FIRSTAR STELLAR GROWTH EQUITY FUND
FIRSTAR STELLAR RELATIVE VALUE FUND
FIRSTAR STELLAR SCIENCE & TECHNOLOGY FUND
FIRSTAR STELLAR FUND
FIRSTAR STELLAR CAPITAL APPRECIATION FUND
FIRSTAR STELLAR INTERNATIONAL EQUITY FUND
STOCK FUNDS
COMBINED ANNUAL REPORT
NOVEMBER 30, 1999
(FIRSTAR STELLAR FUNDS LOGO)
President's Message
Dear Shareholder:
On behalf of the Firstar Stellar Funds, thank you for your continued confidence
and for allowing us to help you achieve your financial goals. In 1999, the
Firstar Stellar Funds added a new fund, the Firstar Stellar Science & Technology
Fund, to focus on a business sector which we believe will show strong growth for
many years. The year saw recovery in many foreign economies, which helped the
performance of the Firstar Stellar International Equity Fund directly, and many
of the other funds indirectly from increased export opportunities for U.S.
companies.
Interest rates continued an upward course through 1999, as the Federal Reserve
acted to prevent an upsurge in inflation. Rising rates drove down the value of
many fixed-income assets, but in that difficult environment the Firstar Stellar
Funds with exposure to bonds performed at the median or better for their
respective peer groups. This demonstrates our commitment to provide you steady
performance through up and down markets.
On the following pages you will find the results for the period from December 1,
1998 through November 30, 1999 for the stock funds, as well as questions and
answers from our portfolio managers regarding fund performance. I ask you to
take a few minutes to read this important information about your investments.
Please let your financial advisor know if you have any questions about the
Firstar Stellar Funds.
FIRSTAR STELLAR GROWTH EQUITY FUND
Investors in the Growth Equity Fund saw extremely good performance for the
twelve months ended November 30, 1999. The total return for the Y shares was
25.61%, while the B shares produced a total return of 25.26% or 20.26% adjusted
for the maximum contingent deferred sales charge.*<F1> The Fund manager's
success at selecting large-cap securities with above average growth rates was
responsible for producing outstanding performance. The Fund continues to be a
solid choice for those seeking growth in the large-cap portion of the equity
market.
FIRSTAR STELLAR RELATIVE VALUE FUND
There were a few brief periods during the twelve months ended November 30, 1999
when investors turned to value-oriented stocks, but for most of the year this
group was overshadowed by the growth stock category. Despite being out of
favor, the Fund returned a very good 12.20% for the Y shares, 11.89% or 6.84%
adjusted for the sales charge for the A shares, and 11.84% or 6.84% adjusted for
the maximum contingent deferred sales charge for B shares.*<F1> This Fund
invests primarily in large-cap, quality securities and concentrates on stocks
with lower price/earnings ratios, lower beta and higher dividends. The Relative
Value Fund holds many well-known, quality securities in its portfolio, and
remains an attractive investment.
FIRSTAR STELLAR INTERNATIONAL EQUITY FUND
This Fund seeks capital appreciation by investing in mutual funds that primarily
invest in non-U.S. concerns.**<F2> It produced a total return of 28.44% or
26.49% adjusted for the sales charge for the year ended November 30, 1999.*<F1>
After several years of trailing the United States, international markets came
back into their own this year, and the International Equity Fund offers a good
opportunity for investors who wish to diversify their portfolios outside of the
domestic markets.
FIRSTAR STELLAR FUND
The Fund seeks to provide total return to investors by combining the securities
of five asset classes in roughly equal weights. These include U.S. stocks,
international stocks,**<F2> real estate stocks, bonds and cash equivalents. By
using this combination, the Fund strives to achieve long-term, consistent
performance. For the twelve months ended November 30, 1999, the Fund returned
7.15% for the Y shares and 6.92% or 2.10% adjusted for the sales charge for A
shares.*<F1> The Stellar Fund is an excellent choice for those who seek
moderate growth with the likelihood of less volatility than a pure stock
investment.
FIRSTAR STELLAR CAPITAL APPRECIATION FUND
For the year ended November 30, 1999, the Capital Appreciation Fund produced a
return of 4.85% or 0.16% adjusted for the sales charge.*<F1> In recent months
it did not pay to own a diversified portfolio of mid- and small-cap companies,
as returns were concentrated in a very limited number of stocks. Over the
longer term we believe our shareholders are better served by holding a
diversified portfolio, as opposed to chasing the stock or sector of the day.
This Fund provides investors diversification from the market's emphasis on
large-cap stocks, which will of course turn at some point, as it seeks capital
appreciation through investing in quality mid-and smaller sized companies.
FIRSTAR STELLAR SCIENCE & TECHNOLOGY FUND
The newest member of the Firstar Stellar Funds family opened to investors on
August 9, 1999, in time to catch a huge run-up in values of technology stocks.
From inception through November 30, 1999, the Fund returned 45.60% for Y shares
and 45.20% or 39.20% adjusted for the contingent deferred sales charge for B
shares.*<F1> This Fund invests in stocks in the technology and healthcare
sectors, which we believe will benefit from continuing investment by business
and consumers.***<F3> While the Fund may be more volatile than many funds,
investors may benefit from investing in the most rapidly-growing part of the
economy.
We are grateful that you have chosen to use the Firstar Stellar Funds to meet
your investment needs and we look forward to providing solid performance and
service to you in the future.
Sincerely,
/s/ Daniel B. Benhase
Daniel B. Benhase
President
January 24, 2000
*<F1> Performance quoted represents past performance and is not indicative
of future results. Investment return and principal value will
fluctuate, so that an investor's shares, when redeemed, may be worth
more or less than their original cost.
**<F2> Foreign investing involves special risks including currency risk,
increased volatility of foreign securities, and differences in
auditing and other financial standards.
***<F3> Funds whose investments are concentrated in a specific industry,
sector or geographic area may be subject to a higher degree of market
risk than funds whose investments are diversified. The Fund may
invest in initial public offerings (IPOs). IPOs may have a magnified
performance impact on a fund with a small asset base.
Investment Reviews
FIRSTAR STELLAR GROWTH EQUITY FUND
Q The Fund continued to show very good performance during the past year. To
what would you attribute these returns?
A The Growth Equity Fund produced very strong results for the fiscal year
ended November 30, 1999 with returns over 25%. While the market has been
good from an index perspective, with the S&P 500*<F4> returning 20.90% over
the same period, it has been a very narrow market. Technology has clearly
been the place to be invested during this time frame and Growth Equity has
taken advantage of the opportunity. While continuing to maintain sector
weightings which are reasonably close to that of the S&P 500, the Fund has
been slightly overweighted in technology for most of the year. Security
selection has helped and the Fund has benefited from its investment in
names such as Cisco Systems, Sun Microsystems, EMC and Microsoft.
The Fund also did well early in the year when we took an overweighted
position in energy stocks. These stocks rallied as the price of crude shot
higher during the spring months. We subsequently eliminated this
overweight locking in some nice performance gains.
We continue to stick with our emphasis on buying high quality companies
with good earnings track records and prospects and diversifying the
portfolio. Coupled with an emphasis on overall portfolio price/earnings
ratios, our belief is that these practices will produce solid long-term
results for our shareholders. Our long-term focus keeps us from getting
caught up in short market moves which can whipsaw a portfolio.
Q What is your market outlook as we move into the year 2000?
A Our outlook calls for a slowing of the domestic economy even as overseas
economies gain strength. The rate hikes which the Federal Reserve employed
in the second half of 1999 should slow the economy as we move through the
2000 calendar year. We do expect GDP growth in the 2.5-3.0% range with
relatively stable inflation. This should lead to a fairly steady interest
rate environment. Earnings will benefit from the improving economies
overseas which will improve export opportunities. With productivity gains
continuing from the usage of technology, we look for earnings growth to be
around the 10% range for 2000 profits.
This could result in a positive equity market. The likelihood that merger
and acquisition activity will increase with the advent of new accounting
rules at the end of 2000 will also support stocks. Finally, we still
believe that demographics continue to suggest the strong demand for
equities. With supply remaining controlled, these factors likewise should
move the market higher.
We believe that this puts the Growth Equity Fund in a very good position as
investors look for high quality companies with above average growth rates.
With our broad diversification, the Fund also limits the risk of being
concentrated in only a few sectors of the market.
FIRSTAR STELLAR RELATIVE VALUE FUND
Q During the past twelve months the equity market continued its upward trend
despite significant market volatility. How did the Firstar Stellar
Relative Value Fund perform versus its peer group?
A For the twelve months ended November 30, 1999, the Firstar Stellar Relative
Value Fund generated a total rate of return of +12.20% on a no-load, net
asset value basis (class "Y" shares) compared to a return of +11.62% for
Lipper Large Cap Value Funds**<F5> as measured by Lipper Analytical
Services, Inc.***<F6> The trailing three and five year performance numbers
as of November 30, 1999 continue to exceed the index as well. In addition,
the Fund received Standard & Poor's Select Fund designation during 1999
based on the six-month moving average of the three years of absolute and
volatility adjusted performance data relative to 457 large capitalization
value funds.
*<F4> Standard & Poor's 500 Stock Index, a composite index of 500 common
stocks in industry, transportation, financial and public utility
companies, can be used to compare to the total returns of funds whose
portfolios are invested primarily in common stocks. This index is
unmanaged and investments cannot be made in an index.
**<F5> Lipper figure represents the average of the total returns reported by
all of the mutual funds designated by Lipper Analytical Services, Inc.
as falling into the respective category indicated. This figure does
not reflect sales charges.
***<F6> Performance quoted reflects past performance and is not indicative of
future results. Investment return and principal value will fluctuate,
so that an investor's shares, when redeemed, may be worth more or less
than their original cost. Total return for A Shares based on net
asset value and adjusted for the sales charge for the year ended
November 30, 1999 was 11.89% and 6.84%, respectively. Total return
for B Shares based on net asset value and adjusted for the maximum
contingent deferred sales charge for the same period was 11.84% and
6.84%, respectively.
Q What specific sectors impacted the performance of the Fund?
A Relative to the S&P 500, the sectors that had a positive impact on the Fund
were technology and energy. Utilities, consumer staples, consumer
cyclicals, basic materials, healthcare and financial were sectors that
lagged relative to the S&P 500.
Q Entering 2000, does the Fund anticipate any change in its "value" style of
managing the portfolio?
A The Firstar Stellar Relative Value Fund's "value" based investment strategy
traditionally identifies companies with below average volatility, low
price-to-earnings ratio and above average dividend yields. This strategy
has provided consistent rates of return since the Fund's inception in 1991.
No change to the value strategy is anticipated.
FIRSTAR STELLAR SCIENCE & TECHNOLOGY FUND
Q Technology stocks were clearly the best performing stocks during 1999.
During this period what areas of science and technology worked best for the
Fund? What areas underperformed?
A Within the technology sector we chose to be overweighted in semiconductor
and software stocks. The semiconductor business has benefited from
communication companies increasing their fiber optic networks. Examples of
the companies supplying semiconductors used to build the optical networks
are JDS Uniphase and SDL Incorporated. In software, the need for software
to enable e-commerce and allow this data to be communicated to current
software applications has caused new companies to emerge. 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 strong companies experiencing explosive revenue growth
supplying this technology. The Fund saw underperformance in its healthcare
exposure. We continue to believe that these stocks represent an opportunity
for growth in the future. This Fund has had excellent performance and
continues to be a great way for investors to maximize capital appreciation.
Q Everybody seems to be talking about technology and the Internet. What is
creating the growth in the technology and Internet stocks?
A The Internet was created for the military and adapted by the academic
community. Then Business to Consumer and Consumer to Consumer (EBAY)
commerce started to gain acceptance, and are continuing to grow. Now a
market bigger than all of these combined is being tapped: Business to
Business Commerce, which will change the way all companies do business.
According to the U.S. Department of Commerce, "between 1995 and 1998, these
IT-producers, while accounting for only about 8 percent of U.S. GDP,
contributed on average 35 percent of the nation's real economic growth."
The Internet is in its infancy when you compare current users to the number
of global users possible.
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 or be leap-frogged by the companies who have embraced this
technology. This Fund gives investors the best way to participate in these
facets of technology and new opportunities as they are presented.
Q Technology had a fabulous year in 1999. What is your outlook for the next
twelve months*<F7>?
A With continued increasing corporate profitability and high consumer
confidence, we expect to see increased technology spending. Our outlook for
the economy remains positive for the next twelve months supporting this
growth. On the corporate level, technology spending has been a strategic
decision. Technology is used as a means to increase revenue and
profitability. We should see continued technology spending as companies
increase the amount of information and commerce converted to electronic
mediums. While this top and bottom line growth continues from technology
spending, we will continue to see explosive growth in technology stocks.
The Internet has placed consumers and businesses on a level playing field.
Consumers are benefiting from access to increasing amounts of information
in an easy to access format. This increased availability of information for
decision making and entertainment has driven consumer spending on
technology. Going forward we see wireless communication as a way for
consumers to increase the ability to access information.
*<F7> Funds whose investments are concentrated in a specific industry,
sector or geographic area may be subject to a higher degree of market
risk than funds whose investments are diversified. The Fund may
invest in initial public offerings (IPOs). IPOs may have a magnified
performance impact on a fund with a small asset base.
FIRSTAR STELLAR FUND
Q How did the multi-asset class approach of the Stellar Fund fare relative to
its various asset classes during the past fiscal year?
A For the fiscal year, the Stellar Fund had a total return of 7.15% for Class
Y shares.*<F8> While this lagged the U.S. and international stock markets,
the Fund did quite well compared to an average of all the asset classes in
which it invests, along with lower volatility. The Fund's objective is to
invest roughly equal amounts in five asset classes: U.S. stocks, foreign
stocks, U.S. bonds, Real Estate Investment Trusts (REIT's) and cash
equivalents.
U.S. Equities -- Stocks were again strong in the past year. The S&P
500**<F9> was up 20.90% for the twelve months ended November 30, 1999.
Despite the high return for stocks overall, the rally was very narrow.
Technology stocks and a few large blue chip stocks had very good returns,
while the broader market headed lower. The Fund's stock holdings did well
relative to the S&P 500 due mainly to the Fund's slight overweight in
technology toward the end of the year.
International Equities -- International stocks also had a very good year
with the EAFE Index***<F10> posting a 19.44% return. Japan's market
rebounded significantly from its multi-year lows. Most European stock
markets had double-digit returns despite weakness for the new Euro.
U.S. Bonds -- The bond market was hurt this year by gradually rising rates.
The Lehman Government/Corporate Total Index had a total return of -1.31%
for the period December 1, 1998 through November 30, 1999. While the stock
market benefited from the strong U.S. economy, bond investors were
defensive over concerns of higher inflation and from three Federal Reserve
interest rate hikes.
REIT's -- 1999 was a volatile year for REIT's as the stocks hit new lows
during the year despite improving earnings and higher quality balance
sheets. The NAREIT Index****<F11> had a return of (9.88)% for the twelve
months ended November 30, 1999. REIT's now provide yields that are over 2%
higher than long-term U.S. Treasury bonds, coupled with moderate dividend
growth potential. Diversification amongst the various real estate sectors,
while focussing on names with consistent and more stable earnings growth
has helped the Fund's REIT performance.
Cash Equivalents -- Money market yields edged up over the year. Three-
month Treasury Bills averaged a total return of 4.75% for the twelve months
ended November 30, 1999. Holding cash equivalents reduces the overall
portfolio volatility, which is one of the Fund's main goals.
If an investor had held equal positions in the five asset class benchmarks
for the fiscal year, that investor would have had a total return of 6.78%.
So, the Fund's 7.15% return compares quite favorably.
Q What is the Fund's outlook for 2000?
A Given the continued strength of the world economies, we expect corporate
earnings and stock prices to post gains of a little over 10%. REIT's should
begin to rebound as they appeal to value investors. REIT's will likely post
returns close to those of other stocks. Bonds will likely return little
more than their coupons until the U.S. economy shows signs of slowing down.
FIRSTAR STELLAR CAPITAL APPRECIATION FUND
Q The Fund had a positive return for the fiscal year ended November 30, 1999.
Most of that performance seemed to take place late in the year. Why?
A The Capital Appreciation Fund had a return of 4.85% for the fiscal year
just ended with the return in the last quarter being 5.84%*****<F12>. The
Fund clearly benefited from the rise late in the year of the technology
stocks which are in the mid-cap market. The Fund is slightly overweighted
in technology and the stocks which the Fund is invested in performed very
well.
*<F8> Performance quoted reflects past performance and is not indicative
of future results. Investment return and principal value will
fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Total return for A
Shares based on net asset value and adjusted for the sales charge
for the year ended November 30, 1999 was 6.92% and 2.10%,
respectively.
**<F9> Standard & Poor's 500 Stock Index, a composite index of 500 common
stocks in industry, transportation, financial and public utility
companies, can be used to compare to the total returns of funds
whose portfolios are invested primarily in common stocks. This
index is unmanaged and investments cannot be made in an index.
***<F10> The Europe, Australasia and Far East (EAFE) Index is a market
capitalization weighted foreign securities index, which is widely
used to measure the performance of European, Australian, New
Zealand and Far Eastern stock markets. This index is unmanaged and
investments cannot be made in the index.
****<F11> The National Association of Real Estate Investment Trusts (NAREIT)
Index includes all 211 REITs currently trading on the NASDAQ
National Market System and the New York and American Stock
Exchanges. The index is used to measure the REIT industry's growth
and performance. The index is unmanaged and investments cannot be
made in the index.
*****<F12> Performance quoted reflects past performance and is not indicative
of future results. Investment return and principal value will
fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Total return adjusted
for the sales charge for the fiscal year ended November 30, 1999
was 0.16% and for the quarter ended November 30, 1999 was 1.07%,
respectively.
The Fund has an overall objective towards mid-cap stocks. The market has
generally continued to be led by large-cap names and performance has been very
concentrated in primarily technology issues. As the year progressed, however,
the market did begin to broaden some and we began to see better performance from
the mid and smaller capitalization names. This not only helped the entire
segment but the Capital Appreciation Fund in particular.
