FIRSTAR STELLAR TREASURY FUND
FIRSTAR STELLAR TAX-FREE MONEY MARKET FUND
FIRSTAR STELLAR OHIO TAX-FREE MONEY MARKET FUND
MONEY MARKET 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 money market 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 TREASURY FUND
This Fund seeks to provide income to shareholders with a principal value that is
stable. To achieve this the Fund invests exclusively in short-term Treasury
securities. For the twelve month period ended November 30, 1999, the Fund
returned 4.02% for C shares and 4.18% for Y shares.*<F1> This Fund remains a
solid choice for investors who are seeking taxable income while maximizing
stability.
FIRSTAR STELLAR TAX-FREE MONEY MARKET FUND
This Fund seeks current income which is exempt from Federal taxation with a
principal value that is stable. This is achieved by investing totally in a
diversified portfolio of short-term municipal securities.**<F2> For the twelve
month period ended November 30, 1999, the total return of the Fund was
2.50%.*<F1> This is an excellent choice for risk averse investors who seek tax-
free income.
FIRSTAR STELLAR OHIO TAX-FREE MONEY MARKET FUND
This Fund seeks current income which is exempt from both Federal and Ohio state
income tax. This is accomplished by investing in municipal obligations of the
state of Ohio and its municipalities.**<F2> The return for the twelve months
ended November 30, 1999 was 2.67%.*<F1> If you are an Ohio resident looking for
tax-free income with principal stability, this Fund is a great choice.
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. Although the Funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by
investing in these Funds.
**<F2> Income may be subject to the federal alternative minimum tax and state
and local taxes.
Investment Reviews
FIRSTAR STELLAR TREASURY FUND
Q Interest rates increased throughout 1999. How did the Treasury Fund
perform?
A The Fund's yield varied 80 basis points throughout the year with a low of
3.83% in June and a high of 4.63% in November, ending the year at a 4.13%
due to year end liquidity pressures. Overall, the Fund was very
competitive throughout 1999.
Q Does the Treasury Fund have a rating from an outside rating Agency?
A Yes. The Treasury Fund is rated "AAA", the highest rating possible, by
Fitch IBCA. The rating was most recently affirmed October 26, 1999.
Q What is your outlook for this Fund for the coming year?
A We will continue to invest in a fair amount of repurchase agreements to
maintain liquidity as well as look for opportunities on the treasury money
market yield curve.
FIRSTAR STELLAR TAX-FREE MONEY MARKET FUND
Q What major factors effected the tax-free money market in 1999?
A A shortage of short-term tax-free securities during periods of 1999
combined with the Federal Reserve raising interest rates three times caused
a tremendous amount of variability in short-term tax-free securities.
Q The Federal Reserve raised interest rates three times in 1999 to counter
inflation concerns. What has happened to interest rates in the tax-free
money markets?
A Variable rate tax-free securities varied over 150 basis points throughout
1999 with lows below 2.00% in February, and ending the year on a high note
at approximately 3.50%.
Q What is your outlook for this Fund for the coming year?
A The Fund will continue to use variable rate tax-free securities for
liquidity purposes as well as invest in other short-term tax-free
securities that can add value to the Fund.
FIRSTAR STELLAR OHIO TAX-FREE MONEY MARKET FUND
Q What major factors effected the tax-free money market in 1999?
A A shortage of short-term tax-free securities during periods of 1999
combined with the Federal Reserve raising interest rates three times caused
a tremendous amount of variability in short-term tax-free securities.
Q The Federal Reserve raised interest rates three times in 1999 to counter
inflation concerns. What has happened to interest rates in the tax-free
money markets?
A Variable rate tax-free securities varied over 150 basis points throughout
1999 with lows below 2.00% in February, and ending the year on a high note
at approximately 3.50%.
Q What is your outlook for this Fund for the coming year?
A The Fund will continue to use Ohio variable rate tax-free securities for
liquidity purposes as well as invest in other Ohio short-term tax-free
securities that can add value to the Fund.
Portfolios of Investments
Firstar Stellar Treasury Fund November 30, 1999
PRINCIPAL AMOUNT OR SHARES AMORTIZED COST
- -------------------------- --------------
U.S. TREASURIES - 41.8%
U.S. TREASURY BILLS - 9.7%
$100,000,000 4.975%, 1/13/2000 $99,387,250
175,000,000 4.96%, 1/20/2000 173,742,361
--------------
Total 273,129,611
--------------
U.S. TREASURY NOTES - 32.1%
20,000,000 5.625%, 12/31/1999 20,008,152
135,000,000 7.75%, 12/31/1999 135,305,126
90,000,000 5.375%, 1/31/2000 90,056,352
90,000,000 7.75%, 1/31/2000 90,375,941
50,000,000 5.875%, 2/15/2000 50,072,744
120,000,000 8.50%, 2/15/2000 120,796,297
50,000,000 5.50%, 2/29/2000 50,054,834
40,000,000 5.50%, 3/31/2000 40,033,761
100,000,000 6.875%, 3/31/2000 100,508,788
50,000,000 6.75%, 4/30/2000 50,276,813
65,000,000 6.375%, 5/15/2000 65,271,331
40,000,000 6.25%, 5/31/2000 40,176,357
50,000,000 6.125%, 7/31/2000 50,221,484
--------------
Total 903,157,980
--------------
TOTAL U.S. TREASURIES 1,176,287,591
--------------
REPURCHASE AGREEMENTS - 51.7%
660,000,000 Donaldson, Lufkin and Jenrette
Securities Corp., 5.68%,
dated 11/30/1999, due
12/1/1999, repurchase price
$660,104,133 (Collateralized
by U.S. Government Securities) 660,000,000
135,000,000 Merrill Lynch, Pierce, Fenner and
Smith, Inc., 5.64%, dated 11/30/1999,
due 12/1/1999, repurchase price
$135,021,150 (Collateralized by
U.S. Government Securities) 135,000,000
660,000,000 Warburg Dillon Read, LLC, 5.67%, dated
11/30/1999, due 12/1/1999, repurchase
price $660,103,950 (Collateralized by
U.S. Government Securities) 660,000,000
--------------
TOTAL REPURCHASE AGREEMENTS 1,455,000,000
--------------
MUTUAL FUNDS - 6.3%
48,333,708 Financial Square Treasury
Obligation Fund 48,333,708
130,304,688 Short-Term Investments Co.
