-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UsZk2uL/Wfq2YUkXk9ZO6yTlBuuKvUz+7u9BkhZdMxwHM1BGPLNjq5a+FCSkHJWs 0Vujh5R8NVtw5ocR9nvTLQ== 0000898531-99-000248.txt : 19990816 0000898531-99-000248.hdr.sgml : 19990816 ACCESSION NUMBER: 0000898531-99-000248 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990531 FILED AS OF DATE: 19990813 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRSTAR STELLAR FUNDS CENTRAL INDEX KEY: 0000846030 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 251656946 STATE OF INCORPORATION: MA FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-05762 FILM NUMBER: 99688932 BUSINESS ADDRESS: STREET 1: FIRSTAR MUTUAL FUND SERVICES LLC STREET 2: 615 EAST MICHIGAN STREET CITY: MILWAUKEE STATE: WI ZIP: 53202 BUSINESS PHONE: 8006773863 MAIL ADDRESS: STREET 1: FIRSTAR MUTUAL SERVICES LLC STREET 2: POST OFFICE BOX 701 CITY: MILWAUKEE STATE: WI ZIP: 53201-0701 FORMER COMPANY: FORMER CONFORMED NAME: STAR FUNDS DATE OF NAME CHANGE: 19930608 FORMER COMPANY: FORMER CONFORMED NAME: VALUE PLUS FUNDS DATE OF NAME CHANGE: 19890409 N-30D 1 FIRSTAR STELLAR FUND FIRSTAR STELLAR RELATIVE VALUE FUND FIRSTAR STELLAR GROWTH EQUITY FUND FIRSTAR STELLAR CAPITAL APPRECIATION FUND FIRSTAR STELLAR INTERNATIONAL EQUITY FUND STOCK FUNDS COMBINED SEMI-ANNUAL REPORT MAY 31, 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 giving us the opportunity to help you achieve your financial goals. From late 1998 through May of 1999, financial markets experienced substantial short-term volatility. The investment strategies employed by the Firstar Stellar Funds are designed 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 May 31, 1999 for the stock funds, as well as questions and answers from our portfolio managers regarding fund performance. I hope you will take the time to read this important information. FIRSTAR STELLAR GROWTH EQUITY FUND Investors in the Growth Equity Fund saw very solid performance for the first six months of its fiscal year as total returns for the six month period ended May 31, 1999 were 11.89% or 6.89% adjusted for the maximum contingent deferred sales charge, for B Shares and 11.98% for Y Shares.* The Fund's emphasis on large-cap securities with above average growth rates was once again responsible for producing good 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 Late in the six month period investors turned toward value-oriented stocks as the market retreated from an all-time high. The Fund returned 11.22% or 6.20% adjusted for the sales charge for A shares, 11.17% or 6.17% adjusted for the maximum contingent deferred sales charge for B Shares and 11.39% for Y shares for the six month period ended May 31, 1999.* This Fund emphasizes large- cap, quality securities with a concentration 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.** It produced a return of 7.70% or 6.06% adjusted for the sales charge for the six month period ended May 31, 1999. While domestic equity markets have produced high returns in recent years, the International Equity Fund offers a good opportunity to diversify for investors who seek to invest outside the United States. 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,** real estate stocks, bonds and cash. By using this combination, the Fund hopes to achieve long-term, consistent returns. For the six month period ended May 31, 1999, the Fund returned 3.45% or (1.21)% adjusted for the sales charge for A shares and 3.54% for Y shares.* This is a great choice for those who seek growth with the likelihood of less volatility than comes from a pure stock investment. FIRSTAR STELLAR CAPITAL APPRECIATION FUND The market rewarded investors in the stocks of mid-size and smaller companies late in the six month period. The Fund produced a total return of 1.62% or (2.93)% adjusted for the sales charge. This Fund provides investors diversification from the market's emphasis on large-cap stocks, as it seeks capital appreciation through investing in quality mid- and smaller size companies. We thank you for using 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 July 15, 1999 - ------------------ * 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. ** Foreign investing involves special risks including currency risk, increased volatility of foreign securities, and differences in auditing and other financial standards. INVESTMENT REVIEWS FIRSTAR STELLAR FUND Q How did the multi-asset class approach of the Stellar Fund fare as the domestic stock market first soared and then retreated in early 1999? A The Firstar Stellar Fund is a multi-asset fund designed to generate competitive total returns, but with lower volatility than other balanced funds. Highlights of the five asset classes follow: Equity--Early 1999 was characterized by strong performance of the very largest stocks, but in March the market swung away from these stocks to emphasize value and cyclical oriented securities. The Fund's diversified portfolio of domestic stocks helped it withstand the change in market direction with no ill effects, and is very important to maintaining positive long-term performance results. International--We believe that we are approaching the point where international stocks* may again begin to outperform the U.S. market. Underperformance in recent years has been warranted by the economic struggles which have plagued a large part of the globe. Signs that the Asian and Latin American economies are again picking up strength could propel the international markets forward. This Fund gives investors an opportunity to participate in any resurgence. Fixed Income--We began 1999 anticipating improved confidence and thought interest rates would remain steady or decline for most of the year. A stronger than expected economy resulted in interest rates rising, which did not help returns. The bond market offers good values which has provided a tremendous opportunity to adjust portfolio holdings. Real Estate Investment Trusts (REITs)--1998 and the first quarter of 1999 were difficult as the sector steadily declined. The environment changed in April with strong earnings reports and a solid domestic economy, and REITs as a group were up nearly 7% through May. Maintaining a diversified exposure to REITs has helped the Fund generate solid performance relative to other balanced funds. Cash Equivalents--Money market yields were essentially unchanged through the period. Holding cash equivalents reduces overall portfolio volatility. These instruments serve as the "shock absorber" in uncertain times, such as the international crisis last fall. Q What is the outlook for the components of the Fund for 1999? A Our outlook for the remainder of 1999 anticipates the pace of domestic economic growth to slow towards a more moderate level. We expect inflation will remain under 2.5% for the year, as gold and other commodity prices are signaling little inflationary pressure, and the dollar remains strong. These factors should be positive for stocks, bonds and REITs. The diversified portfolio of high quality, large-cap stocks should perform well, as the diversification helps reduce the risk caused by any potential market rotations. U.S. bond yields remain attractive, as we believe bond yields are close to their high point for the year and offer tremendous value. REITs should continue their rebound from their lows early in the year. The potential for significant performance by the international asset class is strong. The Far East markets have had large rebounds, but in many cases are still more than 50% below past peaks, which suggests the potential for the international asset class. FIRSTAR STELLAR RELATIVE VALUE FUND Q For the past two years, "value" investing has been out of favor. Do you expect this trend to continue? A We believe the recent strength in cyclical stocks and the energy sector are indicators that "value" stocks may be returning to favor. A favorable interest rate environment would allow a continued emphasis on financial issues which normally are "value" stocks. Q What sectors and companies most contributed to the performance of the Relative Value Fund in early 1999? A The energy and communication services sectors were the strongest performing sectors in the first half of 1999. Atlantic Richfield and Texaco led the energy stocks and Cincinnati Bell and Vodafone Group PLC led communication services. Other top performing stocks in 1999 have been Allied Signal, Citigroup, International Business Machines and Honeywell. - ------------------ * Foreign investing involves special risks such as currency risk, increased volatility of foreign securities and differences in auditing and other financial standards. Q How did the Relative Value Fund perform as the market rose and retreated in the first two quarters of 1999? A The Relative Value Fund lagged the market in the beginning of the year as the technology sector led the markets higher. However, in the last quarter the Fund has generated above average performance compared to its benchmark as "value" stocks returned to favor and fears of rising interest rates increased volatility in the financial markets. The Fund produced a 15.46% total rate of return (Class "Y" shares) for the twelve months ended May 31, 1999.* This exceeded the Lipper Growth and Income Fund average return of 11.48% for the same time period.** FIRSTAR STELLAR GROWTH EQUITY FUND Q The equity market saw dramatic sector rotation and volatility throughout 1998. Has this trend continued in 1999? A Absolutely this trend has continued. The beginning of 1999 was still very much characterized by the strong performance of the very large-cap stocks in the market. This is the so called "Nifty Twenty." However, starting in March the market began to rotate away from these stocks and began to emphasize more value and cyclical oriented securities. This included energy, chemical, paper and metals stocks. This shift was very sudden and was caused by investor concern over valuations versus earning expectations and the sudden rise in interest rates which was occurring. The Firstar Stellar Growth Equity Fund weathered this change very well. For the six months ended May 31, 1999, the Fund returned 11.98% to investors (Class "Y" shares).*** This was a very solid number for the time period. This Fund is extremely well diversified and has representation in all of the broad based economic sectors. The number of positions in the portfolio has generally held steady at 90 - 100 securities. This diversification helped the Fund to withstand the change in market direction with no real ill effects. We believe strongly that the diversification strategy pursued by this Fund is very important to maintaining positive long-term performance results. Our shift in equity strategy had also moved the Fund more into energy stocks and basics and reduced the technology overweight in March. This likewise helped performance. As investors continue to battle their own perception of value versus earnings growth, the market should continue to be volatile. Therefore, we believe a well diversified fund of strong, solid earnings growth companies is a great way for investors to deploy their funds. Q What companies/sectors contributed most and least to the performance of the Growth Equity Fund in early 1999? A Clearly the best performing sectors in the Fund were the energy and the basic materials groups. We were overweighted in energy stocks throughout this period as our economic forecast was calling for a substantial increase in energy prices. This move was very beneficial. The Fund also saw strong performance from the basic materials group. This was again the group which benefited from the market rotation. Individual securities which were very strong were Cisco Systems, American International Group, Parker Hannafin and Mobil. The area which had the largest negative impact was our position in health care stocks. This group was one of the best performers during 1998. However, early 1999 was a different story. Investors clearly became concerned with valuations and the possibility of negative legislation from Washington again reared its ugly head. This combination proved to be deadly to the group. Other negative performance came from Clorox, General Electric and Intel. Again, however, we believe these types of companies will continue to produce strong earnings and will lead to good performance for the Fund. - ------------------ * 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 twelve month period ended May 31, 1999 was 15.18% and 9.99%. Total return for B Shares based on net asset value and adjusted for the maximum contingent deferred sales charge for the same period was 15.27% and 10.27%. ** 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. *** 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 B Shares based on net asset value and adjusted for the maximum contingent deferred sales charge for the six month period ended May 31, 1999 was 11.89% and 6.89%. Q What is your outlook for the remainder of 1999 for the Fund? A We believe that this is still a very positive time for equity investments. Earnings estimates are accelerating quickly, reflecting a better global economic environment. Interest rates have risen dramatically and we believe they have gone too far. Therefore, positive earnings in combination with declining