Q As you look towards 2000, what do you see as the opportunities for this
Fund?
A As mentioned above, the market has begun to broaden from just the large-cap
names into some smaller issues. This is a big positive for the Fund as any
shift towards this area would create tremendous demand for the current
somewhat limited supply. This would be a positive for the stocks.
Second, the stocks in this segment are selling at a significant discount to
the larger cap market while their growth rates are similar to the large-cap
stocks. As investors begin to seek more value in their investments, they
should begin to look towards the mid-cap stocks. This would also be a huge
positive for the group.
Lastly, we remain very comfortable that technology will continue to lead
the market. We are currently overweighted in this sector. As both
businesses and individuals continue to reap the benefits of technology,
their usage rises. This should lead to greater sales and higher
profitability. Likewise the improving overseas' economies should further
accelerate these numbers. We believe this will lead to more strong
performance for the group and the Fund.
FIRSTAR STELLAR INTERNATIONAL EQUITY FUND
Q The international markets*<F13> rebounded nicely over the past year. What
has changed?
A During the fall of 1998, there was tremendous uncertainty throughout the
world as to the stability of many foreign economies. Talk around the globe
was of deflation and declining growth, a bad combination. As currencies
destabilized, there was a tremendous outflow of capital from international
markets which primarily went into the U.S. Expectations for a continuation
of these negative events into 1999 were widespread.
As so often happens, the projections of doom and gloom were overdone. The
year 1999 saw a rebound and a return to more stable economic growth
throughout the globe. Economic growth throughout Europe and Japan
rebounded with GDP growth positive in Japan and close to 1.5% in Europe.
While deflation still persisted in Japan, other countries returned to low
inflationary levels. Expectations for 2000 now call for faster growth than
what is expected in the U.S. with controlled inflation.
Q How did the International Equity Fund perform over the past year and what
are expectations for the year 2000?
A The International Equity Fund turned in very strong performance with a
return of 28.44% for the twelve months ended November 30, 1999**<F14>. The
real strength has been in the returns from the Japanese market which was
hammered in the past several years due to valuations and economic problems.
As these problems lessened, there was a strong recognition of the value in
the market which resulted in a tremendous run up in prices. Europe showed
positive returns though lower than Japan as the integration of the Euro
takes place.
We look for continued strong returns in 2000 from the international
markets. These economies continue to rebound and are on a more solid
footing. The valuations in these markets are also much lower than in the
U.S. when viewed from a price/earnings and price/book standpoint. If
economic forecasts meet our expectations, there could still be further
moves upward for these markets and for the International Equity Fund.
*<F13> Foreign investing involves special risks such as currency risk,
increased volatility of foreign securities and differences in auditing
and other financial standards.
**<F14> Performance quoted reflects past performance and is not indicative of
future results. Investment return and principal value will fluctuate,
so that an investor's shares, when redeemed, may be worth more or less
than their original cost. Total return adjusted for the sales charge
for the fiscal year ended November 30, 1999 was 26.49%.
Firstar Stellar Growth Equity Fund -- B Shares
GROWTH OF $10,000 INVESTED IN FIRSTAR STELLAR GROWTH EQUITY FUND -- B SHARES
THE GRAPH BELOW ILLUSTRATES THE HYPOTHETICAL INVESTMENT OF $10,000 IN THE
FIRSTAR STELLAR GROWTH EQUITY FUND -- B SHARES (THE "FUND") FROM DECEMBER 12,
1994 (START OF PERFORMANCE) TO NOVEMBER 30, 1999 COMPARED TO THE STANDARD &
POOR'S 500 INDEX(A)<F15>.
FIRSTAR STELLAR GROWTH
DATE EQUITY FUND -- B SHARES S&P 500 INDEX
12/12/94 $10,000 $10,000
11/30/95 $12,944 $13,698
11/30/96 $16,483 $17,514
11/30/97 $20,216 $22,512
11/30/98 $24,413 $27,838
11/30/99 $30,480(b)<F16> $33,656
AVERAGE ANNUAL TOTAL RETURN(C)<F17> FOR THE PERIOD ENDED NOVEMBER 30, 1999
One Year 20.26%
Start of Performance (12/12/94) 25.12%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
(a)<F15> The Standard & Poor's 500 Index is a composite index of 500 common
stocks in industry, transportation, financial and public utility
companies which can be used to compare to the total returns of funds
whose portfolios are invested primarily in common stocks. The index
is not adjusted to reflect sales charges, expenses, or other fees
that the SEC requires to be reflected in the Fund's performance.
This index is unmanaged.
(b)<F16> Represents a hypothetical investment of $10,000 in the Fund. The
ending value of the Fund reflects a 1.00% contingent deferred sales
charge on any redemption less than five years from the purchase
date. The maximum contingent deferred sales charge is 5.00% on any
redemption less than one year from the purchase date. The Fund's
performance assumes the reinvestment of all dividends and
distributions. The Standard & Poor's 500 Index has been adjusted to
reflect reinvestment of dividends on securities in the index.
(c)<F17> Total return quoted reflects all applicable contingent deferred
sales charges.
Firstar Stellar Growth Equity Fund -- Y Shares
GROWTH OF $10,000 INVESTED IN FIRSTAR STELLAR GROWTH EQUITY FUND -- Y SHARES
THE GRAPH BELOW ILLUSTRATES THE HYPOTHETICAL INVESTMENT OF $10,000 IN THE
FIRSTAR STELLAR GROWTH EQUITY FUND -- Y SHARES (THE "FUND") FROM AUGUST 18, 1997
(START OF PERFORMANCE) TO NOVEMBER 30, 1999 COMPARED TO THE STANDARD & POOR'S
500 INDEX(A)<F18>.
FIRSTAR STELLAR GROWTH
DATE EQUITY FUND -- Y SHARES S&P 500 INDEX
8/18/97 $10,000 $10,000
11/30/97 $10,459 $10,367
11/30/98 $12,646 $12,820
11/30/99 $15,885(b)<F19> $15,499
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED NOVEMBER 30, 1999
One Year 25.61%
Start of Performance (8/18/97) 22.42%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
(a)<F18> The Standard & Poor's 500 Index is a composite index of 500 common
stocks in industry, transportation, financial and public utility
companies which can be used to compare to the total returns of funds
whose portfolios are invested primarily in common stocks. The index
is not adjusted to reflect sales charges, expenses, or other fees
that the SEC requires to be reflected in the Fund's performance.
This index is unmanaged.
(b)<F19> Represents a hypothetical investment of $10,000 in the Fund. The
Fund's performance assumes the reinvestment of all dividends and
distributions. The Standard & Poor's 500 Index has been adjusted to
reflect reinvestment of dividends on securities in the index.
Firstar Stellar Relative Value Fund -- A Shares
GROWTH OF $10,000 INVESTED IN FIRSTAR STELLAR RELATIVE VALUE FUND -- A SHARES
THE GRAPH BELOW ILLUSTRATES THE HYPOTHETICAL INVESTMENT OF $10,000 IN THE
FIRSTAR STELLAR RELATIVE VALUE FUND -- A SHARES (THE "FUND") FROM JUNE 4, 1991
(START OF PERFORMANCE) TO NOVEMBER 30, 1999 COMPARED TO THE STANDARD & POOR'S
500 INDEX(A)<F20> AND THE LIPPER GROWTH AND INCOME AVERAGE(B)<F21>.
DATE FIRSTAR STELLAR RELATIVE LIPPER GROWTH AND
VALUE FUND -- A SHARES S&P 500 INDEX INCOME AVERAGE
6/4/91 $9,550 $10,000 $10,000
11/30/91 $9,138 $9,818 $10,292
11/30/92 $10,545 $11,631 $12,111
11/30/93 $12,070 $12,806 $13,773
11/30/94 $11,884 $12,883 $13,907
11/30/95 $16,055 $17,644 $18,115
11/30/96 $20,689 $22,561 $22,441
11/30/97 $26,417 $28,995 $27,748
11/30/98 $30,822 $35,855 $30,970
11/30/99 $34,488(c)<F22> $43,351 $34,736
AVERAGE ANNUAL TOTAL RETURN (D)<F23> FOR THE PERIOD ENDED NOVEMBER 30, 1999
One Year 6.84%
Five Year 22.60%
Start of Performance (6/4/91) 15.69%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
(a)<F20> The Standard & Poor's 500 Index is a composite index of 500 common
stocks in industry, transportation, financial and public utility
companies which can be used to compare to the total returns of funds
whose portfolios are invested primarily in common stocks. The index
is not adjusted to reflect sales charges, expenses or other fees
that the SEC requires to be reflected in the Fund's performance.
The index is unmanaged.
(b)<F21> The Lipper Growth and Income Average represents the average of the
total returns reported by all of the mutual funds designated by
Lipper Analytical Services, Inc. as falling into the respective
category and is not adjusted to reflect any sales charges. However,
these total returns are reported net of expenses or other fees that
the SEC requires to be reflected in the Fund's performance.
(c)<F22> Represents a hypothetical investment of $10,000 in the Fund after
deducting the maximum sales charge of 4.50% ($10,000 investment
minus $450 sales charge = $9,550). The Fund's performance assumes
the reinvestment of all dividends and distributions. The Standard &
Poor's 500 Index and the Lipper Growth and Income Average have been
adjusted to reflect reinvestment of dividends on securities in the
index and average.
(d)<F23> Total return quoted reflects all applicable sales charges.
Firstar Stellar Relative Value Fund -- B Shares
GROWTH OF $10,000 INVESTED IN FIRSTAR STELLAR RELATIVE VALUE FUND -- B SHARES
THE GRAPH BELOW ILLUSTRATES THE HYPOTHETICAL INVESTMENT OF $10,000 IN THE
FIRSTAR STELLAR RELATIVE VALUE FUND -- B SHARES (THE "FUND") FROM MARCH 31, 1998
(START OF PERFORMANCE) TO NOVEMBER 30, 1999 COMPARED TO THE STANDARD & POOR'S
500 INDEX(A)<F24> AND THE LIPPER GROWTH AND INCOME AVERAGE(B)<F25>.
FIRSTAR STELLAR RELATIVE LIPPER GROWTH AND
DATE VALUE FUND -- B SHARES S&P 500 INDEX INCOME AVERAGE
3/31/98 $10,000 $10,000 $10,000
11/30/98 $10,150 $10,749 $9,879
11/30/99 $10,952(c)<F26> $12,996 $11,080
AVERAGE ANNUAL TOTAL RETURN (D)<F27> FOR THE PERIOD ENDED NOVEMBER 30, 1999
One Year 6.84%
Start of Performance (3/31/98) 5.59%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
(a)<F24> The Standard & Poor's 500 Index is a composite index of 500 common
stocks in industry, transportation, financial and public utility
companies which can be used to compare to the total returns of funds
whose portfolios are invested primarily in common stocks. The index
is not adjusted to reflect sales charges, expenses or other fees
that the SEC requires to be reflected in the Fund's performance.
The index is unmanaged.
(b)<F25> The Lipper Growth and Income Average represents the average of the
total returns reported by all of the mutual funds designated by
Lipper Analytical Services, Inc. as falling into the respective
category and is not adjusted to reflect any sales charges. However,
these total returns are reported net of expenses or other fees that
the SEC requires to be reflected in the Fund's performance.
(c)<F26> Represents a hypothetical investment of $10,000 in the Fund. The
ending value of the Fund reflects a 4.00% contingent deferred sales
charge on any redemption less than two years from the purchase date.
The maximum contingent deferred sales charge is 5.00% on any
redemption less than one year from the purchase date. The Fund's
performance assumes the reinvestment of all dividends and
distributions. The Standard & Poor's 500 Index and the Lipper Growth
and Income Average have been adjusted to reflect reinvestment of
dividends on securities in the index and average.
(d)<F27> Total return quoted reflects all applicable contingent deferred
sales charges.
Firstar Stellar Relative Value Fund -- Y Shares
GROWTH OF $10,000 INVESTED IN FIRSTAR STELLAR RELATIVE VALUE FUND -- Y SHARES
THE GRAPH BELOW ILLUSTRATES THE HYPOTHETICAL INVESTMENT OF $10,000 IN THE
FIRSTAR STELLAR RELATIVE VALUE FUND -- Y SHARES (THE "FUND") FROM AUGUST 18,
1997 (START OF PERFORMANCE) TO NOVEMBER 30, 1999 COMPARED TO THE STANDARD &
POOR'S 500 INDEX(A)<F28> AND THE LIPPER GROWTH AND INCOME AVERAGE(B)<F29>.
FIRSTAR STELLAR RELATIVE LIPPER GROWTH AND
DATE VALUE FUND -- Y SHARES S&P 500 INDEX INCOME AVERAGE
8/18/97 $10,000 $10,000 $10,000
11/30/97 $10,393 $10,367 $9,938
11/30/98 $12,154 $12,820 $11,092
11/30/99 $13,637(c)<F30> $15,499 $12,441
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED NOVEMBER 30, 1999
One Year 12.20%
Start of Performance (8/18/97) 14.52%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
(a)<F28> The Standard & Poor's 500 Index is a composite index of 500 common
stocks in industry, transportation, financial and public utility
companies which can be used to compare to the total returns of funds
whose portfolios are invested primarily in common stocks. The index
is not adjusted to reflect sales charges, expenses, or other fees
that the SEC requires to be reflected in the Fund's performance.
The index is unmanaged.
(b)<F29> The Lipper Growth and Income Average represents the average of the
total returns reported by all of the mutual funds designated by
Lipper Analytical Services, Inc. as falling into the respective
category and is not adjusted to reflect any sales charges. However,
these total returns are reported net of expenses or other fees that
the SEC requires to be reflected in the Fund's performance.
(c)<F30> Represents a hypothetical investment of $10,000 in the Fund. The
Fund's performance assumes the reinvestment of all dividends and
distributions. The Standard & Poor's 500 Index and the Lipper Growth
and Income Average have been adjusted to reflect reinvestment of
dividends on securities in the index and average.
Firstar Stellar Science & Technology Fund -- B Shares
GROWTH OF $10,000 INVESTED IN FIRSTAR STELLAR SCIENCE & TECHNOLOGY FUND -- B
SHARES
THE GRAPH BELOW ILLUSTRATES THE HYPOTHETICAL INVESTMENT OF $10,000 IN THE
FIRSTAR STELLAR SCIENCE & TECHNOLOGY FUND -- B SHARES (THE "FUND") FROM AUGUST
9, 1999 (START OF PERFORMANCE) TO NOVEMBER 30, 1999 COMPARED TO THE NASDAQ 100
INDEX(A)<F31> AND THE LIPPER SCIENCE & TECHNOLOGY AVERAGE(B)<F32>.
DATE FIRSTAR STELLAR SCIENCE NASDAQ LIPPER SCIENCE &
& TECHNOLOGY FUND -- B SHARES 100 INDEX TECHNOLOGY AVERAGE
8/9/99 $10,000 $10,000 $10,000
11/30/99 $13,920(C)<F33> $13,412 $14,721
AVERAGE ANNUAL TOTAL RETURN (D)<F34> FOR THE PERIOD ENDED NOVEMBER 30, 1999
Start of Performance (8/9/99) (cumulative) 39.20%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
(a)<F31> 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. The index
is not adjusted to reflect sales charges, expenses, or other fees
that the SEC requires to be reflected in the Fund's performance.
(b)<F32> The Lipper Science & Technology Average represents the average of
the total returns reported by all of the mutual funds designated by
Lipper Analytical Services, Inc. as falling into the respective
category and is not adjusted to reflect any sales charges. However,
these returns are reported net of expenses or other fees that the
SEC requires to be reflected in the Fund's performance. The Lipper
performance shown is from the period August 5, 1999 through November
30, 1999.
(c)<F33> Represents a hypothetical investment of $10,000 in the Fund. The
ending value of the Fund reflects a 6.00% contingent deferred sales
charge on any redemption less than one year from the purchase date.
The Fund's performance assumes the reinvestment of all dividends and
distributions. The NASDAQ 100 Index and the Lipper Science &
Technology Average have been adjusted to reflect reinvestment of
dividends on securities in the index and average.
(d)<F34> Total return quoted reflects all applicable contingent deferred
sales charges.
Firstar Stellar Science & Technology Fund -- Y Shares
GROWTH OF $10,000 INVESTED IN FIRSTAR STELLAR SCIENCE & TECHNOLOGY FUND -- Y
SHARES
THE GRAPH BELOW ILLUSTRATES THE HYPOTHETICAL INVESTMENT OF $10,000 IN THE
FIRSTAR STELLAR SCIENCE & TECHNOLOGY FUND -- Y SHARES (THE "FUND") FROM AUGUST
9, 1999 (START OF PERFORMANCE) TO NOVEMBER 30, 1999 COMPARED TO THE NASDAQ 100
INDEX(A)<F35> AND THE LIPPER SCIENCE & TECHNOLOGY AVERAGE(B)<F36>.
DATE FIRSTAR STELLAR SCIENCE & NASDAQ LIPPER SCIENCE &
TECHNOLOGY FUND -- Y SHARES 100 INDEX TECHNOLOGY AVERAGE
8/9/99 $10,000 $10,000 $10,000
11/30/99 $14,560(c)<F37> $13,412 $14,721
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED NOVEMBER 30, 1999
Start of Performance (8/9/99) (cumulative) 45.60%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
(a)<F35> 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. The index
is not adjusted to reflect sales charges, expenses, or other fees
that the SEC requires to be reflected in the Fund's performance.
(b)<F36> The Lipper Science & Technology Average represents the average of
the total returns reported by all of the mutual funds designated by
Lipper Analytical Services, Inc. as falling into the respective
category and is not adjusted to reflect any sales charges. However,
these returns are reported net of expenses or other fees that the
SEC requires to be reflected in the Fund's performance. The Lipper
performance shown is from the period August 5, 1999 through November
30, 1999.
(c)<F37> Represents a hypothetical investment of $10,000 in the Fund. The
Fund's performance assumes the reinvestment of all dividends and
distributions. The NASDAQ 100 Index and the Lipper Science &
Technology Average have been adjusted to reflect reinvestment of
dividends on securities in the index and average.