Liquid Assets Portfolio 130,304,688
--------------
TOTAL MUTUAL FUNDS 178,638,396
--------------
TOTAL INVESTMENTS - 99.8% 2,809,925,987
--------------
OTHER ASSETS, LESS LIABILITIES - 0.2% 5,961,034
--------------
TOTAL NET ASSETS - 100.0% $2,815,887,021
--------------
--------------
(See Notes to Financial Statements.)
Firstar Stellar Tax-Free Money Market Fund November 30, 1999
PRINCIPAL AMOUNT OR SHARES AMORTIZED COST
- -------------------------- --------------
SHORT-TERM MUNICIPALS - 97.3%
ARIZONA - 3.4%
$5,000,000 Central Arizona Water Conservation
District Contract, Revenue Bonds,
Arizona Project, 7.125%, 11/1/2011,
Prerefunded 11/1/2000 $5,244,463
--------------
COLORADO - 1.3%
2,000,000 Smith Creek Metropolitan District of
Colorado, Revenue Bonds Weekly VRDNs,
(NationsBank, Fort Worth LOC),
3.90%, 10/1/2035 2,000,000
--------------
DELAWARE - 0.8%
1,210,000 Dover, DE Electric Revenue Bonds,
7.00%, 7/1/2015, Prerefunded 7/1/2000 1,255,294
--------------
FLORIDA - 3.5%
1,900,000 Putnam County, FL Development
Authority Pollution Control, H-1, Revenue
Bonds Weekly VRDNs, Seminole Electric,
(CFC Guaranteed LOC),
3.90%, 3/15/2014 1,900,000
1,260,000 Putnam County, FL Development
Authority Pollution Control, H-2, Revenue
Bonds Weekly VRDNs, Seminole Electric,
(CFC Guaranteed LOC),
3.90%, 3/15/2014 1,260,000
2,180,000 Sarasota County, FL School Board
Funding Corp. Lease, Revenue Bonds,
(MBIA INS), 7.25%, 7/1/2010,
Prerefunded 7/1/2000 2,244,192
--------------
Total 5,404,192
--------------
HAWAII - 1.4%
2,225,000 Hawaii Department Budget & Finance,
Special Purpose Revenue Bonds Weekly
VRDNs, Kuakini Medical Center Project,
(Bank of Hawaii LOC), 3.85%, 7/1/2005 2,225,000
--------------
ILLINOIS - 18.3%
2,230,000 Bethany, IL Home & Hospital First
Mortgage Revenue Bonds, Methodist
Church, 7.75%, 4/1/2009,
Prerefunded 4/1/2000 2,263,007
1,000,000 Cook County, IL, Revenue Bonds Weekly
VRDNs, Catholic Charities, (Northern
Trust Corp. LOC), 3.90%, 1/1/2028 1,000,000
1,435,000 Illinois Development Finance Authority,
Revenue Bonds Weekly VRDNs,
Xavier University, (American National
Bank & Trust LOC), 3.90%, 10/1/2012 1,435,000
1,000,000 Illinois Development Finance Authority,
Revenue Bonds Weekly VRDNs, St. Ignatius
College, (Northern Trust Corp. LOC),
3.90%, 6/1/2024 1,000,000
1,055,000 Illinois Development Finance Authority,
Revenue Bonds Weekly VRDNs, Lake
Forest Academy, (Northern Trust Corp.
LOC), 3.90%, 12/1/2024 1,055,000
1,520,000 Illinois Development Finance Authority,
Revenue Bonds Weekly VRDNs, St. Paul's
House Project, (LaSalle National Bank
LOC), 3.90%, 2/1/2025 1,520,000
900,000 Illinois Development Finance Authority,
Revenue Bonds Weekly VRDNs, Rest
Haven Illinan, (South Holland Trust &
Savings LOC), 3.90%, 1/1/2027 900,000
2,000,000 Illinois Development Finance Authority
Series 1993A, Weekly VRDNs, Loyola
Academy, (Northern Trust Corp. LOC),
3.90%, 10/1/2027 2,000,000
4,500,000 Illinois Development Finance Authority
Series 1996, Variable/Fixed Rate Demand
Revenue Bonds Weekly VRDNs, Chicago
Symphony Orchestra Project, (Bank of
America Illinois LOC), 3.90%, 6/1/2031 4,500,000
2,000,000 Illinois Development Finance Authority
Pollution Control Series C, Revenue Bonds
Weekly VRDNs, Illinois Power Company,
(ABN-AMRO Bank N.A. LOC),
3.65%, 11/1/2028 2,000,000
5,530,000 Illinois Educational Facilities Authority,
Revenue Bonds Weekly VRDNs, (First
National Bank LOC), 3.85%, 12/1/2025 5,530,000
2,500,000 Illinois Educational Facilities Authority,
Revenue Bonds Weekly VRDNs, Newberry
Library Project, (Northern Trust Corp.