rates should lead to a positive market. Our emphasis on a diversified portfolio of high quality, large-cap growth stocks should still perform well. This diversification again helps to reduce the risk caused by any potential market rotations. All in all this is an excellent Fund for investors seeking capital appreciation with an average level of risk. FIRSTAR STELLAR CAPITAL APPRECIATION FUND Q For several years the market has been led by the performance of large-cap stocks. Do you expect the market to become more favorable for the medium sized companies which make up this Capital Appreciation Fund? A It does appear that the market is beginning to again focus on valuations and this is a positive for the more mid-cap oriented securities. The S&P MidCap 400 Index* is trading at about a 20% discount to the S&P 500** yet earnings expectations for those mid-cap stocks is significantly higher. As the market has rotated over the last few months, we have seen a shift away from the top tier companies, or the "Nifty Twenty", and a shift towards slightly lower cap stocks. This is clearly a movement in the right direction and gives some hope that the period of extreme underperformance is ending. If the market moves towards more of a "value" mode, this would likewise give some hope to better performance from these smaller stocks. We have a very diversified portfolio with broad exposure to most economic sectors. A majority of the companies in the portfolio are in the S&P MidCap 400 Index and therefore should participate in any shift in market sentiment. Q Which sectors and companies contributed the most and the least to the performance of the Capital Appreciation Fund in early 1999? A Sector performance for the energy stocks in the portfolio was very strong on both an absolute and a relative basis. The quick and significant rise in the price of oil was very positive for the stocks in the group. We had overweighted this group based upon our forecast of rising prices and this proved very beneficial. Surprisingly, the next biggest contributor to performance was technology. Even though the market seemed to turn away from tech stocks in the larger cap market, they performed very well in the mid-cap area. This is still an area of great earnings growth expectations and so we will continue to invest here. Some very strong individual stocks were actually two of the largest holdings, Lexmark and Best Buy. The worst performance came from health care stocks. The potential for negative legislation from Washington, combined with high valuations was a big negative for the group. This had a significant negative impact on the fund performance. We still believe that earnings growth is strong for the group and that the valuations are now more reasonable. This should lead to better long-term strength. - ------------------ * Standard & Poor's MidCap 400 Index is a capital-weighted index representing the aggregate market value of the common equity of 400 stocks with a median capitalization of approximately $700 million. These common stocks are chosen by S&P for their market size, liquidity and industry group representation. This index is unmanaged and investments cannot be made in an index. ** Standard & Poor's 500 Stock Index, a composite index of 500 common stocks in industry, transportation, and 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. FIRSTAR STELLAR INTERNATIONAL EQUITY FUND Q For most of this last decade international investing has generated lower returns than investing in domestic markets. Why should I invest in an international fund? A Although international stocks as measured by the EAFE (European, Australasia, Far East) Index* have been more volatile than the S&P 500,** long-term returns have generally been in line with the S&P 500. Generally, investor memories are short and markets tend to move in long patterns until they become either significantly under or overvalued. During the past decade, there has only been one short two year period of outperformance by international stocks. We believe that we are again approaching the point where the pendulum has swung too far and that international stocks may again begin to outperform. The recent underperformance has been warranted by the economic struggles which have plagued a large part of the globe, ex the United States. However, there are now signs developing that show the economy is again picking up strength in Asia and Latin America. This could be the impetus to again propel the international markets forward. This Fund will give investors an opportunity to participate in any resurgence and we believe those who have the risk tolerance should have some portion of their portfolio in international stocks. Q How has performance been so far in 1999? A International markets have improved early in 1999 and the Fund is up 7.70% through the six month period ended May 31, 1999.*** As mentioned above, we are beginning to see signs of economic recoveries taking place throughout the globe. While this is not robust growth, it clearly is a turn in the proper direction. Should this continue, the potential for significant performance by this asset class is very strong. The major strength has come from the Far East markets which had clearly suffered the most over the past couple of years. While the rebounds to date have been large, the market levels are still in many cases more than 50% below past peaks. So you can see there is still a lot of potential for the International Equity Fund. - ------------------ *<9> 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 an index. **<10> Standard & Poor's 500 Stock Index, a composite index of 500 common stocks in industry, transportation, and 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. ***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 six month period ended May 31, 1999 was 6.06%. PORTFOLIOS OF INVESTMENTS ---------------------------------------------------- FIRSTAR STELLAR FUND May 31, 1999 (unaudited) SHARES OR PRINCIPAL AMOUNT VALUE - --------------------------------------------------------------------------- U.S. EQUITIES - 23.5% - --------------------------------------------------------------------------- BASIC INDUSTRY - 0.7% - --------------------------------------------------------------------------- CHEMICALS - 0.1% 1,000 Dow Chemical Co. $ 121,500 - --------------------------------------------------------------------------- MANUFACTURING - 0.4% 7,000 Caterpillar, Inc. 384,125 - --------------------------------------------------------------------------- METALS & MINING - 0.2% 2,600 Alcoa Inc. 143,000 - --------------------------------------------------------------------------- TOTAL BASIC INDUSTRY 648,625 - --------------------------------------------------------------------------- BUSINESS SERVICES - 0.0% 2,880 Reckson Service Industries * 40,320 - --------------------------------------------------------------------------- CAPITAL GOODS - 4.2% - --------------------------------------------------------------------------- AUTOMOBILE - 0.3% 6,000 Ford Motor Co. 342,375 - --------------------------------------------------------------------------- COMPUTER PERIPHERAL - 0.3% 2,000 Lexmark International Group, Inc., Class A * 272,250 - --------------------------------------------------------------------------- COMPUTERS & SOFTWARE - 2.1% 4,000 BMC Software, Inc. * 197,750 14,800 Lucent Technologies Inc. 841,750 16,950 Oracle Corp. * 420,571 10,800 Sun Microsystems, Inc. * 645,300 - --------------------------------------------------------------------------- TOTAL 2,105,371 - --------------------------------------------------------------------------- ELECTRICAL EQUIPMENT - 0.6% 5,400 Emerson Electric Co. 344,925 2,700 General Electric Co. 274,556 - --------------------------------------------------------------------------- TOTAL 619,481 - --------------------------------------------------------------------------- ELECTRONICS - 0.9% 16,000 Intel Corp. 865,000 - --------------------------------------------------------------------------- TOTAL CAPITAL GOODS 4,204,477 - --------------------------------------------------------------------------- CONSUMER CYCLICAL - 3.3% - --------------------------------------------------------------------------- RETAILING & APPAREL - 3.1% 10,000 Dayton Hudson Corp. 630,000 12,000 Gap (The), Inc. 750,750 10,000 Kroger Co. (The) * 585,625 9,000 Safeway, Inc. * 418,500 16,800 Wal-Mart Stores, Inc. 716,100 - --------------------------------------------------------------------------- TOTAL 3,100,975 - --------------------------------------------------------------------------- TRANSPORTATION - 0.2% 9,000 Comair Holdings, Inc. 170,437 - --------------------------------------------------------------------------- TOTAL CONSUMER CYCLICAL 3,271,412 - --------------------------------------------------------------------------- CONSUMER STAPLES - 1.6% - --------------------------------------------------------------------------- FOOD & BEVERAGE - 0.9% 3,000 BestFoods 150,000 7,000 Sara Lee Corp. 168,000 18,000 Sysco Corp. 534,375 - --------------------------------------------------------------------------- TOTAL 852,375 - --------------------------------------------------------------------------- HOUSEHOLD PRODUCTS - 0.5% 5,000 Procter & Gamble Co. 466,875 - --------------------------------------------------------------------------- TOBACCO - 0.2% 5,000 Philip Morris Cos., Inc. 192,813 - --------------------------------------------------------------------------- TOTAL CONSUMER STAPLES 1,512,063 - --------------------------------------------------------------------------- DIVERSIFIED - 0.4% 7,000 Allied-Signal, Inc. 406,438 - --------------------------------------------------------------------------- ENERGY - 1.9% - --------------------------------------------------------------------------- ENERGY - 0.4% 8,044 SBC Communications, Inc. 411,250 - --------------------------------------------------------------------------- ENERGY SERVICE & EQUIPMENT - 0.1% 2,000 Schlumberger Ltd. 120,375 - --------------------------------------------------------------------------- INTERNATIONAL OIL - 1.0% 5,200 Chevron Corp. 481,975 5,000 Mobil Corp. 506,250 - --------------------------------------------------------------------------- TOTAL 988,225 - --------------------------------------------------------------------------- NATURAL GAS - 0.4% 8,500 Coastal Corp. 327,781 - --------------------------------------------------------------------------- TOTAL ENERGY 1,847,631 - --------------------------------------------------------------------------- FINANCE - 2.8% - --------------------------------------------------------------------------- BANKS & SAVINGS INSTITUTIONS - 0.6% 5,800 Bank One Corp. 328,062 5,100 First Union Corp. 234,918 - --------------------------------------------------------------------------- TOTAL 562,980 - --------------------------------------------------------------------------- INSURANCE - 0.7% 6,000 American International Group, Inc. 685,875 - --------------------------------------------------------------------------- OTHER FINANCE - 1.5% 6,645 Citigroup Inc. 440,231 7,200 Fannie Mae 489,600 6,000 Morgan Stanley, Dean Witter & Co. 579,000 - --------------------------------------------------------------------------- TOTAL 1,508,831 - --------------------------------------------------------------------------- TOTAL FINANCE 2,757,686 - --------------------------------------------------------------------------- HEALTH CARE - 2.7% - --------------------------------------------------------------------------- MEDICAL DEVICES - 0.9% 13,000 Guidant Corp. 650,000 3,881 Medtronic, Inc. 275,551 - --------------------------------------------------------------------------- TOTAL 925,551 - --------------------------------------------------------------------------- PHARMACEUTICALS - 1.8% 8,500 American Home Products Corp. 489,812 8,000 Bristol-Myers Squibb Co. 549,000 3,500 Pfizer Inc. 374,500 10,000 Watson Pharmaceuticals, Inc. * 383,125 - --------------------------------------------------------------------------- TOTAL 1,796,437 - --------------------------------------------------------------------------- TOTAL HEALTH CARE 2,721,988 - --------------------------------------------------------------------------- MUTUAL FUND - 1.6% 77,865 Gateway Cincinnati Fund 1,628,152 - --------------------------------------------------------------------------- REAL ESTATE - 2.5% 30,000 Cadillac Fairview Corp. * 573,750 40,000 Catellus Development Corp. * 615,000 12,500 Starwood Hotels & Resorts Worldwide, Inc. 409,375 42,000 TrizecHahn Corp. 866,250 - --------------------------------------------------------------------------- TOTAL REAL ESTATE 2,464,375 - --------------------------------------------------------------------------- TELECOMMUNICATIONS - 1.8% 9,000 Cincinnati Bell, Inc. 217,687 5,600 GTE Corp. 353,150 8,000 MCI Worldcom, Inc. * 691,000 9,000 U S West, Inc. 486,562 - --------------------------------------------------------------------------- TOTAL TELECOMMUNICATIONS 1,748,399 - --------------------------------------------------------------------------- TOTAL U.S. EQUITIES (IDENTIFIED COST $13,764,459) 23,251,566 - --------------------------------------------------------------------------- INTERNATIONAL SECURITIES - 