Firstar Stellar Fund -- A Shares
GROWTH OF $10,000 INVESTED IN THE FIRSTAR STELLAR FUND -- A SHARES
THE GRAPH BELOW ILLUSTRATES THE HYPOTHETICAL INVESTMENT OF $10,000 IN THE
FIRSTAR STELLAR FUND -- A SHARES (THE "FUND") FROM OCTOBER 18, 1991 (START OF
PERFORMANCE) TO NOVEMBER 30, 1999 COMPARED TO THE STANDARD & POOR'S 500/LEHMAN
BROTHERS GOVERNMENT/CORPORATE TOTAL INDEX AND THE 5 CLASS INDEX(A)<F38>.
S&P 500/LEHMAN
DATE FIRSTAR STELLAR BROTHERS GOVERNMENT/
FUND -- A SHARES CORPORATE TOTAL INDEX 5 CLASS INDEX
10/18/91 $9,550 $10,000 $10,000
11/30/91 $9,359 $9,958 $9,863
11/30/92 $10,359 $11,343 $10,833
11/30/93 $11,599 $12,627 $12,414
11/30/94 $11,457 $12,465 $12,729
11/30/95 $13,253 $15,877 $14,917
11/30/96 $15,458 $18,473 $17,286
11/30/97 $17,307 $21,757 $19,701
11/30/98 $18,300 $25,457 $21,289
11/30/99 $19,564(b)<F39> $27,950 $22,733
AVERAGE ANNUAL TOTAL RETURN (C)<F40> FOR THE PERIOD ENDED NOVEMBER 30, 1999
One Year 2.10%
Five Year 10.28%
Start of Performance (10/18/91) 8.61%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
(a)<F38> The 5 Class Index consists of 20% each of the S&P 500, Lehman
Brothers Government/Corporate Total Index, 90-day U.S. Treasury
Bill, Morgan Stanley Europe, Australasia and Far East (EAFE) Index
and the National Association of Real Estate Investment Trusts
(NAREIT) Index. The Standard & Poor's 500/Lehman Brothers
Government/Corporate Total Index and the 5 Class Index are not
adjusted to reflect sales charges, expenses or other fees that the
SEC requires to be reflected in the Fund's performance. These
indices are unmanaged.
(b)<F39> Represents a hypothetical investment of $10,000 in the Fund after
deducting the maximum sales charge of 4.50% ($10,000 investment
minus $450 sales charge = $9,550). The Fund's performance assumes
the reinvestment of all dividends and distributions. The Standard &
Poor's 500/Lehman Brothers Government/Corporate Total Index and the
5 Class Index have been adjusted to reflect reinvestment of
dividends on securities in the indices.
(c)<F40> Total return quoted reflects all applicable sales charges.
Firstar Stellar Fund -- Y Shares
GROWTH OF $10,000 INVESTED IN THE FIRSTAR STELLAR FUND -- Y SHARES
THE GRAPH BELOW ILLUSTRATES THE HYPOTHETICAL INVESTMENT OF $10,000 IN THE
FIRSTAR STELLAR FUND -- Y SHARES (THE "FUND") FROM APRIL 6, 1994 (START OF
PERFORMANCE) TO NOVEMBER 30, 1999 COMPARED TO THE STANDARD & POOR'S 500/LEHMAN
BROTHERS GOVERNMENT/CORPORATE TOTAL INDEX AND THE 5 CLASS INDEX(A)<F41>.
S&P 500/LEHMAN
FIRSTAR STELLAR FUND _ BROTHERS GOVERNMENT/
DATE Y SHARES CORPORATE TOTAL INDEX 5 CLASS INDEX
4/6/94 $10,000 $10,000 $10,000
11/30/94 $9,819 $10,140 $10,039
11/30/95 $11,387 $12,915 $11,764
11/30/96 $13,316 $15,027 $13,632
11/30/97 $14,943 $17,699 $15,537
11/30/98 $15,855 $20,709 $16,790
11/30/99 $16,990(B)<F42> $22,737 $17,928
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED NOVEMBER 30, 1999
One Year 7.15%
Five Year 11.59%
Start of Performance (4/6/94) 9.84%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
(a)<F41> The 5 Class Index consists of 20% each of the S&P 500, Lehman Brothers
Government/Corporate Total Index, 90-day U.S. Treasury Bill, Morgan
Stanley Europe, Australasia and Far East (EAFE) Index and the
National Association of Real Estate Investment Trusts (NAREIT)
Index. The Standard & Poor's 500/Lehman Brothers
Government/Corporate Total Index and the 5 Class Index are not
adjusted to reflect sales charges, expenses or other fees that the
SEC requires to be reflected in the Fund's performance. These
indices are unmanaged.
(b)<F42> Represents a hypothetical investment of $10,000 in the Fund. The
Fund's performance assumes the reinvestment of all dividends and
distributions. The Standard & Poor's 500/Lehman Brothers
Government/Corporate Trust Index and the 5 Class Index have been
adjusted to reflect reinvestment of dividends on securities in the
indices.
Firstar Stellar Capital Appreciation Fund
GROWTH OF $10,000 INVESTED IN FIRSTAR STELLAR CAPITAL APPRECIATION FUND
THE GRAPH BELOW ILLUSTRATES THE HYPOTHETICAL INVESTMENT OF $10,000 IN THE
FIRSTAR STELLAR CAPITAL APPRECIATION FUND (THE "FUND") FROM JUNE 13, 1994 (START
OF PERFORMANCE) TO NOVEMBER 30, 1999 COMPARED TO THE S&P MIDCAP 400
INDEX(A)<F43>.
DATE FIRSTAR STELLAR CAPITAL APPRECIATION FUND S&P MIDCAP 400 INDEX
6/13/94 $9,550 $10,000
11/30/94 $9,693 $10,022
11/30/95 $11,375 $13,185
11/30/96 $12,393 $15,664
11/30/97 $14,160 $19,961
11/30/98 $14,833 $22,037
11/30/99 $15,552(B)<F44> $26,742
AVERAGE ANNUAL TOTAL RETURN(C)<F45> FOR THE PERIOD ENDED NOVEMBER 30, 1999
One Year 0.16%
Five Year 8.91%
Start of Performance (6/13/94) 8.41%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
(a)<F43> The S&P Midcap 400 Index is an unmanaged index of 400 domestic
stocks created by Standard & Poor's Corporation which measures the
performance of the mid-range section of the U.S. stock market. The
index is not adjusted to reflect sales charges, expenses, or other
fees that the SEC requires to be reflected in the Fund's
performance.
(b)<F44> Represents a hypothetical investment of $10,000 in the Fund after
deducting the maximum sales charge of 4.50% ($10,000 investment
minus $450 sales charge = $9,550). The Fund's performance assumes
the reinvestment of all dividends and distributions. The S&P Midcap
400 Index has been adjusted to reflect reinvestment of dividends on
securities in the index.
(c)<F45> Total return quoted reflects all applicable sales charges.
Firstar Stellar International Equity Fund
GROWTH OF $10,000 INVESTED IN FIRSTAR STELLAR INTERNATIONAL EQUITY FUND
THE GRAPH BELOW ILLUSTRATES THE HYPOTHETICAL INVESTMENT OF $10,000 IN THE
FIRSTAR STELLAR INTERNATIONAL EQUITY FUND (THE "FUND") FROM DECEMBER 3, 1997
(START OF PERFORMANCE) TO NOVEMBER 30, 1999 COMPARED TO THE MORGAN STANLEY
EUROPE, AUSTRALASIA AND FAR EAST (EAFE) INDEX(A)<F46>.
DATE FIRSTAR STELLAR INTERNATIONAL EQUITY FUND EAFE INDEX
12/3/97 $9,850 $10,000
11/30/98 $10,239 $11,474
11/30/99 $13,151(b)<F47> $13,705
AVERAGE ANNUAL TOTAL RETURN(C)<F48> FOR THE PERIOD ENDED NOVEMBER 30, 1999
One Year 26.49%
Start of Performance (12/3/97) 14.73%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
(a)<F46> The EAFE Index is an unmanaged index which is widely used to measure
the performance of European, Australian, New Zealand and Far Eastern
stock markets. The index is composed of securities drawn from 21
countries in these regions. The index is not adjusted to reflect
sales charges, expenses or other fees that the SEC requires to be
reflected in the Fund's performance.
(b)<F47> Represents a hypothetical investment of $10,000 in the Fund after
deducting the maximum sales charge of 1.50% ($10,000 investment
minus $150 sales charge = $9,850). The Fund's performance assumes
the reinvestment of all dividends and distributions.
(c)<F48> Total return quoted reflects all applicable sales charges.
Portfolios of Investments
Firstar Stellar Growth Equity Fund November 30, 1999
CONTRACTS, SHARES
OR PRINCIPAL AMOUNT VALUE
- ------------------- -----
COMMON STOCKS - 97.9%
AEROSPACE - 0.2%
25,000 Lockheed Martin Corp. $496,875
------------
AIRLINES - 0.4%
15,000 UAL Corp. *<F49> 1,031,250
------------
AUTOMOBILE - 1.0%
55,000 Ford Motor Co. 2,777,500
------------
BANKING - 5.4%
42,812 Bank of America Corp. 2,504,502
72,500 Citigroup Inc. 3,905,937
65,000 FleetBoston Financial Corp. 2,457,812
50,000 First Union Corp. 1,934,375
22,100 J.P. Morgan & Co., Inc. 2,906,150
60,000 North Fork Bancorporation, Inc. 1,207,500
------------
Total 14,916,276
------------
BROADCASTING - 1.5%
52,000 Clear Channel Communications, Inc. *<F49> 4,179,500
------------
BROKERAGE SERVICES - 1.9%
22,000 Merrill Lynch & Co., Inc. 1,773,750
30,000 Morgan Stanley, Dean Witter & Co. 3,618,750
------------
Total 5,392,500
------------
CHEMICALS - 2.0%
28,000 Dow Chemical Co. 3,279,500
60,000 Rohm and Haas Co. 2,197,500
------------
Total 5,477,000
------------
COMMUNICATION EQUIPMENT - 3.3%
75,092 Lucent Technologies, Inc. 5,486,409
73,000 Telefonaktiebolaget LM Ericsson,
Class B, ADR 3,517,688
------------
Total 9,004,097
------------
COMPUTER PERIPHERAL - 3.9%
78,000 EMC Corp. *<F49> 6,517,875
50,000 Lexmark International Group, Inc.,
Class A *<F49> 4,150,000
------------
Total 10,667,875
------------
COMPUTER PRODUCTS & SERVICES - 8.5%
47,500 America Online, Inc. *<F49> 3,452,656
178,700 Cisco Systems, Inc. *<F49> 15,937,806
32,000 Computer Sciences Corp. *<F49> 2,088,000
20,000 Hewlett-Packard Co. 1,897,500
------------
Total 23,375,962
------------
COMPUTERS & SOFTWARE - 11.2%
10,000 BMC Software, Inc. *<F49> 728,125
40,000 Dell Computer Corp. *<F49> 1,720,000
86,000 Microsoft Corp. *<F49> 7,830,031
90,000 Oracle Corp. *<F49> 6,103,125
50,000 Siebel Systems, Inc. *<F49> 3,506,250
85,000 Sun Microsystems, Inc. *<F49> 11,241,250
------------
Total 31,128,781
------------
COSMETICS & TOILETRIES - 0.6%
25,000 Kimberly-Clark Corp. 1,596,875
------------
DRUGS - 7.2%
30,000 American Home Products Corp. 1,560,000
52,000 Bristol-Myers Squibb Co. 3,799,250
77,000 Merck & Co., Inc. 6,044,500
78,000 Pfizer Inc. 2,822,625
40,000 Warner-Lambert Co. 3,587,500
60,000 Watson Pharmaceuticals, Inc. *<F49> 2,231,250
------------
Total 20,045,125
------------
ELECTRIC - 0.8%
65,000 GPU, Inc. 2,080,000
------------
ELECTRICAL EQUIPMENT - 2.0%
41,550 General Electric Co. 5,401,500
------------
ELECTRONIC TECHNOLOGY - 4.0%
82,680 Intel Corp. 6,340,523
50,000 Texas Instruments Inc. 4,803,125
------------
Total 11,143,648
------------
FOOD & BEVERAGE - 1.4%
50,000 Campbell Soup Co. 2,231,250
48,000 PepsiCo, Inc. 1,659,000
------------
Total 3,890,250
------------
GOVERNMENT AGENCY - 2.9%
75,000 Fannie Mae 4,996,875
59,500 SLM Holding Corp. 2,948,969
------------
Total 7,945,844
------------
HEALTH TECHNOLOGY - 0.9%
50,000 Guidant Corp. 2,500,000
------------
HOUSEHOLD PRODUCTS - 4.3%
90,000 Clorox Co. 4,010,625
73,658 Procter & Gamble Co. 7,955,064
------------
Total 11,965,689
------------
INSURANCE - 4.1%
85,000 Allstate Corp. 2,225,938
89,013 American International Group, Inc. 9,190,592
------------
Total 11,416,530
------------
MANUFACTURING - 2.2%
94,164 Illinois Tool Works Inc. 6,097,162
------------
MEDICAL PRODUCTS & SERVICES - 2.5%
62,250 Cardinal Health, Inc. 3,256,453
92,030 Medtronic, Inc. 3,577,666
------------
Total 6,834,119
------------
METALS & MINING - 1.4%
60,000 Alcoa Inc. 3,930,000
------------
MULTI-INDUSTRY - 0.9%
41,058 Allied-Signal, Inc. 2,455,782
------------
NATURAL GAS - 0.9%
72,300 Coastal Corp. 2,548,575
------------
OFFICE EQUIPMENT - 0.7%
19,000 International Business Machines Corp. 1,958,188
------------
OIL - 5.2%
2,500 Ashland Inc. 84,375
46,466 BP Amoco PLC, ADR 2,831,522
35,000 Chevron Corp. 3,099,688
42,600 Mobil Corp. 4,443,713
32,000 Texaco Inc. 1,950,000
30,000 Tosco Corp. 811,875
25,000 USX-Marathon Group 660,938
25,000 Valero Energy Corp. 518,750
------------
Total 14,400,861
------------
PRODUCER MANUFACTURING - 2.9%
45,000 Masco Corp. 1,136,250
102,500 Parker-Hannifin Corp. 4,823,906
30,000 Textron, Inc. 2,131,875
------------
Total 8,092,031
------------
RETAIL TRADE - 6.4%
115,000 Federated Department Stores, Inc. *<F49> 5,412,188
5,000 Federated Department Stores, Inc.,
warrants, 12/19/2001 *<F49> 103,750
50,000 Gap (The), Inc. 2,025,000
61,600 Kohl's Corp. *<F49> 4,446,750
66,244 Safeway, Inc. *<F49> 2,442,748
55,000 Wal-Mart Stores, Inc. 3,169,375
------------
Total 17,599,811
------------
TELECOMMUNICATIONS - 6.1%
100,000 Alcatel SA ADR 3,806,250
37,500 AT&T Corp. 2,095,312
23,040 Bell Atlantic Corp. 1,458,720
56,000 BellSouth Corp. 2,586,500
15,600 GTE Corp. 1,138,800
45,000 MCI Worldcom, Inc. *<F49> 3,720,937
46,000 Vodafone Group PLC, ADR 2,170,625
------------
Total 16,977,144
------------
UTILITIES - ELECTRIC - 1.2%
30,000 Duke Energy Corp. 1,520,625
50,000 Texas Utilities Co. 1,790,625
------------
Total 3,311,250
------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $151,538,211) 270,638,000
------------
EQUITY MUTUAL FUND - 0.1%
19,063 Dean Large Cap Value Fund, Class A 203,399
------------
TOTAL EQUITY MUTUAL FUND
(IDENTIFIED COST $202,868) 203,399
------------
OPTIONS PURCHASED - 0.0%
CALL OPTIONS - 0.0%
75 Allstate Corp., expires 1/22/2000,
exercise price $25 19,687
------------
PUT OPTIONS - 0.0%
200 Intel Corp., expires 12/18/1999,
exercise price $70 48,750
200 Intel Corp., expires 1/22/2000,
exercise price $75 80,000
------------
Total 128,750
------------
TOTAL OPTIONS PURCHASED
(IDENTIFIED COST $97,681) 148,437
------------
SHORT-TERM INVESTMENTS - 1.9%
MONEY MARKET MUTUAL FUNDS - 1.5%
1,751,986 Government Money Market Fund 1,751,986
2,500,000 RNC Money Market Fund 2,500,000
------------
TOTAL MONEY MARKET MUTUAL FUNDS 4,251,986
------------
REPURCHASE AGREEMENT - 0.4%
$1,131,000 Donaldson, Lufkin and Jenrette
Securities Corp., 5.70%, dated
11/30/1999, due 12/1/1999,
repurchase price $1,131,178
(Collateralized by U.S.
Government Securities) 1,131,000
------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $5,382,986) 5,382,986
------------
TOTAL INVESTMENTS - 99.9%
(IDENTIFIED COST $157,221,746) 276,372,822
------------
OTHER ASSETS, LESS LIABILITIES - 0.1% 272,418
------------
TOTAL NET ASSETS - 100.0% $276,645,240
------------
------------
SCHEDULE OF CALL OPTIONS WRITTEN
100 America Online, Inc., expires
1/22/2000, exercise price $92.50 $20,000
50 GTE Corp., expires 1/22/2000,
exercise price $75 13,750
250 Lockheed Martin Corp., expires
12/18/1999, exercise price $50 6,250
------------
TOTAL CALL OPTIONS WRITTEN
(PREMIUMS RECEIVED $41,349) 40,000
------------
SCHEDULE OF PUT OPTIONS WRITTEN
50 QUALCOMM Inc., expires12/18/1999,
exercise price $280 8,125
------------
TOTAL PUT OPTIONS WRITTEN
(PREMIUMS RECEIVED $10,950) 8,125
------------
TOTAL OPTIONS WRITTEN
(PREMIUMS RECEIVED $52,299) $48,125
------------
------------
*<F49> Non-income producing
ADR -- American Depository Receipt
PLC -- Public Limited Company
(See Notes to Financial Statements.)