LOC), 3.90%, 3/1/2028 2,500,000
2,900,000 Illinois Health Facilities Authority, Revenue
Bonds Weekly VRDNs, Gottlieb Health
Resources, Inc., (Harris Trust & Savings
Bank, Chicago LOC), 3.90%, 11/15/2025 2,900,000
--------------
Total 28,603,007
--------------
INDIANA - 16.5%
2,300,000 Indiana Health Facilities Funding Authority,
Revenue Bonds Weekly VRDNs, Capital
Access, (Comerica Bank LOC),
3.90%, 12/1/2002 2,300,000
4,000,000 Indiana Health Facilities Funding Authority,
Revenue Bonds Weekly VRDNs, Capital
Access, (Comerica Bank LOC),
3.90%, 1/1/2012 4,000,000
4,000,000 Indiana Health Facilities Funding Authority,
Revenue Bonds Weekly VRDNs, Capital
Access, (Comerica Bank LOC),
3.90%, 4/1/2013 4,000,000
4,700,000 Indiana Hospital Equipment Finance
Authority Series A, Revenue Bonds
Weekly VRDNs, (MBIA INS),
3.90%, 12/1/2015 4,700,000
2,400,000 Indiana State Development Finance
Authority, Revenue Bonds Weekly VRDNs,
Indiana Historical Society, (NBD Bank
LOC), 3.90%, 8/1/2031 2,400,000
1,530,000 Indianapolis, IN EDA, Revenue Bonds
Weekly VRDNs, Jewish Federation
Campus, (NBD Bank LOC),
3.90%, 4/1/2005 1,530,000
6,695,000 Purdue University, IN, Revenue Bonds
Weekly VRDNs, (Northern Trust Corp.
LOC), 3.80%, 7/1/2011 6,695,000
--------------
Total 25,625,000
--------------
KANSAS - 1.3%
2,000,000 Wyandotte County/Kansas City, KS, GO
UT, (AMBAC INS), 4.50%, 9/1/2000 2,008,668
--------------
KENTUCKY - 2.4%
3,700,000 Mason County, KY Pollution Control,
Revenue Bonds Weekly VRDNs, East
Kentucky Power, 3.90%, 10/15/2014 3,700,000
--------------
MINNESOTA - 2.2%
1,400,000 Minnesota State Higher Education Facilities
Authority, Revenue Bonds Weekly VRDNs,
Bethel College, (Allied Irish Bank PLC
LOC), 3.90%, 4/1/2028 1,400,000
2,000,000 University of Minnesota Series A, Revenue
Bonds Weekly VRDNs, 3.90%, 1/1/2034 2,000,000
--------------
Total 3,400,000
--------------
MISSISSIPPI - 1.3%
2,000,000 Forest, MS, IDR Refunding Bonds
Weekly VRDNs, Sara Lee Corp.,
3.95%, 10/1/2012 2,000,000
--------------
NORTH CAROLINA - 1.2%
1,845,000 University of North Carolina Chapel Hill
Foundation, Certificate Participation,
Weekly VRDNs, (Bank of America, N.A.
LOC), 3.90%, 10/1/2009 1,845,000
--------------
OHIO - 13.1%
1,250,000 Butler County, OH, GO LT BANs,
3.49%, 3/16/2000 1,251,369
1,670,000 Clermont County, OH, GO LT BANs,
3.40%, 12/16/1999 1,670,133
2,200,000 Cleveland, OH Income Tax Revenue
Bonds, Weekly VRDNs, (Toronto-Dominion
Bank LOC), 3.85%, 5/15/2024 2,200,000
5,000,000 Cuyahoga County, OH Hospital Authority
Series B Daily VRDNs, Cleveland Clinic,
3.90%, 1/1/2025 5,000,000
3,000,000 Hamilton County, OH Hospital Facilities
Authority Series B, Revenue Bonds Weekly
VRDNs, Health Alliance of Greater
Cincinnati, (MBIA INS), 3.85%, 1/1/2018 3,000,000
3,330,000 Ohio State University General Receipts,
Revenue Bonds Weekly VRDNs,
3.85%, 12/1/2007 3,330,000
1,700,000 Ohio State University Series B, Revenue
Bonds Weekly VRDNs, (KeyBank LOC),
4.25%, 12/1/2006 1,700,000
750,000 Marysville, OH, GO UT BANs,
3.36%, 3/18/2000 750,555
1,000,000 University of Cincinnati, OH, BANs,
Series AJ, 3.14%, 3/1/2000 1,000,507
535,000 Warren County, OH Health Care Facilities
Series B, Revenue Bonds Weekly VRDNs,
(Fifth Third Bank LOC), 3.85%, 7/1/2023 535,000
--------------
Total 20,437,564
--------------
OKLAHOMA - 1.9%
2,000,000 Oklahoma County, OK Finance Authority
IDR Bonds Monthly VRDNs, Hutto-
Carbon Office, (FGIC INS),
3.90%, 12/1/2014 2,000,000
1,000,000 Oklahoma County, OK Finance Authority
IDR Bonds Monthly VRDNs, Perrine
