1.7%
Alcoa, Inc.,
50,000 6.60%, 11/01/00 50,000
------------
MISCELLANEOUS 2.0%
International Lease Financial Corporation,
60,000 6.48%, 11/03/00 59,978
------------
PRINTING AND PUBLISHING 5.0%
Gannett, Inc.:
50,000 6.50%, 11/08/00 49,937
40,700 6.50%, 11/14/00 40,605
35,000 6.48%, 11/17/00 34,899
McGraw-Hill Cos., Inc.,
23,000 6.47%, 11/28/00 22,888
------------
148,329
------------
OIL & GAS - SERVICES 0.8%
Pacific Gas & Electric Co.,
25,500 6.51%, 1/30/01 25,085
------------
SOVEREIGN 1.6%
Quebec (Province of) Canada,
50,000 6.51%, 12/14/00 49,611
------------
Total Commercial Paper 2,712,460
------------
FUNDING AGREEMENTS 2.8%
Travelers Insurance Company:
40,000 6.86%, 2/19/01<F1> 40,000
43,000 6.87%, 6/29/01<F1> 43,000
------------
Total Funding Agreements 83,000
------------
VARIABLE RATE DEMAND NOTES 0.9%
28,000 Alliant Energy Corporation 28,000
------------
Total Variable Rate Demand Notes 28,000
------------
Number of Shares Amortized Cost
(in thousands) (in thousands)
--------------- --------------
INVESTMENT COMPANIES 6.3%
97,031 Financial Square Premium Money Market Fund $ 97,031
91,366 Short-Term Investments Co.
Liquid Assets Portfolio 91,366
------------
Total Investment Companies 188,397
------------
Total Investments 100.5% 3,011,857
------------
Liabilities, less Other Assets (0.5)% (13,837)
------------
NET ASSETS 100.0% $2,998,020
============
<F1> Illiquid security
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Amortized Cost
(in thousands) (in thousands)
--------------- --------------
COMMERCIAL PAPER 86.1%
ASSET BACKED SECURITY 12.1%
CXC, Inc.,
$6,000 6.48%, 11/27/00 $ 5,972
Edison Asset Securitization, L.L.C.:
5,000 6.50%, 11/13/00 4,989
5,000 6.52%, 1/08/01 4,939
New Center Asset Trust,
5,000 6.50%, 11/21/00 4,982
------------
20,882
------------
AUTOS & TRUCKS 5.8%
Ford Motor Credit Company,
5,000 6.49%, 11/17/00 4,986
General Motors Acceptance Corporation,
5,000 6.47%, 11/21/00 4,982
------------
9,968
------------
BANKING - FOREIGN 5.2%
Deutsche Bank Finance, Inc.,
5,000 6.46%, 12/28/00 4,949
Dresdner US Finance, Inc.,
4,000 6.48%, 11/07/00 3,996
------------
8,945
------------
COMMUNICATIONS 15.6%
AT&T Corp.:
4,000 6.48%, 12/13/00 3,970
5,000 6.54%, 1/04/01 4,942
British Telecommunications PLC:
4,000 6.53%, 11/09/00 3,994
5,000 6.51%, 12/07/00 4,968
Motorola, Inc.:
5,000 6.49%, 12/15/00 4,960
4,000 6.52%, 11/08/00 3,995
------------
26,829
------------
FINANCE - MISCELLANEOUS 10.1%
ABB Treasury Center, Inc.,
5,000 6.49%, 11/02/00 4,999
National Rural Utilities CFC,
3,500 6.49%, 11/15/00 3,491
Sheffield Receivables Corp.:
5,000 6.51%, 11/03/00 4,998
4,000 6.55%, 1/23/01 3,940
------------
17,428
------------
Principal Amount Amortized Cost
(in thousands) (in thousands)
--------------- --------------
FINANCE - SERVICES 8.4%
American Express,
$4,500 6.46%, 12/19/00 $ 4,461
Associates Corporation,
5,000 6.50%, 1/19/01 4,929
Goldman Sachs Group, L.P.,
5,000 6.50%, 11/16/00 4,986
------------
14,376
------------
INSURANCE 5.2%
American Family Financial Services, Inc.,
5,000 6.52%, 1/16/01 4,931
Prudential Funding Corporation:
4,000 6.51%, 11/01/00 4,000
------------
8,931
------------
MISCELLANEOUS 7.5%
Bestfoods, Inc.,
4,000 6.49%, 11/09/00 3,994
Colgate-Palmolive Co.,
5,000 6.47%, 11/17/00 4,986
International Lease Financial Corporation,
4,000 6.50%, 1/10/01 3,949
------------
12,929
------------
OIL & GAS - SERVICES 5.2%
Pacific Gas & Electric Co.:
5,000 6.51%, 1/12/01 4,935
4,000 6.51%, 1/17/01 3,944
------------
8,879
------------
PRINTING & PUBLISHING 8.1%
Gannett, Inc.,
5,000 6.50%, 11/08/00 4,994
Reed Elsevier, Inc.:
4,000 6.49%, 11/20/00 3,986
5,000 6.48%, 12/04/00 4,970
------------
13,950
------------
SOVEREIGN 2.9%
Quebec (Province of) Canada,
5,000 6.51%, 12/14/00 4,961
------------
Total Commercial Paper 148,078
------------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1999
Principal Amount Amortized Cost
(in thousands) (in thousands)
--------------- --------------
FUNDING AGREEMENTS 4.1%
Travelers Insurance Corporation,
$7,000 6.87%, 6/29/01<F1> $ 7,000
------------
Total Funding Agreements 7,000
------------
VARIABLE RATE DEMAND NOTES 4.1%
7,000 Alliant Energy Corporation 7,000
------------
Total Variable Rate Demand Notes 7,000
------------
Number
of Shares
(in thousands)
--------------
INVESTMENT COMPANIES 6.3%
2,827 Financial Square Prime Obligation Fund 2,827
7,947 Short-Term Investments Co.
Liquid Assets Portfolio 7,947
------------
Total Investment Companies 10,774
------------
Total Investments 100.6% 172,852
------------
Liabilities, less Other Assets (0.6)% (975)
------------
NET ASSETS 100.0% $171,877
============
<F1> Illiquid security
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
TAX-EXEMPT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Amortized Cost
(in thousands) (in thousands)
--------------- --------------
ALASKA 1.3%
Valdez, Alaska, Marine Term Revenue,
$2,500 4.39%, 5/01/31<F1><F2> $ 2,500
------------
ARIZONA 2.8%
Central Arizona, Water Conservation District,
5,175 7.13%, 11/01/11, Prerefunded 11/01/00 5,279
------------
COLORADO 0.5%
Jefferson County, Colorado, General Obligation
1,000 School District, 5.00%, 6/27/01<F1><F2> 1,004
------------
FLORIDA 4.6%
Florida Housing Finance Agency -
3,000 Carlton Multifamily, 4.19%, 12/01/08<F1><F2> 3,000
Putnam County, Florida Development Authority -
5,485 Seminole Electric, 4.14%, 3/15/14<F1><F2> 5,485
------------
8,485
------------
GEORGIA 1.4%
Richmond County, Georgia
2,575 4.50%, 3/01/01 2,578
------------
ILLINOIS 28.9%
Berwyn, Illinois, Revenue,
MacNeal Memorial Hospital
Association, 7.00%,
2,000 6/01/15, Prerefunded, 6/01/01 2,069
Cook County, Illinois,
3,700 4.39%, 5/01/20<F1><F2> 3,700
Hoffman Estates, Illinois, Economic Development,
3,910 7.63%, 11/15/09, Prerefunded 11/15/00 3,993
Illinois Development Finance Authority,
3,200 Lake Forest Academy, 4.39%, 12/01/24<F1><F2> 3,200
Illinois Development Finance Authority,
9,000 Presbyterian Home Lake-A,
4.39%, 9/01/31<F1><F2> 9,000
Illinois Development Finance Authority,
4,800 Rest Haven, 4.39%, 1/01/27<F1><F2> 4,800
Illinois Development Finance Authority,
3,215 St. Paul's House, 4.39%, 2/01/25<F1><F2> 3,215
Illinois Development Finance Authority,
6,000 St. Ignatius College Prep,
4.39%, 6/01/24<F1><F2> 6,000
Illinois Education Facilities Authority,
2,000 Chicago Zoological Society,
4.39%, 12/15/25<F1><F2> 2,000
Illinois Health Facilities Authority,
3,500 Recreational Facilities,
4.29%, 12/01/25<F1><F2> 3,500
Illinois Health Facilities Authority,
Southern Illinois Healthcare Enterprises,
2,500 4.49%, 3/01/21<F1><F2> 2,500
Oakbrook Terrace, Illinois,
Industrial Development,
4,100 4.34%, 12/01/25<F1><F2> 4,100
Principal Amount Amortized Cost
(in thousands) (in thousands)
--------------- --------------
ILLINOIS 28.9% (CONT'D.)
Orland Hills, Illinois, Multifamily,
$2,470 4.39%, 12/01/04<F1><F2> $ 2,470
South Barrington, Illinois, Cook County,
3,000 General Obligation, 4.34%, 12/01/27<F1><F2> 3,000
------------
53,547
------------
INDIANA 11.0%
Indiana Health Facilities Finance Authority,
Henry County Memorial Hospital,
5,700 4.34%, 4/01/13<F1><F2> 5,700
Indiana Health Facilities Finance Authority,
2,100 4.34%, 1/12/20<F1><F2> 2,100
Indiana Hospital Equipment Finance Authority,
6,100 Nursing Home Improvements,
4.34%, 12/01/15<F1><F2> 6,100
Indiana Tate Development Finance Authority,
3,895 Greater Indianapolis Association,
4.44%, 10/01/17<F1><F2> 3,895
Indianapolis, Indiana, Economic
2,600 Development Revenue, 4.34%, 4/01/05<F1><F2> 2,600
------------
20,395
------------
KENTUCKY 5.1%
Mason County, Kentucky, Pollution Control,
6,400 4.44%, 10/15/14<F1><F2> 6,400
Mason County, Kentucky, Pollution Control,
1,900 Series 1984B, 4.44%, 10/15/14<F1><F2> 1,900
Nashville & Davidson County, Tennessee,
1,225 General Obligation, 5.50%, 5/15/01<F1><F2> 1,230
------------
9,530
------------
MASSACHUSETTS 3.9%
Massachusetts State,
2,000 7.10%, 3/01/01<F1><F2> 2,018
Massachusetts State Health &
Educational Facilities,
Fallon Healthcare, 6.75%, 6/01/20,
5,000 Prerefunded 6/01/01 5,166
------------
7,184
------------
MINNESOTA 2.6%
Minnesota State Higher Educational Authority,
4,745 Bethal College, 4.39%, 4/01/28<F1><F2> 4,745
------------
MISSOURI 0.7%
St. Louis, Missouri, Redevelopment Authority,
1,255 7.75%, 7/01/21, Prerefunded, 12/11/00 1,285
------------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
TAX-EXEMPT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Amortized Cost
(in thousands) (in thousands)
--------------- --------------
NEBRASKA 1.6%
Omaha,Nebraska Auditorium
Facilities Corporation,
$ 3,000 Revenue Bonds, 4.45%, 8/15/01<F1><F2> $ 3,002
------------
NEVADA 0.8%
Nevada State,
1,500 6.00%, 5/01/09, Prerefunded, 5/01/01 1,527
------------
NEW YORK 1.7%
Cattaraugus County, New York,
St. Bonaventure University,
3,000 8.30%, 12/01/10, Prerefunded 12/01/00 3,070
------------
NORTH CAROLINA 2.5%
North Carolina Educational Facilities,
4,550 Var-Bowman Grey School,
4.38%, 9/01/20<F1><F2> 4,550
------------
OHIO 4.8%
Columbus, Ohio,
1,500 General Obligation, 4.19%, 12/01/17<F1><F2> 1,500
Cuyahoga County, Ohio, Cleveland Clinic
4,400 Hospital Revenue, 4.39%, 1/01/24<F1><F2> 4,400
Ohio State University General Receipts,
3,000 Revenue Bonds, 4.34%, 12/01/14<F1><F2> 3,000
------------
8,900
------------
PENNSYLVANIA 0.6%
Delaware County, Pennsylvania,
Haverford College, 7.38%, 11/15/20,
1,000 Prerefunded 11/15/00 1,021
------------
RHODE ISLAND 1.1%
Convention Center Authority, Rhode Island,
2,000 6.70%, 5/15/20<F1><F2> 2,060
------------
TEXAS 6.2%
Bexar County, Texas, Multifamily,
1,450 4.49%, 6/01/05<F1><F2> 1,450
Carrollton, Texas, School District,
1,000 6.60%, 2/15/02, Prerefunded, 2/15/01 1,006
Harris County, Texas, Health Facilities,
5,000 Hospital Revenue, 4.60%, 12/01/25<F1><F2> 5,000
North Central Texas Health Facilities Development,
2,000 6.85%, 5/15/16<F1><F2> 2,062
Texas Higher Education Authority,
1,880 4.39%, 12/01/25<F1><F2> 1,880
------------
11,398
------------
Principal Amount Amortized Cost
(in thousands) (in thousands)
--------------- --------------
VIRGINIA 0.7%
Martinsville, Virginia, Industrial Development
$1,250 Authority, 7.00%, 1/01/06,
Prerefunded, 1/01/01 $ 1,255
WASHINGTON 4.7%
Chelan County, Washington, Public Utility
4,800 Revenue, 4.39%, 6/01/15<F1><F2> 4,800
Washington State Housing Finance - Community
3,830 Multifamily Mortgage, 4.39%, 10/01/20<F1><F2> 3,830
------------
8,630
------------
WISCONSIN 6.0%
Northwestern Mutual Life, Tax-Exempt
91 Mortgage Certificates, 5.00%, 2/15/09<F1><F2> 91
Wisconsin State Health & Educational Facilities -
5,000 Marshfield Clinic, 4.34%, 6/01/10<F1><F2> 5,000
Wisconsin State Health & Educational Facilities -
1,900 Blood Center, 4.41%, 6/01/19<F1><F2> 1,900
Wisconsin State Health & Educational Facilities -
2,005 Sinai Samaritan, 4.44%, 9/01/19<F1><F2> 2,005
Wisconsin State Health & Educational Facilities -
St. Luke's Medical Center, 7.10%, 8/15/11,
2,000 Prerefunded, 8/15/01 2,080
------------
11,076
------------
Total Municipal Bonds $173,021
------------
Number
of Shares
(in thousands)
--------------
INVESTMENT COMPANIES 6.1%
4,294 Financial Square Tax-Exempt Money Market Fund 4,294
7,000 Tax Free Cash Reserves 7,000
------------
Total Investment Companies 11,294
------------
Total Investments 99.6% 184,315
------------
Other Assets, less Liabilities 0.4% 816
------------
NET ASSETS 100.0% $185,131
=============
<F1> Variable rate security
<F2> Stated maturity with option to put
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
OHIO TAX-EXEMPT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Amortized Cost
(in thousands) (in thousands)
---------------- --------------
OHIO SHORT-TERM INVESTMENTS 103.0%
OHIO SHORT-TERM MUNICIPALS 102.3%
Centerville, Ohio Bethany Lutheran Village,
$ 200 4.39%, 5/01/08<F1><F2> $ 200
Centerville, Ohio Bethany Lutheran Village,
460 4.39%, 11/01/13<F1><F2> 460
Cincinnati, Ohio General Obligation,
2,000 4.10%, 12/01/00 2,000
Cleveland, Ohio Income Tax Revenue,
3,001 4.29%, 5/15/24<F1><F2> 3,001
Columbus, Ohio General Obligation Series 1,
1,500 4.19%, 12/01/17<F1><F2> 1,500
Columbus, Ohio General Obligation Series 2,
1,000 5.00%, 6/15/01 1,004
Columbus, Ohio General Obligation Series 2,
1,000 5.50%, 6/15/01 1,008
Columbus, Ohio City School District Series A
700 General Obligation, 7.00%, 12/01/11,
Prerefunded, 12/01/00 716
Columbus, Ohio Sewer System Revenue,
1,000 4.29%, 6/01/11<F1><F2> 1,000
Cuyahoga County, Ohio Hospital Revenue -
3,000 Cleveland Clinic, 4.29%, 1/01/26<F1><F2> 3,000
Cuyahoga County, Ohio Hospital Revenue -
University Hospital Health Systems, Inc.,
3,000 4.39%, 1/15/29<F1><F2> 3,000
Fairfield County, Ohio Hospital Improvement
Revenue - Lancaster-Fairfield Community Hospital,
2,000 7.10%, 6/15/21, Prerefunded, 6/15/01 2,073
Franklin County, Ohio Hospital Revenue -
3,040 U.S. Health Corp. of Columbus, 4.34%, 12/01/11<F1><F2> 3,040
Hamilton County, Ohio Hospital Facilities
Series A Revenue - Health Alliance of
3,000 Greater Cincinnati, 4.34%, 1/01/18<F1><F2> 3,000
Hamilton County, Ohio Sewer System
2,000 Series A Revenue, 6.70%, 12/01/13,
Prerefunded, 6/01/01 2,066
Hamilton, Ohio Multifamily Series A Revenue -
1,500 Knollwood Village, 4.39%, 1/01/30<F1><F2> 1,500
Hudson, Ohio Local School District Series A
3,000 General Obligation, 7.10%, 12/15/13,
Prerefunded, 12/15/00 3,069
Indian Hill, Ohio Economic Development Revenue -
2,500 Cincinnati Country Day School, 4.34%, 5/01/19<F1><F2> 2,500
Marion County, Ohio Hospital Authority Series 1991 -
Marion County, Ohio Pooled Hospital Program,
515 4.39%, 11/01/21<F1><F2> 515
Middleburg Heights, Ohio Hospital
2,700 Improvement Revenue, 4.39%, 8/15/22<F1><F2> 2,700
Northeast Ohio Regional Sewer District
1,500 Waste Revenue, 6.30%, 11/15/01 1,530
Principal Amount Amortized Cost
(in thousands) (in thousands)
---------------- --------------
OHIO SHORT-TERM MUNICIPALS 102.3% (CONT'D.)
Ohio State Air Quality Development Authority
Series A Revenue - Cincinnati Gas & Electric,
$3,400 4.59%, 12/01/15<F1><F2> $ 3,400
Ohio State Air Quality Development Authority
800 Revenue - Ohio Edison Company, 4.59%, 6/01/23<F1><F2> 800
Ohio State Higher Educational Facilities
800 Commission Revenue, 7.25%, 12/01/12,
Prerefunded, 12/01/00 818
Ohio State Highway Improvement Series D
2,400 General Obligation, 4.00%, 5/01/01 2,397
Ohio State Industrial Development - Cincinnati
450 Riverfront Coliseum, Inc., 4.39%, 6/01/02<F1><F2> 450
Ohio State Industrial Development - Cincinnati
485 Riverfront Coliseum, Inc., 4.39%, 6/01/03<F1><F2> 485
Ohio State Public Facilities Community Series IIA,
1,000 6.30%, 5/01/06, Prerefunded, 5/01/01 1,030
Ohio State Public Facilities Community Series IIB,
2,000 4.50%, 11/01/00 2,000
Ohio State Public Facilities Community Series IIB,
2,000 5.00%, 11/01/00 2,000
Ohio State University General Receipts Revenue,
3,000 4.24%, 12/01/07<F1><F2> 3,000
Ohio State University General Receipts Revenue,
3,000 4.24%, 12/01/17<F1><F2> 3,000
Ohio State University General Receipts Revenue,
3,000 4.24%, 12/01/27<F1><F2> 3,000
Ohio State Water Development Authority Revenue,
800 8.00%, 12/01/18, Prerefunded, 12/01/01 801
Ohio State Water Development Authority
Series B Revenue - Cleveland Electric Illumination,
3,000 4.34%, 8/01/20<F1><F2> 3,000
University of Cincinnati, Ohio General Receipts
2,000 Series AJ Bond Anticipation Notes, 4.50%, 3/01/01 2,002
Warren County, Ohio Health Care Facilities Series B
3,000 Revenue - Otterbein Homes, 4.54%, 7/01/23<F1><F2> 3,000
---------
Total Ohio Short-Term Municipals 70,065
---------
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
OHIO TAX-EXEMPT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Number of Shares Amortized Cost
(in thousands) (in thousands)
---------------- --------------
INVESTMENT COMPANIES 0.7%
484 Touchstone Ohio Tax-Free Money Fund $ 484
---------
Total Investment Companies 484
---------
Total Investments 103.0% 70,549
---------
Liabilities, less Other Assets (3.0)% (2,067)
---------
TOTAL NET ASSETS 100.0% $68,482
=========
<F1> Variable rate security
<F2> Stated maturity with option to put
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
U.S. GOVERNMENT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Amortized Cost
(in thousands) (in thousands)
--------------- --------------
U.S. GOVERNMENT AGENCIES 93.8%
FEDERAL FARM CREDIT BANK 22.9%
Federal Farm Credit Bank Discount Notes:
$2,055 6.39%, 11/06/00 $ 2,053
4,250 6.35%, 11/14/00 4,240
4,600 6.32%, 12/04/00 4,574
3,000 6.34%, 12/12/00 2,978
------------
13,845
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION 27.4%
Federal Home Loan Mortgage Corporation
Discount Notes:
3,000 6.38%, 11/22/00 2,989
3,500 6.40%, 11/28/00 3,483
2,000 6.37%, 12/28/00 1,980
2,750 6.38%, 1/17/01 2,712
2,500 6.44%, 1/18/01 2,465
3,000 6.42%, 1/24/01 2,955
------------
16,584
------------
FEDERAL NATIONAL MORTGAGE ASSN. 27.8%
Federal National Mortgage Assn.