20.7% - --------------------------------------------------------------------------- INTERNATIONAL EQUITIES - 18.6% - --------------------------------------------------------------------------- ARGENTINA - 0.2% 4,200 YPF Sociedad Anonima, ADR 176,925 - --------------------------------------------------------------------------- AUSTRALIA - 0.9% 2,900 National Australia Bank, Ltd., Melbourne, ADR 234,175 11,900 News Corp., Ltd., ADR 394,931 6,700 News Corp., Ltd., ADR, Preferred 203,931 - --------------------------------------------------------------------------- TOTAL 833,037 - --------------------------------------------------------------------------- BRAZIL - 0.1% 1,300 Telecomunicacoes Brasileiras SA, ADR, Preferred 108,631 - --------------------------------------------------------------------------- CANADA - 1.0% 4,000 Alcan Aluminum, Ltd. 112,000 5,000 Bank of Montreal Que 191,875 5,200 Nortel Networks Corp. 390,000 5,000 Seagram Co. Ltd. 259,688 - --------------------------------------------------------------------------- TOTAL 953,563 - --------------------------------------------------------------------------- DENMARK - 0.2% 4,500 Novo-Nordisk, ADR 234,000 - --------------------------------------------------------------------------- FINLAND - 0.6% 8,000 OY Nokia AB, Class A, ADR 568,000 - --------------------------------------------------------------------------- FRANCE - 1.3% 10,000 Alcatel Alsthom, ADR 236,875 8,000 AXA-UAP, ADR 468,000 3,000 Danone, ADR 164,813 1,900 Elf Aquitaine SA, ADR 134,900 6,000 Rhone-Poulenc, ADR 281,250 - --------------------------------------------------------------------------- TOTAL 1,285,838 - --------------------------------------------------------------------------- GERMANY, FEDERAL REPUBLIC OF - 2.2% 4,000 BASF AG, ADR 156,005 3,000 Commerzbank AG, Frankfurt, ADR 84,381 5,500 Daimlerchrysler AG 480,906 1,800 Deutsche Bank AG, ADR 92,098 4,700 Hoechst AG,ADR 211,500 2,000 Mannesmann AG, ADR 273,950 2,500 RWE AG, ADR 112,011 8,000 SAP AG, ADR 269,000 3,500 Siemens AG, ADR 236,046 3,500 Veba AG, ADR 200,375 9,000 Volkswagen AG, ADR 111,796 - --------------------------------------------------------------------------- TOTAL 2,228,068 - --------------------------------------------------------------------------- HONG KONG - 0.2% 25,000 Sun Hung Kai Properties Ltd., ADR 199,885 - --------------------------------------------------------------------------- IRELAND - 0.3% 6,000 Elan Corp. Plc, ADR * 324,000 - --------------------------------------------------------------------------- ITALY - 0.6% 20,000 Luxottica Group S.p.A., ADR 315,000 3,100 Telecom Italia S.p.A., ADR 319,106 - --------------------------------------------------------------------------- TOTAL 634,106 - --------------------------------------------------------------------------- JAPAN - 0.9% 500 Bridgestone Corp., Inc., ADR 131,187 7,300 Canon, Inc.,ADR 183,413 4,500 Fuji Photo Film Co., ADR 162,000 6,600 Pioneer Electronic Corp., ADR 110,550 2,800 Sony Corp., ADR 261,625 - --------------------------------------------------------------------------- TOTAL 848,775 - --------------------------------------------------------------------------- LUXEMBOURG - 0.1% 8,000 Espirito Santo Financial Group SA, ADR 123,000 - --------------------------------------------------------------------------- MEXICO - 0.2% 2,300 Telefonos de Mexico, Class L, ADR 183,856 - --------------------------------------------------------------------------- NETHERLANDS - 2.9% 24,100 ABN-AMRO Holdings NV, ADR 533,213 2,800 Equant NV, ADR * 232,225 9,400 Fortis Amev NV, ADR 306,165 4,000 Heineken NV, ADR 222,924 8,500 ING Groep NV, ADR 455,813 8,000 Koninklijke Ahold NV, ADR 281,000 3,500 Koninklijke Philips Electronics NV, ADR 301,000 2,500 Royal Dutch Petroleum Co., ADR 141,406 5,714 Unilever NV, ADR 373,214 - --------------------------------------------------------------------------- TOTAL 2,846,960 - --------------------------------------------------------------------------- SPAIN - 0.6% 5,500 Banco Santander SA, ADR 113,094 4,400 Endesa SA, ADR 94,875 6,600 Repsol SA, ADR 118,800 1,860 Telefonica SA, ADR 268,374 - --------------------------------------------------------------------------- TOTAL 595,143 - --------------------------------------------------------------------------- SWEDEN - 0.5% 12,500 Telefonaktiebolaget LM Ericsson, Class B, ADR 336,719 8,000 Volvo AB, ADR 204,000 - --------------------------------------------------------------------------- TOTAL 540,719 - --------------------------------------------------------------------------- SWITZERLAND - 1.5% 6,000 Holderbank Financiere Glaris AG, ADR 143,036 1,500 Nestle SA, ADR 135,130 3,500 Novartis AG, ADR 254,540 2,000 Roche Holding AG, ADR 212,139 16,500 UBS AG, ADR 239,346 800 Zurich Allied AG 471,546 - --------------------------------------------------------------------------- TOTAL 1,455,737 - --------------------------------------------------------------------------- UNITED KINGDOM - 4.3% 4,036 Astrazeneca Group plc, ADR 158,918 4,500 BP Amoco PLC, ADR 482,063 5,000 Barclays Bank PLC, London, ADR 610,000 4,000 British Sky Broadcasting Group plc, ADR 226,000 13,800 Cable & Wireless Communications PLC, ADR 527,850 2,500 COLT Telecom Group PLC, ADR * 215,000 2,700 Diageo plc, ADR 116,100 4,500 Glaxo Wellcome PLC, ADR 253,125 5,000 Reuters Holdings PLC, ADR 415,625 4,000 Smithkline Beecham Corp., ADR 262,500 6,000 Telewest Communications plc, ADR * 259,500 3,000 Vodafone Group PLC, ADR 574,125 2,000 WPP Group plc, ADR 163,250 - --------------------------------------------------------------------------- TOTAL 4,264,056 - --------------------------------------------------------------------------- TOTAL INTERNATIONAL EQUITIES 18,404,299 - --------------------------------------------------------------------------- CLOSED-END INVESTMENT COMPANIES - 2.1% 12,400 Irish Investment Fund, Inc. (The) 203,050 8,000 Italy Fund, Inc. (The) 115,000 62,500 Kleinwort Benson Australian Income Fund 421,875 13,500 Mexico Fund (The) 217,688 53,300 Morgan Stanley Asia-Pacific Fund 446,388 8,600 Spain Fund, Inc. 128,463 45,100 Templeton Dragon Fund, Inc. 411,538 6,500 WEBS Italy Index Fund, Inc. 158,438 - --------------------------------------------------------------------------- TOTAL CLOSED-END INVESTMENT COMPANIES 2,102,440 - --------------------------------------------------------------------------- TOTAL INTERNATIONAL SECURITIES (IDENTIFIED COST $16,203,470) 20,506,739 - --------------------------------------------------------------------------- REAL ESTATE Investment Trusts - 15.2% 10,000 Apartment Investment and Management Co. 420,000 42,071 Archstone Communities Trust 946,598 23,756 Avalonbay Communities, Inc. 840,369 8,000 Bedford Property Investors, Inc. 138,500 30,000 BRE Properties, Inc., Class A 774,375 15,000 CBL & Associates Properties, Inc. 387,188 3,400 Camden Property Trust 93,290 25,000 Chelsea GCA Realty, Inc. 948,438 25,000 Developers Diversified Realty 412,500 25,000 Eastgroup Properties, Inc. 507,813 18,875 Equity Office Properties Trust 533,219 16,000 FelCor Lodging Trust Inc. 364,350 11,000 Hospitality Properties Trust 298,375 14,000 Irvine Apartment Communities, Inc. 472,500 36,000 JDN Realty Corp. 787,500 11,000 Kilroy Realty Corp. 272,250 22,250 Kimco Realty Corp. 888,609 27,000 LaSalle Hotel Properties 379,777 5,000 Lexington Corporate Properties Trust 58,438 13,000 Liberty Property Trust 313,625 12,500 MGI Properties, Inc. 348,438 25,000 Mack-Cali Realty Corp. 809,375 20,000 New Plan Excel Realty Trust, Inc. 400,000 32,000 Pacific Gulf Properties, Inc. 712,000 12,000 Prentiss Properties Trust 283,500 30,000 RFS Hotel Investors, Inc. 410,625 18,000 Reckson Associates Realty Corp. 465,750 18,080 Simon DeBartolo Group, Inc. 528,840 16,800 Summit Properties, Inc. 326,550 24,000 Vornado Realty Trust 931,500 - --------------------------------------------------------------------------- TOTAL REAL ESTATE INVESTMENT TRUSTS (IDENTIFIED COST $13,598,368) 15,054,292 - --------------------------------------------------------------------------- FIXED-INCOME OBLIGATIONS - 26.8% - --------------------------------------------------------------------------- AUTOMOTIVE & RELATED - 0.2% $200,000 Ford Motor Credit Corp., Unsecd. Note, 6.11%, 12/28/2001 199,577 - --------------------------------------------------------------------------- CLOSED-END INVESTMENT COMPANY - 0.5% 50,000 First Commonwealth Fund Inc. 528,125 - --------------------------------------------------------------------------- ENERGY - 0.3% $250,000 Ashland Inc., Unsecd. Note, Series F, 7.90%, 8/5/2006 259,786 - --------------------------------------------------------------------------- FINANCE - 5.1% 500,000 Citicorp, Sub. Note, 8.625%, 12/1/2002 534,840 1,000,000 Citigroup Inc., Note, 9.50%, 3/1/2002 1,079,085 250,000 International Lease Finance Corp., Unsecd. Note, 6.25%, 10/15/2000 251,699 250,000 International Lease Finance Corp., Unsecd. Note, 8.375%, 12/15/2004 271,041 1,000,000 Lehman Brothers Holdings Inc., Note, 6.50%, 10/1/2002 993,313 400,000 Meditrust Corp., Note, 7.82%, 9/10/2026 355,516 200,000 Merrill Lynch & Co., Inc., 6.25%, 10/15/2008 192,320 500,000 Morgan Stanley, Dean Witter & Co., 5.625%, 1/20/2004 483,601 500,000 United Dominion Realty Trust, Inc., Note, 7.95%, 7/12/2006 481,426 365,000 Zurich Capital Trust, Company Guarantee, Series 144A, 8.376%, 6/1/2037 381,551 - --------------------------------------------------------------------------- TOTAL 5,024,392 - --------------------------------------------------------------------------- FOREIGN - 1.3% 200,000 TransCanada PipeLines Ltd., Deb., 9.875%, 1/1/2021 249,848 1,000,000 TransCanada PipeLines Ltd., Sub. Deb., 9.125%, 4/20/2006 1,087,850 - --------------------------------------------------------------------------- TOTAL 1,337,698 - --------------------------------------------------------------------------- INDUSTRIAL - 0.4% 250,000 Chevron Capital USA, Inc., 7.45%, 8/15/2004 255,626 149,854 Dow Chemical Co., Series 1992-A1, 7.60%, 1/2/2002 152,997 - --------------------------------------------------------------------------- TOTAL 408,623 - --------------------------------------------------------------------------- OIL & GAS - 0.1% 50,000 Enron Corp., 7.625%, 9/10/2004 52,024 - --------------------------------------------------------------------------- RETAILING & APPAREL - 0.5% 500,000 Sears Roebuck Acceptance Corp., Unsecd. Note, 7.00%, 6/15/2007 506,357 - --------------------------------------------------------------------------- U.S. GOVERNMENT AGENCIES - 10.5% 1,000,000 Fannie Mae, 5.42%, 1/23/2001 997,351 1,275,000 Fannie Mae, 5.36%, 2/16/2001 1,269,822 1,000,000 Fannie Mae, 5.125%, 2/13/2004 966,501 500,000 Fannie Mae, 5.25%, 1/15/2009 467,204 332,600 Fannie Mae, 6.00%, 2/25/2011 323,844 250,000 Fannie Mae, 6.93%, 9/17/2012 253,754 362,764 Fannie Mae, 9.50%, 6/25/2020 380,879 750,000 Fannie Mae, 6.50%, 4/25/2023 740,145 1,000,000 Federal Home Loan Bank, 5.60%, 7/30/1999 1,000,055 487,740 Freddie Mac, 6.25%, 7/15/2005 488,420 250,000 Freddie Mac, 5.125%, 10/15/2008 233,699 330,783 Ginnie Mae, 7.50%, 6/15/2027 338,878 1,000,000 Sallie Mae, 4.841%, 8/2/1999 999,755 1,000,000 Sallie Mae, 5.5825%, 8/11/1999 1,001,243 1,000,000 Sallie Mae, 4.881%, 3/7/2001 994,870 - --------------------------------------------------------------------------- TOTAL 10,456,420 - --------------------------------------------------------------------------- U.S. TREASURY SECURITIES - 7.4% 1,325,000 United States Treasury Bond, 7.50%, 11/15/2016 1,515,883 250,000 United States Treasury Bond, 9.00%, 11/15/2018 330,156 250,000 United States Treasury Bond, 8.125%, 8/15/2019 306,641 1,850,000 United States Treasury Bond, 6.75%, 8/15/2026 2,013,031 975,000 United States Treasury Bond, 6.125%, 11/15/2027 985,359 250,000 United States Treasury Bond, 5.50%, 8/15/2028 233,047 500,000 United States Treasury Bond, 5.25%,2/15/2029 458,438 1,500,000 United States Treasury Bond 4.875%, 3/31/2001 1,485,470 - --------------------------------------------------------------------------- TOTAL 7,328,025 - --------------------------------------------------------------------------- UTILITIES - 0.5% 500,000 Georgia Power Co., 1st Mtg. Bond, 6.625%, 4/1/2003 497,649 - --------------------------------------------------------------------------- TOTAL FIXED-INCOME OBLIGATIONS (IDENTIFIED COST $26,935,683) 26,598,676 - --------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 13.9% - --------------------------------------------------------------------------- MUTUAL FUNDS - 4.0% 2,957,691 Flex Funds 2,957,691 1,000,000 Government Money Market Fund 1,000,000 - --------------------------------------------------------------------------- TOTAL 3,957,691 - --------------------------------------------------------------------------- REPURCHASE AGREEMENT - 9.9% 9,805,000 Donaldson, Lufkin and Jenrette Securities Corp., 4.82%, dated 5/28/1999, due 6/1/1999, repurchase price $9,810,251 (Collateralized by U.S. Government Securities) 9,805,000 - --------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $13,762,691) 13,762,691 - --------------------------------------------------------------------------- TOTAL INVESTMENTS - 100.1% (IDENTIFIED COST $84,264,671) 99,173,964 - --------------------------------------------------------------------------- LIABILITIES, LESS