Firstar Stellar Relative Value Fund November 30, 1999
SHARES OR
PRINCIPAL AMOUNT VALUE
- ---------------- -----
COMMON STOCKS - 98.3%
AEROSPACE - 1.6%
75,000 Honeywell, Inc. $8,395,313
------------
APPLIANCES - 1.1%
100,000 Whirlpool Corp. 6,100,000
------------
AUTOMOBILE - 2.1%
130,000 Ford Motor Co. 6,565,000
65,000 General Motors Corp. 4,680,000
------------
Total 11,245,000
------------
AUTOMOTIVE & RELATED - 1.3%
130,000 Goodyear Tire & Rubber Co. 4,387,500
50,000 Johnson Controls, Inc. 2,725,000
------------
Total 7,112,500
------------
BANKS & SAVINGS INSTITUTIONS - 15.3%
243,230 AmSouth Bancorporation 5,487,877
130,000 Bank of America Corp. 7,605,000
300,000 Bank of New York Co., Inc. 11,962,500
322,500 Citigroup Inc. 17,374,687
175,000 First Financial Bancorp 3,926,563
165,000 First Tennessee National Corp. 5,424,375
200,000 Mellon Bank Corp. 7,287,500
160,000 North Fork Bancorporation, Inc. 3,220,000
100,000 PNC Bank Corp. 5,575,000
100,000 TCF Financial Corp. 2,831,250
250,000 Union Planters Corp. 10,656,250
------------
Total 81,351,002
------------
CHEMICALS - 2.2%
275,000 Monsanto Co. 11,601,562
------------
DIVERSIFIED - 1.1%
100,000 Allied-Signal, Inc. 5,981,250
------------
DRUGS - 11.5%
200,000 American Home Products Corp. 10,400,000
260,000 Bristol-Myers Squibb Co. 18,996,250
207,000 Merck & Co., Inc. 16,249,500
240,000 Smithkline Beecham Corp., ADR 15,960,000
------------
Total 61,605,750
------------
ELECTRICAL EQUIPMENT - 3.7%
150,000 General Electric Co. 19,500,000
------------
ELECTRONICS - 7.7%
540,000 Intel Corp. 41,411,250
------------
ENERGY - 2.2%
100,000 Duke Energy Corp. 5,068,750
190,000 Texas Utilities Co. 6,804,375
------------
Total 11,873,125
------------
HOUSEHOLD PRODUCTS - 7.0%
230,000 Gillette Co. 9,243,125
260,000 Procter & Gamble Co. 28,080,000
------------
Total 37,323,125
------------
INSURANCE - 2.8%
170,000 Cincinnati Financial Corp. 5,695,000
600,000 Ohio Casualty Corp. 9,243,750
------------
Total 14,938,750
------------
MANUFACTURING - 2.2%
160,000 Lucent Technologies Inc. 11,690,000
------------
MISC. FINANCIAL SERVICES - 2.1%
75,000 American Express Co. 11,348,438
------------
OFFICE & BUSINESS EQUIPMENT - 7.3%
380,000 International Business Machines Corp. 39,163,750
------------
OIL - 9.2%
70,000 Atlantic Richfield Co. 6,746,250
148,000 Mobil Corp. 15,438,250
156,000 Royal Dutch Petroleum Co., ADR 9,048,000
300,000 Texaco, Inc. 18,281,250
------------
Total 49,513,750
------------
PHOTO EQUIPMENT & SUPPLIES - 0.8%
70,000 Eastman Kodak Co. 4,331,250
------------
RETAILING & APPAREL - 1.8%
200,000 Federated Department Stores, Inc. *<F50> 9,412,500
------------
TELECOMMUNICATIONS - 11.3%
253,500 AT&T Corp. 14,164,312
800,000 BroadWing Inc. *<F50> 23,300,000
67,000 Cable & Wireless Communications
PLC, ADR 2,663,250
152,000 GTE Corp. 11,096,000
195,000 Vodafone AirTouch PLC, ADR 9,201,562
------------
Total 60,425,124
------------
TOBACCO - 1.7%
350,000 Philip Morris Cos., Inc. 9,209,375
------------
UTILITIES - ELECTRIC - 2.3%
250,000 Cinergy Corp. 6,328,125
190,000 GPU, Inc. 6,080,000
------------
Total 12,408,125
------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $276,942,111) 525,940,939
------------
SHORT-TERM INVESTMENT - 0.5%
REPURCHASE AGREEMENT - 0.5%
$2,868,000 Donaldson, Lufkin and Jenrette
Securities Corp., 5.70%, dated
11/30/1999, due 12/1/1999, repurchase
price $2,868,454 (Collateralized by
U.S. Government Securities) 2,868,000
------------
TOTAL SHORT-TERM INVESTMENT
(IDENTIFIED COST $2,868,000) 2,868,000
------------
TOTAL INVESTMENTS - 98.8%
(IDENTIFIED COST $279,810,111) 528,808,939
------------
OTHER ASSETS, LESS LIABILITIES - 1.2% 6,498,094
------------
TOTAL NET ASSETS - 100.0% $535,307,033
------------
------------
*<F50> Non-income producing
ADR -- American Depository Receipt
PLC -- Public Limited Company
(See Notes to Financial Statements.)
Firstar Stellar Science & Technology Fund November 30, 1999
SHARES, PRINCIPAL
AMOUNT OR CONTRACTS VALUE
- ------------------- -----
COMMON STOCKS - 95.7%
COMPUTER PERIPHERAL - 4.3%
10,681 EMC Corp. *<F51> $892,564
10,900 Lexmark International
Group, Inc., Class A *<F51> 904,700
-----------
Total 1,797,264
-----------
COMPUTER PRODUCTS & SERVICES - 20.5%
10,600 America Online, Inc. *<F51> 770,813
4,500 Ariba, Inc. *<F51> 812,531
4,100 Brocade Communications Systems, Inc. *<F51> 1,193,431
10,300 Cisco Systems, Inc. *<F51> 918,631
7,700 F5 Networks, Inc. *<F51> 871,063
3,700 Foundry Networks, Inc. *<F51> 869,962
13,600 iXL Enterprises, Inc. *<F51> 489,600
3,600 Juniper Networks, Inc. 997,650
3,500 SonicWALL, Inc. *<F51> 119,656
13,100 Vixel Corp. *<F51> 445,400
5,500 Yahoo! Inc. *<F51> 1,170,547
-----------
Total 8,659,284
-----------
COMPUTERS - 4.6%
4,500 Apple Computer, Inc. *<F51> 440,438
10,100 Dell Computer Corp. *<F51> 434,300
8,100 Sun Microsystems, Inc. *<F51> 1,071,225
-----------
Total 1,945,963
-----------
COMPUTER SOFTWARE - 22.9%
12,700 Adobe Systems Inc. 872,331
11,500 BMC Software, Inc. *<F51> 839,218
14,400 BroadVision, Inc. *<F51> 1,340,100
9,800 Citrix Systems, Inc. *<F51> 929,775
10,800 Computer Associates International, Inc. 702,000
5,700 Inktomi Corp. *<F51> 735,656
9,900 Microsoft Corp. *<F51> 901,364
11,500 Oracle Corp. *<F51> 780,469
13,400 Siebel Systems, Inc. *<F51> 939,675
12,400 Symantec Corp. *<F51> 578,925
11,450 VERITAS Software Corp. *<F51> 1,048,078
-----------
Total 9,667,591
-----------
DRUGS - 8.4%
7,000 American Home Products Corp. 364,000
5,200 Biogen, Inc. *<F51> 379,925
6,100 Eli Lilly and Co. 437,675
4,600 MedImmune, Inc. *<F51> 552,863
6,200 Merck & Co., Inc. 486,700
9,100 Schering-Plough Corp. 465,238
5,500 Warner-Lambert Co. 493,281
10,100 Watson Pharmaceuticals, Inc. *<F51> 375,594
-----------
Total 3,555,276
-----------
ELECTRONICS - 0.1%
500 Finisar Corp. *<F51> 57,625
-----------
ELECTRONICS - SEMICONDUCTORS - 15.1%
5,200 Applied Materials, Inc. *<F51> 506,675
2,500 Chartered Semiconductor
Manufacturing Ltd., ADR *<F51> 133,125
7,300 Intel Corp. 559,819
5,400 JDS Uniphase Corp. *<F51> 1,235,250
9,300 PMC-Sierra, Inc. *<F51> 958,481
7,300 QLogic Corp. *<F51> 825,812
8,100 SDL, Inc. *<F51> 1,318,275
18,400 Vitesse Semiconductor Corp. *<F51> 829,150
-----------
Total 6,366,587
-----------
ELECTRONIC TECHNOLOGY - 1.9%
8,400 Texas Instruments Inc. 807,250
-----------
MEDICAL PRODUCTS & SERVICES - 4.2%
11,000 Amgen Inc. *<F51> 501,562
17,000 Anika Therapeutics, Inc. *<F51> 106,250
9,000 Genzyme Corp. *<F51> 324,000
4,400 Johnson & Johnson 456,500
10,400 Medtronic, Inc. 404,300
-----------
Total 1,792,612
-----------
SPDRS - 0.7%
6,300 AMEX Select Sector SPDR
Technology Fund 294,033
-----------
TELECOMMUNICATIONS & EQUIPMENT - 13.0%
9,300 CenturyTel, Inc. 427,800
7,400 Comverse Technology, Inc. *<F51> 894,475
5,000 Copper Mountain Networks, Inc. *<F51> 417,188
4,000 Lucent Technologies, Inc. 292,250
6,700 MCI WorldCom, Inc. *<F51> 554,257
6,100 Nokia Corp., ADR 846,269
3,600 QUALCOMM Inc. *<F51> 1,304,325
8,400 VoiceStream Wireless Corp. *<F51> 774,900
-----------
Total 5,511,464
-----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $30,629,738) 40,454,949
-----------
PUT OPTIONS PURCHASED - 0.0%
2,000 Apple Computer, Inc., expires
12/18/1999, exercise price $70 250
-----------
TOTAL PUT OPTIONS PURCHASED
(IDENTIFIED COST $10,600) 250
-----------
SHORT-TERM INVESTMENT - 6.8%
REPURCHASE AGREEMENT - 6.8%
$2,897,000 Donaldson, Lufkin and Jenrette
Securities Corp., 5.70%, dated
11/30/1999, due 12/1/1999,
repurchase price $2,897,459
(Collateralized by U.S.
Government Securities) 2,897,000
-----------
TOTAL SHORT-TERM INVESTMENT
(IDENTIFIED COST $2,897,000) 2,897,000
-----------
TOTAL INVESTMENTS - 102.5%
(IDENTIFIED COST $33,526,738) 43,352,199
-----------
LIABILITIES, LESS OTHER ASSETS - (2.5)% (1,071,486)
-----------
TOTAL NET ASSETS - 100.0% $42,280,713
-----------
-----------
SCHEDULE OF CALL OPTIONS WRITTEN
30 Dell Computer Corp., expires
12/18/1999, exercise price $45 $2,813
50 Inktomi Corp., expires 12/18/1999,
exercise price $105 123,750
20 Lucent Technologies, Inc., expires
12/18/1999, exercise price $65 16,500
5 QUALCOMM Inc., expires 12/18/1999,
exercise price $330 22,250
5 QUALCOMM Inc., expires 4/22/2000,
exercise price $420 26,500
-----------
TOTAL CALL OPTIONS WRITTEN
(PREMIUMS RECEIVED $89,124) 191,813
-----------
SCHEDULE OF PUT OPTIONS WRITTEN
30 International Business Machines Corp.,
expires 1/22/2000, exercise price $95 9,375
15 JDS Uniphase Corp., expires 12/18/1999,
exercise price $210 14,437
10 MCI WorldCom, Inc., expires 12/18/1999,
exercise price $85 4,125
-----------
TOTAL PUT OPTIONS WRITTEN
(PREMIUMS RECEIVED $16,127) 27,937
-----------
TOTAL OPTIONS WRITTEN
(PREMIUMS RECEIVED $105,251) $219,750
-----------
-----------
*<F51> Non-income producing
ADR -- American Depository Receipt
(See Notes to Financial Statements.)
Firstar Stellar Fund November 30, 1999
SHARES OR
PRINCIPAL AMOUNT VALUE
- ---------------- -----
U.S. EQUITIES - 25.3%
BASIC INDUSTRY - 0.3%
CHEMICALS - 0.1%
1,000 Dow Chemical Co. $117,125
-----------
METALS & MINING - 0.2%
2,600 Alcoa Inc. 170,300
-----------
TOTAL BASIC INDUSTRY 287,425
-----------
CAPITAL GOODS - 6.9%
COMPUTER PERIPHERAL - 0.4%
4,000 Lexmark International
Group, Inc., Class A*<F52> 332,000
-----------
COMPUTERS & SOFTWARE - 4.5%
4,000 BMC Software, Inc. *<F52> 291,250
14,800 Lucent Technologies Inc. 1,081,325
16,950 Oracle Corp. *<F52> 1,149,422
10,800 Sun Microsystems, Inc. *<F52> 1,428,300
-----------
Total 3,950,297
-----------
ELECTRICAL EQUIPMENT - 0.8%
5,400 Emerson Electric Co. 307,800
2,700 General Electric Co. 351,000
-----------
Total 658,800
-----------
ELECTRONICS - 1.2%
14,000 Intel Corp. 1,073,625
-----------
TOTAL CAPITAL GOODS 6,014,722
-----------
CONSUMER CYCLICAL - 3.1%
RETAILING & APPAREL - 3.1%
10,000 Dayton Hudson Corp. 705,625
18,000 Gap (The), Inc. 729,000
9,000 Safeway, Inc. *<F52> 331,875
16,800 Wal-Mart Stores, Inc. 968,100
-----------
Total 2,734,600
-----------
TOTAL CONSUMER CYCLICAL 2,734,600
-----------
CONSUMER STAPLES - 1.6%
FOOD & BEVERAGE - 0.8%
18,000 Sysco Corp. 685,125
-----------
HOUSEHOLD PRODUCTS - 0.6%
5,000 Procter & Gamble Co. 540,000
-----------
TOBACCO - 0.2%
5,000 Philip Morris Cos., Inc. 131,562
-----------
TOTAL CONSUMER STAPLES 1,356,687
-----------
DIVERSIFIED - 0.5%
7,000 Allied-Signal, Inc. 418,688
-----------
ENERGY - 2.0%
ENERGY - 0.5%
8,044 SBC Communications, Inc. 417,785
-----------
ENERGY SERVICE & EQUIPMENT - 0.1%
2,000 Schlumberger Ltd. 120,125
-----------
INTERNATIONAL OIL - 1.1%
5,200 Chevron Corp. 460,525
5,000 Mobil Corp. 521,562
-----------
Total 982,087
-----------
NATURAL GAS - 0.3%
8,500 Coastal Corp. 299,625
-----------
TOTAL ENERGY 1,819,622
-----------
FINANCE - 2.9%
INSURANCE - 0.9%
7,500 American International Group, Inc. 774,375
-----------
OTHER FINANCE - 2.0%
9,967 Citigroup Inc. 536,972
7,200 Fannie Mae 479,700
6,000 Morgan Stanley, Dean Witter & Co. 723,750
-----------
Total 1,740,422
-----------
TOTAL FINANCE 2,514,797
-----------
HEALTH CARE - 3.0%
MEDICAL DEVICES - 1.1%
13,000 Guidant Corp. 650,000
7,762 Medtronic, Inc. 301,748
-----------
Total 951,748
-----------
PHARMACEUTICALS - 1.9%
6,500 American Home Products Corp. 338,000
8,000 Bristol-Myers Squibb Co. 584,500
10,500 Pfizer Inc. 379,969
10,000 Watson Pharmaceuticals, Inc. *<F52> 371,875
-----------
Total 1,674,344
-----------
TOTAL HEALTH CARE 2,626,092
-----------
MUTUAL FUND - 1.7%
77,865 Gateway Cincinnati Fund 1,523,813
-----------
REAL ESTATE - 2.1%
30,000 Cadillac Fairview Corp. *<F52> 615,000
15,000 Catellus Development Corp. *<F52> 194,062
16,500 Starwood Hotels & Resorts
Worldwide, Inc. 368,156
42,000 TrizecHahn Corp. 690,375
-----------
TOTAL REAL ESTATE 1,867,593
-----------
TELECOMMUNICATIONS - 1.2%
5,600 GTE Corp. 408,800
8,000 MCI Worldcom, Inc. *<F52> 661,500
-----------
TOTAL TELECOMMUNICATIONS 1,070,300
-----------
TOTAL U.S. EQUITIES
(IDENTIFIED COST $10,890,295) 22,234,339
-----------
INTERNATIONAL SECURITIES - 24.0%
INTERNATIONAL EQUITIES - 22.2%
ARGENTINA - 0.2%
4,200 YPF Sociedad Anonima, ADR 161,700
-----------
AUSTRALIA - 0.9%
2,900 National Australia Bank, Ltd.,
Melbourne, ADR 210,069
11,900 News Corp., Ltd., ADR 407,575
6,700 News Corp., Ltd., ADR, Preferred 207,281
-----------
Total 824,925
-----------
CANADA - 1.5%
4,000 Alcan Aluminum, Ltd. 136,000
5,000 Bank of Montreal Que 179,688
10,400 Nortel Networks Corp. 769,600
5,000 Seagram Co. Ltd. 217,812
-----------
Total 1,303,100
-----------
DENMARK - 0.3%
4,500 Novo-Nordisk, ADR 295,875
-----------
FINLAND - 1.3%
8,000 OY Nokia AB, Class A, ADR 1,105,500
-----------
FRANCE - 1.8%
10,000 Alcatel Alsthom, ADR 380,625
8,000 AXA-UAP, ADR 534,500
3,000 Danone, ADR 141,187
1,900 Elf Aquitaine SA, ADR 147,012
6,000 Rhone-Poulenc, ADR 369,375
-----------
Total 1,572,699
-----------
GERMANY, FEDERAL REPUBLIC OF - 2.2%
470 Celanese AG 7,285
3,000 Commerzbank AG, Frankfurt, ADR 97,416
5,500 DaimlerChrysler AG 374,687
4,700 Hoechst AG, ADR 209,557
2,000 Mannesmann AG, ADR 415,643
8,000 SAP AG, ADR 268,500
3,500 Siemens AG, ADR 352,763
3,500 Veba AG, ADR 171,937
-----------
Total 1,897,788
-----------
HONG KONG - 0.3%
25,000 Sun Hung Kai Properties Ltd., ADR 228,547
-----------
ITALY - 0.8%
20,000 Luxottica Group S.p.A., ADR 350,000
3,100 Telecom Italia S.p.A., ADR 334,412
-----------
Total 684,412
-----------
JAPAN - 1.0%
500 Bridgestone Corp., ADR 123,306
7,300 Canon, Inc., ADR 215,350
2,800 Sony Corp., ADR 515,725
-----------
Total 854,381
-----------
MEXICO - 0.2%
2,300 Telefonos de Mexico, Class L, ADR 212,894
-----------
NETHERLANDS - 3.4%
24,397 ABN-AMRO Holdings NV, ADR 596,202