Discount Notes:
4,000 6.37%, 12/21/00 3,965
7,500 6.44%, 1/04/01 7,414
2,500 6.43%, 1/11/01 2,468
3,000 6.43%, 1/25/01 2,955
------------
16,802
------------
OTHER 15.7%
Tennessee Valley Authority Discount Notes:
3,000 6.38%, 11/02/00 2,999
2,000 6.36%, 11/13/00 1,996
4,500 6.35%, 11/27/00 4,479
------------
9,474
------------
Total U.S. Government Agencies 56,706
------------
Number of Shares Amortized Cost
(in thousands) (in thousands)
--------------- --------------
INVESTMENT COMPANIES 7.3%
1,694 Financial Square Government Obligation Fund $ 1,694
2,694 Short-Term Investments Co. Treasury Portfolio 2,694
------------
Total Investment Companies 4,388
------------
Total Investments 101.1% 61,094
------------
Liabilities, less Other Assets (1.1)% (633)
------------
NET ASSETS 100.0% $60,461
============
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
U.S. TREASURY MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000
Principal Amount Amortized Cost
(in thousands) (in thousands)
--------------- --------------
U.S. TREASURIES 53.1%
U.S. TREASURY BILLS 29.3%
$ 25,000 6.35%, 12/21/00 $ 24,780
250,000 6.20%, 12/28/00 247,546
10,000 6.13%, 1/04/01 9,891
100,000 6.17%, 1/25/01 98,543
250,000 6.17%, 2/01/01 246,058
100,000 6.11%, 2/08/01 98,320
100,000 6.08%, 2/22/01 98,093
150,000 5.99%, 3/08/01 146,830
150,000 6.02%, 3/22/01 146,465
150,000 5.96%, 4/05/01 146,154
------------
1,262,680
------------
U.S. TREASURY BONDS 4.6%
200,000 5.75%, 11/15/00 199,965
------------
U.S. TREASURY NOTES 19.2%
100,000 8.50%, 11/15/00 100,079
125,000 5.50%, 12/31/00 124,792
100,000 4.50%, 1/31/01 99,538
150,000 7.75%, 2/15/01 150,592
150,000 6.25%, 4/30/01 149,890
50,000 5.63%, 5/15/01 49,794
150,000 6.50%, 5/31/01 150,115
------------
824,800
------------
Total U.S. Treasuries 2,287,445
------------
REPURCHASE AGREEMENTS 37.0%
Lehman Brothers, Inc., 6.30%, dated 10/31/00,
due 11/01/00, repurchase price $30,005
30,000 (Collateralized by U.S.
Government Securities) 30,000
Merrill Lynch, Pierce, Fenner and Smith, Inc.,
6.50%, dated 10/31/00, due 11/01/00,
repurchase price $500,090
500,000 (Collateralized by U.S.
Government Securities) 500,000
Warburg Dillon Read, LLC, 6.57%, dated
10/31/00, due 11/01/00,
repurchase price $1,067,1958
1,067,000 (Collateralized by U.S.
Government Securities) 1,067,000
------------
Total Repurchase Agreements 1,597,000
------------
Number of Shares Amortized Cost
(in thousands) (in thousands)
--------------- --------------
INVESTMENT COMPANIES 9.9%
Financial Square
211,432 Treasury Obligation Portfolio $ 211,432
Short-Term Investments Co.
215,081 Treasury Portfolio 215,081
------------
Total Investment Companies 426,513
------------
Total Investments 100.0% 4,310,958
------------
Liabilities, less Other Assets 0.0% (17)
------------
TOTAL NET ASSETS 100.0% $4,310,941
============
See notes to the financial statements.
<PAGE>
(LOGO) FIRSTAR FUNDS
BALANCED INCOME FUND
BALANCED GROWTH FUND
GROWTH & INCOME FUND
EQUITY INDEX FUND
LARGE CAP CORE EQUITY FUND
MIDCAP INDEX FUND
MIDCAP CORE EQUITY FUND
MICROCAP FUND
INTERNATIONAL VALUE FUND
SHORT-TERM BOND FUND
INTERMEDIATE BOND FUND
TAX-EXEMPT INTERMEDIATE BOND FUND
BOND IMMDEX/TM FUND
MONEY MARKET FUND
INSTITUTIONAL MONEY MARKET FUND
TAX-EXEMPT MONEY MARKET FUND
U.S. GOVERNMENT MONEY MARKET FUND
NOTES TO THE FINANCIAL STATEMENTS
1. ORGANIZATION
Firstar Funds, Inc. (the "Company") was incorporated on
February 15, 1988, as a Wisconsin Corporation and is registered as
an open-end management investment company under the Investment Company Act of
1940, as amended. The Balanced Income, Balanced Growth, Growth & Income, Equity
Index, Large Cap Core Equity, MidCap Index, MidCap Core Equity, MicroCap,
International Value, Short-Term Bond, Intermediate Bond, Tax-Exempt Intermediate
Bond, Bond IMMDEX(TM), Money Market, Institutional Money Market, Tax-Exempt
Money Market and U.S. Government Money Market Funds (the "Funds"), are separate,
diversified investment portfolios of the Company. The Money Market Fund
commenced operations on March 16, 1988; the Tax-Exempt Money Market Fund
commenced operations on June 27, 1988; the U.S. Government Money Market Fund
commenced operations on August 1, 1988; the MidCap Core Equity Fund (formerly
known as the Special Growth Fund) commenced operations on December 28, 1989; the
Short-Term Bond Fund (formerly known as the Short-Term Bond Market Fund), Bond
IMMDEX(TM) Fund, Growth & Income Fund and Equity Index Fund commenced operations
on December 29, 1989; the Institutional Money Market Fund commenced operations
on April 26, 1991; the Balanced Growth Fund commenced operations on March 30,
1992; the Large Cap Core Equity Fund (formerly known as the Growth Fund)
commenced operations on December 29, 1992; the Intermediate Bond Fund (formerly
known as the Intermediate Bond Market Fund) commenced operations on January 5,
1993; the Tax-Exempt Intermediate Bond Fund commenced operations on February 8,
1993; the International Value Fund (formerly known as the International Equity
Fund) commenced operations on April 28, 1994; the MicroCap Fund commenced
operations on August 1, 1995; the Balanced Income Fund commenced operations on
December 1, 1997; and the MidCap Index Fund commenced operations on November 4,
1999. The objective of the Short-Term Bond Fund is to seek to provide an annual
rate of total return, before Fund expenses, comparable to the annual rate of
total return of the Lehman Brothers 1-3 year Government/ Credit Bond Index. The
objective of the Intermediate Bond Fund is to seek to provide an annual rate of
total return, before Fund expenses, comparable to the annual rate of total
return of the Lehman Brothers Intermediate Government/Credit Bond Index. The
objective of the Tax-Exempt Intermediate Bond Fund is to seek to provide current
income that is substantially exempt from federal income tax and emphasize total
return with relatively low volatility of principal. The objective of the Bond
IMMDEX(TM) Fund is to seek to provide an annual rate of total return, before
Fund expenses, comparable to the annual rate of total return of the Lehman
Brothers Government/Corporate Bond Index. The objective of the Balanced Income
Fund is to seek current income and the preservation of capital through
investment in a balanced portfolio of dividend paying equity and fixed-income
securities. The objective of the Balanced Growth Fund is to achieve a balance of
capital appreciation and current income with relatively low volatility of
capital. The objective of the Growth & Income Fund is to seek both reasonable
income and long-term capital appreciation. The objective of the Equity Index
Fund is to seek returns, before Fund expenses, comparable to the price and yield
performance of publicly traded common stocks in the aggregate, as represented by
the S&P 500 Stock Index. The objective of the Large Cap Core Equity Fund is
capital appreciation through investment in securities of medium- to large-sized
companies. The objective of the MidCap Index Fund is to seek returns, before
Fund expenses, comparable to the price and yield performance of publicly traded
common stocks in the aggregate, as represented by the S&P MidCap 400 Index. The
objective of the MidCap Core Equity Fund is capital appreciation through
investment in securities of medium-sized companies. The objective of the
MicroCap Fund is capital appreciation through investments in small companies.
The objective of the International Value Fund is to seek capital appreciation
through investment in foreign securities which the Sub-Advisor believes are
undervalued.
The costs, in thousands, incurred in connection with the organization,
initial registration and public offering of shares aggregating $56 and $28 for
the Balanced Income and MicroCap Funds, respectively, have been paid by the
respective Funds. These costs are being amortized over the period of benefit,
but not to exceed sixty months from each Fund's commencement of operations.
The Company has issued three classes of Fund shares in each of the non-money
market funds: Series A, Series B and Series Institutional. The Series A shares
are subject to a 0.25% service organization fee and an initial sales charge
imposed at the time of purchase, in accordance with the Funds' prospectus. The
maximum sales charge on Series A shares purchased in the Short-Term Bond,
Intermediate Bond, Tax-Exempt Intermediate Bond and Bond IMMDEX(TM) Fund,
<PAGE>
(LOGO) FIRSTAR FUNDS
is 4.00% of the offering price or 4.17% of the net asset value. The maximum
sales charge on Series A shares purchased in the Balanced Income, Balanced
Growth,Growth & Income, Equity Index, Large Cap Core Equity, MidCap Index,
MidCap Core Equity, MicroCap and International Value Funds is 5.50% of the
offering price or 5.82% of the net asset value. The Series B shares are subject
to a 0.25% service organization fee and a 0.75% distribution and service (12b-1)
fee. The B shares are also subject to a contingent deferred sales charge at the
time of redemption, in accordance with the Funds' prospectus. The maximum sales
charge is 5% for redemptions in the first year, 4% in the second year, 3% in the
third and fourth years, 2% in the fifth year, 1% in the sixth year and 0%
thereafter. After the sixth year, B shares convert to the expense structure of
the A shares. Each class of shares for each non-money market fund has identical
rights and privileges except with respect to service organization fees paid by
Series A and Series B shares, voting rights on matters affecting a single class
of shares and the exchange privileges of each class of shares. Subsequent to the
merger with Mercantile Mutual Funds, Inc. and Firstar Stellar Funds (see Note
12), the Company has issued a fourth class of shares in each of the non-money
market funds: Series Y. The Series Y shares are subject to a 0.25% service
organization fee.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
a) Investment Valuation - Securities which are traded on a recognized stock
exchange are valued at the last sale price on the securities exchange on which
such securities are primarily traded or at the last sale price on a national
securities exchange. Exchange-traded securities for which there were no
transactions are valued at the current bid prices, with the exception of the
International Value Fund, which is valued at the average of the current bid and
asked prices. Securities traded on only over-the-counter markets are valued on
the basis of closing over-the-counter bid prices. Investments in the money
market funds and instruments with a maturity of 60 days or less are valued on
the basis of amortized cost for financial reporting purposes and federal income
tax purposes, which approximates market value. Variable rate demand notes and
funding agreements are valued at cost which approximates market value. Open-end
investment companies are valued at net asset value which approximates market
value. Securities for which market quotations are not readily available and
other assets are valued at fair market value as determined by the investment
adviser under the supervision of the Board of Directors. At October 31, 2000,
the MicroCap Fund held seven such securities which represented 1.37% of
investments, at value. Portfolio securities which are primarily traded on
foreign securities exchanges are generally valued at the preceding closing
values of such securities on their respective exchanges, except when an
occurrence subsequent to the time a value was so established is likely to have
changed such value. In such an event, the fair value of those securities is
determined through the consideration of other factors by or under the direction
of the Board of Directors. Quotations of foreign securities in foreign currency
are converted to United States ("U.S.") dollar equivalents using the foreign
exchange quotation in effect at the time net asset value is computed. Foreign
securities held by the International Value Fund may trade in their local markets
on days the U.S. exchanges are closed, and the International Value Fund's net
asset value may, therefore, change on days when investors may not purchase or
redeem Fund shares.
b) Federal Income Taxes - It is each Fund's policy to meet the requirements of
the Internal Revenue Code applicable to regulated investment companies and each
Fund intends to distribute substantially all investment company net taxable
income and net capital gains to shareholders. Therefore, no federal income tax
provision is required.
c) Income and Expenses - The Funds are charged for those expenses that are
directly attributable to each portfolio, such as advisory, administration and
certain shareowner service fees. Expenses that are not directly attributable to
a portfolio are typically allocated among the Company's portfolios in proportion
to their respective net assets, number of shareholder accounts, or net sales,
where applicable. For Funds with more than one class of shares, net investment
income other than class specific expenses, and realized and unrealized gains and
losses are allocated daily to each class of shares based upon the relative net
asset value of outstanding shares of each class of shares at the beginning of
the day (after adjusting for the current day's capital share activity of the
respective class).
d) Distributions to Shareholders - Dividends from net investment income of the
Money Market, Tax-Exempt Money Market, U.S. Government Money Market and the
Institutional Money Market Funds are declared daily and paid monthly. Dividends
from net investment income of the Short-Term Bond, Intermediate Bond, Tax-Exempt
Intermediate Bond and Bond IMMDEX(TM) Funds are declared and paid monthly.
Dividends from net investment income, if any, are declared and paid quarterly
for the Balanced Income, Balanced Growth, Growth & Income, Equity Index and
MidCap Index Funds and annually for the Large Cap Core Equity, MidCap Core
Equity, MicroCap and International Value Funds. Distributions of net realized
capital gains, if any, will be declared at least annually. Certain Funds may
also utilize earnings and profits distributed to shareholders on redemption of
shares as part of the dividends paid deduction. Accordingly, reclassifications
are made within the net asset accounts for such amounts, as well as amounts
related to permanent differences in the character of certain income and expense
items for income tax and financial reporting purposes.
e) Futures Contracts - The Equity Index Fund and MidCap Index Fund may utilize
futures contracts to a limited extent. The risk associated with the use of
futures contracts includes the possibility of an illiquid market. Futures
contracts are valued based upon their quoted daily settlement prices. Changes in
initial settlement value are accounted for as unrealized appreciation
(depreciation) until the contracts are terminated at which time realized gains
and losses are recognized.
<PAGE>
(LOGO) FIRSTAR FUNDS
f) When-Issued Securities - The Tax-Exempt Money Market, Balanced Income,
Balanced Growth, Growth and Income, Equity Index, Large Cap Core Equity, MidCap
Index, MidCap Core Equity, MicroCap, International Value, Short-Term Bond,
Intermediate Bond, Tax-Exempt Intermediate Bond and Bond IMMDEX(TM) Funds may
purchase securities on a when-issued or delayed delivery basis. Although the
payment and interest terms of these securities are established at the time the
purchaser enters into the agreement, these securities may be delivered and paid
for at a future date, generally within 45 days. Each of these Funds records
purchases of when-issued securities and reflects the values of such securities
in determining net asset value in the same manner as other portfolio securities.
Each of these Funds identifies and maintains at all times cash, cash
equivalents, or other liquid securities in an amount at least equal to the
amount of outstanding commitments of when-issued securities.
g) Use of Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
h) Foreign Currency Translations - The books and records of the International
Value Fund are maintained in U.S.dollars. Foreign currencies, investments, and
other assets and liabilities denominated in foreign currencies are translated
into U.S. dollars at the exchange rates prevailing at the end of the period, and
purchases and sales of investment securities, and income and expenses
denominated in foreign currencies are translated on the respective dates of such
transactions. Unrealized gains and losses on investments which result from
changes in foreign currency exchange rates have been included in the unrealized
net appreciation (depreciation) on investments. Foreign currency exchange gains
and losses included in net appreciation (depreciation) on foreign currency and
net realized gains and losses on foreign currency include foreign currency gains
and losses between trade date and settlement date on investment securities
transactions and foreign currency transactions; such amounts are considered net
investment income (loss) for tax purposes. The portion of the foreign currency
gains and losses related to fluctuation in exchange rates between the initial
purchase date and subsequent sale date of a security is included in realized
gains and losses on investment transactions.
i) Other - Investment and shareholder transactions are recorded on the trade
date. Dividend income is recognized on the ex-dividend date or as soon as
information is available to the Funds. Interest income is recognized on an
accrual basis. Discounts and premiums on securities are amortized over the life
of the respective security. Discounts and premiums on securities with put
provisions are amortized to the earlier of the put date or maturity. Realized
gains and losses from investment transactions are determined by comparing the
net sale proceeds to an identified cost basis. Transactions in capital shares at
$1.00 per share for the money market funds are shown in the Statement of Changes
in Net Assets.
<PAGE>
(LOGO) FIRSTAR FUNDS
3. CAPITAL SHARE TRANSACTIONS
Transactions, in thousands, of shares of the Funds were as follows:
<TABLE>
<CAPTION>
BALANCED INCOME BALANCED GROWTH GROWTH & INCOME
FUND FUND FUND
--------------- ---------------- ---------------
Amount Shares Amount Shares Amount Shares
------ ------ ------ ------ ------ ------
YEAR ENDED OCTOBER 31, 2000:
Series A shares:
<S> <C> <C> <C> <C> <C> <C>
Shares sold $ 1,556 140 $ 4,930 149 $ 11,515 251
Shares issued to owners in
reinvestment of dividends 490 45 3,692 119 16,227 378
Shares redeemed (3,976) (363) (13,973) (437) (43,862) (981)
---------- ----- --------- ----- ---------- -------
Net increase (decrease) $ (1,930) (178) $ (5,351) (169) $ (16,120) (352)
========== ===== ========= ===== ========== =======
Series B shares:
Shares sold $ 3,525 321 $ 1,538 47 $ 2,425 54
Shares issued to owners in
reinvestment of dividends 110 10 55 2 172 4
Shares redeemed (380) (34) (88) (3) (557) (13)
---------- ----- --------- ----- ---------- -------
Net increase $ 3,255 297 $ 1,505 46 $ 2,040 45
========== ===== ========= ===== ========== =======
Series Institutional shares:
Shares sold $ 64,263 5,930 $ 74,157 2,282 $ 128,142 2,839
Shares issued to owners in
reinvestment of dividends 1,975 180 12,490 401 39,852 926
Shares redeemed (41,615) (3,780) (124,078) (3,831) (189,546) (4,228)
---------- ----- --------- ----- ---------- -------
Net increase (decrease) $ 24,623 2,330 $ (37,431) (1,148) $ (21,552) (463)
========== ===== ========= ===== ========== =======
YEAR ENDED OCTOBER 31, 1999:
Series A shares:
Shares sold $ 5,020 454 $ 6,468 210 $ 26,309 570
Shares issued to owners in
reinvestment of dividends 731 66 2,840 92 15,257 332
Shares redeemed (3,181) (289) (15,607) (513) (44,599) (973)
---------- ----- --------- ----- ---------- -------
Net increase (decrease) $ 2,570 231 $ (6,299) (211) $ (3,033) (71)
========== ===== ========= ===== ========== =======
Series B shares:
Shares sold $ 1,591 145 $ 649 21 $ 1,606 35
Shares issued to owners in
reinvestment of dividends 9 1 2 0 1 0
Shares redeemed (28) (3) (14) 0 (36) (1)
---------- ----- --------- ----- ---------- -------
Net increase $ 1,572 143 $ 637 21 $ 1,571 34
========== ===== ========= ===== ========== =======
Series Institutional shares:
Shares sold $ 25,571 2,342 $ 57,953 1,893 $ 151,499 3,290
Shares issued to owners in
reinvestment of dividends 607 55 9,563 310 34,560 750
Shares redeemed (10,418) (949) (75,558) (2,501) (146,699) (3,196)
---------- ----- --------- ----- ---------- -------
Net increase (decrease) $ 15,760 1,448 $ (8,042) (298) $ 39,360 844
========== ===== ========= ===== ========== =======
</TABLE>
<PAGE>
(LOGO) FIRSTAR FUNDS
3. CAPITAL SHARE TRANSACTIONS (CONT.)
Transactions, in thousands, of shares of the Funds were as follows:
<TABLE>
<CAPTION>
EQUITY INDEX LARGE CAP CORE EQUITY MIDCAP INDEX MIDCAP CORE EQUITY
FUND FUND FUND<F1> FUND
------------- --------------------- ------------ ------------------
Amount Shares Amount Shares Amount Shares Amount Shares
------ ------ ------ ------ ------- ------ ------ ------
YEAR ENDED OCTOBER 31, 2000:
Series A shares:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold $ 14,644 155 $ 11,023 258 $ 1,923 176 $ 4,908 106
Shares issued to owners in
reinvestment of dividends 4,298 45 2,404 60 10 1 1,829 43
Shares redeemed (26,360) (279) (16,087) (380) (281) (24) (31,499) (700)
---------- ------- --------- ----- -------- ----- ---------- -------
Net increase (decrease) $ (7,418) (79) $ (2,660) (62) $ 1,652 153 $ (24,762) (551)
========== ======= ========= ===== ======== ===== ========== ========
Series B shares:
Shares sold $ 7,975 85 $ 1,376 33 $ 887 75 $ 466 10
Shares issued to owners in
reinvestment of dividends 138 1 40 1 1 0 3 0
Shares redeemed (1,599) (17) (750) (18) (30) (2) (33) (1)
---------- ------- --------- ----- -------- ----- ---------- -------
Net increase $ 6,514 69 $ 666 16 $ 858 73 $ 436 9
========== ======= ========= ===== ======== ===== ========== ========
Series Institutional shares:
Shares sold $ 388,400 4,085 $ 265,505 6,283 $ 115,867 10,905 $ 145,630 2,923
Shares issued to owners in
reinvestment of dividends 18,311 190 12,621 310 812 68 6,230 146
Shares redeemed (356,021) (3,746) (289,538) (6,869) (11,088) (947) (218,605) (4,617)
---------- ------- --------- ------- -------- ----- ---------- -------
Net increase (decrease) $ 50,690 529 $ (11,412) (276) $ 105,591 10,026 $ (66,745) (1,548)
========== ======= ========= ===== ======== ===== ========== ========
YEAR ENDED OCTOBER 31, 1999:
Series A shares:
Shares sold $ 32,030 378 $ 13,457 359 $ 10,459 266
Shares issued to owners in
reinvestment of dividends 1,948 23 4,322 117 1,072 26
Shares redeemed (27,974) (329) (11,168) (301) (53,329) (1,380)
---------- ------- --------- ------- ---------- -------
Net increase (decrease) $ 6,004 72 $ 6,611 175 $ (41,798) (1,088)
========== ======= ========= ====== ========== ========
Series B shares:
Shares sold $ 4,598 51 $ 745 20 $ 176 4
Shares issued to owners in
reinvestment of dividends 8 0 0 0 0 0
Shares redeemed (96) (1) (24) (1) (51) (1)
---------- ------- --------- ------- ---------- -----
Net increase $ 4,510 50 $ 721 19 $ 125 3
========== ======= ========= ===== ========== ========
Series Institutional shares:
Shares sold $ 304,539 3,463 $ 204,039 5,432 $ 245,028 6,379
Shares issued to owners in
reinvestment of dividends 7,889 92 18,176 486 3,350 80
Shares redeemed (294,685) (3,440) (127,316) (3,421) (358,282) (9,295)
---------- ------- --------- ------- ---------- -----
Net increase (decrease) $ 17,743 115 $ 94,899 2,497 $(109,904) (2,836)
========== ======= ========= ===== ========== ========
<F1> Capital share activity is for the period November 4, 1999 to October 31,
2000.
