THE
STARBURST
GOVERNMENT
MONEY MARKET
FUND
A PORTFOLIO OF
THE STARBURST FUNDS
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
APRIL 30, 1997
[BIRD LOGO] FEDERATED INVESTORS
Federated Securities Corp., Distributor
Cusip 855245304
Cusip 855245403
0060102 (6/97)
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
As part of our commitment to provide you with the highest possible level of
service, we are pleased to announce the following changes to our family of
mutual funds.
NEW NAME--The Starburst Funds have been renamed the Expedition Funds. Though the
name has changed, the funds' portfolios will continue to be managed by the
experienced professionals of Compass Bank's Asset Management Division.
NEW FUND ADMINISTRATOR--The Board has appointed SEI Fund Resources as the new
fund administrator. SEI brings a great deal of experience and ability to help
develop distribution strategies to broaden the investor base and investment
options of the Expedition Funds.
NEW EQUITY FUND--The Expedition Equity Fund is a new fund which will soon be
available for investors. This fund's primary objective is to provide long-term
growth of capital through investment in the stock market. Its secondary
objective is to provide income. Investments will include both large and
mid-capitalization stocks using a blended style of management.
EXPEDITION BOND FUND--Formerly called the Starburst Government Income Fund and
now called the Expedition Bond Fund, this fund's shareholders may enjoy greater
opportunities to increase their income potential because the fund is now able to
purchase a wider variety of securities, including corporate bonds. The average
maturity of the fund is expected to range between 3 to 5 years.
MONEY MARKET FUND--Shareholders may see an increase in their monthly dividend as
a result of a reduction in the expenses of the fund.
Please read the remainder of this semi-annual report of the Expedition Funds for
more information.
We are excited about the enhancements we are able to offer you with the
Expedition Funds. And as always, we appreciate the opportunity to serve your
investment needs and look forward to helping you plan for your financial
expedition. Please contact us at 1-800-992-2085 should you have any questions.
Cordially,
Jan Koenig, CFA
Chief Investment Officer
Compass Asset Management
THE STARBURST GOVERNMENT MONEY MARKET FUND
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
During the six-month period ended April 30, 1997, the yield on the three-month
treasury bill increased 8 basis points while the yield on the one-year treasury
bill increased 46 basis points. Thus the money market yield curve steepened 38
basis points. The Federal Reserve increased the Fed Funds rate target to 5.50%
from 5.25% as a preemptive measure to control the risk of higher inflation.
Tight labor markets, increased consumer confidence and lower exchange rates may
increase the pressure on the Federal Reserve to take further action later this
year.
Because of conflicting economic data and uncertainty regarding Federal Reserve
monetary policy, Fund average maturity was targeted at 30 to 45 days throughout
most of the period. Fund assets were heavily concentrated in overnight
repurchase agreements while the remainder of the Fund was invested in Treasury
securities.
THE STARBURST GOVERNMENT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
- ------------- --------------------------------------------------------------------------------- --------------
UNITED STATES TREASURY BILLS--17.9%
- ------------------------------------------------------------------------------------------------
$ 25,000,000 5/15/1997 $ 24,953,917
--------------------------------------------------------------------------------- --------------
UNITED STATES TREASURY NOTES--18.7%
- ------------------------------------------------------------------------------------------------
26,000,000 5.625%-7.375%, 5/15/1997-11/15/1997 26,113,158
--------------------------------------------------------------------------------- --------------
UNITED STATES TREASURY RECEIPT STRIP--2.1%
- ------------------------------------------------------------------------------------------------
3,000,000 5.538%, 5/15/1997 2,993,805
--------------------------------------------------------------------------------- --------------
(A) REPURCHASE AGREEMENTS--61.3%
- ------------------------------------------------------------------------------------------------
7,000,000 BA Securities, Inc., 5.20%, dated 4/30/1997, due 5/1/1997 7,000,000
---------------------------------------------------------------------------------
7,000,000 Barclays de Zoete Wedd Securities, Inc., 5.30%, dated 4/30/1997,
due 5/1/1997 7,000,000
---------------------------------------------------------------------------------
35,000,000 First Chicago Capital Markets, Inc., 5.33%, dated 4/30/1997,
due 5/1/1997 35,000,000
---------------------------------------------------------------------------------
7,000,000 Harris Government Securities, Inc., 5.05%, dated 4/30/1997,
due 5/1/1997 7,000,000
---------------------------------------------------------------------------------
29,587,000 Merrill Lynch, Pierce, Fenner and Smith, Inc., 5.40%, dated
4/30/1997, due 5/1/1997 29,587,000
--------------------------------------------------------------------------------- --------------
TOTAL REPURCHASE AGREEMENTS 85,587,000
--------------------------------------------------------------------------------- --------------
TOTAL INVESTMENTS (AT AMORTIZED COST) (B) $ 139,647,880
--------------------------------------------------------------------------------- --------------
</TABLE>
(a) The repurchase agreements are fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio.