OTHER ASSETS - (0.1%) (147,884) - --------------------------------------------------------------------------- TOTAL NET ASSETS - 100.0% $99,026,080 - --------------------------------------------------------------------------- * Non-income producing ADR -- American Depository Receipt PLC -- Public Limited Company (See Notes to Financial Statements.) ------------------------------------- FIRSTAR STELLAR RELATIVE VALUE FUND MAY 31, 1999 (UNAUDITED) - --------------------------------------------------------------------------- SHARES OR PRINCIPAL AMOUNT VALUE - --------------------------------------------------------------------------- COMMON STOCKS - 99.5% - --------------------------------------------------------------------------- AEROSPACE - 3.5% 75,000 Honeywell, Inc. $7,096,875 194,000 Lockheed Martin Corp. 7,844,875 50,000 Raytheon Co. - Class B 3,403,125 - --------------------------------------------------------------------------- TOTAL 18,344,875 - --------------------------------------------------------------------------- APPLIANCES - 1.2% 100,000 Whirlpool Corp. 6,450,000 - --------------------------------------------------------------------------- AUTOMOBILE - 2.3% 130,000 Ford Motor CO. 7,418,125 65,000 General Motors Corp. 4,485,000 - --------------------------------------------------------------------------- TOTAL 11,903,125 - --------------------------------------------------------------------------- AUTOMOTIVE & RELATED - 2.3% 45,430 Delphi Automotive Systems Corp. 891,573 130,000 Goodyear Tire & Rubber Co. 7,759,375 50,000 Johnson Controls, Inc. 3,153,125 - --------------------------------------------------------------------------- TOTAL 11,804,073 - --------------------------------------------------------------------------- BANKS & SAVINGS INSTITUTIONS - 15.3% 200,000 Bank One Corp. 11,312,500 100,000 Bank of America Corp. 6,468,750 300,000 Bank of New York Co., Inc. 10,725,000 215,000 Citigroup Inc. 14,243,750 130,000 First American Corp. 5,305,625 160,000 First Financial Bancorp 3,795,215 83,082 First Tennessee National Corp. 3,417,664 200,000 Mellon Bank Corp. 7,137,500 7,900 National Australia Bank, Ltd., Melbourne, ADR 637,925 100,000 PNC Bank Corp. 5,725,000 100,000 TCF Financial Corp. 2,775,000 200,000 Union Planters Corp. 8,262,500 - --------------------------------------------------------------------------- TOTAL 79,806,429 - --------------------------------------------------------------------------- CHEMICALS - 1.6% 200,000 Monsanto Co. 8,300,000 - --------------------------------------------------------------------------- DIVERSIFIED - 1.1% 100,000 Allied-Signal, Inc. 5,806,250 - --------------------------------------------------------------------------- DRUGS - 11.3% 200,000 American Home Products Corp. 11,525,000 260,000 Bristol-Myers Squibb Co. 17,842,500 207,000 Merck & Co., Inc. 13,972,500 240,000 Smithkline Beecham Corp., ADR 15,750,000 - --------------------------------------------------------------------------- TOTAL 59,090,000 - --------------------------------------------------------------------------- ELECTRICAL EQUIPMENT - 2.9% 150,000 General Electric Co. 15,253,125 - --------------------------------------------------------------------------- ELECTRONICS - 5.6% 540,000 Intel Corp. 29,193,750 - --------------------------------------------------------------------------- ENERGY - 1.0% 115,000 Texas Utilities Co. 5,175,000 - --------------------------------------------------------------------------- HOUSEHOLD PRODUCTS - 6.6% 194,000 Gillette Co. 9,894,000 260,000 Procter & Gamble Co. 24,277,500 - --------------------------------------------------------------------------- TOTAL 34,171,500 - --------------------------------------------------------------------------- INSURANCE - 3.5% 170,000 Cincinnati Financial Corp. 7,001,875 300,000 Ohio Casualty Corp. 11,418,750 - --------------------------------------------------------------------------- TOTAL 18,420,625 - --------------------------------------------------------------------------- MANUFACTURING - 1.7% 160,000 Lucent Technologies Inc. 9,100,000 - --------------------------------------------------------------------------- MISC. FINANCIAL SERVICES - 1.7% 75,000 American Express Co. 9,089,063 - --------------------------------------------------------------------------- OFFICE EQUIPMENT - 8.5% 380,000 International Business Machines Corp. 44,198,750 - --------------------------------------------------------------------------- OIL - 9.5% 70,000 Atlantic Richfield Co. 5,858,125 148,000 Mobil Corp. 14,985,000 156,000 Royal Dutch Petroleum Co., ADR 8,823,750 300,000 Texaco, Inc. 19,650,000 - --------------------------------------------------------------------------- TOTAL 49,316,875 - --------------------------------------------------------------------------- PHOTO EQUIPMENT & SUPPLIES - 0.5% 35,000 Eastman Kodak Co. 2,366,875 - --------------------------------------------------------------------------- RETAILING & APPAREL - 4.5% 200,000 Federated Department Stores, Inc. * 10,900,000 260,000 Sears, Roebuck & Co. 12,431,250 - --------------------------------------------------------------------------- TOTAL 23,331,250 - --------------------------------------------------------------------------- TELECOMMUNICATIONS - 9.7% 253,500 AT&T Corp. 14,069,250 67,000 Cable & Wireless Communications PLC, ADR 2,562,750 700,000 Cincinnati Bell, Inc. 16,931,250 152,000 GTE Corp. 9,585,500 39,000 Vodafone Group PLC, ADR 7,463,625 - --------------------------------------------------------------------------- TOTAL 50,612,375 - --------------------------------------------------------------------------- TOBACCO - 2.6% 350,000 Philip Morris Cos., Inc. 13,496,875 - --------------------------------------------------------------------------- UTILITIES - ELECTRIC - 2.6% 150,000 Cinergy Corp. 5,118,750 190,000 GPU, Inc. 8,276,875 - --------------------------------------------------------------------------- TOTAL 13,395,625 - --------------------------------------------------------------------------- TOTAL COMMON STOCKS (IDENTIFIED COST $273,747,628) 518,626,440 - --------------------------------------------------------------------------- SHORT-TERM INVESTMENT - 7.0% - --------------------------------------------------------------------------- REPURCHASE AGREEMENT - 7.0% $36,700,000 Donaldson, Lufkin and Jenrette Securities Corp., 4.82%, dated 5/28/1999, due 6/1/1999, repurchase price $36,719,655 (Collateralized by U.S. Government Securities) 36,700,000 - --------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENT (IDENTIFIED COST $36,700,000) 36,700,000 - --------------------------------------------------------------------------- TOTAL INVESTMENTS - 106.5% (IDENTIFIED COST $310,447,628) 555,326,440 - --------------------------------------------------------------------------- LIABILITIES, LESS OTHER ASSETS - (6.5%) (33,842,296) - --------------------------------------------------------------------------- TOTAL NET ASSETS - 100.0% $521,484,144 - --------------------------------------------------------------------------- * Non-income producing ADR -- American Depository Receipt PLC -- Public Limited Company (See Notes to Financial Statements.) -------------------------------------- FIRSTAR STELLAR GROWTH EQUITY FUND May 31, 1999 (unaudited) - --------------------------------------------------------------------------- CONTRACTS, SHARES OR PRINCIPAL AMOUNT VALUE - --------------------------------------------------------------------------- COMMON STOCKS - 96.3% - --------------------------------------------------------------------------- AEROSPACE - 0.7% 43,000 Lockheed Martin Corp. $1,738,812 - --------------------------------------------------------------------------- AUTOMOBILE - 1.3% 55,000 Ford Motor Co. 3,138,438 - --------------------------------------------------------------------------- BANKING - 5.4% 36,812 Bank of America Corp. 2,381,276 76,000 Bank One Corp. 4,298,750 35,000 Citigroup Inc. 2,318,750 21,296 First Financial Bancorp 505,780 50,000 First Union Corp. 2,303,125 10,100 J.P. Morgan & Co., Inc. 1,407,056 - --------------------------------------------------------------------------- TOTAL 13,214,737 - --------------------------------------------------------------------------- BEVERAGE & TOBACCO - 0.3% 20,000 Fortune Brands, Inc. 817,500 - --------------------------------------------------------------------------- BROADCASTING - 1.4% 52,000 Clear Channel Communications, Inc. * 3,435,250 - --------------------------------------------------------------------------- BROKERAGE SERVICES - 1.9% 22,000 Merrill Lynch & Co., Inc. 1,848,000 30,000 Morgan Stanley, Dean Witter & Co. 2,895,000 - --------------------------------------------------------------------------- TOTAL 4,743,000 - --------------------------------------------------------------------------- CHEMICALS - 2.4% 28,000 Dow Chemical Co. 3,402,000 60,000 Rohm and Haas Co. 2,407,500 - --------------------------------------------------------------------------- TOTAL 5,809,500 - --------------------------------------------------------------------------- COMMERCIAL SERVICES - 0.7% 45,000 Quintiles Transnational Corp. * 1,828,125 - --------------------------------------------------------------------------- COMPUTERS - 0.4% 25,000 Dell Computer Corp. * 860,938 - --------------------------------------------------------------------------- COMPUTER PERIPHERAL - 1.4% 25,000 Lexmark International Group, Inc., Class A* 3,403,125 - --------------------------------------------------------------------------- COMPUTER PRODUCTS & SERVICES - 12.1% 13,750 America Online, Inc. * 1,641,406 99,350 Cisco Systems, Inc. * 10,816,731 32,000 Computer Sciences Corp. * 2,070,000 36,000 EMC Corp. * 3,586,500 20,000 Hewlett-Packard Co. 1,886,250 86,000 Microsoft Corp. * 6,939,125 90,000 Oracle Corp. * 2,233,125 - --------------------------------------------------------------------------- TOTAL 29,173,137 - --------------------------------------------------------------------------- DATA PROCESSING - 0.2% 15,000 Fiserv, Inc. * 562,500 - --------------------------------------------------------------------------- DRUGS - 5.8% 40,000 American Home Products Corp. 2,305,000 52,000 Bristol-Myers Squibb Co. 3,568,500 42,000 Merck & Co., Inc. 2,835,000 21,000 Pfizer Inc. 2,247,000 80,000 Watson Pharmaceuticals, Inc. * 3,065,000 - --------------------------------------------------------------------------- TOTAL 14,020,500 - --------------------------------------------------------------------------- DRUG STORES - 0.5% 26,000 CVS Corp. 1,196,000 - --------------------------------------------------------------------------- ELECTRIC - 1.2% 65,000 GPU, Inc. 2,831,563 - --------------------------------------------------------------------------- ELECTRICAL EQUIPMENT - 1.8% 42,000 General Electric Co. 4,270,875 - --------------------------------------------------------------------------- ELECTRONIC TECHNOLOGY - 7.0% 82,680 Intel Corp. 4,469,887 75,092 Lucent Technologies, Inc. 4,270,858 60,000 Sun Microsystems, Inc. * 3,585,000 73,000 Telefonaktiebolaget LM Ericsson, Class B, ADR 1,966,437 25,000 Texas Instruments Inc. 2,734,375 - --------------------------------------------------------------------------- TOTAL 17,026,557 - --------------------------------------------------------------------------- ENERGY SERVICES - 1.6% 25,000 BJ Services Co. * 689,063 30,000 Duke Energy Corp. 1,809,375 35,000 Halliburton Co. 1,448,125 - --------------------------------------------------------------------------- TOTAL 3,946,563 - --------------------------------------------------------------------------- ENTERTAINMENT - 0.5% 43,441 Disney (Walt) Co. 1,265,219 - --------------------------------------------------------------------------- FOOD & BEVERAGE - 2.3% 50,000 Campbell Soup Co. 2,206,250 48,000 PepsiCo, Inc. 1,719,000 40,000 U.S. Foodservice, Inc. * 1,780,000 - --------------------------------------------------------------------------- TOTAL 5,705,250 - --------------------------------------------------------------------------- GOVERNMENT AGENCY - 2.4% 50,000 Fannie Mae 3,400,000 59,500 SLM Holding Corp. 2,469,250 - --------------------------------------------------------------------------- TOTAL 5,869,250 - --------------------------------------------------------------------------- HEALTH TECHNOLOGY - 1.0% 50,000 Guidant Corp. 2,500,000 - --------------------------------------------------------------------------- HOUSEHOLD PRODUCTS - 5.1% 45,000 Clorox Co. 4,542,188 20,000 Gillette Co. 1,020,000 73,658 Procter & Gamble Co. 6,877,816 - --------------------------------------------------------------------------- TOTAL 12,440,004 - --------------------------------------------------------------------------- INSURANCE - 5.6% 85,000 Allstate Corp. 3,097,187 68,811 American International Group, Inc. 7,865,957 40,000 Conseco, Inc. 1,222,500 40,000 Ohio Casualty Corp. 1,522,500 - --------------------------------------------------------------------------- TOTAL 13,708,144 - --------------------------------------------------------------------------- MANUFACTURING - 0.5% 15,000 Illinois Tool Works Inc. 1,151,250 - --------------------------------------------------------------------------- MEDICAL PRODUCTS & SERVICES - 2.8% 40,000 Becton, Dickinson and Co. 1,550,000 