</TABLE>
<PAGE>
(LOGO) FIRSTAR FUNDS
3. CAPITAL SHARE TRANSACTIONS (CONT.)
Transactions, in thousands, of shares of the Funds were as follows:
MICROCAP INTERNATIONAL
FUND VALUE FUND
-------- -------------
Amount Shares Amount Shares
------ ------ ------ ------
YEAR ENDED OCTOBER 31, 2000:
Series A shares:
Shares sold $ 29,841 1,005 $ 1,014 54
Shares issued to owners in
reinvestment of dividends 5,924 296 4 0
Shares redeemed (29,091) (934) (1,803) (98)
-------- ------- ------- -------
Net increase (decrease) $ 6,674 367 $ (785) (44)
======== ======= ======== =======
Series B shares:
Shares sold $ 1,974 68 $ 540 30
Shares issued to owners in
reinvestment of dividends 61 3 0 0
Shares redeemed (240) (8) (88) (5)
-------- ------- ------- -------
Net increase $ 1,795 63 $ 452 25
======== ======= ======== =======
Series Institutional shares:
Shares sold $115,738 3,925 $ 30,344 1,639
Shares issued to owners in
reinvestment of dividends 40,308 1,987 143 7
Shares redeemed (76,850) (2,605) (32,780) (1,765)
-------- ------- ------- -------
Net increase (decrease) $ 79,196 3,307 $ (2,293) (119)
======== ======= ======== =======
YEAR ENDED OCTOBER 31, 1999:
Series A shares:
Shares sold $ 8,724 596 $ 1,394 81
Shares issued to owners in
reinvestment of dividends 42 3 122 8
Shares redeemed (9,284) (594) (2,781) (171)
-------- ------- ------- -------
Net increase (decrease) $ (518) 5 $ (1,265) (82)
======== ======= ======== =======
Series B shares:
Shares sold $ 119 6 $ 43 2
Shares issued to owners in
reinvestment of dividends 0 0 0 0
Shares redeemed 0 0 0 0
-------- ------- ------- -------
Net increase $ 119 6 $ 43 2
======== ======= ======== =======
Series Institutional shares:
Shares sold $ 44,207 2,966 $ 18,830 1,077
Shares issued to owners in
reinvestment of dividends 222 16 569 37
Shares redeemed (31,952) (1,964) (18,366) (1,125)
-------- ------- ------- -------
Net increase (decrease) $ 12,477 1,018 $ 1,033 (11)
======== ======= ======== =======
<PAGE>
(LOGO) FIRSTAR FUNDS
3. CAPITAL SHARE TRANSACTIONS (CONT.)
Transactions, in thousands, of shares of the Funds were as follows:
<TABLE>
<CAPTION>
BOND TAX-EXEMPT
SHORT-TERM INTERMEDIATE IMMDEX(TM) INTERMEDIATE
BOND FUND BOND FUND FUND BOND FUND
------------------ ----------------- ------------------- -----------------
Amount Shares Amount Shares Amount Shares Amount Shares
------ ------ ------ ------ ------ ------ ------ ------
YEAR ENDED OCTOBER 31, 2000:
Series A shares:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold $ 2,924 290 $ 2,820 281 $ 8,490 308 $ 1,936 191
Shares issued to owners in
reinvestment of dividends 2,940 292 1,235 123 4,433 163 572 57
Shares redeemed (21,526) (2,133) (10,422) (1,040) (26,710) (979) (7,255) (720)
-------- ------- ---------- ------- ---------- ------ --------- ------
Net increase (decrease) $(15,662) (1,551) $ (6,367) (636) $ (13,787) (508) $ (4,747) (472)
======== ======= ========== ======= ========== ====== ========= ======
Series B shares:
Shares sold $ 349 35 $ 160 16 $ 1,718 64 $ 150 15
Shares issued to owners in
reinvestment of dividends 28 3 14 1 114 4 5 1
Shares redeemed (145) (14) (86) (9) (1,051) (38) (25) (3)
-------- ------- ---------- ------- ---------- ------ --------- ------
Net increase $ 232 24 $ 88 8 $ 781 30 $ 130 13
======== ======= ========== ======= ========= ====== ========= ======
Series Institutional shares:
Shares sold $ 42,062 4,165 $207,558 20,711 $ 188,018 6,901 $ 57,030 5,639
Shares issued to owners in
reinvestment of dividends 4,489 445 10,534 1,053 19,999 736 855 85
Shares redeemed (45,012) (4,466) (95,065) (9,506) (154,741) (5,692) (23,893) (2,367)
-------- ------- ---------- ------- ---------- ------ --------- ------
Net increase (decrease) $ 1,539 144 $123,027 12,258 $ 53,276 1,945 $ 33,992 3,357
======== ======= ========== ======= ========= ====== ========= ======
YEAR ENDED OCTOBER 31, 1999:
Series A shares:
Shares sold $ 16,593 1,613 $ 11,144 1,076 $ 27,886 980 $ 10,448 996
Shares issued to owners in
reinvestment of dividends 3,684 361 1,312 128 5,101 182 1,102 106
Shares redeemed (28,615) (2,795) (6,903) (671) (26,725) (951) (22,903) (2,210)
-------- ------- ---------- ------- ---------- ------ --------- ------
Net increase (decrease) $ (8,338) (821) $ 5,553 533 $ 6,262 211 $(11,353) (1,108)
======== ======= ========== ======= ========= ====== ========= ======
Series B shares:
Shares sold $ 523 51 $ 298 29 $ 2,003 72 $ 74 7
Shares issued to owners in
reinvestment of dividends 11 1 5 0 38 1 1 0
Shares redeemed (11) (1) (92) (9) (128) (5) 0 0
-------- ------- ---------- ------- ---------- ------ --------- ------
Net increase $ 523 51 $ 211 20 $ 1,913 68 $ 75 7
======== ======= ========== ======= ========= ====== ========= ======
Series Institutional shares:
Shares sold $ 36,523 3,563 $ 59,956 5,810 $ 161,261 5,691 $ 20,125 1,936
Shares issued to owners in
reinvestment of dividends 5,004 512 9,542 986 19,616 698 754 73
Shares redeemed (28,833) (2,841) (65,622) (6,392) (205,542) (7,220) (19,735) (1,896)
-------- ------- ---------- ------- ---------- ------ --------- ------
Net increase (decrease) $ 12,694 1,234 $ 3,876 404 $ (24,665) (831) $ 1,144 113
======== ======= ========== ======= ========= ====== ========= ======
</TABLE>
<PAGE>
(LOGO) FIRSTAR FUNDS
4. INVESTMENT TRANSACTIONS
The aggregate purchases and sales, in thousands, of securities, excluding
short-term investments, for the Funds for the periods ended October 31,
2000, were as follows:
<TABLE>
<CAPTION>
BALANCED BALANCED GROWTH & EQUITY LARGECAP CORE
INCOME FUND GROWTH FUND INCOME FUND INDEX FUND EQUITY FUND
----------- ----------- ---------- --------- -------------
Purchases:
<S> <C> <C> <C> <C> <C>
U.S. Government $ 27,045 $ 14,084 - - --
Other 66,883 161,124 $606,025 $89,326 $214,336
Sales:
U.S. Government $ 15,995 $ 26,111 - - --
Other 52,287 221,144 $695,576 $48,836 $263,154
MIDCAP MIDCAP CORE
INDEX EQUITY MICROCAP INTERNATIONAL
FUND FUND FUND VALUE FUND
----------- ----------- ---------- ---------
Purchases:
U.S. Government - - - --
Other $142,495 $ 965,811 $574,038 $43,064
Sales:
U.S. Government - - - --
Other $ 39,574 $1,093,985 $557,702 $47,204
TAX-EXEMPT BOND
SHORT-TERM INTERMEDIATE INTERMEDIATE IMMDEX/TM
BOND FUND BOND FUND BOND FUND FUND
----------- ----------- ---------- ---------
Purchases:
U.S. Government $ 27,046 $ 78,701 - $106,384
Other 29,446 87,867 $40,198 71,747
Sales:
U.S. Government $ 18,004 $ 24,430 - $ 76,154
Other 52,690 41,293 $14,856 53,468
Equity Index Fund transactions in futures contracts during the period October 31, 1999 to October 31, 2000, in thousands,
were as follows:
AGGREGATE
NUMBER OF FACE VALUE OF
CONTRACTS CONTRACTS<F1>
--------- -------------
Outstanding at October 31, 1999 97 $ 32,268
Contracts opened 1,285 465,359
Contracts closed (1,322) (476,054)
--------- ----------
Outstanding at October 31, 2000 60 $ 21,573
========= ==========
<F1> The aggregate face value of contracts is computed on the date each contract is opened.
The number of futures contracts and net unrealized appreciation, in thousands,
as of October 31, 2000, were as follows:
NUMBER OF UNREALIZED
CONTRACTS APPRECIATION
S&P 500 Financial Futures Contract --------- ------------
Expiration date 12/00(2) 60 $30
(2) At October 31, 2000, U.S. Treasury Bills of $4,582, in thousands, were held as collateral by the custodian in an initial
margin account in connection with open futures contracts held by the Equity Index Fund.
<PAGE>
(LOGO) FIRSTAR FUNDS
MidCap Index Fund transactions in futures contracts during the period October 31, 1999 to October 31, 2000, in thousands,
were as follows:
AGGREGATE
NUMBER OF FACE VALUE OF
CONTRACTS CONTRACTS<F1>
--------- -------------
Outstanding at November 4, 1999(2) - $ --
Contracts opened 371 87,737
Contracts closed (345) (80,765)
----- ---------
Outstanding at October 31, 2000 26 $ 6,972
===== =========
<F1> The aggregate face value of contracts is computed on the date each contract is opened.
<F2> Commencement of operations.
The number of futures contracts and net unrealized appreciation, in thousands, as of October 31, 2000, were as follows:
NUMBER OF UNREALIZED
CONTRACTS DEPRECIATION
--------- ------------
MidCap 400 Financial Futures Contract
Expiration date 12/00(3) 26 $(196)
<F3> At October 31, 2000, U.S. Treasury Bills of $898, in thousands, were held as collateral by the custodian in an initial
margin account in connection with open futures contracts held by the MidCap Index Fund.
At October 31, 2000, gross unrealized appreciation and depreciation of investments for federal tax purposes, in
thousands, were as follows:
BALANCED BALANCED GROWTH & EQUITY LARGE CAP CORE
INCOME FUND GROWTH FUND INCOME FUND INDEX FUND EQUITY FUND
----------- ----------- ---------- --------- --------------
Appreciation $14,976 $48,311 $207,058 $414,356 $127,664
(Depreciation) (1,363) (6,728) (9,880) (43,430) (9,186)
Net unrealized appreciation ------- ------- --------- -------- --------
on investments $13,613 $41,583 $197,178 $370,926 $118,478
======= ======= ======== ======== ========
MIDCAP MIDCAP CORE
INDEX EQUITY MICROCAP INTERNATIONAL
FUND FUND FUND VALUE FUND
------ ----------- --------- -------------
Appreciation $23,169 $107,599 $100,603 $ 5,300
(Depreciation) (13,633) (27,782) (43,221) (7,814)
--------- --------- ---------- ---------
Net unrealized appreciation
(depreciation) on
investments $ 9,536 $ 79,817 $ 57,382 $(2,514)
======== ======== ======== ========
TAX-EXEMPT BOND
SHORT-TERM INTERMEDIATE INTERMEDIATE IMMDEX/TM
BOND FUND BOND FUND BOND FUND FUND
---------- ------------ ------------ --------
Appreciation $ 494 $ 4,507 $ 567 $ 16,862
(Depreciation) (1,393) (5,662) (1,090) (11,819)
Net unrealized appreciation -------- -------- -------- ---------
(depreciation) on
investments $ (899) $(1,155) $ (523) $ 5,043
======== ======== ======== ========
</TABLE>
<PAGE>
(LOGO) FIRSTAR FUNDS
At October 31, 2000, the cost of investments, in thousands, for federal
income tax purposes was $82,744, $174,885, $511,407, $411,154, $269,512,
$118,777, $452,635, $320,961, $52,360, $184,398, $432,862, $113,140 and $552,337
for the Balanced Income, Balanced Growth, Growth & Income, Equity Index, Large
Cap Core Equity, MidCap Index, MidCap Core Equity, MicroCap, International
Value, Short-Term Bond, Intermediate Bond, Tax-Exempt Intermediate Bond and Bond
IMMDEX(TM) Funds, respectively. The difference between cost amounts for
financial reporting and tax purposes is primarily due to timing differences in
recognizing certain gains and losses on security transactions, for the Balanced
Income Fund, a tax-free conversion of a bank common trust fund and for the
International Value Fund, passive foreign investment company (PFIC) value
adjustments.
At October 31, 2000, the Short-Term Bond Fund had accumulated net realized
capital loss carryovers, in thousands, of $980, expiring in 2002. The Short-Term
Bond Fund had accumulated net realized capital loss carryovers, in thousands, of
$189, expiring in 2003. The Short-Term Bond Fund had accumulated net realized
capital loss carryovers, in thousands, of $79, expiring in 2004. The Short-Term
Bond Fund had accumulated net realized capital loss carryovers, in thousands, of
$1,082 expiring in 2005. The International Value Fund had accumulated net
realized capital loss carryovers, in thousands, of $4,919 expiring in 2006. The
Short-Term Bond, Intermediate Bond and International Value Funds had accumulated
net realized capital loss carryovers, in thousands, of $604, $155 and $3,881,
respectively, expiring in 2007. The Short-Term Bond, Tax-Exempt Intermediate
Bond and International Value Funds had accumulated net realized capital loss
carryovers, in thousands, of $497, $209 and $2,509, respectively, expiring in
2008. To the extent each Fund realizes future net capital gains, taxable
distributions to its respective shareowners will be offset by any unused capital
loss carryover.
For the year ended October 31, 2000, the following percent of ordinary income
dividends (unaudited) qualifies for the dividend received deduction available to
corporate stockholders: Balanced Income Fund 23%, Balanced Growth Fund 5%,
Growth & Income Fund 100%, Equity Index Fund 80% and Large Cap Core Equity Fund
62%.
5. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Funds have entered into an Investment Advisory Agreement with Firstar
Investment Research & Management Company ("FIRMCO"). FIRMCO is a subsidiary of
Firstar Corporation, a publicly held bank holding company. Pursuant to its
Advisory Agreement with the Funds, the Adviser is entitled to receive a fee,
calculated daily and payable monthly, at the annual rates presented below as
applied to each Fund's daily net assets. Effective September 2, 1997
FIRMCO entered into a Sub-Advisory Agreement with Hansberger Global Investors
(the "Sub-Adviser") for the International Value Fund. Prior to September 2,
1997, FIRMCOhad entered into a sub-advisory agreement with State Street Global
Advisors for the International Value Fund. Pursuant to the Sub-Advisory
Agreement with FIRMCO, the Sub-Advisor is entitled to receive a fee from FIRMCO,
calculated daily and payable monthly, at the annual rate presented below as
applied to the International Value Funds' daily net assets.
For the period ended October 31, 2000, FIRMCO voluntarily waived the following
fees, in thousands, by Fund:
<TABLE>
<CAPTION>
BALANCED BALANCED GROWTH & EQUITY LARGE CAP MIDCAP MIDCAP
INCOME GROWTH INCOME INDEX CORE EQUITY INDEX CORE EQUITY
FUND FUND FUND FUND FUND FUND FUND
-------- -------- --------- ------ ----------- ------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Annual Rate 0.75% 0.75% 0.75% 0.25% 0.75% 0.25% 0.75%
Fees Waived $157 $144 $41 $522 $22 $151 $81
TAX-EXEMPT BOND MONEY
MICROCAP INTERNATIONAL SHORT-TERM INTERMEDIATE INTERMEDIATE IMMDEX(TM) MARKET
FUND VALUEFUND BOND FUND BOND FUND BOND FUND FUND FUND
-------- ------------- ---------- ------------ ------------ ---------- ------
Annual Rate 1.50% (2) (3) 0.60% 0.50% 0.50% 0.30% (1)
Fees Waived - $179 $540 $500 $164 $14 $426
INSTITUTIONAL TAX-EXEMPT U.S. GOVERNMENT
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
------------- ------------ ---------------
Annual Rate (1) (1) (1)
Fees Waived $4,653 - $107
</TABLE>
<F1> 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.
<F2> FIRMCO is entitled to receive a fee, calculated daily and payable monthly,
at the annual rate of 1.50% of the Fund's first $25 million of average
daily net assets, 1.25% on the next $75 million and 1.10% of the Fund's
average daily net assets in excess of $100 million.
<F3> Pursuant to its Sub-Advisory Agreement with FIRMCO, the Sub-Adviser is
entitled to receive a fee from FIRMCO, calculated daily and payable
monthly, at the annual rate of 0.75% of the Fund's first $25 million of
average daily net assets, 0.50% on the next $75 million and 0.35% of the
Fund's average daily net assets in excess of $100 million.
<PAGE>
(LOGO) FIRSTAR FUNDS
Chase Manhattan Bank serves as sub-custodian for the International Value
Fund. Firstar Bank, N.A. serves as custodian and Firstar Mutual Fund Services,
LLC serves as transfer agent and accounting services agent for all the Funds.
Both companies are affiliates of FIRMCO.
The Company has entered into a Distribution Agreement with Quasar
Distributors, LLC (the "Distributor") as its agent for the sale and distribution
of shares of the Funds. Pursuant to the Distribution Agreement with the Company,
the Distributor is entitled to receive a fee, computed daily and payable
monthly, at the annual rate of 0.01% of the Company's average daily net assets.
The Company has entered into an Administration Agreement with Firstar Mutual
Fund Services, LLC (the "Administrator") for certain administrative services.
Pursuant to the Administration Agreement with the Company, the Administrator is
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 year ended October 31, 2000, $870 of administration fees,
in thousands, were waived for the Institutional Money Market Fund.
The Company has entered into Servicing Agreements with certain Service
Organizations, including FIRMCOaffiliates, for the non-money market Series A and
Series B classes of shares. The Service Organizations are entitled to receive
fees from the Funds up to the annual rate of 0.25% of the average daily net
asset value of the Series A and Series B Shares for certain support and/or
distribution services to customers of the Service Organizations who are
beneficial owners of Series A and Series B Shares. These services may include
assisting customers in processing purchase, exchange and redemption requests;
processing dividend and distribution payments from the Funds; and providing
information periodically to customers showing their positions in Series A and
Series B Shares. Service Organization fees, in thousands, incurred by the
Short-Term Bond, Intermediate Bond, Tax-Exempt Intermediate Bond, Bond
IMMDEX(TM), Balanced Income, Balanced Growth, Growth & Income, Equity Index,
Large Cap Core Equity, MidCap Index, MidCap Core Equity, MicroCap and
International Value Funds aggregated $143, $77, $41, $223, $39, $138, $468,
$386, $132, $4, $258, $106 and $16, respectively, for the period ended October
31, 2000.
The Funds have adopted a Service Plan and, except for the Institutional Money
Market Fund a Distribution and Service Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 for the Series A, the Series B and the money
market funds' shareholders. The Funds paid no 12b-1 fees with respect to the
Series A Shares or the money market funds for the current fiscal year except for
the Money Market Fund, which incurred $106, in thousands, for the period ended
October 31, 2000. The Funds incurred 0.75% in 12b-1 fees with respect to Series
B Shares for the current fiscal year. For the periods ended October 31, 2000,
the Short-Term Bond, Intermediate Bond, Tax-Exempt Intermediate Bond, Bond
IMMDEX(TM), Balanced Income, Balanced Growth, Growth & Income, Equity Index,
Large Cap Core Equity, MidCap Index, MidCap Core Equity, MicroCap and
International Value Funds incurred expenses, in thousands, of $5, $2, $1, $18,
$27, $10, $20, $65, $10, $3, $3, $9 and $2, respectively.
Each Director of the Company who is not affiliated with FIRMCO receives an
annual fee from the Company for service as a Director and is eligible to
participate in a deferred compensation plan with respect to these fees.
Participants in the plan may designate their deferred Director's fees as if
invested in any one of the Firstar Funds (with the exception of the MicroCap
Fund) or in 90-day U.S. Treasury bills. The value of each Director's deferred
compensation account will increase or decrease as if it were invested in shares
of the selected Firstar Funds or 90-day U.S. Treasury bills. The Funds maintain
their proportionate share of the Company's liability for deferred fees.
6. FOREIGN SECURITIES
Investing in securities of foreign companies and foreign governments involves
special risks and considerations not typically associated with investing in
U.S.companies and the U.S. Government. These risks include revaluation of
currencies and future adverse political and economic developments. Moreover,
securities of many foreign companies and foreign governments and their markets
may be less liquid and their prices more volatile than those of securities of
comparable U.S. companies and the U.S.Government.
7. SECURITIES LENDING
The Funds have entered into a securities lending agreement with the custodian.
Under the terms of the agreement, the Funds receive a negotiable percentage of
the annual net income from lending transactions. In exchange for such fees, the
custodian is authorized to loan securities on behalf of the Funds, against
receipt of collateral at least equal in value to the value of the securities
loaned. The Funds bear the risk of any deficiency in the amount of collateral
available for return due to a loss in an approved instrument. As of October 31,
2000, the Intermediate Bond Fund and Bond Immdex(TM) Fund had on loan securities
valued at $72,677,213 and $38,394,788, respectively.