(b) Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($139,630,460) at
April 30, 1997.
The following acronyms are used throughout this portfolio:
STRIP--Separate Trading of Registered Interest & Principal of Securities
(See Notes which are an integral part of the Financial Statements)
THE STARBURST GOVERNMENT MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ----------------------------------------------------------------------------------
Investments in repurchase agreements $ 85,587,000
- ----------------------------------------------------------------------------------
Investments in securities 54,060,880
- ---------------------------------------------------------------------------------- -------------
Total investments in securities, at amortized cost and value $ 139,647,880
- -------------------------------------------------------------------------------------------------
Cash 252
- -------------------------------------------------------------------------------------------------
Income receivable 591,215
- ------------------------------------------------------------------------------------------------- --------------
Total assets 140,239,347
- -------------------------------------------------------------------------------------------------
LIABILITIES:
- ----------------------------------------------------------------------------------
Income distribution payable 548,768
- ----------------------------------------------------------------------------------
Accrued expenses 60,119
- ---------------------------------------------------------------------------------- -------------
Total liabilities 608,887
- ------------------------------------------------------------------------------------------------- --------------
NET ASSETS for 139,630,460 shares outstanding $ 139,630,460
- ------------------------------------------------------------------------------------------------- --------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
- -------------------------------------------------------------------------------------------------
TRUST SHARES:
- -------------------------------------------------------------------------------------------------
$135,044,686 / 135,044,686 shares outstanding $1.00
- ------------------------------------------------------------------------------------------------- --------------
INVESTMENT SHARES:
- -------------------------------------------------------------------------------------------------
$4,585,774 / 4,585,774 shares outstanding $1.00
- ------------------------------------------------------------------------------------------------- --------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
THE STARBURST GOVERNMENT MONEY MARKET FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ----------------------------------------------------------------------------------------------------
Interest $ 4,329,667
- ----------------------------------------------------------------------------------------------------
EXPENSES:
- ----------------------------------------------------------------------------------------
Investment advisory fee $ 331,202
- ----------------------------------------------------------------------------------------
Administrative personnel and services fee 117,911
- ----------------------------------------------------------------------------------------
Custodian fees 20,312
- ----------------------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 31,160
- ----------------------------------------------------------------------------------------
Directors'/Trustees' fees 2,673
- ----------------------------------------------------------------------------------------
Auditing fees 15,994
- ----------------------------------------------------------------------------------------
Legal fees 2,348
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Portfolio accounting fees 34,703
- ----------------------------------------------------------------------------------------
Distribution services fee--Investment Shares 5,726
- ----------------------------------------------------------------------------------------
Share registration costs 11,969
- ----------------------------------------------------------------------------------------
Printing and postage 15,795
- ----------------------------------------------------------------------------------------
Insurance premiums 316
- ----------------------------------------------------------------------------------------
Miscellaneous 21,369
- ---------------------------------------------------------------------------------------- ----------
Total expenses 611,478
- ----------------------------------------------------------------------------------------