2,800 Equant NV, ADR *<F52> 263,900
9,400 Fortis Amev NV, ADR 322,085
4,000 Heineken NV, ADR 193,322
8,500 ING Groep NV, ADR 480,250
8,000 Koninklijke Ahold NV, ADR 256,000
3,220 Koninklijke Philips Electronics NV, ADR 384,790
2,500 Royal Dutch Petroleum Co., ADR 145,000
5,714 Unilever NV, ADR 311,056
-----------
Total 2,952,605
-----------
SPAIN - 0.5%
6,600 Repsol SA, ADR 143,550
5,692 Telefonica SA, ADR 353,592
-----------
Total 497,142
-----------
SWEDEN - 0.9%
12,500 Telefonaktiebolaget LM Ericsson,
Class B, ADR 602,344
8,000 Volvo AB, ADR 192,000
-----------
Total 794,344
-----------
SWITZERLAND - 1.5%
1,500 Nestle SA, ADR 134,925
3,500 Novartis AG, ADR 272,695
2,000 Roche Holding AG, ADR 241,376
16,500 UBS AG, ADR 225,583
800 Zurich Allied AG 458,105
-----------
Total 1,332,684
-----------
UNITED KINGDOM - 5.4%
4,036 AstraZeneca Group plc, ADR 179,602
9,000 BP Amoco PLC, ADR 548,438
5,000 Barclays Bank PLC, London, ADR 581,563
4,000 British Sky Broadcasting Group plc, ADR 312,000
13,800 Cable & Wireless
Communications PLC, ADR 548,550
2,500 COLT Telecom Group plc, ADR *<F52> 372,812
4,500 Glaxo Wellcome PLC, ADR 267,469
5,000 Reuters Holdings PLC, ADR 327,500
4,000 Smithkline Beecham Corp., ADR 266,000
6,000 TeleWest Communications plc, ADR *<F52> 291,750
15,000 Vodafone AirTouch PLC, ADR 707,812
4,000 WPP Group plc, ADR 290,000
-----------
Total 4,693,496
-----------
TOTAL INTERNATIONAL EQUITIES 19,412,092
-----------
CLOSED-END INVESTMENT COMPANIES - 1.8%
8,000 Italy Fund, Inc. (The) 115,500
20,000 Japan Equity Fund, Inc. (The) 190,000
13,500 Mexico Fund (The) 220,219
53,300 Morgan Stanley Asia-Pacific Fund 556,319
45,100 Templeton Dragon Fund, Inc. 405,900
6,500 WEBS Italy Index Fund, Inc. 140,562
-----------
TOTAL CLOSED-END INVESTMENT COMPANIES 1,628,500
-----------
TOTAL INTERNATIONAL SECURITIES
(IDENTIFIED COST $13,487,145) 21,040,592
-----------
REAL ESTATE INVESTMENT TRUSTS - 14.7%
13,000 Apartment Investment and
Management Co. 483,438
26,071 Archstone Communities Trust 523,049
23,756 Avalonbay Communities, Inc. 769,101
30,000 BRE Properties, Inc., Class A 690,000
18,000 Bedford Property Investors, Inc. 308,250
12,000 Boston Properties, Inc. 339,750
10,000 Brandywine Realty Trust 168,125
15,000 CBL & Associates Properties, Inc. 327,187
15,000 CBL & Associates Properties, Inc., Rights 0
13,000 Camden Property Trust 347,750
12,000 CarrAmerica Realty Corp. 249,000
15,000 Chelsea GCA Realty, Inc. 464,063
24,000 Duke-Weeks Realty Corp. 444,000
25,000 EastGroup Properties, Inc. 434,375
22,875 Equity Office Properties Trust 501,820
9,000 Equity Residential Properties Trust 361,688
10,000 Healthcare Realty Trust, Inc. 165,625
38,000 Host Marriott Corp. 353,875
36,000 JDN Realty Corp. 591,750
22,250 Kimco Realty Corp. 739,813
12,000 Koger Equity, Inc. 188,250
35,000 LaSalle Hotel Properties 415,625
5,000 Lexington Corporate Properties Trust 52,812
13,000 Liberty Property Trust 296,562
25,000 Mack-Cali Realty Corp. 617,187
21,000 MeriStar Hospitality Corp. 325,500
32,000 Pacific Gulf Properties, Inc. 644,000
12,000 Public Storage, Inc. 273,750
8,000 Realty Income Corp. 174,500
18,080 Simon DeBartolo Group, Inc. 421,490
5,000 Spieker Properties, Inc. 175,000
7,000 Storage USA, Inc. 189,000
16,800 Summit Properties, Inc. 306,600
14,000 Vornado Realty Trust 441,875
-----------
TOTAL REAL ESTATE INVESTMENT TRUSTS
(IDENTIFIED COST $13,211,467) 12,784,810
-----------
FIXED INCOME OBLIGATIONS - 21.7%
AUTOMOTIVE & RELATED - 0.5%
$200,000 Ford Motor Credit Corp.,
Unsecd. Note, 6.11%, 12/28/2001 197,716
250,000 Ford Motor Co., Unsecd. Note,
6.375%, 2/1/2029 214,275
-----------
Total 411,991
-----------
CLOSED-END INVESTMENT COMPANY - 0.6%
50,000 First Commonwealth Fund Inc. 487,500
-----------
ENERGY - 0.3%
$250,000 Ashland, Inc., Unsecd. Note, Series F,
7.90%, 8/5/2006 251,757
-----------
FINANCE - 4.1%
250,000 Bear Stearns Companies Inc. (The),
Unsecd. Note, 6.45%, 8/1/2002 246,900
1,000,000 Citigroup Inc., Note, 9.50%, 3/1/2002 1,055,359
250,000 International Lease Finance Corp.,
Unsecd. Note, 8.375%, 12/15/2004 263,299
1,000,000 Lehman Brothers Holdings, Inc.,
Note, 6.50%, 10/1/2002 983,290
200,000 Merrill Lynch & Co., Inc.,
6.25%, 10/15/2008 185,871
500,000 Morgan Stanley, Dean Witter & Co.,
5.625%, 1/20/2004 476,568
365,000 Zurich Capital Trust, Company Guarantee,
Series 144A, 8.376%, 6/1/2037 356,890
-----------
Total 3,568,177
-----------
FOREIGN - 1.4%
200,000 TransCanada PipeLines Ltd., Deb.,
9.875%, 1/1/2021 235,530
1,000,000 TransCanada PipeLines Ltd., Sub. Deb.,
9.125%, 4/20/2006 1,075,320
-----------
Total 1,310,850
-----------
INDUSTRIAL - 0.1%
121,400 Dow Chemical Co., Series 1992-A1,
7.60%, 1/2/2002 122,320
-----------
OIL & GAS - 0.4%
250,000 Chevron Capital USA, Inc.,
7.45%, 8/15/2004 252,417
50,000 Enron Corp., 7.625%, 9/10/2004 50,705
-----------
Total 303,122
-----------
RETAILING & APPAREL - 0.5%
500,000 Sears Roebuck Acceptance Corp.,
Unsecd. Note, 7.00%, 6/15/2007 481,033
-----------
U.S. GOVERNMENT AGENCIES - 5.9%
1,000,000 Fannie Mae, 5.125%, 2/13/2004 947,905
500,000 Fannie Mae, 5.25%, 1/15/2009 448,975
332,600 Fannie Mae, 6.00%, 2/25/2011 311,844
250,000 Fannie Mae, 6.93%, 9/17/2012 244,016
288,298 Fannie Mae, 9.50%, 6/25/2020 301,362
750,000 Fannie Mae, 6.50%, 4/25/2023 717,011
2,000,000 Federal Home Loan Bank,
6.00%, 8/15/2002 1,982,140
288,535 Ginnie Mae, 7.50%, 6/15/2027 288,116
-----------
Total 5,241,369
-----------
U.S. TREASURY SECURITIES - 7.3%
425,000 U.S. Treasury Bond,
6.00%, 8/15/2009 419,821
685,000 U.S. Treasury Bond,
9.875%, 11/15/2015 900,133
250,000 U.S. Treasury Bond,
9.00%, 11/15/2018 313,438
1,850,000 U.S. Treasury Bond,
6.75%, 8/15/2026 1,903,188
500,000 U.S. Treasury Bond,
6.125%, 11/15/2027 476,563
250,000 U.S. Treasury Bond,
6.125%, 8/15/2029 244,688
1,000,000 U.S. Treasury Note,
5.875%, 10/31/2001 997,813
500,000 U.S. Treasury Note,
7.50%, 5/15/2002 516,563
400,000 U.S. Treasury Note,
6.875%, 5/15/2006 412,875
1,000,000 U.S. Treasury Strips,
Principal Only, 0.00%, 11/15/2027 172,316
-----------
Total 6,357,398
-----------
UTILITIES - 0.6%
500,000 Enserch Corp., Unsecd. Note,
6.25%, 1/1/2003 487,860
-----------
TOTAL FIXED INCOME OBLIGATIONS
(IDENTIFIED COST $19,632,320) 19,023,377
-----------
SHORT-TERM INVESTMENTS - 10.9%
MUTUAL FUNDS - 4.5%
500,000 Flex Funds 500,000
1,000,000 Government Money Market Fund 1,000,000
2,500,000 RNC Money Market Fund 2,500,000
-----------
Total 4,000,000
-----------
REPURCHASE AGREEMENT - 5.1%
$4,448,000 Donaldson, Lufkin and Jenrette
Securities Corp., 5.70%, dated
11/30/1999, due 12/1/1999,
repurchase price $4,448,704
(Collateralized by U.S.
Government Securities) 4,448,000
-----------
U.S. GOVERNMENT AGENCIES - 1.3%
154,084 Freddie Mac, 6.25%, 7/15/2005 153,889
1,000,000 Sallie Mae, 5.251%, 3/7/2001 994,161
-----------
Total 1,148,050
-----------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $9,598,149) 9,596,050
-----------
TOTAL INVESTMENTS - 96.6%
(IDENTIFIED COST $66,819,376) 84,679,168
-----------
OTHER ASSETS, LESS LIABILITIES - 3.4% 2,944,215
-----------
TOTAL NET ASSETS - 100.0% $87,623,383
-----------
-----------
*<F52> Non-income producing
ADR -- American Depository Receipt
PLC -- Public Limited Company
(See Notes to Financial Statements.)
Firstar Stellar Capital Appreciation Fund November 30, 1999
SHARES OR
PRINCIPAL AMOUNT VALUE
- ---------------- -----
COMMON STOCKS - 98.9%
AEROSPACE & DEFENSE - 1.3%
17,300 General Dynamics Corp. $892,031
4,000 Litton Industries, Inc. *<F53> 179,250
-----------
Total 1,071,281
-----------
AIRLINES - 0.5%
12,000 Alaska Air Group, Inc. *<F53> 456,000
-----------
APPLIANCES - 0.9%
16,000 Maytag Corp. 763,000
-----------
AUTOMOTIVE & RELATED - 0.6%
2,000 Arvin Industries, Inc. 53,125
3,000 Bandag, Inc. 72,750
7,500 Lear Corp. *<F53> 247,969
8,000 Meritor Automotive, Inc. 137,000
-----------
Total 510,844
-----------
BANKING - 6.5%
13,000 Astoria Financial Corp. 409,906
13,650 Charter One Financial, Inc. 296,034
25,000 City National Corp. 901,563
13,000 Dime Bancorp, Inc. 237,250
26,000 First Tennessee National Corp. 854,750
40,000 Hibernia Corp. 507,500
11,000 Marshall & Ilsley Corp. 736,313
17,000 North Fork Bancorporation, Inc. 342,125
20,000 Sovereign Bancorp, Inc. 177,500
17,000 Zions Bancorporation 1,097,563
-----------
Total 5,560,504
-----------
BUILDING & CONSTRUCTION - 3.5%
14,400 Astec Industries, Inc. *<F53> 358,200
16,000 Granite Construction Inc. 304,000
24,000 Jacobs Engineering Group Inc. *<F53> 754,500
18,000 Martin Marietta Materials, Inc. 682,875
5,000 Rayonier Inc. 222,187
6,000 Southdown, Inc. 277,125
6,500 U.S.G. Corp. *<F53> 322,562
3,000 York International Corp. 66,937
-----------
Total 2,988,386
-----------
BUSINESS SERVICES - 0.2%
5,000 Kelly Services, Inc., Class A 131,094
-----------
CHEMICALS - 1.1%
15,000 Airgas, Inc. *<F53> 146,250
20,000 Albemarle Corp. 387,500
3,000 Fuller (H.B.) Co. 163,500
3,000 Lubrizol Corp. (The) 82,125
3,000 Minerals Technologies Inc. 118,500
-----------
Total 897,875
-----------
COMMERCIAL SERVICES - 0.2%
4,000 Ogden Corp. 52,000
6,500 Quintiles Transnational Corp. *<F53> 143,406
-----------
Total 195,406
-----------
COMPUTER PRODUCTS & SERVICES - 5.7%
10,000 Keane, Inc. *<F53> 270,000
35,000 Lexmark International Group, Inc.,
Class A *<F53> 2,905,000
5,000 NCR Corp. *<F53> 164,062
5,000 SunGard Data Systems Inc. *<F53> 111,250
20,000 Siebel Systems, Inc. *<F53> 1,402,500
-----------
Total 4,852,812
-----------
COMPUTERS & SOFTWARE - 11.6%
10,000 Citrix Systems, Inc. *<F53> 948,750
10,000 Electronic Arts, Inc. *<F53> 1,048,750
58,000 InterVoice-Brite, Inc. *<F53> 873,625
37,500 Intuit, Inc. *<F53> 1,875,000
12,000 Legato Systems, Inc. *<F53> 810,375
16,000 Mentor Graphics Corp. *<F53> 144,000
6,000 Network Associates, Inc. *<F53> 151,500
7,000 Rational Software Corp. *<F53> 357,875
32,000 Sterling Software, Inc. *<F53> 842,000
10,000 Symantec Corp. *<F53> 466,875
4,000 Synopsys, Inc. *<F53> 289,500
22,500 VERITAS Software Corp. *<F53> 2,060,156
-----------
Total 9,868,406
-----------
CONSUMER NON-DURABLES - 0.7%
13,000 Cintas Corp. 597,188
-----------
CONSUMER PRODUCTS - 0.2%
5,000 Church & Dwight Co., Inc. 140,000
-----------
CONTAINERS - 0.3%
12,000 Sonoco Products Co. 276,000
-----------
DATA PROCESSING - 1.0%
15,000 Fiserv, Inc. *<F53> 532,500
30,000 Informix Corp. *<F53> 330,000
-----------
Total 862,500
-----------
DENTAL SUPPLIES & EQUIPMENT - 0.1%
5,000 DENTSPLY International Inc. 119,687
-----------
DRUGS - 3.9%
13,000 Biogen, Inc. *<F53> 949,813
11,000 Forest Laboratories, Inc. *<F53> 563,062
18,000 IVAX Corp. *<F53> 365,625
20,000 Mylan Laboratories, Inc. 471,250
26,000 Watson Pharmaceuticals, Inc. *<F53> 966,875
-----------
Total 3,316,625
-----------
ELECTRICAL PRODUCTS & INSTRUMENTS - 1.4%
15,000 Arrow Electronics, Inc. *<F53> 343,125
10,000 Molex Inc. 505,000
4,000 Sanmina Corp. *<F53> 384,500
-----------
Total 1,232,625
-----------
ELECTRONICS - SEMICONDUCTORS - 4.7%
15,000 Cypress Semiconductor Corp. *<F53> 408,750
15,000 Integrated Device Technology, Inc. *<F53> 353,438
9,000 Linear Technology Corp. 639,563
7,000 Microchip Technology Inc. *<F53> 443,625
4,000 QLogic Corp. *<F53> 452,500
18,750 Vishay Intertechnology, Inc. *<F53> 542,578
10,000 Vitesse Semiconductor Corp. *<F53> 450,625
7,500 Xilinx, Inc. *<F53> 671,250
-----------
Total 3,962,329
-----------
ENTERTAINMENT - 0.1%
5,000 Mandalay Resort Group *<F53> 116,562
-----------
FINANCE - 5.5%
8,000 Ambac Financial Group, Inc. 436,000
17,000 Edwards (AG), Inc. 505,750
24,000 Finova Group, Inc. 892,500
12,000 GreenPoint Financial Corp. 303,750
11,000 Investment Technology Group, Inc. 294,938
11,000 Jefferies Group, Inc. 218,625
24,450 Old Kent Financial Corp. 991,753
30,000 Pinnacle West Capital Corp. 995,625
-----------
Total 4,638,941
-----------
FOOD & BEVERAGE - 1.9%
8,000 Hormel Foods Corp. 356,500
12,500 IBP, inc. 275,781
25,000 Tyson Foods, Inc. 434,375
26,000 Universal Foods Corp. 552,500
-----------
Total 1,619,156
-----------
HEALTH CARE SERVICES & SUPPLIES - 0.5%
4,000 Lincare Holdings Inc. 113,500
12,004 Priority Healthcare Corp. *<F53> 297,099
-----------
Total 410,599
-----------
HOME FURNISHINGS - 0.8%
23,000 Leggett & Platt, Inc. 493,062
7,000 Mohawk Industries, Inc. *<F53> 174,563
-----------
Total 667,625
-----------
INSURANCE - 3.3%
6,000 Allmerica Financial Corp. 331,125
12,000 American Financial Group, Inc. 323,250
6,000 Everest Reinsurance Holdings, Inc. 142,500
18,000 Lincoln National Corp. 750,375
9,000 PacificCare Health Systems, Inc., Class B *<F53> 421,312
17,500 PMI Group, Inc. (The) 873,906
-----------
Total 2,842,468
-----------
MACHINERY - 1.0%
10,000 Black & Decker Corp. (The) 448,750
4,000 Imation Corp. *<F53> 128,750
2,500 SPX Corp. *<F53> 186,250
2,500 Tecumseh Products Co., Class A 120,078
-----------
Total 883,828
-----------
MANUFACTURED HOUSING - 0.1%
12,000 Clayton Homes, Inc. 122,250
-----------
MANUFACTURING - 0.9%
10,000 Carlisle Cos., Inc. 335,625
5,000 Mark IV Industries, Inc. 93,750
5,000 Pentair, Inc. 185,625
6,000 Trinity Industries, Inc. 175,500
-----------
Total 790,500
-----------
MEDIA - 1.5%
20,000 A. H. Belo Corp. 360,000
13,000 Reader's Digest Association, Inc. (The) 377,000
6,000 Univision Communications Inc. *<F53> 525,000
-----------
Total 1,262,000
-----------
MEDICAL PRODUCTS & SERVICES - 4.1%
20,000 Chiron Corp. *<F53> 656,250
20,600 CONMED Corp. *<F53> 520,150
17,500 Genzyme Corp. *<F53> 630,000
5,000 Stryker Corp. 284,688
31,200 Trigon Healthcare, Inc. *<F53> 918,450
6,000 VISX, Incorporated *<F53> 465,375
-----------
Total 3,474,913
-----------