62,250 Cardinal Health, Inc. 3,758,343 21,515 Medtronic, Inc. 1,527,565 - --------------------------------------------------------------------------- TOTAL 6,835,908 - --------------------------------------------------------------------------- METALS & MINING - 1.4% 60,000 Alcoa Inc. 3,300,000 - --------------------------------------------------------------------------- MULTI-INDUSTRY - 1.0% 41,058 Allied-Signal, Inc. 2,383,930 - --------------------------------------------------------------------------- NATURAL GAS - 1.1% 72,300 Coastal Corp. 2,788,069 - --------------------------------------------------------------------------- OFFICE EQUIPMENT - 1.1% 24,000 International Business Machines Corp. 2,791,500 - --------------------------------------------------------------------------- OIL - 5.8% 17,500 Ashland Inc. 713,125 22,000 Atlantic Richfield Co. 1,841,125 23,233 BP Amoco PLC, ADR 2,488,835 35,000 Chevron Corp. 3,244,063 42,600 Mobil Corp. 4,313,250 25,000 Texaco Inc. 1,637,500 - --------------------------------------------------------------------------- TOTAL 14,237,898 - --------------------------------------------------------------------------- PRODUCER MANUFACTURING - 4.9% 90,000 Masco Corp. 2,570,625 40,000 PACCAR, Inc. 2,252,500 102,500 Parker-Hannifin Corp. 4,477,969 30,000 Textron, Inc. 2,671,875 - --------------------------------------------------------------------------- TOTAL 11,972,969 - --------------------------------------------------------------------------- RETAIL TRADE - 7.6% 95,000 Federated Department Stores, Inc. * 5,177,500 5,000 Federated Department Stores, Inc., Warrants, 12/19/2001* 137,500 61,600 Kohl's Corp. * 4,200,350 116,526 Premark International, Inc. 4,173,087 66,244 Safeway, Inc. * 3,080,346 40,000 Wal-Mart Stores, Inc. 1,705,000 - --------------------------------------------------------------------------- TOTAL 18,473,783 - --------------------------------------------------------------------------- TELECOMMUNICATIONS - 6.2% 100,000 Alcatel SA ADR 2,368,750 37,500 AT&T Corp. 2,081,250 23,040 Bell Atlantic Corp. 1,261,440 56,000 Bellsouth Corp. 2,642,500 17,300 GTE Corp. 1,090,981 45,000 MCI Worldcom, Inc. * 3,886,875 9,200 Vodafone Group PLC, ADR 1,760,650 - --------------------------------------------------------------------------- TOTAL 15,092,446 - --------------------------------------------------------------------------- UTILITIES - ELECTRIC - 0.9% 50,000 DTE Energy Co. 2,178,125 - --------------------------------------------------------------------------- TOTAL COMMON STOCKS (IDENTIFIED COST $147,749,508) 234,710,865 - --------------------------------------------------------------------------- MUTUAL FUND - 0.1% 19,063 Dean Large Cap Value Fund, Class A 217,125 - --------------------------------------------------------------------------- TOTAL MUTUAL FUND (IDENTIFIED COST $202,868) 217,125 - --------------------------------------------------------------------------- REAL ESTATE INVESTMENT TRUST - 0.3% 60,000 RFS Hotel Investors, Inc. 821,250 - --------------------------------------------------------------------------- TOTAL REAL ESTATE INVESTMENT TRUST (IDENTIFIED COST $734,295) 821,250 - --------------------------------------------------------------------------- OPTIONS PURCHASED - 0.0% 50 Put Option on Dell Computer Corp., Expires 6/19/1999, Strike @ $30 2,188 - --------------------------------------------------------------------------- TOTAL OPTIONS PURCHASED (IDENTIFIED COST $3,950) 2,188 - --------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 3.2% - --------------------------------------------------------------------------- MUTUAL FUND - 0.7% 1,751,986 Government Money Market Fund 1,751,986 - --------------------------------------------------------------------------- REPURCHASE AGREEMENT - 2.5% $6,045,000 Donaldson, Lufkin and Jenrette Securities Corp., 4.82%, dated 5/28/1999, due 6/1/1999, repurchase price $6,048,237 (Collateralized by U.S. Government Securities) 6,045,000 - --------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $7,796,986) 7,796,986 - --------------------------------------------------------------------------- TOTAL INVESTMENTS - 99.9% (IDENTIFIED COST $156,487,607) 243,548,414 - --------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES - 0.1% 245,599 - --------------------------------------------------------------------------- TOTAL NET ASSETS - 100.0% $243,794,013 - --------------------------------------------------------------------------- SCHEDULE OF CALL OPTIONS WRITTEN 50 Computer Science Corp., Expires 6/19/1999, Exercise Price $75.00 $3,125 50 GTE Corp., Expires 9/18/1999, Exercise Price $65.00 18,125 - --------------------------------------------------------------------------- TOTAL CALL OPTIONS WRITTEN (Premiums Received $22,724) $21,250 - --------------------------------------------------------------------------- * Non-income producing ADR -- American Depository Receipt PLC -- Public Limited Company (See Notes to Financial Statements.) ------------------------------- FIRSTAR STELLAR CAPITAL APPRECIATION FUND May 31, 1999 (unaudited) - --------------------------------------------------------------------------- SHARES OR PRINCIPAL AMOUNT VALUE - --------------------------------------------------------------------------- COMMON STOCKS - 96.0% - --------------------------------------------------------------------------- AIRLINES - 1.0% 12,000 Alaska Air Group, Inc. * $498,000 18,000 Comair Holdings, Inc. 340,875 - --------------------------------------------------------------------------- TOTAL 838,875 - --------------------------------------------------------------------------- AEROSPACE & DEFENSE - 1.7% 17,300 Gulfstream Aerospace Corp. * 1,068,275 30,000 Kaman Corp. 397,500 - --------------------------------------------------------------------------- TOTAL 1,465,775 - --------------------------------------------------------------------------- AGRICULTURAL - 0.5% 10,000 IMC Global Inc. 209,375 4,000 Potash Corp. of Saskatchewan Inc. 217,500 - --------------------------------------------------------------------------- TOTAL 426,875 - --------------------------------------------------------------------------- APPLIANCES - 1.3% 16,000 Maytag Corp. 1,129,000 - --------------------------------------------------------------------------- AUTOMOTIVE & RELATED - 1.1% 2,000 Arvin Industries, Inc. 78,500 13,000 Federal-Mogul Corp. 599,625 5,000 Lear Corp. * 245,937 - --------------------------------------------------------------------------- TOTAL 924,062 - --------------------------------------------------------------------------- BANKING - 3.7% 25,000 City National Corp. 984,375 26,000 First Tennessee National Corp. 1,070,875 35,000 Hibernia Corp. 498,750 8,000 Marshall & Ilsley Corp. 560,000 - --------------------------------------------------------------------------- TOTAL 3,114,000 - --------------------------------------------------------------------------- BUILDING & CONSTRUCTION - 5.7% 34,400 Astec Industries, Inc. * 1,285,700 16,000 Granite Construction Inc. 449,000 24,000 Jacobs Engineering Group Inc. * 892,500 18,000 Martin Marietta Materials, Inc. 1,091,250 2,000 Rayonier Inc. 93,250 6,000 Southdown, Inc. 380,250 3,000 U.S.G. Corp. * 169,875 10,000 Vulcan Materials Co. 451,875 - --------------------------------------------------------------------------- TOTAL 4,813,700 - --------------------------------------------------------------------------- CHEMICALS - 0.4% 10,000 Albemarle Corp. 224,375 3,000 Lubrizol Corp. (The) 82,500 - --------------------------------------------------------------------------- TOTAL 306,875 - --------------------------------------------------------------------------- COMMERCIAL SERVICES - 0.3% 6,500 Quintiles Transnational Corp. * 264,062 - --------------------------------------------------------------------------- COMPUTER PRODUCTS & SERVICES - 6.5% 10,000 Electronic Arts, Inc. * 489,375 12,500 Intuit, Inc. * 1,017,188 20,000 Lexmark International Group, Inc., Class A * 2,722,500 5,000 NCR Corp. * 195,313 6,000 Network Associates, Inc. * 88,125 32,000 Sterling Software, Inc. * 778,000 5,000 SunGard Data Systems Inc. * 175,000 - --------------------------------------------------------------------------- TOTAL 5,465,501 - --------------------------------------------------------------------------- COMPUTERS & SOFTWARE - 2.2% 10,000 Citrix Systems, Inc. * 494,375 58,000 InterVoice, Inc. * 645,250 8,000 Mentor Graphics Corp. * 101,000 7,000 Rational Software Corp. * 236,688 10,000 Symantec Corp.* 245,000 4,000 Synopsys, Inc. * 177,500 - --------------------------------------------------------------------------- TOTAL 1,899,813 - --------------------------------------------------------------------------- CONSUMER NON-DURABLES - 0.8% 11,000 Cintas Corp. 698,500 - --------------------------------------------------------------------------- DENTAL SUPPLIES & EQUIPMENT - 0.2% 5,000 DENTSPLY International Inc. 135,000 - --------------------------------------------------------------------------- DISTRIBUTION - 0.4% 18,000 United Stationers, Inc. * 337,500 - --------------------------------------------------------------------------- DRUGS - 2.1% 20,000 Mylan Laboratories, Inc. 507,500 12,000 Omnicare, Inc. 287,250 26,000 Watson Pharmaceuticals, Inc. * 996,125 - --------------------------------------------------------------------------- TOTAL 1,790,875 - --------------------------------------------------------------------------- ELECTRICAL PRODUCTS & INSTRUMENTS - 1.3% 9,000 Linear Technology Corp. 477,000 7,000 Microchip Technology Inc. * 307,125 10,000 Molex Inc. 306,250 - --------------------------------------------------------------------------- TOTAL 1,090,375 - --------------------------------------------------------------------------- ELECTRONICS - 0.8% 15,000 Vishay Intertechnology, Inc. * 312,188 7,500 Xilinx, Inc. * 333,281 - --------------------------------------------------------------------------- TOTAL 645,469 - --------------------------------------------------------------------------- ENERGY SERVICES - 0.5% 16,000 BJ Services Co. * 441,000 - --------------------------------------------------------------------------- FINANCE - 6.9% 18,000 Eaton Vance Corp. 551,250 17,000 Edwards (AG), Inc. 571,625 24,000 Finova Group, Inc. 1,147,500 11,000 Investment Technology Group, Inc. 487,438 11,000 Jefferies Group, Inc. 270,188 16,500 Keyspan Energy Corp. 445,500 9,000 Old Kent Financial Corp. 404,437 15,000 Paine Webber Group Inc. 705,000 30,000 Pinnacle West Capital Corp. 1,256,250 - --------------------------------------------------------------------------- TOTAL 5,839,188 - --------------------------------------------------------------------------- FOOD & BEVERAGE - 1.6% 10,000 IBP, Inc. 214,375 25,000 Tyson Foods, Inc. 575,000 26,000 Universal Foods Corp. 596,375 - --------------------------------------------------------------------------- TOTAL 1,385,750 - --------------------------------------------------------------------------- HEALTH CARE SERVICES & SUPPLIES - 0.9% 9,000 Hillenbrand Industries, Inc. 377,438 12,004 Priority Healthcare Corp. * 409,654 - --------------------------------------------------------------------------- TOTAL 787,092 - --------------------------------------------------------------------------- INSURANCE - 4.2% 15,000 AFLAC, Inc. 765,000 6,000 Everest Reinsurance Holdings, Inc. 197,250 9,000 Lincoln National Corp. 915,750 8,800 NAC Re Corp. 480,150 9,000 PacificCare Health Systems, Inc., Class B * 777,375 5,000 Transatlantic Holdings, Inc. 374,687 - --------------------------------------------------------------------------- TOTAL 3,510,212 - --------------------------------------------------------------------------- MACHINERY - 2.1% 10,000 Black & Decker Corp. (The) 569,375 20,000 Briggs & Stratton Corp. 1,250,000 - --------------------------------------------------------------------------- TOTAL 1,819,375 - --------------------------------------------------------------------------- MANUFACTURED HOUSING - 0.5% 11,000 Centex Corp. 407,687 - --------------------------------------------------------------------------- MANUFACTURING - 0.7% 10,000 Carlisle Cos., Inc. 467,500 4,000 Dexter Corp. 155,000 - --------------------------------------------------------------------------- TOTAL 622,500 - --------------------------------------------------------------------------- MEDIA - 0.3% 10,000 A. H. Belo Corp. 220,625 - --------------------------------------------------------------------------- MEDICAL PRODUCTS & SERVICES - 4.2% 10,000 Bergen Brunswig Corp. 220,000 20,600 CONMED Corp. * 700,400 17,500 Genzyme Corp. * 709,844 11,625 RLI Corp. 432,304 20,000 Total Renal Care Holdings, Inc. * 307,500 31,200 Trigon Healthcare, Inc. * 1,189,500 - --------------------------------------------------------------------------- TOTAL 3,559,548 - --------------------------------------------------------------------------- NATURAL GAS - 1.3% 29,100 Coastal Corp. 1,122,169 - --------------------------------------------------------------------------- OIL & GAS - 3.0% 10,000 Amerada Hess Corp. 599,375 8,000 ENSCO International Inc. 142,000 10,000 Nabors Industries, Inc. * 200,000 25,300 RPC, Inc. 227,700 6,000 Tidewater Inc. 153,375 30,000 Tosco Corp. 766,875 20,000 Transocean Offshore, Inc. 492,500 - --------------------------------------------------------------------------- TOTAL 2,581,825 - --------------------------------------------------------------------------- PLASTICS - 1.0% 34,000 Spartech Corp. 828,750 - --------------------------------------------------------------------------- PUBLISHING - 0.6% 9,000 Knight-Ridder, Inc. 474,188 - --------------------------------------------------------------------------- RESTAURANTS - 1.9% 36,000 Brinker International, Inc. * 1,010,250 22,050 Sonic Corp. * 607,064 - --------------------------------------------------------------------------- TOTAL 1,617,314 - --------------------------------------------------------------------------- RETAILING & APPAREL - 5.9% 2,500 Abercrombie & Fitch Co. * 210,312 36,000 Best Buy Co., Inc. * 1,638,000 10,000 Lowe's Cos., Inc. 519,375 35,000 Micro Warehouse, Inc. * 542,500 18,000 Office Depot, Inc. * 375,750 10,000 Saks Inc. * 276,250 19,100 Shopko Stores, Inc. 678,050 27,000 Staples, Inc. * 776,250 - --------------------------------------------------------------------------- TOTAL 5,016,487 - --------------------------------------------------------------------------- STEEL PRODUCTS - 0.1% 4,000 AK Steel Holding Corp. 96,000 - --------------------------------------------------------------------------- TECHNOLOGY SERVICES - 0.9% 30,000 Comdisco, Inc. 731,250 - --------------------------------------------------------------------------- TELECOMMUNICATIONS & EQUIPMENT - 5.5% 13,000 ADC Telecommunications, Inc. * 635,375 27,000 CenturyTel, Inc. 1,034,437 15,000 Cincinnati Bell, Inc. 362,812 25,000 Comsat Corp. 815,625 17,000 Dycom Industries, Inc. * 820,250 10,000 QUALCOMM Inc. * 972,500 - --------------------------------------------------------------------------- TOTAL 4,640,999 - --------------------------------------------------------------------------- TEXTILES - 0.1% 5,000 Shaw Industries, Inc. * 84,375 - --------------------------------------------------------------------------- TOBACCO - 0.1% 4,000 Universal Corp. 104,500 - --------------------------------------------------------------------------- TRANSPORTATION - 0.8% 14,000 Harley-Davidson, Inc. 714,875 - --------------------------------------------------------------------------- UNIT INVESTMENT TRUST - 18.7% 211,000 Standard & Poor's MidCap 400 Depositary Receipts 15,798,625 - --------------------------------------------------------------------------- UTILITIES - 4.2% 28,000 CMP Group, Inc. 567,000 44,200 Energy East Corp. 1,226,550 14,000 Montana Power Co. (The) 1,034,250 30,000 Northeast Utilities * 528,750 7,000 Potomac Electric Power Co. 216,125 - --------------------------------------------------------------------------- TOTAL 3,572,675 - --------------------------------------------------------------------------- TOTAL COMMON STOCKS (IDENTIFIED COST $69,015,010) 81,323,266 - --------------------------------------------------------------------------- MUTUAL FUND - 0.9% 72,170 Dean Small Cap Value Fund 769,327 - --------------------------------------------------------------------------- TOTAL MUTUAL FUND (IDENTIFIED COST $801,031) 769,327 - --------------------------------------------------------------------------- SHORT-TERM INVESTMENT - 3.6% - --------------------------------------------------------------------------- REPURCHASE AGREEMENT - 3.6% $3,017,000 Donaldson, Lufkin and Jenrette Securities Corp., 4.82%, dated 5/28/1999, due 6/1/1999, repurchase price $3,018,616 (Collateralized by U.S. Government Securities) 3,017,000 - --------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENT (IDENTIFIED COST $3,017,000) 3,017,000 - --------------------------------------------------------------------------- TOTAL INVESTMENTS - 100.5% (IDENTIFIED COST $72,833,041) 85,109,593 - --------------------------------------------------------------------------- LIABILITIES, LESS OTHER ASSETS - (0.5%) (412,437) - --------------------------------------------------------------------------- TOTAL NET ASSETS - 100.0% $84,697,156 - --------------------------------------------------------------------------- * Non-income producing (See Notes to Financial Statements.) ------------------------------- FIRSTAR STELLAR INTERNATIONAL EQUITY FUND May 31, 1999 (unaudited) - --------------------------------------------------------------------------- SHARES OR PRINCIPAL AMOUNT VALUE - --------------------------------------------------------------------------- INTERNATIONAL EQUITIES - 12.0% - --------------------------------------------------------------------------- CANADA - 0.7% 5,100 Nortel Networks Corp. $382,500 - --------------------------------------------------------------------------- FINLAND - 0.5% 4,200 OY Nokia AB, Class A, ADR 298,200 - --------------------------------------------------------------------------- FRANCE - 1.0% 4,500 AXA-UAP, ADR 263,250 6,000 Danone, ADR 329,625 - --------------------------------------------------------------------------- TOTAL 592,875 - --------------------------------------------------------------------------- GERMANY - 2.2% 3,300 DaimlerChrysler AG 288,543 2,400 Mannesmann AG, ADR 328,740 5,400 Veba AG, ADR 309,150 24,000 Volkswagen AG, ADR 298,123 - --------------------------------------------------------------------------- TOTAL 1,224,556 - --------------------------------------------------------------------------- IRELAND - 0.4% 3,900 Elan Corp. Plc, ADR * 210,600 - --------------------------------------------------------------------------- ITALY - 0.5% 3,000 Telecom Italia S.P.A., ADR 308,812 - --------------------------------------------------------------------------- NETHERLANDS - 2.7% 3,900 Equant NV, ADR * 323,456 6,000 Heineken NV, ADR 334,386 5,400 ING Groep NV, ADR 289,575 3,900 Koninklijke Philips Electronics NV, ADR 335,400 3,750 Unilever NV, ADR 244,922 - --------------------------------------------------------------------------- TOTAL 1,527,739 - --------------------------------------------------------------------------- SWEDEN - 0.6% 13,200 Telefonaktiebolaget LM Ericsson, Class B, ADR 355,575 - --------------------------------------------------------------------------- UNITED KINGDOM - 3.4% 2,700 Barclays Bank PLC, London, ADR 329,400 8,400 Cable & Wireless Communications PLC, ADR 321,300 4,000 COLT Telecom Group plc, ADR * 344,000 4,800 Glaxo Wellcome PLC, ADR 270,000 7,800 Telewest Communications plc, ADR * 337,350 1,800 Vodafone Group PLC, ADR 344,475 - --------------------------------------------------------------------------- TOTAL 1,946,525 - --------------------------------------------------------------------------- TOTAL INTERNATIONAL EQUITIES (IDENTIFIED COST $6,936,659) 6,847,382 - --------------------------------------------------------------------------- CLOSED-END INVESTMENT COMPANIES - 22.0% 100,000 France Growth Fund, Inc. (The) 1,281,250 100,000 Irish Investment Fund, Inc. (The) 1,637,500 111,100 Italy Fund Inc. (The) 1,597,062 150,000 Japan O.T.C. Equity Fund, Inc. 1,143,750 50,000 Korea Fund, Inc. (The) * 603,125 70,000 Mexico Fund, Inc. (The) 1,128,750 50,000 Swiss Helvetia Fund, Inc. (The) 690,625 75,000 Templeton Emerging Markets Fund, Inc. 1,007,813 100,000 United Kingdom Fund Inc. (The) 1,575,000 15,000 WEBS France Index Fund, Inc. 320,625 75,000 WEBS Hong Kong Index Fund, Inc. 848,438 85,000 WEBS Singapore Index Fund, Inc. 632,187 - --------------------------------------------------------------------------- TOTAL CLOSED-END INVESTMENT COMPANIES (IDENTIFIED COST $11,776,199) 12,466,125 - --------------------------------------------------------------------------- MUTUAL FUNDS - 63.6% 262,878 BT Institutional International Equity Fund 3,456,846 261,908 Federated International Equity Fund, Class A 5,125,545 37,315 Flex Partners International Equity Fund 530,612 188,042 Founders Worldwide Growth Fund 4,308,044 157,630 Janus Worldwide Fund 7,901,995 51,803 Lexington Global Fund 504,560 236,188 Morgan Stanley Global Equity Allocation Fund 4,919,792 163,250 Scudder Global Fund 4,851,802 241,916 USAA World Growth Fund 4,381,103 - --------------------------------------------------------------------------- TOTAL MUTUAL FUNDS (IDENTIFIED COST $33,465,462) 35,980,299 - --------------------------------------------------------------------------- SHORT-TERM INVESTMENT - 2.4% - --------------------------------------------------------------------------- REPURCHASE AGREEMENT - 2.4% $1,373,000 Donaldson, Lufkin and Jenrette Securities Corp., 4.82%, dated 5/28/1999, due 6/1/1999, repurchase price $1,373,735 (Collateralized by U.S. Government Securities) 1,373,000 - --------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENT (IDENTIFIED COST $1,373,000) 1,373,000 - --------------------------------------------------------------------------- TOTAL INVESTMENTS - 100.0% (IDENTIFIED COST $53,551,320) 56,666,806 - --------------------------------------------------------------------------- LIABILITIES, LESS OTHER ASSETS - 0.0% (22,214) - --------------------------------------------------------------------------- TOTAL NET ASSETS - 100.0% $56,644,592 - --------------------------------------------------------------------------- * Non-income producing ADR -- American Depository Receipt PLC -- Public Limited Company (See Notes to Financial Statements.) STATEMENTS OF ASSETS AND LIABILITIES May 31, 1999 (unaudited) Firstar Stellar Firstar Stellar Firstar Stellar Capital Firstar Stellar Firstar Stellar Relative Value Growth Equity Appreciation International Fund Fund Fund Fund Equity Fund - ----------------------------------------------------------------------------------------------------------------------------------- ASSETS: Total investments in securities, at value $99,173,964 $555,326,440 $243,548,414 $85,109,593 $56,666,806 Cash 233 -- 23,498 65 94 Income receivable 611,299 1,053,317 297,543 42,467 54,244 Receivable for investments sold -- 1,384,506 -- 2,373,668 -- Receivable for Fund shares sold 26,924 480,423 201,148 10,356 5,413 Other assets 232 -- 42,291 13,187 -- - ----------------------------------------------------------------------------------------------------------------------------------- Total assets 99,812,652 558,244,686 244,112,894 87,549,336 56,726,557 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- LIABILITIES: Payable for investments purchased 610,480 36,114,100 -- 2,676,512 -- Payable for Fund shares redeemed 7,326 90,344 38,780 66,770 174 Options written, at value -- -- 21,250 -- -- Payable to bank -- 470 -- -- -- Payable to affiliates 147,190 537,389 258,851 105,985 70,529 Accrued expenses 21,576 18,239 -- 2,913 11,262 - ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities 786,572 36,760,542 318,881 2,852,180 81,965 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- NET ASSETS $99,026,080 $521,484,144 $243,794,013 $84,697,156 $56,644,592 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- NET ASSETS CONSIST OF: Paid in capital $82,628,487 $273,967,631 $156,158,335 $76,692,742 $53,704,770 Accumulated undistributed (distributions in excess of) net investment income (loss) 468,983 843,745 206,201 (169,816) (142,858) Accumulated net realized gain (loss) on investments, options and underlying funds 1,019,317 1,793,956 367,196 (4,102,322) (32,806) Net unrealized appreciation on investments, options and underlying funds 14,909,293 244,878,812 87,062,281 12,276,552 3,115,486 - ----------------------------------------------------------------------------------------------------------------------------------- Total net assets $99,026,080 $521,484,144 $243,794,013 $84,697,156 $56,644,592 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- NET ASSETS: A Shares $43,611,379 $55,837,064 -- $84,697,156 $56,644,592 B Shares -- 11,735,484 $80,222,649 -- -- Y Shares 55,414,701 453,911,596 163,571,364 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Total net assets $99,026,080 $521,484,144 $243,794,013 $84,697,156 $56,644,592 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- SHARES OUTSTANDING: A Shares 3,508,257 1,924,501 -- 7,095,665 5,218,653 B Shares -- 404,725 3,758,316 -- -- Y Shares 4,458,105 15,636,958 7,666,844 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Total shares outstanding 7,966,362 17,966,184 11,425,160 7,095,665 5,218,653 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE: A Shares $12.43 $29.01 -- $11.94 $10.85 B Shares -- $29.00 $21.35 -- -- Y Shares $12.43 $29.03 $21.33 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- OFFERING PRICE PER SHARE: A Shares $13.02(a) $30.38(a) -- $12.50(a) $11.02(b) B Shares -- $29.00 $21.35 -- -- Y Shares $12.43 $29.03 $21.33 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- REDEMPTION PROCEEDS PER SHARE: A Shares $12.43 $29.01 -- $11.94 $10.85 B Shares -- $27.55(c) $20.28(c) -- -- Y Shares $12.43 $29.03 $21.33 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Investments, at identified cost $84,264,671 $310,447,628 $156,487,607 $72,833,041 $53,551,320 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- Investments, at tax cost $84,264,671 $310,447,628 $156,487,607 $73,031,259 $53,551,320 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- (a) Computation of Offering price: 100/95.5 of net asset value. (b) Computation of Offering price: 100/98.5 of net asset value. (c) Computation of Redemption Proceeds: 95/100 of net asset value.