Waiver--
- ----------------------------------------------------------------------------------------
Waiver of distribution services fee--Investment Shares (2,290)
- ---------------------------------------------------------------------------------------- ----------
Net expenses 609,188
- ---------------------------------------------------------------------------------------------------- ------------
Net investment income $ 3,720,479
- ---------------------------------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
THE STARBURST GOVERNMENT MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED
APRIL 30, 1997 OCTOBER 31, 1996
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -------------------------------------------------------------------------
OPERATIONS--
- -------------------------------------------------------------------------
Net investment income $ 3,720,479 $ 6,121,311
- ------------------------------------------------------------------------- ---------------- --------------------
DISTRIBUTIONS TO SHAREHOLDERS--
- -------------------------------------------------------------------------
Distributions from net investment income
- -------------------------------------------------------------------------
Trust Shares (3,621,474) (5,859,297)
- -------------------------------------------------------------------------
Investment Shares (99,005) (262,014)
- ------------------------------------------------------------------------- ---------------- --------------------
Change in net assets resulting from
distributions to shareholders (3,720,479) (6,121,311)
- ------------------------------------------------------------------------- ---------------- --------------------
SHARE TRANSACTIONS--
- -------------------------------------------------------------------------
Proceeds from sale of shares 260,069,126 565,780,699
- -------------------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of
distributions declared 73,040 270,304
- -------------------------------------------------------------------------
Cost of shares redeemed (260,408,942) (552,511,233)
- ------------------------------------------------------------------------- ---------------- --------------------
Change in net assets resulting from share transactions (266,776) 13,539,770
- ------------------------------------------------------------------------- ---------------- --------------------
Change in net assets (266,776) 13,539,770
- -------------------------------------------------------------------------
NET ASSETS:
- -------------------------------------------------------------------------
Beginning of period 139,897,236 126,357,466
- ------------------------------------------------------------------------- ---------------- --------------------
End of period $ 139,630,460 $ 139,897,236
- ------------------------------------------------------------------------- ---------------- --------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
THE STARBURST GOVERNMENT MONEY MARKET FUND
FINANCIAL HIGHLIGHTS--TRUST SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED)
APRIL 30, YEAR ENDED OCTOBER 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1997 1996 1995 1994 1993 1992 1991
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ----------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------
Net investment income 0.02 0.05 0.05 0.03 0.03 0.04 0.06
- ----------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------
Distributions from net investment
income (0.02) (0.05) (0.05) (0.03) (0.03) (0.04) (0.06)
- ---------------------------------------- ------ --------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------- ------ --------- --------- --------- --------- --------- ---------
TOTAL RETURN (B) 2.25% 4.74% 5.29% 3.18% 2.65% 3.72% 6.05%
- ----------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------
Expenses 0.73%* 0.74% 0.69% 0.68% 0.67% 0.65% 0.64%
- ----------------------------------------
Net investment income 4.50%* 4.63% 5.15% 3.09% 2.63% 3.64% 5.76%
- ----------------------------------------
Expense waiver/reimbursement (c) -- -- -- -- -- 0.01% 0.05%
- ----------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------
Net assets, end of period (000 omitted) $135,045 $134,947 $121,074 $150,507 $175,601 $221,785 $174,158
- ----------------------------------------
<CAPTION>
<S> <C>
1990(A)
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00
- ----------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------
Net investment income 0.05
- ----------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------
Distributions from net investment