<PAGE>
(LOGO) FIRSTAR FUNDS
8. DISTRIBUTION TO SHAREHOLDERS (UNAUDITED)
The following Funds hereby designate the following amounts as long-term capital
gain distributions for purposes of the dividends paid deduction.
<TABLE>
<CAPTION>
BALANCED BALANCED GROWTH & EQUITY LARGE CAP MIDCAP MIDCAP BOND
INCOME GROWTH INCOME INDEX CORE EQUITY CORE EQUITY MICROCAP INDEX IMMDEX/TM
FUND FUND FUND FUND FUND FUND FUND FUND FUND
-------- --------- ----------- ---------- ----------- ----------- ------------ -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$437,799 $19,283,324 $71,234,800 $5,748,887 $40,220,016 $76,005,902 $16,240,773 $753,127 $2,275,977
</TABLE>
9. TRANSACTIONS WITH AFFILIATES The following companies are affiliated with
the Funds either directly, or by the Fund holding 5% or more of the outstanding
voting securities during the period ended October 31, 2000. Such companies are
defined in Section (2)(a)(3) of the Investment Company Act of 1940.
<TABLE>
<CAPTION>
SHARE BALANCE AT SHARE BALANCE AT
COMPANY OCTOBER 31, 1999 PURCHASES SALES OCTOBER 31, 2000 DIVIDENDS GAIN/LOSSES
------- ---------------- --------- ----- ---------------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
Firstar Corporation 59,737 - - 59,737 $38,829 --
(held in Equity Index Fund)
</TABLE>
10. SUBSEQUENT EVENT - CAPITAL GAIN DISTRIBUTIONS (UNAUDITED)
In addition to any regularly scheduled distribution of
net investment income, the following funds paid capital gain distributions to
shareholders of record on November 21, 2000.
<TABLE>
<CAPTION>
BALANCED BALANCED GROWTH & EQUITY LARGE CAP
INCOME GROWTH INCOME INDEX CORE EQUITY
FUND FUND FUND FUND FUND
-------- --------- --------- ------- -----------
<S> <C> <C> <C> <C> <C>
Short-term per share $-- $2.09 $ - $ - $0.35
Long-term per share $0.05 $2.94 $4.75 $0.69 $4.53
MIDCAP MIDCAP BOND
INDEX CORE EQUITY MICROCAP IMMDEX/TM
FUND FUND FUND FUND
--------- ----------- -------- --------
Short-term per share $0.99 $10.04 $7.60 $ --
Long-term per share $0.07 $ 7.79 $1.39 $0.11
</TABLE>
<PAGE>
(LOGO) FIRSTAR FUNDS
11. SUBSEQUENT EVENT - VOTING RESULTS OF SPECIAL MEETING OF SHAREHOLDERS
(UNAUDITED) The proposals described below were submitted to a vote of
shareholders of the Company at a special meeting of shareholders held on
November 8, 2000 (the "Meeting"):
Proposal No. 1 - to elect Messrs. Bomberger, Haase, Hunt, Laning, Remmel,
Riederer, Wade, Woodham and Zimmer and Mmes. Hornback and Zentmyer as directors.
At the Meeting, shareholders of the Company approved Proposal No. 1 as follows:
<TABLE>
<CAPTION>
NOMINEE SHARES VOTED FOR SHARES WITHHELD
------- ---------------- ---------------
<S> <C> <C>
Glen R. Bomberger 2,218,563,302 5,867,527
Bronson J. Haase 2,218,319,869 6,110,960
Dawn M. Hornback 2,218,638,300 5,792,529
Joseph J. Hunt 2,218,689,538 5,741,291
Bruce Laning 2,218,134,808 6,296,021
Jerry G. Remmel 2,218,561,508 5,869,321
Richard K. Riederer 2,218,630,105 5,800,724
James M. Wade 2,218,626,544 5,804,285
Jerry V. Woodham 2,218,664,855 5,765,974
Marian Zentmyer 2,218,140,410 6,290,419
William H. Zimmer, III 2,218,662,944 5,767,885
</TABLE>
Proposal No. 2 - Ratification of the selecton of PricewaterhouseCoopers LLP
as the Company's independent accountants for the fiscal year ending October 31,
2001.
At the Meeting, shareholders of the Company approved Proposal No. 2 as follows:
FOR AGAINST ABSTAIN
------------- --------- ---------
2,218,333,865 1,028,436 5,068,535
Proposal No. 3 - Approval of an Amendment to the Articles of Incorporation
authorizing the Company to issue an indefinite number of shares divided into two
hundred classes of shares.
At the Meeting, shareholders of the Company approved Proposal No. 3 as follows:
FOR AGAINST ABSTAIN
------------- --------- ----------
2,199,478,444 4,672,070 8,386,318
11,894,004 shares represented broker non-votes.
<PAGE>
(LOGO) FIRSTAR FUNDS
12. SUBSEQUENT EVENT - PORTFOLIO MERGERS
At meetings held on June 16, 2000 and July 13, 2000, the Board of Directors
of Firstar Funds, Inc. ("Firstar Funds") approved (i) an Agreement and Plan of
Reorganization providing for the acquisition of Mercantile Mutual Funds, Inc.
("Mercantile Funds") by Firstar Funds, (ii) an Agreement and Plan of
Reorganization providing for the acquisition of Firstar Stellar Funds ("Stellar
Funds") by Firstar Funds, and (iii) an Agreement and Plan of Reorganization
providing for the acquisition of Firstar Select Funds ("Select Funds") by
irstar Funds. The Board of Directors and shareholders of Mercantile Funds
(other than the Mercantile Conning Money Market Portfolio) and Select Funds and
the Board of Trustees and shareholders of Stellar Funds each approved their
applicable agreements.
On November 27, 2000, certain portfolios of the Firstar Funds, including newly
formed shell portfolios (which were organized solely to acquire the assets and
continue the business of certain portfolios of Mercantile Funds, Stellar Funds
and Select Funds) merged with certain portfolios of Mercantile Funds and
Stellar Funds. On December 11, 2000, certain other portfolios of Mercantile
Funds (other than the Mercantile Conning Money Market Portfolio), Stellar Funds
and Select Funds merged into shell portfolios of Firstar Funds. Following is a
table (in thousands) that illustrates the specifics of the mergers.
<PAGE>
(LOGO) FIRSTAR FUNDS
<TABLE>
<CAPTION>
RETAIL A SHARES
VALUE OF ASSETS ISSUED TO
TRANSFERRED SHAREHOLDERS
BY MERGING OF FUND
MERGING FUND NAME FUND MERGED INTO FUND MERGED INTO
------------------ ------------------ ------------- -------------
<S> <C> <C> <C>
Firstar U.S. Treasury Money Market Firstar Stellar Treasury<F1> $133,616 -
Firstar Emerging Growth Mercantile Small Cap Equity<F1> 198,507 801
Firstar Core International Equity Mercantile International Equity<F1> 37,900 2
Firstar Stellar International Equity Fund <F1> Firstar Global Equity Fund <F2> 69,924 -
Firstar Stellar Tax-Free Money Market Firstar Tax-Exempt Money Market<F1> 227,545 227,560
Firstar Stellar Ohio Tax-Free Money Market<F1> Firstar Ohio Tax-Free Money Market<F2> 83,673 355
Firstar Stellar Insured Tax-Free Bond Mercantile National Municipal Bond<F1> 153,544 15,792
Firstar Stellar U.S. Government Income Mercantile U.S. Government Securities<F1> 148,775 14,341
Firstar Stellar Strategic Income<F1> Firstar Strategic Income<F2> 127,815 3
Firstar Stellar Growth Equity<F1> Firstar Large Cap Growth<F2> 320,713 57
Firstar Stellar Relative Value<F1> Firstar Relative Value<F2> 503,157 1,456
Firstar Stellar Science & Technology<F1> Firstar Science & Technology<F2> 121,342 106
Firstar Stellar Firstar Balanced Income<F1> 74,336 3,249
Firstar Stellar Capital Appreciation Firstar MidCap Index<F1> 67,980 6,166
Firstar Stellar Treasury<F1> Firstar U.S. Treasury Money Market<F2> 4,074,065 2,289,736
Firstar Select REIT<F1><F4> Firstar REIT<F2> 36,907 -
Mercantile Money Market Firstar Money Market<F1> 286,935 286,936
Mercantile Tax-Exempt Money Market Firstar Tax-Exempt Money Market<F1> 110,322 166
Mercantile Treasury Money Market Firstar Stellar Treasury<F1> 159,014 -
Mercantile U.S. Government Securities<F1> Firstar U.S. Government Securities<F2> 62,369 343
Mercantile Intermediate Corporate Bond Firstar Intermediate Bond Market<F1> 33,573 41
Mercantile Bond Index<F3> Firstar Aggregate Bond<F2> 157,850 85
Mercantile Government & Corporate Bond<F1> Firstar Aggregate Bond<F2> 126,076 282
Mercantile Short-Intermediate Municipal Bond Firstar Tax-Exempt Intermediate Bond<F1> 23,607 5
Mercantile Missouri Tax-Exempt Bond<F1> Firstar Missouri Tax-Exempt Bond<F2> 152,395 1,703
Mercantile National Municipal Bond<F1> Firstar National Municipal Bond<F2> 254,136 157
Mercantile Balanced Firstar Balanced Growth<F1> 66,580 285
Mercantile Equity Income<F1> Firstar Equity Income<F2> 51,717 124
Mercantile Equity Index Firstar Equity Index<F1> 100,479 31
Mercantile Growth & Income Equity Firstar Growth & Income<F1> 268,735 973
Mercantile Growth Equity Firstar Growth<F1> 95,738 203
Mercantile Small Cap Equity<F1> Firstar Small Cap Core Equity<F2> 137,018 683
Mercantile Small Cap Equity Index<F1> Firstar Small Cap Index<F2> 76,317 18
Mercantile International Equity Firstar International Growth 131,976 264
</TABLE>
<TABLE>
<CAPTION>
RETAIL B SHARES Y SHARES INSTITUTIONAL
ISSUED TO ISSUED TO SHARES ISSUED
SHAREHOLDERS SHAREHOLDERS TO SHAREHOLDERS EFFECTIVE
OF FUND OF FUND OF FUND DATE OF
MERGING FUND NAME MERGED INTO MERGED INTO MERGED INTO MERGER
------------------- ---------------- ---------------- ----------------- -----------
<S> C> <C> <C> <C>
Firstar U.S. Treasury Money Market - - $133,616 11/27/2000
Firstar Emerging Growth 31 - 14,504 11/27/2000
Firstar Core International Equity 9 - 2,901 11/27/2000
Firstar Stellar International Equity Fund <F1> - - 5,669 12/11/2000
Firstar Stellar Tax-Free Money Market - - - 11/27/2000
Firstar Stellar Ohio Tax-Free Money Market<F1> - - 83,318 12/11/2000
Firstar Stellar Insured Tax-Free Bond 10 - - 11/27/2000
Firstar Stellar U.S. Government Income 132 - - 11/27/2000
Firstar Stellar Strategic Income<F1> 14,938 - - 12/11/2000
Firstar Stellar Growth Equity<F1> 3,972 - 9,383 12/11/2000
Firstar Stellar Relative Value<F1> 537 - 16,100 12/11/2000
Firstar Stellar Science & Technology<F1> 704 - 6,251 12/11/2000
Firstar Stellar 23 - 3,404 11/27/2000
Firstar Stellar Capital Appreciation 3 - - 11/27/2000
Firstar Stellar Treasury<F1> - - 1,784,330 11/27/2000
Firstar Select REIT<F1><F4> - - 4,085 12/11/2000
Mercantile Money Market - - - 11/27/2000
Mercantile Tax-Exempt Money Market - - 110,168 11/27/2000
Mercantile Treasury Money Market - - 159,016 11/27/2000
Mercantile U.S. Government Securities<F1> 13 501 5,140 11/27/2000
Mercantile Intermediate Corporate Bond - 4 3,263 11/27/2000
Mercantile Bond Index<F3> - 1,912 13,828 11/27/2000
Mercantile Government & Corporate Bond<F1> 65 1,486 10,754 11/27/2000
Mercantile Short-Intermediate Municipal Bond - - 2,322 11/27/2000
Mercantile Missouri Tax-Exempt Bond<F1> 222 - 11,075 12/11/2000
Mercantile National Municipal Bond<F1> 65 - 25,986 11/27/2000
Mercantile Balanced 59 533 1,563 11/27/2000
Mercantile Equity Income<F1> 98 12 7,692 12/11/2000
Mercantile Equity Index - 391 721 11/27/2000
Mercantile Growth & Income Equity 205 1,654 3,786 11/27/2000
Mercantile Growth Equity 56 120 2,276 11/27/2000
Mercantile Small Cap Equity<F1> 103 322 9,166 11/27/2000
Mercantile Small Cap Equity Index<F1> - 1,610 5,489 12/11/2000
Mercantile International Equity 59 1,197 8,647 12/11/2000
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
GAIN/LOSS
OF MERGING
FIRSTAR FUND AT TAX STATUS
MERGING FUND NAME TIME OF MERGER OF TRANSFER NEW FIRSTAR FUND NAME
-------------------------- ----------------- -------------- ------------------------
<S> <C> <C> <C>
Firstar U.S. Treasury Money Market $ - Non-taxable Firstar U.S. Treasury Money Market
Firstar Emerging Growth 18,818 Non-taxable Firstar Small Cap Core Equity
Firstar Core International Equity (1,825) Non-taxable Firstar International Growth
Firstar Stellar International Equity Fund<F1> 1,931 Non-taxable Firstar Global Equity Fund
Firstar Stellar Tax-Free Money Market - Non-taxable Firstar Tax-Exempt Money Market
Firstar Stellar Ohio Tax-Free Money Market<F1> - Non-taxable Firstar Ohio Tax-Exempt Money Market
Firstar Stellar Insured Tax-Free 2,768 Non-taxable Firstar National Municipal Bond
Firstar Stellar U.S. Government Income (370) Non-taxable Firstar U.S. Government Securities
Firstar Stellar Strategic Income<F1> (6,744) Non-taxable Firstar Strategic Income
Firstar Stellar Growth Equity<F1> 118,833 Non-taxable Firstar Large Cap Growth
Firstar Stellar Relative Value<F1> 222,034 Non-taxable Firstar Relative Value
Firstar Stellar Science & Technology<F1> 13,947 Non-taxable Firstar Science & Technology
Firstar Stellar 9,493 Non-taxable Firstar Balanced Income
Firstar Stellar Capital Appreciation 14,099 Non-taxable Firstar MidCap Index
Firstar Stellar Treasury<F1> - Non-taxable Firstar U.S. Treasury Money Market
Firstar Select REIT<F1><F4> 2,994 Non-taxable Firstar REIT
Mercantile Money Market - Non-taxable Firstar Money Market
Mercantile Tax-Exempt Money Market - Non-taxable Firstar Tax-Exempt Money Market
Mercantile Treasury Money Market - Non-taxable Firstar U.S. Treasury Money Market
Mercantile U.S. Government Securities<F1> (503) Non-taxable Firstar U.S. Government Securities
Mercantile Intermediate Corporate Bond (1,411) Non-taxable Firstar Intermediate Bond Market
Mercantile Bond Index<F3> (314) Non-taxable Firstar Aggregate Bond
Mercantile Government & Corporate Bond<F1> (168) Non-taxable Firstar Aggregate Bond
Mercantile Short-Intermediate Municipal Bond (151) Non-taxable Firstar Tax-Exempt Intermediate Bond
Mercantile Missouri Tax-Exempt Bond<F1> 2,351 Non-taxable Firstar Missouri Tax-Exempt Bond
Mercantile National Municipal Bond<F1> 1,301 Non-taxable Firstar National Municipal Bond
Mercantile Balanced (284) Non-taxable Firstar Balanced Growth
Mercantile Equity Income<F1> 16,056 Non-taxable Firstar Equity Income
Mercantile Equity Index 23,220 Non-taxable Firstar Equity Index
Mercantile Growth & Income Equity 50,298 Non-taxable Firstar Growth & Income
Mercantile Growth Equity 40,483 Non-taxable Firstar Large Cap Core Equity
Mercantile Small Cap Equity<F1> 16,326 Non-taxable Firstar Small Cap Core Equity
Mercantile Small Cap Equity Index<F1> 3,685 Non-taxable Firstar Small Cap Index
Mercantile International Equity (1,141) Non-taxable Firstar International Growth
</TABLE>
<F1> Accounting survivor, performance history carries over.
<F2> Shell portfolio.
<F3> Concurrent merger; Mercantile Government & Corporate Bond is accounting
survivor; performance history carries over.
<F4> Financial statements will be presented in a separate report.
<PAGE>
(LOGO) FIRSTAR FUNDS
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF
FIRSTAR FUNDS, INC.:
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Institutional Money Market
Fund, Money Market Fund, Tax-Exempt Money Market Fund, U.S. Government Money
Market Fund, Short-Term Bond Fund (formerly known as Short-Term Bond Market
Fund), Intermediate Bond Fund (formerly known as Intermediate Bond Market Fund),
Bond Immdex(TM) Fund, Tax-Exempt Intermediate Bond Fund, Balanced Income Fund,
Balanced Growth Fund, Growth & Income Fund, Equity Index Fund, Large Cap Core
Equity Fund (formerly known as Growth Fund), International Value Fund (formerly
known as International Equity Fund), MidCap Index Fund, MidCap Core Equity Fund
(formerly known as Special Growth Fund) and MicroCap Fund (seventeen of the
portfolios comprising Firstar Funds, Inc., hereafter referred to as the "Funds")
at October 31, 2000, the results of each of their operations, the changes in
each of their net assets and the financial highlights for each of the periods
indicated, all in conformity with accounting principles generally accepted in
the United States of America. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Funds' management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States of America, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at October
31, 2000 by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion.
PricewaterhouseCoopers LLP
Milwaukee, Wisconsin
December 29, 2000
<PAGE>
(LOGO) FIRSTAR FUNDS
U.S. TREASURY MONEY MARKET FUND
OHIO TAX-EXEMPT MONEY MARKET FUND
STRATEGIC INCOME FUND
RELATIVE VALUE FUND
LARGE CAP GROWTH FUND
SCIENCE & TECHNOLOGY FUND
NOTES TO THE FINANCIAL STATEMENTS
1. ORGANIZATION
Firstar Stellar Funds (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "Act"), as an open-end management
investment company. During 2000, the Boards of Directors for Firstar Funds, Inc.
and Mercantile Mutual Funds, and the Board of Trustees for the Trust
approved a plan to combine the three fund families together to form a single
family - Firstar Funds. See footnotes 9 and 10. The investment objectives of
the funds (individually referred to as the "Fund", or collectively as the
"Funds") are as follows:
FUND NAME INVESTMENT OBJECTIVE
--------- --------------------
U.S. Treasury Stability of principal and current
Money Market Fund income consistent with stability
(formerly known as of principal.
"Treasury Fund")
Ohio Tax-Exempt Current income exempt from federal
Money Market Fund income tax and the personal income
(formerly know as taxes imposed by the state of Ohio
"Ohio Tax-Free and Ohio municipalities with
Money Market Fund") stability of principal.
Strategic Income Fund Generate high current income.
Relative Value Fund Maximize total return, a combination
of income and capital appreciation.
Large Cap Growth Fund Maximize capital appreciation.
(formerly known as
"Growth Equity Fund")
Science & Technology Fund Maximize growth and capital
appreciation by investing in the
science and technology industry.
The assets of each Fund are segregated and a shareholder's interest is
limited to the Fund in which shares are held.
The U.S. Treasury Money Market Fund offers two classes of shares (Series A
and Series Institutional - formerly known as C and Y Shares, respectively);
the Ohio Tax-Exempt Money Market Fund offers one class of shares (Series A -
formerly known as C Shares); the Strategic Income Fund offers two classes of
shares (Series A and Series B - formerly known as A and BShares, respectively);
and the Relative Value Fund, Large Cap Growth Fund and Science & Technology Fund
each offer three classes of shares (Series A, Series B and Series Institutional
- formerly known as A,B and Y Shares, respectively).
Series A shares are subject to an initial sales charge imposed at the time of
purchase, in accordance with the Funds' prospectus. The maximum sales charge on
Series A shares in the Strategic Income Fund is 4.00% of the offering price or
4.17% of the net asset value. The maximum sales charge on Series A shares in the
Relative Value Fund, Large Cap Growth Fund and Science & Technology Fund is
5.50% of the offering price or 5.82% of the net asset value. The ClassB shares
are subject to a contingent deferred sales charge at the time of redemption, in
accordance with the Funds' prospectus. The maximum sales charge is 5% for
redemptions in the first year, 4% in the second year, 3% in the third and fourth
years, 2% in the fifth year, 1% in the sixth year and 0% thereafter. Following
the sixth year, the Series B shares convert to the Series A shares expense
structure.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
a) Investment Valuations - Equity securities traded on a securities exchange and
securities traded in the over-the-counter market are valued at the last reported
sales price on the day of valuation; other securities for which no sale was
reported on that date, are valued at the last quoted bid price. Corporate and
municipal bonds, asset-backed securities and U.S. government securities are
valued using the last quoted bid price as furnished by an independent pricing
service. Investments in the money market fund and short-term securities with
remaining maturities of sixty days or less at the time of purchase are valued at
amortized cost, which approximates fair market value. Variable rate demand notes
are valued at cost which approximates market value. Investments in open-end
investment companies are valued at net asset value which approximates market
value.
b) Repurchase Agreements - It is the policy of the Funds to require
a custodian bank to take possession, to have legally segregated in the Federal
Reserve Book Entry System, or to have segregated within the custodian bank's
vault, all securities held as collateral under repurchase agreement
transactions. Additionally, procedures have been established by the Funds to
monitor, on a daily basis, the market value of each repurchase agreement's
collateral to ensure that the value of collateral at least equals the repurchase
price to be paid under the repurchase agreement transaction.
The Funds will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Funds' adviser to be creditworthy pursuant to the guidelines and/or
standards approved or established by the Board of Trustees (the "Trustees").