Office Project, (FGIC INS),
3.90%, 12/1/2014 1,000,000
--------------
Total 3,000,000
--------------
PENNSYLVANIA - 1.3%
2,000,000 Allentown, PA Area Hospital Authority
Series B, Revenue Bonds Weekly VRDNs,
Sacred Heart Hospital, (First Union
National Bank LOC), 4.00%, 7/1/2023 2,000,000
--------------
TENNESSEE - 2.0%
3,100,000 Rutherford County, TN IDB Weekly
VRDNs, Square D Co., (Societe Generale,
Chicago, IL LOC), 3.90%, 4/1/2017 3,100,000
--------------
TEXAS - 8.5%
6,000,000 Austin, TX Utility System, Revenue
Bonds, 10.75%, 5/15/2010,
Prerefunded 5/15/2000 6,180,703
2,030,000 Bexar County, Health Facilities
Development Authority, Revenue
Bonds Weekly VRDNs, Army Retirement
Resources Foundation, (Rabobank
Nederland, Utrecht LOC),
3.45%, 7/1/2011 2,030,000
3,165,000 Bexar County, Health Facilities
Development Authority Series B,
Revenue Bonds Weekly VRDNs, Army
Retirement Resources Foundation,
(Rabobank Nederland, Utrecht LOC),
3.85%, 7/1/2011 3,165,000
1,800,000 San Antonio, TX IDA Weekly VRDNs,
San Antonio River Center Associates,
(PNC Bank, N.A. LOC), 4.00%,
12/1/2012 1,800,000
--------------
Total 13,175,703
--------------
VIRGINIA - 1.3%
1,950,000 Virginia State Residential Authority Solid
Waste Disposal System, Series A,
Revenue Bonds, 7.30%, 4/1/2015,
Prerefunded 4/1/2000 2,014,274
--------------
WASHINGTON - 7.3%
2,340,000 Chelan County, WA Public Utility
District No. 1 Series A, Revenue
Bonds Weekly VRDNs, (MBIA INS),
3.80%, 6/1/2015 2,340,000
2,500,000 Seattle, WA Municipal Water,
Revenue Bonds, 7.25%, 5/1/2017,
Prerefunded 5/1/2000 2,589,869
2,740,000 Washington State Housing Finance
Community Multifamily Mortgage,
Revenue Bonds Weekly VRDNs,
Pacific First, (Federal Home
Loan Bank LOC), 3.80%, 10/1/2020 2,740,000
3,650,000 Washington State Public Power Supply
System Nuclear Project No. 3 Series B,
Revenue Bonds, 7.25%, 7/1/2015,
Prerefunded 1/1/2000 3,733,172
--------------
Total 11,403,041
--------------
WASHINGTON D.C. - 3.7%
3,000,000 District of Columbia Series A, GO UT,
7.25%, 6/1/2005,
Prerefunded 6/1/2000 3,115,517
2,605,000 District of Columbia, Revenue Bonds
VRDNs, Association of American
Medical Colleges, 7.50%, 2/15/2020,
Prerefunded 2/15/2000 2,679,295
--------------
Total 5,794,812
--------------
WISCONSIN - 4.6%
4,000,000 Milwaukee, WI Sewer District Series A,
GO UT, 6.70%, 10/1/2000,
Escrowed to maturity 4,093,912
3,000,000 Wisconsin State HEFA Series B, Revenue
Bonds Weekly VRDNs, Marshfield Clinic
Project, (Morgan Guaranty Trust LOC),
3.80%, 6/1/2010 3,000,000
--------------
Total 7,093,912
--------------
TOTAL SHORT-TERM MUNICIPALS 151,329,930
--------------
MUTUAL FUNDS - 2.1%
670,533 AIM Tax-Free Investments Co. 670,533
2,716,796 SEI Tax Exempt Money Market Fund 2,716,796
--------------
TOTAL MUTUAL FUNDS 3,387,329
--------------
TOTAL INVESTMENTS - 99.4% 154,717,259
--------------
OTHER ASSETS, LESS LIABILITIES - 0.6% 878,058
--------------
TOTAL NET ASSETS - 100.0% $155,595,317
--------------
--------------
(See Notes to Financial Statements.)
Firstar Stellar Ohio Tax-Free Money Market Fund November 30, 1999
PRINCIPAL AMOUNT OR SHARES AMORTIZED COST
- -------------------------- --------------
OHIO SHORT-TERM INVESTMENTS - 99.7%
OHIO SHORT-TERM MUNICIPALS - 95.1%
$200,000 Butler County, OH, GO LT BANs,
3.49%, 3/16/2000 $200,219
200,000 Centerville, OH Weekly VRDNs, Bethany
Lutheran Village, (PNC Bank Ohio N.A.
LOC), 4.00%, 5/1/2008 200,000
460,000 Centerville, OH Weekly VRDNs, Bethany
Lutheran Village, (PNC Bank Ohio N.A.