income (0.05)
- ---------------------------------------- -----
NET ASSET VALUE, END OF PERIOD $ 1.00
- ---------------------------------------- -----
TOTAL RETURN (B) 5.74%
- ----------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------
Expenses 0.62%*
- ----------------------------------------
Net investment income 7.61%*
- ----------------------------------------
Expense waiver/reimbursement (c) 0.10 %*
- ----------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------
Net assets, end of period (000 omitted) $82,346
- ----------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from February 5, 1990 (date of initial
public investment) to October 31, 1990.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
THE STARBURST GOVERNMENT MONEY MARKET FUND
FINANCIAL HIGHLIGHTS--INVESTMENT SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED)
APRIL 30, YEAR ENDED OCTOBER 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1997 1996 1995 1994 1993 1992 1991(A)
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -------------------------------------------------
Net investment income 0.02 0.04 0.05 0.03 0.02 0.04 0.03
- -------------------------------------------------
LESS DISTRIBUTIONS
- -------------------------------------------------
Distributions from net investment income (0.02) (0.04) (0.05) (0.03) (0.02) (0.04) (0.03)
- ------------------------------------------------- ----- --------- --------- --------- --------- --------- -----
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------- ----- --------- --------- --------- --------- --------- -----
TOTAL RETURN (B) 2.17% 4.58% 5.14% 3.03% 2.50% 3.61% 2.74%
- -------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------
Expenses 0.88%* 0.89% 0.84% 0.83% 0.82% 0.76% 0.64%*
- -------------------------------------------------
Net investment income 4.32%* 4.48% 5.00% 2.92% 2.48% 3.64% 5.04%*
- -------------------------------------------------
Expense waiver/reimbursement (c) 0.10%* 0.10% 0.10% 0.19% 0.20% 0.16% 0.05%*
- -------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------
Net assets, end of period (000 omitted) $4,586 $4,950 $5,284 $5,759 $5,671 $7,874 $8,947
- -------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from April 29, 1991 (date of initial
public investment) to October 31, 1991.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
THE STARBURST GOVERNMENT MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
The Expedition Funds formerly The Starburst Funds (the "Trust") is registered
under the Investment Company Act of 1940, as amended (the "Act") as an open-end,
management investment company. As of April 30, 1997 the Trust consists of three
portfolios. Effective June 9, 1997 the Trust registered a fourth portfolio, the
Expedition Equity Fund. The financial statements included herein are only those
of The Starburst Government Money Market Fund (the "Fund"). The financial
statements of the other portfolios which were operational at April 30, 1997 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
investment objective of the Fund is to provide current income consistent with
stability of principal.
The Fund offers two classes of shares: Trust Shares and Investment Shares.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS--The Fund's use of the amortized cost method to value
its portfolio securities is in accordance with Rule 2a-7 under the Act.
REPURCHASE AGREEMENTS--It is the policy of the Fund 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 Fund 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 Fund will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed
by the Fund's adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed 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 Fund could
receive less than the repurchase price on the sale of collateral
securities.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized
as required by the Internal
THE STARBURST GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
Revenue Code, as amended (the "Code"). Distributions to shareholders are
recorded on the ex-dividend date.
FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the
Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its income. Accordingly, no
provisions for federal tax are necessary.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in
when-issued or delayed delivery transactions. The Fund records when-issued
securities on the trade date and maintains 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.
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,
expenses and revenues reported in the financial statements. Actual results
could differ from those estimated.