Risks may arise from the potential inability of counterparties to honor the
terms of the repurchase agreement. Accordingly, the Funds could receive less
than the repurchase price on the sale of collateral securities.
<PAGE>
(LOGO) FIRSTAR FUNDS
c) Investment Income, Expenses and Distributions - Interest income and expenses
are accrued daily. Dividend income is recorded on the ex-dividend date. Net
investment income, other than class specific expenses, and realized and
unrealized gains and losses are allocated daily to each class of shares based
upon the relative net asset value of outstanding shares (or the value of
dividend-eligible shares, as appropriate) of each class of shares at the
beginning of the day (after adjusting for the current day's capital share
activity of the respective class). Distributions to shareholders are recorded on
the ex-dividend date.
d) Federal Taxes - It is each Fund's policy to comply with the provisions of the
Internal Revenue Code, (the "Code"), as amended applicable to regulated
investment companies and to distribute to shareholders each year substantially
all of its net investment income and net realized gains. Accordingly, no
provisions for federal taxes are necessary.
The character of distributions made during the year from net investment
income or net realized gain may differ from the characterization for federal
income tax purposes due to differences in the recognition of income, expense and
gain items for financial statement and tax purposes. Where appropriate,
reclassifications between net asset accounts are made for such differences that
are permanent in nature.
At October 31, 2000, the following Funds for federal tax purposes, had
capital loss carryforwards, as noted below, which will reduce the Fund's taxable
income arising from future net realized gains on investments, if any, to the
extent permitted by the Code, and thus will reduce the amount of the
distributions to shareholders which would otherwise be necessary to relieve the
Funds of any liability for federal tax.
TOTAL CAPITAL-LOSS
FUND CARRYFORWARD
---- ------------------
Strategic Income Fund $29,123
Science & Technology Fund 1,429
Pursuant to the Code, the capital loss carryforwards for the Strategic Income
Fund and Science & Technology Fund will expire between 2006 and 2008.
e) When-Issued and Delayed Delivery Transactions - The Funds may engage in
when-issued or delayed delivery transactions. The Funds record when-issued
securities on the trade date and maintain security positions such that
sufficient liquid assets will be available to make payment for the securities
purchased. Securities purchased on a when-issued or delayed delivery basis are
marked to market daily and begin earning interest on the settlement date.
f) Option Contracts Written - The Strategic Income Fund, Large Cap Growth Fund
and Science & Technology Fund may write "covered" call option contracts. All of
the Funds may also write put options. A written option obligates the Funds to
deliver (a call) or to receive (a put) the contract amount upon exercise by the
holder of the option. The principal reason for writing call or put options is to
obtain, through receipt of premiums, a greater current return than would be
realized on underlying securities alone. By writing call options, the Fund may
forego potential gains on the underlying security. By writing a put option, the
Fund risks becoming obligated to purchase the underlying security for more than
its current market price upon exercise. Premiums received from writing options
are recorded as an asset and a corresponding liability and an unrealized gain or
loss is measured by the difference between the current value and the premium
received. For the eleven months ended October 31, 2000, the Strategic Income
Fund, Large Cap Growth Fund and Science & Technology Fund had net realized gain
(loss), in thousands, on options contracts, written and purchased, of $721, $359
and $536, respectively. At October 31, 2000, the Relative Value Fund had no
outstanding options and had no written option activity during the year. The
following is a summary of the Strategic Income Fund, Large Cap Growth Fund and
Science & Technology Fund written options activity (in thousands):
STRATEGIC INCOME FUND
------------------------
NUMBER OF
CONTRACTS PROCEEDS<F1>
----------- -------------
Outstanding at November 30, 1999 400 $ 48
Contracts opened 9,554 2,106
Contracts expired (420) (92)
Contracts exercised (959) (149)
Contracts closed (6,400) (1,444)
----------- -------------
Outstanding at October 31, 2000 2,175 $ 469
=========== =============
LARGECAP GROWTH FUND
------------------------
NUMBER OF
CONTRACTS PROCEEDS<F1>
----------- -------------
Outstanding at November 30, 1999 450 $ 52
Contracts opened 7,245 2,529
Contracts expired (1,565) (187)
Contracts exercised (190) (123)
Contracts closed (4,995) (2,033)
----------- -------------
Outstanding at October 31, 2000 945 $ 238
=========== =============
SCIENCE & TECHNOLOGY FUND
------------------------
NUMBER OF
CONTRACTS PROCEEDS<F1>
----------- -------------
Outstanding at November 30, 1999 165 $ 105
Contracts opened 3,505 3,775
Contracts expired (45) (37)
Contracts exercised (247) (339)
Contracts closed (3,283) (3,251)
----------- -------------
Outstanding at October 31, 2000 95 $ 253
=========== =============
<F1> Represents premium received less commissions paid.
g) Use of Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the amounts of assets, liabilities, revenues and
expenses reported in the financial statements. Actual results could differ from
those estimates.
<PAGE>
(LOGO) FIRSTAR FUNDS
h) Other - Investment and shareholder transactions are accounted for on the
trade date. Discounts and premiums on securities are amortized over the life of
the respective security. Discounts and premiums on securities with put
provisions are amortized to the earlier of the put date or maturity. Realized
gains and losses from investment transactions are determined by comparing the
net sale proceeds to an identified cost basis. Transactions in capital shares at
$1.00 per share for the money market funds are shown in the Statement of Changes
in Net Assets.
3. SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares, in thousands, were as follows:
<TABLE>
<CAPTION>
STRATEGIC RELATIVE LARGE CAP SCIENCE &
INCOME FUND VALUE FUND GROWTH FUND TECHNOLOGY FUND
-------------------- -------------------- -------------------- --------------------
Amount Shares Amount Shares Amount Shares Amount Shares
--------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ELEVEN MONTHS ENDED OCTOBER 31, 2000:
Series A shares(1):
Shares sold $ 39 5 $ 3,059 109 $ 1,271 47 $ 2,073 101
Shares issued to owners in
reinvestment of dividends 1 0 338 12 0 0 0 0
Shares redeemed (15) (2) (14,897) (520) (51) (2) (27) (1)
---------- ---------- --------- -------- --------- --------- -------- ----------
Net increase (decrease) $ 25 3 $(11,500) (399) $ 1,220 45 $ 2,046 100
========== ========== ========= ======== ========= ========= ======== ==========
Series B shares:
Shares sold $ 12,961 1,545 $ 4,374 155 $ 17,835 685 $12,986 656
Shares issued to owners in
reinvestment of dividends 2,817 335 111 4 0 0 0 0
Shares redeemed (45,654) (5,426) (3,112) (110) (15,602) (588) (1,054) (53)
---------- ---------- --------- -------- --------- --------- -------- ----------
Net increase (decrease) $(29,876) (3,546) $ 1,373 49 $ 2,233 97 $11,932 603
========== ========== ========= ======== ========= ========= ======== ==========
Series Institutional shares:
Shares sold $102,464 3,570 $ 65,691 2,513 $86,735 4,314
Shares issued to owners in
reinvestment of dividends 2,986 104 0 0 0 0
Shares redeemed (100,222) (3,504) (28,670) (1,095) (18,229) (895)
--------- -------- --------- --------- -------- ----------
Net increase $ 5,228 170 $ 37,021 1,418 $68,506 3,419
========= ======== ========= ========= ======== ==========
YEAR ENDED NOVEMBER 30, 1999:
Series A shares:
Shares sold $ 8,019 300
Shares issued to owners in
reinvestment of dividends 500 18
Shares redeemed (10,113) (373)
--------- --------
Net increase (decrease) $ (1,594) (55)
========= =========
Series B shares:
Shares sold $ 39,163 4,276 $ 7,217 255 $ 17,247 811 $ 1,197 93
Shares issued to owners in
reinvestment of dividends 3,846 424 100 4 1,586 80 0 0
Shares redeemed (62,151) (6,899) (1,894) (67) (10,956) (509) 0 0
---------- ---------- --------- -------- --------- --------- -------- ----------
Net increase (decrease) $(19,142) (2,199) $ 5,423 192 $ 7,877 382 $ 1,197 93
========== ========== ========= ======== ========= ========= ======== ==========
Series Institutional shares:
Shares sold $107,617 3,776 $ 62,374 2,900 $32,591 2,872
Shares issued to owners in
reinvestment of dividends 3,686 133 1,809 91 0 0
Shares redeemed (73,910) (2,610) (31,190) (1,425) (733) (61)
--------- -------- --------- --------- -------- ----------
Net increase (decrease) $ 37,393 1,299 $ 32,993 1,566 $31,858 2,811
========= ======== ========= ========= ======== ==========
</TABLE>
<F1> Capital share activity of the Series A shares is for the period March 31,
2000 (commencement of operations) to October 31, 2000 for the Strategic
Income Fund, Relative Value Fund and Science & Technology Fund.
<F2> Capital share activity is for the period August 9, 1999 (commencement of
operations) to November 30, 1999 for the Science & Technology Fund.
<PAGE>
(LOGO) FIRSTAR FUNDS
4. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
a) General - Certain officers of Firstar Investment Research & Management
Company, LLC (FIRMCO) and Firstar Mutual Fund Services, LLC("Firstar") serve as
officers of the Trust. FIRMCO and Firstar are related by virtue of each being a
subsidiary of Firstar Corporation.
b) Investment Advisory Fees - FIRMCOserves as the Trust's investment adviser
(the "Adviser"). Prior to April 1, 2000, the Funds were managed by Firstar Bank,
N.A. As part of an internal restructuring of the investment advisory function
within Firstar Corporation, the investment management resources of Firstar Bank,
N.A. have been consolidated with those of FIRMCO. The Adviser receives for its
services an annual investment advisory fee based on a percentage of each Fund's
average daily net assets as follows:
FUND ANNUAL RATE
---- -----------
U.S. Treasury Money Market Fund 0.50%
Ohio Tax-Exempt Money Market Fund 0.55%
Strategic Income Fund 0.95%
Relative Value Fund 0.75%
Large Cap Growth Fund 0.75%
Science & Technology Fund 0.90%
The Adviser may voluntarily choose to waive a portion of its fee. In the case
of the Ohio Tax-Exempt Money Market Fund, the Adviser has waived a portion of
its fee so that the fees actually charged are 0.35% of average daily net assets.
The Adviser may modify or terminate this voluntary waiver of its advisory fees
at any time at its sole discretion.
c) Administrative Fees - Firstar provides the Funds with certain administrative
personnel and services. Firstar receives a fee at an annual rate of 0.11% of the
average daily net assets of each Fund for the period.
d) Distribution Services Fees - Pursuant to the provisions of a distribution
plan adopted in accordance with the Investment Company Act Rule 12b-1 (the
"Plan"), Series A shares of all the Funds and Series B shares of the Strategic
Income Fund, Relative Value Fund and Large Cap Growth Fund may pay to the
distributor of the Funds an amount computed at an annual rate of up to 0.25% of
the average daily net assets to finance any activity which is principally
intended to result in the sale of shares subject to the Plan. Currently, Series
A shares of the U.S. Treasury Money Market Fund are accruing and paying to the
distributor an amount computed at an annual rate of 0.15% of the average daily
net assets. Series B shares of the Science & Technology Fund may accrue and pay
at an annual rate of up to 0.75% of the average daily net assets. Edgewood
Services, Inc. served as the distributor of the Funds through July 31, 2000.
Effective August 1, 2000, Quasar Distributors, LLC became the distributor of the
Funds.
At October 31, 2000, all of the Funds except the Ohio Tax-Exempt Money Market
Fund and Strategic Income Fund are accruing and paying 12b-1 fees.
e) Shareholder Services Fees - Under the terms of the Shareholder Services
Agreement with Firstar Bank, N.A., each Fund may accrue and pay Firstar Bank,
N.A. up to 0.25% of average daily net assets of the Funds for the period. For
the period December 1, 1999 to January 31, 2000, Firstar Bank, N.A. waived 0.15%
of this Shareholder Servicing Fee. Effective February 1, 2000, this waiver was
reduced to 0.09%. The fee paid to Firstar Bank, N.A. is used to finance certain
services for shareholders and to maintain shareholder accounts.Firstar Bank,
N.A. can modify or terminate this limitation at any time at its sole discretion.
f) Transfer and Dividend Disbursing Agent Fees - Firstar serves as transfer and
dividend disbursing agent for the Funds. The fee paid to Firstar is based on the
size, type and number of accounts and transactions made by shareholders.
g) Portfolio Accounting Fees - Firstar is the Funds' accounting services agent.
Firstar is responsible for maintaining the Funds' accounting records for which
it receives a fee. The fee is based on the level of each Fund's average daily
net assets for the period, subject to an annual minimum of $39,000 per Fund,
plus out-of-pocket expenses.
h) Custodian Fees - Firstar Bank, N.A. is the Funds' custodian for which it
receives a fee. The fee is based on the level of each Fund's average daily net
assets for the period, plus out-of-pocket expenses.
<PAGE>
(LOGO) FIRSTAR FUNDS
5. INVESTMENT TRANSACTIONS
Purchases and sales, in thousands, of investments, excluding short-term
securities, for the eleven months ended October 31, 2000, were as follows:
<TABLE>
<CAPTION>
STRATEGIC RELATIVE LARGE CAP SCIENCE &
INCOME FUND VALUE FUND GROWTH FUND TECHNOLOGY FUND
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Purchases:
U.S. Government $ 6,574 - - --
Other 82,208 $ 40,908 $137,831 $165,482
Sales:
U.S. Government $ 6,615 - - --
Other 112,785 $ 36,825 $108,957 $ 85,739
</TABLE>
At October 31, 2000, gross unrealized appreciation and depreciation of
investments for federal tax purposes, in thousands, were as follows:
<TABLE>
<CAPTION>
STRATEGIC RELATIVE LARGE CAP SCIENCE &
INCOME FUND VALUE FUND GROWTH FUND TECHNOLOGY FUND
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Appreciation $ 1,742 $259,887 $150,721 $36,717
(Depreciation) (10,700) (19,365) (16,061) (12,270)
------------- ------------- ------------- -------------
Net unrealized appreciation
(depreciation) on investments $ (8,958) $240,522 $134,660 $24,447
============= ============= ============= =============
</TABLE>
At October 31, 2000, the cost of investments, in thousands, for federal
income tax purposes was $137,928, $285,605, $207,241 and $117,072, respectively.
The difference between cost amounts for financial reporting and tax purposes is
primarily due to timing differences in recognizing gains and losses on security
transactions.
6. DISTRIBUTION TO SHAREHOLDERS (UNAUDITED)
The following Funds hereby designate the following amounts as long-term
capital gain distributions for purposes of the dividends paid deduction:
RELATIVE VALUE FUND GROWTH EQUITY FUND
------------------- -------------------
$3,714,008 $9,262,405
7. CONCENTRATION OF CREDIT RISK
The Ohio Tax-Exempt Money Market Fund invests a substantial proportion of its
assets in municipal obligations issued by the State of Ohio and its political
subdivisions, agencies and public authorities. This Fund is more susceptible to
factors adversely affecting issuers of Ohio municipal obligations than a Fund
that is not concentrated in these issuers to the same extent.
The Ohio Tax-Exempt Money Market Fund had the following concentrations by
municipal funding source at October 31, 2000 (as a percentage of total
investments):
Education/School District 25.84%
Facilities 7.18%
General Obligation 13.09%
Hospital/Medical 29.01%
Industrial/Development 1.34%
Multi Family Housing 2.14%
Pollution Control 6.00%
Transportation/Highway 3.42%
Water & Sewer 11.98%
--------
100.00%
========
<PAGE>
(LOGO) FIRSTAR FUNDS
8. SUBSEQUENT EVENT - CAPITAL GAIN DISTRIBUTIONS (UNAUDITED)
The Relative Value Fund and Large Cap Growth Fund made a distribution of
long-term capital gains of $0.21 and $0.71 per share, respectively. The
distributions were paid on November 21, 2000 to shareholders of record on
November 20, 2000.
9. SUBSEQUENT EVENT - AGREEMENT AND PLAN OF REORGANIZATION (UNAUDITED)
On June 7, 2000, as ratified on July 20, 2000, the Board of Trustees of the
Fund approved an Agreement and Plan of Reorganization (the "Agreement")
providing for the transfer of substantially all of the assets and liabilities of
each of the Trust's portfolios to corresponding portfolios of Firstar Funds,
Inc. ("Firstar Funds") in exchange for shares of such Firstar Funds in a
tax-free reorganization. At a special meeting of shareholders of the Trust held
on November 24, 2000, the shareholders of each of the Trust's portfolios voted
to approve the Agreement. The results of the shareholder meeting are as follows
(no shares represented broker non-votes other than 2,226 shares of the U.S.
Government Income Fund):
<TABLE>
<CAPTION>
Fund For Against Abstain
---- --- ------- -------
<S> <C> <C> <C>
Treasury 3,061,140,107 4,974,967 3,276,121
Tax-Free Money Market 182,173,399 32,746 460,959
Ohio Tax-Free Money Market 60,153,523 0 0
Strategic Income 13,130,869 10,764 66,620
U.S. Government Income 16,086,380 0 0
Insured Tax-Free Bond 15,572,734 0 313
Growth Equity 9,651,548 138,077 58,823
Relative Value 16,515,694 14,132 30,210
Science & Technology 5,975,816 7,692 4,987
Stellar 3,553,064 16,116 52,856
Capital Appreciation 5,227,067 1,490 840
International Equity 5,573,031 0 0
</TABLE>
10. SUBSEQUENT EVENT - PORTFOLIO MERGERS
At meetings held on June 16, 2000 and July 13, 2000, the Board of Directors of
Firstar Funds, Inc. ("Firstar Funds") approved (i) an Agreement and Plan of
Reorganization providing for the acquisition of Mercantile Mutual Funds, Inc.
("Mercantile Funds") by Firstar Funds, (ii) an Agreement and Plan of
Reorganization providing for the acquisition of Firstar Stellar Funds ("Stellar
Funds") by Firstar Funds, and (iii) an Agreement and Plan of Reorganization
providing for the acquisition of Firstar Select Funds ("Select Funds") by
Firstar Funds. The Board of Directors and shareholders of Mercantile Funds
(other than the Mercantile Conning Money Market Portfolio) and Select Funds and
the Board of Trustees and shareholders of Stellar Funds each approved their
applicable agreements.
On November 27, 2000, certain portfolios of the Firstar Funds, including newly
formed shell portfolios (which were organized solely to acquire the assets and
continue the business of certain portfolios of Mercantile Funds, Stellar Funds
and Select Funds) merged with certain portfolios of Mercantile Funds and Stellar
Funds. On December 11, 2000, certain other portfolios of Mercantile Funds (other
than the Mercantile Conning Money Market Portfolio), Stellar Funds and Select
Funds merged into shell portfolios of Firstar Funds. Following is a table (in
thousands) that illustrates the specifics of the mergers.