NATURAL GAS - 1.7%
29,100 Coastal Corp. 1,025,775
11,000 El Paso Energy Corp. 423,500
-----------
Total 1,449,275
-----------
OIL & GAS - 5.2%
10,000 Amerada Hess Corp. 579,375
5,000 Conoco Inc. - Class A 131,563
8,000 ENSCO International Inc. 160,500
25,000 Global Marine Inc. *<F53> 382,813
4,000 Murphy Oil Corp. 226,000
10,000 Nabors Industries, Inc. *<F53> 265,625
7,000 Noble Affiliates, Inc. 154,000
10,000 Noble Drilling Corp. *<F53> 278,750
6,000 Tidewater Inc. 191,625
30,000 Tosco Corp. 811,875
20,000 Transocean Offshore Inc. 563,750
20,000 Valero Energy Corp. 415,000
8,000 Weatherford International, Inc. *<F53> 279,500
-----------
Total 4,440,376
-----------
PAPER & FOREST PRODUCTS - 0.5%
6,000 Bowater Inc. 294,000
9,000 Glatfelter (P.H.) Co. 115,875
-----------
Total 409,875
-----------
PLASTICS - 1.3%
34,000 Spartech Corp. 1,073,125
-----------
RESTAURANTS - 1.9%
36,000 Brinker International, Inc. *<F53> 814,500
4,000 Outback Steakhouse, Inc. *<F53> 94,250
3,000 Papa John's International, Inc. *<F53> 107,719
22,050 Sonic Corp. *<F53> 595,350
-----------
Total 1,611,819
-----------
RETAILING & APPAREL - 3.9%
7,000 Abercrombie & Fitch Co. *<F53> 226,625
5,000 Bed Bath & Beyond Inc. *<F53> 156,250
20,000 Best Buy Co., Inc. *<F53> 1,250,000
8,000 BJ's Wholesale Club, Inc. *<F53> 299,000
5,500 Claire's Stores, Inc. 119,281
5,000 Jones Apparel Group, Inc. *<F53> 133,438
10,000 Lowe's Cos., Inc. 498,125
8,000 OfficeMax, Inc. *<F53> 49,000
19,100 Shopko Stores, Inc. 433,331
10,000 Warnaco Group, Inc. (The) 123,750
-----------
Total 3,288,800
-----------
STEEL PRODUCTS - 0.2%
8,000 AK Steel Holding Corp. 132,500
-----------
TECHNOLOGY SERVICES - 0.8%
30,000 Comdisco, Inc. 723,750
-----------
TELECOMMUNICATIONS & EQUIPMENT - 8.2%
15,000 BroadWing Inc. *<F53> 436,875
17,000 CenturyTel, Inc. 782,000
25,000 Comsat Corp. 475,000
10,000 Comverse Technology, Inc. *<F53> 1,208,750
17,000 Dycom Industries, Inc. *<F53> 684,250
9,500 QUALCOMM Inc. *<F53> 3,441,969
-----------
Total 7,028,844
-----------
TEXTILES - 0.1%
8,000 Shaw Industries, Inc. *<F53> 125,500
-----------
TOBACCO - 0.1%
4,000 Universal Corp. 102,750
-----------
TRANSPORTATION - 1.0%
3,500 CNF Transportation Inc. 116,375
12,000 Harley-Davidson, Inc. 732,000
-----------
Total 848,375
-----------
UNIT INVESTMENT TRUST - 4.4%
47,500 Standard & Poor's MidCap 400
Depositary Receipts 3,766,601
-----------
UTILITIES - 5.5%
8,000 Allegheny Energy, Inc. 232,000
7,000 American Water Works Company, Inc. 178,938
28,000 CMP Group, Inc. 757,750
44,200 Energy East Corp. 1,038,700
28,000 Montana Power Co. (The) 864,500
41,000 Northeast Utilities *<F53> 866,125
8,000 OGE Energy Corp. 171,000
10,000 Potomac Electric Power Co. 238,125
8,000 UtiliCorp United Inc. 161,000
6,000 Washington Gas Light Co. 168,000
-----------
Total 4,676,138
-----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $69,940,175) 84,309,132
-----------
MUTUAL FUND - 0.7%
72,170 Dean Small Cap Value Fund 646,639
-----------
TOTAL MUTUAL FUND
(IDENTIFIED COST $801,031) 646,639
-----------
SHORT-TERM INVESTMENT - 0.4%
REPURCHASE AGREEMENT - 0.4%
$329,000 Donaldson, Lufkin and Jenrette
Securities Corp., 5.70%, dated
11/30/1999, due 12/1/1999, repurchase
price $329,052 (Collateralized by
U.S. Government Securities) 329,000
-----------
TOTAL SHORT-TERM INVESTMENT
(IDENTIFIED COST $329,000) 329,000
-----------
TOTAL INVESTMENTS - 100.0%
(IDENTIFIED COST $71,070,206) 85,284,771
-----------
LIABILITIES, LESS OTHER ASSETS - 0.0% (27,600)
-----------
TOTAL NET ASSETS - 100.0% $85,257,171
-----------
-----------
*<F53> Non-income producing
(See Notes to Financial Statements.)
Firstar Stellar International Equity Fund November 30, 1999
SHARES OR
PRINCIPAL AMOUNT VALUE
- ---------------- -----
CLOSED-END INVESTMENT COMPANIES - 18.9%
20,000 China Fund, Inc. (The) $212,500
100,000 France Growth Fund, Inc. (The) 1,475,000
111,100 Italy Fund Inc. (The) 1,604,006
35,000 Japan Equity Fund, Inc. (The) *<F54> 332,500
175,000 Japan O.T.C. Equity Fund, Inc. *<F54> 2,132,813
50,000 Korea Fund, Inc. (The) *<F54> 740,625
50,000 Mexico Fund, Inc. (The) 815,625
50,000 Swiss Helvetia Fund, Inc. (The) 709,375
75,000 Templeton Emerging Markets Fund, Inc. 853,125
15,000 WEBS France Index Fund, Inc. 375,000
100,000 WEBS Hong Kong Index Fund, Inc. 1,306,250
85,000 WEBS Singapore Index Fund, Inc. 711,875
-----------
TOTAL CLOSED-END INVESTMENT COMPANIES
(IDENTIFIED COST $9,066,550) 11,268,694
-----------
MUTUAL FUNDS - 74.4%
262,878 BT Institutional International
Equity Fund 4,187,647
261,908 Federated International Equity Fund,
Class A 7,637,239
37,315 Flex Partners International Equity Fund 632,480
188,042 Founders Worldwide Growth Fund 5,300,906
157,630 Janus Worldwide Fund 10,630,572
52,810 Lexington Global Fund 607,313
244,053 Morgan Stanley Global Equity
Allocation Fund 4,988,449
163,250 Scudder Global Fund 5,253,398
251,975 USAA World Growth Fund 5,021,860
-----------
TOTAL MUTUAL FUNDS
(IDENTIFIED COST $33,832,366) 44,259,864
-----------
SHORT-TERM INVESTMENT - 6.8%
REPURCHASE AGREEMENT - 6.8%
$4,024,000 Donaldson, Lufkin and Jenrette
Securities Corp., 5.70%, dated
11/30/1999, due 12/1/1999,
repurchase price $4,024,637
(Collateralized by
U.S. Government Securities) 4,024,000
-----------
TOTAL SHORT-TERM INVESTMENT
(IDENTIFIED COST $4,024,000) 4,024,000
-----------
TOTAL INVESTMENTS - 100.1%
(IDENTIFIED COST $46,922,916) 59,552,558
-----------
LIABILITIES, LESS OTHER ASSETS - (0.1)% (56,966)
-----------
TOTAL NET ASSETS - 100.0% $59,495,592
-----------
-----------
*<F54> Non-income producing
(See Notes to Financial Statements.)
Statements of Assets and Liabilities
November 30, 1999
<TABLE>
Firstar Stellar Firstar Stellar
Firstar Stellar Firstar Stellar Science & Capital Firstar Stellar
Growth Equity Relative Value Technology Firstar Stellar Appreciation International
Fund Fund Fund Fund Fund Equity Fund
--------------- --------------- ---------- --------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Total investments in securities,
at value $276,372,822 $528,808,939 $43,352,199 $84,679,168 $85,284,771 $59,552,558
Cash 169,374 153,869 235,609 2,500,524 28,370 19,827
Income receivable 270,122 980,249 5,964 738,438 68,375 637
Receivable for investments sold -- 5,874,804 -- -- -- 2,333
Receivable for Fund shares sold 198,688 318,468 446,008 8,177 8,703 5,842
Other assets 45,240 16,887 18,175 8,644 18,805 8,333
------------ ------------ ----------- ----------- ----------- -----------
Total assets 277,056,246 536,153,216 44,057,955 87,934,951 85,409,024 59,589,530
------------ ------------ ----------- ----------- ----------- -----------
LIABILITIES:
Payable for investments purchased -- -- 1,477,241 -- -- --
Payable for Fund shares redeemed 31,406 264,306 457 154,915 33,517 11,871
Options written, at value 48,125 -- 219,750 -- -- --
Payable to affiliates 276,274 529,225 68,140 122,093 103,094 65,918
Accrued expenses 55,201 52,652 11,654 34,560 15,242 16,149
------------ ------------ ----------- ----------- ----------- -----------
Total liabilities 411,006 846,183 1,777,242 311,568 151,853 93,938
------------ ------------ ----------- ----------- ----------- -----------
NET ASSETS $276,645,240 $535,307,033 $42,280,713 $87,623,383 $85,257,171 $59,495,592
------------ ------------ ----------- ----------- ----------- -----------
------------ ------------ ----------- ----------- ----------- -----------
NET ASSETS CONSIST OF:
Paid in capital $159,172,753 $286,325,430 $32,984,016 $69,546,576 $74,329,246 $46,532,903
Accumulated undistributed
net investment income -- 686,974 -- 279,975 -- --
Accumulated undistributed net
realized (loss) gain on
investments and options (1,682,763) (704,199) (414,265) (62,960) (3,286,640) 333,047
Net unrealized appreciation on
investments and options 119,155,250 248,998,828 9,710,962 17,859,792 14,214,565 12,629,642
------------ ------------ ----------- ----------- ----------- -----------
Total net assets $276,645,240 $535,307,033 $42,280,713 $87,623,383 $85,257,171 $59,495,592
------------ ------------ ----------- ----------- ----------- -----------
------------ ------------ ----------- ----------- ----------- -----------
NET ASSETS:
A Shares -- $54,825,451 -- $40,132,666 $85,257,171 $59,495,592
B Shares $90,468,037 14,278,407 $1,345,127 -- -- --
Y Shares 186,177,203 466,203,175 40,935,586 47,490,717 -- --
------------ ------------ ----------- ----------- ----------- -----------
Total net assets $276,645,240 $535,307,033 $42,280,713 $87,623,383 $85,257,171 $59,495,592
------------ ------------ ----------- ----------- ----------- -----------
SHARES OUTSTANDING:
A Shares -- 1,883,789 -- 3,167,034 6,920,542 4,596,552
B Shares 3,787,769 490,789 92,665 -- -- --
Y Shares 7,791,151 16,007,261 2,811,491 3,747,943 -- --
------------ ------------ ----------- ----------- ----------- -----------
Total shares outstanding 11,578,920 18,381,839 2,904,156 6,914,977 6,920,542 4,596,552
------------ ------------ ----------- ----------- ----------- -----------
NET ASSET VALUE PER SHARE:
A Shares -- $29.10 -- $12.67 $12.32 $12.94
B Shares $23.89 $29.09 $14.52 -- -- --
Y Shares $23.90 $29.12 $14.56 $12.67 -- --
------------ ------------ ----------- ----------- ----------- -----------
OFFERING PRICE PER SHARE:
A Shares -- $30.47 -- $13.27 $12.90 $13.14
B Shares $23.89 $29.09 $14.52 -- -- --
Y Shares $23.90 $29.12 $14.56 $12.67 -- --
------------ ------------ ----------- ----------- ----------- -----------
REDEMPTION PROCEEDS PER SHARE:
A Shares -- $29.10 -- $12.67 $12.32 $12.94
B Shares $22.70 $27.64 $13.65 -- -- --
Y Shares $23.90 $29.12 $14.56 $12.67 -- --
------------ ------------ ----------- ----------- ----------- -----------
Investments, at identified cost $157,221,746 $279,810,111 $33,526,738 $66,819,376 $71,070,206 $46,922,916
------------ ------------ ----------- ----------- ----------- -----------
------------ ------------ ----------- ----------- ----------- -----------
Investments, at tax cost $157,758,186 $279,810,111 $33,556,348 $66,824,060 $71,236,752 $46,922,916
------------ ------------ ----------- ----------- ----------- -----------
------------ ------------ ----------- ----------- ----------- -----------
</TABLE>
(See Notes to Financial Statements.)
Statements of Operations
Period Ended November 30, 1999
<TABLE>
Firstar Stellar Firstar Stellar
Firstar Stellar Firstar Stellar Science & Capital Firstar Stellar
Growth Equity Relative Value Technology Firstar Stellar Appreciation International
Fund Fund Fund(a)<F55> Fund Fund Equity Fund
--------------- --------------- ---------- --------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $368,525 $330,189 $48,418 $2,318,574 $112,900 $71,655
Dividend income 2,692,475 8,836,804 8,309 1,665,089 685,791 693,352
----------- ----------- ---------- ---------- ---------- -----------
Total income 3,061,000 9,166,993 56,727 3,983,663 798,691 765,007
----------- ----------- ---------- ---------- ---------- -----------
EXPENSES:
Investment advisory fees 1,781,768 3,788,262 67,931 926,655 780,590 409,174
Shareholder services fees 595,352 1,264,578 18,870 243,790 205,509 136,599
Administration fees 261,326 555,786 8,303 107,297 90,384 60,018
Distribution services fees -- A Shares -- 136,539 -- 108,779 -- --
Distribution services fees -- B Shares 199,902 28,543 292 -- -- --
Transfer and dividend disbursing
agent fees and expenses 116,851 163,760 1,658 57,904 24,952 13,509
Portfolio accounting fees 73,269 116,957 13,131 61,653 42,891 39,527
Custodian fees 59,392 126,275 1,887 24,386 20,542 13,640
Federal and state registration fees 50,790 24,096 15,182 18,558 13,222 10,416
Printing and postage 49,380 37,864 4,136 11,613 2,880 --
Auditing fees 33,005 14,148 5,388 13,631 16,513 12,747
Trustees' fees 7,523 6,265 1,545 5,881 6,459 5,170
Legal fees 2,265 -- 452 -- 2,003 1,105
Miscellaneous 435 5,909 414 487 992 1,557
----------- ----------- ---------- ---------- ---------- -----------
Total expenses 3,231,258 6,268,982 139,189 1,580,634 1,206,937 703,462
----------- ----------- ---------- ---------- ---------- -----------
Waiver --
Waiver of shareholder services fees (382,622) (815,849) (11,322) (159,058) (133,329) (88,266)
----------- ----------- ---------- ---------- ---------- -----------
Total waiver (382,622) (815,849) (11,322) (159,058) (133,329) (88,266)
----------- ----------- ---------- ---------- ---------- -----------
Net expenses 2,848,636 5,453,133 127,867 1,421,576 1,073,608 615,196
----------- ----------- ---------- ---------- ---------- -----------
NET INVESTMENT INCOME (LOSS) 212,364 3,713,860 (71,140) 2,562,087 (274,917) 149,811
----------- ----------- ---------- ---------- ---------- -----------
REALIZED AND UNREALIZED (LOSS) GAIN
ON INVESTMENTS AND OPTIONS:
Net realized (loss) gain on investments
and options (1,646,342) (704,200) (414,265) (40,690) (795,404) 607,379
Net change in unrealized appreciation
on investments and options 54,036,897 51,592,461 9,710,962 4,101,153 5,283,313 13,062,240
----------- ----------- ---------- ---------- ---------- -----------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS AND OPTIONS 52,390,555 50,888,261 9,296,697 4,060,463 4,487,909 13,669,619
----------- ----------- ---------- ---------- ---------- -----------
CHANGE IN NET ASSETS RESULTING
FROM OPERATIONS $52,602,919 $54,602,121 $9,225,557 $6,622,550 $4,212,992 $13,819,430
----------- ----------- ---------- ---------- ---------- -----------
----------- ----------- ---------- ---------- ---------- -----------
</TABLE>
(a)<F55> Reflects operations for the period from August 9, 1999 (date of
initial public investment) to November 30, 1999.