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) for each
class of shares. At April 30, 1997, capital paid-in aggregated $139,630,460.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
APRIL 30, 1997 YEAR ENDED
TRUST SHARES (UNAUDITED) OCTOBER 31, 1996
<S> <C> <C>
Shares sold 246,868,995 514,024,508
- -------------------------------------------------------------------------
Shares issued to shareholders in payment of
distributions declared 2 2
- -------------------------------------------------------------------------
Shares redeemed (246,771,485) (500,151,199)
- ------------------------------------------------------------------------- ---------------- --------------------
Net change resulting from Trust Share transactions 97,512 13,873,311
- ------------------------------------------------------------------------- ---------------- --------------------
</TABLE>
THE STARBURST GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
APRIL 30, 1997 YEAR ENDED
INVESTMENT SHARES (UNAUDITED) OCTOBER 31, 1996
<S> <C> <C>
Shares sold 13,200,131 51,756,191
- -------------------------------------------------------------------------
Shares issued to shareholders in payment of
distributions declared 73,038 270,302
- -------------------------------------------------------------------------
Shares redeemed (13,637,457) (52,360,034)
- ------------------------------------------------------------------------- ---------------- --------------------
Net change resulting from Investment Share
transactions (364,288) (333,541)
- ------------------------------------------------------------------------- ---------------- --------------------
Net change resulting from share transactions (266,776) 13,539,770
- ------------------------------------------------------------------------- ---------------- --------------------
</TABLE>
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Compass Bank, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee
equal to 0.40% of the Fund's average daily net assets.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the
Fund with certain administrative personnel and services. The fee paid to
FAS is based on the level of average aggregate net assets of the Trust for
the period. Effective June 9, 1997, SEI Fund Resources (SFR) serves as
administrator to each Fund under an Administration Agreement. SFR is
entitled to receive an annual fee based upon each Fund's average net
assets, paid monthly, for services performed under the Administration
Agreement.
DISTRIBUTION SERVICES FEE--The Fund has adopted a Distribution Plan (the
"Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan,
the Fund will compensate Federated Securities Corp. ("FSC"), the principal
distributor, from the net assets of the Fund to finance activities intended
to result in the sale of the Fund's Investment Shares. The Plan provides
that the Fund may incur distribution expenses up to 0.25% of the average
daily net assets of the Investment Shares, annually, to compensate FSC. The
distributor may voluntarily choose to waive any portion of its fee. The
distributor can modify or terminate this voluntary waiver at any time at
its sole discretion.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--Federated
Services Company ("FServ"), through its subsidiary, Federated Shareholder
Services Company ("FSSC"), served as transfer and dividend disbursing agent
for the Fund. The fee paid to FSSC was based on the size, type, and number
of accounts and transactions made by shareholders. Effective June 9, 1997
State Street Bank and Trust Company serves as the transfer agent and Boston
Financial Data Services, Inc. serves as dividend disbursing agent for the
Funds.
THE STARBURST GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
PORTFOLIO ACCOUNTING FEES--FServ maintained the Fund's accounting records
for which it received a fee. The fee was based on the level of the Fund's
average daily net assets for the period, plus out-of-pocket expenses.
CUSTODIAN FEES--Compass Bank is the Fund's custodian. The fee is based on
the level of the Fund's average daily net assets for the period, plus
out-of-pocket expenses.
GENERAL--Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
(5) SUBSEQUENT EVENT
The Starburst Government Money Market Fund will discontinue operations and
liquidate all remaining shareholders as of June 19, 1997.
SHARES OF THE STARBURST GOVERNMENT MONEY MARKET FUND ARE NOT DEPOSITS OR
OBLIGATIONS OF COMPASS BANK, COMPASS BANCSHARES, INC. OR ANY OF ITS AFFILIATES,
OR OF ANY BANK, ARE NOT ENDORSED OR GUARANTEED BY COMPASS BANK, COMPASS
BANCSHARES, INC. OR ANY OF ITS AFFILIATES, OR BY ANY BANK, AND ARE NOT
OBLIGATIONS OF, GUARANTEED BY OR INSURED BY THE U.S. GOVERNMENT, THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER
GOVERNMENT AGENCY. INVESTMENT IN SHARES OF THE STARBURST GOVERNMENT MONEY MARKET
FUND INVOLVES INVESTMENT RISK, INCLUDING POSSIBLE LOSS OF PRINCIPAL. ALTHOUGH
THE STARBURST GOVERNMENT MONEY MARKET FUND SEEKS TO MAINTAIN A STABLE NET ASSET
VALUE OF $1.00 PER SHARE, THERE IS NO ASSURANCE THAT IT WILL BE ABLE TO DO SO.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Fund's prospectus, which contains facts
concerning its objective and policies, management fees, expenses and other
information.