<PAGE>
(LOGO) FIRSTAR FUND
<TABLE>
<CAPTION>
RETAIL A SHARES
VALUE OF ASSETS ISSUED TO
TRANSFERRED SHAREHOLDERS
BY MERGING OF FUND
MERGING FUND NAME FUND MERGED INTO FUND MERGED INTO
------------------ ------------------ ------------- -------------
<S> <C> <C> <C>
Firstar U.S. Treasury Money Market Firstar Stellar Treasury<F1> $133,616 -
Firstar Emerging Growth Mercantile Small Cap Equity<F1> 198,507 801
Firstar Core International Equity Mercantile International Equity<F1> 37,900 2
Firstar Stellar International Equity Fund <F1> Firstar Global Equity Fund <F2> 69,924 -
Firstar Stellar Tax-Free Money Market Firstar Tax-Exempt Money Market<F1> 227,545 227,560
Firstar Stellar Ohio Tax-Free Money Market<F1> Firstar Ohio Tax-Free Money Market<F2> 83,673 355
Firstar Stellar Insured Tax-Free Bond Mercantile National Municipal Bond<F1> 153,544 15,792
Firstar Stellar U.S. Government Income Mercantile U.S. Government Securities<F1> 148,775 14,341
Firstar Stellar Strategic Income<F1> Firstar Strategic Income<F2> 127,815 3
Firstar Stellar Growth Equity<F1> Firstar Large Cap Growth<F2> 320,713 57
Firstar Stellar Relative Value<F1> Firstar Relative Value<F2> 503,157 1,456
Firstar Stellar Science & Technology<F1> Firstar Science & Technology<F2> 121,342 106
Firstar Stellar Firstar Balanced Income<F1> 74,336 3,249
Firstar Stellar Capital Appreciation Firstar MidCap Index<F1> 67,980 6,166
Firstar Stellar Treasury<F1> Firstar U.S. Treasury Money Market<F2> 4,074,065 2,289,736
Firstar Select REIT<F1><F4> Firstar REIT<F2> 36,907 -
Mercantile Money Market Firstar Money Market<F1> 286,935 286,936
Mercantile Tax-Exempt Money Market Firstar Tax-Exempt Money Market<F1> 110,322 166
Mercantile Treasury Money Market Firstar Stellar Treasury<F1> 159,014 -
Mercantile U.S. Government Securities<F1> Firstar U.S. Government Securities<F2> 62,369 343
Mercantile Intermediate Corporate Bond Firstar Intermediate Bond Market<F1> 33,573 41
Mercantile Bond Index<F3> Firstar Aggregate Bond<F2> 157,850 85
Mercantile Government & Corporate Bond<F1> Firstar Aggregate Bond<F2> 126,076 282
Mercantile Short-Intermediate Municipal Bond Firstar Tax-Exempt Intermediate Bond<F1> 23,607 5
Mercantile Missouri Tax-Exempt Bond<F1> Firstar Missouri Tax-Exempt Bond<F2> 152,395 1,703
Mercantile National Municipal Bond<F1> Firstar National Municipal Bond<F2> 254,136 157
Mercantile Balanced Firstar Balanced Growth<F1> 66,580 285
Mercantile Equity Income<F1> Firstar Equity Income<F2> 51,717 124
Mercantile Equity Index Firstar Equity Index<F1> 100,479 31
Mercantile Growth & Income Equity Firstar Growth & Income<F1> 268,735 973
Mercantile Growth Equity Firstar Growth<F1> 95,738 203
Mercantile Small Cap Equity<F1> Firstar Small Cap Core Equity<F2> 137,018 683
Mercantile Small Cap Equity Index<F1> Firstar Small Cap Index<F2> 76,317 18
Mercantile International Equity Firstar International Growth 131,976 264
</TABLE>
<TABLE>
<CAPTION>
RETAIL B SHARES Y SHARES INSTITUTIONAL
ISSUED TO ISSUED TO SHARES ISSUED
SHAREHOLDERS SHAREHOLDERS TO SHAREHOLDERS EFFECTIVE
OF FUND OF FUND OF FUND DATE OF
MERGING FUND NAME MERGED INTO MERGED INTO MERGED INTO MERGER
------------------- ---------------- ---------------- ----------------- -----------
<S> <C> <C> <C> <C>
Firstar U.S. Treasury Money Market - - $133,616 11/27/2000
Firstar Emerging Growth 31 - 14,504 11/27/2000
Firstar Core International Equity 9 - 2,901 11/27/2000
Firstar Stellar International Equity Fund <F1> - - 5,669 12/11/2000
Firstar Stellar Tax-Free Money Market - - - 11/27/2000
Firstar Stellar Ohio Tax-Free Money Market<F1> - - 83,318 12/11/2000
Firstar Stellar Insured Tax-Free Bond 10 - - 11/27/2000
Firstar Stellar U.S. Government Income 132 - - 11/27/2000
Firstar Stellar Strategic Income<F1> 14,938 - - 12/11/2000
Firstar Stellar Growth Equity<F1> 3,972 - 9,383 12/11/2000
Firstar Stellar Relative Value<F1> 537 - 16,100 12/11/2000
Firstar Stellar Science & Technology<F1> 704 - 6,251 12/11/2000
Firstar Stellar 23 - 3,404 11/27/2000
Firstar Stellar Capital Appreciation 3 - - 11/27/2000
Firstar Stellar Treasury<F1> - - 1,784,330 11/27/2000
Firstar Select REIT<F1><F4> - - 4,085 12/11/2000
Mercantile Money Market - - - 11/27/2000
Mercantile Tax-Exempt Money Market - - 110,168 11/27/2000
Mercantile Treasury Money Market - - 159,016 11/27/2000
Mercantile U.S. Government Securities<F1> 13 501 5,140 11/27/2000
Mercantile Intermediate Corporate Bond - 4 3,263 11/27/2000
Mercantile Bond Index<F3> - 1,912 13,828 11/27/2000
Mercantile Government & Corporate Bond<F1> 65 1,486 10,754 11/27/2000
Mercantile Short-Intermediate Municipal Bond - - 2,322 11/27/2000
Mercantile Missouri Tax-Exempt Bond<F1> 222 - 11,075 12/11/2000
Mercantile National Municipal Bond<F1> 65 - 25,986 11/27/2000
Mercantile Balanced 59 533 1,563 11/27/2000
Mercantile Equity Income<F1> 98 12 7,692 12/11/2000
Mercantile Equity Index - 391 721 11/27/2000
Mercantile Growth & Income Equity 205 1,654 3,786 11/27/2000
Mercantile Growth Equity 56 120 2,276 11/27/2000
Mercantile Small Cap Equity<F1> 103 322 9,166 11/27/2000
Mercantile Small Cap Equity Index<F1> - 1,610 5,489 12/11/2000
Mercantile International Equity 59 1,197 8,647 12/11/2000
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
GAIN/LOSS
OF MERGING
FIRSTAR FUND AT TAX STATUS
MERGING FUND NAME TIME OF MERGER OF TRANSFER NEW FIRSTAR FUND NAME
-------------------------- ----------------- -------------- ------------------------
<S> <C> <C> <C>
Firstar U.S. Treasury Money Market $ - Non-taxable Firstar U.S. Treasury Money Market
Firstar Emerging Growth 18,818 Non-taxable Firstar Small Cap Core Equity
Firstar Core International Equity (1,825) Non-taxable Firstar International Growth
Firstar Stellar International Equity Fund<F1> 1,931 Non-taxable Firstar Global Equity Fund
Firstar Stellar Tax-Free Money Market - Non-taxable Firstar Tax-Exempt Money Market
Firstar Stellar Ohio Tax-Free Money Market<F1> - Non-taxable Firstar Ohio Tax-Exempt Money Market
Firstar Stellar Insured Tax-Free 2,768 Non-taxable Firstar National Municipal Bond
Firstar Stellar U.S. Government Income (370) Non-taxable Firstar U.S. Government Securities
Firstar Stellar Strategic Income<F1> (6,744) Non-taxable Firstar Strategic Income
Firstar Stellar Growth Equity<F1> 118,833 Non-taxable Firstar Large Cap Growth
Firstar Stellar Relative Value<F1> 222,034 Non-taxable Firstar Relative Value
Firstar Stellar Science & Technology<F1> 13,947 Non-taxable Firstar Science & Technology
Firstar Stellar 9,493 Non-taxable Firstar Balanced Income
Firstar Stellar Capital Appreciation 14,099 Non-taxable Firstar MidCap Index
Firstar Stellar Treasury<F1> - Non-taxable Firstar U.S. Treasury Money Market
Firstar Select REIT<F1><F4> 2,994 Non-taxable Firstar REIT
Mercantile Money Market - Non-taxable Firstar Money Market
Mercantile Tax-Exempt Money Market - Non-taxable Firstar Tax-Exempt Money Market
Mercantile Treasury Money Market - Non-taxable Firstar U.S. Treasury Money Market
Mercantile U.S. Government Securities<F1> (503) Non-taxable Firstar U.S. Government Securities
Mercantile Intermediate Corporate Bond (1,411) Non-taxable Firstar Intermediate Bond Market
Mercantile Bond Index<F3> (314) Non-taxable Firstar Aggregate Bond
Mercantile Government & Corporate Bond<F1> (168) Non-taxable Firstar Aggregate Bond
Mercantile Short-Intermediate Municipal Bond (151) Non-taxable Firstar Tax-Exempt Intermediate Bond
Mercantile Missouri Tax-Exempt Bond<F1> 2,351 Non-taxable Firstar Missouri Tax-Exempt Bond
Mercantile National Municipal Bond<F1> 1,301 Non-taxable Firstar National Municipal Bond
Mercantile Balanced (284) Non-taxable Firstar Balanced Growth
Mercantile Equity Income<F1> 16,056 Non-taxable Firstar Equity Income
Mercantile Equity Index 23,220 Non-taxable Firstar Equity Index
Mercantile Growth & Income Equity 50,298 Non-taxable Firstar Growth & Income
Mercantile Growth Equity 40,483 Non-taxable Firstar Large Cap Core Equity
Mercantile Small Cap Equity<F1> 16,326 Non-taxable Firstar Small Cap Core Equity
Mercantile Small Cap Equity Index<F1> 3,685 Non-taxable Firstar Small Cap Index
Mercantile International Equity (1,141) Non-taxable Firstar International Growth
</TABLE>
<F1> Accounting survivor, performance history carries over.
<F2> Shell portfolio.
<F3> Concurrent merger; Mercantile Government & Corporate Bond is accounting
survivor; performance history carries over.
<F4> Financial statements will be presented in a separate report.
<PAGE>
U.S. TREASURY MONEY MARKET FUND
OHIO TAX-EXEMPT MONEY MARKET FUND
STRATEGIC INCOME FUND
RELATIVE VALUE FUND
LARGE CAP GROWTH FUND
SCIENCE & TECHNOLOGY FUND
CHANGE OF ACCOUNTANTS
On October 19, 2000, Arthur Andersen LLP resigned as the independent
auditors. Arthur Andersen LLP's reports on the Funds' financial statements for
the fiscal years ended November 30, 1999 and November 30, 1998 contained no
adverse opinion or disclaimer of opinion nor were they qualified or modified as
to uncertainty, audit scope or accounting principles. During the Funds' fiscal
years ended November 30, 1999 and November 30, 1998 and the period
commencing December 1, 1999 and ending October 19, 2000, (i) there were no
disagreements with Arthur Andersen LLP on any matter of accounting principles or
practices, financial statement disclosure or auditing scope or procedure, which
disagreements, if not resolved to the satisfaction of Arthur Andersen LLP, would
have caused it to make reference to the subject matter of the disagreements in
connection with its reports on the Funds' financial statements for such years,
and (ii) there were no "reportable events" of the kind described in Item
304(a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934, as
amended.
On October 19, 2000, the Fund, by action of its Board of Trustees, engaged
PricewaterhouseCoopers LLP ("PwC") as the independent auditors to audit the
Funds' financial statements for the 11-month fiscal period ending October 31,
2000. During the Funds' fiscal years ended November 30, 1999 and November 30,
1998 and the period commencing December 1, 1999 and ending October 19,
2000, neither the Fund nor anyone on its behalf has consulted PwC on items which
(i) concerned the application of accounting principles to a specified
transaction, either completed or proposed, or the type of audit opinion that
might be rendered on the Funds' financial statements or (ii) concerned the
subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of
Regulation S-K) or reportable events (as described in paragraph (a)(1)(v) of
said Item 304).
<PAGE>
(LOGO) FIRSTAR FUNDS
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
FIRSTAR STELLAR FUNDS:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Ohio Tax-Exempt Money Market
Fund (formerly known as Ohio Tax-Free Money Market Fund), U.S. Treasury Money
Market Fund (formerly known as Treasury Fund), Strategic Income Fund, Large Cap
Growth Fund (formerly known as Growth Equity Fund), Relative Value Fund and
Science & Technology Fund (six of the portfolios comprising Firstar Stellar
Funds, hereafter referred to as the "Funds") at October 31, 2000, the results of
each of their operations, the changes in each of their net assets and the
financial highlights for the year then ended, all in conformity with
accounting principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States of America,
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at October 31, 2000 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion. The financial
statements of the Funds as of November 30, 1999 and for all periods presented
ended at or prior thereto were audited by other independent accountants whose
report dated January 7, 2000 expressed an unqualified opinion on those
statements.
PricewaterhouseCoopers LLP
Milwaukee, Wisconsin
December 29, 2000
<PAGE>
(LOGO) FIRSTAR FUNDS
U.S. GOVERNMENT SECURITIES FUND
AGGREGATE BOND FUND
MISSOURI TAX-EXEMPT BOND FUND
NATIONAL MUNICIPAL BOND FUND
EQUITY INCOME FUND
SMALL CAP CORE EQUITY FUND
SMALL CAP INDEX FUND
INTERNATIONAL GROWTH FUND
NOTES TO THE FINANCIAL STATEMENTS
1. ORGANIZATION
Mercantile Mutual Funds, Inc. (the "Company") is registered under the
Investment Company Act of 1940, (the "1940 Act"), as amended as an open-end
management investment company. The Company, which was formerly known as The ARCH
Fund, Inc., was organized as a Maryland corporation on September 9, 1982. During
2000, the Boards of Directors for Firstar Funds and the Company,
and the Board of Trustees for Firstar Stellar Funds approved a plan to combine
the three fund families together to form a single family - Firstar Funds.
See footnotes 11 and 12.
The investment objectives of the funds (individually referred to as the
"Fund," or collectively as the "Funds") are as follows:
U.S. Government Securities Fund (formerly known as U.S. Government Securities
Portfolio) - To seek a high rate of current income that is consistent with
relative stability of principal. In pursuing its investment objective, the Fund
invests in obligations issued or guaranteed by the U.S. Government, its agencies
or instrumentalities normally having remaining maturities of 1 to 30 years and
repurchase agreements relating to such obligations.
Aggregate Bond Fund (formerly known as Government &Corporate Bond Portfolio)
- To seek the highest level of current income consistent with conservation of
capital. In pursuing its investment objective, the Fund normally invests
substantially all of its assets in a broad range of investment grade debt
securities, including bonds, notes, debentures and securities convertible into
or exchangeable for common stock.
Missouri Tax-Exempt Bond Fund (formerly known as Missouri
Tax-Exempt Bond Portfolio) - To seek as high a level of interest income exempt
from federal income tax as is consistent with conservation of capital. In
pursuing its investment objective, the Fund invests substantially all of its
assets in investment grade Missouri Municipal Obligations, that are also exempt,
to the extent possible, from Missouri income tax.
National Municipal Bond Fund (formerly known as National Municipal Bond
Portfolio) - To seek as high a level of current income exempt from federal
income tax as is consistent with conservation of capital. In pursuing its
investment objective, the Fund normally invests substantially all of its assets
in investment grade Municipal Obligations.
Equity Income Fund (formerly known as Equity Income Portfolio) - To seek to
provide an above-average level of income consistent with long-term capital
appreciation. In pursuing its investment objective, the Fund normally invests
substantially all of its assets in common stock, preferred stock, rights,
warrants and securities convertible into common stock.
Small Cap Core Equity Fund (formerly known as Small CapEquity Portfolio) - To
seek capital appreciation. Current income is an incidental consideration in the
selection of portfolio securities. In pursuing its investment objective, the
Fund normally invests at least 65% of its total assets in common stock of
emerging or established small- to medium-sized companies with above-average
potential for price appreciation.
Small Cap Index Fund (formerly known as Small Cap Equity Index Portfolio) -
To seek to provide investment results that, before the deduction of operating
expenses, approximate the price and yield performance of U.S. common stocks with
smaller stock market capitalizations, as represented by the S&P SmallCap 600
Index. The Fund will invest substantially all of its assets in securities listed
in the S&P SmallCap 600 Index.
International Growth Fund (formerly known as International Equity Portfolio)
- To provide capital growth consistent with reasonable investment risk. The Fund
seeks to achieve this objective by investing principally in foreign equity
securities, most of which will be denominated in foreign currencies.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from these estimates.
a) Securities Valuation - Securities that are traded on a recognized exchange
are valued at the last sale price on the national securities market. Securities
traded only on over-the-counter markets are valued on the basis of market value
when available.Securities for which there were no transactions are valued at the
mean of the most recent bid and asked prices. Securities maturing in 60 days or
less are valued at amortized cost which approximates market value. Securities,
including restricted securities, for which market quotations are not readily
available, are valued at fair market value by the investment adviser (or the
investment sub-adviser) in accordance with guidelines approved by the Fund's
Board of Directors. At October 31, 2000, the Small Cap Core Equity Fund held one
such security which <PAGE>
(LOGO) FIRSTAR FUNDS
represented 0.01% of investments, at value. Quotations of foreign securities in
foreign currency are converted to the U.S. dollar equivalent at the prevailing
exchange rate on the date of conversion. Investments in open-end investment
companies are valued at the respective net asset values as reported by such
companies. The differences between cost and market values of the investments of
the Funds are reflected as unrealized appreciation or depreciation.
b) Repurchase Agreements - The Funds may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, a Fund takes
possession of collateral subject to an obligation of the seller to repurchase,
and the Fund to resell, the obligation at an agreed upon price and time, thereby
determining the yield during the Fund's holding period. This arrangement results
in a fixed rate of return that is not subject to market fluctuations during the
Fund's holding period. The value of the collateral exceeds at all times the
total amount of the repurchase obligation, including accrued interest. In the
event of counterparty default, the Fund has the right to use the collateral to
offset losses incurred. There is potential for loss to the Fund in the event the
Fund is delayed or prevented from exercising its rights to dispose of the
collateral securities, including the risk of a possible decline in the value of
the underlying securities during the period while the Fund seeks to assert its
rights. The Fund's investment adviser (or the investment sub-adviser), acting
under the supervision of the Board of Directors, reviews the value of the
collateral and the creditworthiness of those banks and dealers with which the
Funds enter into repurchase agreements to evaluate potential risks.
c) Securities Transactions and Investment Income - Securities transactions are
recorded on the trade date. Realized gains and losses on investments sold are
recorded on the identified cost basis. Interest income, including accretion of
discount and amortization of premium on investments (where applicable), is
accrued on a daily basis. Dividend income is recorded on the ex-dividend date.
Fund level income, expenses and realized and unrealized gains and losses are
allocated based upon the relative net assets of each class of shares.
d) Foreign Currency Translation - The market value of investment securities and
other assets and liabilities of the International Growth Fund denominated in a
foreign currency are translated into U.S. dollars at the current exchange rate.
Purchases and sales of securities, income receipts and expense payments are
translated into U.S. dollars at the exchange rate on the dates of the
transactions.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of foreign securities, sales of foreign currencies, currency exchange
fluctuations between the trade and settlement dates on securities transactions,
and the difference between the amount of assets and liabilities recorded and the
U.S. dollar equivalent of the amounts actually received or paid. Net unrealized
foreign exchange gains and losses arise from changes in the value of assets and
liabilities, including investments in securities, resulting from changes in
exchange rates.
e) Risks Associated with Foreign Securities and Currencies - Investments in
securities of foreign issuers carry certain risks not ordinarily associated with
investments in securities of domestic issuers. Such risks include future
political and economic developments, and the possible imposition of exchange
controls or other foreign governmental laws and restrictions. In addition, with
respect to certain countries, there is the possibility of expropriation of
assets, confiscatory taxation, political or social instability or diplomatic
developments which could adversely affect investments in those countries.
Certain countries may also impose substantial restrictions on investments in
their capital markets for foreign entities, including restrictions on
investments in issuers of industries deemed sensitive to relevant national
interests. These factors may limit the investment opportunities available to the
International Growth Fund or result in a lack of liquidity and high price
volatility with respect to securities of issuers from developing countries.
f) Foreign Currency Exchange Contracts - The International Growth Fund may enter
into forward foreign currency exchange contracts ("forwards"). A forward is an
agreement between two parties to buy and sell a currency at a set price on a
future date. The market value of the forward fluctuates with changes in currency
exchange rates. The forward is marked-to-market daily and the change in market
value is recorded by the Fund as unrealized appreciation or depreciation. When
the forward is closed, the Fund records a realized gain or loss equal to the
fluctuation in value during the period the forward was opened. The Fund could be
exposed to risk if a counterparty is unable to meet the terms of a forward or if
the value of the currency changes unfavorably.
The International Growth Fund may buy and sell securities denominated in
currencies other than the U.S. dollar, and receive interest, dividends and sale
proceeds in currencies other than the U.S. dollar. The Fund may from time to
time enter into foreign currency exchange transactions to convert to and from
different foreign currencies and to convert foreign currencies to and from the
U.S. dollar. The Fund may enter into currency exchange transactions on a spot
(i.e., cash) basis at the spot rate prevailing in the foreign currency exchange
market, or use forward currency contracts to purchase or sell foreign
currencies. Losses may arise from changes in the value of the foreign currency
or if the counterparties do not perform under the contracts' terms.
g) Securities Lending - To increase return, the U.S. Government Securities,
Aggregate Bond, National Municipal Bond, EquityIncome, Small Cap Core Equity,
Small Cap Index and International Growth Funds may, from time to time, lend
portfolio securities to broker-dealers, banks or institutional borrowers of
securities pursuant to agreements requiring that the loans be continuously
secured by collateral equal in value to at least the market value of the
securities loaned. Collateral for such loans may include cash, securities of the
U.S. Government, or its agencies or instrumentalities, irrevocable letters of
credit, or any combination thereof. The collateral must be valued daily and,
should the market value of the loaned securities increase, the borrower must
furnish additional collateral to the lending Fund. By lending its securities, a
Fund can increase its income by continuing to receive interest or dividends on
the loaned securities as well as either investing the cash collateral in
short-term instruments
<PAGE>
(LOGO) FIRSTAR FUNDS
or obtaining yield in the form of interest paid by the borrower when non-cash
collateral is held by the Fund. Loans are subject to termination by the Fund or
the borrower at any time.The risks to the Funds of lending securities are that
the borrower may fail to provide additional collateral when required, or fail to
return the borrowed securities when due. In addition, if cash collateral
invested by a Fund is less than the amount required to be returned to the
borrower as a result of a decrease in the value of the cash collateral
investments, the Fund must compensate the borrower for the deficiency. At
October 31, 2000, the following Funds had securities with the following market
values on loan (in thousands):
MARKET MARKET
VALUE OF VALUE OF
FUND COLLATERAL LOANED SECURITIES
---- ---------- -----------------
U.S. Government Securities Fund $ 6,463 $ 6,325
Aggregate Bond Fund 21,901 21,451
Equity Income Fund<F1> 4,181 4,196
Small Cap Core Equity Fund 27,104 26,892
International Growth Fund 8,524 8,013
The loaned securities were fully collateralized by cash and U.S. Government
securities.
<F1> As of the close of trading on November 1, 2000, the borrower provided
additional collateral such that the total collateral requirement was met
pursuant to the agreement.
h) Dividends and Distributions to Shareholders - Dividends on each share of the
Funds are determined in the same manner, irrespective of class, except that
shares of each class may bear separate fees under either a Distribution and
Services Plan or an Administrative Services Plan adopted for that class and
enjoy certain exclusive voting rights on matters relating to these fees.It is
the policy of the U.S. Government Securities, Aggregate Bond, Missouri
Tax-Exempt Bond and National Municipal Bond Funds to declare dividends daily
from net investment income and to pay such dividends no later than five business
days after the end of each month. Net investment income for the Equity Income
Fund is declared and paid monthly as a dividend to shareholders of record. The
Small Cap Core Equity, Small Cap Index and International Growth Funds declare
and pay dividends from net investment income quarterly. Net realized capital
gains for each Fund, if any, are distributed at least annually. Additional
distributions of net investment income and capital gains may be made at the
discretion of the Board of Directors in order to comply with certain
distribution requirements of the Internal Revenue Code.
Distributions from net investment income and from net realized capital gains
are determined in accordance with federal income tax regulations which may
differ from generally accepted accounting principals. These "book/tax"
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are reclassified
within the composition of net assets based on their federal tax-basis treatment;
temporary differences do not require reclassification. Distributions to
shareholders which exceed net investment income and net realized capital gains
for financial reporting purposes but not for tax purposes are reported as
distributions in excess of net investment income or net realized gains. To the
extent they exceed net investment income and net realized gains for tax
purposes, they are reported as distributions of capital.
i) Federal Income Taxes - It is the policy of each of the Funds to qualify or to
continue to qualify as a regulated investment company by complying with the
provisions available to registered investment companies, as defined in
applicable sections of the Internal Revenue Code, and to make distributions of
net investment income and net realized capital gains sufficient to relieve it
from all, or substantially all, federal income taxes.