LOC), 4.00%, 11/1/2013 460,000
1,000,000 Clermont County, OH, GO LT BANs,
3.40%, 12/16/1999 1,000,079
1,000,000 Clermont County, OH, GO LT, 7.125%,
9/1/2011, Prerefunded 9/1/2000 1,043,352
3,200,000 Cleveland, OH Income Tax Revenue Bonds,
Weekly VRDNs, (Toronto-Dominion Bank
LOC), 3.85%, 5/15/2024 3,200,000
1,900,000 Columbus, OH, GO UT Weekly VRDNs,
3.70%, 6/1/2016 1,900,000
2,500,000 Columbus, OH, GO UT Weekly VRDNs,
3.70%, 12/1/2017 2,500,000
100,000 Columbus, OH Electrical Systems,
Electric, Light & Power Improvement
Revenue Bonds Monthly VRDNs, (Union
Bank of Switzerland, Zurich LOC),
3.60%, 9/1/2009 100,131
1,000,000 Columbus, OH Sewer System, Revenue
Bonds Series 1994, Weekly VRDNs,
3.80%, 6/1/2011 1,000,000
1,750,000 Cuyahoga County, OH Hospital Revenue
Bonds, Daily VRDNs, University Hospital
Cleveland, (Chase Manhattan Bank LOC),
3.60%, 1/1/2016 1,750,000
1,500,000 Cuyahoga County, OH Hospital Revenue
Bonds, Weekly VRDNs, Cleveland Clinic,
(Chase Manhattan Bank LOC),
3.90%, 1/1/2024 1,500,000
2,635,000 Cuyahoga County, OH Hospital Revenue
Bonds, Weekly VRDNs, Cleveland Clinic,
(Chase Manhattan Bank LOC),
3.90%, 1/1/2025 2,635,000
2,050,000 Cuyahoga County, OH Hospital Revenue
Bonds, Weekly VRDNs, Cleveland Clinic,
(Chase Manhattan Bank LOC),
3.90%, 1/1/2026 2,050,000
1,200,000 Franklin County, OH Health System
Revenue Bonds, Daily VRDNs, Franciscan
Sisters, (Chase Manhattan Bank LOC),
3.60%, 7/1/2015 1,200,000
2,400,000 Franklin County, OH Hospital Facility
Authority Series A, Weekly VRDNs,
U.S. Health Corp. of Columbus, (Morgan
Guaranty Trust Co., New York LOC),
3.90%, 12/1/2021 2,400,000
1,135,000 Franklin County, OH Hospital Revenue
Bonds, Weekly VRDNs, U.S. Health Corp.
of Columbus, 3.90%, 12/1/2011 1,135,000
2,450,000 Hamilton County, OH Hospital Facilities
Authority Series A, Revenue Bonds
Weekly VRDNs, Health Alliance of
Greater Cincinnati, (MBIA INS),
3.85%, 1/1/2018 2,450,000
2,100,000 Hamilton County, OH Hospital Facilities
Authority Series E, Revenue Bonds
Weekly VRDNs, Health Alliance of
Greater Cincinnati, (MBIA INS),
3.85%, 1/1/2018 2,100,000
1,500,000 Hamilton, OH Multifamily Series A,
Revenue Bonds Weekly VRDNs,
Knollwood Village, (Bank One Indiana
N.A. LOC), 3.92%, 1/1/2030 1,500,000
515,000 Marion County, OH Hospital Authority
Series 1991, Weekly VRDNs, Marion
County, OH Pooled Hospital Program,
(Bank One Ohio N.A. LOC),
3.92%, 11/1/2021 515,000
750,000 Marysville, OH, GO UT BANs,
3.36%, 3/18/2000 750,555
2,800,000 Middleburg Heights, OH, Hospital
Improvement Revenue Bonds Weekly
VRDNs, (KeyBank N.A. LOC),
3.90%, 8/15/2022 2,800,000
500,000 Milford, OH, GO LT BANs,
3.30%, 3/1/2000 500,301
3,000,000 Ohio State Higher Educational Facilities
Community Revenue Bonds Weekly
VRDNs, Kenyon College,
3.90%, 11/1/2035 3,000,000
2,000,000 Ohio State Highway Capital Improvement
Series C, GO UT, 4.00%, 5/1/2000 2,006,888
450,000 Ohio State IDR Weekly VRDNs, Cincinnati
Riverfront Coliseum, Inc., (PNC Bank
Ohio N.A. LOC), 4.00%, 6/1/2002 450,000
485,000 Ohio State IDR Weekly VRDNs, Cincinnati
Riverfront Coliseum, Inc., (PNC Bank
Ohio N.A. LOC), 4.00%, 6/1/2003 485,000
1,000,000 Ohio State Liquor Profits Revenue Bonds,
6.85%, 9/1/2000 1,024,070
2,000,000 Ohio State Public Facilities Community
Series IIB, 4.50%, 11/1/2000 2,014,160
2,000,000 Ohio State Public Facilities Community
Series IIB, 5.00%, 11/1/2000 2,020,977
3,200,000 Ohio State University General Receipts,
Revenue Bonds Weekly VRDNs,
3.85%, 12/1/2007 3,200,000
1,825,000 Ohio State University General Receipts
Series B, Revenue Bonds Weekly VRDNs,
4.25%, 12/1/2006 1,825,000
3,000,000 Ohio State University General Receipts,
Revenue Bonds Weekly VRDNs,
3.00%, 12/1/2017 3,000,000
2,000,000 Ohio State Water Development Authority,
Pollution Control Series 1997, Revenue
Bonds Weekly VRDNs, Philip Morris
Cos., Inc., 4.00%, 9/1/2018 2,000,000
320,000 Sycamore Community City School
District, OH, (AMBAC INS),
3.20%, 12/1/1999 320,000
1,100,000 Tiffin, OH, GO LT, 3.70%, 7/6/2000 1,101,581
975,000 Warren County, OH Health Care Facilities
Series A, Revenue Bonds Weekly VRDNs,
Otterbein Homes, (Fifth Third Bank,
Cincinnati LOC), 3.85%, 7/1/2021 975,000
3,000,000 Warren County, OH Health Care Facilities
Series B, Revenue Bonds Weekly VRDNs,
Otterbein Homes, (Fifth Third Bank,
Cincinnati LOC), 3.85%, 7/1/2023 3,000,000
--------------
TOTAL OHIO SHORT-TERM MUNICIPALS 61,312,313
--------------
OHIO MONEY MARKET MUTUAL FUND - 4.6%
2,997,215 Countrywide Ohio Tax-Free Money
Market Fund 2,997,215
--------------
TOTAL OHIO MONEY MARKET MUTUAL FUND 2,997,215
--------------
TOTAL INVESTMENTS - 99.7% 64,309,528
--------------
OTHER ASSETS, LESS LIABILITIES - 0.3% 165,645
--------------
TOTAL NET ASSETS - 100.0% $64,475,173
--------------
--------------
(See Notes to Financial Statements.)