(See Notes to Financial Statements.)
Statements of Changes in Net Assets
<TABLE>
Firstar Stellar Firstar Stellar
Growth Equity Relative Value
Fund Fund
--------------------------- --------------------------
Year Ended Year Ended Year Ended Year Ended
November 30, November 30, November 30, November 30,
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS--
Net investment income (loss) $212,364 $482,582 $3,713,860 $3,780,377
Net realized (loss) gain on investments and options (1,646,342) 4,357,637 (704,200) 1,782,713
Net change in unrealized appreciation (depreciation)
on investments and options 54,036,897 27,811,716 51,592,461 57,735,300
------------ ------------ ------------ ------------
Change in net assets resulting from operations 52,602,919 32,651,935 54,602,121 63,298,390
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS--
Distributions from net investment income
A Shares -- -- (307,136) (314,887)
B Shares (60,891) (80,332) (68,023) (23,565)
Y Shares (285,802) (438,513) (3,536,241) (3,346,134)
Distributions in excess of net investment income
B Shares (6,262) -- -- --
Y Shares (110,533) -- -- --
Distributions from net realized gain on
investments and options
A Shares -- -- (202,285) (1,335,755)
B Shares (1,524,025) (2,579,168) (32,646) --
Y Shares (2,792,926) (6,040,139) (1,548,462) (11,016,756)
------------ ------------ ------------ ------------
Change in net assets from distributions
to shareholders (4,780,439) (9,138,152) (5,694,793) (16,037,097)
------------ ------------ ------------ ------------
SHARE TRANSACTIONS--
Proceeds from sales of shares 79,638,600 47,696,699 122,853,931 105,570,306
Net asset value of shares issued to shareholders
in payment of distributions declared 3,394,700 6,393,320 4,286,072 12,183,187
Cost of shares redeemed (42,163,347) (43,763,249) (85,917,559) (69,641,417)
------------ ------------ ------------ ------------
Change in net assets from share transactions 40,869,953 10,326,770 41,222,444 48,112,076
------------ ------------ ------------ ------------
Change in net assets 88,692,433 33,840,553 90,129,772 95,373,369
------------ ------------ ------------ ------------
NET ASSETS:
Beginning of period 187,952,807 154,112,254 445,177,261 349,803,892
------------ ------------ ------------ ------------
End of period $276,645,240 $187,952,807 $535,307,033 $445,177,261
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Accumulated undistributed net investment income
included in net assets at end of period -- $142,335 $686,974 $886,500
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>
<TABLE>
Firstar Stellar Firstar Stellar Firstar Stellar
Science & Capital International
Technology Firstar Stellar Appreciation Equity
Fund Fund Fund Fund
------------ -------------------------- -------------------------- ---------------------------
Period Ended Year Ended Year Ended Year Ended Year Ended Year Ended Period Ended
November 30, November 30, November 30, November 30, November 30, November 30, November 30,
1999(a)<F56> 1999 1998 1999 1998 1999 1998(b)<F57>
------------ ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
$(71,140) $2,562,087 $3,177,602 $(274,917) $(353,594) $149,811 $156,377
(414,265) (40,690) 8,965,626 (795,404) (2,489,161) 607,379 835,714
9,710,962 4,101,153 (5,745,284) 5,283,313 6,381,385 13,062,240 (432,598)
----------- ----------- ------------ ----------- ----------- ----------- -----------
9,225,557 6,622,550 6,397,944 4,212,992 3,538,630 13,819,430 559,493
----------- ----------- ------------ ----------- ----------- ----------- -----------
-- (1,236,235) (1,272,062) -- (133,033) (485,816) (92,970)
-- -- -- -- -- -- --
-- (1,687,173) (1,768,243) -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- (4,024,886) (4,564,730) -- (17,824,043) (838,069) --
-- -- -- -- -- -- --
-- (4,995,329) (5,845,323) -- -- -- --
----------- ----------- ------------ ----------- ----------- ----------- -----------
-- (11,943,623) (13,450,358) -- (17,957,076) (1,323,885) (92,970)
----------- ----------- ------------ ----------- ----------- ----------- -----------
33,788,522 9,831,132 14,934,333 24,201,262 13,112,471 12,639,693 51,706,328
-- 10,753,017 11,882,476 -- 11,194,078 963,609 50,831
(733,366) (32,824,225) (28,719,192) (23,137,932) (13,025,508) (15,061,986) (3,764,951)
----------- ----------- ------------ ----------- ----------- ----------- -----------
33,055,156 (12,240,076) (1,902,383) 1,063,330 11,281,041 (1,458,684) 47,992,208
----------- ----------- ------------ ----------- ----------- ----------- -----------
42,280,713 (17,561,149) (8,954,797) 5,276,322 (3,137,405) 11,036,861 48,458,731
----------- ----------- ------------ ----------- ----------- ----------- -----------
-- 105,184,532 114,139,329 79,980,849 83,118,254 48,458,731 --
----------- ----------- ------------ ----------- ----------- ----------- -----------
$42,280,713 $87,623,383 $105,184,532 $85,257,171 $79,980,849 $59,495,592 $48,458,731
----------- ----------- ------------ ----------- ----------- ----------- -----------
----------- ----------- ------------ ----------- ----------- ----------- -----------
-- $279,975 $659,683 -- -- -- $63,407
----------- ----------- ------------ ----------- ----------- ----------- -----------
----------- ----------- ------------ ----------- ----------- ----------- -----------
</TABLE>
(a)<F56> Reflects operations for the period from August 9, 1999 (date of
initial public investment) to November 30, 1999.
(b)<F57> Reflects operations for the period from December 3, 1997 (date of
initial public investment) to November 30, 1998.
(See Notes to Financial Statements.)
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
NET REALIZED
AND DISTRIBUTIONS DISTRIBUTIONS
NET ASSET UNREALIZED DISTRIBUTIONS IN EXCESS OF FROM NET
VALUE, NET GAIN ON TOTAL FROM FROM NET NET REALIZED GAIN
PERIOD ENDED BEGINNING INVESTMENT INVESTMENTS INVESTMENT INVESTMENT INVESTMENT ON INVESTMENTS
NOVEMBER 30, OF PERIOD INCOME (LOSS) AND OPTIONS OPERATIONS INCOME INCOME (G)<F64> AND OPTIONS
- ------------ --------- ------------- ----------- ---------- ------------- --------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
FIRSTAR STELLAR GROWTH EQUITY FUND
B SHARES
1995(d)<F61> $10.00 0.24 2.67 2.91 (0.21) -- --
1996 $12.70 0.17 3.12 3.29 (0.16) -- (0.66)
1997 $15.17 0.19 2.97 3.16 (0.14) -- (1.02)
1998 $17.17 0.02 3.32 3.34 (0.03) -- (0.96)
1999 $19.52 (0.04) 4.88 4.84 (0.02) (0.00)(j)<F67> (0.45)
Y SHARES
1997(c)<F60> $16.46 0.03 0.73 0.76 (0.04) -- --
1998 $17.18 0.06 3.30 3.36 (0.07) -- (0.96)
1999 $19.51 0.07 4.83 4.90 (0.05) (0.01) (0.45)
FIRSTAR STELLAR RELATIVE VALUE FUND
A SHARES
1995 $11.36 0.29 3.65 3.94 (0.28) -- --
1996 $15.02 0.27 4.01 4.28 (0.26) -- (0.01)
1997 $19.03 0.67 4.45 5.12 (0.28) -- (0.39)
1998 $23.48 0.11 3.66 3.77 (0.17) -- (0.82)
1999 $26.26 0.10 3.01 3.11 (0.16) -- (0.11)
B SHARES
1998(b)<F59> $26.01 0.14 0.24 0.38 (0.11) -- --
1999 $26.28 0.16 2.94 3.10 (0.18) -- (0.11)
Y SHARES
1997(a)<F58> $22.67 0.08 0.81 0.89 (0.07) -- --
1998 $23.49 0.18 3.65 3.83 (0.23) -- (0.82)
1999 $26.27 0.23 2.96 3.19 (0.23) -- (0.11)
FIRSTAR STELLAR SCIENCE & TECHNOLOGY FUND
B SHARES
1999(f)<F63> $10.00 -- 4.52 4.52 -- -- --
Y SHARES
1999(f)<F63> $10.00 -- 4.56 4.56 -- -- --
FIRSTAR STELLAR FUND
A SHARES
1995 $10.90 0.34 1.33 1.67 (0.35) -- (0.05)
1996 $12.17 0.34 1.62 1.96 (0.34) -- (0.20)
1997 $13.59 0.36 1.18 1.54 (0.36) -- (0.50)
1998 $14.27 0.38 0.35 0.73 (0.35) -- (1.30)
1999 $13.35 0.31 0.52 0.83 (0.35) -- (1.16)
Y SHARES
1995 $10.90 0.38 1.32 1.70 (0.38) -- (0.05)
1996 $12.17 0.37 1.62 1.99 (0.37) -- (0.20)
1997 $13.59 0.40 1.18 1.58 (0.40) -- (0.50)
1998 $14.27 0.42 0.36 0.78 (0.39) -- (1.30)
1999 $13.36 0.35 0.51 0.86 (0.39) -- (1.16)
FIRSTAR STELLAR CAPITAL APPRECIATION FUND
A SHARES
1995 $10.15 0.03 1.72 1.75 (0.04) (0.00)(j)<F67> (0.04)
1996 $11.82 (0.03) 1.05 1.02 -- -- (0.29)
1997 $12.55 0.02 1.77 1.79 -- -- --
1998 $14.34 (0.05) 0.56 0.51 (0.02) -- (3.08)
1999 $11.75 -- 0.57 0.57 -- -- --
FIRSTAR STELLAR INTERNATIONAL EQUITY FUND
A SHARES
1998(e)<F62> $10.00 0.05 0.34 0.39 (0.04) -- --
1999 $10.35 0.09 2.78 2.87 (0.10) -- (0.18)
</TABLE>
<TABLE>
RATIOS TO AVERAGE NET ASSETS
------------------------------------------------------ NET ASSETS,
NET ASSET NET EXPENSE END PORTFOLIO
TOTAL VALUE, END TOTAL INVESTMENT WAIVER/ OF PERIOD TURNOVER
DISTRIBUTIONS OF PERIOD RETURN (H)<F65> EXPENSES INCOME REIMBURSEMENT (I)<F66> (000 OMITTED) RATE
------------- ---------- --------------- -------- ---------- ---------------------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
(0.21) $12.70 29.44% 1.17%(k)<F68> 2.00%(k)<F68> 0.23%(k)<F68> $48,699 171%
(0.82) $15.17 27.34% 1.19% 1.31% 0.20% $85,311 96%
(1.16) $17.17 22.65% 1.09% 0.86% 0.20% $45,025 60%
(0.99) $19.52 20.76% 1.34% 0.12% 0.20% $66,478 48%
(0.47) $23.89 25.26% 1.36% (0.08)% 0.16% $90,468 28%
(0.04) $17.18 4.59% 1.06%(k)<F68> 0.68%(k)<F68> 0.20%(k)<F68> $109,087 60%
(1.03) $19.51 20.91% 1.09% 0.37% 0.20% $121,475 48%
(0.51) $23.90 25.61% 1.11% 0.17% 0.16% $186,177 28%
(0.28) $15.02 35.10% 1.06% 2.17% 0.20% $131,979 24%
(0.27) $19.03 28.86% 1.04% 1.71% 0.20% $215,843 16%
(0.67) $23.48 27.69% 1.01% 1.40% 0.20% $37,748 18%
(0.99) $26.26 16.67% 1.29% 0.70% 0.20% $50,925 26%
(0.27) $29.10 11.89% 1.30% 0.52% 0.16% $54,825 11%
(0.11) $26.28 1.50% 1.04%(k)<F68> 0.95%(k)<F68> 0.20%(k)<F68> $7,847 26%
(0.29) $29.09 11.84% 1.30% 0.52% 0.16% $14,278 11%
(0.07) $23.49 3.93% 1.00%(k)<F68> 1.35%(k)<F68> 0.20%(k)<F68> $312,056 18%
(1.05) $26.27 16.95% 1.04% 0.95% 0.20% $386,405 26%
(0.34) $29.12 12.20% 1.05% 0.77% 0.16% $466,203 11%
-- $14.52 45.20% 1.94%(k)<F68> (1.19)%(k)<F68> 0.15%(k)<F68> $1,345 16%
-- $14.56 45.60% 1.69%(k)<F68> (0.94)%(k)<F68> 0.15%(k)<F68> $40,936 16%
(0.40) $12.17 15.67% 1.65% 2.98% 0.20% $48,902 104%
(0.54) $13.59 16.64% 1.66% 2.76% 0.20% $50,094 65%
(0.86) $14.27 11.94% 1.56% 2.63% 0.20% $50,398 64%
(1.65) $13.35 5.74% 1.65% 2.71% 0.20% $46,613 77%
(1.51) $12.67 6.92% 1.60% 2.49% 0.16% $40,133 39%
(0.43) $12.17 15.97% 1.40% 3.23% 0.20% $64,754 104%
(0.57) $13.59 16.94% 1.39% 2.85% 0.20% $67,047 65%
(0.90) $14.27 12.22% 1.31% 2.89% 0.20% $63,742 64%
(1.69) $13.36 6.11% 1.40% 2.96% 0.20% $58,572 77%
(1.55) $12.67 7.15% 1.35% 2.74% 0.16% $47,491 39%
(0.08) $11.82 17.35% 1.47% 0.28% 0.21% $56,430 144%
(0.29) $12.55 8.95% 1.32% (0.24)% 0.20% $79,163 174%
-- $14.34 14.26% 1.29% 0.16% 0.20% $83,118 262%
(3.10) $11.75 4.75% 1.32% (0.44)% 0.20% $79,981 94%
-- $12.32 4.85% 1.31% (0.33)% 0.16% $85,257 92%
(0.04) $10.35 3.95% 1.31%(k)<F68> 0.37%(k)<F68> 0.20%(k)<F68> $48,459 3%
(0.28) $12.94 28.44% 1.13% 0.27% 0.16% $59,496 34%
</TABLE>
(a)<F58> Reflects operations for the period from August 18, 1997 (date of
initial public investment) to November 30, 1997.
(b)<F59> Reflects operations for the period from March 31, 1998 (date of
initial public investment) to November 30, 1998.
(c)<F60> Reflects operations for the period from August 18, 1997 (date of
initial public investment) to November 30, 1997.
(d)<F61> Reflects operations for the period from December 12, 1994 (date of
initial public investment) to November 30, 1995.
(e)<F62> Reflects operations for the period from December 3, 1997 (date of
initial public investment) to November 30, 1998.
(f)<F63> Reflects operations for the period from August 9, 1999 (date of
initial public investment) to November 30, 1999.
(g)<F64> Distributions are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting
principles.
(h)<F65> Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(i)<F66> This voluntary expense decrease is reflected in both the expense and
net investment income ratios shown above.
(j)<F67> Less than one cent per share.
(k)<F68> Computed on an annualized basis.
(See Notes to Financial Statements.)
Notes to Financial Statements
NOVEMBER 30, 1999
(1) ORGANIZATION
Firstar Stellar Funds, formerly Star Funds, (the "Trust") is registered under
the Investment Company Act of 1940, as amended (the "Act"), as an open-end
management investment company. The Trust consists of ten diversified portfolios
and two non-diversified portfolios. The financial statements of the following
portfolios (individually referred to as the "Fund", or collectively as the
"Funds") are presented herein along with each Fund's investment objective:
PORTFOLIO NAME INVESTMENT OBJECTIVE
-------------- --------------------
Firstar Stellar Growth Equity Maximize capital appreciation.
Fund ("Growth Equity Fund")
Firstar Stellar Relative Value Maximize total return, a combination
Fund ("Relative Value Fund") of income and capital appreciation.
Firstar Stellar Science & Maximize growth and capital
Technology Fund ("Science appreciation by investing in the
& Technology Fund") science and technology industry.
Firstar Stellar Fund Maximize total return, a combination
("Stellar Fund") of dividend income and capital
appreciation.
Firstar Stellar Capital Maximize capital appreciation.
Appreciation Fund
("Capital Appreciation Fund")
Firstar Stellar International Long-term capital appreciation.
Equity Fund ("International
Equity Fund")
The financial statements of the Money Market Funds and Bond Funds are presented
separately. The assets of each portfolio are segregated and a shareholder's
interest is limited to the portfolio in which shares are held.
Class 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
Class A Shares in the Relative Value Fund, Stellar Fund and Capital Appreciation
Fund is 4.50% of the offering price or 4.71% of the net asset value. The
maximum sales charge on Class A Shares in the International Equity Fund is 1.50%
of the offering price or 1.52% of the net asset value. The Class 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 for the Growth
Equity Fund and Relative Value Fund is 5% for redemptions in the first year, 4%
in the second year, 3% in the third year, 2% in the fourth year, 1% in the fifth
year and 0% thereafter. The maximum sales charge for the Science & Technology
Fund is 6% for redemptions in the first year, 5% in the second year, 4% in the
third year, 3% in the fourth year, 2% in the fifth year, 1% in the sixth year
and 0% thereafter.
(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. 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. Investments in open-end
regulated investment companies are valued at net asset 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.