(See Notes to Financial Statements.) STATEMENTS OF OPERATIONS Six Months Ended May 31, 1999 (unaudited) Firstar Stellar Firstar Stellar Firstar Stellar Capital Firstar Stellar Firstar Stellar Relative Value Growth Equity Appreciation International Fund Fund Fund Fund Equity Fund - ----------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Interest income $1,290,103 $243,603 $205,966 $47,271 $25,274 Dividend income 815,847 4,019,253 1,274,915 302,659 555,388 - ----------------------------------------------------------------------------------------------------------------------------------- Total income 2,105,950 4,262,856 1,480,881 349,930 580,662 - ----------------------------------------------------------------------------------------------------------------------------------- EXPENSES: Investment advisory fees 486,151 1,787,908 813,889 379,080 198,837 Shareholder services fees 127,902 596,977 272,003 99,754 66,394 Distribution services fees -- A Shares 56,997 66,882 -- -- -- Distribution services fees -- B Shares -- 12,125 94,108 -- -- Administration fees 56,291 262,401 119,370 43,893 29,168 Portfolio accounting fees 29,415 55,087 31,513 21,745 21,990 Transfer and dividend disbursing agent fees and expenses 23,813 63,178 39,976 10,631 5,631 Custodian fees 12,794 59,597 27,130 9,976 6,629 Auditing fees 7,302 7,473 16,740 8,537 5,664 Federal and state registration fees 6,973 8,566 17,689 4,166 3,947 Trustees' fees 2,676 2,858 3,422 2,959 2,312 Printing and postage 1,820 3,262 10,590 5,880 4,200 Legal fees 336 807 2,678 2,599 2,067 Miscellaneous 28 1,145 402 364 378 - ----------------------------------------------------------------------------------------------------------------------------------- Total expenses 812,498 2,928,266 1,449,510 589,584 347,217 - ----------------------------------------------------------------------------------------------------------------------------------- WAIVER -- - ----------------------------------------------------------------------------------------------------------------------------------- Waiver of shareholder services fees (89,539) (414,962) (188,324) (69,838) (46,106) - ----------------------------------------------------------------------------------------------------------------------------------- Total waiver (89,539) (414,962) (188,324) (69,838) (46,106) - ----------------------------------------------------------------------------------------------------------------------------------- Net expenses 722,959 2,513,304 1,261,186 519,746 301,111 - ----------------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME (LOSS) 1,382,991 1,749,552 219,695 (169,816) 279,551 - ----------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS AND UNDERLYING FUNDS: Net realized gain (loss) on investments, options and underlying funds 1,059,974 1,795,941 498,199 (1,611,086) (30,451) Net change in unrealized appreciation on investments, options and underlying funds 1,150,654 47,472,445 21,943,928 3,345,300 3,548,084 - ----------------------------------------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS, OPTIONS AND UNDERLYING FUNDS 2,210,628 49,268,386 22,442,127 1,734,214 3,517,633 - ----------------------------------------------------------------------------------------------------------------------------------- CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $3,593,619 $51,017,938 $22,661,822 $1,564,398 $3,797,184 - ----------------------------------------------------------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------------------------------------------------
(See Notes to Financial Statements.) STATEMENTS OF CHANGES IN NET ASSETS Firstar Stellar Firstar Stellar Relative Value Fund Fund --------------------------------------------------------------- Six Months Six Months Ended Year Ended Ended Year Ended May 31, 1999 November 30, May 31, 1999 November 30, (unaudited) 1998 (unaudited) 1998 - ----------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS OPERATIONS-- Net investment income (loss) $1,382,991 $3,177,602 $1,749,552 $3,780,377 Net realized gain (loss) on investments, options and underlying funds 1,059,974 8,965,626 1,795,941 1,782,713 Net change in unrealized appreciation (depreciation) on investments, options and underlying funds 1,150,654 (5,745,284) 47,472,445 57,735,300 - ----------------------------------------------------------------------------------------------------------------------------------- Change in net assets resulting from operations 3,593,619 6,397,944 51,017,938 63,298,390 - ----------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS-- Distributions from net investment income A Shares (661,232) (1,272,062) (145,301) (314,887) B Shares -- -- (30,962) (23,565) Y Shares (912,459) (1,768,243) (1,616,044) (3,346,134) Distributions from net realized gain on investments, options and underlying funds A Shares (4,024,886) (4,564,730) (202,285) (1,335,755) B Shares -- -- (32,646) -- Y Shares (4,995,329) (5,845,323) (1,548,462) (11,016,756) - ----------------------------------------------------------------------------------------------------------------------------------- Change in net assets from distributions to shareholders (10,593,906) (13,450,358) (3,575,700) (16,037,097) - ----------------------------------------------------------------------------------------------------------------------------------- SHARE TRANSACTIONS-- Proceeds from sales of shares 6,692,123 14,934,333 72,909,022 105,570,306 Net asset value of shares issued to shareholders in payment of distributions declared 9,537,439 11,882,476 2,721,111 12,183,187 Cost of shares redeemed (15,387,727) (28,719,192) (46,765,488) (69,641,417) - ----------------------------------------------------------------------------------------------------------------------------------- Change in net assets from share transactions 841,835 (1,902,383) 28,864,645 48,112,076 - ----------------------------------------------------------------------------------------------------------------------------------- Change in net assets (6,158,452) (8,954,797) 76,306,883 95,373,369 - ----------------------------------------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 105,184,532 114,139,329 445,177,261 349,803,892 - ----------------------------------------------------------------------------------------------------------------------------------- End of period $99,026,080 $105,184,532 $521,484,144 $445,177,261 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- Accumulated undistributed (distributions in excess of) net investment income (loss) included in net assets at end of period $468,983 $659,683 $843,745 $886,500 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- Firstar Stellar Firstar Stellar Firstar Stellar Capital International Growth Equity Appreciation Equity Fund Fund Fund ---------------------------- ---------------------------- ----------------------------- Six Months Six Months Six Months Ended Year Ended Ended Year Ended Ended Period Ended May 31, 1999 November 30, May 31, 1999 November 30, May 31, 1999 November 30, (unaudited) 1998 (unaudited) 1998 (unaudited) 1998(a) - ----------------------------------------------------------------------------------------------- $219,695 $482,582 $(169,816) $(353,594) $279,551 $156,377 498,199 4,357,637 (1,611,086) (2,489,161) (30,451) 835,714 21,943,928 27,811,716 3,345,300 6,381,385 3,548,084 (432,598) - ----------------------------------------------------------------------------------------------- 22,661,822 32,651,935 1,564,398 3,538,630 3,797,184 559,493 - ----------------------------------------------------------------------------------------------- -- -- -- (133,033) (485,816) (92,970) (26,829) (80,332) -- -- -- -- (129,000) (438,513) -- -- -- -- -- -- -- (17,824,043) (838,069) -- (1,524,893) (2,579,168) -- -- -- -- (2,878,632) (6,040,139) -- -- -- -- - ----------------------------------------------------------------------------------------------- (4,559,354) (9,138,152) -- (17,957,076) (1,323,885) (92,970) - ----------------------------------------------------------------------------------------------- 52,286,793 47,696,699 14,494,950 13,112,471 7,246,135 51,706,328 3,254,507 6,393,320 -- 11,194,078 963,609 50,831 (17,802,562) (43,763,249) (11,343,041) (13,025,508) (2,497,182) (3,764,951) - ----------------------------------------------------------------------------------------------- 37,738,738 10,326,770 3,151,909 11,281,041 5,712,562 47,992,208 - ----------------------------------------------------------------------------------------------- 55,841,206 33,840,553 4,716,307 (3,137,405) 8,185,861 48,458,731 - ----------------------------------------------------------------------------------------------- 187,952,807 154,112,254 79,980,849 83,118,254 48,458,731 -- - ----------------------------------------------------------------------------------------------- $243,794,013 $187,952,807 $84,697,156 $79,980,849 $56,644,592 $48,458,731 - ----------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------- $206,201 $142,335 $(169,816) -- $(142,858) $63,407 - ----------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------- (a) 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) NET REALIZED AND DISTRIBUTIONS NET UNREALIZED DISTRIBUTIONS FROM NET NET ASSET INVESTMENT GAIN (LOSS) ON DISTRIBUTIONS IN EXCESS OF REALIZED GAIN VALUE, INCOME (NET INVESTMENTS, TOTAL FROM FROM NET NET ON INVESTMENTS, PERIOD ENDED BEGINNING OPERATING OPTIONS AND INVESTMENT INVESTMENT INVESTMENT OPTIONS AND NOVEMBER 30, OF PERIOD LOSS) UNDERLYING FUNDS OPERATIONS INCOME INCOME (H) UNDERLYING FUNDS - ----------------------------------------------------------------------------------------------------------------------------------- FIRSTAR STELLAR FUND Y SHARES 1994(a) $11.34 0.21 (0.48) (0.27) (0.17) -- -- 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(m) $13.36 0.18 0.25 0.43 (0.20) -- (1.16) A SHARES 1994 $11.34 0.29 (0.41) (0.12) (0.24) -- (0.08) 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(m) $13.35 0.16 0.26 0.42 (0.18) -- (1.16) FIRSTAR STELLAR RELATIVE VALUE FUND Y SHARES 1997(b) $22.67 0.08 0.81 0.89 (0.07) -- -- 1998 $23.49 0.18 3.65 3.83 (0.23) -- (0.82) 1999(m) $26.27 0.11 2.87 2.98 (0.11) -- (0.11) A SHARES 1994 $11.80 0.23 (0.40) (0.17) (0.23) -- (0.04) 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(m) $26.26 0.07 2.86 2.93 (0.07) -- (0.11) B SHARES 1998(c) $26.01 0.14 0.24 0.38 (0.11) -- -- 1999(m) $26.28 0.07 2.85 2.92 (0.09) -- (0.11) FIRSTAR STELLAR GROWTH EQUITY FUND Y SHARES 1997(d) $16.46 0.03 0.73 0.76 (0.04) -- -- 1998 $17.18 0.06 3.30 3.36 (0.07) -- (0.96) 1999(m) $19.51 0.05 2.25 2.30 (0.03) -- (0.45) B SHARES 1995(e) $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(m) $19.52 0.01 2.28 2.29 (0.01) -- (0.45) FIRSTAR STELLAR CAPITAL APPRECIATION FUND A SHARES 1994(f) $10.00 -- 0.15 0.15 -- -- -- 1995 $10.15 0.03 1.72 1.75 (0.04) (0.00)(k) (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(m) $11.75 (0.02) 0.21 0.19 -- -- -- FIRSTAR STELLAR INTERNATIONAL EQUITY FUND A SHARES 1998(g) $10.00 0.05 0.34 0.39 (0.04) -- -- 1999(m) $10.35 0.06 0.72 0.78 (0.10) -- (0.18) - ----------------------------------------------------------------------------------------------------------------------------------- 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 (I) EXPENSES INCOME REIMBURSEMENT (J)(000 OMITTED) RATE - ----------------------------------------------------------------------------------------------------------------------------------- (0.17) $10.90 (1.81)% 1.43%(l) 3.57%(l) 0.20%(l) $60,822 79% (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% (1.36) $12.43 3.54% 1.30%(l) 2.81%(l) 0.17%(l) $55,415 22% (0.32) $10.90 (1.22)% 1.55% 2.32% 0.32% $50,648 79% (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% (1.34) $12.43 3.45% 1.55%(l) 2.56%(l) 0.17%(l) $43,611 22% (0.07) $23.49 3.93% 1.00%(l) 1.35%(l) 0.20%(l)$312,056 18% (1.05) $26.27 16.95% 1.04% 0.95% 0.20% $386,405 26% (0.22) $29.03 11.39% 1.02%(l) 0.77%(l) 0.17%(l)$453,912 4% (0.27) $11.36 (1.54)% 1.15% 2.02% 0.20% $74,094 30% (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% (0.18) $29.01 11.22% 1.27%(l) 0.52%(l) 0.17%(l) $55,837 4% (0.11) $26.28 1.50% 1.04%(l) 0.95%(l) 0.20%(l) $7,847 26% (0.20) $29.00 11.17% 1.27%(l) 0.52%(l) 0.17%(l) $11,735 4% (0.04) $17.18 4.59% 1.06%(l) 0.68%(l) 0.20%(l)$109,087 60% (1.03) $19.51 20.91% 1.09% 0.37% 0.20% $121,475 48% (0.48) $21.33 11.98% 1.07%(l) 0.29%(l) 0.17%(l)$163,571 13% (0.21) $12.70 29.44% 1.17%(l) 2.00%(l) 0.23%(l) $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% (0.46) $21.35 11.89% 1.20%(l) 0.04%(l) 0.17%(l) $80,223 13% -- $10.15 1.50% 1.58%(l) 0.08%(l) 0.30%(l) $30,013 36% (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% -- $11.94 1.62% 1.30%(l) (0.43)%(l) 0.17%(l) $84,697 55% (0.04) $10.35 3.95% 1.31%(l) 0.37%(l) 0.20%(l) $48,459 3% (0.28) $10.85 7.70% 1.13%(l) 1.05%(l) 0.17%(l) $56,645 24% - ----------------------------------------------------------------------------------------------------------------------------------- (a) Reflects operations for the period from April 11, 1994 (date of initial public investment) to November 30, 1994. For the period from April 5, 1994 (start of business) to April 10, 1994, all income was distributed to the Administrator. (b) Reflects operations for the period from August 18, 1997 (date of initial public investment) to November 30, 1997. (c) Reflects operations for the period from March 31, 1998 (date of initial public investment) to November 30, 1998. (d) Reflects operations for the period from August 18, 1997 (date of initial public investment) to November 30, 1997. (e) Reflects operations for the period from December 12, 1994 (date of initial public investment) to November 30, 1995. (f) Reflects operations for the period from June 13, 1994 (date of initial public investment) to November 30, 1994. (g) Reflects operations for the period from December 3, 1997 (date of initial public investment) to November 30, 1998. (h) Distributions are determined in accordance with federal income tax regulations which may differ from generally accepted accounting principles. These distributions did not represent a return of capital for federal income tax purposes. (i) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. (j) This voluntary expense decrease is reflected in both the expense and net investment income ratios shown above. (k) Less than one cent per share. (l) Computed on an annualized basis. (m) For the six months ended May 31, 1999 (unaudited).