Abbreviations to Portfolios of Investments
The following abbreviations are used in these portfolios:
AMBAC -- American Municipal Bond Assurance Corporation
BANs -- Bond Anticipation Notes
EDA -- Economic Development Authority
FGIC -- Financial Guaranty Insurance Company
GO -- General Obligation
HEFA -- Health and Education Facilities Authority
IDA -- Industrial Development Authority
IDB -- Industrial Development Bond
IDR -- Industrial Development Revenue
INS -- Insured
LOC -- Letter of Credit
LT -- Limited Tax
MBIA -- Municipal Bond Investors Assurance
UT -- Unlimited Tax
VRDNs -- Variable Rate Demand Notes
Statements of Assets and Liabilities
November 30, 1999
<TABLE>
Firstar Stellar Firstar Stellar
Tax-Free Ohio Tax-Free
Firstar Stellar Money Money
Treasury Market Market
Fund Fund Fund
--------------- --------------- ---------------
<S> <C> <C> <C>
ASSETS:
Investments in repurchase agreements $1,455,000,000 -- --
Investments in securities, at amortized cost 1,354,925,987 $154,717,259 $64,309,528
-------------- ------------ -----------
Total investments in securities, at amortized cost 2,809,925,987 154,717,259 64,309,528
-------------- ------------ -----------
Cash 89,680 -- 7,981
Income receivable 17,688,692 1,305,336 332,984
Other assets 230,948 6,161 8,695
-------------- ------------ -----------
Total assets 2,827,935,307 156,028,756 64,659,188
-------------- ------------ -----------
LIABILITIES:
Income distribution payable 9,923,414 309,307 126,692
Payable to affiliates 1,910,234 107,962 40,285
Accrued expenses 214,638 16,170 17,038
-------------- ------------ -----------
Total liabilities 12,048,286 433,439 184,015
-------------- ------------ -----------
NET ASSETS $2,815,887,021 $155,595,317 $64,475,173
-------------- ------------ -----------
-------------- ------------ -----------
NET ASSETS:
C Shares $1,049,641,364 $155,595,317 $64,475,173
Y Shares 1,766,245,657 -- --
-------------- ------------ -----------
Total net assets $2,815,887,021 $155,595,317 $64,475,173
-------------- ------------ -----------
-------------- ------------ -----------
SHARES OUTSTANDING:
C Shares 1,049,641,364 155,595,317 64,475,173
Y Shares 1,766,245,657 -- --
-------------- ------------ -----------
Total shares outstanding 2,815,887,021 155,595,317 64,475,173
-------------- ------------ -----------
-------------- ------------ -----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PROCEEDS PER SHARE:
C Shares $1.00 $1.00 $1.00
Y Shares $1.00 -- --
-------------- ------------ -----------
Investments, at identified cost $2,809,925,987 $154,717,259 $64,309,528
-------------- ------------ -----------
-------------- ------------ -----------
Investments, at tax cost $2,809,925,987 $154,717,259 $64,309,528
-------------- ------------ -----------
-------------- ------------ -----------
</TABLE>
(See Notes to Financial Statements.)
Statements of Operations
Year Ended November 30, 1999
<TABLE>
Firstar Stellar Firstar Stellar
Tax-Free Ohio Tax-Free
Firstar Stellar Money Money
Treasury Market Market
Fund Fund Fund
--------------- --------------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income $96,705,194 $4,699,752 $1,796,908
EXPENSES:
Investment advisory fees 9,863,583 803,871 307,088
Shareholder services fees 4,932,372 365,468 139,586
Administration fees 2,169,989 160,774 61,418
Distribution services fees -- C Shares 920,153 -- --
Custodian fees 493,179 36,540 13,958
Transfer and dividend disbursing agent fees and expenses 421,910 37,549 12,923
Federal and state registration fees 238,652 17,030 15,528
Portfolio accounting fees 169,651 42,533 37,685
Printing and postage 29,696 2,306 --
Auditing fees 27,834 17,433 13,010
Trustees' fees 6,440 6,341 4,857
Legal fees 399 887 1,877
Miscellaneous 51,180 2,880 1,726
----------- ---------- ----------
Total expenses 19,325,038 1,493,612 609,656
----------- ---------- ----------
Waivers--
Waiver of investment advisory fees -- (146,158) (192,918)
Waiver of shareholder services fees (3,168,486) (237,410) (91,678)
----------- ---------- ----------
Total waivers (3,168,486) (383,568) (284,596)
----------- ---------- ----------
Net expenses 16,156,552 1,110,044 325,060
----------- ---------- ----------
NET INVESTMENT INCOME $80,548,642 $3,589,708 $1,471,848
----------- ---------- ----------
----------- ---------- ----------
</TABLE>
(See Notes to Financial Statements.)