For federal income tax purposes, the following Funds had capital loss
carryforwards as of October 31, 2000, which are available to offset future
capital gains, if any:
FUND AMOUNT EXPIRES
U.S. Government Securities Fund $ 325,257 2004
279,506 2005
89,429 2006
444,492 2007
712,304 2008
-------
$1,850,988
==========
Aggregate Bond Fund $ 820,960 2007
1,528,956 2008
---------
$2,349,916
==========
National Municipal Bond Fund $ 343,362 2007
1,498,733 2008
---------
1,842,095
==========
j) Organization Costs - The Funds bear all costs in connection with their
organization, including the fees and expenses of registering and qualifying
shares for distribution under federal and state securities laws. All such costs
are amortized using the straight-line method over a period of five years from
the date each Fund commenced operations: from November 18, 1996 for the National
Municipal Bond Fund and from February 27, 1997 for the Equity Income Fund. As of
October 31, 2000, all costs were fully amortized for the U.S. Government
Securities, Aggregate Bond, Missouri Tax-Exempt Bond, Small Cap Core Equity and
International Growth Funds.
k) Other - Operating expenses of the Company not directly attributable to a Fund
or to any class of shares of a Fund are prorated among the Funds based on the
relative net assets of each Fund or another appropriate basis. Operating
expenses directly attributable to a Fund or class are charged directly to that
Fund's or class' operations. Fees paid under either a Distribution and Services
Plan or an Administrative Services Plan are borne by the specific class of
shares to which such a Plan applies.
<PAGE>
(LOGO) FIRSTAR FUNDS
3. SHARES OF COMMON STOCK
The U.S. Government Securities Fund, Aggregate Bond Fund, Equity Income Fund,
Small Cap Core Equity Fund and International Growth Fund each offer four classes
of shares (Series A, Series B, Series Institutional and Series Y - formerly
known as Investor A, Investor B, Trust and Institutional Shares, respectively);
the Missouri Tax-Exempt Bond Fund and National Municipal Bond Fund each offer
three classes of shares (Series A, Series B and Series Institutional - formerly
known as Investor A, Investor B and Trust Shares, respectively); and the Small
Cap Index Fund offers three classes of shares (Series A, Series Institutional
and Series Y - formerly known as Investor A, Trust and Institutional Shares,
respectively).
Series A shares are subject to an initial sales charge imposed at the time of
purchase, in accordance with the Funds' prospectus. The maximum sales charge on
Series A shares in the U.S. Government Securities Fund, Aggregate Bond Fund,
Missouri Tax-Exempt Bond Fund and National Municipal Bond Fund is 4.00% of the
offering price or 4.17% of the net asset value. The maximum sales charge on
Series A shares in the Equity Income Fund, Small Cap Core Equity Fund, Small Cap
Index Fund and International Growth Fund is 5.50% of the offering price or 5.82%
of the net asset value. The Series B shares are subject to a contingent deferred
sales charge at the time of redemption, in accordance with the Funds'
prospectus. The maximum sales charge is as follows:
CDSC
(PERCENTAGE OF DOLLAR
NUMBER OF YEARS AMOUNT SUBJECT TO
ELAPSED SINCE PURCHASE THE CHARGE)
---------------------- -----------
One or less 5.0%
More than one, but less than two 4.0%
Two, but less than three 3.0%
Three, but less than four 3.0%
Four, but less than five 2.0%
Five, and up to and including six 1.0%
More than six None
Each class of shares in a Fund has identical rights and privileges except
with respect to the fees that may be paid by a class under either a Distribution
and Services Plan or an Administrative Services Plan, expenses allocable
exclusively to each class of shares, voting rights on matters affecting a single
class of shares, the exchange privilege of each class of shares, and the
automatic conversion of Retail B Shares of a Fund into Retail A Shares of that
Fund six years after purchase.
<PAGE>
(LOGO) FIRSTAR FUNDS
4. CAPITAL SHARE TRANSACTIONS
As of October 31, 2000, the Fund's Articles of Incorporation authorize the
Board of Directors, in its discretion, to issue up to twenty billion full and
fractional shares of capital stock, $.001 par value per share, and to classify
or reclassify any unissued shares of the Fund into one or more additional
classes. Transactions in Fund shares, in thousands, were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT AGGREGATE MISSOURI TAX-EXEMPT
SECURITIES FUND BOND FUND BOND FUND
--------------- --------- ---------
For the eleven For the For the eleven For the For the eleven For the
months ended year ended months ended year ended months ended year ended
October 31, November 30, October 31, November 30, October 31, November 30,
2000 1999 2000 1999 2000 1999
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Retail A shares:
Proceeds from shares issued $ 49 $1,212 $ 16 $ 579 $ 775 $ 2,825
Dividends reinvested 168 205 137 247 544 666
Cost of shares redeemed (1,219) (1,271) (1,090) (1,513) (3,066) (4,348)
------ ------ ------ ------ ------ ------
Retail A shares capital transactions (1,002) 146 (937) (687) (1,747) (857)
------- ------ -------- ------ -------- -------
Retail B shares:
Proceeds from shares issued 8 152 44 392 109 1,418
Dividends reinvested 8 10 24 41 72 79
Cost of shares redeemed (158) (20) (135) (318) (1,065) (239)
------- ------ -------- ------- ------- -------
Retail B shares capital transactions (142) $ 142 (67) 115 $ (884) $ 1,258
------- ------ -------- ------ ------ -------
Institutional shares:
Proceeds from shares issued 18,386 26,458 12,159 16,967 41,873 40,114
Dividends reinvested 286 1,725 1,758 5,443 328 297
Cost of shares redeemed (37,574) (45,843) (34,092) (60,271) (29,598) (16,079)
------- ------- ------- ------- ------- -------
Institutional shares capital transactions (18,902) (17,660) $(20,175) (37,861) 12,603 24,332
-------- --------- -------- --------- --------- --------
Y shares:
Proceeds from shares issued 2,581 4,881 14,507 2,446
Dividends reinvested 370 308 503 867
Cost of shares redeemed (6,384) (2,522) (5,177) (18,511)
------ ------ ------ -------
Y shares capital transactions (3,433) 2,667 9,833 (15,198)
-------- ------- -------- ---------
Total net increase from
capital transactions $(23,479) $ (14,705) $(11,346) $ (53,631) $ 9,972 $ 24,733
======== ========= ======== ========= ========= ========
SHARE TRANSACTIONS:
Retail A shares:
Issued 5 114 2 57 68 237
Reinvested 16 20 14 24 48 56
Redeemed (119) (121) (112) (147) (272) (371)
---- ---- ---- ---- ---- ----
Change in Retail A shares (98) 13 (96) (66) (156) (78)
---- ---- ---- ---- ---- ---
Retail B shares:
Issued 1 14 4 38 10 118
Reinvested 1 1 3 4 6 7
Redeemed (16) (2) (14) (31) (94) (21)
---- ---- ---- ---- ---- ---
Change in Retail B shares (14) 13 (7) 11 (78) 104
---- ---- ---- ---- ---- ---
Institutional shares:
Issued 1,790 2,515 1,246 1,669 3,713 3,426
Reinvested 28 163 179 527 29 25
Redeemed (3,662) (4,392) (3,480) (6,020) (2,633) (1,384)
------ ------ ------ ------ ------ ------
Change in Institutional shares (1,844) (1,714) (2,055) (3,824) 1,109 2,067
------ ------ ------ ------ ----- -----
Y shares:
Issued 253 470 1,479 239
Reinvested 36 29 51 83
Redeemed (627) (240) (525) (1,779)
---- ---- ---- ------
Change in Y shares (338) 259 1,005 (1,457)
---- --- ----- ------
Total net increase from share transactions (2,294) (1,429) (1,153) (5,336) 875 2,093
====== ====== ====== ====== === =====
</TABLE>
<PAGE>
(LOGO) FIRSTAR FUNDS
4. CAPITAL SHARE TRANSACTIONS (CONT.)
<TABLE>
<CAPTION>
NATIONAL MUNICIPAL EQUITY INCOME SMALL CAP CORE
BOND FUND FUND EQUITY FUND
--------- ---- -----------
For the eleven For the For the eleven For the For the eleven For the
months ended year ended months ended year ended months ended year ended
October 31, November 30, October 31, November 30, October 31, November 30,
2000 1999 2000 1999 2000 1999
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Retail A shares:
Proceeds from shares issued $ 187 $ 2,102 $ 7 $ 651 $ 408 $ 748
Dividends reinvested 26 29 156 242 166 48
Cost of shares redeemed (312) (1,549) (463) (861) (2,170) (5,010)
---- ------ ---- ---- ------ ------
Retail A shares capital transactions (99) 582 (300) $ 32 (1,596) (4,214)
---------- --------- ------- ---- -------- ---------
Retail B shares:
Proceeds from shares issued 1 409 16 384 $ 150 $ 75
Dividends reinvested 17 26 104 95 20 6
Cost of shares redeemed (133) (123) (130) (97) (206) (442)
---- ---- ---- --- ---- ----
Retail B shares capital transactions (115) 312 (10) 382 (36) (361)
---------- --------- ------ ------ ------- ------
Institutional shares:
Proceeds from shares issued 19,905 23,403 3,243 38,631 $ 16,703 $ 24,124
Dividends reinvested 32 66 6,101 8,348 1,996 459
Cost of shares redeemed (100,354) (50,294) (47,221) (35,990) (27,051) (60,237)
-------- ------- ------- ------- ------- -------
Institutional shares capital transactions (80,417) (26,825) (37,877) 10,989 (8,352) (35,654)
--------- -------- -------- --------- --------- ---------
Y shares:
Proceeds from shares issued 67 98 4,408 2,214
Dividends reinvested 15 10 51 108
Cost of shares redeemed (65) (37) (3,229) (26,973)
--- --- ------ -------
Y shares capital transactions 17 71 1,230 (24,651)
----- ----- -------- ---------
Total net increase from
capital transactions $ (80,631) $(25,931) $(38,170) $ 11,474 $ (8,754) $(64,880)
========= ======== ======== ========= ======== ========
SHARE TRANSACTIONS:
Retail A shares:
Issued 20 210 1 80 22 61
Reinvested 3 3 23 31 12 4
Redeemed (34) (159) (75) (107) (134) (401)
--- ---- --- ---- ---- ----
Change in Retail A shares (11) 54 (51) 4 (100) (336)
--- -- --- - ---- ----
Retail B shares:
Issued 0 40 235 47 8 6
Reinvested 2 3 889 12 2 0
Redeemed (14) (13) (1,127) (12) (13) (36)
--- --- ------ --- --- ---
Change in Retail B shares (12) 30 (3) 47 (3) (30)
--- -- -- -- -- ---
Institutional shares:
Issued 2,094 2,358 277 5,817 1,004 1,863
Reinvested 3 7 40 1,065 137 40
Redeemed (10,705) (5,193) (6,067) (4,429) (1,563) (4,752)
------- ------ ------ ------ ------ ------
Change in Institutional shares (8,608) (2,828) (5,750) 2,453 (422) (2,849)
====== ====== ====== ===== ==== ======
Y shares:
Issued 10 12 267 178
Reinvested 2 1 4 9
Redeemed (10) (4) (195) (2,128)
--- --- ---- ------
Change in Y shares 2 9 76 (1,941)
--- --- ---- ------
Total net increase from share transactions (8,631) (2,744) (5,802) 2,513 (449) (5,156)
====== ====== ====== ===== ==== ======
</TABLE>
<PAGE>
(LOGO) FIRSTAR FUNDS
4. CAPITAL SHARE TRANSACTIONS (CONT.)
<TABLE>
<CAPTION>
SMALL CAP INTERNATIONAL
INDEX FUND GROWTH FUND
---------- -----------
For the eleven For the For the eleven For the
months ended year ended months ended year ended
October 31, November 30, October 31, November 30,
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Retail A shares:
Proceeds from shares issued $ 33 $ 140 $ 474 $ 373
Dividends reinvested 2 0 346 180
Cost of shares redeemed (22) (10) (671) (637)
--- --- ---- ----
Retail A shares capital transactions 13 130 149 (84)
------- ------- ----- ------
Retail B shares:
Proceeds from shares issued 128 97
Dividends reinvested 68 34
Cost of shares redeemed (144) (147)
---- ----
Retail B shares capital transactions 52 (16)
-------- -------
Institutional shares:
Proceeds from shares issued 6,872 42,759 56,458 19,316
Dividends reinvested 703 13 5,492 1,910
Cost of shares redeemed (1,872) (211) (16,025) (7,659)
------ ---- ------- ------
Institutional shares capital transactions 5,703 42,561 45,925 13,567
------- ------- ------- --------
Y shares:
Proceeds from shares issued 7,421 $29,376 16,446 2,901
Dividends reinvested 208 6 1,080 487
Cost of shares redeemed (7,286) (14,109) (10,109) (2,626)
------ ------- ------- ------
Y shares capital transactions 343 15,273 7,417 762
------- ------- -------- ------
Total net increase from capital transactions $ 6,059 $57,964 $ 53,543 $ 14,229
======= ======= ======== =========
SHARE TRANSACTIONS:
Retail A shares:
Issued 3 14 27 27
Reinvested 0 0 21 15
Redeemed (2) (1) (38) (48)
-- -- --- ---
Change in Retail A shares 1 13 10 (6)
- -- -- --
Retail B shares:
Issued 8 7
Reinvested 4 3
Redeemed (8) (11)
-- ---
Change in Retail B shares 4 (1)
- --
Institutional shares:
Issued 611 4,466 3,294 1,262
Reinvested 67 2 332 153
Redeemed (162) (21) (926) (555)
---- --- ---- ----
Change in Institutional shares 516 4,447 2,700 860
--- ----- ----- ---
Y shares:
Issued 628 2,969 975 208
Reinvested 20 1 66 40
Redeemed (638) (1,499) (606) (191)
---- ------ ---- ----
Change in Y shares 10 1,471 435 57
-- ----- --- --
Total net increase from share transactions 527 5,931 3,149 910
=== ===== ===== ===
</TABLE>
<PAGE>
(LOGO) FIRSTAR FUNDS
5. INVESTMENT TRANSACTIONS
Purchases and sales, in thousands, of investments, excluding short-term
securities, for the eleven months ended October 31, 2000, were as follows:
<TABLE>
<CAPTION>
U.S. MISSOURI NATIONAL
GOVERNMENT AGGREGATE TAX-EXEMPT MUNICIPAL
SECURITIES FUND BOND FUND BOND FUND BOND FUND
--------------- --------- --------- ---------
<S> <C> <C> <C> <C>
Purchases:
U.S. Government $ 4,731 $ 14,895 - --
Other 10,106 16,529 $11,309 $ 9,807
Sales:
U.S. Government $11,994 $ 21,212 - --
Other 23,119 20,399 $ 3,421 $ 90,524
EQUITY SMALL CAP
INCOME CORE EQUITY SMALL CAP INTERNATIONAL
FUND FUND INDEX FUND GROWTH FUND
---- ---- ---------- -----------
Purchases:
U.S. Government - - - --
Other $19,416 $124,999 $26,922 $161,964
Sales:
U.S. Government - - - --
Other $71,190 $150,604 $22,103 $116,532
</TABLE>
At October 31, 2000, gross unrealized appreciation and depreciation of
investments for federal tax purposes, in thousands, were as follows:
<TABLE>
<CAPTION>
U.S. MISSOURI NATIONAL
GOVERNMENT AGGREGATE TAX-EXEMPT MUNICIPAL
SECURITIES FUND BOND FUND BOND FUND BOND FUND
--------------- --------- --------- ---------
<S> <C> <C> <C> <C>
Appreciation $ 115 $ 2,858 $ 2,226 $ 3,677
(Depreciation) (812) (3,519) (1,965) (1,963)
---- ------ ------ ------
Net unrealized appreciation
(depreciation) on investments $ (697) $ (661) $ 261 $ 1,714
====== ====== ====== =======
Cost of investments for federal
income tax purposes $63,651 $125,667 $149,888 $251,457
EQUITY SMALL CAP
INCOME CORE EQUITY SMALL CAP INTERNATIONAL
FUND FUND INDEX FUND GROWTH FUND
---- ---- ---------- -----------
Appreciation $16,604 $33,298 $ 19,513 $ 14,545
(Depreciation) (1,015) (10,842) (11,327) (10,672)
------ ------- ------- -------
Net unrealized appreciation
on investments $15,589 $ 22,456 $ 8,186 $ 3,873
======= ======== ========= =======
Cost of investments for federal
income tax purposes $38,445 $126,723 $ 70,916 $139,515
</TABLE>
<PAGE>
(LOGO) FIRSTAR FUNDS
6. RELATED PARTY TRANSACTIONS
Investment advisory services are provided to the Fund by Firstar Investment
Research Management Company, LLC ("FIRMCO"), a wholly-owned subsidiary of
Firstar Corporation, a banking and financial services organization. On March 1,
2000, FIRMCO acquired all of the assets and liabilities of the Fund's former
adviser, Mississippi Valley Advisors, Inc., a wholly-owned subsidiary of
Mercantile Trust Company National Association ("Mercantile") and an indirect
wholly-owned subsidiary of Firstar Corporation. Under the terms of its
investment advisory agreement, FIRMCO is entitled to receive fees from each Fund
based on a percentage of the average daily net assets of that Fund. FIRMCO has
retained Clay Finlay Inc. ("Clay Finlay") as sub-adviser for the International
Growth Fund. Firstar serves as custodian for the Fund. Under the terms of the
custodian agreement, Firstar receives fees computed on the average daily net
assets of each Fund at an annual rate of 0.05% for the U.S. Government
Securities, Aggregate Bond, Missouri Tax-Exempt Bond, National Municipal Bond,
Equity Income, Small Cap Core Equity and Small Cap Index Funds and at an annual
rate of 0.19% of the first $50 million of the International Growth Fund's
average daily net assets, 0.175% of the next $50 million of average daily net
assets, 0.15% of the next $150 million of average daily net assets and 0.125% of
the average daily net assets over $250 million.
Firstar Mutual Fund Services, LLC ("FMFS") and BISYS Fund Services Ohio, Inc.
("BISYS Ohio") serve as the co-administrators for theFund. Certain officers of
the Fund are affiliated with FMFSand BISYS Ohio. Such officers are paid no fees
directly by the Funds for serving as officers of the Fund. Under the terms of
the co-administration agreement, the co-administrators receive fees computed at
an annual rate of 0.20% of the average daily net assets of each Fund. FMFSalso
serves as transfer agent to the Fund. BISYS Fund Services Limited Partnership
d/b/a BISYSFund Services ("BISYS") serves as the Fund's distributor and is
entitled to receive commissions on sales of Retail A Shares and Retail B Shares
of the variable net asset value Funds.
With respect to Retail A Shares, the Funds have adopted a Distribution and
Services Plan (the "Plan") pursuant to Rule 12b-1 under the 1940 Act. Under the
Plan, each Fund may pay (i) up to an annual rate of 0.10% of the average daily
net assets of each Fund's outstanding Retail A Shares to BISYSor another
organization for distribution services performed and expenses assumed relating
to the Fund's Retail A Shares and (ii) up to an annual rate of 0.20% of the
average daily net assets of each Fund's outstanding Retail A Shares to
broker-dealers and other organizations for shareholder administrative services
provided pursuant to servicing agreements under the Plan.
Similarly, with respect to Retail B Shares, the Fund has adopted a
Distribution and Services Plan (the "Plan B") pursuant to Rule 12b-1 under the
1940 Act. Under Plan B, a Fund may pay (i) up to an annual rate of 0.75% of the
average daily net assets of the Fund's outstanding Retail B Shares to BISYS or
another organization for distribution services performed and expenses assumed
relating to the Fund's Retail B Shares and (ii) up to an annual rate of 0.25% of
the average daily net assets of the Fund's Retail B Shares to broker-dealers and
other organizations for shareholder administrative services provided pursuant to
servicing agreements under Plan B.
With respect to Institutional and Y Shares, the Funds have adopted separate
Administrative Services Plans pursuant to which a Fund may pay banks and other
financial institutions, which have agreed to provide certain shareholder
administrative services for their clients or account holders, servicing fees of
up to an annual rate of 0.30% of the average daily net assets of the Funds
outstanding Institutional or Y Shares.
<PAGE>
(LOGO) FIRSTAR FUNDS
Fees may be voluntarily reduced to assist the Funds in maintaining more
competitive expense ratios. Information regarding fee reduction transactions is
as follows for the period ended October 31, 2000 (in thousands):
<TABLE>
<CAPTION>
MISSOURI
U.S. GOVERNMENT AGGREGATE TAX-EXEMPT
SECURITIES FUND BOND FUND BOND FUND
--------------- --------- ---------
<S> <C> <C> <C>
INVESTMENT ADVISORY FEES
Annual fee before voluntary fee reductions 0.45% 0.45% 0.45%
Voluntary Fee Reductions - - --
ADMINISTRATION FEES
Voluntary Fee Reductions $ 61 $117 $129
ADMINISTRATIVE SERVICES FEES - INSTITUTIONAL SHARES
Voluntary Fee Reductions $151 $316 $321
CUSTODY FEES
Voluntary Fee Reductions $ 6 $ 12 $ 13
NATIONAL EQUITY SMALL CAP
MUNICIPAL INCOME CORE EQUITY
BOND FUND FUND FUND
--------- ---- ----
INVESTMENT ADVISORY FEES
Annual fee before voluntary fee reductions 0.55% 0.75% 0.75%
Voluntary Fee Reductions - - --
ADMINISTRATION FEES
Voluntary Fee Reductions $248 $ 55 $137
ADMINISTRATIVE SERVICES FEES - INSTITUTIONAL SHARES
Voluntary Fee Reductions $738 $162 $372
CUSTODY FEES
Voluntary Fee Reductions $ 25 - $ 14
SMALL CAP INTERNATIONAL
INDEX FUND GROWTH FUND
---------- -----------
INVESTMENT ADVISORY FEES
Annual fee before voluntary fee reductions 0.40% 1.00%<F1>
Voluntary Fee Reductions - $ 68
ADMINISTRATION FEES
Voluntary Fee Reductions $ 65 $123
ADMINISTRATIVE SERVICES FEES - INSTITUTIONAL SHARES
Voluntary Fee Reductions $152 $312
CUSTODY FEES
Voluntary Fee Reductions - $ 26
</TABLE>
<F1> Clay Finlay, as Sub-Adviser to the International Growth Fund, receives a
fee, payable by FIRMCO. The fee is computed daily and paid monthly at the
following annual rates (as a percentage of the Fund's average daily net assets):
0.75% of the first $50 million of the Fund's average daily net assets; plus
0.50% of the next $50 million of average daily net assets; plus 0.25% of average
net assets in excess of $100 million.