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, as amended, (the "Code") applicable to regulated investment companies and
to distribute to shareholders each year substantially all of its income.
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. Accordingly, at November 30, 1999, reclassifications were recorded to
increase (decrease) accumulated undistributed net investment income by $108,789,
$(1,986), $71,140, $(18,387), $274,917 and $272,598; undistributed net realized
gain (loss) on investments and options by $8,008, $1,986, $0, $18,387, $0 and
$(271,977); and paid in capital by $(116,797), $0, $(71,140), $0, $(274,917) and
$(621) for the Growth Equity, Relative Value, Science & Technology, Stellar,
Capital Appreciation and International Equity Funds.
At November 30, 1999, 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
---- ------------
Growth Equity Fund $1,146,324
Relative Value Fund 704,200
Science & Technology Fund 384,655
Stellar Fund 56,291
Capital Appreciation Fund 3,120,094
Pursuant to the Code, the capital loss carryforwards for the Growth Equity Fund,
Relative Value Fund, Science & Technology Fund, and Stellar Fund will expire in
the year 2007. The capital loss carryforward for the Capital Appreciation Fund
of $2,491,236 will expire in the year 2006 and $628,858 will expire in the year
2007.
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 Growth Equity Fund, Science & Technology Fund, Stellar Fund and Capital
Appreciation Fund may write "covered" call option contracts. All of the Funds
may also write "covered" 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 a liability and an unrealized gain or loss is measured by the
difference between the current value and the premium received. For the year
ended November 30, 1999, the Growth Equity Fund and the Science & Technology
Fund had net realized loss on options contracts, written and purchased, of
$(289,055) and $(58,195), respectively.
At November 30, 1999, the Relative Value Fund, Stellar Fund and the Capital
Appreciation Fund had no outstanding options and had no written option activity
during the year. The following is a summary of the Growth Equity Fund and the
Science & Technology Fund written options activity:
GROWTH EQUITY FUND
-----------------------------
NUMBER OF
CONTRACTS PROCEEDS*<F69>
--------- --------------
Outstanding at November 30, 1998 200 $41,700
Contracts opened 3,550 1,704,697
Contracts expired (250) (174,619)
Contracts exercised (319) (57,415)
Contracts closed (2,731) (1,462,064)
------ ----------
Outstanding at November 30, 1999 450 $52,299
------ ----------
------ ----------
SCIENCE & TECHNOLOGY FUND**<F70>
--------------------------------
NUMBER OF
CONTRACTS PROCEEDS*<F69>
--------- --------------
Contracts opened 624 $445,514
Contracts expired (20) (6,943)
Contracts closed (439) (333,320)
---- --------
Outstanding at November 30, 1999 165 $105,251
---- --------
---- --------
*<F69> Represents premium received less commissions paid.
**<F70> The Fund's date of initial public investment was August 9, 1999.
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.
H. OTHER
Investment transactions are accounted for on the trade date.
(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 were as follows:
<TABLE>
GROWTH EQUITY FUND
-----------------------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1999 NOVEMBER 30, 1998
----------------------- -----------------------
B SHARES SHARES DOLLARS SHARES DOLLARS
- ------------------------------------------------------------------- -------- -------- -------- --------
<S> <C> <C> <C> <C>
Shares sold 811,292 $17,246,658 1,070,690 $18,962,995
Shares issued to shareholders in payment of distributions declared 80,016 1,585,822 166,534 2,653,076
Shares redeemed (509,022) (10,955,687) (454,025) (8,038,756)
-------- ----------- --------- -----------
Net change resulting from B Share transactions 382,286 $7,876,793 783,199 $13,577,315
-------- ----------- --------- -----------
GROWTH EQUITY FUND
-----------------------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1999 NOVEMBER 30, 1998
----------------------- -----------------------
Y SHARES SHARES DOLLARS SHARES DOLLARS
- ------------------------------------------------------------------- -------- -------- -------- --------
Shares sold 2,900,159 $62,374,132 1,616,539 $28,733,704
Shares issued to shareholders in payment of distributions declared 90,953 1,808,878 234,170 3,740,244
Shares redeemed (1,425,496) (31,189,850) (1,975,403) (35,724,493)
---------- ----------- ---------- -----------
Net change resulting from Y Share transactions 1,565,616 32,993,160 (124,694) (3,250,545)
---------- ----------- ---------- -----------
Net change resulting from Fund Share transactions 1,947,902 $40,869,953 658,505 $10,326,770
---------- ----------- ---------- -----------
---------- ----------- ---------- -----------
RELATIVE VALUE FUND
-----------------------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1999 NOVEMBER 30, 1998
----------------------- -----------------------
A SHARES SHARES DOLLARS SHARES DOLLARS
- ------------------------------------------------------------------- -------- -------- -------- --------
Shares sold 299,582 $8,019,398 526,877 $13,142,463
Shares issued to shareholders in payment of distributions declared 18,148 499,780 70,261 1,618,422
Shares redeemed (373,125) (10,113,300) (265,353) (6,497,280)
-------- ----------- -------- -----------
Net change resulting from A Share transactions (55,395) $(1,594,122) 331,785 $8,263,605
-------- ----------- -------- -----------
RELATIVE VALUE FUND
------------------------------------------------------
YEAR ENDED PERIOD ENDED
NOVEMBER 30, 1999 NOVEMBER 30, 1998(A)<F71>
----------------------- -------------------------
B SHARES SHARES DOLLARS SHARES DOLLARS
- ------------------------------------------------------------------- -------- -------- -------- --------
Shares sold 255,384 $7,217,633 310,540 $7,699,898
Shares issued to shareholders in payment of distributions declared 3,622 99,904 990 23,405
Shares redeemed (66,816) (1,894,117) (12,931) (302,580)
------- ---------- ------- ----------
Net change resulting from B Share transactions 192,190 $5,423,420 298,599 $7,420,723
------- ---------- ------- ----------
(a)<F71> For the period from March 31, 1998 (date of initial public investment)to November 30, 1998.
RELATIVE VALUE FUND
-----------------------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1999 NOVEMBER 30, 1998
----------------------- -----------------------
Y SHARES SHARES DOLLARS SHARES DOLLARS
- ------------------------------------------------------------------- -------- -------- -------- --------
Shares sold 3,775,254 $107,616,900 3,478,155 $84,727,945
Shares issued to shareholders in payment of distributions declared 133,255 3,686,388 456,629 10,541,360
Shares redeemed (2,609,960) (73,910,142) (2,508,119) (62,841,557)
---------- ------------ ---------- -----------
Net change resulting from Y Share transactions 1,298,549 37,393,146 1,426,665 32,427,748
---------- ------------ ---------- -----------
Net change resulting from Fund Share transactions 1,435,344 $41,222,444 2,057,049 $48,112,076
---------- ------------ ---------- -----------
---------- ------------ ---------- -----------
SCIENCE & TECHNOLOGY FUND
--------------------------
PERIOD ENDED
NOVEMBER 30, 1999(B)<F72>
--------------------------
B SHARES SHARES DOLLARS
- ------------------------------------------------------------------- -------- --------
Shares sold 92,691 $1,197,347
Shares redeemed (26) (374)
------ ----------
Net change resulting from B Share transactions 92,665 $1,196,973
------ ----------
SCIENCE & TECHNOLOGY FUND
--------------------------
PERIOD ENDED
NOVEMBER 30, 1999(B)<F72>
--------------------------
Y SHARES SHARES DOLLARS
- ------------------------------------------------------------------- -------- --------
Shares sold 2,872,516 $32,591,175
Shares redeemed (61,025) (732,992)
--------- -----------
Net change resulting from Y Share transactions 2,811,491 31,858,183
--------- -----------
Net change resulting from Fund Share transactions 2,904,156 $33,055,156
--------- -----------
--------- -----------
(b)<F72> For the period from August 9, 1999 (date of initial public investment) to November 30, 1999.
STELLAR FUND
-----------------------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1999 NOVEMBER 30, 1998
----------------------- -----------------------
A SHARES SHARES DOLLARS SHARES DOLLARS
- ------------------------------------------------------------------- -------- -------- -------- --------
Shares sold 182,505 $2,276,850 330,173 $4,415,487
Shares issued to shareholders in payment of distributions declared 423,844 5,167,728 445,681 5,756,750
Shares redeemed (930,028) (11,580,535) (817,090) (10,869,740)
-------- ----------- -------- -----------
Net change resulting from A Share transactions (323,679) $(4,135,957) (41,236) $(697,503)
-------- ----------- -------- -----------
STELLAR FUND
-----------------------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1999 NOVEMBER 30, 1998
----------------------- -----------------------
Y SHARES SHARES DOLLARS SHARES DOLLARS
- ------------------------------------------------------------------- -------- -------- -------- --------
Shares sold 609,006 $7,554,282 772,860 $10,518,846
Shares issued to shareholders in payment of distributions declared 458,380 5,585,289 474,049 6,125,726
Shares redeemed (1,704,441) (21,243,690) (1,328,445) (17,849,452)
---------- ------------ ---------- -----------
Net change resulting from Y Share transactions (637,055) (8,104,119) (81,536) (1,204,880)
---------- ------------ ---------- -----------
Net change resulting from Fund Share transactions (960,734) $(12,240,076) (122,772) $(1,902,383)
---------- ------------ ---------- -----------
---------- ------------ ---------- -----------
CAPITAL APPRECIATION FUND
--------------------------------------
YEAR ENDED YEAR ENDED
A SHARES NOVEMBER 30, 1999 NOVEMBER 30, 1998
- ------------------------------------------------------------------- ----------------- ----------------
Shares sold 2,086,877 1,081,889
Shares issued to shareholders in payment of distributions declared 0 1,003,938
Shares redeemed (1,972,219) (1,075,802)
---------- ----------
Net change resulting from A Share transactions 114,658 1,010,025
---------- ----------
---------- ----------
INTERNATIONAL EQUITY FUND
----------------------------------------------
YEAR ENDED PERIOD ENDED
A SHARES NOVEMBER 30, 1999 NOVEMBER 30, 1998(C)<F73>
- ------------------------------------------------------------------- ----------------- -------------------------
Shares sold 1,131,759 5,056,920
Shares issued to shareholders in payment of distributions declared 93,554 5,114
Shares redeemed (1,311,311) (379,484)
---------- ---------
Net change resulting from A Share transactions (85,998) 4,682,550
---------- ---------
---------- ---------
</TABLE>
(c)<F73> For the period from December 3, 1997 (date of initial public
investment) to November 30, 1998.
(4) INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A. GENERAL
Certain officers of Firstar Bank, N.A. and Firstar Mutual Fund Services, LLC
("Firstar") serve as officers of the Trust. Firstar Bank, N.A. and Firstar are
related by virtue of each being a subsidiary of Firstar Corporation.
B. INVESTMENT ADVISORY FEES
Firstar Bank, N.A., the Trust's investment adviser (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
---- -----------
Growth Equity Fund 0.75%
Relative Value Fund 0.75%
Science & Technology Fund 0.90%
Stellar Fund 0.95%
Capital Appreciation Fund 0.95%
International Equity Fund 0.75%
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"), A Shares and B Shares of the
Trust 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. Effective April 1, 1999, Edgewood Services, Inc. became the distributor of
the Funds. Prior to that date, B.C. Ziegler and Company served as the
distributor of the Funds.
Currently, the Growth Equity Fund, Relative Value Fund, Science & Technology
Fund and Stellar Fund are accruing and paying 12b-1 fees. The Capital
Appreciation Fund and International Equity Fund will not accrue or pay any
distribution expenses pursuant to the Plan until a "Y" class of shares has been
registered with the Securities and Exchange Commission.
E. SHAREHOLDER SERVICES FEES
Under the terms of the Shareholder Services Agreement with Firstar Bank, N.A.,
each Fund will pay Firstar Bank, N.A. up to 0.25% of average daily net assets
for the period. Prior to March 1, 1999, Firstar Bank, N.A. limited the
Shareholder Servicing fee to 0.05% of average daily net assets. As of March 1,
1999, the Shareholder Servicing fee was changed to 0.10% of average daily net
assets. 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 Bank, N.A. serves as transfer and dividend disbursing agent for the
Funds. The fee paid to Firstar Bank, N.A. 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 net assets for the period, plus
out-of-pocket expenses.
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
year ended November 30, 1999, were as follows:
<TABLE>
PURCHASES SALES
U.S. GOVERNMENT OTHER U.S. GOVERNMENT OTHER
--------------- ----- --------------- -----
<S> <C> <C> <C> <C>
Growth Equity Fund -- $101,424,669 -- $63,759,971
Relative Value Fund -- 85,276,749 -- 52,100,696
Science & Technology Fund -- 32,982,841 -- 3,440,478
Stellar Fund $17,485,363 14,729,596 $21,467,718 23,868,158
Capital Appreciation Fund -- 75,093,139 -- 73,955,250
International Equity Fund -- 17,756,291 -- 24,134,626
</TABLE>
<TABLE>
NET UNREALIZED GROSS GROSS
COST OF APPRECIATION UNREALIZED UNREALIZED
INVESTMENTS (DEPRECIATION) APPRECIATION DEPRECIATION
FOR FEDERAL FOR FEDERAL FOR FEDERAL FOR FEDERAL
TAX PURPOSES TAX PURPOSES TAX PURPOSES TAX PURPOSES
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Growth Equity Fund $157,758,186 $118,614,636 $123,418,836 $4,804,200
Relative Value Fund 279,810,111 248,998,828 260,009,852 11,011,024
Science & Technology Fund 33,556,348 9,795,851 10,149,195 353,344
Stellar Fund 66,824,060 17,855,108 20,052,572 2,197,464
Capital Appreciation Fund 71,236,752 14,048,019 20,278,405 6,230,386
International Equity Fund 46,922,916 12,629,642 12,929,326 299,684
</TABLE>
(6) CONCENTRATION OF CREDIT RISK
The Stellar Fund invests in equity and fixed-income securities of non-U.S.
issuers. Although, the Stellar Fund maintains a diversified investment
portfolio, the political or economic developments within a particular country or
region may have an adverse effect on the ability of domiciled issuers to meet
their obligations. Additionally, political or economic developments may have an
effect on the liquidity and volatility of portfolio securities and currency
holdings.
At November 30, 1999, the diversification of industries was as follows:
PERCENT OF
INDUSTRY NET ASSETS
- -------- ----------
Banking & Financial Services 29.5%
Capital Goods 1.9
Consumer Cyclicals 8.0
Consumer Non-Durables 16.8
Energy 4.9
Manufacturing 3.9
Miscellaneous 6.2
Services 2.1
Technology 20.5
Utilities 6.2
------
100.0%
------
------
(7) DISTRIBUTIONS TO SHAREHOLDERS (UNAUDITED)
Net investment income and net realized gains, if any, are distributed to
shareholders. For the fiscal year ended November 30, 1999, the International
Equity Fund designated $607,379 as long-term capital gains for purposes of the
dividends paid deduction.
Report of Independent Public Accountants
To the Board of Trustees of the Firstar Stellar Funds and the Shareholders of
the Firstar Stellar Growth Equity Fund, Firstar Stellar Relative Value Fund,
Firstar Stellar Science & Technology Fund, Firstar Stellar Fund, Firstar Stellar
Capital Appreciation Fund, and Firstar Stellar International Equity Fund:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of the Firstar Stellar Growth Equity Fund,
Firstar Stellar Relative Value Fund, Firstar Stellar Science & Technology Fund,
Firstar Stellar Fund, Firstar Stellar Capital Appreciation Fund, and Firstar
Stellar International Equity Fund (six of the portfolios constituting the
Firstar Stellar Funds, a Massachusetts business trust (the "Trust")) as of
November 30, 1999, the related statements of operations, the statements of
changes in net assets, and the financial highlights for the periods indicated
thereon. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
November 30, 1999, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Firstar Stellar Growth Equity Fund, Firstar Stellar Relative Value Fund, Firstar
Stellar Science & Technology Fund, Firstar Stellar Fund, Firstar Stellar Capital
Appreciation Fund, and Firstar Stellar International Equity Fund of the Firstar
Stellar Funds as of November 30, 1999, and the results of their operations, the
changes in their net assets, and their financial highlights for the periods
indicated thereon, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Cincinnati, Ohio
January 7, 2000
Trustees Officers
- -------- --------
Thomas L. Conlan Jr. Daniel B. Benhase
PRESIDENT
Dr. Alfred Gottschalk Joseph C. Neuberger
VICE PRESIDENT
Dr. Robert J. Hill Michael T. Karbouski
TREASURER
Dawn M. Hornback Cheryl L. King
ASSISTANT TREASURER
Lawrence M. Turner Elaine E. Richards
SECRETARY
William H. Zimmer III
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government or the Federal
Deposit Insurance Corporation. Investment in mutual funds involves investment
risks, including the possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Trust's prospectus which contains facts
concerning its objectives and policies, management fees, expenses and other
information.
FIRSTAR STELLAR FUNDS ARE AVAILABLE THROUGH:
o THE FIRSTAR FUNDS CENTER,
o FINANCIAL CONSULTANTS WHO ARE EITHER REGISTERED
REPRESENTATIVES OF FIRSTAR INVESTMENT SERVICES, INC.,
A REGISTERED BROKER/DEALER, NASD AND SIPC MEMBER,
OR REGISTERED REPRESENTATIVES OF MDS SECURITIES,
A DIVISION OF CONSECO FINANCIAL SERVICES, INC.,
A REGISTERED BROKER/DEALER, NASD AND SIPC MEMBER,
o AND THROUGH SELECTED SHAREHOLDER ORGANIZATIONS.
This report is authorized for distribution only when preceded or
accompanied by a current prospectus.
FOR ACCOUNT BALANCE AND INVESTOR SERVICES INFORMATION
1-800-677-FUND
1-414-287-3808
FIRSTAR STELLAR FUNDS
615 EAST MICHIGAN STREET
P.O. BOX 701
MILWAUKEE, WI 53201-0701
WWW.FIRSTARSTELLARFUNDS.COM
(FIRSTAR STELLAR FUNDS LOGO)
FORM # SFSFANN-00