Statements of Changes in Net Assets
<TABLE>
Firstar Stellar Firstar Stellar
Firstar Stellar Tax-Free Ohio Tax-Free
Treasury Money Market Money Market
Fund Fund Fund
-------------------------- -------------------------- --------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Period Ended
November 30, November 30, November 30, November 30, November 30, November 30,
1999 1998 1999 1998 1999 1998 (a)<F3>
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS--
Net investment income $80,548,642 $63,044,398 $3,589,708 $3,435,860 $1,471,848 $1,005,066
-------------- -------------- ------------ ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS--
Distributions from net
investment income
C Shares (24,520,208) (20,969,988) (3,589,708) (3,435,860) (1,471,848) (1,005,066)
Y Shares (56,028,434) (42,074,410) -- -- -- --
-------------- -------------- ------------ ------------ ----------- -----------
Change in net assets from
distributions to shareholders (80,548,642) (63,044,398) (3,589,708) (3,435,860) (1,471,848) (1,005,066)
-------------- -------------- ------------ ------------ ----------- -----------
SHARE TRANSACTIONS--
Proceeds from sales of shares 8,570,767,432 9,879,339,361 345,887,714 490,492,605 141,618,617 137,909,771
Net asset value of shares issued to
shareholders in payment of
distributions declared 7,205,758 433,873 609,745 5,730 9,325 3,259
Cost of shares redeemed (7,427,659,654) (9,342,895,476) (325,458,578) (482,289,434) (134,766,418) (80,299,381)
-------------- -------------- ------------ ------------ ----------- -----------
Change in net assets from
share transactions 1,150,313,536 536,877,758 21,038,881 8,208,901 6,861,524 57,613,649
-------------- -------------- ------------ ------------ ----------- -----------
Change in net assets 1,150,313,536 536,877,758 21,038,881 8,208,901 6,861,524 57,613,649
-------------- -------------- ------------ ------------ ----------- -----------
NET ASSETS:
Beginning of period 1,665,573,485 1,128,695,727 134,556,436 126,347,535 57,613,649 --
-------------- -------------- ------------ ------------ ----------- -----------
End of period $2,815,887,021 $1,665,573,485 $155,595,317 $134,556,436 $64,475,173 $57,613,649
-------------- -------------- ------------ ------------ ----------- -----------
-------------- -------------- ------------ ------------ ----------- -----------
</TABLE
(a)<F3> Reflects operations from December 2, 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>
<TABLE>
RATIOS TO AVERAGE NET ASSETS
NET ASSET DISTRIBUTIONS -------------------------------------- NET ASSETS,
VALUE, NET FROM NET NET ASSET NET EXPENSE END OF
PERIOD ENDED BEGINNING INVESTMENT INVESTMENT VALUE, END TOTAL INVESTMENT WAIVER/ PERIOD
NOVEMBER 30, OF PERIOD INCOME INCOME OF PERIOD RETURN (A) EXPENSES INCOME REIMBURSEMENT (B) (000 OMITTED)
<F4> <F5>
- ------------ --------- ------ ------ --------- ---------- -------- ------ ----------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FIRSTAR STELLAR TREASURY FUND
C SHARES
1995 $1.00 0.05 (0.05) $1.00 5.23% 0.71% 5.14% 0.20% $654,963
1996 $1.00 0.05 (0.05) $1.00 4.80% 0.70% 4.69% 0.20% $829,259
1997 $1.00 0.05 (0.05) $1.00 4.85% 0.73% 4.73% 0.20% $469,400
1998 $1.00 0.05 (0.05) $1.00 4.69% 0.88% 4.58% 0.20% $542,430
1999 $1.00 0.04 (0.04) $1.00 4.02% 0.92% 3.98% 0.16% $1,049,641
Y SHARES
1997(c)<F6> $1.00 0.03 (0.03) $1.00 3.37% 0.72%(d) 4.87%(d) 0.20%(d) $659,296
<F7> <F7> <F7>
1998 $1.00 0.05 (0.05) $1.00 4.84% 0.73% 4.73% 0.20% $1,123,144
1999 $1.00 0.04 (0.04) $1.00 4.18% 0.77% 4.13% 0.16% $1,766,246
FIRSTAR STELLAR TAX-FREE MONEY MARKET FUND
C SHARES
1995 $1.00 0.03 (0.03) $1.00 3.32% 0.66% 3.26% 0.35% $167,356
1996 $1.00 0.03 (0.03) $1.00 2.91% 0.70% 2.87% 0.31% $153,256
1997 $1.00 0.03 (0.03) $1.00 3.02% 0.69% 2.96% 0.30% $126,348
1998 $1.00 0.03 (0.03) $1.00 2.83% 0.75% 2.79% 0.30% $134,556
1999 $1.00 0.02 (0.02) $1.00 2.50% 0.76% 2.46% 0.26% $155,595
FIRSTAR STELLAR OHIO TAX-FREE MONEY MARKET FUND
C SHARES
1998(e)<F8> $1.00 0.03 (0.03) $1.00 2.85% 0.69%(d) 2.81%(d) 0.60%(d) $57,614
<F7> <F7> <F7>
1999 $1.00 0.03 (0.03) $1.00 2.67% 0.58% 2.64% 0.51% $64,475
</TABLE>
(a)<F4> Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(b)<F5> This voluntary expense decrease is reflected in both the expense and
net investment income ratios.
(c)<F6> Reflects operations for the period from March 25, 1997 (date of
initial public investment) to November 30, 1997.
(d)<F7> Computed on an annualized basis.
(e)<F8> Reflects operations for the period from December 2, 1997 (date of
initial public investment) to November 30, 1998.
(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 Treasury Fund Stability of principal and current
("Treasury Fund") income consistent with stability of
principal.
Firstar Stellar Tax-Free Money Current income exempt from federal
Market Fund ("Tax-Free regular income tax consistent
Money Market Fund") with stability of principal.
Firstar Stellar Ohio Tax-Free Current income exempt from federal
Money Market Fund ("Ohio income tax and the personal
Tax-Free Money Market Fund") income taxes imposed by the state of
Ohio and Ohio municipalities with
stability of principal.
The financial statements of the Bond Funds and the Stock 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.