7. RESULTS OF SPECIAL MEETING OF SHAREHOLDERS OF THE INTERNATIONAL GROWTH FUND
(UNAUDITED)
At a Special Meeting of Shareholders of thee International Growth Fund held on
October 13, 2000, shareholders of the Fund approved a new sub-advisory agreement
between Firstar Investment Research & Management Company, LLC and Clay Finlay
Inc. ("Clay Finlay") with respect to the Fund in connection with the
acquisition of Clay Finlay's parent company, United Asset Management
Corporation, by Old Mutual plc.
The results of the shareholder vote were as follows:
FOR AGAINST ABSTAIN
--- ------- -------
7,846,179 890 1,966
<PAGE>
(LOGO) FIRSTAR FUNDS
8. CONCENTRATION OF CREDIT RISK
The Missouri Tax-Exempt Bond Fund invests a substantial proportion of its
assets in municipal obligations issued by the State of Missouri and its
political subdivisions, agencies and public authorities. This Fund is more
susceptible to factors adversely affecting issuers of Missouri Municipal
Obligations than a fund that is not concentrated in these issuers to the same
extent.
The Missouri Tax-Exempt Bond Fund and National Municipal Bond Fund had the
following concentrations by municipal funding source at October 31, 2000 (as a
percentage of total investments):
MISSOURI NATIONAL
TAX-EXEMPT MUNICIPAL
BOND BOND
FUND FUND
---- ----
Education/School District 25.20% 16.10%
Electric/Power 1.41% --
Facilities 0.72% 2.00%
Finance Agency 2.15% 0.42%
General Obligation 17.56% 36.07%
Hospital/Medical 24.48% 5.18%
Housing Development 1.03% --
Multi Family Housing 1.01% --
Pollution Control 11.00% 6.71%
Public Buildings 7.46% 2.97%
Transportation/Highway - 19.46%
Utilities - 4.38%
Water & Sewer 7.98% 6.71%
---- ----
100.00% 100.00%
====== ======
<PAGE>
(LOGO) FIRSTAR FUNDS
9. DISTRIBUTION TO SHAREHOLDERS (UNAUDITED)
The following Funds hereby designate the following amounts as long-term
capital gain distributions for purposes of the dividends paid deduction:
<TABLE>
<CAPTION>
MISSOURI EQUITY SMALL CAP SMALL CAP INTERNATIONAL
TAX-EXEMPT INCOME CORE EQUITY INDEX GROWTH
BOND FUND FUND FUND FUND FUND
--------- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
$58,715 $2,914,202 $27,263,344 $3,416,533 $12,073,799
</TABLE>
The following Funds hereby designate the following amounts as
short-term capital gain distributions for purposes of the dividends paid
deduction:
SMALL CAP SMALL CAP INTERNATIONAL
CORE EQUITY INDEX GROWTH
FUND FUND FUND
---- ---- ----
$3,725,764 $3,391,954 $1,685,030
10. SUBSEQUENT EVENT - CAPITAL GAIN DISTRIBUTIONS (UNAUDITED)
The Equity Income Fund, Small Cap Core Equity Fund, Small Cap Index Fund and
International Growth Fund made a distribution of long-term capital gains of
$0.38, $3.27, $0.53 and $1.28 per share, respectively. The Missouri Tax-Exempt
Bond Fund made a distribution of long-term capital gains of less than $0.005 per
share. The distributions were paid on November 21, 2000 to shareholders of
record on November 20, 2000.
The Small Cap Core Equity Fund, Small Cap Index Fund and International Growth
Fund made a distribution of short-term capital gains of $0.45, $0.52 and $0.18
per share, respectively. The distributions were paid on November 21, 2000 to
shareholders of record on November 20, 2000.
<PAGE>
(LOGO) FIRSTAR FUNDS
11. SUBSEQUENT EVENT - AGREEMENT AND PLAN OF REORGANIZATION (UNAUDITED)
On June 6, 2000, as ratified on July 11, 2000, the Board of Directors of the
Company approved an Agreement and Plan of Reorganization (the "Agreement")
providing for the transfer of substantially all of the assets and liabilities of
each of the Company's portfolios to corresponding portfolios of Firstar Funds,
Inc. ("Firstar Funds") in exchange for shares of such Firstar Funds in a
tax-free reorganization. At a special meeting of shareholders of the Company
held on November 24, 2000, the shareholders of each of the Company's portfolios
(other than the Conning Money Market Portfolio which failed to achieve a quorum)
voted to approve the Agreement. The results of the shareholder meeting are as
follows (no shares represented broker non-votes):
<TABLE>
<CAPTION>
FUND FOR AGAINST ABSTAIN
---- --- ------- -------
<S> <C> <C> <C>
Treasury Money Market 83,757,247 1,851,216 0
Money Market 169,939,602 87,658,959 114
Tax-Exempt Money Market 86,551,315 12,989,249 0
U.S. Government Securities 5,930,865 6,900 7,568
Intermediate Corporate Bond 3,786,926 0 0
Bond Index 14,012,731 2,343,645 12,983
Government & Corporate Bond 12,557,196 12,048 10,797
Short-Intermediate Municipal 2,510,759 2,536 0
Missouri Tax-Exempt Bond 11,163,526 7,373 9,082
National Municipal Bond 25,684,281 9,156 12,090
Balanced 6,277,700 9,935 2,400
Equity Income 7,797,463 697 2,862
Equity Index 5,266,238 345 249
Growth & Income Equity 15,951,556 29,050 42,453
Growth Equity 4,978,799 5,926 2,255
Small Cap Equity 7,363,438 5,335 8,525
Small Cap Equity Index 6,411,707 0 0
International Equity 8,896,307 3,304 1,512
</TABLE>
The reorganization with respect to the above portfolios of the Fund was
completed on December 11, 2000.
<PAGE>
(LOGO) FIRSTAR FUNDS
12. SUBSEQUENT EVENTS - PORTFOLIO MERGERS
At meetings held on June 16, 2000 and July 13, 2000, the Board of Directors
of Firstar Funds, Inc. ("Firstar Funds") approved (i) an Agreement and Plan of
Reorganization providing for the acquisition of Mercantile Mutual Funds, Inc.
("Mercantile Funds") by Firstar Funds, (ii) an Agreement and Plan of
Reorganization providing for the acquisition of Firstar Stellar Funds ("Stellar
Funds") by Firstar Funds, and (iii) an Agreement and Plan of Reorganization
providing for the acquisition of Firstar Select Funds ("Select Funds") by
Firstar Funds. The Board of Directors and shareholders of Mercantile Funds
(other than the Mercantile Conning Money Market Portfolio) and Select Funds and
the Board of Trustees and shareholders of Stellar Funds each approved their
applicable agreements.
On November 27, 2000, certain portfolios of the Firstar Funds, including
newly formed shell portfolios (which were organized solely to acquire the assets
and continue the business of certain portfolios of Mercantile Funds, Stellar
Funds and Select Funds) merged with certain portfolios of Mercantile Funds and
Stellar Funds. On December 11, 2000, certain other portfolios of Mercantile
Funds (other than the Mercantile Conning Money Market Portfolio), Stellar Funds
and Select Funds merged into shell portfolios of Firstar Funds. Below is a table
(in thousands) that illustrates the specifics of the mergers.
<PAGE>
(LOGO) FIRSTAR FUNDS
<TABLE>
<CAPTION>
RETAIL A SHARES
VALUE OF ASSETS ISSUED TO
TRANSFERRED SHAREHOLDERS
BY MERGING OF FUND
MERGING FUND NAME FUND MERGED INTO FUND MERGED INTO
------------------ ------------------ ------------- -------------
<S> <C> <C> <C>
Firstar U.S. Treasury Money Market Firstar Stellar Treasury<F1> $133,616 -
Firstar Emerging Growth Mercantile Small Cap Equity<F1> 198,507 801
Firstar Core International Equity Mercantile International Equity<F1> 37,900 2
Firstar Stellar International Equity Fund <F1> Firstar Global Equity Fund <F2> 69,924 -
Firstar Stellar Tax-Free Money Market Firstar Tax-Exempt Money Market<F1> 227,545 227,560
Firstar Stellar Ohio Tax-Free Money Market<F1> Firstar Ohio Tax-Free Money Market<F2> 83,673 355
Firstar Stellar Insured Tax-Free Bond Mercantile National Municipal Bond<F1> 153,544 15,792
Firstar Stellar U.S. Government Income Mercantile U.S. Government Securities<F1> 148,775 14,341
Firstar Stellar Strategic Income<F1> Firstar Strategic Income<F2> 127,815 3
Firstar Stellar Growth Equity<F1> Firstar Large Cap Growth<F2> 320,713 57
Firstar Stellar Relative Value<F1> Firstar Relative Value<F2> 503,157 1,456
Firstar Stellar Science & Technology<F1> Firstar Science & Technology<F2> 121,342 106
Firstar Stellar Firstar Balanced Income<F1> 74,336 3,249
Firstar Stellar Capital Appreciation Firstar MidCap Index<F1> 67,980 6,166
Firstar Stellar Treasury<F1> Firstar U.S. Treasury Money Market<F2> 4,074,065 2,289,736
Firstar Select REIT<F1><F4> Firstar REIT<F2> 36,907 -
Mercantile Money Market Firstar Money Market<F1> 286,935 286,936
Mercantile Tax-Exempt Money Market Firstar Tax-Exempt Money Market<F1> 110,322 166
Mercantile Treasury Money Market Firstar Stellar Treasury<F1> 159,014 -
Mercantile U.S. Government Securities<F1> Firstar U.S. Government Securities<F2> 62,369 343
Mercantile Intermediate Corporate Bond Firstar Intermediate Bond Market<F1> 33,573 41
Mercantile Bond Index<F3> Firstar Aggregate Bond<F2> 157,850 85
Mercantile Government & Corporate Bond<F1> Firstar Aggregate Bond<F2> 126,076 282
Mercantile Short-Intermediate Municipal Bond Firstar Tax-Exempt Intermediate Bond<F1> 23,607 5
Mercantile Missouri Tax-Exempt Bond<F1> Firstar Missouri Tax-Exempt Bond<F2> 152,395 1,703
Mercantile National Municipal Bond<F1> Firstar National Municipal Bond<F2> 254,136 157
Mercantile Balanced Firstar Balanced Growth<F1> 66,580 285
Mercantile Equity Income<F1> Firstar Equity Income<F2> 51,717 124
Mercantile Equity Index Firstar Equity Index<F1> 100,479 31
Mercantile Growth & Income Equity Firstar Growth & Income<F1> 268,735 973
Mercantile Growth Equity Firstar Growth<F1> 95,738 203
Mercantile Small Cap Equity<F1> Firstar Small Cap Core Equity<F2> 137,018 683
Mercantile Small Cap Equity Index<F1> Firstar Small Cap Index<F2> 76,317 18
Mercantile International Equity Firstar International Growth 131,976 264
</TABLE>
<TABLE>
<CAPTION>
RETAIL B SHARES Y SHARES INSTITUTIONAL
ISSUED TO ISSUED TO SHARES ISSUED
SHAREHOLDERS SHAREHOLDERS TO SHAREHOLDERS EFFECTIVE
OF FUND OF FUND OF FUND DATE OF
MERGING FUND NAME MERGED INTO MERGED INTO MERGED INTO MERGER
------------------- ---------------- ---------------- ----------------- -----------
<S> C> <C> <C> <C>
Firstar U.S. Treasury Money Market - - $133,616 11/27/2000
Firstar Emerging Growth 31 - 14,504 11/27/2000
Firstar Core International Equity 9 - 2,901 11/27/2000
Firstar Stellar International Equity Fund <F1> - - 5,669 12/11/2000
Firstar Stellar Tax-Free Money Market - - - 11/27/2000
Firstar Stellar Ohio Tax-Free Money Market<F1> - - 83,318 12/11/2000
Firstar Stellar Insured Tax-Free Bond 10 - - 11/27/2000
Firstar Stellar U.S. Government Income 132 - - 11/27/2000
Firstar Stellar Strategic Income<F1> 14,938 - - 12/11/2000
Firstar Stellar Growth Equity<F1> 3,972 - 9,383 12/11/2000
Firstar Stellar Relative Value<F1> 537 - 16,100 12/11/2000
Firstar Stellar Science & Technology<F1> 704 - 6,251 12/11/2000
Firstar Stellar 23 - 3,404 11/27/2000
Firstar Stellar Capital Appreciation 3 - - 11/27/2000
Firstar Stellar Treasury<F1> - - 1,784,330 11/27/2000
Firstar Select REIT<F1><F4> - - 4,085 12/11/2000
Mercantile Money Market - - - 11/27/2000
Mercantile Tax-Exempt Money Market - - 110,168 11/27/2000
Mercantile Treasury Money Market - - 159,016 11/27/2000
Mercantile U.S. Government Securities<F1> 13 501 5,140 11/27/2000
Mercantile Intermediate Corporate Bond - 4 3,263 11/27/2000
Mercantile Bond Index<F3> - 1,912 13,828 11/27/2000
Mercantile Government & Corporate Bond<F1> 65 1,486 10,754 11/27/2000
Mercantile Short-Intermediate Municipal Bond - - 2,322 11/27/2000
Mercantile Missouri Tax-Exempt Bond<F1> 222 - 11,075 12/11/2000
Mercantile National Municipal Bond<F1> 65 - 25,986 11/27/2000
Mercantile Balanced 59 533 1,563 11/27/2000
Mercantile Equity Income<F1> 98 12 7,692 12/11/2000
Mercantile Equity Index - 391 721 11/27/2000
Mercantile Growth & Income Equity 205 1,654 3,786 11/27/2000
Mercantile Growth Equity 56 120 2,276 11/27/2000
Mercantile Small Cap Equity<F1> 103 322 9,166 11/27/2000
Mercantile Small Cap Equity Index<F1> - 1,610 5,489 12/11/2000
Mercantile International Equity 59 1,197 8,647 12/11/2000
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
GAIN/LOSS
OF MERGING
FIRSTAR FUND AT TAX STATUS
MERGING FUND NAME TIME OF MERGER OF TRANSFER NEW FIRSTAR FUND NAME
-------------------------- ----------------- -------------- ------------------------
<S> <C> <C> <C>
Firstar U.S. Treasury Money Market $ - Non-taxable Firstar U.S. Treasury Money Market
Firstar Emerging Growth 18,818 Non-taxable Firstar Small Cap Core Equity
Firstar Core International Equity (1,825) Non-taxable Firstar International Growth
Firstar Stellar International Equity Fund<F1> 1,931 Non-taxable Firstar Global Equity Fund
Firstar Stellar Tax-Free Money Market - Non-taxable Firstar Tax-Exempt Money Market
Firstar Stellar Ohio Tax-Free Money Market<F1> - Non-taxable Firstar Ohio Tax-Exempt Money Market
Firstar Stellar Insured Tax-Free 2,768 Non-taxable Firstar National Municipal Bond
Firstar Stellar U.S. Government Income (370) Non-taxable Firstar U.S. Government Securities
Firstar Stellar Strategic Income<F1> (6,744) Non-taxable Firstar Strategic Income
Firstar Stellar Growth Equity<F1> 118,833 Non-taxable Firstar Large Cap Growth
Firstar Stellar Relative Value<F1> 222,034 Non-taxable Firstar Relative Value
Firstar Stellar Science & Technology<F1> 13,947 Non-taxable Firstar Science & Technology
Firstar Stellar 9,493 Non-taxable Firstar Balanced Income
Firstar Stellar Capital Appreciation 14,099 Non-taxable Firstar MidCap Index
Firstar Stellar Treasury<F1> - Non-taxable Firstar U.S. Treasury Money Market
Firstar Select REIT<F1><F4> 2,994 Non-taxable Firstar REIT
Mercantile Money Market - Non-taxable Firstar Money Market
Mercantile Tax-Exempt Money Market - Non-taxable Firstar Tax-Exempt Money Market
Mercantile Treasury Money Market - Non-taxable Firstar U.S. Treasury Money Market
Mercantile U.S. Government Securities<F1> (503) Non-taxable Firstar U.S. Government Securities
Mercantile Intermediate Corporate Bond (1,411) Non-taxable Firstar Intermediate Bond Market
Mercantile Bond Index<F3> (314) Non-taxable Firstar Aggregate Bond
Mercantile Government & Corporate Bond<F1> (168) Non-taxable Firstar Aggregate Bond
Mercantile Short-Intermediate Municipal Bond (151) Non-taxable Firstar Tax-Exempt Intermediate Bond
Mercantile Missouri Tax-Exempt Bond<F1> 2,351 Non-taxable Firstar Missouri Tax-Exempt Bond
Mercantile National Municipal Bond<F1> 1,301 Non-taxable Firstar National Municipal Bond
Mercantile Balanced (284) Non-taxable Firstar Balanced Growth
Mercantile Equity Income<F1> 16,056 Non-taxable Firstar Equity Income
Mercantile Equity Index 23,220 Non-taxable Firstar Equity Index
Mercantile Growth & Income Equity 50,298 Non-taxable Firstar Growth & Income
Mercantile Growth Equity 40,483 Non-taxable Firstar Large Cap Core Equity
Mercantile Small Cap Equity<F1> 16,326 Non-taxable Firstar Small Cap Core Equity
Mercantile Small Cap Equity Index<F1> 3,685 Non-taxable Firstar Small Cap Index
Mercantile International Equity (1,141) Non-taxable Firstar International Growth
</TABLE>
<F1> Accounting survivor, performance history carries over.
<F2> Shell portfolio.
<F3> Concurrent merger; Mercantile Government & Corporate Bond is accounting
survivor; performance history carries over.
<F4> Financial statements will be presented in a separate report.
<PAGE>
(LOGO) FIRSTAR FUNDS
U.S. GOVERNMENT SECURITIES FUND
AGGREGATE BOND FUND
MISSOURI TAX-EXEMPT BOND FUND
NATIONAL MUNICIPAL BOND FUND
EQUITY INCOME FUND
SMALL CAP CORE EQUITY FUND
SMALL CAP INDEX FUND
INTERNATIONAL GROWTH FUND
CHANGE OF ACCOUNTANTS
On October 16, 2000, KPMG LLP ("KPMG") resigned as the Company's independent
auditors. KPMG's reports on the Company's financial statements for the fiscal
years ended November 30, 1999 and November 30, 1998 contained no adverse opinion
or disclaimer of opinion nor were they qualified or modified as to uncertainty,
audit scope or accounting principles. During the Company's fiscal years ended
November 30, 1999 and November 30, 1998 and the period commencing December 1,
1999 and ending October 16, 2000, (i) there were no disagreements with KPMG on
any matter of accounting principles or practices, financial statement disclosure
or auditing scope or procedure, which disagreements, if not resolved to the
satisfaction of KPMG, would have caused it to make reference to the subject
matter of the disagreements in connection with its reports on the Company's
financial statements for such years, and (ii) there were no "reportable events"
of the kind described in Item 304(a)(1)(v) of Regulation S-K under the
Securities Exchange Act of 1934, as amended.
On November 7, 2000, the Company by action of its Board of Directors engaged
PricewaterhouseCoopers LLP ("PwC") as the independent auditors to audit the
Company's financial statement for the 11-month fiscal period ending October 31,
2000. During the Company's fiscal years ended November 30, 1999 and November 30,
1998 and the period commencing December 1, 1999 and ending November 7,
2000, neither the Company nor anyone on its behalf has consulted PwC on items
which (i) concerned the application of accounting principles to a specified
transaction, either completed or proposed, or the type of audit opinion that
might be rendered on the Company's financial statements or (ii) concerned the
subject of a disagreement (as defined in paragraph (a)(1)(v) of Item 304 or
Regulation S-K) or reportable events (as described in paragraph (a)(1)(v) of
said Item 304).
<PAGE>
(LOGO) FIRSTAR FUNDS
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF
MERCANTILE MUTUAL FUNDS, INC.:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the U.S. Government Securities Fund
(formerly known as U.S. Government Securities Portfolio), Aggregate Bond Fund
(formerly known as Government & Corporate Bond Portfolio), Missouri Tax-Exempt
Bond Fund (formerly known as Missouri Tax-Exempt Bond Portfolio), National
Municipal Bond Fund (formerly know as National Municipal Bond Portfolio), Equity
Income Fund (formerly known as Equity Income Portfolio), International Growth
Fund (formerly known as International Equity Portfolio), Small Cap Index Fund
(formerly known as Small Cap Equity Index Portfolio) and Small Cap Core Equity
Fund (formerly known as Small Cap Equity Portfolio) (eight of the portfolios
comprising Mercantile Mutual Funds, Inc., hereafter referred to as the "Funds")
at October 31, 2000, the results of each of their operations, the changes in
each of their net assets and the financial highlights for the year then ended,
all in conformity with accounting principles generally accepted in the United
States of America. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Funds' management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted in
the United States of America, which require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at October 31, 2000 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion. The financial statements of the Funds as of November 30, 1999 and
for all periods presented ended at or prior thereto were audited by other
independent accountants whose report dated January 21, 2000 expressed an
unqualified opinion on those statements.
PricewaterhouseCoopers LLP
Milwaukee, Wisconsin
December 29, 2000