(See Notes to Financial Statements.) NOTES TO FINANCIAL STATEMENTS MAY 31, 1999 (UNAUDITED) (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 one non-diversified portfolio. 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 Fund Maximize total return, a combination ("Stellar Fund") of dividend income and capital appreciation. Firstar Stellar Relative Value Maximize total return, a combination Fund ("Relative Value Fund") of income and capital appreciation. Firstar Stellar Growth Equity Maximize capital appreciation. Fund ("Growth Equity Fund") 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. The Stellar Fund offers two classes of shares (A Shares and Y Shares); Relative Value Fund offers three classes of shares (A Shares, B Shares and Y Shares); Growth Equity Fund offers two classes of shares (B Shares and Y Shares); Capital Appreciation Fund offers one class of shares (A Shares); and the International Equity Fund offers one class of shares (A 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 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 may be valued at amortized cost, which approximates fair market value. Investments in other open-end and closed-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 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 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 (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. At November 30, 1998, the Capital Appreciation Fund 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 Fund of any liability for federal tax. TOTAL TAX-LOSS FUND CARRYFORWARD - ------------------------------------------------------------------------------ Capital Appreciation Fund $2,491,236 - ------------------------------------------------------------------------------ Pursuant to the Code, the capital loss carryforward for the Capital Appreciation Fund of $2,491,236 will expire in the year 2006. 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 Stellar Fund, Growth Equity 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 six months ended May 31, 1999, the Growth Equity Fund had net realized loss on options contracts, written and purchased, of $(204,795). At May 31, 1999, the 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 written options activity: GROWTH EQUITY FUND ----------------------------- NUMBER OF CONTRACTS PROCEEDS* ----------------------------- Outstanding at November 30, 1998 200 $41,700 Contracts opened 2,150 872,475 Contracts expired -- -- Contracts exercised (302) (51,321) Contracts closed (2,048) (840,130) ----------------------------- Outstanding at May 31, 1999 -- $22,724 ----------------------------- * Represents premium received less commissions paid. G. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets, liabilities, revenues and expenses reported in the financial statements. Actual results could differ from those estimated. 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: STELLAR FUND ------------------------------------------------ SIX MONTHS ENDED YEAR ENDED MAY 31, 1999 NOVEMBER 30, 1998 ----------------------- ----------------------- A SHARES SHARES DOLLARS SHARES DOLLARS - ----------------------------------------------------------------- ---------- ---------- ---------- ---------- Shares sold 125,846 $1,576,549 330,173 $4,415,487 Shares issued to shareholders in payment of distributions declared 378,315 4,604,482 445,681 5,756,750 Shares redeemed (486,617) (6,066,841) (817,090) (10,869,740) ------------------------------------------------ Net change resulting from A Share transactions 17,544 $114,190 (41,236) $(697,503) ------------------------------------------------
STELLAR FUND ------------------------------------------------ SIX MONTHS ENDED YEAR ENDED MAY 31, 1999 NOVEMBER 30, 1998 ----------------------- ----------------------- Y SHARES SHARES DOLLARS SHARES DOLLARS - ----------------------------------------------------------------- ---------- ---------- ---------- ---------- Shares sold 412,580 $5,115,574 772,860 $10,518,846 Shares issued to shareholders in payment of distributions declared 405,626 4,932,957 474,049 6,125,726 Shares redeemed (745,099) (9,320,886)(1,328,445) (17,849,452) ------------------------------------------------ Net change resulting from Y Share transactions 73,107 $727,645 (81,536) $(1,204,880) ------------------------------------------------ Net change resulting from Fund share transactions 90,651 $841,835 (122,772) $(1,902,383) ------------------------------------------------ ------------------------------------------------
RELATIVE VALUE FUND ------------------------------------------------ SIX MONTHS ENDED YEAR ENDED MAY 31, 1999 NOVEMBER 30, 1998 ----------------------- ----------------------- A SHARES SHARES DOLLARS SHARES DOLLARS - ----------------------------------------------------------------- ---------- ---------- ---------- ---------- Shares sold 191,767 $5,290,621 526,877 $13,142,463 Shares issued to shareholders in payment of distributions declared 12,679 341,225 70,261 1,618,422 Shares redeemed (219,129) (6,049,054) (265,353) (6,497,280) ------------------------------------------------ Net change resulting from A Share transactions (14,683) $(417,208) 331,785 $8,263,605 ------------------------------------------------
RELATIVE VALUE FUND ------------------------------------------------ SIX MONTHS ENDED PERIOD ENDED MAY 31, 1999 NOVEMBER 30, 1998(A) ----------------------- ------------------------- B SHARES SHARES DOLLARS SHARES DOLLARS - ----------------------------------------------------------------- ---------- ---------- ---------- ---------- Shares sold 137,225 $3,794,434 310,540 $7,699,898 Shares issued to shareholders in payment of distributions declared 2,353 63,189 990 23,405 Shares redeemed (33,452) (929,216) (12,931) (302,580) ------------------------------------------------ Net change resulting from B Share transactions 106,126 $2,928,407 298,599 $7,420,723 ------------------------------------------------ (a) For the period from March 31, 1998 (date of initial public investment)to November 30, 1998.
RELATIVE VALUE FUND -------------------------------------------------- SIX MONTHS ENDED YEAR ENDED MAY 31, 1999 NOVEMBER 30, 1998 ------------------------ ----------------------- Y SHARES SHARES DOLLARS SHARES DOLLARS - ----------------------------------------------------------------- ----------- ----------- --------- ----------- Shares sold 2,275,974 $63,823,967 3,478,155 $84,727,945 Shares issued to shareholders in payment of distributions declared 85,977 2,316,697 456,629 10,541,360 Shares redeemed (1,433,705) (39,787,218)(2,508,119) (62,841,557) -------------------------------------------------- Net change resulting from Y Share transactions 928,246 $26,353,446 1,426,665 $32,427,748 -------------------------------------------------- Net change resulting from Fund share transactions 1,019,689 $28,864,645 2,057,049 $48,112,076 -------------------------------------------------- --------------------------------------------------
GROWTH EQUITY FUND -------------------------------------------------- SIX MONTHS ENDED YEAR ENDED MAY 31, 1999 NOVEMBER 30, 1998 ------------------------ ----------------------- B SHARES SHARES DOLLARS SHARES DOLLARS - ----------------------------------------------------------------- ----------- ----------- --------- ----------- Shares sold 535,389 $11,121,288 1,070,690 $18,962,995 Shares issued to shareholders in payment of distributions declared 78,241 1,546,858 166,534 2,653,076 Shares redeemed (260,797) (5,418,146) (454,025) (8,038,756) -------------------------------------------------- Net change resulting from B Share transactions 352,833 $7,250,000 783,199 $13,577,315 --------------------------------------------------
GROWTH EQUITY FUND -------------------------------------------------- SIX MONTHS ENDED YEAR ENDED MAY 31, 1999 NOVEMBER 30, 1998 ------------------------ ----------------------- Y SHARES SHARES DOLLARS SHARES DOLLARS - ----------------------------------------------------------------- --------- ----------- --------- ----------- Shares sold 1,946,176 $41,165,505 1,616,539 $28,733,704 Shares issued to shareholders in payment of distributions declared 86,336 1,707,649 234,170 3,740,244 Shares redeemed (591,203) (12,384,416)(1,975,403) (35,724,493) -------------------------------------------------- Net change resulting from Y Share transactions 1,441,309 $30,488,738 (124,694) $(3,250,545) -------------------------------------------------- Net change resulting from Fund share transactions 1,794,142 $37,738,738 658,505 $10,326,770 -------------------------------------------------- --------------------------------------------------
CAPITAL APPRECIATION FUND ------------------------------------- SIX MONTHS ENDED YEAR ENDED A SHARES MAY 31, 1999 NOVEMBER 30, 1998 - ----------------------------------------------------------------- ---------------- ----------------- Shares sold 1,256,668 1,081,889 Shares issued to shareholders in payment of distributions declared 0 1,003,938 Shares redeemed (966,887) (1,075,802) ------------------------------------- Net change resulting from A Share transactions 289,781 1,010,025 -------------------------------------
INTERNATIONAL EQUITY FUND --------------------------------------------- SIX MONTHS ENDED PERIOD ENDED A SHARES MAY 31, 1999 NOVEMBER 30, 1998(B) - ----------------------------------------------------------------- ---------------- -------------------------- Shares sold 674,388 5,056,920 Shares issued to shareholders in payment of distributions declared 93,554 5,114 Shares redeemed (231,839) (379,484) --------------------------------------------- Net change resulting from A Share transactions 536,103 4,682,550 --------------------------------------------- (b) 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 serve as officers or Trustees of the Trust. Firstar Bank, N.A. and Firstar Mutual Fund Services, LLC 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 - --------------------------------------------------------------- Stellar Fund 0.95% Relative Value Fund 0.75% Growth Equity Fund 0.75% Capital Appreciation Fund 0.95% International Equity Fund 0.75% - --------------------------------------------------------------- C. ADMINISTRATIVE FEES Firstar Mutual Fund Services, LLC ("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 Stellar Fund, Relative Value Fund and Growth Equity 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 six months ended May 31, 1999, were as follows: PURCHASES SALES ---------------------------------------------------------- Stellar Fund $18,558,795 $22,289,328 Relative Value Fund 47,977,562 20,749,861 Growth Equity Fund 59,599,917 26,888,765 Capital Appreciation Fund 44,908,927 43,614,649 International Equity Fund 16,189,929 12,667,762 ---------------------------------------------------------- NET UNREALIZED GROSS GROSS COST OF APPRECIATION UNREALIZED UNREALIZED INVESTMENTS (DEPRECIATION) APPRECIATION DEPRECIATION FOR FEDERAL FOR FEDERAL FOR FEDERAL FOR FEDERAL FIRSTAR STELLAR FUNDS TAX PURPOSES TAX PURPOSES TAX PURPOSES TAX PURPOSES - ----------------------------------------------------------------------------------------------------- Stellar Fund $84,264,671 $14,909,293 $16,402,889 $1,493,596 Relative Value Fund 310,447,628 244,878,812 246,832,252 1,953,440 Growth Equity Fund 156,487,607 87,062,281 89,767,101 2,704,820 Capital Appreciation Fund 73,031,259 12,078,334 15,739,945 3,661,611 International Equity Fund 53,551,320 3,115,486 4,353,701 1,238,215 - -----------------------------------------------------------------------------------------------------
(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 May 31, 1999, the diversification of industries was as follows: PERCENT OF INDUSTRY NET ASSETS - ----------------------------------------------- Basic Industry 6.0% Capital Goods 1.4 Consumer Cyclicals 5.3 Consumer Staples 16.6 Energy 12.7 Finance 20.6 Health Care 8.6 Miscellaneous 1.8 Technology 17.2 Utilities 9.8 - ----------------------------------------------- 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 Elaine E. Richards SECRETARY Lawrence M. Turner 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 INVESTMENT SPECIALISTS 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 # SFSFSEM-99 -----END PRIVACY-ENHANCED MESSAGE-----