The Treasury Fund offers two classes of shares, (C Shares and Y Shares); the
Tax-Free Money Market Fund offers one class of shares (C Shares); and the Ohio
Tax-Free Money Market Fund offers one class of shares (C Shares).
(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
The Funds' use of the amortized cost method, which approximates market, to value
their portfolio securities is in accordance with Rule 2a-7 under the Act.
Investments in other open-end investment companies are valued at net asset
value.
B. REPURCHASE AGREEMENTS
It is the policy of the Funds to require the 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. 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, 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.
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. 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.
G. 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). At
November 30, 1999, paid in capital for the Treasury Fund, Tax-Free Money Market
Fund and Ohio Tax-Free Money Market Fund aggregated $2,815,887,021, $155,595,317
and $64,475,173, respectively. Transactions in Fund shares were as follows:
TREASURY FUND
------------------------------
YEAR YEAR
ENDED ENDED
NOVEMBER 30, NOVEMBER 30,
C SHARES 1999 1998
- -------------------------------------- ------------ ------------
Shares sold 3,727,501,528 4,205,836,659
Shares issued to shareholders
in payment of distributions
declared 6,880,377 139,604
Shares redeemed (3,227,170,514) (4,132,946,429)
--------------- ---------------
Net change resulting from
C Share transactions 507,211,391 73,029,834
--------------- ---------------
TREASURY FUND
--------------------------------
YEAR YEAR
ENDED ENDED
NOVEMBER 30, NOVEMBER 30,
Y SHARES 1999 1998
- ---------------------------------------- ------------ ------------
Shares sold 4,843,265,904 5,673,502,702
Shares issued to shareholders
in payment of distributions
declared 325,381 294,269
Shares redeemed (4,200,489,140) (5,209,949,047)
--------------- ---------------
Net change resulting from
Y Share transactions 643,102,145 463,847,924
--------------- ---------------
Net change resulting from
Fund Share transactions 1,150,313,536 536,877,758
--------------- ---------------
--------------- ---------------
TAX-FREE MONEY
MARKET FUND
--------------------------------
YEAR YEAR
ENDED ENDED
NOVEMBER 30, NOVEMBER 30,
C SHARES 1999 1998
- ---------------------------------------- ------------ ------------
Shares sold 345,887,714 490,492,605
Shares issued to shareholders
in payment of distributions
declared 609,745 5,730
Shares redeemed (325,458,578) (482,289,434)
--------------- ---------------
Net change resulting from
C Share transactions 21,038,881 8,208,901
--------------- ---------------
--------------- ---------------
OHIO TAX-FREE
MONEY MARKET FUND
-------------------------------
YEAR PERIOD
ENDED ENDED
NOVEMBER 30, NOVEMBER 30,
C SHARES 1999 1998*<F9>
- ---------------------------------------- ------------ ------------
Shares sold 141,618,617 137,909,771
Shares issued to shareholders
in payment of distributions
declared 9,325 3,259
Shares redeemed (134,766,418) (80,299,381)
--------------- ---------------
Net change resulting from
C Share transactions 6,861,524 57,613,649
--------------- ---------------
--------------- ---------------
*<F9> Reflects operations for the period from December 2, 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 NAME ANNUAL RATE
- ------------------------------- -----------
Treasury Fund 0.50%
Tax-Free Money Market Fund 0.55%
Ohio Tax-Free Money Market Fund 0.55%
The Adviser may voluntarily choose to waive a portion of its fee. The Adviser
may modify or terminate this voluntary waiver of its advisory fees at any time
at its sole discretion.
C. ADMINISTRATIVE FEES
Firstar provides the Funds with certain administrative personnel and services.
Firstar receives a fee at an annual rate of 0.11% of the average daily net
assets of each Fund for the period.
D. DISTRIBUTION SERVICES FEES
Pursuant to the provisions of a distribution plan adopted in accordance with the
Investment Company Act Rule 12b-1 (the "Plan"), C Shares of the Trust may pay to
the distributor of the Funds an amount computed at an annual rate of 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, only the Treasury Fund is accruing and paying 12b-1 fees. The Tax-
Free Money Market Fund and the Ohio Tax-Free Money Market 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 a Shareholder Services Agreement with Firstar Bank, N.A.,
each Fund may pay Firstar Bank, N.A. up to 0.25% of average daily net assets of
the Funds 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 daily net assets for the period,
plus out-of-pocket expenses.
(5) DISTRIBUTIONS TO SHAREHOLDERS (UNAUDITED)
Net investment income is distributed to shareholders. During the year ended
November 30, 1999, all of the dividends derived from net investment income paid
by the Tax-Free Money Market Fund and the Ohio Tax-Free Money Market Fund were
"tax-exempt dividends," excludable from gross income for Federal income tax
purposes. Further, all such dividends paid by the Ohio Tax-Free Money Market
Fund were "Ohio exempt-interest dividends," exempt from Ohio state personal
income tax.
Report of Independent Public Accountants
To the Board of Trustees of the Firstar Stellar Funds and the Shareholders of
the Firstar Stellar Treasury Fund, Firstar Stellar Tax-Free Money Market Fund,
and the Firstar Stellar Ohio Tax-Free Money Market Fund:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of the Firstar Stellar Treasury Fund, Firstar
Stellar Tax-Free Money Market Fund, and Firstar Stellar Ohio Tax-Free Money
Market Fund (three 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
Firstar Stellar Treasury Fund, Firstar Stellar Tax-Free Money Market Fund, and
Firstar Stellar Ohio Tax-Free Money Market 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. Although money market funds
seek to maintain a stable net asset value of $1.00 per share, there is no
assurance that they will be able to do so.
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 # SFMMANN-00
